Stratasys Announces Second Quarter 2024 Financial Results
Intellectia.AI Updated: 2024-08-29
Stratasys Announces Second Quarter 2024 Financial Results
Stratasys Ltd. (NASDAQ: SSYS), a leader in polymer 3D printing solutions, has announced its financial results for the second quarter of 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | YoY Change |
|---|---|---|---|
| Revenue | $138.0 million | $159.8 million | -13.7% |
| GAAP Net Loss | $25.7 million | $38.6 million | Improved |
| GAAP EPS | ($0.36) | ($0.56) | Improved |
| Non-GAAP Net Loss | $3.0 million | $2.5 million | Deteriorated |
| Non-GAAP EPS | ($0.04) | $0.04 | Deteriorated |
| Adjusted EBITDA | $2.3 million | $10.6 million | Deteriorated |
| Cash Used in Operations | $2.4 million | $23.2 million | Improved |
Interpretation: Stratasys experienced a notable decline in revenue compared to the previous year, primarily due to the challenging macroeconomic environment impacting customer expenditure on capital equipment. However, the company's GAAP net loss and cash used in operations showed improvements, indicating better cost control and expense management.
Segment Performance
| Segment | Q2 2024 Revenue | YoY Change |
|---|---|---|
| Polymer 3D Printing Solutions | $138.0 million | -13.7% |
Interpretation: The decline in the Polymer 3D Printing Solutions segment revenue highlights ongoing market challenges. These setbacks have affected Stratasys' overall performance despite the continued strong utilization of their printer consumables, which saw year-over-year growth of 6.3%.
Key Developments and Operational Highlights
- Completed strategic review process
- Announced focused restructuring actions expected to save ~$40 million annually and achieve 8% EBITDA margin at current revenue levels
- Improvement in GAAP gross margin by 230 basis points and in non-GAAP gross margin by 50 basis points compared to Q2 2023
- Introduced new products: H350 version 1.5 printer, J5 Digital Anatomy printer
Comments from Company Officers
Dr. Yoav Zeif, CEO of Stratasys, emphasized the company’s commitment to maintaining industry leadership by continually realigning its business model with evolving market conditions. The restructuring aims to focus on high-growth potential products and drive innovation while ensuring profitability and cash flow. Dr. Zeif highlighted the strong consumables sales and new product additions as evidence of the company’s robust market position.
Dividends or Share Repurchase Program
No announcement regarding dividends or share repurchase programs was made in this earnings release.
Forward Guidance
Stratasys updated its outlook for the full year 2024: - Revenue : Expected between $570 million to $580 million - Non-GAAP gross margin : Between 48.7% to 49.0% - Operating expenses : Expected to range between $276 million to $278 million - GAAP Net Loss : Expected between $106 million to $91 million or ($1.50) to ($1.29) per diluted share - Non-GAAP Net Income : Expected between $1 million to $4 million or $0.01 to $0.05 per diluted share
Stock Price Movement
Following the earnings release, Stratasys' stock experienced a decline, dropping by approximately 4.4%.
Conclusion
Stratasys navigated a challenging quarter with notable revenue declines but demonstrated robust cost management and strategic restructuring plans aimed at ensuring sustainable profitability. The leadership remains optimistic about future growth fueled by innovation and operational efficiency.
For further details and access to the webcast, visit the Stratasys investor website.
Note: For exact numerical values and additional information, refer directly to the official press release or attached documentation.
