MINNEAPOLIS and REHOVOT, Israel
,
November 16, 2023
(press release)
–
STRATASYS RELEASES THIRD QUARTER 2023 FINANCIAL RESULTS Stratasys Ltd. (Nasdaq: SSYS) (“Stratasys” or the “Company”), a leader in polymer 3D printing solutions, today announced financial results for the third quarter 2023. Third Quarter 2023 Financial Results Compared to Third Quarter 2022: Dr. Yoav Zeif, Stratasys’ Chief Executive Officer stated, “During the third quarter, Stratasys delivered solid operating and financial results, highlighted by record recurring revenues from consumables, reflecting solid printer utilization. Our relentless focus on execution allowed us to deliver comparable results to the year-ago quarter for revenues, non-GAAP margins and adjusted EBITDA, as well as our ninth consecutive quarter of positive adjusted earnings per share.” Dr. Zeif continued, “We want to acknowledge the tremendous support we have received from partners, customers, investors and our industry since the tragic events in Israel. We especially want to thank our employees who have performed in an exemplary fashion during these challenging times. Our operations have been fully functional, allowing us to continue delivering industry-leading results. We have streamlined and focused our business, while simultaneously rolling out new and exciting innovations that will expand our leadership position across systems, materials, software and customer service. Our recently introduced F3300 is the latest step in that continued evolution to unlock manufacturing benefits for our customers. Our maturity as a company, financial discipline and resilient business model position us well to deliver exceptional value for many years to come.” 2023 Financial Outlook: Based on the divestitures in Stratasys Direct, as well as macroeconomic uncertainty in its end markets, the Company is updating its revenue guidance and its outlook for the remainder of 2023 as follows: 2023 non-GAAP earnings guidance excludes $112 million to $121 million of expenses attributable to projected amortization of intangible assets, share-based compensation expense, and reorganization and other expenses (including the one-time extraordinary costs referenced above). 2023 non-GAAP guidance includes tax adjustments of $2 million to $3 million on the above non-GAAP items. Appropriate reconciliations between GAAP and non-GAAP financial measures are provided in a table at the end of our press release and slide presentation, with itemized detail concerning the non-GAAP financial measures. Stratasys Ltd. Third Quarter 2023 Webcast and Conference Call Details The Company plans to webcast its conference call to discuss its third quarter 2023 financial results on Thursday, November 16, 2023, at 8:30 a.m. (ET). The investor conference call will be available via live webcast on the Stratasys Web site at investors.stratasys.com, or directly at the following web address: https://event.choruscall.com/mediaframe/webcast.html?webcastid=bSk6aoYV To participate by telephone, the U.S. toll-free number is 877-407-0619 and the international dial-in is +1-412-902-1012. Investors are advised to dial into the call at least ten minutes prior to the call to register. The webcast will be available for six months at investors.stratasys.com, or by accessing the above-provided web address. Stratasys is leading the global shift to additive manufacturing with innovative 3D printing solutions for industries such as aerospace, automotive, consumer products, healthcare, fashion and education. Through smart and connected 3D printers, polymer materials, a software ecosystem, and parts on demand, Stratasys solutions deliver competitive advantages at every stage in the product value chain. The world’s leading organizations turn to Stratasys to transform product design, bring agility to manufacturing and supply chains, and improve patient care. To learn more about Stratasys, visit www.stratasys.com, the Stratasys blog, X.com (formerly Twitter), LinkedIn, or Facebook. Stratasys reserves the right to utilize any of the foregoing social media platforms, including the Company’s websites, to share material, non-public information pursuant to the SEC’s Regulation FD. To the extent necessary and mandated by applicable law, Stratasys will also include such information in its public disclosure filings. Stratasys is a registered trademark and the Stratasys signet is a trademark of Stratasys Ltd. and/or its subsidiaries or affiliates. All other trademarks are the property of their respective owners. Cautionary Statement Regarding Forward-Looking Statements The statements in this press release regarding Stratasys' strategy, and the statements regarding its projected future financial performance, including the financial guidance concerning its expected results for 2023 and beyond, are forward-looking statements reflecting management's current expectations and beliefs. These forward-looking statements are based on current information that is, by its nature, subject to rapid and even abrupt change. Due to risks and uncertainties associated with Stratasys' business, actual results could differ materially from those projected or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to: the degree of our success at introducing new or improved products and solutions that gain market share; the degree of growth of the 3D printing market generally; the impact of potential shifts in the prices or margins of the products that we sell or services that we provide, including due to a shift towards lower margin products or services; the impact of competition and new technologies; the outcome of our board’s comprehensive process to explore strategic alternatives for our company; the degree to which our company’s operations remain resistant to potential adverse effects of Israel’s war against the terrorist organization Hamas; potential further charges against earnings that we could be required to take due to impairment of additional goodwill or other intangible assets; the extent of our success at successfully consummating and integrating into our existing business acquisitions or investments in new businesses, technologies, products or services; the global macro-economic environment, including headwinds caused by inflation, high interest rates, unfavorable currency exchange rates and potential recessionary conditions; potential changes in our management and board of directors; global market, political and economic conditions, and in the countries in which we operate in particular; costs and potential liability relating to litigation and regulatory proceedings; risks related to infringement of our intellectual property rights by others or infringement of others' intellectual property rights by us; the extent of our success at maintaining our liquidity and financing our operations and capital needs; the impact of tax regulations on our results of operations and financial condition; and those additional factors referred to in Item 3.D “Key Information - Risk Factors”, Item 4, “Information on the Company”, Item 5, “Operating and Financial Review and Prospects,” and all other parts of our Annual Report on Form 20-F for the year ended December 31, 2022, which we filed with the U.S. Securities and Exchange Commission, or SEC, on March 3, 2023 (the “2022 Annual Report”). Readers are urged to carefully review and consider the various disclosures made throughout our 2022 Annual Report and the Report of Foreign Private Issuer on Form 6-K that attaches Stratasys’ unaudited, condensed consolidated financial statements and its review of its results of operations and financial condition for the third quarter and first nine months of 2023, which will be furnished to the SEC on or about the date hereof, and our other reports filed with or furnished to the SEC, which are designed to advise interested parties of the risks and factors that may affect our business, financial condition, results of operations and prospects. Any guidance provided, and other forward-looking statements made, in this press release are provided or made (as applicable) as of the date hereof, and Stratasys undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Use of Non-GAAP Financial Measures The non-GAAP data included herein, which excludes certain items as described below, are non-GAAP financial measures. Our management believes that these non-GAAP financial measures are useful information for investors and shareholders of our company in gauging our results of operations (i) on an ongoing basis after excluding mergers, acquisitions and divestments related expense or gains and reorganization-related charges or gains, and legal provisions and (ii) excluding non-cash items such as stock-based compensation expenses, acquired intangible assets amortization, including intangible assets amortization related to equity method investments, impairment of long-lived assets and goodwill, revaluation of our investments and the corresponding tax effect of those items. These non-GAAP adjustments either do not reflect actual cash outlays that impact our liquidity and our financial condition or have a non-recurring impact on the statement of operations, as assessed by management. These non-GAAP financial measures are presented to permit investors to more fully understand how management assesses our performance for internal planning and forecasting purposes. The limitations of using these non-GAAP financial measures as performance measures are that they provide a view of our results of operations without including all items indicated above during a period, which may not provide a comparable view of our performance to other companies in our industry. Investors and other readers should consider non-GAAP measures only as supplements to, not as substitutes for or as superior measures to, the measures of financial performance prepared in accordance with GAAP. Reconciliation between results on a GAAP and non-GAAP basis is provided in a table below. 2023 2022 104,563 $ 150,470 80,000 177,367 164,075 144,739 197,420 194,054 9,732 5,767 27,534 27,823 583,324 700,220 198,272 195,063 90,187 64,953 141,201 121,402 19,533 18,122 129,738 141,610 19,510 18,420 598,441 559,570 1,181,765 $ 1,259,790 60,845 $ 72,921 49,817 45,912 31,502 34,432 51,751 50,220 6,511 7,169 200,426 210,654 28,559 25,214 6,889 5,638 12,692 10,670 25,884 23,707 24,172 24,475 98,196 89,704 298,622 300,358 194 187 3,080,877 3,048,915 (12,958 (12,818 ) (2,184,970 (2,076,852 ) 883,143 959,432 1,181,765 $ 1,259,790 2023 2022 2023 2022 $ 113,270 $ 112,133 $ 323,353 $ 340,927 48,863 50,059 147,908 151,297 162,133 162,192 471,261 492,224 59,546 55,916 168,235 176,421 36,938 35,527 105,760 107,984 96,484 91,443 273,995 284,405 65,649 70,749 197,266 207,819 23,567 23,145 69,347 71,489 84,880 63,230 221,173 195,085 108,447 86,375 290,520 266,574 (42,798 ) (15,626 ) (93,254 ) (58,755 ) - 39,136 - 39,136 687 452 2,147 (2,080 ) (42,111 ) 23,962 (91,107 ) (21,699 ) (645 ) (3,298 ) (5,145 ) (2,796 ) (4,523 ) (1,915 ) (11,866 ) (2,089 ) $ (47,279 ) $ 18,749 $ (108,118 ) $ (26,584 ) $ (0.68 ) $ 0.28 $ (1.58 ) $ (0.40 ) $ (0.68 ) $ 0.28 $ (1.58 ) $ (0.40 ) 69,093 66,772 68,432 66,356 69,093 67,038 68,432 66,356 2023 Non-GAAP 2023 2022 Non-GAAP 2022 $ 65,649 $ 12,617 $ 78,266 $ 70,749 $ 7,990 $ 78,739 (42,798 ) 46,885 $ 4,087 (15,626 ) 20,149 4,523 (47,279 ) 49,725 $ 2,446 18,749 (15,423 ) 3,326 $ (0.68 ) $ 0.72 $ 0.04 $ 0.28 $ (0.23 ) $ 0.05 (1) 5,142 6,941 891 1,061 6,584 (12 ) 12,617 7,990 (2) 2,599 2,138 6,588 6,330 2,360 1,309 4,300 901 265 394 18,156 1,087 34,269 12,159 46,885 20,149 (3) 153 2,993 162 - 2,525 571 (39,136 ) $ 49,725 $ (15,423 ) (4) 69,093 69,815 67,038 67,038 2023 Non-GAAP 2023 2022 Non-GAAP 2022 $ 197,266 $ 29,199 $ 226,465 $ 207,819 $ 27,593 $ 235,412 (93,254 ) 103,866 $ 10,612 (58,755 ) 67,235 $ 8,480 (108,118 ) 114,179 $ 6,061 (26,584 ) 32,295 $ 5,711 $ (1.58 ) $ 1.67 $ 0.09 $ (0.40 ) $ 0.49 $ 0.09 (1) 14,157 20,861 2,822 3,041 12,220 3,691 29,199 27,593 (2) 7,479 6,581 20,920 21,714 6,626 1,864 4,880 3,217 877 1,197 33,885 5,069 74,667 39,642 103,866 67,235 (3) 3,404 3,219 1,827 571 5,081 406 - (39,136 ) $ 114,179 $ 32,295 (4) 68,432 69,046 66,356 67,007 View source version on businesswire.com: https://www.businesswire.com/news/home/20231116140798/en/ Yonah Lloyd Source: Stratasys Ltd. Released November 16, 2023
Stratasys Ltd.
Consolidated Balance Sheets
(Unaudited)
(in thousands, except share data)
September 30,
December 31,
ASSETS
Current assets
Cash and cash equivalents
$
Short-term deposits
Accounts receivable, net of allowance for credit losses of $1.4 million and $0.9 million
as of September 30, 2023 and December 31, 2022, respectively
Inventories
Prepaid expenses
Other current assets
Total current assets
Non-current assets
Property, plant and equipment, net
Goodwill
Other intangible assets, net
Operating lease right-of-use assets
Long-term investments
Other non-current assets
Total non-current assets
Total assets
$
LIABILITIES AND EQUITY
Current liabilities
Accounts payable
$
Accrued expenses and other current liabilities
Accrued compensation and related benefits
Deferred revenues - short term
Operating lease liabilities - short term
Total current liabilities
Non-current liabilities
Deferred revenues - long term
Deferred income taxes - long term
Operating lease liabilities - long term
Contingent consideration
Other non-current liabilities
Total non-current liabilities
Total liabilities
Equity
Ordinary shares, NIS 0.01 nominal value, authorized 180,000 thousands
shares; 69,165 shares and 67,086 shares issued and
outstanding at September 30, 2023 and December 31, 2022, respectively
Additional paid-in capital
Accumulated other comprehensive loss
)
Accumulated deficit
)
Total equity
Total liabilities and equity
$
Stratasys Ltd.
Consolidated Statements of Operations
(in thousands, except per share data)
Three Months Ended September 30,
Nine Months Ended September 30,
(unaudited)
(unaudited)
(unaudited)
(unaudited)
Net sales
Products
Services
Cost of sales
Products
Services
Gross profit
Operating expenses
Research and development, net
Selling, general and administrative
Operating loss
Gain from deconsolidation of subsidiary
Financial income (expenses), net
Income (loss) before income taxes
Income tax expenses
Share in losses of associated companies
Net income (loss)
Net income (loss) per share
Basic
Diluted
Weighted average ordinary shares outstanding
Basic
Diluted
Three Months Ended September 30,
GAAP
Adjustments
Non-GAAP
GAAP
Adjustments
Non-GAAP
U.S. dollars and shares in thousands (except per share amounts)
Gross profit (1)
Operating income (loss) (1,2)
Net income (loss) (1,2,3)
Net income (loss) per diluted share (4)
Acquired intangible assets amortization expense
Non-cash stock-based compensation expense
Restructuring and other related costs
Acquired intangible assets amortization expense
Non-cash stock-based compensation expense
Restructuring and other related costs
Revaluation of investments
Contingent consideration
Legal, consulting and other expenses
Corresponding tax effect
Finance expenses
Equity method related amortization and other
Gain from deconsolidation of Subsidiary
Weighted average number of ordinary
shares outstanding- Diluted
Nine Months Ended September 30,
GAAP
Adjustments
Non-GAAP
GAAP
Adjustments
Non-GAAP
U.S. dollars and shares in thousands (except per share amounts)
Gross profit (1)
Operating income (loss) (1,2)
Net income (loss) (1,2,3)
Net income (loss) per diluted share (4)
Acquired intangible assets amortization expense
Non-cash stock-based compensation expense
Restructuring and other related costs
Acquired intangible assets amortization expense
Non-cash stock-based compensation expense
Restructuring and other related costs
Revaluation of investments
Contingent consideration
Legal, consulting and other expenses
Corresponding tax effect
Finance expenses
Equity method related amortization and other
Gain from deconsolidation of Subsidiary
Weighted average number of ordinary
shares outstanding- Diluted
CCO & VP Investor Relations
Yonah.Lloyd@stratasys.com
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