- Consolidated Revenue: $140 million, down from $162.1 million in Q3 2023.
- Product Revenue: $94.1 million, compared to $113.2 million in the same period last year.
- System Revenue: $31.7 million, down from $51.5 million in Q3 2023.
- Consumable Revenue: Grew 1% to $62.4 million year-over-year.
- Service Revenue: $45.9 million, compared to $48.9 million in Q3 2023.
- GAAP Gross Margin: 44.8%, up from 40.5% in Q3 2023.
- Non-GAAP Gross Margin: 49.6%, up from 48.3% in Q3 2023.
- GAAP Operating Expenses: $88.2 million, down from $108.4 million in Q3 2023.
- Non-GAAP Operating Expenses: $69.6 million, down from $74.2 million in Q3 2023.
- GAAP Net Loss: $26.6 million or $0.37 per diluted share, compared to a net loss of $47.3 million or $0.68 per diluted share in Q3 2023.
- Non-GAAP Net Income: $0.4 million or $0.01 per diluted share, compared to $2.4 million or $0.04 per diluted share in Q3 2023.
- Adjusted EBITDA: $5.1 million, compared to $9.8 million in Q3 2023.
- Cash Utilization: $4.5 million used in operations, compared to $12.7 million in Q3 2023.
- Cash and Equivalents: $144 million at the end of the quarter.
- 2024 Revenue Outlook: $570 million to $580 million.
- 2024 Gross Margin Outlook: 49% to 49.2%.
- 2024 Operating Expenses Outlook: $276 million to $278 million.
- 2024 Non-GAAP Net Income Outlook: $2.1 million to $5 million or $0.03 to $0.07 per diluted share.
- 2024 Adjusted EBITDA Outlook: $25 million to $28 million.
- 2024 Capital Expenditures Outlook: $15 million to $20 million.
Release Date: November 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Stratasys Ltd (SSYS, Financial) returned to profitability on an adjusted basis in Q3 2024, demonstrating effective cost management and strategic execution.
- The company achieved its eighth consecutive quarter of year-over-year growth in consumable sales, highlighting the stability of its recurring revenue model.
- Stratasys Ltd (SSYS) launched several new products, including the F3300 industrial platform and Origin 2 printer, which have generated significant market interest.
- The company has implemented a $50 million share repurchase plan, reflecting a commitment to returning value to shareholders.
- Stratasys Ltd (SSYS) is ahead of schedule in its restructuring plan, targeting $40 million in annual cost savings starting in Q1 2025.
Negative Points
- Stratasys Ltd (SSYS) experienced a year-over-year decline in consolidated revenue, primarily due to softness in capital equipment spending.
- Product revenue decreased significantly, with system revenue showing a notable decline compared to the previous year.
- Despite improvements, the company still reported a GAAP net loss for the quarter.
- The macroeconomic environment, including high interest rates, continues to impact customer investment in new technologies.
- The company faces challenges in accelerating customer adoption due to prolonged decision-making cycles in the current economic climate.
Q & A Highlights
Q: Your EPS guidance suggests a break-even quarter for Q4. Are you anticipating a pullback in gross margins or higher OpEx?
A: We updated our annual 2024 EPS to $0.03 to $0.07. For Q4, we expect EPS to be in the range of positive $0.08 to $0.12, reflecting significant positive impacts from restructuring.
Q: Can you discuss the sequential decline in consumables and the potential for growth in Q4?
A: Our recurring revenue model is solid, and consumables have grown year over year. The trend is supported by our move towards manufacturing and a growing installed base. We are committed to growth and regularly introduce new materials.
Q: How is the rollout of the F3300 going?
A: The F3300 rollout is going well. It delivers superior performance for industrial uses, and we have shipped to key customers like Toyota and BAE Systems. We expect a flywheel effect as more customers adopt it.
Q: Are there any signs of recovery in your end markets, and which sectors are showing more promise?
A: We see early signs of recovery in government and defense, aerospace, automotive tooling, dental, and medical sectors. The macro environment remains challenging, but these sectors show promise.
Q: Can you provide an update on the TrueDent solution and its milestones?
A: TrueDent is a unique solution in restorative dental. We are expanding regionally and increasing penetration in clinics. Key milestones include regional expansion, gaining credentials from leading institutions, and presenting at major dental shows.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
