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 extent of our success at introducing new or improved products and solutions that gain market share; the extent of growth of the 3D printing market generally; the global macro-economic environment, including headwinds caused by inflation, relatively high interest rates, unfavorable currency exchange rates and uncertain economic conditions; changes in our overall strategy, including as related to any restructuring activities and our capital expenditures; 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 of directors’ comprehensive process to explore strategic alternatives for our company; 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 potential adverse impact of recent global interruptions and delays involving freight carriers and other third parties on our supply chain and distribution network; global market, political and economic conditions, and in the countries in which we operate in particular; potential adverse effects of Israel’s retaliatory war against the terrorist organization Hamas; 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, 2023, which we expect to file with the U.S. Securities and Exchange Commission, or SEC, in the coming days (the “2023 Annual Report”). Readers are urged to carefully review and consider the various disclosures made throughout our 2023 Annual Report and the Reports of Foreign Private Issuer on Form 6-K that attach Stratasys’ unaudited, condensed consolidated financial statements and its review of its results of operations and financial condition, for the quarterly periods throughout 2024, which will be furnished to the SEC throughout 2024, 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, (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, (iii) for certain non-GAAP measures, after eliminating the impact of changes attributable to currency exchange rate fluctuations, and (iv) after excluding changes in revenues solely attributable to divestitures of former subsidiary companies. 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.
Stratasys Ltd. | |||||||||
Consolidated Balance Sheets | |||||||||
(in thousands, except share data) | |||||||||
(Unaudited) | |||||||||
December 31, | December 31, | ||||||||
2023 |
2022 |
||||||||
ASSETS | |||||||||
Current assets | |||||||||
Cash and cash equivalents | $ |
82,585 |
|
$ |
150,470 |
|
|||
Short-term bank deposits |
|
80,000 |
|
|
177,367 |
|
|||
Accounts receivable, net of allowance for credit losses of $1,449 and $861 as of December 31, 2023 and December 31, 2022, respectively |
|
172,009 |
|
|
144,739 |
|
|||
Inventories |
|
192,976 |
|
|
194,054 |
|
|||
Prepaid expenses |
|
7,929 |
|
|
5,767 |
|
|||
Other current assets |
|
24,596 |
|
|
27,823 |
|
|||
Total current assets |
|
560,095 |
|
|
700,220 |
|
|||
Non-current assets | |||||||||
Property, plant and equipment, net |
|
197,552 |
|
|
195,063 |
|
|||
Goodwill |
|
100,051 |
|
|
64,953 |
|
|||
Other intangible assets, net |
|
127,781 |
|
|
121,402 |
|
|||
Operating lease right-of-use assets |
|
18,895 |
|
|
18,122 |
|
|||
Long-term investments |
|
115,083 |
|
|
141,610 |
|
|||
Other non-current assets |
|
14,448 |
|
|
18,420 |
|
|||
Total non-current assets |
|
573,810 |
|
|
559,570 |
|
|||
Total assets | $ |
1,133,905 |
|
$ |
1,259,790 |
|
|||
LIABILITIES AND EQUITY | |||||||||
Current liabilities | |||||||||
Accounts payable | $ |
46,785 |
|
$ |
72,921 |
|
|||
Accrued expenses and other current liabilities |
|
36,656 |
|
|
45,912 |
|
|||
Accrued compensation and related benefits |
|
33,877 |
|
|
34,432 |
|
|||
Deferred revenues - short-term |
|
52,610 |
|
|
50,220 |
|
|||
Operating lease liabilities - short-term |
|
6,498 |
|
|
7,169 |
|
|||
Total current liabilities |
|
176,426 |
|
|
210,654 |
|
|||
Non-current liabilities | |||||||||
Deferred revenues - long-term |
|
23,655 |
|
|
25,214 |
|
|||
Deferred income taxes |
|
723 |
|
|
5,638 |
|
|||
Operating lease liabilities - long-term |
|
12,162 |
|
|
10,670 |
|
|||
Contingent consideration |
|
11,900 |
|
|
23,707 |
|
|||
Other non-current liabilities |
|
24,200 |
|
|
24,475 |
|
|||
Total non-current liabilities |
|
72,640 |
|
|
89,704 |
|
|||
Total liabilities |
|
249,066 |
|
|
300,358 |
|
|||
Equity | |||||||||
Ordinary shares, NIS 0.01 nominal value, authorized 180,000 | |||||||||
shares; 69,656 shares and 67,086 shares issued |
|
195 |
|
|
187 |
|
|||
and outstanding at December 31, 2023 and December 31, 2022, respectively |
|
3,091,649 |
|
|
3,048,915 |
|
|||
Additional paid-in capital | |||||||||
Accumulated other comprehensive loss |
|
(7,079 |
) |
|
(12,818 |
) |
|||
Accumulated deficit |
|
(2,199,926 |
) |
|
(2,076,852 |
) |
|||
Total Equity |
|
884,839 |
|
|
959,432 |
|
|||
Total liabilities and equity | $ |
1,133,905 |
|
$ |
1,259,790 |
|
Stratasys Ltd. | ||||||||||||||||
Consolidated Statements of Operations | ||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended December 31, | Twelve Ended December 31, | |||||||||||||||
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||||
Revenues | ||||||||||||||||
Products | $ |
110,388 |
|
$ |
111,197 |
|
$ |
433,741 |
|
$ |
452,124 |
|
||||
Services |
|
45,949 |
|
|
48,062 |
|
|
193,857 |
|
|
199,359 |
|
||||
|
156,337 |
|
|
159,259 |
|
|
627,598 |
|
|
651,483 |
|
|||||
Cost of revenues | ||||||||||||||||
Products |
|
58,275 |
|
|
58,180 |
|
|
226,510 |
|
|
234,601 |
|
||||
Services |
|
28,304 |
|
|
32,431 |
|
|
134,064 |
|
|
140,415 |
|
||||
|
86,579 |
|
|
90,611 |
|
|
360,574 |
|
|
375,016 |
|
|||||
Gross profit |
|
69,758 |
|
|
68,648 |
|
|
267,024 |
|
|
276,467 |
|
||||
Operating expenses | ||||||||||||||||
Research and development, net |
|
25,078 |
|
|
21,387 |
|
|
94,425 |
|
|
92,876 |
|
||||
Selling, general and administrative |
|
39,006 |
|
|
45,665 |
|
|
260,179 |
|
|
240,750 |
|
||||
|
64,084 |
|
|
67,052 |
|
|
354,604 |
|
|
333,626 |
|
|||||
Operating income (loss) |
|
5,674 |
|
|
1,596 |
|
|
(87,580 |
) |
|
(57,159 |
) |
||||
Gain from deconsolidation of subsidiary |
|
- |
|
|
- |
|
|
- |
|
|
39,136 |
|
||||
Financial income, net |
|
846 |
|
|
2,309 |
|
|
2,993 |
|
|
229 |
|
||||
Income (loss) before income taxes |
|
6,520 |
|
|
3,905 |
|
|
(84,587 |
) |
|
(17,794 |
) |
||||
Income tax expense |
|
(637 |
) |
|
(2,658 |
) |
|
(5,782 |
) |
|
(5,454 |
) |
||||
Share in losses of associated companies |
|
(20,839 |
) |
|
(3,637 |
) |
|
(32,705 |
) |
|
(5,726 |
) |
||||
Net loss | $ |
(14,956 |
) |
$ |
(2,390 |
) |
$ |
(123,074 |
) |
$ |
(28,974 |
) |
||||
Net loss per share | ||||||||||||||||
Basic | $ |
(0.22 |
) |
$ |
(0.04 |
) |
$ |
(1.79 |
) |
$ |
(0.44 |
) |
||||
Diluted | $ |
(0.22 |
) |
$ |
(0.04 |
) |
$ |
(1.79 |
) |
$ |
(0.44 |
) |
||||
Weighted average ordinary shares outstanding | ||||||||||||||||
Basic |
|
69,375 |
|
|
66,908 |
|
|
68,666 |
|
|
66,491 |
|
||||
Diluted |
|
69,375 |
|
|
66,908 |
|
|
68,666 |
|
|
66,491 |
|
Three Months Ended December 31, | |||||||||||||||||||||||
2023 |
|
Non-GAAP |
|
2023 |
|
2022 |
|
Non-GAAP |
|
2022 |
|||||||||||||
GAAP | Adjustments | Non-GAAP | GAAP | Adjustments | Non-GAAP | ||||||||||||||||||
U.S. dollars and shares in thousands (except per share amounts) | |||||||||||||||||||||||
Gross profit (1) | $ |
69,758 |
|
$ |
6,565 |
|
$ |
76,323 |
$ |
68,648 |
|
$ |
8,423 |
|
$ |
77,071 |
|||||||
Operating income (1,2) |
|
5,674 |
|
(3,659 |
) |
|
2,015 |
|
1,596 |
|
|
3,456 |
|
|
5,052 |
||||||||
Net income (loss) (1,2,3) |
|
(14,956 |
) |
|
16,604 |
|
|
1,648 |
|
(2,390 |
) |
|
6,940 |
|
|
4,550 |
|||||||
Net income (loss) per diluted share (4) | $ |
(0.22 |
) |
$ |
0.24 |
|
$ |
0.02 |
$ |
(0.04 |
) |
$ |
0.11 |
|
$ |
0.07 |
|||||||
(1 |
) |
Acquired intangible assets amortization expense |
|
5,446 |
|
|
7,297 |
|
|||||||||||||||
Non-cash stock-based compensation expense |
|
879 |
|
|
1,041 |
|
|||||||||||||||||
Restructuring and other related costs |
|
240 |
|
|
85 |
|
|||||||||||||||||
|
6,565 |
|
|
8,423 |
|
||||||||||||||||||
(2 |
) |
Acquired intangible assets amortization expense |
|
1,688 |
|
|
2,370 |
|
|||||||||||||||
Non-cash stock-based compensation expense |
|
6,997 |
|
|
7,664 |
|
|||||||||||||||||
Restructuring and other related costs |
|
461 |
|
|
874 |
|
|||||||||||||||||
Revaluation of investments |
|
- |
|
|
560 |
|
|||||||||||||||||
Contingent consideration |
|
(23,206 |
) |
|
(19,490 |
) |
|||||||||||||||||
Legal, consulting and other expenses |
|
3,836 |
|
|
3,056 |
|
|||||||||||||||||
|
(10,224 |
) |
|
(4,967 |
) |
||||||||||||||||||
|
(3,659 |
) |
|
3,456 |
|
||||||||||||||||||
(3 |
) |
Corresponding tax effect and other expenses |
|
489 |
|
|
1,770 |
|
|||||||||||||||
Equity method related amortization, divestments and impairments |
|
19,790 |
|
|
1,714 |
|
|||||||||||||||||
Finance expenses |
|
(16 |
) |
|
- |
|
|||||||||||||||||
$ |
16,604 |
|
$ |
6,940 |
|
||||||||||||||||||
(4 |
) |
Weighted average number of ordinary
shares outstanding - Diluted |
|
69,375 |
|
|
69,801 |
|
66,908 |
|
|
67,231 |
Twelve Months Ended December 31, | |||||||||||||||||||||||
2023 |
|
Non-GAAP |
|
2023 |
|
2022 |
|
Non-GAAP |
|
2022 |
|||||||||||||
GAAP | Adjustments | Non-GAAP | GAAP | Adjustments | Non-GAAP | ||||||||||||||||||
U.S. dollars and shares in thousands (except per share amounts) | |||||||||||||||||||||||
Gross profit (1) | $ |
267,024 |
$ |
35,764 |
|
$ |
302,788 |
$ |
276,467 |
|
$ |
36,016 |
|
$ |
312,483 |
||||||||
Operating income (loss) (1,2) |
|
(87,580 |
) |
|
100,207 |
|
|
12,627 |
|
(57,159 |
) |
|
70,691 |
|
|
13,532 |
|||||||
Net income (loss) (1,2,3) |
|
(123,074 |
) |
|
130,783 |
|
|
7,709 |
|
(28,974 |
) |
|
39,235 |
|
|
10,261 |
|||||||
Net income (loss) per diluted share (4) | $ |
(1.79 |
) |
$ |
1.90 |
|
$ |
0.11 |
$ |
(0.44 |
) |
$ |
0.59 |
|
$ |
0.15 |
|||||||
(1 |
) |
Acquired intangible assets amortization expense |
|
19,603 |
|
|
28,158 |
|
|||||||||||||||
Non-cash stock-based compensation expense |
|
3,701 |
|
|
4,082 |
|
|||||||||||||||||
Restructuring and other related costs |
|
12,460 |
|
|
(174 |
) |
|||||||||||||||||
Impairment charges |
|
- |
|
|
3,949 |
|
|||||||||||||||||
|
35,764 |
|
|
36,016 |
|
||||||||||||||||||
(2 |
) |
Acquired intangible assets amortization expense |
|
9,167 |
|
|
8,950 |
|
|||||||||||||||
Non-cash stock-based compensation expense |
|
27,917 |
|
|
29,378 |
|
|||||||||||||||||
Restructuring and other related costs |
|
7,087 |
|
|
2,737 |
|
|||||||||||||||||
Revaluation of investments |
|
4,880 |
|
|
3,777 |
|
|||||||||||||||||
Contingent consideration |
|
(22,329 |
) |
|
(18,293 |
) |
|||||||||||||||||
Legal, consulting and other expenses |
|
37,721 |
|
|
8,126 |
|
|||||||||||||||||
|
64,443 |
|
|
34,676 |
|
||||||||||||||||||
|
100,207 |
|
|
70,691 |
|
||||||||||||||||||
(3 |
) |
Corresponding tax effect |
|
3,894 |
|
|
4,988 |
|
|||||||||||||||
Equity method related amortization, divestments and impairments |
|
24,871 |
|
|
2,285 |
|
|||||||||||||||||
Finance expenses |
|
1,811 |
|
|
406 |
|
|||||||||||||||||
Net gain from sale of business |
|
- |
|
|
(39,136 |
) |
|||||||||||||||||
$ |
130,783 |
|
$ |
39,235 |
|
||||||||||||||||||
(4 |
) |
Weighted average number of ordinary
shares outstanding - Diluted |
|
68,666 |
|
|
69,233 |
|
66,491 |
|
|
67,068 |
Stratasys Ltd. | |||
Reconciliation of GAAP to Non-GAAP Forward Looking Guidance | |||
Fiscal Year 2024 | |||
(in millions, except per share data) | |||
GAAP net loss | ($88) to ($72) | ||
Adjustments | |||
Stock-based compensation expense | $29 to $31 | ||
Intangible assets amortization expense | $26 to $28 | ||
Reorganization and other | $29 to $35 | ||
Tax expense (benefit) related to Non-GAAP adjustments | $2 to $3 | ||
Non-GAAP net income | $9 to $14 | ||
GAAP loss per share | ($1.24) to ($1.01) | ||
Non-GAAP diluted earnings per share | $0.12 to $0.19 |