Stratasys Q1 2024 Earnings Call Transcript

Quartr
Provided by Quartr
May 29, 2024

There are 10 speakers on the call.

Operator

Greetings and welcome to the Stratasys First Quarter 2024 Earnings Call. At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Yonah Lloyd, Chief Communications Officer and Vice President of Investor Relations.

Operator

Thank you. You may begin.

Speaker 1

Good afternoon, everyone, and thank you for joining us to discuss our 2024 Q1 financial results. On the call with us today are our CEO, Doctor. Yoav Zeif and our CFO, Eitan Zamir. I would like to remind you that access to today's call, including the slide presentation, is available online at the web address provided in our press release. In addition, a replay of today's call, including access to the slide presentation, will also be available and can be accessed through the Investor Relations section of our website.

Speaker 1

Please note that some of the information you will hear during our discussion today will consist of forward looking statements, including, without limitation, those regarding our expectations as to our future revenue, gross margin, operating expenses, taxes and other future financial performance and our expectations for our business outlook. All statements that speak to future performance, events, expectations or results are forward looking statements. Actual results or trends could differ materially from our forecast. For risks that could cause actual results to be materially different from those set forth in forward looking statements, please refer to the risk factors discussed or referenced in Stratasys' Annual Report on Form 20 F for the 2023 year. Please also refer to our operating and financial review and prospects for 2023 and for the Q1 of 2024, which are included as Item 5 of our annual report on Form 20F for 2023 and in Exhibit 99.2 to the report on Form 6 ks that we are furnishing to the SEC tomorrow, respectively.

Speaker 1

Please also see the press release that announces our earnings for the Q1 of 2024, which is attached as Exhibit 99.1 to a separate report on Form 6 ks that we are furnishing to the SEC today. Our reports on Form 6 ks that we on Form 6 ks that we furnish to the SEC on a quarterly basis and throughout the year provide updated current information regarding our operating results and material developments concerning our company. Stratasys assumes no obligation to update any forward looking statements or information which speak as of their respective dates. As in previous quarters, today's call will include GAAP and non GAAP financial measures. The non GAAP financial measures should be read in combination with our GAAP metrics to evaluate our performance.

Speaker 1

Non GAAP to GAAP reconciliations are provided in tables in our slide presentation and today's press release. I will now turn the call over to our Chief Executive Officer, Doctor. Yoav Zaif. Yoav?

Speaker 2

Thank you, Yonah. Good afternoon, everyone, and thank you for joining us. Our solid results for the Q1 of 2024 reflect the resilience of our business model even as we are seeing constrained capital spending across the industry, resulting in relatively flat year over year revenue after backing out divestitures. Gross margins improved and consumables recurring revenue reached a record high, reflecting the strong utilization of our existing systems and demonstrating the impact of this revenue stream. Our customers are using their systems at a high level, displaying a promising indication of their increasing reliance on 3 d printing as they expand usage in manufacturing applications, while also managing costs.

Speaker 2

Our results this quarter and throughout the prolonged capital spending market downturn demonstrate the effectiveness of our strategy that drives high margin consumables and our unique approach that continues to produce strong results. Specifically, in the quarter, we generated over $7,000,000 of cash from operations and positive free cash flow. We believe that our financial discipline strongly differentiates us in our sector and will help drive increased growth and profits as the current macro CapEx challenges subside and spending normalizes. We continue to maintain a healthy balance sheet that provides us stability to manage the current environment and optionality to support our growth through both organic investments and accretive acquisitions. And when capital spending returns to normal level, our differentiated offering of industry leading printer technologies, materials and software solutions positions us to meaningfully accelerate growth, driving sustainable long term shareholder returns.

Speaker 2

Now let me give you an update on our exciting recent technology offering, the F3300, which we launched at the end of last year. As we have shared, the F3300 establishes a new standard in FDM industrial 3 d printing for manufacturing, with up to twice the speed and throughput of standard FDM systems. The value proposition continues to resonate in the market with our sales funnel growing. After securing our first buyer, Toyota, we are building on that momentum. BAE Systems, Europe's largest defense contractor, purchased F3300 to drive production improvement and reduce costs and time to market across their air sector products.

Speaker 2

And our newest FDM technology is perfectly suited to deliver that need. Sikorsky, a Lockheed Martin company, a world leader in vertical flight, purchased the F3300 to help them to stay at the forefront of additive manufacturing through the production of end use parts for the aircraft in a faster and more cost effective way. And Nissan, the automotive OEM, has also become an F3300 customer, where our technology is replacing that of a 3 d printing competitor for multiple use cases. Our F3300 pipeline is strong with accelerating interest and engagement levels. Orders have surpassed our expectations in the first half of this year, and we look forward to achieving and sharing more details on customer wins throughout the year.

Speaker 2

We also recently introduced new SAF IDEF printing capabilities with the launch of our H350 version 1.5, which provides additional applications and use cases for a growing set of manufacturing end users without compromising speed or quality. Now, I'd like to highlight a couple of milestones subsequent to quarter end. First, we announced the promotion of our new COO, Amir Kleiner. Amir has been with Stratasys for over 12 years, and he will now lead the company's global operations, MIS and quality team, while continuing to manage the customer success team. This appointment will strengthen the connection between the customer success organization and the operations and supply chain divisions.

Speaker 2

Also post quarter end, we proudly published our 2nd ESG and Sustainability Report. Sustainability is core to 3 d printing, with benefits to our customers, employees, people and the planet. It's also at the heart of our DNA at Stratasys as we are clear ESG leaders in our industry. Our achievements include improved environmental impact, employee health and safety, diversity and inclusion, good governance and ethical conduct. The certifications, processes and practices we have implemented are a critical component to help cement our leadership role as we partner with some of the largest manufacturing companies in the world.

Speaker 2

We are an increasingly important part of our customers' journey to decarbonize their operations and optimize supply chains and production. We invite our investors and customers to join us on the shift to what we call mindful manufacturing, where we leverage additive manufacturing technology to produce spouts in a more sustainable manner. Overall, we are driving ahead to serve as our customers' most trusted additive manufacturing partner and believe we will see meaningfully improved results when the current CapEx down cycle reverse. To that end, we are continuing to invest in technological innovation, best in class sales channels and key partnerships, building on our meaningful foundations for growth that will drive our industry leadership for the long term. Before I turn it over to our CFO to cover the details of the financial results, let me provide an update regarding our ongoing strategic review.

Speaker 2

We continue to run a comprehensive process as our Board of Directors considers and evaluates all avenues to maximize value. As we have communicated previously, we'll disclose further development on the process where we determine that such disclosure is appropriate or necessary. Over to you, Eitan.

Speaker 3

Thank you, Yoav, and good afternoon, everyone. We are encouraged by multiple improvements in the results of the Q1 relative to the Q1 of last year, while we continue to experience the effect of macroeconomic weakness in customer CapEx spending. Despite the relatively flat revenues, our gross margins improved, thanks in part to another record level in our consumables sales. And we generated over 7,000,000 dollars in operating cash and over $4,000,000 in free cash flow. For the Q1, consolidated revenue of $144,100,000 was down 3.5% compared to Q1 2023.

Speaker 3

Excluding the non core divestitures, our revenues were relatively flat. Product revenue in the Q1 was $99,200,000 compared to $101,000,000 in the same period last year, or down by 0.9%, excluding divestitures. Within product revenue, system revenue was $32,900,000 compared to $40,500,000 in the same quarter last year. Excluding divestitures, revenue declined 17.8%. Consumables revenue grew 9.6% to $66,300,000 compared to the same period last year.

Speaker 3

This represents yet another record level for Stratasys and as Joao pointed out, signals that utilization rates of the system we have sold continue to be strong. Service revenue, including our Stratasys Direct Service Bureau, was $44,900,000 compared to $48,400,000 in the same period last year. Absent divestitures, service revenue was up 1.8%. Within service revenue, customer support revenue remains at strong levels and was up 3.3% compared to the same period last year, another indication of strong use of our system. Now turning to gross margins.

Speaker 3

GAAP gross margin expanded to 44.4% for the quarter compared to 43.8% for the same period last year. Non GAAP gross margin also grew to 48.6% for the quarter compared to 47.3% in the same period last year. The improvement versus the prior year period was driven in part by a greater mix of consumables, higher margins at Stratasys Direct due to divestitures and better operational efficiency. GAAP operating expenses were $88,400,000 compared to $82,200,000 during the same period last year. The change in expenses was primarily related to our recent acquisitions and extraordinary expenses associated with our strategic review process.

Speaker 3

Non GAAP operating expenses were $71,200,000 compared to $69,200,000 during the same period last year, due to the inclusion of Covestro and higher merit costs. Non GAAP operating expenses were 49.5 percent of revenue for the quarter compared to 46.3% for the same period last year. Regarding our consolidated earnings, GAAP operating loss for the quarter was 24,500,000 compared to a loss of $16,800,000 for the same period last year. Non GAAP operating loss for the quarter was 1,200,000 dollars compared to operating income of $1,500,000 for the same period last year. The change reflects the change in overall revenues and increase in OpEx, offset somewhat by a $4,700,000 improvement in non GAAP cost of goods sold.

Speaker 3

GAAP net loss for the quarter was $26,000,000 or $0.37 per diluted share, compared to a net loss of $22,200,000 or $0.33 per diluted share for the same period last year. Non GAAP net loss for the quarter was $1,700,000 or $0.02 per diluted share compared to non GAAP net income of $1,100,000 or $0.02 per diluted share in the same period last year. Adjusted EBITDA was $4,100,000 for the quarter compared to $7,000,000 in the same period last year. We generated $7,300,000 of cash in our operations during the Q1 compared to the use of $17,900,000 of cash from operations in the same quarter last year. After $3,000,000 of capital expenditures, we generated free cash flow for the quarter of $4,300,000 We ended the quarter with $161,100,000 in cash, cash equivalents and short term deposits, compared to 1 $162,600,000 at the end of 2023.

Speaker 3

Our balance sheet remains strong, and we are well capitalized and well positioned to identify and capture value enhancing market opportunities. Now let me turn to our outlook for 2024. We expect the ongoing challenging backdrop to most likely persist this year, continuing to cause delayed purchases and longer sales cycles. Based on our Q1 results and current visibility to our end markets, we are reiterating our full year guidance as follows. We are reiterating our expectation of revenues between $630,000,000 to $645,000,000 with sequential quarterly revenue growth, notably higher in the second half.

Speaker 3

Given the ongoing softness in customer capital expenditures, we expect the 2nd quarter revenue to show slight improvement sequentially from the Q1 this year and decline relative to the Q2 of 2023. From a gross margin perspective, we continue to expect full year 2024 to be in the range of 49% to 49.5 percent with improved year over year growth in the second half of twenty twenty four. We expect our margins to be over 50% next year. In 2024, we expect our operating expenses to range between $292,000,000 to $297,000,000 We continue to expect non GAAP operating margins between 2.5% to 3.5% for the full year. We anticipate a GAAP net loss of $88,000,000 to $72,000,000 or $1.24 to $1.01 per diluted share and non GAAP net income of $9,000,000 to $14,000,000 or $0.12 to $0.19 per diluted share for the full year of 2024.

Speaker 3

Adjusted EBITDA is expected to be in the range of $40,000,000 to $45,000,000 for the year. Capital expenditures are expected to range between $20,000,000 to $25,000,000 for the year. And finally, for the full year, we continue to expect positive cash flow from operating activities. The 2nd quarter will not generate positive operating cash flow due to certain quarter specific costs,

Speaker 2

but we expect to see

Speaker 3

a reversal back to positive operating cash flow in the second half of the year. With that, let me turn the call back over to Yoav for closing remarks. Yoav?

Speaker 2

Thank you, Eitan. In summary, we delivered another solid quarter in a persistently challenging environment. The strength of our system sales in past periods flows through our results today in the form of consumables as our customers continue to heavily utilize previously purchased systems. We expect that those systems will be replaced with higher performance, more advanced offerings in the coming years. The investments we are making to drive innovation and greater capabilities in additive manufacturing mean that we will be ready to meet those needs when the cycle turns.

Speaker 2

We are laser focused on our commitment to delivering differentiated products and solutions to customers across a wide array of use cases. That, coupled with our relentless focus on execution, is setting the stage for us to drive relative outperformance and enhance shareholder value. With that, let's open it up for questions. Operator?

Operator

Thank you. Our first question comes from Troy Jensen with Cantor Fitzgerald. Please state your question.

Speaker 4

Hey, gentlemen, congrats on the good results here in the positive cash flows. Thank you. Maybe first I'll talk for Eitan. You're very welcome. First here for Eitan, a couple of questions.

Speaker 4

I guess, could you talk us about Q2 seasonality? I mean, you guys are kind of 2 months through the quarter now. So would you expect normal seasonality in Q2? And then on top of that, are we going to see incremental revenues from the 3,300 here this quarter?

Speaker 3

Thank you, Troy, for the question. So we expect a slight increase compared to Q1. So there is in that regard the normal seasonality of Q2 being better than Q1. However, the macroeconomic situation is still creating some headwinds in the short term. And with respect to the FA-three thousand three hundred, what was again the question?

Speaker 4

Is it going to be initial revenues in Q2? Because I'm trying to think base business, is that going to seasonal seasonality? And then is it up 3,300 going to be incremental for that?

Speaker 3

Yes. There is going to be we expect to have revenue in Q2, but much more significant in the second half of the year. Okay.

Speaker 4

All right. Perfect. Hey, so I'd love

Operator

to get a third question.

Speaker 4

I got one more here for Etan. I want to do a follow-up for you. But Etan, long term deferred revenues, even down a couple of quarters in a row now. I'm guessing that's just multiyear service contracts, but can you just touch on why long term deferred routes have been turned in the wrong direction?

Speaker 2

There is no

Speaker 3

specific trend. It's sometimes a mix of the number of years of contract. So there is no specific reason or trend.

Speaker 4

Okay. All right. That's fine. All right. Now, Yoh, for you, this quarter was interesting, right, where you guys reported 2 weeks later than normal.

Speaker 4

And there is just kind of a lot of chatter about consolidation and I personally believe you guys had a lot of executives out in Barcelona. We're expecting to hear more about the strategic review prepared remarks, but is there any more color you can talk about here about when you guys plan to really kind of do something on the strategic review?

Speaker 2

Well, on the late report of the quarter, it's a 20 logistics issue, scheduling some resources that are attached to the world, but nothing really important and nothing that really impacts our operations. As for the strategic review, we are precluded from sharing any details. What I can say on the strategic review is that we are engaging, we are making progress and of course we will update when it will culminate.

Speaker 4

All right. Understood. Good luck, guys.

Operator

Our next question comes from Greg Palm with Craig Hallum. Please state your

Speaker 5

question. Yes. This is Danny Eggerich on for Greg today. Thanks for taking the questions. Maybe just as we kind of think about the last time we talked a few months ago, obviously, the macro remains challenging.

Speaker 5

But any kind of change on any kind of change in how you're seeing maybe overall visibility, sales cycles continue to elongate or kind of stay the same? Any color you can give us there would be great.

Speaker 2

Great question. Thank you for asking. So we are more or less in the same situation like last quarter. There was an improvement in the sales cycle and not a real improvement, as I said last quarter, but we saw the second derivative kind of getting lower, so stabilizing. There is the sales cycles are stabilizing.

Speaker 2

We don't see yet the breakthrough, but it's there. If I base it on our engagement with our customers, where most of the engagements now are led by the new NPIs, the new product led by the F3300, there is an appetite in the market. It's clear. But on the other hand, all the large customers and we are focusing on the high end, they are holding their CapEx. There is a CapEx constraint, but it can go so far because at the end, you have new models, you have new drones and the demand is there.

Speaker 2

And we are using this time where we are also stable, by the way. We did not decline. Year over year, we are flat in a very challenging market. We increased our market share in the last 3 years. So we are stable and we are using this time to make sure that we are ready to gain more market share and to fulfill more demand that is out there and just waiting that someone will address it.

Speaker 2

And we have to address it. And we have the growth engine in place for that. So no doubt that there is a macro pressure still out there, but we are working on our micro factors to make sure that we will be the one ready to keep in leading this industry.

Speaker 5

Okay. Makes sense. And maybe just touching on consumables, obviously, really good in the quarter again. Sounds like printer utilization remains pretty strong. I guess, how did or what kind of contribution did Covestro make to that business in the quarter?

Speaker 5

And I guess should we expect that that business continues to grow sequentially as we move throughout the year? How should we think about that?

Speaker 3

Thank you for the question. So Covestro, as we discussed in the past, Covestro levels are $4,000,000 to $5,000,000 a quarter. And Covestro so the growth was both Covestro and organic growth and better utilization of our printers, which is something that create a lot of confidence for the future.

Speaker 2

Maybe I can add here, if I may. Consumables for us is focused because we believe that consumables will allow us to accelerate the adoption of additive manufacturing because it opens up new applications. So we are very proud in our consumable performance, growth year over year with and without Covestro. We observed higher utilization. And practically in SBM, we have record high of utilization across the board.

Speaker 2

We increased our manufacturing installed base step by step by step even in tough time. And all this together will make sure that this trend of selling more consumable and keeping and even increasing the share of consumable out of our total revenue will be there for a long time. And this is the strength of Stratasys.

Operator

Our next question comes from Brian Drab with William Blair. Please state your question.

Speaker 6

Hi, thanks for taking my questions. And I just wanted to talk a little bit more about consumables because the step up sequentially from the Q4 to the Q1 This really is catching my attention. And I'm just it's a significant step up. And can you talk a little bit more about what's driving that? Are you surprised that you saw that in this kind of tougher environment that you saw that step up from a Q4 to a Q1?

Speaker 6

And also is the 3,300 and the consumables usage, which is significant with that potentially going to continue the momentum here in consumables?

Speaker 3

Thank you, Brian. So maybe first with your first question. So to your point, when you look on the trend for the last 3 or 4 quarters, and I'm talking about the trend after the acquisition of Covestro, When you think about Q2 2023 onwards, we're up from 60.8 to 61.8 to 63 in Q4, as you mentioned, and then to 66.3 this quarter. That's to Yaf's point from earlier, demonstrate the higher utilization and that creates confidence. So we have confidence in our ability to achieve levels above $63,000,000 But sometimes where every quarter land in this range between maybe $63,000,000 to $66,000,000 it also depends on specific deals.

Speaker 3

So to your question, we do see the trend is a positive trend. We believe we can achieve higher than 63 during 2024 quarters. But sometimes the specifics can move somewhere within this range. Hopefully, it helps.

Speaker 6

Okay. Yes, that's helpful. And then, yes, on the 3,300, I guess, is my follow-up. What is the consumables usage attach rate or usage relative to other machine?

Speaker 2

Maybe I can help here. F3300 was designed and targeting manufacturing with large parts. So what is unique for those machines is we are talking about high performance materials. We are talking about high consuming of high performance material because those are large parts and those machines are running in very high utilization. It's the same like our F900.

Speaker 2

We have machines that are running 90% 95% utilization, which is much higher than any prototyping machines that we have that can be around 10%, 15% this range. So I'm very optimistic because this is designed for manufacturing and it's coming with our high end materials.

Speaker 6

Got it. Okay. Thank you very much.

Operator

Thank you. And our next question comes from Jacob Steffen with Lake Street Capital Markets. Please state your question.

Speaker 7

Yes. Hey, guys. Congrats on the results. I just wanted to get some clarity on a comment, Yohav, you made earlier in the prepared remarks. You kind of mentioned that orders have surpassed expectations so far in the first half of the year.

Speaker 7

I mean, maybe you could just provide a little clarity on is that the base business or is that just F3300? Any color there would be helpful.

Speaker 2

Jacob? Thank you. It's an opportunity to clarify. I related to the F3300. We of course, like every time that we are launching a new product, we have a plan.

Speaker 2

And we are on plan and exceeding it with the FTR-three hundred. Of course, there is a ramp up and the RevPAR is starting at H1, but will culminate at H2. So that's what I meant. And we are definitely surpassing in terms of purchase orders and in terms also of the quality of the customers because we have Nissan, we have Sikorsky, we have BAE, we have Toyota. And this is something that creates this flying wheel effect that we are looking for because if they can use it for end use parts, also Ade will use it for end use parts.

Speaker 7

Yes. That's understood. And then so I mean, you do have these nice blue chip customers, but maybe you could talk about some of the mid market opportunity that you're seeing with the UP3300, maybe some of those companies that don't have the balance sheet that these large customers do. I guess what traction are you kind of seeing there?

Speaker 2

We are seeing traction in the mindset that FDM can run and also in the mid market can run application, pure manufacturing application because this machine has doubled the speed and almost doubled the throughput and almost half the cost. So it's a disruption in the high end, large part FDM market.

Speaker 3

Thank

Operator

you. Our next question comes from Alec Valero with Loop Capital Markets. Please state your question.

Speaker 2

Hey, guys. It's Alec on Fernanda. Congrats on the results.

Speaker 8

My first question is, have you guys seen any notable changes in the conversational tone with customers? And if so, what kinds of things are they focusing on?

Speaker 2

That's a great question. I would say that the level of engagement that we have is much more specific. And I'm very proud with my team as well that we are not anymore talking high level, 36,000 feet. We are talking about what is the application, what are the requirements, how we work together with our customers to meet those requirements. This is the only way to get those blue chip customers.

Speaker 2

That's the only way. And I think this change in mindset also happening within Stratasys. So it's a different level of engagement than 3 years ago and 4 years ago when I joined Stratasys because we are talking about real requirements. We are talking about what do we need to meet, what type of standards. We are working with the right institution.

Speaker 2

And customer, when you do that, start to understand the benefit of additive manufacturing. And the benefit is very clear. Of course, it's different from each application. For each application, it's completely different, but it's there. And we are not trying to compete on the injection molding part.

Speaker 2

We are trying to compete where we have absolute advantage on personalization, on lightweight, on specific geometries and so on and so forth. And the customers are with us on this journey.

Speaker 8

Very helpful. As a quick follow-up, what are some what are the more notable things industry and company wise that we should all be focusing in on in the second half of twenty twenty four?

Speaker 2

That's a great question. Thank you. I think we should focus on how the additive manufacturing industry can deliver real value. Stop talking about the promise, talk about specific applications and how we can deliver value to specific applications. And this is a combination of the reliability of the machine, the TCO, the total cost of ownership of the part.

Speaker 2

It's a matter of materials how good are the materials. It's related to the software and how we can have the customer be successful along the digital thread with our software, and that's exactly what we are doing. The moment the industry will be there, it's only a matter of time. And I know that today, the industry is kind of depressed because of the macro condition, because that we are in a transition crossing the chasm. But we have absolute advantages and we are going to deliver them and that's the way to analyze or to judge each one of the player.

Speaker 2

Do you have the fundamentals to deliver the value? And I think the strategy has the fundamentals. We are leading with a lot of stability, financial stability. It's very important to the customers by the way, to see the discipline and to understand that there is someone there, a partner in Additive that can take the journey with them for many years to come with the right fundamentals, with portfolio, with the go to market, with the service, with the software, with the material portfolio, that should be the focus, not about promising, about delivering.

Speaker 8

Very helpful. Thank you, guys.

Operator

Our next question comes from Jim Ricchiuti with Needham and Company. Please state your question.

Speaker 9

Hi, good afternoon. This is Chris Gringo on for Jim. With respect to systems that were shipped in the quarter, are the customers replacing existing systems or expanding existing fleets or are they new to 3 d printing or is there any breakout that you would call attention to there?

Speaker 2

It's a combination. Thank you, Chris, for the question. It's a combination. And by the way, this is another thing that kind of help us, I wouldn't say tailwind, but we have such a large installed base of, I would say, almost 40,000 machines out there. So even in tough times, we always have those customers, the loyal customers that we can sell another Stratasys machine even in tough time because they trust us.

Speaker 2

We don't need to prove ourselves. But it's a combination. And we are giving a lot of attention to maintain the happiness of our installed base. But at the same time, we are crossing the tandem into manufacturing and we are hunting for new logos. But back to your question, it's a combination.

Speaker 9

Got it. And then just with respect to the outlook, does it assume no incremental change with respect to customer CapEx patterns that you've observed so far? Or is there any change that is embedded in the outlook?

Speaker 3

Chris, the outlook is based on what we see now and the outlook that we currently see for the Q2 and the second half of the year. Got it. Thank you very much.

Operator

Thank you. And ladies and gentlemen, there are no further questions at this time. I'll hand the floor back to Yoav Seif for closing remarks. Thank you.

Speaker 2

Thank you for joining us. Looking forward to updating you again next quarter.

Operator

Thank you. This concludes today's conference. All parties may disconnect. Have a good day.

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Key Takeaways

  • Stratasys delivered relatively flat Q1 revenues year-over-year excluding divestitures, achieved record consumables revenue of $66.3 million, expanded gross margins, and generated $7.3 million in operating cash flow with $4.3 million of free cash flow.
  • The newly launched F3300 industrial 3D printer—offering up to twice the speed and throughput of standard FDM systems—secured orders from Toyota, BAE Systems, Sikorsky, and Nissan, with a pipeline surpassing expectations for H1 2024.
  • Introduced the H350 version 1.5 with enhanced SAF IDEF printing capabilities, expanding manufacturing use cases without compromising speed or quality.
  • Promoted Amir Kleiner to Chief Operating Officer to better integrate operations and customer success, and published the second ESG & Sustainability Report highlighting improvements in environmental impact, safety, diversity, and governance.
  • Reiterated full-year 2024 guidance of $630 million–$645 million in revenues, ~49%–49.5% gross margin, 2.5%–3.5% non-GAAP operating margin, $40 million–$45 million adjusted EBITDA, $20 million–$25 million capex, and positive operating cash flow.
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Earnings Conference Call
Stratasys Q1 2024
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