Matthew Horwath
Senior VP & CFO at FARO
Moving to our annual results, we are very pleased with progress we've made in 2024. Despite a difficult macroeconomic environment throughout the year, on a year over year basis, we were able to deliver an eight fifty basis point improvement in gross margin to 55%, a $15,000,000 reduction in non GAAP operating expense to $160,700,000 a $1.49 improvement in non GAAP EPS to $0.97 and a $29,600,000 increase in cash flow from operations to $30,600,000 With this significant improvement in cash flow, we were able to repurchase $3,000,000 of principal from our outstanding convert, $10,000,000 of outstanding shares and increase our cash and short term investments on our balance sheet. As a result of our progress throughout the year, we updated our long term aspirational goals versus the previously communicated goals during our investor event in March 2024, less than one year ago. At $400,000,000 of revenue, we now expect gross margin of 59%, up 200 basis points from our prior goal, EBITDA margin of 20%, an improvement of 500 basis points and annual free cash flow of greater than $56,000,000 representing an increase of $16,000,000 Turning to our outlook, the macroeconomic environment remains choppy and we expect the headwinds we experienced last quarter to continue resulting in a similar level of year over year market contraction quarter in Q1.