FARO Announces Fourth Quarter and Full Year 2024 Financial Results
FARO Technologies reported Q4 2024 financial results with revenue of $93.5 million, down 5% year-over-year but at the upper end of guidance. The company posted a Q4 net loss of $1.0 million ($(0.05) per share), while Non-GAAP EPS reached $0.50.
Key Q4 metrics include gross margin improvement to 56.7% (vs 50.9% prior year) and adjusted EBITDA of $16.7 million (17.9% of sales). The company achieved a decade-high adjusted EBITDA margin of 18% and marked its fifth consecutive quarter of positive operating cash flow.
For full-year 2024, total sales were $342.4 million, down 5% from 2023, with a net loss of $9.1 million ($(0.47) per share). Q1 2025 guidance projects revenue between $77-85 million and Non-GAAP earnings per share of $0.10-$0.30.
FARO Technologies ha riportato i risultati finanziari del quarto trimestre 2024 con un fatturato di $93,5 milioni, in calo del 5% rispetto all'anno precedente, ma al limite superiore delle previsioni. L'azienda ha registrato una perdita netta nel quarto trimestre di $1,0 milione ($(0,05) per azione), mentre l'EPS Non-GAAP ha raggiunto $0,50.
I principali indicatori del quarto trimestre includono un miglioramento del margine lordo al 56,7% (rispetto al 50,9% dell'anno precedente) e un EBITDA rettificato di $16,7 milioni (17,9% delle vendite). L'azienda ha raggiunto un margine EBITDA rettificato del 18%, il più alto degli ultimi dieci anni, e ha segnato il suo quinto trimestre consecutivo di flusso di cassa operativo positivo.
Per l'intero anno 2024, le vendite totali sono state di $342,4 milioni, in calo del 5% rispetto al 2023, con una perdita netta di $9,1 milioni ($(0,47) per azione). Le previsioni per il primo trimestre 2025 stimano un fatturato compreso tra $77 e $85 milioni e un utile per azione Non-GAAP di $0,10-$0,30.
FARO Technologies informó los resultados financieros del cuarto trimestre de 2024 con ingresos de $93.5 millones, una disminución del 5% en comparación con el año anterior, pero en el extremo superior de la guía. La compañía reportó una pérdida neta de $1.0 millón ($(0.05) por acción) en el cuarto trimestre, mientras que el EPS No-GAAP alcanzó $0.50.
Los indicadores clave del cuarto trimestre incluyen una mejora en el margen bruto al 56.7% (frente al 50.9% del año anterior) y un EBITDA ajustado de $16.7 millones (17.9% de las ventas). La compañía logró un margen de EBITDA ajustado del 18%, el más alto en una década, y marcó su quinto trimestre consecutivo de flujo de caja operativo positivo.
Para el año completo 2024, las ventas totales fueron de $342.4 millones, una disminución del 5% en comparación con 2023, con una pérdida neta de $9.1 millones ($(0.47) por acción). Las proyecciones para el primer trimestre de 2025 estiman ingresos entre $77 y $85 millones y ganancias por acción No-GAAP de $0.10-$0.30.
FARO Technologies는 2024년 4분기 재무 결과를 보고하며 수익이 $93.5 백만으로 전년 대비 5% 감소했지만 가이던스의 상한선에 도달했다고 전했습니다. 회사는 4분기에 $1.0 백만의 순손실($(0.05) 주당)을 기록했으며, 비-GAAP EPS는 $0.50에 도달했습니다.
4분기 주요 지표로는 총 매출액 대비 56.7%로 증가한 총 마진(전년 50.9%)과 17.9%의 매출에서 조정된 EBITDA가 $16.7 백만으로 나타났습니다. 회사는 10년 만에 가장 높은 조정 EBITDA 마진인 18%를 기록했으며, 긍정적인 운영 현금 흐름을 기록한 5분기 연속을 달성했습니다.
2024년 전체 연도에 대한 총 매출은 $342.4 백만으로 2023년 대비 5% 감소했으며, 순손실은 $9.1 백만 ($(0.47) 주당)으로 나타났습니다. 2025년 1분기 가이던스는 수익이 $77-85 백만 사이일 것으로 예상하며 비-GAAP 주당 수익은 $0.10-$0.30으로 예상하고 있습니다.
FARO Technologies a annoncé les résultats financiers du quatrième trimestre 2024 avec un chiffre d'affaires de $93,5 millions, en baisse de 5% par rapport à l'année précédente, mais au niveau supérieur des prévisions. L'entreprise a enregistré une perte nette de 1,0 million de dollars ($(0,05) par action) au quatrième trimestre, tandis que le BPA Non-GAAP a atteint 0,50 $.
Les principaux indicateurs du quatrième trimestre comprennent une amélioration de la marge brute à 56,7% (contre 50,9% l'année précédente) et un EBITDA ajusté de 16,7 millions de dollars (17,9% des ventes). L'entreprise a atteint une marge EBITDA ajustée de 18%, la plus élevée depuis dix ans, et a marqué son cinquième trimestre consécutif de flux de trésorerie opérationnel positif.
Pour l'année entière 2024, les ventes totales s'élevaient à $342,4 millions, en baisse de 5% par rapport à 2023, avec une perte nette de 9,1 millions de dollars ($(0,47) par action). Les prévisions pour le premier trimestre 2025 projettent un chiffre d'affaires compris entre 77 et 85 millions de dollars et un bénéfice par action Non-GAAP de 0,10 à 0,30 $.
FARO Technologies berichtete über die finanziellen Ergebnisse des vierten Quartals 2024 mit einem Umsatz von $93,5 Millionen, was einem Rückgang von 5% im Vergleich zum Vorjahr entspricht, jedoch am oberen Ende der Prognose liegt. Das Unternehmen verzeichnete im vierten Quartal einen Nettoverlust von $1,0 Millionen ($(0,05) pro Aktie), während das Non-GAAP EPS $0,50 erreichte.
Die wichtigsten Kennzahlen des vierten Quartals umfassen eine Verbesserung der Bruttomarge auf 56,7% (gegenüber 50,9% im Vorjahr) und ein bereinigtes EBITDA von $16,7 Millionen (17,9% des Umsatzes). Das Unternehmen erzielte eine bereinigte EBITDA-Marge von 18%, die höchste seit einem Jahrzehnt, und verzeichnete sein fünftes aufeinanderfolgendes Quartal mit positivem operativem Cashflow.
Für das Gesamtjahr 2024 betrugen die Gesamterlöse $342,4 Millionen, was einem Rückgang von 5% im Vergleich zu 2023 entspricht, bei einem Nettoverlust von $9,1 Millionen ($(0,47) pro Aktie). Die Prognose für das erste Quartal 2025 sieht einen Umsatz zwischen $77 und $85 Millionen sowie ein Non-GAAP Ergebnis pro Aktie von $0,10-$0,30 vor.
- Achieved decade-high adjusted EBITDA margin of 18% in Q4
- Q4 Non-GAAP EPS of $0.50, significantly up from $0.31 year-over-year
- Gross margin improved to 56.7% from 50.9% year-over-year
- Cash position strengthened to $98.7M from $88.9M in previous quarter
- Fifth consecutive quarter of positive operating cash flow
- Q4 revenue declined 5% year-over-year to $93.5M
- Full year 2024 revenue down 5% to $342.4M
- Q4 net loss of $1.0M compared to net income of $1.6M prior year
- Full year net loss of $9.1M
- Q1 2025 guidance suggests continued revenue challenges with $77-85M range
Insights
FARO's Q4 results reveal a compelling transformation story where profitability takes precedence over top-line growth. The
The company's focus on cash flow management has yielded remarkable results, with five consecutive quarters of positive operating cash flow - a critical indicator of sustainable business improvement. The
The Q1 2025 guidance suggests management's continued prioritization of profitability over growth, with projected gross margins holding strong at
Three key factors support a positive long-term outlook: 1) The successful shift to a function-based organization improving operational efficiency, 2) Growing recurring revenue streams providing stability, and 3) Strategic focus on high-margin market segments. However, investors should monitor the pace of market recovery in manufacturing and construction sectors, as these remain key growth drivers.
- Q4 revenue of
$93.5 million , at the upper end of our guidance range - Q4 net loss of
$1.0 million , or$(0.05) per share; Non-GAAP EPS of$0.50 , at the high end of guidance range - Significant improvement in cash flow, which results in positive Q4 and FY2024 cash flow from operations
LAKE MARY, Fla., Feb. 24, 2025 (GLOBE NEWSWIRE) -- FARO® Technologies, Inc. (Nasdaq: FARO), a global leader in 4D digital reality solutions, today announced its financial results for the fourth quarter and full year ended December 31, 2024.
“We are proud to conclude the year with strong momentum, surpassing targets across all of our metrics in the fourth quarter and achieving a decade-high adjusted EBITDA margin of
Fourth Quarter 2024 Financial Summary
- Total sales of
$93.5 million , down5% year over year - Gross margin of
56.7% , compared to50.9% in the prior year period - Non-GAAP gross margin of
57.4% , compared to51.3% in the prior year period - Operating expenses of
$48.4 million , compared to$48.9 million in the prior year period - Non-GAAP operating expenses of
$39.9 million , compared to$41.3 million in the prior year period - Net loss of
$1.0 million , or$(0.05) per share compared to net income of$1.6 million , or$0.08 per share in the prior year period - Non-GAAP net income of
$9.5 million , or$0.50 per share compared to net income of$5.8 million , or$0.31 per share in the prior year period - EBITDA of
$8.2 million , or8.8% of total sales compared to$3.7 million , or3.7% of total sales in the prior year period - Adjusted EBITDA of
$16.7 million , or17.9% of total sales compared to$11.9 million , or12.1% of total sales in the prior year period - Cash, cash equivalents & short-term investments of
$98.7 million , compared to$88.9 million as of September 30, 2024.
* A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures is provided in the financial schedules portion at the end of this press release. An additional explanation of these measures is included below under the heading “Non-GAAP Financial Measures”.
Full Year 2024 Financial Summary
- Total sales of
$342.4 million , down5% compared to the prior year period - Net loss of
$9.1 million , or$(0.47) per share compared to net loss of$56.6 million , or$(2.99) per share in the prior year period - Non-GAAP net income of
$18.5 million , or$0.97 per share compared to non-GAAP net loss of$9.9 million , or$(0.52) per share in the prior year period
Outlook for the First Quarter 2025
For the first quarter ending March 31, 2025, FARO currently expects:
- Revenue in the range of
$77 t o$85 million - Gross margin in the range of
54.5% -56.0% . Non-GAAP gross margin in the range of55.0% -56.5% - Operating expenses in the range of
$45.0 -$47.0 million . Non-GAAP operating expenses in the range of$38.5 -$40.5 million - Net loss per share in the range of (
$0.36) - ($0.16) . Non-GAAP earnings per share in the range of$0.10 t o$0.30
Conference Call
The Company will host a conference call to discuss these results on Monday, February 24, 2025, at 4:30 p.m. ET. Interested parties can access the conference call by dialing (800) 579-2543 (U.S.) or +1 (785) 424-1789 (International) and using the passcode FARO. A live webcast will be available in the Investor Relations section of FARO's website at: https://www.faro.com/en/About-Us/Investor-Relations/Financial-Events-and-Presentations
A replay webcast will be available in the Investor Relations section of the company's web site approximately two hours after the conclusion of the call and will remain available for approximately 30 calendar days.
About FARO
For 40 years, FARO has provided industry-leading technology solutions that enable customers to measure their world, and then use that data to make smarter decisions faster. FARO continues to be a pioneer in bridging the digital and physical worlds through data-driven reliable accuracy, precision, and immediacy. For more information, visit www.faro.com.
Non-GAAP Financial Measures
This press release contains information about our financial results that are not presented in accordance with U.S. generally accepted accounting principles (“GAAP”). These non-GAAP financial measures, including non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP income from operations, non-GAAP net income and non-GAAP net income per share, exclude the impact of purchase accounting intangible amortization expense and fair value adjustments, stock-based compensation, restructuring and other charges, and other tax adjustments, and are provided to enhance investors’ overall understanding of our historical operations and financial performance.
In addition, we present EBITDA, which is calculated as net income (loss) before interest (income) expense, net, income tax benefit (expense) and depreciation and amortization and fair value adjustments, and Adjusted EBITDA, which is calculated as EBITDA, excluding other (income) expense, net, stock-based compensation, and restructuring and other charges, as measures of our operating profitability. The most directly comparable GAAP measure to EBITDA and Adjusted EBITDA is net income (loss). We also present Adjusted EBITDA margin, which is calculated as Adjusted EBITDA as a percent of total sales.
In our fourth quarter reporting, we have included non-GAAP total sales on a constant currency basis. The most directly comparable GAAP measure to total sales on a constant currency basis is total sales. We believe constant currency information is useful in analyzing underlying trends in our business and the commercial performance of our products by eliminating the impact of highly volatile fluctuations in foreign currency markets and allows for period-to-period comparisons of our performance. For simplicity, we may elect to omit this information in future periods if we determine a lack of material impact. To present this information, current period performance for entities reporting in currencies other than U.S. dollars are converted to U.S. dollars at the exchange rate in effect during the last day of the prior comparable period.
Management believes that these non-GAAP financial measures provide investors with relevant period-to-period comparisons of our core operations using the same methodology that management employs in its review of the Company’s operating results. These financial measures are not recognized terms under GAAP and should not be considered in isolation or as a substitute for a measure of financial performance prepared in accordance with GAAP.
These non-GAAP financial measures have limitations that should be considered before using these measures to evaluate a company’s financial performance. These non-GAAP financial measures, as presented, may not be comparable to similarly titled measures of other companies due to varying methods of calculation. The financial statement tables that accompany this press release include a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties, such as statements about the outlook for the first quarter of 2024, demand for and customer acceptance of FARO’s products, FARO’s product development and product launches, FARO's growth, strategic and restructuring plans and initiatives, including but not limited to the additional restructuring charges expected to be incurred in connection with our restructuring and integration plans and the timing and amount of cost savings and other benefits expected to be realized from the restructuring and integration plans and other strategic initiatives, and FARO’s growth potential and profitability. Statements that are not historical facts or that describe the Company's plans, objectives, projections, expectations, assumptions, strategies, or goals are forward-looking statements. In addition, words such as “is,” “will” and similar expressions or discussions of FARO’s plans or other intentions identify forward-looking statements. Forward-looking statements are not guarantees of future performance and are subject to various known and unknown risks, uncertainties, and other factors that may cause actual results, performances, or achievements to differ materially from future results, performances, or achievements expressed or implied by such forward-looking statements. Consequently, undue reliance should not be placed on these forward-looking statements.
Factors that could cause actual results to differ materially from what is expressed or forecasted in such forward-looking statements include, but are not limited to:
- the Company’s ability to realize the intended benefits of its undertaking to transition to a company that is reorganized around functions to improve the efficiency of its sales organization and to improve operational effectiveness;
- the Company’s inability to successfully execute its strategic plan and our 2024 Restructuring Plan, including but not limited to additional impairment charges including existing leasehold improvements and/or higher than expected severance costs and exit costs, and its inability to realize the expected benefits of such plans;
- the effect of any changes in our executive management team and the loss of any of our executive officers or other key personnel, which may be impacted by factors such as our inability to competitively address inflationary pressures on employee compensation and flexibility in employee work arrangements, including the impact of our 2025 "return to office" policy;
- the outcome of any litigation to which the Company is or may become a party;
- loss of future government sales;
- potential impacts on customer and supplier relationships and the Company's reputation;
- development by others of new or improved products, processes or technologies that make the Company's products less competitive or obsolete;
- the Company's inability to maintain its technological advantage by developing new products and enhancing its existing products;
- declines or other adverse changes, or lack of improvement, in industries that the Company serves or the domestic and international economies in the regions of the world where the Company operates and other general economic, business, and financial conditions;
- the effect of general economic and financial market conditions, including in response to public health concerns;
- assumptions regarding the Company’s financial condition or future financial performance may be incorrect;
- the impact of fluctuations in foreign exchange rates and inflation rates; and
- other risks and uncertainties discussed in Part I, Item 1A. Risk Factors in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 that will be filed with the SEC following this earnings release, and in other SEC filings.
Forward-looking statements in this release represent the Company’s judgment as of the date of this release. The Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise, unless otherwise required by law.
Investor Contacts
FARO Technologies, Inc.
Matthew Horwath, Chief Financial Officer
+1 407-562-5005
IR@faro.com
Sapphire Investor Relations, LLC
Michael Funari or Erica Mannion
+1 617-542-6180
IR@faro.com
| FARO TECHNOLOGIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| (in thousands, except share and per share data) | December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | |||||||||||
| Sales | |||||||||||||||
| Product | $ | 73,885 | $ | 78,818 | $ | 260,194 | $ | 278,572 | |||||||
| Service | 19,650 | 20,022 | 82,233 | 80,259 | |||||||||||
| Total sales | 93,535 | 98,840 | 342,427 | 358,831 | |||||||||||
| Cost of sales | |||||||||||||||
| Product | 30,077 | 37,781 | 112,894 | 150,472 | |||||||||||
| Service | 10,377 | 10,773 | 42,380 | 43,360 | |||||||||||
| Total cost of sales | 40,454 | 48,554 | 155,274 | 193,832 | |||||||||||
| Gross profit | 53,081 | 50,286 | 187,153 | 164,999 | |||||||||||
| Operating expenses | |||||||||||||||
| Selling, general and administrative | 34,360 | 39,429 | 140,584 | 157,336 | |||||||||||
| Research and development | 11,428 | 9,238 | 40,056 | 41,806 | |||||||||||
| Restructuring costs | 2,568 | 263 | 3,184 | 15,393 | |||||||||||
| Total operating expenses | 48,356 | 48,930 | 183,824 | 214,535 | |||||||||||
| Income (loss) from operations | 4,725 | 1,356 | 3,329 | (49,536 | ) | ||||||||||
| Other (income) expense | |||||||||||||||
| Interest expense (income) | 936 | 819 | 3,551 | 3,348 | |||||||||||
| Other (income) expense, net | 555 | 1,303 | 712 | 1,178 | |||||||||||
| Loss before income tax | 3,234 | (766 | ) | (934 | ) | (54,062 | ) | ||||||||
| Income tax expense (benefit) | 4,220 | (2,354 | ) | 8,132 | 2,515 | ||||||||||
| Net loss (income) | $ | (986 | ) | $ | 1,588 | $ | (9,066 | ) | $ | (56,577 | ) | ||||
| Net loss (income) per share - Basic | $ | (0.05 | ) | $ | 0.08 | $ | (0.47 | ) | $ | (2.99 | ) | ||||
| Net loss (income) per share - Diluted | $ | (0.05 | ) | $ | 0.08 | $ | (0.47 | ) | $ | (2.99 | ) | ||||
| Weighted average shares - Basic | 18,938,561 | 18,961,632 | 19,151,551 | 18,917,778 | |||||||||||
| Weighted average shares - Diluted | 18,938,561 | 21,086,277 | 19,151,551 | 18,917,778 | |||||||||||
| FARO TECHNOLOGIES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS | |||||||
| (in thousands, except share and per share data) | December 31, 2024 | December 31, 2023 | |||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 88,703 | $ | 76,787 | |||
| Short-term investments | 9,999 | 19,496 | |||||
| Accounts receivable, net | 87,022 | 92,028 | |||||
| Inventories, net | 32,121 | 34,529 | |||||
| Prepaid expenses and other current assets | 30,326 | 38,768 | |||||
| Total current assets | 248,171 | 261,608 | |||||
| Non-current assets: | |||||||
| Property, plant and equipment, net | 18,767 | 21,181 | |||||
| Operating lease right-of-use asset | 15,880 | 12,231 | |||||
| Goodwill | 106,555 | 109,534 | |||||
| Intangible assets, net | 44,133 | 47,891 | |||||
| Service and sales demonstration inventory, net | 22,760 | 23,147 | |||||
| Deferred income tax assets, net | 23,005 | 25,027 | |||||
| Other long-term assets | 3,734 | 4,073 | |||||
| Total assets | $ | 483,005 | $ | 504,692 | |||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 27,336 | $ | 27,404 | |||
| Accrued liabilities | 27,735 | 29,930 | |||||
| Income taxes payable | 6,736 | 5,699 | |||||
| Current portion of unearned service revenues | 41,590 | 40,555 | |||||
| Customer deposits | 4,989 | 4,251 | |||||
| Lease liability | 4,474 | 5,434 | |||||
| Total current liabilities | 112,860 | 113,273 | |||||
| Loan - | 70,267 | 72,760 | |||||
| Unearned service revenues - less current portion | 19,886 | 20,256 | |||||
| Lease liability - less current portion | 14,056 | 10,837 | |||||
| Deferred income tax liabilities | 14,809 | 13,308 | |||||
| Income taxes payable - less current portion | 1,485 | 5,629 | |||||
| Other long-term liabilities | 32 | 23 | |||||
| Total liabilities | 233,395 | 236,086 | |||||
| Commitments and contingencies | |||||||
| Shareholders’ equity: | |||||||
| Common stock - par value | 20 | 20 | |||||
| Additional paid-in capital | 358,133 | 346,277 | |||||
| Accumulated deficit | (18,855 | ) | (9,789 | ) | |||
| Accumulated other comprehensive loss | (49,019 | ) | (37,247 | ) | |||
| Common stock in treasury, at cost - 1,961,767 and 1,376,220 shares held, respectively | (40,669 | ) | (30,655 | ) | |||
| Total shareholders’ equity | 249,610 | 268,606 | |||||
| Total liabilities and shareholders’ equity | $ | 483,005 | $ | 504,692 | |||
| FARO TECHNOLOGIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| Twelve Months Ended December 31, | |||||||
| (in thousands) | 2024 | 2023 | |||||
| Cash flows from: | |||||||
| Operating activities: | |||||||
| Net loss | $ | (9,066 | ) | $ | (56,577 | ) | |
| Adjustments to reconcile net loss to net cash used by operating activities: | |||||||
| Depreciation and amortization | 15,737 | 15,377 | |||||
| Stock-based compensation | 11,689 | 17,833 | |||||
| Inventory write-downs | — | 9,340 | |||||
| Asset impairment charges | — | 5,707 | |||||
| Provision for bad debts, net of recoveries | 957 | 1,030 | |||||
| Amortization of debt discount and issuance costs | 507 | 450 | |||||
| Loss on disposal of assets | 1,548 | 274 | |||||
| Provision for excess and obsolete inventory | 1,118 | 2,361 | |||||
| Deferred income tax (benefit) and other non-cash charges | 4,926 | (26 | ) | ||||
| Change in operating assets and liabilities, net of acquisitions: | |||||||
| (Increase) decrease in: | |||||||
| Accounts receivable, net | (975 | ) | (50 | ) | |||
| Inventories | (2,773 | ) | 736 | ||||
| Prepaid expenses and other assets | 6,988 | 3,387 | |||||
| (Decrease) increase in: | |||||||
| Accounts payable and accrued liabilities | (259 | ) | 4,421 | ||||
| Income taxes payable | (2,931 | ) | (3,808 | ) | |||
| Customer deposits | 1,044 | (2,533 | ) | ||||
| Unearned service revenues | 3,344 | 2,786 | |||||
| Other liabilities | (1,225 | ) | 367 | ||||
| Net cash provided by (used in) operating activities | 30,629 | 1,075 | |||||
| Investing activities: | |||||||
| Purchases of property and equipment | (5,842 | ) | (6,817 | ) | |||
| Purchases of short-term investments | (9,999 | ) | (19,496 | ) | |||
| Maturities of short-term investments | 20,009 | — | |||||
| Cash paid for technology development, patents and licenses | (7,358 | ) | (7,177 | ) | |||
| Net cash used in investing activities | (3,190 | ) | (33,490 | ) | |||
| Financing activities: | |||||||
| Payments on capital leases | (155 | ) | (154 | ) | |||
| Repurchases of common stock | (10,014 | ) | — | ||||
| Cash settlement of equity awards | — | 217 | |||||
| Proceeds from issuance of | — | 72,310 | |||||
| Repayment of | (2,685 | ) | — | ||||
| Payment of contingent consideration for business acquisition | — | (1,098 | ) | ||||
| Net cash (used in) provided by financing activities | (12,854 | ) | 71,275 | ||||
| Effect of exchange rate changes on cash and cash equivalents | (2,669 | ) | 115 | ||||
| Increase (Decrease) in cash and cash equivalents | 11,916 | 38,975 | |||||
| Cash and cash equivalents, beginning of period | 76,787 | 37,812 | |||||
| Cash and cash equivalents, end of period | $ | 88,703 | $ | 76,787 | |||
| FARO TECHNOLOGIES, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP (UNAUDITED) | |||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
| (dollars in thousands, except per share data) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Gross profit, as reported | $ | 53,081 | $ | 50,286 | $ | 187,153 | $ | 164,999 | |||||||
| Stock-based compensation (1) | 383 | 364 | 1,468 | 1,335 | |||||||||||
| Restructuring and other costs(2) | 262 | 51 | 270 | 1,377 | |||||||||||
| Non-GAAP adjustments to gross profit | 645 | 415 | 1,738 | 2,712 | |||||||||||
| Non-GAAP gross profit | $ | 53,726 | $ | 50,701 | $ | 188,891 | $ | 167,711 | |||||||
| Gross margin, as reported | 56.7 | % | 50.9 | % | 54.7 | % | 46.0 | % | |||||||
| Non-GAAP gross margin | 57.4 | % | 51.3 | % | 55.2 | % | 46.7 | % | |||||||
| Selling, general and administrative, as reported | $ | 34,360 | $ | 39,429 | $ | 140,584 | $ | 157,336 | |||||||
| Stock-based compensation (1) | (2,347 | ) | (4,488 | ) | (8,343 | ) | (14,198 | ) | |||||||
| Restructuring and other costs (2) | — | (1,067 | ) | (3,453 | ) | (2,273 | ) | ||||||||
| Purchase accounting intangible amortization | (388 | ) | (634 | ) | (1,555 | ) | (2,658 | ) | |||||||
| Non-GAAP selling, general and administrative | $ | 31,625 | $ | 33,240 | $ | 127,233 | $ | 138,207 | |||||||
| Research and development, as reported | $ | 11,428 | $ | 9,238 | $ | 40,056 | $ | 41,806 | |||||||
| Stock-based compensation (1) | (488 | ) | (705 | ) | (1,878 | ) | (2,300 | ) | |||||||
| Restructuring and other costs (2) | (1,948 | ) | — | (1,948 | ) | — | |||||||||
| Purchase accounting intangible amortization | (688 | ) | (475 | ) | (2,777 | ) | (2,016 | ) | |||||||
| Non-GAAP research and development | $ | 8,304 | $ | 8,058 | $ | 33,453 | $ | 37,490 | |||||||
| Operating expenses, as reported | $ | 48,356 | $ | 48,930 | $ | 183,824 | $ | 214,535 | |||||||
| Stock-based compensation (1) | (2,835 | ) | (5,194 | ) | (10,221 | ) | (16,498 | ) | |||||||
| Restructuring and other costs (2) | (4,516 | ) | (1,329 | ) | (8,585 | ) | (17,666 | ) | |||||||
| Purchase accounting intangible amortization | (1,076 | ) | (1,109 | ) | (4,332 | ) | (4,674 | ) | |||||||
| Non-GAAP adjustments to operating expenses | (8,427 | ) | (7,632 | ) | (23,138 | ) | (38,838 | ) | |||||||
| Non-GAAP operating expenses | $ | 39,929 | $ | 41,298 | $ | 160,686 | $ | 175,697 | |||||||
| Income (loss) from operations, as reported | $ | 4,725 | $ | 1,356 | $ | 3,329 | $ | (49,536 | ) | ||||||
| Non-GAAP adjustments to gross profit | 645 | 415 | 1,738 | 2,712 | |||||||||||
| Non-GAAP adjustments to operating expenses | 8,427 | 7,632 | 23,138 | 38,838 | |||||||||||
| Non-GAAP income (loss) from operations | $ | 13,797 | $ | 9,403 | $ | 28,205 | $ | (7,986 | ) | ||||||
| Net (loss) income, as reported | $ | (986 | ) | $ | 1,588 | $ | (9,066 | ) | $ | (56,577 | ) | ||||
| Non-GAAP adjustments to gross profit | 645 | 415 | 1,738 | 2,712 | |||||||||||
| Non-GAAP adjustments to operating expenses | 8,427 | 7,632 | 23,138 | 38,838 | |||||||||||
| Income tax effect of non-GAAP adjustments | (1,824 | ) | (2,056 | ) | (5,356 | ) | (10,852 | ) | |||||||
| Other tax adjustments (4) | 3,209 | (1,738 | ) | 8,070 | 15,962 | ||||||||||
| Non-GAAP net income (loss) | $ | 9,471 | $ | 5,841 | $ | 18,524 | $ | (9,917 | ) | ||||||
| Net (loss) income per share - Diluted, as reported | $ | (0.05 | ) | $ | 0.08 | $ | (0.47 | ) | $ | (2.99 | ) | ||||
| Stock-based compensation (1) | 0.17 | 0.28 | 0.61 | 0.94 | |||||||||||
| Restructuring and other costs (2) | 0.25 | 0.07 | 0.46 | 1.01 | |||||||||||
| Purchase accounting intangible amortization and fair value adjustments | 0.06 | 0.06 | 0.23 | 0.25 | |||||||||||
| Income tax effect of non-GAAP adjustments (3) | (0.10 | ) | (0.10 | ) | (0.28 | ) | (0.57 | ) | |||||||
| Other tax adjustments (3) | 0.17 | (0.08 | ) | 0.42 | 0.84 | ||||||||||
| Non-GAAP net income (loss) per share - Diluted | $ | 0.50 | $ | 0.31 | $ | 0.97 | $ | (0.52 | ) | ||||||
(1) We exclude stock-based compensation, which is non-cash, from the non-GAAP financial measures because the Company believes that such exclusion provides a better comparison of results of ongoing operations for current and future periods with such results from past periods.
(2) On February 14, 2020, our Board of Directors approved a global restructuring plan (the “Restructuring Plan”), which is intended to support our strategic plan in an effort to improve operating performance and ensure that we are appropriately structured and resourced to deliver increased and sustainable value to our shareholders and customers. On February 7, 2023, our Board of Directors approved an integration plan (the “Integration Plan”), which is intended to streamline and simplify operations, particularly around our recent acquisitions and the resulting redundant operations and offerings. The Restructuring and other costs primarily consist of severance and related benefits. Substantially all of our planned activities under the Restructuring Plan and the Integration Plan are complete. On November 1, 2024, our Board of Directors approved a restructuring plan (the “2024 Restructuring Plan”), which is intended to support its strategic plan in an effort to improve operating performance and streamline and simplify operations, particularly around our redundant operations and underperforming countries primarily driven by economic and demand challenges in the manufacturing and construction sectors.
(3) The Income tax effect of non-GAAP adjustments is calculated by applying a statutory tax rate to Non-GAAP adjustments, including Stock-based compensation, Restructuring and other costs, non-recurring Inventory reserve charges, and Purchase accounting intangible amortization and fair value adjustments. In addition, when estimating our Non-GAAP income tax rate, we exclude the impact of items that impact our reported income tax rate that we do not believe are representative of our ongoing operating results, including the impact of valuation allowances we are currently recording in certain jurisdictions and certain discrete items such as adjustments to uncertain tax position reserves, as these items are difficult to predict and can impact our effective income tax rate. Specifically, Other tax adjustments during the twelve months ended December 31, 2024 were comprised of
| FARO TECHNOLOGIES, INC. AND SUBSIDIARIES RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA (UNAUDITED) | |||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net (loss) income | $ | (986 | ) | $ | 1,588 | $ | (9,066 | ) | $ | (56,577 | ) | ||||
| Interest expense, net | 936 | 819 | 3,551 | 3,348 | |||||||||||
| Income tax expense (benefit) | 4,220 | (2,354 | ) | 8,132 | 2,515 | ||||||||||
| Depreciation and amortization and fair value adjustments | 4,028 | 3,649 | 15,737 | 15,377 | |||||||||||
| EBITDA | 8,198 | 3,702 | 18,354 | (35,337 | ) | ||||||||||
| Other expense, net | 555 | 1,303 | 712 | 1,178 | |||||||||||
| Stock-based compensation | 3,218 | 5,557 | 11,689 | 17,833 | |||||||||||
| Restructuring and other costs (1) | 4,778 | 1,380 | 8,855 | 19,043 | |||||||||||
| Adjusted EBITDA | $ | 16,749 | $ | 11,942 | $ | 39,610 | $ | 2,717 | |||||||
| Adjusted EBITDA margin (2) | 17.9 | % | 12.1 | % | 11.6 | % | 0.8 | % | |||||||
(1) On February 14, 2020, our Board of Directors approved a global restructuring plan (the “Restructuring Plan”), which is intended to support our strategic plan in an effort to improve operating performance and ensure that we are appropriately structured and resourced to deliver increased and sustainable value to our shareholders and customers. On February 7, 2023, our Board of Directors approved an integration plan (the “Integration Plan”), which is intended to streamline and simplify operations, particularly around our recent acquisitions and the resulting redundant operations and offerings. The Restructuring and other costs primarily consist of severance and related benefits. Substantially all of our planned activities under the Restructuring Plan and the Integration Plan are complete. On November 1, 2024, our Board of Directors approved a restructuring plan (the “2024 Restructuring Plan”), which is intended to support its strategic plan in an effort to improve operating performance and streamline and simplify operations, particularly around our redundant operations and underperforming countries primarily driven by economic and demand challenges in the manufacturing and construction sectors.
(2) Calculated as Adjusted EBITDA as a percentage of total sales.
| FARO TECHNOLOGIES, INC. AND SUBSIDIARIES KEY SALES MEASURES (UNAUDITED) | |||||||||||||||
| For the Three Months Ended December 31, | For the Twelve Months Ended December 31, | ||||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Total sales to external customers as reported | |||||||||||||||
| Americas (1) | $ | 40,563 | $ | 42,535 | $ | 158,311 | $ | 167,269 | |||||||
| EMEA (1) | 32,922 | 33,657 | 108,418 | 108,298 | |||||||||||
| APAC (1) | 20,050 | 22,648 | 75,698 | 83,264 | |||||||||||
| $ | 93,535 | $ | 98,840 | $ | 342,427 | $ | 358,831 | ||||||||
| For the Three Months Ended December 31, | For the Twelve Months Ended December 31, | ||||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Total sales to external customers in constant currency (2) | |||||||||||||||
| Americas (1) | $ | 41,425 | $ | 42,678 | $ | 159,990 | $ | 167,889 | |||||||
| EMEA (1) | 34,122 | 34,490 | 110,938 | 109,746 | |||||||||||
| APAC (1) | 20,869 | 23,088 | 78,119 | 83,448 | |||||||||||
| $ | 96,416 | $ | 100,256 | $ | 349,047 | $ | 361,083 | ||||||||
(1) Regions represent North America and South America (Americas); Europe, the Middle East, and Africa (EMEA); and the Asia-Pacific (APAC).
(2) We compare the change in the sales from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying business performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rate in effect during the last day of the prior comparable period, rather than the actual exchange rates in effect during the respective periods.
| For the Three Months Ended December 31, | For the Twelve Months Ended December 31, | ||||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Hardware | $ | 62,297 | $ | 66,640 | $ | 215,265 | $ | 234,124 | |||||||
| Software | 11,588 | 12,178 | 44,929 | 44,448 | |||||||||||
| Service | 19,650 | 20,022 | 82,233 | 80,259 | |||||||||||
| Total Sales | $ | 93,535 | $ | 98,840 | $ | 342,427 | $ | 358,831 | |||||||
| Hardware as a percentage of total sales | 66.6 | % | 67.4 | % | 62.9 | % | 65.2 | % | |||||||
| Software as a percentage of total sales | 12.4 | % | 12.3 | % | 13.1 | % | 12.4 | % | |||||||
| Service as a percentage of total sales | 21.0 | % | 20.3 | % | 24.0 | % | 22.4 | % | |||||||
| Total Recurring Revenue (3) | $ | 17,077 | $ | 17,360 | $ | 68,364 | $ | 67,497 | |||||||
| Recurring revenue as a percentage of total sales | 18.3 | % | 17.6 | % | 20.0 | % | 18.8 | % | |||||||
(3) Recurring revenue is comprised of hardware service contracts, software maintenance contracts, and subscription based software applications.
| FARO TECHNOLOGIES, INC. AND SUBSIDIARIES FREE CASH FLOW RECONCILIATION (UNAUDITED) | |||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net cash provided by operating activities | $ | 17,274 | $ | 18,655 | $ | 30,629 | $ | 1,075 | |||||||
| Purchases of property and equipment | (2,283 | ) | (1,801 | ) | (5,842 | ) | (6,817 | ) | |||||||
| Cash paid for technology development, patents and licenses | (2,536 | ) | (2,106 | ) | (7,358 | ) | (7,177 | ) | |||||||
| Free Cash Flow | 12,455 | 14,748 | 17,429 | (12,919 | ) | ||||||||||
| Restructuring and other cash payments (1) | 3,764 | 2,665 | 6,864 | 14,380 | |||||||||||
| Adjusted Free Cash Flow | $ | 16,219 | $ | 17,413 | $ | 24,293 | $ | 1,461 | |||||||
(1) On February 7, 2023, our Board of Directors approved an integration plan (the “Integration Plan”), which is intended to streamline and simplify operations, particularly around our recent acquisitions and the resulting redundant operations and offerings. The Restructuring and other cash payments primarily consist of severance and related benefits.
| FARO TECHNOLOGIES, INC. AND SUBSIDIARIES RECONCILIATION OF OUTLOOK - GAAP TO NON-GAAP | |||
| Fiscal quarter ending March 31, 2025 | |||
| Low | High | ||
| GAAP gross margin | |||
| Stock-based compensation | |||
| Non-GAAP gross margin | |||
| Fiscal quarter ending March 31, 2025 | |||
| (in thousands) | Low | High | |
| GAAP operating expenses | |||
| Stock-based compensation | (3,300) | (3,300) | |
| Purchase accounting intangible amortization | (1,200) | (1,200) | |
| Restructuring and other costs | (2,000) | (2,000) | |
| Non-GAAP operating expenses | |||
| Fiscal quarter ending March 31, 2025 | |||
| Low | High | ||
| GAAP diluted loss per share range | |||
| Stock-based compensation | 0.19 | 0.19 | |
| Purchase accounting intangible amortization | 0.06 | 0.06 | |
| Restructuring and other costs | 0.11 | 0.11 | |
| Non-GAAP tax adjustments | 0.10 | 0.10 | |
| Non-GAAP diluted loss per share | |||
FAQ
What was FARO's Q4 2024 revenue and how did it compare to guidance?
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What is FARO's revenue guidance for Q1 2025?
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