Stratasys Releases First Quarter 2021 Financial Results
Stratasys Ltd. (NASDAQ: SSYS) reported its first quarter 2021 results, with revenue of $134.2 million, up from $132.9 million in Q1 2020. GAAP net loss narrowed to $18.9 million ($0.32/share) from $21.7 million ($0.40/share) a year prior. Adjusted EBITDA turned positive at $3.5 million, compared to a negative $2.1 million. The company forecasted mid-teens percentage revenue growth for Q2 2021 and indicated that operating expenses could increase by $25-30 million for the full year due to staffing and acquisitions. CEO Dr. Yoav Zeif expressed confidence in future growth in the 3D printing sector.
- 41% growth in system revenues for Q1 2021.
- Narrowed GAAP operating loss to $18.4 million from $19.9 million.
- Adjusted EBITDA of $3.5 million compared to $(2.1) million.
- Cash from operations increased to $22.8 million from $11.3 million.
- Reiteration of mid-teens percentage revenue growth for Q2 2021.
- GAAP gross margin decreased from 45.0% to 41.4%.
- Non-GAAP gross margin declined from 48.4% to 46.7%.
- Full year operating expenses expected to rise by $25 million to $30 million.
Stratasys Ltd. (NASDAQ: SSYS) announced financial results for the first quarter of 2021.
First Quarter 2021 Financial Results Summary Compared to First Quarter 2020:
-
Revenue of
$134.2 million compared to$132.9 million . -
GAAP gross margin was
41.4% , compared to45.0% . -
Non-GAAP gross margin was
46.7% , compared to48.4% . -
GAAP operating loss was
$18.4 million , compared to an operating loss of$19.9 million . -
Non-GAAP operating loss was
$2.6 million , compared to an operating loss of$8.4 million . -
GAAP net loss was
$18.9 million , or$0.32 per diluted share, compared to a net loss of$21.7 million , or$0.40 per diluted share. -
Non-GAAP net loss was
$3.8 million , or$0.06 per diluted share, compared to a net loss of$10.6 million , or$0.19 per diluted share. -
Adjusted EBITDA was
$3.5 million , compared to$(2.1) million . -
Cash from operations of
$22.8 million , compared to$11.3 million .
“I am pleased with our performance in the first quarter that drove
Dr. Zeif continued, “3D printing is migrating from being primarily a prototyping tool to providing full-scale, digital manufacturing platforms at mass production levels. With our focused business model, we continue to make progress on our strategy to grow our manufacturing applications, which will solidify our position as the first choice in polymer 3D printing. We recently hosted an unprecedented online event for over 4,500 customers, resellers and partners, where we introduced three next-generation manufacturing systems that address a large portion of the multibillion-dollar market opportunity in additive manufacturing of end-use parts and will play an integral role in positioning the business for future growth. Looking to the rest of 2021, we will continue to prioritize strategic investments that we expect to yield significant returns and sustained profitability in the years to come. With a fortress balance sheet and multiple growth opportunities in front of us, we are poised to build incremental value for our shareholders,” concluded Dr. Zeif.
Financial Outlook:
The Company is reiterating and updating its outlook as follows:
- Second quarter 2021 revenue of mid-teens percentage growth year-over-year.
-
Full year operating expenses expected to rise approximately
$25 million to$30 million compared to 2020, likely closer to the high end of the range, primarily due to the return of employees to a full-time schedule starting January 1, 2021, as well as the impact of recent acquisitions. -
Full year capital expenditures anticipated range from
$24 million to$30 million . - Longer term, the Company continues to expect significant leverage benefit from its investments as revenue growth should accelerate in 2022 and beyond.
Stratasys Ltd. First Quarter 2021 Webcast and Conference Call Details
The Company plans to webcast its conference call to discuss its first quarter 2021 financial results on Wednesday, May 5, 2021 at 8:30 a.m. (ET).
The investor conference call will be available via live webcast on the Stratasys Web site at investors.stratasys.com, or directly at the following web address:
https://78449.themediaframe.com/dataconf/productusers/ssys/mediaframe/44880/indexl.html.
To participate by telephone, the U.S. toll-free number is 877-407-0619 and the international dial-in is +1-412-902-1012. Investors are advised to dial into the call at least ten minutes prior to the call to register. The webcast will be available for 6 months at investors.stratasys.com, or by accessing the above-provided web address.
Stratasys is leading the global shift to additive manufacturing with innovative 3D printing solutions for industries such as aerospace, automotive, consumer products and healthcare. Through smart and connected 3D printers, polymer materials, a software ecosystem, and parts on demand, Stratasys solutions deliver competitive advantages at every stage in the product value chain. The world’s leading organizations turn to Stratasys to transform product design, bring agility to manufacturing and supply chains, and improve patient care.
To learn more about Stratasys, visit www.stratasys.com, the Stratasys blog, Twitter, LinkedIn, or Facebook. Stratasys reserves the right to utilize any of the foregoing social media platforms, including the company’s websites, to share material, non-public information pursuant to the SEC’s Regulation FD. To the extent necessary and mandated by applicable law, Stratasys will also include such information in its public disclosure filings.
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 2021, 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 degree of our success at introducing new or improved products and solutions that gain market share; the degree of growth of the 3D printing market generally; 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; 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 acquisitions or investments in new businesses, technologies, products or services; the strength and duration of, and degree of recovery from, the COVID-19 pandemic in the markets in which we operate; potential changes in our management and board of directors; global market, political and economic conditions, and in the countries in which we operate in particular (including risks related to the impact of the coronavirus on our supply chain and business); 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, 2020, which we filed with the U.S. Securities and Exchange Commission, or SEC, on March 1, 2021 (the “2020 Annual Report”). Readers are urged to carefully review and consider the various disclosures made throughout our 2020 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 2021, which will be furnished to the SEC throughout 2021, 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 (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, revaluation of our investments and the corresponding tax effect of those items. 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 | ||||||||
| (Unaudited) | ||||||||
| (in thousands, except share data) | ||||||||
March 31, |
December 31, |
|||||||
2021 |
2020 |
|||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ |
421,398 |
|
$ |
272,092 |
|
||
| Short-term deposits |
|
109,000 |
|
|
27,000 |
|
||
| Accounts receivable, net of allowance for credit losses of |
|
102,780 |
|
|
106,068 |
|
||
| Inventories |
|
124,199 |
|
|
131,672 |
|
||
| Prepaid expenses |
|
10,345 |
|
|
6,717 |
|
||
| Other current assets |
|
16,745 |
|
|
16,943 |
|
||
| Total current assets |
|
784,467 |
|
|
560,492 |
|
||
| Non-current assets | ||||||||
| Property, plant and equipment, net |
|
199,382 |
|
|
201,232 |
|
||
| Goodwill |
|
38,074 |
|
|
35,694 |
|
||
| Other intangible assets, net |
|
131,619 |
|
|
131,569 |
|
||
| Operating lease right-of-use assets |
|
19,089 |
|
|
21,298 |
|
||
| Other non-current assets |
|
43,299 |
|
|
39,717 |
|
||
| Total non-current assets |
|
431,463 |
|
|
429,510 |
|
||
| Total assets | $ |
1,215,930 |
|
$ |
990,002 |
|
||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ |
28,062 |
|
$ |
16,987 |
|
||
| Accrued expenses and other current liabilities |
|
29,283 |
|
|
31,061 |
|
||
| Accrued compensation and related benefits |
|
30,937 |
|
|
25,659 |
|
||
| Deferred revenues - short term |
|
49,413 |
|
|
49,165 |
|
||
| Operating lease liabilities - short term |
|
8,941 |
|
|
9,282 |
|
||
| Total current liabilities |
|
146,636 |
|
|
132,154 |
|
||
| Non-current liabilities | ||||||||
| Deferred revenues - long term |
|
14,074 |
|
|
14,227 |
|
||
| Operating lease liabilities - long term |
|
10,501 |
|
|
12,567 |
|
||
| Contingent consideration |
|
40,234 |
|
|
37,400 |
|
||
| Other non-current liabilities |
|
32,470 |
|
|
34,059 |
|
||
| Total non-current liabilities |
|
97,279 |
|
|
98,253 |
|
||
| Total liabilities |
|
243,915 |
|
|
230,407 |
|
||
| Redeemable non-controlling interests |
|
227 |
|
|
227 |
|
||
| Equity | ||||||||
| Ordinary shares, NIS 0.01 nominal value, authorized 180,000 thousands shares; 65,218 thousands shares and 56,617 thousands shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively |
|
181 |
|
|
155 |
|
||
| Additional paid-in capital |
|
2,984,048 |
|
|
2,753,955 |
|
||
| Accumulated other comprehensive loss |
|
(7,634 |
) |
|
(8,846 |
) |
||
| Accumulated deficit |
|
(2,004,807 |
) |
|
(1,985,896 |
) |
||
| Total equity |
|
971,788 |
|
|
759,368 |
|
||
| Total liabilities and equity | $ |
1,215,930 |
|
$ |
990,002 |
|
||
| Stratasys Ltd. | ||||||||
| Consolidated Statements of Operations | ||||||||
| (in thousands, except per share data) | ||||||||
Three Months Ended March 31, |
||||||||
2021 |
2020 |
|||||||
(unaudited) |
(unaudited) |
|||||||
| Net sales | ||||||||
| Products | $ |
90,324 |
|
$ |
83,172 |
|
||
| Services |
|
43,865 |
|
|
49,735 |
|
||
|
134,189 |
|
|
132,907 |
|
|||
| Cost of sales | ||||||||
| Products |
|
46,920 |
|
|
39,248 |
|
||
| Services |
|
31,692 |
|
|
33,789 |
|
||
|
78,612 |
|
|
73,037 |
|
|||
| Gross profit |
|
55,577 |
|
|
59,870 |
|
||
| Operating expenses | ||||||||
| Research and development, net |
|
20,601 |
|
|
24,194 |
|
||
| Selling, general and administrative |
|
53,334 |
|
|
55,576 |
|
||
|
73,935 |
|
|
79,770 |
|
|||
| Operating loss |
|
(18,358 |
) |
|
(19,900 |
) |
||
| Financial expense, net |
|
(377 |
) |
|
(829 |
) |
||
| Loss before income taxes |
|
(18,735 |
) |
|
(20,729 |
) |
||
| Income tax expenses (benefit) |
|
(942 |
) |
|
221 |
|
||
| Share in losses of associated companies |
|
(1,118 |
) |
|
(838 |
) |
||
| Net loss |
|
(18,911 |
) |
|
(21,788 |
) |
||
| Net loss attributable to non-controlling interests |
|
- |
|
|
(85 |
) |
||
| Net loss attributable to Stratasys Ltd. | $ |
(18,911 |
) |
$ |
(21,703 |
) |
||
| Net loss per ordinary share attributable to Stratasys Ltd. | ||||||||
| Basic | $ |
(0.32 |
) |
$ |
(0.40 |
) |
||
| Diluted | $ |
(0.32 |
) |
$ |
(0.40 |
) |
||
| Weighted average ordinary shares outstanding | ||||||||
| Basic |
|
58,616 |
|
|
54,544 |
|
||
| Diluted |
|
58,616 |
|
|
54,544 |
|
||
Three Months Ended March 31, |
||||||||||||||||||||||||||
|
2021 |
|
|
Non-GAAP |
|
|
2021 |
|
|
|
2020 |
|
|
Non-GAAP |
|
|
2020 |
|
||||||||
GAAP |
|
Adjustments |
|
Non-GAAP |
|
GAAP |
|
Adjustments |
|
Non-GAAP |
||||||||||||||||
U.S. dollars and shares in thousands (except per share amounts) |
||||||||||||||||||||||||||
| Gross profit (1) | $ |
55,577 |
|
$ |
7,069 |
|
$ |
62,646 |
|
$ |
59,870 |
|
$ |
4,414 |
|
$ |
64,284 |
|
||||||||
| Operating income (loss) (1,2) |
|
(18,358 |
) |
|
15,785 |
|
|
(2,573 |
) |
|
(19,900 |
) |
|
11,491 |
|
|
(8,409 |
) |
||||||||
| Net income (loss) attributable to Stratasys Ltd. (1,2,3) |
|
(18,911 |
) |
|
15,111 |
|
|
(3,800 |
) |
|
(21,703 |
) |
|
11,137 |
|
|
(10,566 |
) |
||||||||
| Net income (loss) per diluted share attributable to Stratasys Ltd. (4) | $ |
(0.32 |
) |
$ |
0.26 |
|
$ |
(0.06 |
) |
$ |
(0.40 |
) |
$ |
0.21 |
|
$ |
(0.19 |
) |
||||||||
(1 |
) |
Acquired intangible assets amortization expense |
|
5,356 |
|
|
4,065 |
|
||||||||||||||||||
| Non-cash stock-based compensation expense |
|
634 |
|
|
402 |
|
||||||||||||||||||||
| Restructuring and other related costs |
|
1,079 |
|
|
(53 |
) |
||||||||||||||||||||
|
7,069 |
|
|
4,414 |
|
|||||||||||||||||||||
(2 |
) |
Acquired intangible assets amortization expense |
|
2,192 |
|
|
2,142 |
|
||||||||||||||||||
| Non-cash stock-based compensation expense |
|
6,571 |
|
|
4,503 |
|
||||||||||||||||||||
| Restructuring and other related costs |
|
1,810 |
|
|
31 |
|
||||||||||||||||||||
| Revaluation of investments |
|
(3,670 |
) |
|
- |
|
||||||||||||||||||||
| Contingent consideration |
|
191 |
|
|
- |
|
||||||||||||||||||||
| Other expenses |
|
1,622 |
|
|
401 |
|
||||||||||||||||||||
|
8,716 |
|
|
7,077 |
|
|||||||||||||||||||||
|
15,785 |
|
|
11,491 |
|
|||||||||||||||||||||
(3 |
) |
Corresponding tax effect |
|
(757 |
) |
|
(431 |
) |
||||||||||||||||||
| Equity method related amortization, divestments and impairments |
|
83 |
|
|
77 |
|
||||||||||||||||||||
$ |
15,111 |
|
$ |
11,137 |
|
|||||||||||||||||||||
(4 |
) |
Weighted average number of ordinary shares outstanding- Diluted |
|
58,616 |
|
|
58,616 |
|
|
54,544 |
|
|
54,544 |
|
||||||||||||
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FAQ
What were Stratasys' revenue and net loss for Q1 2021?
How did Stratasys' GAAP gross margin change from Q1 2020 to Q1 2021?
What is Stratasys' guidance for Q2 2021 revenue growth?
How did Stratasys perform in terms of cash from operations in Q1 2021?
What are Stratasys' expectations for full-year operating expenses?
