Stratasys Releases Fourth Quarter and Full Year 2021 Financial Results

Rhea-AI Summary

Stratasys Ltd. (SSYS) reported a Q4 2021 revenue of $167 million, marking a 17.3% increase year-over-year. However, the company experienced a GAAP net loss of $4.8 million or $0.07 per diluted share. Non-GAAP net income stood at $0.5 million, reflecting a decline from previous figures. The company generated $4.4 million in cash from operations, ending the year with $502.2 million in cash and no debt. Looking ahead, Stratasys expects 2022 revenue between $680 million and $695 million with growth anticipated in the second half.

Positive

• Q4 revenue of $167 million, a 17.3% growth over Q4 2020.
• Generated $4.4 million in cash from operations during Q4.
• Ended 2021 with $502.2 million in cash and equivalents, and no debt.
• First quarter revenue growth expected to reach high teens percentage over Q1 2021.
• Targeting long-term gross margins over 50%.

Negative

• GAAP net loss of $4.8 million in Q4 2021 compared to net income in Q4 2020.
• GAAP operating loss increased to $16.2 million in Q4 2021 from a loss of $2.5 million in Q4 2020.
• Annual GAAP net loss of $62 million for 2021 compared to a larger loss of $443.7 million in 2020.

• Fourth quarter revenue of $167.0 million, 17.3% growth over fourth quarter 2020
• Fourth quarter GAAP net loss of $4.8 million, or $0.07 per diluted share, and non-GAAP net income of $0.5 million, or $0.01 per diluted share
• Generated $4.4 million of cash from operations during the fourth quarter
• $502.2 million cash and equivalents and no debt at year end 2021

MINNEAPOLIS & REHOVOT, Israel--(BUSINESS WIRE)-- Stratasys Ltd. (Nasdaq: SSYS), a leader in polymer 3D printing solutions, today announced financial results for the fourth quarter and full year 2021.

Summary - Fourth Quarter 2021 Financial Results Compared to Fourth Quarter 2020:

• Revenue of $167.0 million compared to $142.4 million.
• GAAP gross margin of 43.7%, compared to 46.4%.
• Non-GAAP gross margin of 48.7%, compared to 49.5%.
• GAAP operating loss of $16.2 million, compared to an operating loss of $2.5 million.
• Non-GAAP operating income of $1.7 million, compared to non-GAAP operating income of $8.3 million that reflected lower operating expenses due to a 4-day work-week.
• GAAP net loss of $4.8 million, or $0.07 per diluted share, compared to net income of $11.0 million, or $0.20 per diluted share that included a one-time $14 million tax benefit.
• Non-GAAP net income of $0.5 million, or $0.01 per diluted share, compared to non-GAAP net income of $7.0 million, or $0.13 per diluted share.
• Adjusted EBITDA of $7.9 million, compared to $14.6 million.
• Cash generated from operations of $4.4 million, compared to $23.7 million, reflecting higher inventory purchasing year over year.

Dr. Yoav Zeif, Stratasys’ Chief Executive Officer, stated, “Our strong execution and results for the fourth quarter were driven by growth across all technologies and regions. Revenue was up over 17%, led by systems growth of 26% as we delivered our highest systems sales in three years, helping to generate our sixth consecutive quarter of positive operating cash flow.”

Dr. Zeif continued, “In 2021 we established the necessary infrastructure to drive our company’s success in the years to come with key acquisitions and successful product launches. We strengthened our industry leadership position as we reinvigorated and expanded our entire polymer 3D printing portfolio. A multitude of industries continues to embrace the many benefits of additive manufacturing and incorporate them into their mass production of parts, and Stratasys is at the forefront of this ongoing transformation. Equipped with best-in-class offerings, unmatched Go-to-Market network and support infrastructure, a strong balance sheet, and the best 3D printing talent relentlessly focused on execution, we are positioned to further build on our momentum in 2022. As we look ahead, we are energized and excited for the future of Stratasys.”

Summary - 2021 Financial Results Compared to 2020:

• Revenue of $607.2 million compared to $520.8 million.
• GAAP gross margin of 42.8%, compared to 42.1%.
• Non-GAAP gross margin of 47.8%, compared to 47.6%.
• GAAP operating loss of $79.2 million, compared to a $456.0 million operating loss that was primarily due to a $386.2 million non-cash goodwill impairment.
• Non-GAAP operating loss of $1.7 million, compared to a $9.1 million non-GAAP operating loss.
• Adjusted EBITDA of $22.6 million, compared to $16.0 million.
• GAAP net loss of $62.0 million, or ($0.98) per diluted share, compared to a loss of $443.7 million, or ($8.08) per diluted share, that included a non-cash $386.2 million goodwill impairment.
• Non-GAAP net loss of $4.3 million, or $(0.07) per diluted share, compared to non-GAAP net loss of $13.9 million, or $(0.25) per diluted share.
• Cash generated from operations of $35.8 million, compared to $27.8 million.

Financial Outlook:

Based on current market conditions and assuming that the impacts of the COVID-19 pandemic or global supply chain costs do not impede economic activity further, the Company is providing the following outlook for 2022:

• Full year revenue of $680 million to $695 million.
• Sequential quarterly revenue growth.
• First quarter revenue growth expected to reach high teens as a percentage over first quarter of 2021.
• Based on current logistics and materials costs, full year gross margins of flat to slightly higher, with improved year-over-year growth in the second half of 2022.
• First quarter gross margins expected to be relatively flat compared to first quarter 2021.
• Targeting long-term gross margins over 50%.
• Full year-operating expenses $20 million to $25 million higher than 2021, primarily due to ongoing investments in new products to drive higher revenue.
• Full year non-GAAP operating margins slightly above 2%, with small losses in the first half and profitable contribution in the second half of the year.
• Targeting long-term double digit non-GAAP operating margins.
• GAAP net loss of $74 million to $67 million, or ($1.11) to ($1.00) per diluted share.
• Non-GAAP net income of $10 million to $13 million, or $0.14 to $0.19 per diluted share.
• Adjusted EBITDA of $38 million to $41 million.
• Capital expenditures of $20 million to $25 million.

Non-GAAP earnings guidance excludes $37 million to $38 million of projected amortization of intangible assets, $31 million to $33 million of share-based compensation expense, and reorganization and other expenses of $14 million to $15 million. Non-GAAP guidance includes tax adjustments of $2 million to $1 million on the above non-GAAP items.

Appropriate reconciliations between GAAP and non-GAAP financial measures are provided in a table at the end of our press release and slide presentation, with itemized detail concerning the non-GAAP financial measures.

Stratasys Ltd. Fourth Quarter 2021 Webcast and Conference Call Details

The Company plans to webcast its conference call to discuss its fourth quarter 2021 financial results on Wednesday, February 23, 2022, 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://themediaframe.com/mediaframe/webcast.html?webcastid=UEHU5sS7

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 six 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 2022 and beyond, are forward-looking statements reflecting management's current expectations and beliefs. These forward-looking statements are based on current information that is, by its nature, subject to rapid and even abrupt change. Due to risks and uncertainties associated with Stratasys' business, actual results could differ materially from those projected or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to: the 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 and integrating into our existing business 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 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, 2021, which we are filing with the U.S. Securities and Exchange Commission, or SEC, on or about the date hereof (the “2021 Annual Report”). Readers are urged to carefully review and consider the various disclosures made throughout our 2021 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 2022, which will be furnished to the SEC throughout 2022, 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, legal provisions 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 and goodwill, 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
(in thousands, except share data)
			December 31,				December 31,
				2021				2020
ASSETS
Current assets
Cash and cash equivalents			$	243,179			$	272,092
Short-term deposits				259,000				27,000
Accounts receivable, net of allowance for credit losses of $0.5 and $0.9 million as of December 31, 2021 and December 31, 2020				129,382				106,068
Inventories				129,147				131,672
Prepaid expenses				6,871				6,717
Other current assets				33,123				16,943
Total current assets				800,702				560,492
Non-current assets
Property, plant and equipment, net				203,295				201,232
Goodwill				65,144				35,694
Other intangible assets, net				152,244				131,569
Operating lease right-of-use assets				14,651				21,298
Long-term investments				28,667				24,268
Other non-current assets				12,519				15,449
Total non-current assets				476,520				429,510
Total assets			$	1,277,222			$	990,002
LIABILITIES AND EQUITY
Current liabilities
Accounts payable			$	51,976			$	16,987
Accrued expenses and other current liabilities				55,358				31,061
Accrued compensation and related benefits				44,684				25,659
Deferred revenues - short term				51,174				49,165
Operating lease liabilities - short term				7,276				9,282
Total current liabilities				210,468				132,154
Non-current liabilities
Deferred revenues - long term				21,133				14,227
Deferred income taxes				7,341				42
Operating lease liabilities - long term				7,693				12,567
Contingent consideration				53,478				37,400
Other non-current liabilities				21,095				34,017
Total non-current liabilities				110,740				98,253
Total liabilities				321,208				230,407
Redeemable non-controlling interests				-				227
Equity
Ordinary shares, NIS 0.01 nominal value, authorized 180,000 thousands
shares; 65,667 thousands shares and 56,617 thousands shares issued
and outstanding at December 31, 2021 and December 31, 2020, respectively				182				155
Additional paid-in capital				3,012,481				2,753,955
Accumulated other comprehensive loss				(8,771	)			(8,846	)
Accumulated deficit				(2,047,878	)			(1,985,896	)
Total equity				956,014				759,368
Total liabilities and equity			$	1,277,222			$	990,002

Stratasys Ltd.
Consolidated Statements of Operations
(in thousands, except per share data)
			Three Months Ended December 31,								Twelve Months Ended December 31,
				2021				2020				2021				2020
			(Unaudited)				(Unaudited)
Net sales
Products			$	118,040			$	99,185			$	417,557			$	339,782
Services				48,976				43,210				189,662				181,035
				167,016				142,395				607,219				520,817
Cost of sales
Products				59,470				44,679				210,941				171,235
Services				34,503				31,697				136,200				130,188
				93,973				76,376				347,141				301,423
Gross profit				73,043				66,019				260,078				219,394
Operating expenses
Research and development, net				22,620				18,953				88,303				84,012
Selling, general and administrative				66,584				49,595				250,937				205,224
Goodwill impairment				-				-				-				386,154
				89,204				68,548				339,240				675,390
Operating loss				(16,161	)			(2,529	)			(79,162	)			(455,996	)
Gain from step acquisition				14,400				-				14,400				-
Financial income (expense), net				(692	)			273				(2,075	)			(575	)
Loss before income taxes				(2,453	)			(2,256	)			(66,837	)			(456,571	)
Income tax benefit (expenses)				(2,103	)			14,144				3,906				16,394
Share in profit (loss) of associated companies				(280	)			(1,200	)			949				(3,939	)
Net income (loss)				(4,836	)			10,688				(61,982	)			(444,116	)
Net loss attributable to non-controlling interests				-				(341	)			-				(395	)
Net income (loss) attributable to Stratasys Ltd.			$	(4,836	)		$	11,029			$	(61,982	)		$	(443,721	)
Net income (loss) per ordinary share attributable to Stratasys Ltd.
Basic			$	(0.07	)		$	0.20			$	(0.98	)		$	(8.08	)
Diluted			$	(0.07	)		$	0.20			$	(0.98	)		$	(8.08	)
Weighted average ordinary shares outstanding
Basic				65,196				55,118				63,471				54,918
Diluted				65,196				55,318				63,471				54,918

			Three Months Ended December 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)	$	73,043			$	8,255			$	81,298		$	66,019			$	4,520			$	70,539
		Operating income (loss) (1,2)		(16,161	)			17,822				1,661			(2,529	)			10,861				8,332
		Net income (loss) attributable to Stratasys Ltd. (1,2,3)		(4,836	)			5,355				519			11,029				(4,001	)			7,028
		Net income (loss) per diluted share attributable to Stratasys Ltd. (4)	$	(0.07	)		$	0.08			$	0.01		$	0.20			$	(0.07	)		$	0.13
(1)		Acquired intangible assets amortization expense						6,024											3,411
		Non-cash stock-based compensation expense						866											347
		Restructuring and other related costs						1,185											762
		Impairment charges						180											-
								8,255											4,520
(2)		Acquired intangible assets amortization expense						2,280											2,290
		Non-cash stock-based compensation expense						6,971											3,962
		Restructuring and other related costs						373											449
		Revaluation of investments						(1,859	)										-
		Contingent consideration						(20	)										-
		Legal and other expenses (income)						1,823											(360	)
								9,568											6,341
								17,822											10,861
(3)		Corresponding tax effect						1,906											(15,009	)
		Equity method related amortization, divestments and impairments						27											483
		Adjustments attributable to non-controlling interest						-											(336	)
		Gain from obtaining control						(14,400	)										-
							$	5,355										$	(4,001	)
(4)		Weighted average number of ordinary shares outstanding- Diluted		65,196								66,820			55,318								55,318

			Twelve Months Ended December 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)	$	260,078			$	30,447			$	290,525			$	219,394			$	28,582			$	247,976
		Operating income (loss) (1,2)		(79,162	)			77,479				(1,683	)			(455,996	)			446,848				(9,148	)
		Net income (loss) attributable to Stratasys Ltd. (1,2,3)		(61,982	)			57,639				(4,343	)			(443,721	)			429,820				(13,901	)
		Net income (loss) per diluted share attributable to Stratasys Ltd. (4)	$	(0.98	)		$	0.91			$	(0.07	)		$	(8.08	)		$	7.83			$	(0.25	)
(1)		Acquired intangible assets amortization expense						22,392												15,607
		Non-cash stock-based compensation expense						3,092												1,771
		Restructuring and other related costs						1,642												5,948
		Impairment charges						3,321												5,256
								30,447												28,582
(2)		Acquired intangible assets amortization expense						8,878												8,720
		Non-cash stock-based compensation expense						27,885												18,433
		Goodwill impairment						-												386,154
		Impairment of long-lived assets						1,447												-
		Restructuring and other related costs						2,743												4,312
		Revaluation of investments						(1,303	)											-
		Contingent consideration						570												-
		Legal and other expenses						6,812												647
								47,032												418,266
								77,479												446,848
(3)		Corresponding tax effect						(864	)											(17,405	)
		Equity method related amortization, divestments and impairments						(4,576	)											713
		Adjustments attributable to non-controlling interest						-												(336	)
		Gain from obtaining control						(14,400	)											-
							$	57,639											$	429,820
(4)		Weighted average number of ordinary shares outstanding- Diluted		63,471								63,471				54,918								54,918

Stratasys Ltd.
Reconciliation of GAAP to Non-GAAP Forward Looking Guidance
Fiscal Year 2022
(in millions, except per share data)
GAAP net loss			($74) to ($67)
Adjustments
Stock-based compensation expense			$31 to $33
Intangible assets amortization expense			$37 to $38
Reorganization Related Expense			$14 to $15
Tax expense (benefit) related to Non-GAAP adjustments			($2) to ($1)
Non-GAAP net income			$10 to $13
GAAP diluted loss per share			($1.11) to ($1.00)
Non-GAAP diluted earnings per share			$0.14 to $0.19

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220223005166/en/

Yonah Lloyd

CCO, VP Investor Relations

Yonah.Lloyd@stratasys.com

Source: Stratasys Ltd.

FAQ

What were Stratasys' earnings in Q4 2021?

Stratasys reported a Q4 2021 revenue of $167 million with a GAAP net loss of $4.8 million.

What is Stratasys' revenue guidance for 2022?

Stratasys expects full year revenue to be between $680 million and $695 million in 2022.

How much cash did Stratasys generate in Q4 2021?

Stratasys generated $4.4 million in cash from operations during the fourth quarter.

What are Stratasys' projected operating losses for 2022?

Stratasys anticipates GAAP net loss between $74 million and $67 million for 2022.

What was Stratasys' adjusted EBITDA for Q4 2021?

Stratasys reported an adjusted EBITDA of $7.9 million for Q4 2021.