Stratasys Releases First Quarter 2022 Financial Results

Stratasys Ltd. (Nasdaq: SSYS), a leader in polymer 3D printing solutions, today announced financial results for the first quarter of 2022.

Summary – First Quarter 2022 Financial Results Compared to First Quarter 2021:

• Revenue of $163.4 million, compared to $134.2 million.
• GAAP gross margin of 42.6%, compared to 41.4%.
• Non-GAAP gross margin of 47.3%, compared to 46.7%.
• GAAP operating loss of $19.6 million, compared to a GAAP operating loss of $18.4 million.
• Non-GAAP operating income of $2.0 million, compared to non-GAAP operating loss of $2.6 million.
• GAAP net loss of $20.9 million, or $0.32 per diluted share, compared to net loss of $18.9 million, or $0.32 per diluted share.
• Non-GAAP net income of $1.2 million, or $0.02 per diluted share, compared to non-GAAP net loss of $3.8 million, or $0.06 per diluted share.
• Adjusted EBITDA of $8.1 million, compared to $3.5 million.
• $16.1 million of cash used by, compared to $22.8 million of cash generated from, operating activities, reflecting more inventory purchasing and increase in accounts receivable.

Dr. Yoav Zeif, Stratasys’ Chief Executive Officer, stated, “Our strong start to the year, with our highest first quarter revenue total in six years, was anchored by 22% revenue growth that included improved contributions from all our technologies. Importantly, systems was the main driver, up 36.7% for its strongest first quarter in five years, and 16.4% higher than the same period in pre-COVID 2019. We also achieved exceptional results in both consumables and services, driven by strength in our growing install base. And we are particularly excited by the early momentum and contributions from our new Origin P3, H350 SAF and Neo systems, designed for high-volume production of end-use parts.”

Dr. Zeif continued, “We have advanced a number of strategic initiatives thus far in 2022, including the announced MakerBot business combination with Ultimaker, the publishing of our inaugural ESG Sustainability Report, and our annual flagship manufacturing event where we showcased new offerings in materials, upgrades to existing printing platforms, and an expansion of our software capabilities. We are relentless about our focus on execution in our drive to grow our leadership position in polymer 3D printing. With our combination of best-in-class talent, systems offerings, Go-to-Market and support infrastructure, combined with a robust balance sheet, Stratasys is positioned to build on our first quarter growth across the balance of 2022 and beyond.”

Financial Outlook:

Based on current market conditions and assuming that the impact of the COVID-19 pandemic or global supply chain costs do not impede economic activity further, the Company is tightening its revenue guidance range for 2022:

• Full year revenue of $685 million to $695 million.
• Sequential quarterly revenue growth.
• Second quarter revenue growth expected to reach low to mid-teens as a percentage over second quarter of 2021.
• Based on current logistics and materials costs, full-year gross margins of flat to slightly higher than in 2021, with improved year-over-year growth in the second half of 2022.
• Full year-operating expenses that are $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%.
• 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. First Quarter 2022 Webcast and Conference Call Details

The Company plans to webcast its conference call to discuss its first quarter 2022 financial results on Monday, May 16, 2022, at 4:30 p.m. (ET).

The investor conference call will be available via live webcast on the Stratasys website at investors.stratasys.com, or directly at the following web address:

https://services.choruscall.com/mediaframe/webcast.html?webcastid=QiDdBAQK

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.