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.
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 website at investors.stratasys.com, or directly at the following web address: