Stratasys announces its financial results for Q1 2024

3D printer OEM Stratasys (NASDAQ: SYSS) has announced its financial results for the first quarter of 2024.

In Q1 2024, Stratasys recorded revenue of $144.1 million, reflecting a 3.6% decline compared to the same period last year when revenue was $149.4 million. Revenue also decreased by 7.9%, compared to $156.3 million in Q4 2023. Despite facing challenges from macroeconomic factors affecting customer capital expenditure, Stratasys managed to achieve several improvements in its Q1 2024 performance compared to Q1 2023.

The company reported improvements in gross margins, alongside reaching a record high in consumables recurring revenue. These achievements underscore the strong use of Stratasys’ current systems and highlight the significant impact of this revenue stream on its overall performance.

Dr. Yoav Zeif, Stratasys’ Chief Executive Officer, said, “Our healthy balance sheet, and financial and operating discipline, provide stability to weather the current environment. And when the macro environment eases and capital spending returns to normal levels, our differentiated portfolio and leading go-to-market strength position us to meaningfully accelerate profitable growth, driving long-term shareholder returns.”

Stratasys’ new HighDef Printing capabilities are designed to allow for more exact, high-definition printing with detailed resolution. Image via Stratasys.
Stratasys’ new HighDef Printing capabilities are designed to allow for more exact, high-definition printing with detailed resolution. Image via Stratasys.

Stratasys financial results

Stratasys reports its revenue through two segments: Products and Services. The Products division, encompassing 3D printers and materials, has made a substantial contribution to this year’s overall revenue. In contrast, the Services segment encompasses the company’s on-demand manufacturing and consultancy services.

Revenue $ thousandsQ1 2024Q1 2023Variance $ thousands%
Total revenue144,050149,377-5,327-3.6%

The products segment generated $99.2 million in revenue for Q1 2024, marking a 1.8% decrease as compared to $101.0 million in Q1 2023. Excluding divestitures, product segment revenue was down 0.9% on a Y/Y basis. 

System revenue was $32.9 million, down 18.8% compared to $40.5 million in Q1 2023. Consumables revenue reached $66.3 million, growing 9.6% as compared to Q1 2023 and 5.2% Q4 2023, marking a record high for the company.

The services segment, including Stratasys Direct, generated $44.9 million in Q1 2024, marking a 7.3% decrease from $48.4 million in Q1 2023. Excluding divestitures, service revenue increased by 1.8%. Customer support revenue for Q1 2024 was $31.2 million, up 3.3% compared to Q1 2023, indicating robust usage of Stratasys’ systems.

In the first quarter of 2024, Stratasys launched its new SAF HighDef Printing capabilities along with the H350 V1.5 printer. Featuring upgraded sensors and remote service capabilities, these upgrade delivers precise, detailed prints, benefiting industries such as aerospace, automotive, and healthcare by allowing for the creation of intricate parts with smoother features. 

On another note, BAE Systems, Sikorsky, and automotive OEM Nissan adopted Stratasys’ F3300 3D printer to power up their manufacturing capabilities. Offering significant benefits, this system reduces labor demands, optimizes uptime, and improves part quality and yield. With faster print speeds, higher accuracy, and enhanced autocalibration, it meets the exacting standards of industries like aerospace and automotive.

The new Stratasys F3300 FDM 3D Printer for Manufacturing. Photo via Stratasys.
The new Stratasys F3300 FDM 3D Printer for Manufacturing. Photo via Stratasys.

Additionally, Stratasys appointed Amir Kleiner as its new COO. Possessing 12 years of experience at the company, Kleiner will oversee Global Operations, MIS, and the Quality team, in addition to continuing his role managing the Customer Success team.

Guidance for FY 2024

Considering current economic conditions, Stratasys has provided its financial outlook for fiscal year 2024. It anticipates revenue to range between $630 million and $645 million, potentially up from around $616 million in 2023 when excluding certain sales and adjusting for Covestro’s impact.

During the earnings call Eitan Zamir, Chief Financial Officer at Stratasys said, “We expect the ongoing challenging backdrop to most likely persist this year, continuing to cause delayed purchases and longer sales cycles. Given the ongoing softness in customer capital expenditures, we expect the second quarter revenue to show slight improvement sequentially from the first quarter this year and decline relative to the second quarter of 2023.”

The company aims to improve its financial health with non-GAAP gross margins expected to reach 49.0% to 49.5% by year-end. Operating expenses are projected to be between $292 million and $297 million, with operating profit margins forecasted between 2.5% and 3.5%. Stratasys expects a GAAP net loss of $88 million to $72 million, which includes one-time costs related to strategic reviews.

In terms of profitability, Stratasys forecasts non-GAAP net income of $9 million to $14 million, translating to earnings per share of $0.12 to $0.19. Adjusted EBITDA, a measure of operational performance, is anticipated to be between $40 million and $45 million. The company also expects positive cash flow from its operations and plans to invest $20 million to $25 million in capital expenditures.

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Featured image shows the new Stratasys F3300 FDM 3D Printer for Manufacturing. Photo via Stratasys.