Stratasys drops its 2024 financial results. Not too bad, but who’s doing great these days?
The Atomic Layers: S8E7 (00213)
Atomic Layer of the Day:
Yesterday, Stratasys released its financial report for the fourth quarter and full year 2024. As the company has recently accustomed us to, the results are mixed and require deeper analysis.
Stratasys reported revenue of $150.4 million, marking a slight decline compared to $156.3 million in the same period last year. Annual revenue totaled $572.5 million, representing a significant drop from $627.6 million in 2023.
This could raise concerns, especially given the overall market conditions. However, the company emphasizes that it has taken steps to optimize operations and prepare for future growth.
In the fourth quarter, Stratasys recorded a net loss of $41.9 million, largely due to a one-time, non-cash impairment of equity investments worth $30.1 million.
However, after excluding this and other non-recurring factors, the company achieved a Non-GAAP net profit of $8.5 million!
This demonstrates that, despite challenges, Stratasys' core business remains profitable. For the full year, the GAAP net loss was $120.3 million, while Non-GAAP net profit reached $4.2 million.
There was also a slight improvement in margins: 46.3% GAAP gross margin, compared to 44.7% in the same period last year, while the Non-GAAP gross margin increased to 49.6% from 48.8%. On a full-year basis, GAAP gross margin improved to 44.9% from 42.5%, and Non-GAAP gross margin rose to 49.2% from 48.2%.
This is a positive signal, indicating that the company’s optimization efforts are yielding results.
Stratasys also reported a positive cash flow from operations of $7.4 million in Q4, a significant improvement compared to a negative cash flow of -$7.7 million in the same period last year.
For the full year, operating cash flow was $7.8 million, a substantial improvement compared to a negative $61.6 million in 2023. The company ended the year with $150.7 million in cash and equivalents, with no debt, ensuring financial stability and flexibility.
The Adjusted EBITDA for the fourth quarter stood at $14.5 million (9.6% of revenue), marking a significant increase from $7.7 million in the same period last year. However, for the full year, Adjusted EBITDA was $26.0 million, lower than $35.0 million in 2023.
The company also announced that it expects to close a $120 million investment from Fortissimo Capital in Q2 2025, further strengthening its financial position.
The decline in revenue and GAAP losses may raise concerns, but on the other hand, improving margins, positive operating cash flow, and a debt-free balance sheet indicate financial stability.
Optimization efforts, such as the significant workforce reduction announced mid-year and the relocation of its U.S. headquarters, are showing results and could lay the groundwork for future growth.
Shareholders should not panic, but they should closely monitor the situation, especially in the context of global economic challenges...
Atomic Layer from the Past:
03-07-2023: Caracol AM closed a €10.6 million Series A funding round.
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