Revenue Drops 3.7% to $628 Million, Stratasys Releases 2023 Financial Report
Stratasys Navigates Economic Challenges with a Focus on Growth and Innovation in 2023
In March 2024, Xpiens learned that Stratasys, a leading 3D printing firm, recently unveiled its financial results for Q4 and the entirety of 2023. Despite marking its tenth consecutive quarter of adjusted profitability, the company experienced a 3.7% dip in annual revenue, totaling $627.6 million. The net loss stood at $123.1 million, translating to a loss of $1.79 per share. Faced with a challenging year, Stratasys is now setting its sights on recovery and growth in 2024, with anticipated improvements in revenue and profitability.
For Q4 2023, Stratasys reported revenues of $156.3 million. Excluding the divestiture of Stratasys Direct, sold in November 2023 to Cumberland Additive, this figure represents a modest 1.3% increase year-over-year. However, including all factors, the revenue saw a 1.9% decrease from the previous year. Breaking down the numbers, product sales slightly declined by 0.7% to $110.4 million. System revenue fell by 13.7% to $47.4 million, primarily due to capital budget constraints continuing to influence customer purchasing behavior. On a brighter note, consumables revenue rose by 11.9% to $63 million. Furthermore, excluding the impact from the divestiture of Stratasys Direct, service revenue saw a 3.6% increase, though overall, it was down by 4.6% compared to last year.
Looking at the annual performance, Stratasys posted a revenue of $627.6 million. After adjusting for the divestiture of MakerBot and Stratasys Direct, this marks a 1.3% growth from 2022. However, the unadjusted figures show a 3.7% decline.
One of the most exciting revelations from CEO Zeif during the earnings call was Stratasys' significant progress and milestones achieved in the dental applications sector. He emphasized the dental field as a major growth area for the 3D printing industry and highlighted the company's ongoing expansion in this domain. In 2023, Stratasys launched the TrueDent solution, which has seen growth in dental applications and became available in Q1 2023, expanding its customer base. By pairing TrueDent resin with the J5 DentaJet printer, Stratasys can mass-produce full arch permanent prosthetics, significantly reducing production costs and labor for labs, while improving treatment outcomes for patients. Leading lab networks and dental support organizations in the US and Europe have begun deploying this product.
"Last month, we announced a partnership with Express Dental in Oklahoma during a two-day event providing free dental services to those in need. Over 55 individuals received oral scans on the first day, and by the second, they went home with a new set of dentures provided by TrueDent."
For 2024, the company anticipates a revenue increase from $630 million to $645 million, with expected improvements in gross margin and operational efficiency. This forecast remains cautiously optimistic, contingent on easing macroeconomic pressures and a rebound in capital expenditure.
According to CFO Eitan Zamir, Stratasys expects an improved performance in the latter half of the year, albeit with the caveat that "global capital procurement conditions remain challenging." For 2024, management projects an adjusted gross margin increase from 49% to 49.5%, with the second half expected to perform better than the first, primarily based on anticipated revenue growth.
Enhancing profitability remains a key objective, with expectations for profit metrics to rebound in 2024. Adjusted net loss is projected to range between $88 million and $72 million, equating to a loss of $1.24 to $1.01 per share, with unadjusted net income expected to be between $9 million and $14 million, or a loss of $0.12 to $0.19 per share.
Subscribe to Xpiens to learn more about the latest news in the 3D printing industry.
