Stratasys Surges on Revenue Beat, Eyes Growth Amid Additive Manufacturing Innovation

Stratasys, Ltd. SSYS shares are trading higher after the company reported fourth-quarter FY23 revenue of $156.3 million, beating the consensus of $154.2 million.

The adjusted gross margin expanded to 48.8% from 48.4% a year ago. Adjusted operating income was $2.0 million, down from $5.1 million a year ago.

Adjusted EBITDA fell to $7.7 million from $10.7 million the prior year. Adjusted EPS of $0.02 was in line with the consensus.

Cash used in operations stood at $(7.7) million, compared to $(18.1) million in fourth-quarter FY22. It held cash and equivalents of $162.6 million.

FY24 Outlook: The company expects revenue of $630 million-$645 million (consensus $644.09 million) and adjusted EPS of $0.12-$0.19 (consensus $0.26).

Stratasys sees an adjusted EBITDA outlook of $40 million-$45 million and adjusted operating margins of 2.5%-3.5%. The company also expects positive cash flow from operating activities.

Yoav Zeif, Chief Executive Officer, said, “We are innovating and investing as we expand our leadership in additive manufacturing. Our newest and most advanced FDM offering, the F3300, is building a strong pipeline of interest after announcing Toyota as its first customer, and engagement across our entire suite of offerings remains robust.” 

“As macro-economic conditions normalize and capital spending constraints ease, we believe the pent-up demand for our best-in-class offerings will unlock, driving the next phase of outsized growth and increased profitability for our company.”

In December 2023, the company disclosed receiving a preliminary acquisition proposal from Nano Dimension Ltd NNDM to buy all the remaining outstanding shares that it currently doesn’t own for $16.50 per share in cash.

Price Action: SSYS shares are trading higher by 7.16% at $12.43 on the last check Thursday.