Stratasys is still losing money, but at a slower pace
The Atomic Layers: S4E15 (00101)
Atomic Layer of the Day:
While the highlight of the day is Nike's presentation of 3D-printed shoes (more on that below), I believe the financial results of Stratasys for Q3 of this year are more important.
Stratasys reported a revenue drop from $162.1 million in Q3 2023 to $140 million this quarter. This decline was primarily due to lower machine sales, although the company managed to increase revenue from consumable sales for the eighth consecutive quarter. The gross margin also rose by +4.3%, reaching 44.8%.
The company reported a net loss of $26.6 million, an improvement compared to the $47.3 million net loss in the same period last year. On an adjusted (non-GAAP) basis, the company achieved a small net profit of $400,000 (1 cent per share) compared to $2.4 million (4 cents per share) a year ago. EBITDA amounted to $5.1 million, down from $9.8 million last year, reflecting challenges in maintaining operational profitability amid declining revenues. However, cash management improved, with cash used in operating activities reduced to $4.5 million from $12.7 million a year ago.
As you may know, Stratasys implemented a restructuring plan this summer aimed at improving profitability. The workforce was reduced by 15%, which is expected to yield annual savings of approximately $40 million starting from Q1 2025.
Stratasys raised its forecast for the full year 2024, projecting revenues of $570–580 million. Non-GAAP gross margins are expected to reach 49–49.2%, while adjusted EBITDA is forecasted at $25–28 million. The net loss is anticipated to be $105–90 million, partly due to one-time costs associated with defending against hostile takeover attempts and exploring potential mergers (an intriguing statement!).
So, while the situation is worse than before, it's not a disaster. One could say that the revenue decline aligns with expectations, but the ongoing losses are unfortunate. Even with significant reductions, continuously losing money in operations is not a healthy situation…
Atomic Layer from the Past:
11-15-2011: voxeljet presented VX1000 - large-format binder jetting 3D printer, with environmental friendly vibe.
Atomic News & Gossips:
Nike has launched the Air Max 1000, a groundbreaking 3D printed sneaker created in collaboration with Zellerfeld Shoe Company. Made from TPU, it combines innovative design with eco-friendly production. Debuting at ComplexCon 2024, the sneaker highlights the potential of 3D printing in footwear, aiming to bring the technology into mainstream adoption. They looks stunning in the pictures and we had a short discussion on LinkedIn whether the shoes are made in FFF technology and not SLS or MJF. Well, they are made in FFF. And this is amazing.
It’s not just Stratasys that has released financial results—Polish company Zortrax has done so as well. In Q3 2024, the company reported sales revenue of PLN 1.3 million, a decline of -59% compared to the same period last year (PLN 3.2 million). The net loss amounted to PLN -732,000, an improvement compared to the PLN -3.8 million loss in Q3 2023. The company reduced its gross loss from sales to PLN -433,000 (down from PLN -2.5 million a year earlier) thanks to restructuring measures, including cutting fixed costs and renegotiating commercial agreements. The management indicates ongoing restructuring efforts and creditor negotiations aimed at improving the company’s financial standing.
TRUMPF will show upgraded TruPrint 3000 metal 3D printer at Formnext 2024.