Use of Non-GAAP Financial Measures
The non-GAAP data included herein, which excludes certain items as described below, are non-GAAP financial measures. Our management believes that these non-GAAP financial measures are useful information for investors and shareholders of our company in gauging our results of operations (i) on an ongoing basis after excluding mergers, acquisitions, divestments and strategic process-related expense or gains and reorganization-related charges or gains, and legal provisions and (ii) excluding non-cash items such as share-based compensation expenses, acquired intangible assets amortization, including intangible assets amortization related to equity-method investments, impairment of long-lived assets and goodwill, revaluation of our investments and the corresponding tax effect of those items. These non-GAAP adjustments either do not reflect actual cash outlays that impact our liquidity and our financial condition or have a non-recurring impact on the statement of operations, as assessed by management. These non-GAAP financial measures are presented to permit investors to more fully understand how management assesses our performance for internal planning and forecasting purposes. The limitations of using these non-GAAP financial measures as performance measures are that they provide a view of our results of operations without including all items indicated above during a period, which may not provide a view of our performance that is comparable to those of other companies in our industry. Investors and other readers should consider non-GAAP measures only as supplements to, not as substitutes for or as superior measures to, the measures of financial performance prepared in accordance with GAAP. Reconciliation between results on a GAAP and non-GAAP basis is provided in a table below.
| Stratasys Ltd. | ||||||||
| Consolidated Balance Sheets | ||||||||
| (in thousands, except share data) | ||||||||
| September 30, 2024 | December 31, 2023 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ |
63,956 |
|
$ |
82,585 |
|
||
| Short-term bank deposits |
|
80,000 |
|
|
80,000 |
|
||
| Accounts receivable, net of allowance for credit losses of $2,599 and $1,449 as of September 30, 2024 and December 31, 2023, respectively |
|
153,653 |
|
|
172,009 |
|
||
| Inventories |
|
195,188 |
|
|
192,976 |
|
||
| Prepaid expenses |
|
8,522 |
|
|
7,929 |
|
||
| Other current assets |
|
18,025 |
|
|
24,596 |
|
||
| Total current assets |
|
519,344 |
|
|
560,095 |
|
||
| Non-current assets | ||||||||
| Property, plant and equipment, net |
|
183,969 |
|
|
197,552 |
|
||
| Goodwill |
|
100,086 |
|
|
100,051 |
|
||
| Other intangible assets, net |
|
111,883 |
|
|
127,781 |
|
||
| Operating lease right-of-use assets |
|
32,591 |
|
|
18,895 |
|
||
| Long-term investments |
|
120,070 |
|
|
115,083 |
|
||
| Other non-current assets |
|
14,734 |
|
|
14,448 |
|
||
| Total non-current assets |
|
563,333 |
|
|
573,810 |
|
||
| Total assets | $ |
1,082,677 |
|
$ |
1,133,905 |
|
||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ |
48,157 |
|
$ |
46,785 |
|
||
| Accrued expenses and other current liabilities |
|
35,328 |
|
|
36,656 |
|
||
| Accrued compensation and related benefits |
|
29,428 |
|
|
33,877 |
|
||
| Deferred revenues - short-term |
|
49,788 |
|
|
52,610 |
|
||
| Operating lease liabilities - short-term |
|
6,714 |
|
|
6,498 |
|
||
| Total current liabilities |
|
169,415 |
|
|
176,426 |
|
||
| Non-current liabilities | ||||||||
| Deferred revenues - long-term |
|
19,109 |
|
|
23,655 |
|
||
| Deferred income taxes - long-term |
|
574 |
|
|
723 |
|
||
| Operating lease liabilities - long-term |
|
25,420 |
|
|
12,162 |
|
||
| Contingent consideration - long-term |
|
12,410 |
|
|
11,900 |
|
||
| Other non-current liabilities |
|
23,971 |
|
|
24,200 |
|
||
| Total non-current liabilities |
|
81,484 |
|
|
72,640 |
|
||
| Total liabilities | $ |
250,899 |
|
$ |
249,066 |
|
||
| Contingencies (see note 12) | ||||||||
| Equity | ||||||||
| Ordinary shares, NIS 0.01 nominal value, authorized 180,000 shares; 71,385 shares and 69,656 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively | $ |
200 |
|
$ |
195 |
|
||
| Additional paid-in capital |
|
3,117,626 |
|
|
3,091,649 |
|
||
| Accumulated other comprehensive loss |
|
(7,782 |
) |
|
(7,079 |
) |
||
| Accumulated deficit |
|
(2,278,266 |
) |
|
(2,199,926 |
) |
||
| Total equity |
|
831,778 |
|
|
884,839 |
|
||
| Total liabilities and equity | $ |
1,082,677 |
|
$ |
1,133,905 |
|
||
| Stratasys Ltd. | |||||||||||||||||
| Consolidated Statements of Operations | |||||||||||||||||
| (in thousands, except per share data) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|||
| unaudited | unaudited | unaudited | unaudited | ||||||||||||||
| Revenues | |||||||||||||||||
| Products | $ |
94,092 |
|
$ |
113,270 |
|
$ |
286,882 |
|
$ |
323,353 |
|
|||||
| Services |
|
45,916 |
|
|
48,863 |
|
|
135,217 |
|
|
147,908 |
|
|||||
|
|
140,008 |
|
|
162,133 |
|
|
422,099 |
|
|
471,261 |
|
||||||
| Cost of revenues | |||||||||||||||||
| Products |
|
47,707 |
|
|
59,546 |
|
|
144,220 |
|
|
168,235 |
|
|||||
| Services |
|
29,571 |
|
|
36,938 |
|
|
90,752 |
|
|
105,760 |
|
|||||
|
|
77,278 |
|
|
96,484 |
|
|
234,972 |
|
|
273,995 |
|
||||||
| Gross profit |
|
62,730 |
|
|
65,649 |
|
|
187,127 |
|
|
197,266 |
|
|||||
| Operating expenses | |||||||||||||||||
| Research and development, net |
|
24,700 |
|
|
23,567 |
|
|
74,357 |
|
|
69,347 |
|
|||||
| Selling, general and administrative |
|
63,495 |
|
|
84,880 |
|
|
188,731 |
|
|
221,173 |
|
|||||
|
|
88,195 |
|
|
108,447 |
|
|
263,088 |
|
|
290,520 |
|
||||||
| Operating loss |
|
(25,465 |
) |
|
(42,798 |
) |
|
(75,961 |
) |
|
(93,254 |
) |
|||||
| Financial income, net |
|
1,009 |
|
|
687 |
|
|
1,500 |
|
|
2,147 |
|
|||||
| Loss before income taxes |
|
(24,456 |
) |
|
(42,111 |
) |
|
(74,461 |
) |
|
(91,107 |
) |
|||||
| Income tax expenses |
|
842 |
|
|
645 |
|
|
2,320 |
|
|
5,145 |
|
|||||
| Share in losses of associated companies |
|
1,316 |
|
|
4,523 |
|
|
1,559 |
|
|
11,866 |
|
|||||
| Net loss | $ |
(26,614 |
) |
$ |
(47,279 |
) |
$ |
(78,340 |
) |
$ |
(108,118 |
) |
|||||
| Net loss per share - basic and diluted | |||||||||||||||||
| Basic | $ |
(0.37 |
) |
$ |
(0.68 |
) |
$ |
(1.11 |
) |
$ |
(1.58 |
) |
|||||
| Diluted | $ |
(0.37 |
) |
$ |
(0.68 |
) |
$ |
(1.11 |
) |
$ |
(1.58 |
) |
|||||
| Weighted average ordinary shares outstanding | |||||||||||||||||
| Basic |
|
71,271 |
|
|
69,093 |
|
|
70,670 |
|
|
68,432 |
|
|||||
| Diluted |
|
71,271 |
|
|
69,093 |
|
|
70,670 |
|
|
68,432 |
|
|||||
| Three Months Ended September 30, | ||||||||||||||||
|
|
2024 |
|
Non-GAAP |
|
2024 |
|
|
2023 |
|
Non-GAAP |
2023 |
|||||
| GAAP | Adjustments | Non-GAAP | GAAP | Adjustments | Non-GAAP | |||||||||||
| U.S. dollars and shares in thousands (except per share amounts) | ||||||||||||||||
| Gross profit (1) | $ |
62,730 |
|
$ |
6,768 |
$ |
69,498 |
|
$ |
65,649 |
|
$ |
12,617 |
$ |
78,266 |
|
| Operating income (loss) (1,2) |
|
(25,465 |
) |
$ |
25,351 |
|
(114 |
) |
|
(42,798 |
) |
$ |
46,885 |
|
4,087 |
|
| Net income (loss) (1,2,3) |
|
(26,614 |
) |
$ |
26,985 |
|
371 |
|
|
(47,279 |
) |
$ |
49,725 |
|
2,446 |
|
| Net income (loss) per diluted share to Stratasys Ltd. (4) | $ |
(0.37 |
) |
$ |
0.38 |
$ |
0.01 |
|
$ |
(0.68 |
) |
$ |
0.72 |
$ |
0.04 |
|
| (1) |
Acquired intangible assets amortization expense |
|
4,507 |
|
5,142 |
|||||||||||
| Non-cash stock-based compensation expense |
|
912 |
|
891 |
||||||||||||
| Restructuring and other related costs |
|
1,349 |
|
6,584 |
||||||||||||
|
|
6,768 |
|
12,617 |
|||||||||||||
| (2) |
Acquired intangible assets amortization expense |
|
1,124 |
|
2,599 |
|||||||||||
| Non-cash stock-based compensation expense |
|
5,657 |
|
6,588 |
||||||||||||
| Restructuring and other related costs |
|
7,585 |
|
2,360 |
||||||||||||
| Revaluation of investments |
|
— |
|
4,300 |
||||||||||||
| Contingent consideration |
|
519 |
|
265 |
||||||||||||
| Legal and other expenses |
|
3,698 |
|
18,156 |
||||||||||||
|
|
18,583 |
|
34,268 |
|||||||||||||
|
|
25,351 |
|
46,885 |
|||||||||||||
| (3) |
Corresponding tax effect and other expenses |
|
294 |
|
153 |
|||||||||||
| Equity method related expenses |
|
981 |
|
2,525 |
||||||||||||
| Finance expenses |
|
359 |
|
162 |
||||||||||||
| $ |
26,985 |
$ |
49,725 |
|||||||||||||
| (4) |
Weighted average number of ordinary shares outstanding- Diluted |
|
71,271 |
|
|
71,417 |
|
|
69,093 |
|
|
69,815 |
||||
| Nine months ended September 30, | ||||||||||||||||
|
|
2024 |
|
Non-GAAP |
|
2024 |
|
|
2023 |
|
Non-GAAP |
2023 |
|||||
| GAAP | Adjustments | Non-GAAP | GAAP | Adjustments | Non-GAAP | |||||||||||
| U.S. dollars and shares in thousands (except per share amounts) | ||||||||||||||||
| Gross profit (1) | $ |
187,127 |
|
$ |
20,082 |
$ |
207,209 |
|
$ |
197,266 |
|
$ |
29,199 |
$ |
226,465 |
|
| Operating income (loss) (1,2) |
|
(75,961 |
) |
$ |
71,450 |
|
(4,511 |
) |
|
(93,254 |
) |
$ |
103,866 |
|
10,612 |
|
| Net income (loss) attributable to Stratasys Ltd. (1,2,3) |
|
(78,340 |
) |
$ |
74,058 |
|
(4,282 |
) |
|
(108,118 |
) |
$ |
114,179 |
|
6,061 |
|
| Net income (loss) per diluted share attributable to Stratasys Ltd. (4) | $ |
(1.11 |
) |
$ |
1.05 |
$ |
(0.06 |
) |
$ |
(1.58 |
) |
$ |
1.67 |
$ |
0.09 |
|
| (1) |
Acquired intangible assets amortization expense |
|
14,080 |
|
14,157 |
|||||||||||
| Non-cash stock-based compensation expense |
|
2,874 |
|
2,822 |
||||||||||||
| Restructuring and other related costs |
|
3,128 |
|
12,220 |
||||||||||||
|
|
20,082 |
|
29,199 |
|||||||||||||
| (2) |
Acquired intangible assets amortization expense | $ |
4,694 |
$ |
7,479 |
|||||||||||
| Non-cash stock-based compensation expense | $ |
19,689 |
$ |
20,920 |
||||||||||||
| Restructuring and other related costs | $ |
12,144 |
$ |
6,626 |
||||||||||||
| Revaluation of investments | $ |
1,900 |
$ |
4,880 |
||||||||||||
| Contingent consideration | $ |
1,553 |
$ |
877 |
||||||||||||
| Legal and other expenses | $ |
11,388 |
$ |
33,885 |
||||||||||||
|
|
51,368 |
|
74,667 |
|||||||||||||
|
|
71,450 |
|
103,866 |
|||||||||||||
| (3) |
Corresponding tax effect and other expenses | $ |
732 |
$ |
3,404 |
|||||||||||
| Equity method related expenses | $ |
352 |
$ |
1,827 |
||||||||||||
| Finance expenses | $ |
1,524 |
$ |
5,081 |
||||||||||||
| $ |
74,058 |
$ |
114,179 |
|||||||||||||
| (4) |
Weighted average number of ordinary shares outstanding- Diluted |
|
70,670 |
|
|
70,670 |
|
|
68,432 |
|
|
69,046 |
||||
| Fiscal Year 2024 | ||
| (in millions, except per share data) | ||
| GAAP net loss | ($105) to ($90) | |
| Adjustments | ||
| Stock-based compensation expense | $30 to $32 | |
| Intangible assets amortization expense | $25 to $27 | |
| Reorganization and other | $39 to $45 | |
| Tax expense (benefit) related to Non-GAAP adjustments | $2 to $3 | |
| Non-GAAP net income | $2.1 to $5.0 | |
| GAAP loss per share | ($1.48) to ($1.27) | |
| Non-GAAP diluted earnings per share | $0.03 to $0.07 |
