Stratasys (SSYS, Financial) announced its financial results for the first quarter, reporting a revenue of $136.05 million, which exceeded analysts' expectations of $134.11 million. The company highlighted another period of net profitability on an adjusted basis, alongside a positive cash flow from operations.
The CEO of Stratasys, Yoav Zeif, noted the sequential increase of 7% in recurring revenue from Consumables, indicating a robust utilization of existing systems by clients. This growth is attributed to the company's strategic focus on streamlining operations, which is successfully enhancing profitability. Stratasys is well-positioned to improve profitability further while keeping the capacity to expand as capital expenditures recover.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for Stratasys Ltd (SSYS, Financial) is $12.25 with a high estimate of $15.00 and a low estimate of $7.00. The average target implies an upside of 26.03% from the current price of $9.72. More detailed estimate data can be found on the Stratasys Ltd (SSYS) Forecast page.
Based on the consensus recommendation from 5 brokerage firms, Stratasys Ltd's (SSYS, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Stratasys Ltd (SSYS, Financial) in one year is $11.37, suggesting a upside of 16.98% from the current price of $9.72. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Stratasys Ltd (SSYS) Summary page.
SSYS Key Business Developments
Release Date: March 05, 2025
- Revenue (Q4 2024): $150.4 million, down 3.8% year-over-year.
- Product Revenue (Q4 2024): $105.1 million, down 4.8% year-over-year.
- Systems Revenue (Q4 2024): $46.7 million, down 1.5% year-over-year.
- Consumable Revenue (Q4 2024): $58.4 million, down 7.3% year-over-year.
- Service Revenue (Q4 2024): $45.3 million, relatively flat year-over-year.
- Adjusted Gross Margin (2024): 49.2%, up 100 basis points from 2023.
- Adjusted EBITDA (Q4 2024): $14.5 million, 9.6% margin.
- Non-GAAP Net Income (Q4 2024): $8.5 million, or $0.12 per diluted share.
- Cash and Equivalents (End of Q4 2024): $150.7 million, with no debt.
- Full-Year Revenue (2024): $572.5 million, down 8.8% year-over-year.
- Non-GAAP Operating Income (Q4 2024): $9.4 million, compared to $2 million in Q4 2023.
- Non-GAAP Operating Expenses (Q4 2024): $65.2 million, down from $74.3 million in Q4 2023.
- Cash Generated from Operations (Q4 2024): $7.4 million, compared to a use of $7.7 million in Q4 2023.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Stratasys Ltd (SSYS, Financial) successfully executed a rightsizing initiative, enhancing profitability and cash flow despite macroeconomic challenges.
- The company increased its revenue share from manufacturing to 36% in 2024, up from 34% in 2023, indicating a strategic focus on full-scale production applications.
- Stratasys Ltd (SSYS) maintained a strong balance sheet with $150.7 million in cash and no debt, providing stability and growth opportunities.
- The launch of new products, such as the Fortus FDC filament dryer and polycarbonate ESD material, demonstrates ongoing innovation and expansion of capabilities.
- Partnerships with major companies like ArcelorMittal and NASCAR highlight the growing adoption and effectiveness of Stratasys Ltd (SSYS)'s solutions in traditional manufacturing environments.
Negative Points
- Consolidated revenue for 2024 declined by 8.8% compared to 2023, reflecting ongoing challenges in the market.
- Product revenue fell by 4.8% in the fourth quarter, with systems revenue declining due to constrained capital budgets impacting customer buying behaviors.
- Service revenue remained relatively flat, indicating limited growth in this segment.
- The company reported a GAAP net loss of $120.3 million for the year, partly due to a non-cash impairment charge related to its investment in Ultimaker.
- The sales cycle has increased over the past 2.5 years, adding uncertainty to future revenue projections.
