• Consolidated Revenue: $140 million, down from $162.1 million in Q3 2023.

• Product Revenue: $94.1 million, compared to $113.2 million in the same period last year.

• System Revenue: $31.7 million, down from $51.5 million in Q3 2023.

• Consumable Revenue: Grew 1% to $62.4 million year-over-year.

• Service Revenue: $45.9 million, compared to $48.9 million in Q3 2023.

• GAAP Gross Margin: 44.8%, up from 40.5% in Q3 2023.

• Non-GAAP Gross Margin: 49.6%, up from 48.3% in Q3 2023.

• GAAP Operating Expenses: $88.2 million, down from $108.4 million in Q3 2023.

• Non-GAAP Operating Expenses: $69.6 million, down from $74.2 million in Q3 2023.

• GAAP Net Loss: $26.6 million or $0.37 per diluted share, compared to a net loss of $47.3 million or $0.68 per diluted share in Q3 2023.

• Non-GAAP Net Income: $0.4 million or $0.01 per diluted share, compared to $2.4 million or $0.04 per diluted share in Q3 2023.

• Adjusted EBITDA: $5.1 million, compared to $9.8 million in Q3 2023.

• Cash Utilization: $4.5 million used in operations, compared to $12.7 million in Q3 2023.

• Cash and Equivalents: $144 million at the end of the quarter.

• 2024 Revenue Outlook: $570 million to $580 million.

• 2024 Gross Margin Outlook: 49% to 49.2%.

• 2024 Operating Expenses Outlook: $276 million to $278 million.

• 2024 Non-GAAP Net Income Outlook: $2.1 million to $5 million or $0.03 to $0.07 per diluted share.

• 2024 Adjusted EBITDA Outlook: $25 million to $28 million.

• 2024 Capital Expenditures Outlook: $15 million to $20 million.

• Warning! GuruFocus has detected 4 Warning Signs with SSYS.

Release Date: November 13, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Stratasys Ltd (NASDAQ:SSYS) returned to profitability on an adjusted basis in Q3 2024, demonstrating effective cost management and strategic execution.

• The company achieved its eighth consecutive quarter of year-over-year growth in consumable sales, highlighting the stability of its recurring revenue model.

• Stratasys Ltd (NASDAQ:SSYS) launched several new products, including the F3300 industrial platform and Origin 2 printer, which have generated significant market interest.

• The company has implemented a $50 million share repurchase plan, reflecting a commitment to returning value to shareholders.

• Stratasys Ltd (NASDAQ:SSYS) is ahead of schedule in its restructuring plan, targeting $40 million in annual cost savings starting in Q1 2025.

Negative Points

• Stratasys Ltd (NASDAQ:SSYS) experienced a year-over-year decline in consolidated revenue, primarily due to softness in capital equipment spending.

• Product revenue decreased significantly, with system revenue showing a notable decline compared to the previous year.

• Despite improvements, the company still reported a GAAP net loss for the quarter.

• The macroeconomic environment, including high interest rates, continues to impact customer investment in new technologies.

• The company faces challenges in accelerating customer adoption due to prolonged decision-making cycles in the current economic climate.