Stratasys achieves highest Q3 revenue in 7 years

Stratasys released its Q3 2022 results, announcing the company’s highest third-quarter revenue in seven years, as well as five consecutive quarters of positive earnings. Although revenues increased by only a symbolic +2% in percentage terms, Stratasys generated a total of $162.2 million in revenue. This represents a slight increase from the $159.0 million generated in the third quarter of 2021, but a decrease of -3.1% compared to the second quarter of the year. The company attributes its annual revenue growth to strong demand for its 3D printers, but admits that lengthy sales cycles and delays in sourcing supplies weighed on quarterly results.

Stratasys’ largest source of revenue continues to be its product division, bringing in $112.1 million, an increase of +2.9% over the third quarter of last year. At the same time, the CEO of the company – Dr. Yoav Zeif said the increase was higher and amounted to a de facto +18.9%, after taking into account the sale of other entities and changes in exchange rates.

Revenue generated by the consumables division fell -1.4% year-on-year to $55.8 million. While this business grew +3.4% over the same period, measured excluding the impact of divestments and on a constant currency basis, it suffered from the broader economic slowdown. The Services division had revenues of $50.1 million, which was equal to Q3 2021 and down -1.6% compared to Q2 2022.

Due to current headwinds, including global supply chain costs, rising interest rates, currency risk and inflation, Stratasys has revised its 2022 forecast to $648-652 million. This includes a $17 million impact from the disposal of Stratasys MakerBot and a $13 million revenue that will miss the company due to delays in purchases amid macroeconomic uncertainty.

In the third quarter, Stratasys spent $18.4 million on its operations, reflecting an investment in inventory to better deal with supply chain issues. As the company’s installation base continues to grow, Zeif says its wider range of consumables will also benefit, not only in terms of broadening the use of the technology, but also increasing profitability.

Source: www.stratasys.com