Stratasys records another strong quarter in 2022, but is toning down investor expectations over potential parts supply problems

The leading manufacturer of 3D printers in the world – Stratasys announced that its revenues in Q2 2022 increased by +13.3% and the demand for its machines remains at a very high level. In the second quarter of this year, the company generated revenues of $ 166.6 million, almost +$20 million more than in the same period in 2021. This is the best result since the time before the C19 pandemic. Nevertheless, Stratasys cut its forecasts for fiscal 2022 by $-10 million due to “unexpected and unfavorable currency rates” as well as the need to increase inventory for parts for manufacturing and servicing machinery due to major disruptions in the supply chain area. This information caused the company’s share price to drop by -6%.

The company’s second-quarter revenue, which was the highest in four years, was mainly due to sales of 3D printers, which increased by +29.2% year-on-year. The merit of this state of affairs is the sale of the newly introduced powder 3D printer – H350 and photopolymer 3D printers produced by the company Origin One, acquired last year.

As in the previous quarter, when Stratasys revenues increased by +22%, the revenue growth in Q2 2022 was largely driven by strong demand for 3D printers. Machine sales generated $ 115.7 million in revenue, an increase of +15.4% year-on-year. As a consequence, the revenues from consumables also increased, which translated into an increase by +3.9%. The 3D printing services department generated USD 50.9 million in revenue, i.e. +9% compared to a year ago.

Entering the second half of 2022, Stratasys expects revenue growth to be 6% -7% higher than in the first half of 2022, and fourth-quarter earnings will grow at a faster pace than in the third. However, given the ongoing costs of logistics and materials, the company predicts that currency fluctuations will equally affect financial results in the third and fourth quarters.

Stratasys expects problems with parts logistics in the third quarter of 2022, in which its gross margins will be relatively flat compared to the third quarter of 2021. Describing the current supply chain situation as “war”, the company’s CEO Dr. Yoav Zeif said the company has spent more than $ 20 million in additional inventory to ensure it can meet future demand for machinery.

During a teleconference with investors, Zeif also stated that the merger of MakerBot and Ultimaker should not significantly affect the company’s finances, he also completely ignored the issue of the recent confusion with the purchase of 12% of shares in the company by Nano Dimension, as well as actions taken against the so-called hostile takeover and launch of a control plan, implementing the so-called the “poison pill” tactic.

Source: www.stratasys.com