Stratasys ( SSYS Quick Quote SSYS - Free Report) reported second-quarter 2022 non-GAAP earnings of 2 cents per share, which compared favorably with the Zacks Consensus Estimate of a loss of 3 cents per share. The bottom line improved significantly from the year-ago quarter’s loss of 2 cents per share.
The company’s revenues jumped 13.3% year over year to $166.7 million and surpassed the consensus mark of $166 million. This year-over-year top-line growth was driven by strength in the Systems performance.
Quarter in Detail
Segment-wise, Product revenues were up 15.4% from the year-ago quarter to $115.7 million. Within Product revenues, System revenues climbed 29.2%, while Consumables revenues jumped 3.9% year over year.
Revenues from Services increased 9% year on year to $50.9 million. Within Service revenues, customer support revenues advanced 9.1% year over year.
Stratasys’ non-GAAP gross profit increased 9.4% from the year-ago period to $79.3 million. Consequently, non-GAAP gross margin expanded 10 basis points (bps) to 47.6%.
Non-GAAP operating expenses flared up 6.8% year on year to $77.4 million. As a percentage of revenues, it contracted 290 bps to 46.4%. Non-GAAP operating income came in at $1.9 million against the year-ago quarter’s loss of $2.6 million. The margin rose by 300 bps to 1.2%.
Adjusted EBITDA soared 111.4% to $7.4 million.
Balance Sheet & Other Details
Stratasys exited the second quarter with cash and short-term deposits of $438.3 million compared with the $475.6 million witnessed at the end of the previous quarter.
As of Jun 30, 2022, there was no long-term debt.
During the April-June quarter, the company utilized an operating cash flow of $22.8 million.
For 2022, Stratasys’ management now projects revenues between $675 million and $685 million, down from the earlier estimate of $685-$695 million. SSYS still anticipates non-GAAP earnings in the range of 14 cents to 19 cents per share in 2022.
Stratasys estimates 2022 operating expenses to increase by $18-$23 million from the 2021 level, primarily due to the ongoing investments in new products associated with higher revenues.
For 2022, Stratasys continues to expect the non-GAAP operating margin to be slightly above 2%. Adjusted EBITDA is still forecast in the band of $38 million to $41 million.
Zacks Rank & Key Picks
Stratasys currently carries a Zacks Rank #3 (Hold). Shares of SSYS have declined 7.8% in the past year.
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