Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries CORRECTING and REPLACING Stratasys Releases Third Quarter 2023 Financial Results By: Stratasys Ltd. via Business Wire November 16, 2023 at 08:39 AM EST Revenue of $162.1 million, essentially flat with third quarter 2022, up 3.3% at constant currency excluding MakerBot and Stratasys Direct divestments Record-level recurring revenue for consumables reflects strong printer utilization GAAP net loss of $47.3 million, or $0.68 per diluted share, and non-GAAP net income of $2.4 million, or $0.04 per diluted share Ninth straight quarter of adjusted profitability Updating 2023 outlook First sentence under "Stratasys Ltd. Third Quarter 2023 Webcast and Conference Call Details" should read: The Company plans to webcast its conference call to discuss its third quarter 2023 financial results on Thursday, November 16, 2023, at 8:30 a.m. (ET). The updated release reads: STRATASYS RELEASES THIRD QUARTER 2023 FINANCIAL RESULTS Revenue of $162.1 million, essentially flat with third quarter 2022, up 3.3% at constant currency excluding MakerBot and Stratasys Direct divestments Record-level recurring revenue for consumables reflects strong printer utilization GAAP net loss of $47.3 million, or $0.68 per diluted share, and non-GAAP net income of $2.4 million, or $0.04 per diluted share Ninth straight quarter of adjusted profitability Updating 2023 outlook Stratasys Ltd. (Nasdaq: SSYS) (“Stratasys” or the “Company”), a leader in polymer 3D printing solutions, today announced financial results for the third quarter 2023. Third Quarter 2023 Financial Results Compared to Third Quarter 2022: Revenue of $162.1 million compared to $162.2 million. GAAP gross margin of 40.5%, compared to 43.6%. Non-GAAP gross margin of 48.3%, compared to 48.5%. GAAP operating loss of $42.8 million, which includes $17.3 million of costs related to merger and acquisition activities, defense against hostile tender offer, proxy contest and related professional fees, compared to an operating loss of $15.6 million. Non-GAAP operating income of $4.1 million, compared to $4.5 million. GAAP net loss of $47.3 million, or $0.68 per diluted share, compared to net income of $18.7 million, or $0.28 per diluted share, which net income in Q3 2022 included a one-time $39.1M gain from the MakerBot deconsolidation. Non-GAAP net income of $2.4 million, or $0.04 per diluted share, compared to $3.3 million, or $0.05 per diluted share. Adjusted EBITDA of $9.8 million, compared to $9.9 million. Cash used in operations of $12.7 million, compared to $18.4 million in the year-ago quarter, due to the costs related to mergers and acquisitions activities, defense against a hostile tender offer, a proxy contest and related professional fees. Excluding these one-time payments, operating cash flow for the third quarter of 2023 would have been positive. Dr. Yoav Zeif, Stratasys’ Chief Executive Officer stated, “During the third quarter, Stratasys delivered solid operating and financial results, highlighted by record recurring revenues from consumables, reflecting solid printer utilization. Our relentless focus on execution allowed us to deliver comparable results to the year-ago quarter for revenues, non-GAAP margins and adjusted EBITDA, as well as our ninth consecutive quarter of positive adjusted earnings per share.” Dr. Zeif continued, “We want to acknowledge the tremendous support we have received from partners, customers, investors and our industry since the tragic events in Israel. We especially want to thank our employees who have performed in an exemplary fashion during these challenging times. Our operations have been fully functional, allowing us to continue delivering industry-leading results. We have streamlined and focused our business, while simultaneously rolling out new and exciting innovations that will expand our leadership position across systems, materials, software and customer service. Our recently introduced F3300 is the latest step in that continued evolution to unlock manufacturing benefits for our customers. Our maturity as a company, financial discipline and resilient business model position us well to deliver exceptional value for many years to come.” 2023 Financial Outlook: Based on the divestitures in Stratasys Direct, as well as macroeconomic uncertainty in its end markets, the Company is updating its revenue guidance and its outlook for the remainder of 2023 as follows: Full year revenue of $620 million to $630 million. Full year non-GAAP gross margins of 48.0% to 49.0%. Full year non-GAAP operating expenses in a range of $288 million to $290 million. Full year non-GAAP operating margins in a range of 2.0% to 2.5%. GAAP net loss of $117 million to $104 million, or ($1.70) to ($1.51) per diluted share. Includes one-time extraordinary costs associated with defense of tender offer and proxy contest, and merger-related activities. Non-GAAP net income of $6 million to $9 million, or $0.10 to $0.14 per diluted share. Adjusted EBITDA of $35 million to $38 million. Capital expenditures of $15 million to $20 million. 2023 non-GAAP earnings guidance excludes $112 million to $121 million of expenses attributable to projected amortization of intangible assets, share-based compensation expense, and reorganization and other expenses (including the one-time extraordinary costs referenced above). 2023 non-GAAP guidance includes tax adjustments of $2 million to $3 million on the above non-GAAP items. Appropriate reconciliations between GAAP and non-GAAP financial measures are provided in a table at the end of our press release and slide presentation, with itemized detail concerning the non-GAAP financial measures. Stratasys Ltd. Third Quarter 2023 Webcast and Conference Call Details The Company plans to webcast its conference call to discuss its third quarter 2023 financial results on Thursday, November 16, 2023, at 8:30 a.m. (ET). The investor conference call will be available via live webcast on the Stratasys Web site at investors.stratasys.com, or directly at the following web address: https://event.choruscall.com/mediaframe/webcast.html?webcastid=bSk6aoYV To participate by telephone, the U.S. toll-free number is 877-407-0619 and the international dial-in is +1-412-902-1012. Investors are advised to dial into the call at least ten minutes prior to the call to register. The webcast will be available for six months at investors.stratasys.com, or by accessing the above-provided web address. Stratasys is leading the global shift to additive manufacturing with innovative 3D printing solutions for industries such as aerospace, automotive, consumer products, healthcare, fashion and education. Through smart and connected 3D printers, polymer materials, a software ecosystem, and parts on demand, Stratasys solutions deliver competitive advantages at every stage in the product value chain. The world’s leading organizations turn to Stratasys to transform product design, bring agility to manufacturing and supply chains, and improve patient care. To learn more about Stratasys, visit www.stratasys.com, the Stratasys blog, X.com (formerly Twitter), LinkedIn, or Facebook. Stratasys reserves the right to utilize any of the foregoing social media platforms, including the Company’s websites, to share material, non-public information pursuant to the SEC’s Regulation FD. To the extent necessary and mandated by applicable law, Stratasys will also include such information in its public disclosure filings. Stratasys is a registered trademark and the Stratasys signet is a trademark of Stratasys Ltd. and/or its subsidiaries or affiliates. All other trademarks are the property of their respective owners. Cautionary Statement Regarding Forward-Looking Statements The statements in this press release regarding Stratasys' strategy, and the statements regarding its projected future financial performance, including the financial guidance concerning its expected results for 2023 and beyond, are forward-looking statements reflecting management's current expectations and beliefs. These forward-looking statements are based on current information that is, by its nature, subject to rapid and even abrupt change. Due to risks and uncertainties associated with Stratasys' business, actual results could differ materially from those projected or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to: the degree of our success at introducing new or improved products and solutions that gain market share; the degree of growth of the 3D printing market generally; the impact of potential shifts in the prices or margins of the products that we sell or services that we provide, including due to a shift towards lower margin products or services; the impact of competition and new technologies; the outcome of our board’s comprehensive process to explore strategic alternatives for our company; the degree to which our company’s operations remain resistant to potential adverse effects of Israel’s war against the terrorist organization Hamas; potential further charges against earnings that we could be required to take due to impairment of additional goodwill or other intangible assets; the extent of our success at successfully consummating and integrating into our existing business acquisitions or investments in new businesses, technologies, products or services; the global macro-economic environment, including headwinds caused by inflation, high interest rates, unfavorable currency exchange rates and potential recessionary conditions; potential changes in our management and board of directors; global market, political and economic conditions, and in the countries in which we operate in particular; costs and potential liability relating to litigation and regulatory proceedings; risks related to infringement of our intellectual property rights by others or infringement of others' intellectual property rights by us; the extent of our success at maintaining our liquidity and financing our operations and capital needs; the impact of tax regulations on our results of operations and financial condition; and those additional factors referred to in Item 3.D “Key Information - Risk Factors”, Item 4, “Information on the Company”, Item 5, “Operating and Financial Review and Prospects,” and all other parts of our Annual Report on Form 20-F for the year ended December 31, 2022, which we filed with the U.S. Securities and Exchange Commission, or SEC, on March 3, 2023 (the “2022 Annual Report”). Readers are urged to carefully review and consider the various disclosures made throughout our 2022 Annual Report and the Report of Foreign Private Issuer on Form 6-K that attaches Stratasys’ unaudited, condensed consolidated financial statements and its review of its results of operations and financial condition for the third quarter and first nine months of 2023, which will be furnished to the SEC on or about the date hereof, and our other reports filed with or furnished to the SEC, which are designed to advise interested parties of the risks and factors that may affect our business, financial condition, results of operations and prospects. Any guidance provided, and other forward-looking statements made, in this press release are provided or made (as applicable) as of the date hereof, and Stratasys undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Use of Non-GAAP Financial Measures The non-GAAP data included herein, which excludes certain items as described below, are non-GAAP financial measures. Our management believes that these non-GAAP financial measures are useful information for investors and shareholders of our company in gauging our results of operations (i) on an ongoing basis after excluding mergers, acquisitions and divestments related expense or gains and reorganization-related charges or gains, and legal provisions and (ii) excluding non-cash items such as stock-based compensation expenses, acquired intangible assets amortization, including intangible assets amortization related to equity method investments, impairment of long-lived assets and goodwill, revaluation of our investments and the corresponding tax effect of those items. These non-GAAP adjustments either do not reflect actual cash outlays that impact our liquidity and our financial condition or have a non-recurring impact on the statement of operations, as assessed by management. These non-GAAP financial measures are presented to permit investors to more fully understand how management assesses our performance for internal planning and forecasting purposes. The limitations of using these non-GAAP financial measures as performance measures are that they provide a view of our results of operations without including all items indicated above during a period, which may not provide a comparable view of our performance to other companies in our industry. Investors and other readers should consider non-GAAP measures only as supplements to, not as substitutes for or as superior measures to, the measures of financial performance prepared in accordance with GAAP. Reconciliation between results on a GAAP and non-GAAP basis is provided in a table below. Stratasys Ltd. Consolidated Balance Sheets (Unaudited) (in thousands, except share data) September 30, December 31, 2023 2022 ASSETS Current assets Cash and cash equivalents $ 104,563 $ 150,470 Short-term deposits 80,000 177,367 Accounts receivable, net of allowance for credit losses of $1.4 million and $0.9 million as of September 30, 2023 and December 31, 2022, respectively 164,075 144,739 Inventories 197,420 194,054 Prepaid expenses 9,732 5,767 Other current assets 27,534 27,823 Total current assets 583,324 700,220 Non-current assets Property, plant and equipment, net 198,272 195,063 Goodwill 90,187 64,953 Other intangible assets, net 141,201 121,402 Operating lease right-of-use assets 19,533 18,122 Long-term investments 129,738 141,610 Other non-current assets 19,510 18,420 Total non-current assets 598,441 559,570 Total assets $ 1,181,765 $ 1,259,790 LIABILITIES AND EQUITY Current liabilities Accounts payable $ 60,845 $ 72,921 Accrued expenses and other current liabilities 49,817 45,912 Accrued compensation and related benefits 31,502 34,432 Deferred revenues - short term 51,751 50,220 Operating lease liabilities - short term 6,511 7,169 Total current liabilities 200,426 210,654 Non-current liabilities Deferred revenues - long term 28,559 25,214 Deferred income taxes - long term 6,889 5,638 Operating lease liabilities - long term 12,692 10,670 Contingent consideration 25,884 23,707 Other non-current liabilities 24,172 24,475 Total non-current liabilities 98,196 89,704 Total liabilities 298,622 300,358 Equity Ordinary shares, NIS 0.01 nominal value, authorized 180,000 thousands shares; 69,165 shares and 67,086 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively 194 187 Additional paid-in capital 3,080,877 3,048,915 Accumulated other comprehensive loss (12,958 ) (12,818 ) Accumulated deficit (2,184,970 ) (2,076,852 ) Total equity 883,143 959,432 Total liabilities and equity $ 1,181,765 $ 1,259,790 Stratasys Ltd. Consolidated Statements of Operations (in thousands, except per share data) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (unaudited) (unaudited) (unaudited) (unaudited) Net sales Products $ 113,270 $ 112,133 $ 323,353 $ 340,927 Services 48,863 50,059 147,908 151,297 162,133 162,192 471,261 492,224 Cost of sales Products 59,546 55,916 168,235 176,421 Services 36,938 35,527 105,760 107,984 96,484 91,443 273,995 284,405 Gross profit 65,649 70,749 197,266 207,819 Operating expenses Research and development, net 23,567 23,145 69,347 71,489 Selling, general and administrative 84,880 63,230 221,173 195,085 108,447 86,375 290,520 266,574 Operating loss (42,798 ) (15,626 ) (93,254 ) (58,755 ) Gain from deconsolidation of subsidiary - 39,136 - 39,136 Financial income (expenses), net 687 452 2,147 (2,080 ) Income (loss) before income taxes (42,111 ) 23,962 (91,107 ) (21,699 ) Income tax expenses (645 ) (3,298 ) (5,145 ) (2,796 ) Share in losses of associated companies (4,523 ) (1,915 ) (11,866 ) (2,089 ) Net income (loss) $ (47,279 ) $ 18,749 $ (108,118 ) $ (26,584 ) Net income (loss) per share Basic $ (0.68 ) $ 0.28 $ (1.58 ) $ (0.40 ) Diluted $ (0.68 ) $ 0.28 $ (1.58 ) $ (0.40 ) Weighted average ordinary shares outstanding Basic 69,093 66,772 68,432 66,356 Diluted 69,093 67,038 68,432 66,356 Three Months Ended September 30, 2023 Non-GAAP 2023 2022 Non-GAAP 2022 GAAP Adjustments Non-GAAP GAAP Adjustments Non-GAAP U.S. dollars and shares in thousands (except per share amounts) Gross profit (1) $ 65,649 $ 12,617 $ 78,266 $ 70,749 $ 7,990 $ 78,739 Operating income (loss) (1,2) (42,798 ) 46,885 $ 4,087 (15,626 ) 20,149 4,523 Net income (loss) (1,2,3) (47,279 ) 49,725 $ 2,446 18,749 (15,423 ) 3,326 Net income (loss) per diluted share (4) $ (0.68 ) $ 0.72 $ 0.04 $ 0.28 $ (0.23 ) $ 0.05 (1) Acquired intangible assets amortization expense 5,142 6,941 Non-cash stock-based compensation expense 891 1,061 Restructuring and other related costs 6,584 (12 ) 12,617 7,990 (2) Acquired intangible assets amortization expense 2,599 2,138 Non-cash stock-based compensation expense 6,588 6,330 Restructuring and other related costs 2,360 1,309 Revaluation of investments 4,300 901 Contingent consideration 265 394 Legal, consulting and other expenses 18,156 1,087 34,269 12,159 46,885 20,149 (3) Corresponding tax effect 153 2,993 Finance expenses 162 - Equity method related amortization and other 2,525 571 Gain from deconsolidation of Subsidiary (39,136 ) $ 49,725 $ (15,423 ) (4) Weighted average number of ordinaryshares outstanding- Diluted 69,093 69,815 67,038 67,038 Nine Months Ended September 30, 2023 Non-GAAP 2023 2022 Non-GAAP 2022 GAAP Adjustments Non-GAAP GAAP Adjustments Non-GAAP U.S. dollars and shares in thousands (except per share amounts) Gross profit (1) $ 197,266 $ 29,199 $ 226,465 $ 207,819 $ 27,593 $ 235,412 Operating income (loss) (1,2) (93,254 ) 103,866 $ 10,612 (58,755 ) 67,235 $ 8,480 Net income (loss) (1,2,3) (108,118 ) 114,179 $ 6,061 (26,584 ) 32,295 $ 5,711 Net income (loss) per diluted share (4) $ (1.58 ) $ 1.67 $ 0.09 $ (0.40 ) $ 0.49 $ 0.09 (1) Acquired intangible assets amortization expense 14,157 20,861 Non-cash stock-based compensation expense 2,822 3,041 Restructuring and other related costs 12,220 3,691 29,199 27,593 (2) Acquired intangible assets amortization expense 7,479 6,581 Non-cash stock-based compensation expense 20,920 21,714 Restructuring and other related costs 6,626 1,864 Revaluation of investments 4,880 3,217 Contingent consideration 877 1,197 Legal, consulting and other expenses 33,885 5,069 74,667 39,642 103,866 67,235 (3) Corresponding tax effect 3,404 3,219 Finance expenses 1,827 571 Equity method related amortization and other 5,081 406 Gain from deconsolidation of Subsidiary - (39,136 ) $ 114,179 $ 32,295 (4) Weighted average number of ordinaryshares outstanding- Diluted 68,432 69,046 66,356 67,007 View source version on businesswire.com: https://www.businesswire.com/news/home/20231116140798/en/Contacts Yonah Lloyd CCO & VP Investor Relations Yonah.Lloyd@stratasys.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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CORRECTING and REPLACING Stratasys Releases Third Quarter 2023 Financial Results By: Stratasys Ltd. via Business Wire November 16, 2023 at 08:39 AM EST Revenue of $162.1 million, essentially flat with third quarter 2022, up 3.3% at constant currency excluding MakerBot and Stratasys Direct divestments Record-level recurring revenue for consumables reflects strong printer utilization GAAP net loss of $47.3 million, or $0.68 per diluted share, and non-GAAP net income of $2.4 million, or $0.04 per diluted share Ninth straight quarter of adjusted profitability Updating 2023 outlook First sentence under "Stratasys Ltd. Third Quarter 2023 Webcast and Conference Call Details" should read: The Company plans to webcast its conference call to discuss its third quarter 2023 financial results on Thursday, November 16, 2023, at 8:30 a.m. (ET). The updated release reads: STRATASYS RELEASES THIRD QUARTER 2023 FINANCIAL RESULTS Revenue of $162.1 million, essentially flat with third quarter 2022, up 3.3% at constant currency excluding MakerBot and Stratasys Direct divestments Record-level recurring revenue for consumables reflects strong printer utilization GAAP net loss of $47.3 million, or $0.68 per diluted share, and non-GAAP net income of $2.4 million, or $0.04 per diluted share Ninth straight quarter of adjusted profitability Updating 2023 outlook Stratasys Ltd. (Nasdaq: SSYS) (“Stratasys” or the “Company”), a leader in polymer 3D printing solutions, today announced financial results for the third quarter 2023. Third Quarter 2023 Financial Results Compared to Third Quarter 2022: Revenue of $162.1 million compared to $162.2 million. GAAP gross margin of 40.5%, compared to 43.6%. Non-GAAP gross margin of 48.3%, compared to 48.5%. GAAP operating loss of $42.8 million, which includes $17.3 million of costs related to merger and acquisition activities, defense against hostile tender offer, proxy contest and related professional fees, compared to an operating loss of $15.6 million. Non-GAAP operating income of $4.1 million, compared to $4.5 million. GAAP net loss of $47.3 million, or $0.68 per diluted share, compared to net income of $18.7 million, or $0.28 per diluted share, which net income in Q3 2022 included a one-time $39.1M gain from the MakerBot deconsolidation. Non-GAAP net income of $2.4 million, or $0.04 per diluted share, compared to $3.3 million, or $0.05 per diluted share. Adjusted EBITDA of $9.8 million, compared to $9.9 million. Cash used in operations of $12.7 million, compared to $18.4 million in the year-ago quarter, due to the costs related to mergers and acquisitions activities, defense against a hostile tender offer, a proxy contest and related professional fees. Excluding these one-time payments, operating cash flow for the third quarter of 2023 would have been positive. Dr. Yoav Zeif, Stratasys’ Chief Executive Officer stated, “During the third quarter, Stratasys delivered solid operating and financial results, highlighted by record recurring revenues from consumables, reflecting solid printer utilization. Our relentless focus on execution allowed us to deliver comparable results to the year-ago quarter for revenues, non-GAAP margins and adjusted EBITDA, as well as our ninth consecutive quarter of positive adjusted earnings per share.” Dr. Zeif continued, “We want to acknowledge the tremendous support we have received from partners, customers, investors and our industry since the tragic events in Israel. We especially want to thank our employees who have performed in an exemplary fashion during these challenging times. Our operations have been fully functional, allowing us to continue delivering industry-leading results. We have streamlined and focused our business, while simultaneously rolling out new and exciting innovations that will expand our leadership position across systems, materials, software and customer service. Our recently introduced F3300 is the latest step in that continued evolution to unlock manufacturing benefits for our customers. Our maturity as a company, financial discipline and resilient business model position us well to deliver exceptional value for many years to come.” 2023 Financial Outlook: Based on the divestitures in Stratasys Direct, as well as macroeconomic uncertainty in its end markets, the Company is updating its revenue guidance and its outlook for the remainder of 2023 as follows: Full year revenue of $620 million to $630 million. Full year non-GAAP gross margins of 48.0% to 49.0%. Full year non-GAAP operating expenses in a range of $288 million to $290 million. Full year non-GAAP operating margins in a range of 2.0% to 2.5%. GAAP net loss of $117 million to $104 million, or ($1.70) to ($1.51) per diluted share. Includes one-time extraordinary costs associated with defense of tender offer and proxy contest, and merger-related activities. Non-GAAP net income of $6 million to $9 million, or $0.10 to $0.14 per diluted share. Adjusted EBITDA of $35 million to $38 million. Capital expenditures of $15 million to $20 million. 2023 non-GAAP earnings guidance excludes $112 million to $121 million of expenses attributable to projected amortization of intangible assets, share-based compensation expense, and reorganization and other expenses (including the one-time extraordinary costs referenced above). 2023 non-GAAP guidance includes tax adjustments of $2 million to $3 million on the above non-GAAP items. Appropriate reconciliations between GAAP and non-GAAP financial measures are provided in a table at the end of our press release and slide presentation, with itemized detail concerning the non-GAAP financial measures. Stratasys Ltd. Third Quarter 2023 Webcast and Conference Call Details The Company plans to webcast its conference call to discuss its third quarter 2023 financial results on Thursday, November 16, 2023, at 8:30 a.m. (ET). The investor conference call will be available via live webcast on the Stratasys Web site at investors.stratasys.com, or directly at the following web address: https://event.choruscall.com/mediaframe/webcast.html?webcastid=bSk6aoYV To participate by telephone, the U.S. toll-free number is 877-407-0619 and the international dial-in is +1-412-902-1012. Investors are advised to dial into the call at least ten minutes prior to the call to register. The webcast will be available for six months at investors.stratasys.com, or by accessing the above-provided web address. Stratasys is leading the global shift to additive manufacturing with innovative 3D printing solutions for industries such as aerospace, automotive, consumer products, healthcare, fashion and education. Through smart and connected 3D printers, polymer materials, a software ecosystem, and parts on demand, Stratasys solutions deliver competitive advantages at every stage in the product value chain. The world’s leading organizations turn to Stratasys to transform product design, bring agility to manufacturing and supply chains, and improve patient care. To learn more about Stratasys, visit www.stratasys.com, the Stratasys blog, X.com (formerly Twitter), LinkedIn, or Facebook. Stratasys reserves the right to utilize any of the foregoing social media platforms, including the Company’s websites, to share material, non-public information pursuant to the SEC’s Regulation FD. To the extent necessary and mandated by applicable law, Stratasys will also include such information in its public disclosure filings. Stratasys is a registered trademark and the Stratasys signet is a trademark of Stratasys Ltd. and/or its subsidiaries or affiliates. All other trademarks are the property of their respective owners. Cautionary Statement Regarding Forward-Looking Statements The statements in this press release regarding Stratasys' strategy, and the statements regarding its projected future financial performance, including the financial guidance concerning its expected results for 2023 and beyond, are forward-looking statements reflecting management's current expectations and beliefs. These forward-looking statements are based on current information that is, by its nature, subject to rapid and even abrupt change. Due to risks and uncertainties associated with Stratasys' business, actual results could differ materially from those projected or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to: the degree of our success at introducing new or improved products and solutions that gain market share; the degree of growth of the 3D printing market generally; the impact of potential shifts in the prices or margins of the products that we sell or services that we provide, including due to a shift towards lower margin products or services; the impact of competition and new technologies; the outcome of our board’s comprehensive process to explore strategic alternatives for our company; the degree to which our company’s operations remain resistant to potential adverse effects of Israel’s war against the terrorist organization Hamas; potential further charges against earnings that we could be required to take due to impairment of additional goodwill or other intangible assets; the extent of our success at successfully consummating and integrating into our existing business acquisitions or investments in new businesses, technologies, products or services; the global macro-economic environment, including headwinds caused by inflation, high interest rates, unfavorable currency exchange rates and potential recessionary conditions; potential changes in our management and board of directors; global market, political and economic conditions, and in the countries in which we operate in particular; costs and potential liability relating to litigation and regulatory proceedings; risks related to infringement of our intellectual property rights by others or infringement of others' intellectual property rights by us; the extent of our success at maintaining our liquidity and financing our operations and capital needs; the impact of tax regulations on our results of operations and financial condition; and those additional factors referred to in Item 3.D “Key Information - Risk Factors”, Item 4, “Information on the Company”, Item 5, “Operating and Financial Review and Prospects,” and all other parts of our Annual Report on Form 20-F for the year ended December 31, 2022, which we filed with the U.S. Securities and Exchange Commission, or SEC, on March 3, 2023 (the “2022 Annual Report”). Readers are urged to carefully review and consider the various disclosures made throughout our 2022 Annual Report and the Report of Foreign Private Issuer on Form 6-K that attaches Stratasys’ unaudited, condensed consolidated financial statements and its review of its results of operations and financial condition for the third quarter and first nine months of 2023, which will be furnished to the SEC on or about the date hereof, and our other reports filed with or furnished to the SEC, which are designed to advise interested parties of the risks and factors that may affect our business, financial condition, results of operations and prospects. Any guidance provided, and other forward-looking statements made, in this press release are provided or made (as applicable) as of the date hereof, and Stratasys undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Use of Non-GAAP Financial Measures The non-GAAP data included herein, which excludes certain items as described below, are non-GAAP financial measures. Our management believes that these non-GAAP financial measures are useful information for investors and shareholders of our company in gauging our results of operations (i) on an ongoing basis after excluding mergers, acquisitions and divestments related expense or gains and reorganization-related charges or gains, and legal provisions and (ii) excluding non-cash items such as stock-based compensation expenses, acquired intangible assets amortization, including intangible assets amortization related to equity method investments, impairment of long-lived assets and goodwill, revaluation of our investments and the corresponding tax effect of those items. These non-GAAP adjustments either do not reflect actual cash outlays that impact our liquidity and our financial condition or have a non-recurring impact on the statement of operations, as assessed by management. These non-GAAP financial measures are presented to permit investors to more fully understand how management assesses our performance for internal planning and forecasting purposes. The limitations of using these non-GAAP financial measures as performance measures are that they provide a view of our results of operations without including all items indicated above during a period, which may not provide a comparable view of our performance to other companies in our industry. Investors and other readers should consider non-GAAP measures only as supplements to, not as substitutes for or as superior measures to, the measures of financial performance prepared in accordance with GAAP. Reconciliation between results on a GAAP and non-GAAP basis is provided in a table below. Stratasys Ltd. Consolidated Balance Sheets (Unaudited) (in thousands, except share data) September 30, December 31, 2023 2022 ASSETS Current assets Cash and cash equivalents $ 104,563 $ 150,470 Short-term deposits 80,000 177,367 Accounts receivable, net of allowance for credit losses of $1.4 million and $0.9 million as of September 30, 2023 and December 31, 2022, respectively 164,075 144,739 Inventories 197,420 194,054 Prepaid expenses 9,732 5,767 Other current assets 27,534 27,823 Total current assets 583,324 700,220 Non-current assets Property, plant and equipment, net 198,272 195,063 Goodwill 90,187 64,953 Other intangible assets, net 141,201 121,402 Operating lease right-of-use assets 19,533 18,122 Long-term investments 129,738 141,610 Other non-current assets 19,510 18,420 Total non-current assets 598,441 559,570 Total assets $ 1,181,765 $ 1,259,790 LIABILITIES AND EQUITY Current liabilities Accounts payable $ 60,845 $ 72,921 Accrued expenses and other current liabilities 49,817 45,912 Accrued compensation and related benefits 31,502 34,432 Deferred revenues - short term 51,751 50,220 Operating lease liabilities - short term 6,511 7,169 Total current liabilities 200,426 210,654 Non-current liabilities Deferred revenues - long term 28,559 25,214 Deferred income taxes - long term 6,889 5,638 Operating lease liabilities - long term 12,692 10,670 Contingent consideration 25,884 23,707 Other non-current liabilities 24,172 24,475 Total non-current liabilities 98,196 89,704 Total liabilities 298,622 300,358 Equity Ordinary shares, NIS 0.01 nominal value, authorized 180,000 thousands shares; 69,165 shares and 67,086 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively 194 187 Additional paid-in capital 3,080,877 3,048,915 Accumulated other comprehensive loss (12,958 ) (12,818 ) Accumulated deficit (2,184,970 ) (2,076,852 ) Total equity 883,143 959,432 Total liabilities and equity $ 1,181,765 $ 1,259,790 Stratasys Ltd. Consolidated Statements of Operations (in thousands, except per share data) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (unaudited) (unaudited) (unaudited) (unaudited) Net sales Products $ 113,270 $ 112,133 $ 323,353 $ 340,927 Services 48,863 50,059 147,908 151,297 162,133 162,192 471,261 492,224 Cost of sales Products 59,546 55,916 168,235 176,421 Services 36,938 35,527 105,760 107,984 96,484 91,443 273,995 284,405 Gross profit 65,649 70,749 197,266 207,819 Operating expenses Research and development, net 23,567 23,145 69,347 71,489 Selling, general and administrative 84,880 63,230 221,173 195,085 108,447 86,375 290,520 266,574 Operating loss (42,798 ) (15,626 ) (93,254 ) (58,755 ) Gain from deconsolidation of subsidiary - 39,136 - 39,136 Financial income (expenses), net 687 452 2,147 (2,080 ) Income (loss) before income taxes (42,111 ) 23,962 (91,107 ) (21,699 ) Income tax expenses (645 ) (3,298 ) (5,145 ) (2,796 ) Share in losses of associated companies (4,523 ) (1,915 ) (11,866 ) (2,089 ) Net income (loss) $ (47,279 ) $ 18,749 $ (108,118 ) $ (26,584 ) Net income (loss) per share Basic $ (0.68 ) $ 0.28 $ (1.58 ) $ (0.40 ) Diluted $ (0.68 ) $ 0.28 $ (1.58 ) $ (0.40 ) Weighted average ordinary shares outstanding Basic 69,093 66,772 68,432 66,356 Diluted 69,093 67,038 68,432 66,356 Three Months Ended September 30, 2023 Non-GAAP 2023 2022 Non-GAAP 2022 GAAP Adjustments Non-GAAP GAAP Adjustments Non-GAAP U.S. dollars and shares in thousands (except per share amounts) Gross profit (1) $ 65,649 $ 12,617 $ 78,266 $ 70,749 $ 7,990 $ 78,739 Operating income (loss) (1,2) (42,798 ) 46,885 $ 4,087 (15,626 ) 20,149 4,523 Net income (loss) (1,2,3) (47,279 ) 49,725 $ 2,446 18,749 (15,423 ) 3,326 Net income (loss) per diluted share (4) $ (0.68 ) $ 0.72 $ 0.04 $ 0.28 $ (0.23 ) $ 0.05 (1) Acquired intangible assets amortization expense 5,142 6,941 Non-cash stock-based compensation expense 891 1,061 Restructuring and other related costs 6,584 (12 ) 12,617 7,990 (2) Acquired intangible assets amortization expense 2,599 2,138 Non-cash stock-based compensation expense 6,588 6,330 Restructuring and other related costs 2,360 1,309 Revaluation of investments 4,300 901 Contingent consideration 265 394 Legal, consulting and other expenses 18,156 1,087 34,269 12,159 46,885 20,149 (3) Corresponding tax effect 153 2,993 Finance expenses 162 - Equity method related amortization and other 2,525 571 Gain from deconsolidation of Subsidiary (39,136 ) $ 49,725 $ (15,423 ) (4) Weighted average number of ordinaryshares outstanding- Diluted 69,093 69,815 67,038 67,038 Nine Months Ended September 30, 2023 Non-GAAP 2023 2022 Non-GAAP 2022 GAAP Adjustments Non-GAAP GAAP Adjustments Non-GAAP U.S. dollars and shares in thousands (except per share amounts) Gross profit (1) $ 197,266 $ 29,199 $ 226,465 $ 207,819 $ 27,593 $ 235,412 Operating income (loss) (1,2) (93,254 ) 103,866 $ 10,612 (58,755 ) 67,235 $ 8,480 Net income (loss) (1,2,3) (108,118 ) 114,179 $ 6,061 (26,584 ) 32,295 $ 5,711 Net income (loss) per diluted share (4) $ (1.58 ) $ 1.67 $ 0.09 $ (0.40 ) $ 0.49 $ 0.09 (1) Acquired intangible assets amortization expense 14,157 20,861 Non-cash stock-based compensation expense 2,822 3,041 Restructuring and other related costs 12,220 3,691 29,199 27,593 (2) Acquired intangible assets amortization expense 7,479 6,581 Non-cash stock-based compensation expense 20,920 21,714 Restructuring and other related costs 6,626 1,864 Revaluation of investments 4,880 3,217 Contingent consideration 877 1,197 Legal, consulting and other expenses 33,885 5,069 74,667 39,642 103,866 67,235 (3) Corresponding tax effect 3,404 3,219 Finance expenses 1,827 571 Equity method related amortization and other 5,081 406 Gain from deconsolidation of Subsidiary - (39,136 ) $ 114,179 $ 32,295 (4) Weighted average number of ordinaryshares outstanding- Diluted 68,432 69,046 66,356 67,007 View source version on businesswire.com: https://www.businesswire.com/news/home/20231116140798/en/Contacts Yonah Lloyd CCO & VP Investor Relations Yonah.Lloyd@stratasys.com
Revenue of $162.1 million, essentially flat with third quarter 2022, up 3.3% at constant currency excluding MakerBot and Stratasys Direct divestments Record-level recurring revenue for consumables reflects strong printer utilization GAAP net loss of $47.3 million, or $0.68 per diluted share, and non-GAAP net income of $2.4 million, or $0.04 per diluted share Ninth straight quarter of adjusted profitability Updating 2023 outlook
First sentence under "Stratasys Ltd. Third Quarter 2023 Webcast and Conference Call Details" should read: The Company plans to webcast its conference call to discuss its third quarter 2023 financial results on Thursday, November 16, 2023, at 8:30 a.m. (ET). The updated release reads: STRATASYS RELEASES THIRD QUARTER 2023 FINANCIAL RESULTS Revenue of $162.1 million, essentially flat with third quarter 2022, up 3.3% at constant currency excluding MakerBot and Stratasys Direct divestments Record-level recurring revenue for consumables reflects strong printer utilization GAAP net loss of $47.3 million, or $0.68 per diluted share, and non-GAAP net income of $2.4 million, or $0.04 per diluted share Ninth straight quarter of adjusted profitability Updating 2023 outlook Stratasys Ltd. (Nasdaq: SSYS) (“Stratasys” or the “Company”), a leader in polymer 3D printing solutions, today announced financial results for the third quarter 2023. Third Quarter 2023 Financial Results Compared to Third Quarter 2022: Revenue of $162.1 million compared to $162.2 million. GAAP gross margin of 40.5%, compared to 43.6%. Non-GAAP gross margin of 48.3%, compared to 48.5%. GAAP operating loss of $42.8 million, which includes $17.3 million of costs related to merger and acquisition activities, defense against hostile tender offer, proxy contest and related professional fees, compared to an operating loss of $15.6 million. Non-GAAP operating income of $4.1 million, compared to $4.5 million. GAAP net loss of $47.3 million, or $0.68 per diluted share, compared to net income of $18.7 million, or $0.28 per diluted share, which net income in Q3 2022 included a one-time $39.1M gain from the MakerBot deconsolidation. Non-GAAP net income of $2.4 million, or $0.04 per diluted share, compared to $3.3 million, or $0.05 per diluted share. Adjusted EBITDA of $9.8 million, compared to $9.9 million. Cash used in operations of $12.7 million, compared to $18.4 million in the year-ago quarter, due to the costs related to mergers and acquisitions activities, defense against a hostile tender offer, a proxy contest and related professional fees. Excluding these one-time payments, operating cash flow for the third quarter of 2023 would have been positive. Dr. Yoav Zeif, Stratasys’ Chief Executive Officer stated, “During the third quarter, Stratasys delivered solid operating and financial results, highlighted by record recurring revenues from consumables, reflecting solid printer utilization. Our relentless focus on execution allowed us to deliver comparable results to the year-ago quarter for revenues, non-GAAP margins and adjusted EBITDA, as well as our ninth consecutive quarter of positive adjusted earnings per share.” Dr. Zeif continued, “We want to acknowledge the tremendous support we have received from partners, customers, investors and our industry since the tragic events in Israel. We especially want to thank our employees who have performed in an exemplary fashion during these challenging times. Our operations have been fully functional, allowing us to continue delivering industry-leading results. We have streamlined and focused our business, while simultaneously rolling out new and exciting innovations that will expand our leadership position across systems, materials, software and customer service. Our recently introduced F3300 is the latest step in that continued evolution to unlock manufacturing benefits for our customers. Our maturity as a company, financial discipline and resilient business model position us well to deliver exceptional value for many years to come.” 2023 Financial Outlook: Based on the divestitures in Stratasys Direct, as well as macroeconomic uncertainty in its end markets, the Company is updating its revenue guidance and its outlook for the remainder of 2023 as follows: Full year revenue of $620 million to $630 million. Full year non-GAAP gross margins of 48.0% to 49.0%. Full year non-GAAP operating expenses in a range of $288 million to $290 million. Full year non-GAAP operating margins in a range of 2.0% to 2.5%. GAAP net loss of $117 million to $104 million, or ($1.70) to ($1.51) per diluted share. Includes one-time extraordinary costs associated with defense of tender offer and proxy contest, and merger-related activities. Non-GAAP net income of $6 million to $9 million, or $0.10 to $0.14 per diluted share. Adjusted EBITDA of $35 million to $38 million. Capital expenditures of $15 million to $20 million. 2023 non-GAAP earnings guidance excludes $112 million to $121 million of expenses attributable to projected amortization of intangible assets, share-based compensation expense, and reorganization and other expenses (including the one-time extraordinary costs referenced above). 2023 non-GAAP guidance includes tax adjustments of $2 million to $3 million on the above non-GAAP items. Appropriate reconciliations between GAAP and non-GAAP financial measures are provided in a table at the end of our press release and slide presentation, with itemized detail concerning the non-GAAP financial measures. Stratasys Ltd. Third Quarter 2023 Webcast and Conference Call Details The Company plans to webcast its conference call to discuss its third quarter 2023 financial results on Thursday, November 16, 2023, at 8:30 a.m. (ET). The investor conference call will be available via live webcast on the Stratasys Web site at investors.stratasys.com, or directly at the following web address: https://event.choruscall.com/mediaframe/webcast.html?webcastid=bSk6aoYV To participate by telephone, the U.S. toll-free number is 877-407-0619 and the international dial-in is +1-412-902-1012. Investors are advised to dial into the call at least ten minutes prior to the call to register. The webcast will be available for six months at investors.stratasys.com, or by accessing the above-provided web address. Stratasys is leading the global shift to additive manufacturing with innovative 3D printing solutions for industries such as aerospace, automotive, consumer products, healthcare, fashion and education. Through smart and connected 3D printers, polymer materials, a software ecosystem, and parts on demand, Stratasys solutions deliver competitive advantages at every stage in the product value chain. The world’s leading organizations turn to Stratasys to transform product design, bring agility to manufacturing and supply chains, and improve patient care. To learn more about Stratasys, visit www.stratasys.com, the Stratasys blog, X.com (formerly Twitter), LinkedIn, or Facebook. Stratasys reserves the right to utilize any of the foregoing social media platforms, including the Company’s websites, to share material, non-public information pursuant to the SEC’s Regulation FD. To the extent necessary and mandated by applicable law, Stratasys will also include such information in its public disclosure filings. Stratasys is a registered trademark and the Stratasys signet is a trademark of Stratasys Ltd. and/or its subsidiaries or affiliates. All other trademarks are the property of their respective owners. Cautionary Statement Regarding Forward-Looking Statements The statements in this press release regarding Stratasys' strategy, and the statements regarding its projected future financial performance, including the financial guidance concerning its expected results for 2023 and beyond, are forward-looking statements reflecting management's current expectations and beliefs. These forward-looking statements are based on current information that is, by its nature, subject to rapid and even abrupt change. Due to risks and uncertainties associated with Stratasys' business, actual results could differ materially from those projected or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to: the degree of our success at introducing new or improved products and solutions that gain market share; the degree of growth of the 3D printing market generally; the impact of potential shifts in the prices or margins of the products that we sell or services that we provide, including due to a shift towards lower margin products or services; the impact of competition and new technologies; the outcome of our board’s comprehensive process to explore strategic alternatives for our company; the degree to which our company’s operations remain resistant to potential adverse effects of Israel’s war against the terrorist organization Hamas; potential further charges against earnings that we could be required to take due to impairment of additional goodwill or other intangible assets; the extent of our success at successfully consummating and integrating into our existing business acquisitions or investments in new businesses, technologies, products or services; the global macro-economic environment, including headwinds caused by inflation, high interest rates, unfavorable currency exchange rates and potential recessionary conditions; potential changes in our management and board of directors; global market, political and economic conditions, and in the countries in which we operate in particular; costs and potential liability relating to litigation and regulatory proceedings; risks related to infringement of our intellectual property rights by others or infringement of others' intellectual property rights by us; the extent of our success at maintaining our liquidity and financing our operations and capital needs; the impact of tax regulations on our results of operations and financial condition; and those additional factors referred to in Item 3.D “Key Information - Risk Factors”, Item 4, “Information on the Company”, Item 5, “Operating and Financial Review and Prospects,” and all other parts of our Annual Report on Form 20-F for the year ended December 31, 2022, which we filed with the U.S. Securities and Exchange Commission, or SEC, on March 3, 2023 (the “2022 Annual Report”). Readers are urged to carefully review and consider the various disclosures made throughout our 2022 Annual Report and the Report of Foreign Private Issuer on Form 6-K that attaches Stratasys’ unaudited, condensed consolidated financial statements and its review of its results of operations and financial condition for the third quarter and first nine months of 2023, which will be furnished to the SEC on or about the date hereof, and our other reports filed with or furnished to the SEC, which are designed to advise interested parties of the risks and factors that may affect our business, financial condition, results of operations and prospects. Any guidance provided, and other forward-looking statements made, in this press release are provided or made (as applicable) as of the date hereof, and Stratasys undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Use of Non-GAAP Financial Measures The non-GAAP data included herein, which excludes certain items as described below, are non-GAAP financial measures. Our management believes that these non-GAAP financial measures are useful information for investors and shareholders of our company in gauging our results of operations (i) on an ongoing basis after excluding mergers, acquisitions and divestments related expense or gains and reorganization-related charges or gains, and legal provisions and (ii) excluding non-cash items such as stock-based compensation expenses, acquired intangible assets amortization, including intangible assets amortization related to equity method investments, impairment of long-lived assets and goodwill, revaluation of our investments and the corresponding tax effect of those items. These non-GAAP adjustments either do not reflect actual cash outlays that impact our liquidity and our financial condition or have a non-recurring impact on the statement of operations, as assessed by management. These non-GAAP financial measures are presented to permit investors to more fully understand how management assesses our performance for internal planning and forecasting purposes. The limitations of using these non-GAAP financial measures as performance measures are that they provide a view of our results of operations without including all items indicated above during a period, which may not provide a comparable view of our performance to other companies in our industry. Investors and other readers should consider non-GAAP measures only as supplements to, not as substitutes for or as superior measures to, the measures of financial performance prepared in accordance with GAAP. Reconciliation between results on a GAAP and non-GAAP basis is provided in a table below. Stratasys Ltd. Consolidated Balance Sheets (Unaudited) (in thousands, except share data) September 30, December 31, 2023 2022 ASSETS Current assets Cash and cash equivalents $ 104,563 $ 150,470 Short-term deposits 80,000 177,367 Accounts receivable, net of allowance for credit losses of $1.4 million and $0.9 million as of September 30, 2023 and December 31, 2022, respectively 164,075 144,739 Inventories 197,420 194,054 Prepaid expenses 9,732 5,767 Other current assets 27,534 27,823 Total current assets 583,324 700,220 Non-current assets Property, plant and equipment, net 198,272 195,063 Goodwill 90,187 64,953 Other intangible assets, net 141,201 121,402 Operating lease right-of-use assets 19,533 18,122 Long-term investments 129,738 141,610 Other non-current assets 19,510 18,420 Total non-current assets 598,441 559,570 Total assets $ 1,181,765 $ 1,259,790 LIABILITIES AND EQUITY Current liabilities Accounts payable $ 60,845 $ 72,921 Accrued expenses and other current liabilities 49,817 45,912 Accrued compensation and related benefits 31,502 34,432 Deferred revenues - short term 51,751 50,220 Operating lease liabilities - short term 6,511 7,169 Total current liabilities 200,426 210,654 Non-current liabilities Deferred revenues - long term 28,559 25,214 Deferred income taxes - long term 6,889 5,638 Operating lease liabilities - long term 12,692 10,670 Contingent consideration 25,884 23,707 Other non-current liabilities 24,172 24,475 Total non-current liabilities 98,196 89,704 Total liabilities 298,622 300,358 Equity Ordinary shares, NIS 0.01 nominal value, authorized 180,000 thousands shares; 69,165 shares and 67,086 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively 194 187 Additional paid-in capital 3,080,877 3,048,915 Accumulated other comprehensive loss (12,958 ) (12,818 ) Accumulated deficit (2,184,970 ) (2,076,852 ) Total equity 883,143 959,432 Total liabilities and equity $ 1,181,765 $ 1,259,790 Stratasys Ltd. Consolidated Statements of Operations (in thousands, except per share data) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (unaudited) (unaudited) (unaudited) (unaudited) Net sales Products $ 113,270 $ 112,133 $ 323,353 $ 340,927 Services 48,863 50,059 147,908 151,297 162,133 162,192 471,261 492,224 Cost of sales Products 59,546 55,916 168,235 176,421 Services 36,938 35,527 105,760 107,984 96,484 91,443 273,995 284,405 Gross profit 65,649 70,749 197,266 207,819 Operating expenses Research and development, net 23,567 23,145 69,347 71,489 Selling, general and administrative 84,880 63,230 221,173 195,085 108,447 86,375 290,520 266,574 Operating loss (42,798 ) (15,626 ) (93,254 ) (58,755 ) Gain from deconsolidation of subsidiary - 39,136 - 39,136 Financial income (expenses), net 687 452 2,147 (2,080 ) Income (loss) before income taxes (42,111 ) 23,962 (91,107 ) (21,699 ) Income tax expenses (645 ) (3,298 ) (5,145 ) (2,796 ) Share in losses of associated companies (4,523 ) (1,915 ) (11,866 ) (2,089 ) Net income (loss) $ (47,279 ) $ 18,749 $ (108,118 ) $ (26,584 ) Net income (loss) per share Basic $ (0.68 ) $ 0.28 $ (1.58 ) $ (0.40 ) Diluted $ (0.68 ) $ 0.28 $ (1.58 ) $ (0.40 ) Weighted average ordinary shares outstanding Basic 69,093 66,772 68,432 66,356 Diluted 69,093 67,038 68,432 66,356 Three Months Ended September 30, 2023 Non-GAAP 2023 2022 Non-GAAP 2022 GAAP Adjustments Non-GAAP GAAP Adjustments Non-GAAP U.S. dollars and shares in thousands (except per share amounts) Gross profit (1) $ 65,649 $ 12,617 $ 78,266 $ 70,749 $ 7,990 $ 78,739 Operating income (loss) (1,2) (42,798 ) 46,885 $ 4,087 (15,626 ) 20,149 4,523 Net income (loss) (1,2,3) (47,279 ) 49,725 $ 2,446 18,749 (15,423 ) 3,326 Net income (loss) per diluted share (4) $ (0.68 ) $ 0.72 $ 0.04 $ 0.28 $ (0.23 ) $ 0.05 (1) Acquired intangible assets amortization expense 5,142 6,941 Non-cash stock-based compensation expense 891 1,061 Restructuring and other related costs 6,584 (12 ) 12,617 7,990 (2) Acquired intangible assets amortization expense 2,599 2,138 Non-cash stock-based compensation expense 6,588 6,330 Restructuring and other related costs 2,360 1,309 Revaluation of investments 4,300 901 Contingent consideration 265 394 Legal, consulting and other expenses 18,156 1,087 34,269 12,159 46,885 20,149 (3) Corresponding tax effect 153 2,993 Finance expenses 162 - Equity method related amortization and other 2,525 571 Gain from deconsolidation of Subsidiary (39,136 ) $ 49,725 $ (15,423 ) (4) Weighted average number of ordinaryshares outstanding- Diluted 69,093 69,815 67,038 67,038 Nine Months Ended September 30, 2023 Non-GAAP 2023 2022 Non-GAAP 2022 GAAP Adjustments Non-GAAP GAAP Adjustments Non-GAAP U.S. dollars and shares in thousands (except per share amounts) Gross profit (1) $ 197,266 $ 29,199 $ 226,465 $ 207,819 $ 27,593 $ 235,412 Operating income (loss) (1,2) (93,254 ) 103,866 $ 10,612 (58,755 ) 67,235 $ 8,480 Net income (loss) (1,2,3) (108,118 ) 114,179 $ 6,061 (26,584 ) 32,295 $ 5,711 Net income (loss) per diluted share (4) $ (1.58 ) $ 1.67 $ 0.09 $ (0.40 ) $ 0.49 $ 0.09 (1) Acquired intangible assets amortization expense 14,157 20,861 Non-cash stock-based compensation expense 2,822 3,041 Restructuring and other related costs 12,220 3,691 29,199 27,593 (2) Acquired intangible assets amortization expense 7,479 6,581 Non-cash stock-based compensation expense 20,920 21,714 Restructuring and other related costs 6,626 1,864 Revaluation of investments 4,880 3,217 Contingent consideration 877 1,197 Legal, consulting and other expenses 33,885 5,069 74,667 39,642 103,866 67,235 (3) Corresponding tax effect 3,404 3,219 Finance expenses 1,827 571 Equity method related amortization and other 5,081 406 Gain from deconsolidation of Subsidiary - (39,136 ) $ 114,179 $ 32,295 (4) Weighted average number of ordinaryshares outstanding- Diluted 68,432 69,046 66,356 67,007 View source version on businesswire.com: https://www.businesswire.com/news/home/20231116140798/en/
