Stratasys F900
Stratasys has announced plans for restructuring, including an approximated 15% reduction in its workforce by the end of this year.
The additive manufacturing company says the immediate action will ‘further strengthen’ its balance sheet and business model ‘to more effectively weather all market cycles.’ It is expected that the streamlining operations will result in approximately 40 million USD in annual cost savings beginning in the first quarter of 2025, along with annualised EBITDA margins of 8% at current revenue levels.
Dr. Yoav Zeif, Stratasys’ Chief Executive Officer, said in a statement, “For the Company to maintain its industry leadership, we continuously evaluate and assess our business model to ensure we are optimally aligned with evolving market conditions. We are confident that our efforts will enable our customers to more effectively address their biggest manufacturing challenges, which should lead to increased adoption of our additive technologies. This realignment is critical to ensure that we can achieve our objectives to deliver sustained profitability and cash flow, while remaining ready to capture opportunities when the spending cycle improves, positioning Stratasys to deliver outsized shareholder value.”
Making the announcement in its second quarter 2024 financial results, Stratasys recorded revenues of 138.0 million USD, down from 159.8 million USD (154.6 million USD net of divestments) in the second quarter 2023, which it claims is due to the ‘ongoing impact of current macroeconomic environment on customer capital equipment purchasing.’ The company also reported improved GAAP gross margin by 230bps and non-GAAP gross margin by 50bps compared to second quarter 2023, and a GAAP net loss of 25.7 million USD, or 0.36 USD per diluted share, and non-GAAP net loss of 3.0 million USD, or 0.04 USD per diluted share.
Stratasys says it plans to focus its attention on 'highest growth potential products' across materials and software. The company reported strong consumable sales with 6.4% year-over-year growth in recurring revenue, which it says reflects the strong utilisation of its 3D printing hardware. In June, the company made a number of software and materials announcements including expansions to its Stratasys OpenAM software application, which enables users to modify machine controls and unlock new materials options, and a new Parts on Demand by GrabCAD integration, which synchronises its software platform with Stratasys Direct 3D printing service.
Dr. Zeif continued, “We understand the importance of a disciplined approach to balancing investment in innovation with staying focused on delivering the most impactful additive manufacturing applications to our customers and value to shareholders.”
Earlier this month, the 3D printing leader announced plans to relocate its U.S. headquarters to a new Minnetonka campus, promising increased 'collaboration and productivity' and 'closer collaboration and engagement between research and development and manufacturing.’ The company also recently began legal action against desktop 3D printer manufacturer Bambu Lab for an alleged infringement of several 3D printing patents. Last year, Stratasys was at the centre of one of the additive manufacturing industry's biggest M&A stories after numerous attempts by Nano Dimension to acquire the company and a planned merger with Desktop Metal fell through.
