Stratasys announces restructuring

The announcement follows poor financial results for Q2 and the first half of 2024

Even they aren’t immune… Stratasys – still the largest company in the AM industry by revenue – has announced its financial results for Q2 and H1 2024. The results are weaker than those of previous years and align with the overall trend in the industry. Moreover, Stratasys has announced a significant restructuring plan, including laying off 15% of its workforce.

In Q2 2024, Stratasys generated $138 million in revenue, compared to $159.8 million in the same period in 2023, marking a -13.59% year-over-year decline. For the first half of the year, the company generated $282.1 million in revenue, compared to $309.13 million in 2023, representing a -8.75% decline. The net loss for Q2 was -$25.74 million, a reduction by one-third compared to last year’s loss of -$38.6 million. The loss for the first half of the year was -$51.73 million, compared to -$60.84 million in 2023.

The company’s revenue declined similarly in both product sales (3D printers and materials) and services provided.

Stratasys states that it plans to focus on "products with the highest growth potential" in the areas of materials and software. The company reported strong sales of consumables, with a year-over-year increase in recurring revenue of +6.4%, which it claims reflects strong utilization of 3D printers.

In June this year, the company announced a series of updates on software and materials, including extensions to the Stratasys OpenAM software application, which allows users to modify machine controls and unlock new material options. It also introduced new Parts on Demand by GrabCAD integration, synchronizing the software platform with Stratasys Direct 3D printing service.

On the other hand, the company moved its U.S. headquarters from Eden Prairie, Minnesota, to a new campus in Minnetonka, where it will lease space. Meanwhile, it plans to sell two of its owned buildings.

Stratasys has also initiated a patent dispute with Chinese companies allegedly behind the success of Bambu Lab.

Regarding workforce reductions, by the end of this year, Stratasys intends to lay off approximately 15% of its global workforce. The company employs a total of 1,980 people worldwide, including 537 in Israel. While Stratasys did not disclose the exact number of layoffs, it is estimated to be around 300 employees, including about 80 in Israel. This is expected to result in $40 million in annual cost savings starting in Q1 2025.

This is the first such initiative in years...

Source: www.stratasys.com