Stratasys, Ltd. (NASDAQ:SSYS) released its third quarter earnings report before opening bell this morning, posting non-GAAP earnings of 58 cents per share, a 50% year over year increase, on $204 million in revenue. Analysts had been looking for earnings of 57 cents per share on $195.5 million in revenue.
Key metrics from Stratasys’ earnings report
GAAP losses per share were 62 cents or $31.3 million. Non-GAAP EBITDA was $40 million, while GAAP EBITDA was a loss of $22.2 million. This year’s third quarter revenue increased an organic increase of 35% and a 62% increase including revenue from acquisitions Stratasys made this year.
During the third quarter, the company closed the Harvest Technologies, GrabCAD and Solid Concepts acquisitions. Stratasys also set up MakerBot Europe through the acquisition of its German distributor, HAFNER’S BURO.
The 3D printing company reported a more than 80% increase in MakerBot revenue compared to last year’s third quarter. Stratasys also reported strong sales of its PolyJet and high-end FDM systems and its Objet1000 and Connex line of 4D printers.
Stratasys sold 10,965 3D printing and additive manufacturing systems during the third quarter. Combined, the company sold a total of 110,494 systems around the globe so far year to date. Management cited growth in higher margin products as a main driver of overall growth during the quarter as it helped lift margins.
Stratasys adjusts guidance
The 3D printing company kept its full year revenue guidance at between $750 million and $770 million. Stratasys updated its non-GAAP earnings guidance to reflect the GrabCAD acquisition, bringing the range to between $2.21 and $2.31 per share. That’s compared to the previous guidance of between $2.25 and $2.35 per share. Stratasys also updated its GAAP guidance to net losses of between $31.6 million and $24.4 million. That amounts to losses of between 63 cents and 49 cents per share for the full year.
The company reiterated other parts of its guidance, including at least a 25% growth rate in annual organic revenue. Non-GAAP operating income as a percentage of sales is expected to be between 18% and 25%. Non-GAAP net income as a percentage of sales is expected to be between 16% and 21%.