Stratasys’ Stock Soars As Revenue Jumps 67%
On Thursday, 3D-printing giant Stratasys reported that its second-quarter revenue increased by nearly 70 percent, news that helped cause the company’s stock to shoot up more than 17 percent.
The Eden Prairie-based company said it has seen robust sales for its 3D systems and materials and reported especially positive sales under its MakerBot brand—which Stratasys acquired for more than $400 million last year.
Stratasys said its operating expenses increased in the second quarter, driven by the addition of MakerBot’s costs, as well as “significant investments” in sales and marketing programs to support its overall growth.
While Stratasys builds 3D printers on a large scale for industrial use, MakerBot focuses on smaller and cheaper entry-level 3D models for individuals. In July, Stratasys announced that it struck a deal with Home Depot, through which the retail chain would sell its MakerBot 3D products at a dozen of its stores.
For the quarter that ended June 30, the Eden Prairie-based company reported a net loss of $173,000, or break-even on a per-share basis, compared to a net loss of $2.8 million, or $0.07 per share, during the same period in 2013. Its adjusted earnings, which excludes restructuring and other charges, was $28 million, or $0.55 per share, which was $0.11 higher than what analysts had expected.
Revenue, meanwhile, totaled $178.5 million, up 67.6 percent from $106.5 million in the second quarter of 2013. Second-quarter revenue was above the analysts’ projections of $157 million.
Shares of Stratasys’ stock were trading up about 17.6 percent at $116.3 per share Thursday afternoon.
“We continue to observe strong positive sales momentum for our higher-performance systems and materials, which is reflected in the impressive 35 percent organic revenue growth we generated during the second quarter,” CEO David Reis said in statement. “Equally impressive were the sales of MakerBot products and services, which contributed $33.6 million of revenue during the period, driven by our expanding distribution network and the successful launch of three MakerBot branded 3D printers in the first half of the year.”
Looking forward, Stratasys increased its revenue guidance for its fiscal 2014 from between $660 million and $680 million to between $750 million and $770 million.
In addition to purchasing MakerBot last year, Stratasys announced in April agreements to buy privately held companies Solid Concepts, Inc., and Harvest Technologies and will merge them with its own manufacturing subsidiary RedEye. Stratasys only announced the purchase price of Solid Concepts, which was $295 million. The company said Thursday that both of those deals have now closed.
More recently, Stratasys announced that it is launching “MakerBot Europe,” a new European division to boost its overseas presence in desktop 3D printing.
One of Stratasys’ largest competitors, 3D Systems, also reported its second quarter earnings recently and they came in well short of expectations. Forbes reported on the comparison Thursday and claims it may be time to crown Stratasys the “new king” of the 3D printing industry.
In our June cover story, Twin Cities Business took an in-depth look at Stratasys and the larger 3D printing industry, interviewing numerous experts about the possible applications and greater potential for the technology, which some believe could usher in the next industrial revolution.