Stratasys (NASDAQ:SSYS) is a leading additive manufacturing (AM) solution provider that specializes in polymer-based 3D printing.
The company’s products and services are adopted in a wide range of industries which include aerospace, automotive, consumer products, and healthcare.
While Stratasys is headquartered in Israel, the firm also operates a number of offices and manufacturing facilities located outside of the country, particularly in the U.S.
Stratasys is one of the major disruptors within the 3D printing space as the company’s additive manufacturing solutions involve a powerful ecosystem that encompasses materials, software, expert services as well as on-demand parts production.
That said, this article looks at a couple of Stratasys’ revenue-related metrics which include the total revenue, revenue breakdown, net sales by segment and growth rates.
Let’s go take a look!
Total Revenue And Net Sales By Quarter
Stratasys’ quarterly revenue recovered significantly in fiscal 2021 from the slump seen in fiscal 2020, driven primarily by the increasing adoption of 3D printing in production plans by industry players.
As of fiscal Q3 2021, Stratasys’ quarterly revenue came in at $159 million USD, up 24% from the same quarter a year ago.
The 3Q 2021 result shows that Stratasys’ quarterly revenue in fiscal 2021 has already returned to that of pre-COVID periods.
Going forward, Stratasys expects the 4Q 2021 quarter to be 16% higher than the same quarter in fiscal 2020 and 2019.
Therefore, at the lowest end of the estimation, Stratasys’ quarterly revenue is expected to come in at $165 million in 4Q 2021.
Total Revenue And Net Sales By TTM
The TTM plot above presents a much clearer revenue trend for Stratasys.
As shown, Stratasys’ TTM revenue has obviously been on a rise in fiscal 2021, reaching as much as $582 million as of fiscal 3Q 2021.
The 3Q 2021 TTM result represents a year-on-year growth rate of roughly 8%.
Based on Stratasys’ guided revenue for fiscal Q4 2021, the TTM revenue and net sales are expected to come in at slightly above $600 million.
If the guided revenue materializes in fiscal 4Q 2021, Stratasys’s TTM revenue in the next quarter will be up by a massive 16% from a year ago.
Total Revenue Breakdown
There are only 2 revenue segments as disclosed in Stratasys’ financial filings and they are revenue from product and revenue from service.
As seen in the chart above, Stratasys’ revenue from product is much higher than that of the service segment.
As of fiscal 3Q 2021, Stratasys’ product revenue totaled $400 million while service revenue came in at only $184 million on a TTM basis, less than half of that from the product segment.
On a long-term basis, Stratasys’ service revenue also has grown at a much slower rate than product revenue.
For example, since fiscal 2018, Stratasys’ service revenue has remained flat even during the post-COVID period while product revenue has significantly recovered.
Despite the considerable recovery seen in the latest quarter, Stratasys’ product revenue was still slightly below that of the pre-COVID period.
Total Revenue YoY Growth Rates
According to the chart above, Stratasys’ revenue growth rates recovered significantly in fiscal 2021.
That said, in fiscal 2021, the company reported mostly positive growth rates as opposed to all the negative growth rates seen in the prior year.
As of Q3 2021, Stratasys’ total revenue grew 24% from a year ago while the previous quarter reported an even higher growth rate at 25% year-over-year.
Product Revenue YoY Growth Rates
Within the product segment, Stratasys’ product revenue is further broken down into system revenue and consumables revenue as shown in the chart above.
However, Stratasys does not specifically disclose the amount of revenue earned under these sub-segments.
Instead, Stratasys discloses only the growth rates of these sub-segments in its quarterly earnings releases.
For your information, the system sub-segment consists of mostly 3D printers that usually come with software and services when customers make purchases.
Some notable 3D printers available under the system sub-segments are PolyJet printers, FDM printers, stereolithography printers, Origin P3 printers, etc.
On the other hand, consumables are mostly materials used for 3D printing such as filament and resin.
Some notable products under the consumable sub-segment include FDM materials, PolyJet materials, stereolithography materials, etc.
All told, according to the chart, Stratasys’ product revenue has significantly recovered in fiscal 2021 as reflected in all the positive YoY growth rates shown in the chart.
As of fiscal 3Q 2021, Stratasys’ product revenue growth rate totaled as much as 30% while the prior quarter reported an even higher growth rate at 36%.
Moreover, Stratasys’ system revenue recovered much earlier than consumables revenue in fiscal 2021.
As of fiscal 3Q 2021, system revenue reported a YoY growth rate of 35% while consumables’ growth rate totaled only 27% during the same quarter.
In short, both system and consumable growth rates are seen heading in the same direction, be it positive or negative.
Service Revenue YoY Growth Rates
Stratasys’ service sub-segment consists of customer support, warranty, leasing and other services.
Despite having multiple revenue streams under the service sub-segment, Stratasys discloses only the customer support revenue growth rates which are shown in the chart above.
According to Stratasys, the customer support revenue growth rates also have been tracking that of the service revenue.
As seen, the customer support revenue grew 7% in fiscal 3Q 2021 and 10% in the prior quarter compared to 13% and 7%, respectively, for the service revenue.
In addition, Stratasys’ service revenue declined at a much worse rate in fiscal 2020 compared to customer support revenue.
However, both revenue segments are seen recovering in the same direction in fiscal 2021, with the service revenue growth rate reaching a far higher figure at 13% as of Q3 2021.
Stratasys’ total revenue has been recovering in fiscal 2021 from the COVID-induced downturn seen in fiscal 2020.
Both quarterly and TTM revenue has been increasing in fiscal 2021 and the 3Q 2021 results were at record highs since fiscal 2020.
Moreover, Stratasys also guided for significantly higher revenue in fiscal Q4 2021, driven primarily by the increasing adoption of 3D printing and the recovery in the manufacturing industry.
In terms of growth rates, Stratasys’ all revenue segments, including the product and service, were at record highs as of fiscal Q3 2021, illustrating the growing momentum of the recovery.
Credits and References
1. All financial figures in this article were obtained and referenced from SSYS’s quarterly and annual filings which can be obtained in the following location: SSYS Investor Relation.
Other Statistics For Your Reference
The content in this article is for informational purposes only and is neither a recommendation nor a piece of financial advice to purchase a stock.
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