UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of August
Commission File Number
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(Translation of registrant’s name into English) |
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c/o Stratasys, Inc. 9600 West 76th Street Eden Prairie, Minnesota 55344 |
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(Address of principal executive office) |
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Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F ☒ Form 40-F ☐
CONTENTS
On August 9, 2023, Stratasys Ltd., or Stratasys, released its financial results for the three and six months ended June 30, 2023.
Attached hereto as Exhibit 99.1 are the unaudited, condensed consolidated financial statements of Stratasys as of, and for the three and six months ended, June 30, 2023 (including the notes thereto), or the Q2 2023 Financial Statements
Attached hereto as Exhibit 99.2 is Stratasys’ review of its results of operations and financial condition for the three and six months ended June 30, 2023, including the following:
(i)
Operating and Financial Review and Prospects
(ii)
Quantitative and Qualitative Disclosures About Market Risk
(iii)
Legal Proceedings
(iv)
Risk Factors
Attached hereto as Exhibit 101 are the Q2 2023 Financial Statements, formatted in IXBRL (eXtensible Business Reporting Language), consisting of the following sub-exhibits:
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Exhibit Number |
Document Description |
| 99.1 |
Unaudited, condensed consolidated financial statements of Stratasys as of, and for the three and six months ended, June 30, 2023 |
| 99.2 |
Stratasys' review of its results of operations and financial condition for the three and six months ended June 30, 2023 |
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EX-101.INS |
IXBRL Taxonomy Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document |
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EX-101.SCH |
IXBRL Taxonomy Extension Schema Document |
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EX-101.CAL |
IXBRL Taxonomy Calculation Linkbase Document |
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EX-101.DEF |
IXBRL Taxonomy Extension Definition Linkbase Document |
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EX-101.LAB |
IXBRL Taxonomy Label Linkbase Document |
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EX-101.PRE |
IXBRL Taxonomy Presentation Linkbase Document |
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EX-104 |
Cover Page Interactive Data File – the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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STRATASYS LTD. | |
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Dated: August 9, 2023 |
By: |
/s/ Eitan Zamir |
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Name: |
Eitan Zamir |
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Chief Financial Officer |
Exhibit 99.1
STRATASYS LTD.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED
JUNE 30, 2023
(UNAUDITED)
INDEX TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2023
(UNAUDITED)
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Item |
Page | |
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Consolidated Balance Sheets |
2 | |
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Consolidated Statements of Operations and Comprehensive Loss |
3 | |
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Consolidated Statements of Changes in Equity |
4-5 | |
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Consolidated Statements of Cash Flows |
6 | |
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Notes to Condensed Consolidated Interim Financial Statements |
7-20 |
STRATASYS LTD.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(Unaudited)
| Consolidated Balance Sheets | ||||||||
| (in thousands, except per share data) | ||||||||
| June 30, 2023 | December 31, 2022 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | $ | ||||||
| Short-term deposits | ||||||||
| Accounts receivable, net of allowance for credit losses of $ | ||||||||
| Inventories | ||||||||
| Prepaid expenses | ||||||||
| Other current assets | ||||||||
| Total current assets | ||||||||
| Non-current assets | ||||||||
| Property, plant and equipment, net | ||||||||
| Goodwill | ||||||||
| Other intangible assets, net | ||||||||
| Operating lease right-of-use assets | ||||||||
| Long-term investments | ||||||||
| Other non-current assets | ||||||||
| Total non-current assets | ||||||||
| Total assets | $ | $ | ||||||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | $ | ||||||
| Accrued expenses and other current liabilities | ||||||||
| Accrued compensation and related benefits | ||||||||
| Deferred revenues - short term | ||||||||
| Operating lease liabilities - short term | ||||||||
| Total current liabilities | ||||||||
| Non-current liabilities | ||||||||
| Deferred revenues - long term | ||||||||
| Deferred income taxes - long term | ||||||||
| Operating lease liabilities - long term | ||||||||
| Contingent consideration - long term | ||||||||
| Other non-current liabilities | ||||||||
| Total non-current liabilities | ||||||||
| Total liabilities | $ | $ | ||||||
| Contingencies (see note 13) | ||||||||
| Equity | ||||||||
| Ordinary shares, NIS | ||||||||
| Additional paid-in capital | ||||||||
| Accumulated other comprehensive loss | ( | ) | ( | ) | ||||
| Accumulated deficit | ( | ) | ( | ) | ||||
| Total equity | ||||||||
| Total liabilities and equity | $ | $ |
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
STRATASYS LTD.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(Unaudited)
| Consolidated Statements of Operations and Comprehensive Loss | ||||||||||||||||||
| (in thousands, except per share data) | ||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||||
| Revenues | ||||||||||||||||||
| Products | $ | $ | $ | $ | ||||||||||||||
| Services | ||||||||||||||||||
| Cost of revenues | ||||||||||||||||||
| Products | ||||||||||||||||||
| Services | ||||||||||||||||||
| Gross profit | ||||||||||||||||||
| Operating expenses | ||||||||||||||||||
| Research and development, net | ||||||||||||||||||
| Selling, general and administrative | ||||||||||||||||||
| Operating loss | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||
| Financial income (expenses), net | ( | ) | ( | ) | ||||||||||||||
| Loss before income taxes | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||
| Income tax benefit (expenses) | ( | ) | ( | ) | ||||||||||||||
| Share in losses of associated companies | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||
| Net loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||
| $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||||
| Comprehensive loss | ||||||||||||||||||
| Net loss | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||
| Other comprehensive income (loss), net of tax: | ||||||||||||||||||
| Foreign currency translation adjustments | ( | ) | ( | ) | ||||||||||||||
| Unrealized gains (losses) on derivatives designated as cash flow hedges | ( | ) | ( | ) | ( | ) | ||||||||||||
| Other comprehensive income (loss), net of tax | ( | ) | ( | ) | ||||||||||||||
| Comprehensive loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
STRATASYS LTD.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(Unaudited)
| Consolidated Statements of Changes in Equity | ||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||
| Three and Six Months Ended June 30, 2023 | ||||||||||||||||||||||||
| Accumulated | ||||||||||||||||||||||||
| Additional | Other | |||||||||||||||||||||||
| Ordinary Shares | Paid-In | Accumulated | Comprehensive | Total | ||||||||||||||||||||
| Number of shares | Par Value | Capital | deficit | Loss | Equity | |||||||||||||||||||
| Balance as of December 31, 2022 | $ | $ | $ | ( | ) | $ | ( | ) | $ | |||||||||||||||
| Issuance of shares in connection with stock-based compensation plans | ||||||||||||||||||||||||
| Stock-based compensation | - | |||||||||||||||||||||||
| Comprehensive loss | - | ( | ) | ( | ) | ( | ) | |||||||||||||||||
| Balance as of March 31, 2023 | $ | $ | $ | ( | ) | $ | ( | ) | $ | |||||||||||||||
| Issuance of shares in connection with stock-based compensation plans | ||||||||||||||||||||||||
| Stock-based compensation | - | |||||||||||||||||||||||
| Comprehensive income (loss) | - | ( | ) | ( | ) | |||||||||||||||||||
| Issuance of Common stock under employee stock purchase plan | ||||||||||||||||||||||||
| Issuance of shares as part of the Covestro acquisition | ||||||||||||||||||||||||
| Balance as of June 30, 2023 | ( | ) | ( | ) | ||||||||||||||||||||
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
STRATASYS LTD.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(Unaudited)
| Consolidated Statements of Changes in Equity | ||||||||||||||||||||||||
| (in thousands ) | ||||||||||||||||||||||||
| Three and Six Months Ended June 30, 2022 | ||||||||||||||||||||||||
| Accumulated | ||||||||||||||||||||||||
| Additional | Other | |||||||||||||||||||||||
| Ordinary Shares | Paid-In | Accumulated | Comprehensive | Total | ||||||||||||||||||||
| Number of shares | Par Value | Capital | deficit | Loss | Equity | |||||||||||||||||||
| Balance as of December 31, 2021 | $ | $ | $ | ( | ) | $ | ( | ) | $ | |||||||||||||||
| Issuance of shares in connection with stock-based compensation plans | ||||||||||||||||||||||||
| Stock-based compensation | - | |||||||||||||||||||||||
| Comprehensive loss | - | ( | ) | ( | ) | ( | ) | |||||||||||||||||
| Balance as of March 31, 2022 | ( | ) | ( | ) | ||||||||||||||||||||
| Issuance of shares in connection with stock-based compensation plans | ||||||||||||||||||||||||
| Stock-based compensation | - | $ | $ | $ | $ | $ | ||||||||||||||||||
| Comprehensive loss | - | ( | ) | ( | ) | ( | ) | |||||||||||||||||
| Balance as of June 30, 2022 | ( | ) | ( | ) | ||||||||||||||||||||
STRATASYS LTD.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(Unaudited)
| Consolidated Statements of Cash Flows | |||||||||
| in thousands | Six Months Ended June 30, | ||||||||
| 2023 | 2022 | ||||||||
| Cash flows from operating activities | |||||||||
| Net loss | $ | ( | ) | $ | ( | ) | |||
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||
| Impairment of other long-lived assets | |||||||||
| Depreciation and amortization | |||||||||
| Stock-based compensation | |||||||||
| Foreign currency transaction loss | |||||||||
| Share in losses of associated companies | |||||||||
| Revaluation of investments | |||||||||
| Other non-cash items, net | |||||||||
| Change in cash attributable to changes in operating assets and liabilities: | |||||||||
| Accounts receivable, net | ( | ) | ( | ) | |||||
| Inventories | ( | ) | ( | ) | |||||
| Other current assets and prepaid expenses | ( | ) | |||||||
| Other non-current assets | |||||||||
| Accounts payable | ( | ) | |||||||
| Other current liabilities | ( | ) | ( | ) | |||||
| Deferred revenues | |||||||||
| Deferred income taxes, net and uncertain tax positions | ( | ) | |||||||
| Other non-current liabilities | ( | ) | ( | ) | |||||
| Net cash used in operating activities | ( | ) | ( | ) | |||||
| Cash flows from investing activities | |||||||||
| Cash paid for acquisitions, net of cash acquired | ( | ) | |||||||
| Purchase of property and equipment | ( | ) | ( | ) | |||||
| Investments in short-term bank deposits | ( | ) | ( | ) | |||||
| Proceeds from short-term bank deposits | |||||||||
| Purchase of intangible assets | ( | ) | ( | ) | |||||
| Other investing activities | ( | ) | |||||||
| Investments in unconsolidated entities | ( | ) | ( | ) | |||||
| Net cash provided by investing activities | |||||||||
| Cash flows from financing activities | |||||||||
| Proceeds from exercise of stock options | |||||||||
| Payment of contingent consideration | ( | ) | ( | ) | |||||
| Other financing activities | - | ||||||||
| Net cash used in financing activities | ( | ) | ( | ) | |||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | ( | ) | ( | ) | |||||
| Net change in cash, cash equivalents and restricted cash | ( | ) | |||||||
| Cash, cash equivalents and restricted cash, beginning of period | |||||||||
| Cash, cash equivalents and restricted cash, end of period | $ | $ | |||||||
| Supplemental disclosures of cash flow information: | |||||||||
| Non-cash investing and financing activities | |||||||||
| Transfer of inventory to fixed assets | |||||||||
| Transfer of fixed assets to inventory | |||||||||
| Issuance of Common stock under employee stock purchase plan | |||||||||
| Issuance of shares as part of Covestro acquisition (Refer to Note 3) | |||||||||
| Contingent consideration | |||||||||
| Reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheets: | |||||||||
| Cash and cash equivalents | |||||||||
| Restricted cash included in other current assets | | ||||||||
| Cash balances classified as Held for sale | |||||||||
| Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows | $ | $ | |||||||
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
Note 1. Business Description and Basis of Presentation
The results of operations for the six and three months periods ended June 30, 2023 are not necessarily indicative of results that could be expected for the entire fiscal year. Certain financial information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. The reader is referred to the Company's audited consolidated financial statements and notes thereto for the year ended December 31, 2022, filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 3, 2023 as part of the Company’s Annual Report on Form 20-F for such year.
Note 2. New Accounting Pronouncements
Accounting Pronouncements Adopted in 2023
| U.S. $ in thousands | ||||
| Fair Value, net | $ | |||
| Net assets deconsolidated | ( | ) | ||
| Transaction expenses | ( | ) | ||
| Gain on deconsolidation of subsidiary | $ |
| U.S. $ in thousands | ||||
| Cash payments* | $ | |||
| Issuance of ordinary shares to Covestro stockholders | ||||
| Contingent consideration at estimated fair value | ||||
| Total consideration | $ |
STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
| Allocation of Purchase Price | ||||
| (U.S. $ in thousands) | ||||
| Inventory | $ | |||
| Fixed assets | ||||
| Goodwill | ||||
| Intangible assets | ||||
| Total assets acquired | ||||
| Other current liabilities | ||||
| Total liabilities assumed | ||||
| Net assets acquired | $ |
STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
Note 4. Recent developments
STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
Note 5. Revenues
Disaggregation of Revenues
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| (U.S. $ in thousands) | (U.S. $ in thousands) | ||||||||||||||
| Americas | |||||||||||||||
| Systems | $ | $ | $ | $ | |||||||||||
| Consumables | |||||||||||||||
| Service | |||||||||||||||
| Total Americas | |||||||||||||||
| EMEA | |||||||||||||||
| Systems | |||||||||||||||
| Consumables | |||||||||||||||
| Service | |||||||||||||||
| Total EMEA | |||||||||||||||
| Asia Pacific | |||||||||||||||
| Systems | |||||||||||||||
| Consumables | |||||||||||||||
| Service | |||||||||||||||
| Total Asia Pacific | |||||||||||||||
| Total Revenues | $ | $ | $ | $ | |||||||||||
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| (U.S. $ in thousands) | (U.S. $ in thousands) | ||||||||||||||
| Revenues recognized in point in time from: | |||||||||||||||
| Products | $ | $ | $ | $ | |||||||||||
| Services | |||||||||||||||
| Total revenues recognized in point in time | |||||||||||||||
| Revenues recognized over time from: | |||||||||||||||
| Services | |||||||||||||||
| Total revenues recognized over time | |||||||||||||||
| Total Revenues | $ | $ | $ | $ | |||||||||||
STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
Contract Assets and Contract Liabilities
Contract assets are recorded when the Company's right to consideration is conditional on constraints other than the passage of time. The Company had no material contract assets as of June 30, 2023 and December 31, 2022.
Contract liabilities include advance payments and billings in excess of revenue recognized, which are primarily related to advanced billings for service type warranty. Contract liabilities are presented under deferred revenue.
| June 30, 2023 | December 31, 2022 | ||||||
| U.S. $ in thousands | |||||||
| Deferred revenue* | $ | $ | |||||
*
Revenue recognized in 2023 that was included in deferred revenue balance as of December 31, 2022 was $
Remaining Performance Obligations
Remaining Performance Obligations (“RPO“) represent contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. As of June 30, 2023, the total RPO amounted to $
Incremental Costs of Obtaining a Contract
Sales commissions earned mainly by the Company’s sales agents are considered incremental costs of obtaining a contract with a customer, as the Company expects the benefit of those commissions to be longer than one year. The majority of the sales commissions are not subject to capitalization, as the commission expense is recognized as the related revenue is recognized. Sales commissions for initial contracts related to the service type warranty are deferred and then amortized on a straight-line basis over the expected customer relationship period if the Company expects to recover those costs. Amortization expense is included in selling, general and administrative expenses in the consolidated statements of operations and comprehensive loss. As of June 30, 2023 and December 31, 2022, the deferred commissions amounted to $
STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
Note 6. Inventories
| June 30, 2023 | December 31, 2022 | ||||||
| U.S. $ in thousands | |||||||
| Finished goods | $ | $ | |||||
| Work-in-process | |||||||
| Raw materials | |||||||
| $ | $ | ||||||
Note 7. Goodwill and Other Intangible Assets
Goodwill
| U.S. $ in thousands | ||||
| Goodwill as of January 1, 2023 | $ | |||
| Goodwill acquired | ||||
| Foreign currency translation adjustments | ||||
| Goodwill as of June 30, 2023 | $ |
Other Intangible Assets
| June 30, 2023 | December 31, 2022 | |||||||||||||||||||||||
| Carrying Amount, | Net | Carrying Amount, | Net | |||||||||||||||||||||
| Net of | Accumulated | Book | Net of | Accumulated | Book | |||||||||||||||||||
| Impairment | Amortization | Value | Impairment | Amortization | Value | |||||||||||||||||||
| U.S. $ in thousands | ||||||||||||||||||||||||
| Developed technology | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | ||||||||||||||
| Patents | ( | ) | ( | ) | ||||||||||||||||||||
| Trademarks and trade names | ( | ) | ( | ) | ||||||||||||||||||||
| Customer relationships | ( | ) | ( | ) | ||||||||||||||||||||
| Capitalized software development costs | ( | ) | ( | ) | ||||||||||||||||||||
| $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | |||||||||||||||
Amortization expenses relating to intangible assets for the three-month periods ended June 30, 2023 and 2022 were approximately $
| Estimated | ||||
| amortization expenses | ||||
| (U.S. $ in thousands) | ||||
| Remaining 6 months of 2023 | $ | |||
| 2024 | ||||
| 2025 | ||||
| 2026 | ||||
| 2027 | ||||
| 2028 and thereafter | ||||
| Total | $ |
Note 8. Net Loss Per Share
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| In thousands, except per share amounts | In thousands, except per share amounts | ||||||||||||||
| Numerator: | |||||||||||||||
| $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| Denominator: | |||||||||||||||
| Net loss per share | |||||||||||||||
| $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
The computation of diluted net loss per share excluded share awards of
The computation of diluted net loss per share excluded share awards of
STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
Note 9. Income Taxes
The
Company had income tax expense of $
Note 10. Fair Value Measurements
Financial instruments measured at fair value
| June 30, 2023 | December 31, 2022 | ||||||||||||||
| Level 2 | Level 3 | Level 2 | Level 3 | ||||||||||||
| (U.S. $ in thousands) | |||||||||||||||
| Assets: | |||||||||||||||
| Foreign exchange forward contracts not designated as hedging instruments | $ | $ | $ | $ | |||||||||||
| Foreign exchange forward contracts designated as hedging instruments | |||||||||||||||
| Liabilities: | |||||||||||||||
| Foreign exchange forward contracts not designated as hedging instruments | ( | ) | ( | ) | |||||||||||
| Foreign exchange forward contracts designated as hedging instruments | ( | ) | ( | ) | |||||||||||
| Convertible notes | |||||||||||||||
| Contingent consideration* | |||||||||||||||
| $ | ( | ) | $ | $ | ( | ) | $ | ||||||||
The Company's foreign exchange forward contracts are classified as Level 2, as they are not actively traded and are valued using pricing models that use observable market inputs, including interest rate curves and both forward and spot prices for currencies (Level 2 inputs).
Contingent consideration represents liabilities recorded at fair value in connection with acquisitions, and thus represents a Level 3 measurement within the fair value hierarchy (refer to Note 3).
Other financial instruments consist mainly of cash and cash equivalents, short-term deposits, current and non-current receivables, accounts payable and other current liabilities. The fair value of these financial instruments approximates their carrying values.
STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
Note 11. Derivative instruments and hedging activities
Since the Company conducts its operations globally, it is exposed to global market risks and to the risk that its earnings, cash flows and equity could be adversely impacted by fluctuations in foreign currency exchange rates. The Company enters into transactions involving foreign currency exchange derivative financial instruments. The Company manages its foreign currency exposures on a consolidated basis, which allows the Company to net exposures and take advantage of any natural hedging. The transactions are designed to manage the Company’s net exposure to foreign currency exchange rates and to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. The Company does not enter into derivative transactions for trading purposes.
The Company is primarily exposed to foreign exchange risk with respect to recognized assets and liabilities and forecasted transactions denominated in the New Israeli Shekel (“NIS”), Euro, British Pound, Korean Won, Chinese Yuan and the Japanese Yen. The gains and losses on the hedging instruments partially offset losses and gains on the hedged items. Financial markets and currency volatility may limit the Company’s ability to hedge these exposures. These contracts mature through June 2023.
| Fair Value | Notional Amount | |||||||||||||||||
| June 30, | December 31, | June 30, | December 31, | |||||||||||||||
| Balance sheet location | 2023 | 2022 | 2023 | 2022 | ||||||||||||||
| U.S. $ in thousands | ||||||||||||||||||
| Assets derivatives -Foreign exchange contracts, not designated as hedging instruments | Other current assets | $ | $ | $ | $ | |||||||||||||
| Assets derivatives -Foreign exchange contracts, designated as cash flow hedge | Other current assets | |||||||||||||||||
| Liability derivatives -Foreign exchange contracts, not designated as hedging instruments | Accrued expenses and other current liabilities | ( | ) | ( | ) | |||||||||||||
| Liability derivatives -Foreign exchange contracts, designated as hedging instruments | Accrued expenses and other current liabilities | ( | ) | ( | ) | |||||||||||||
| $ | ( | ) | $ | ( | ) | $ | $ | |||||||||||
Foreign exchange contracts not designated as hedging instruments
As of June 30, 2023, the notional amounts of the Company’s outstanding exchange forward contracts, not designated as hedging instruments, were $
Cash Flow Hedging - Hedges of forecasted foreign currency payroll and other operating expenses
As of June 30, 2023, the Company had in effect foreign exchange forward contracts, designated as cash flow hedges for accounting purposes, for the conversion of $
Cash Flow Hedging - Hedges of forecasted foreign currency revenue
As of June 30, 2023, the Company had in effect foreign exchange forward contracts, designated as cash flow hedges for accounting purposes, for the conversion of
STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
Note 12. Equity
a. Stock-based compensation plans
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| U.S $ in thousands | U.S $ in thousands | ||||||||||||||
| Cost of revenues | $ | $ | $ | $ | |||||||||||
| Research and development, net | |||||||||||||||
| Selling, general and administrative | |||||||||||||||
| Total stock-based compensation expenses | $ | $ | $ | $ | |||||||||||
| Number of Options | Weighted Average Exercise Price | ||||||
| Options outstanding as of January 1, 2023 | |||||||
| Granted | |||||||
| Exercised | ( | ) | |||||
| Forfeited | ( | ) | |||||
| Options outstanding as of June 30, 2023 | |||||||
| Options exercisable as of June 30, 2023 |
As of June 30, 2023, the unrecognized compensation cost of $
STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
| Number of RSUs and PSUs | Weighted Average Grant Date Fair Value | ||||||
| Unvested as of January 1, 2023 | |||||||
| Granted | |||||||
| Vested | ( | ) | |||||
| Forfeited | ( | ) | |||||
| Unvested as of June 30, 2023 |
The fair value of RSUs and PSUs is determined based on the quoted price of the Company’s ordinary shares on the date of the grant.
As of June 30, 2023, the unrecognized compensation cost of $
Employee Stock Purchase Plan
On October 2021, the Company adopted the 2021 Employee Stock Purchase Plan (the “ESPP”). According to the ESPP, eligible employees may use up to
In accordance with ASC Topic 718, the ESPP is considered compensatory and, as such, results in recognition of stock-based compensation expenses.
b. Accumulated other comprehensive loss
| Six Months Ended June 30, 2023 | |||||||||||
| Net Unrealized Gain (Loss) on Cash Flow Hedges | Foreign Currency Translation Adjustments | Total | |||||||||
| U.S. $ in thousands | |||||||||||
| Balance as of January 1, 2023 | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||
| Other comprehensive income (loss) before reclassifications | ( | ) | ( | ) | |||||||
| Amounts reclassified from accumulated other comprehensive loss | |||||||||||
| Other comprehensive loss | ( | ) | |||||||||
| Balance as of June 30, 2023 | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||
| Six Months Ended June 30, 2022 | |||||||||||
| Net Unrealized Gain (Loss) on Cash Flow Hedges | Foreign Currency Translation Adjustments | Total | |||||||||
| U.S. $ in thousands | |||||||||||
| Balance as of January 1, 2022 | $ | $ | ( | ) | $ | ( | ) | ||||
| Other comprehensive income before reclassifications | ( | ) | ( | ) | ( | ) | |||||
| Amounts reclassified from accumulated other comprehensive loss | ( | ) | ( | ) | |||||||
| Other comprehensive income | ( | ) | ( | ) | ( | ) | |||||
| Balance as of June 30, 2022 | $ | $ | ( | ) | $ | ( | ) | ||||
STRATASYS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
On July 24, 2022, the
Company’s Board of Directors adopted a shareholder rights plan (the “Rights
Plan”) to protect the interests of the Company’s shareholders. Each Right
entitles the registered holder thereof to purchase from the Company one ordinary
share, par value NIS
The adoption of the Rights
Plan is intended to protect the long-term interests of Stratasys and all Stratasys
shareholders. The Rights Plan is designed to reduce the likelihood that any
entity, person, or group would gain control of, or significant influence over,
Stratasys through the open-market accumulation of the Company’s shares without
appropriately compensating all Stratasys shareholders for control. The
Rights Plan will encourage anyone seeking to gain a significant interest in
Stratasys to negotiate directly with the Board prior to attempting to control
or significantly influence the Company. Further to those goals, the Rights may
cause substantial dilution to a person or group that acquires
Note 13. Contingencies
Legal proceedings
OPERATING AND FINANCIAL REVIEW AND PROSPECTS.
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited consolidated financial statements and the related notes included as Exhibit 99.1 to the Report of Foreign Private Issuer on Form 6-K to which this Operating and Financial Review and Prospects is attached, or the Form 6-K. The discussion below contains forward-looking statements (within the meaning of the United States federal securities laws) that are based upon our current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to inaccurate assumptions and known or unknown risks and uncertainties, including those identified in “Forward-Looking Statements and Factors that May Affect Future Results of Operations”, below, as well in the “Risk Factors” in Item 3.D of our Annual Report on Form 20-F for the year ended December 31, 2022, filed with the Securities and Exchange Commission, or SEC, on March 3, 2023, or our 2022 Annual Report, as updated by the “Risk Factors” section below.
Overview of Business and Trend Information
Business Performance in Macro-Economic Environment
Summary of Financial Results
Results of Operations
Comparison of Three Months Ended June 30, 2023 to Three Months Ended June 30, 2022
The following table sets forth certain statement of operations data for the periods indicated:
| Three Months Ended June 30, | |||||||||||||||
| 2023 | 2022 | ||||||||||||||
| U.S. $ in thousands | % of Revenues | U.S. $ in thousands | % of Revenues | ||||||||||||
| Revenues | $ | 159,751 | 100.0 | % | $ | 166,603 | 100.0 | % | |||||||
| Cost of revenues | 93,529 | 58.5 | % | 99,210 | 59.5 | % | |||||||||
| Gross profit | 66,222 | 41.5 | % | 67,393 | 40.5 | % | |||||||||
| Research and development, net | 24,305 | 15.2 | % | 24,346 | 14.6 | % | |||||||||
| Selling, general and administrative | 75,576 | 47.3 | % | 66,592 | 40.0 | % | |||||||||
| Operating loss | (33,659 | ) | (21.1 | )% | (23,545 | ) | (14.1 | )% | |||||||
| Financial income (expenses), net | 687 | 0.4 | % | (1,170 | ) | (0.7 | )% | ||||||||
| Loss before income taxes | (32,972 | ) | (20.6 | )% | (24,715 | ) | (14.8 | )% | |||||||
| Income tax benefit (expenses) | (725 | ) | (0.5 | )% | 429 | 0.3 | % | ||||||||
| Share in losses of associated companies | (4,918 | ) | (3.1 | )% | (99 | ) | (0.1 | )% | |||||||
| Net loss | (38,615 | ) | (24.2 | )% | (24,385 | ) | (14.6 | )% | |||||||
Discussion of Results of Operations
Revenues
Our products and services revenues in the three months ended June 30, 2023 and 2022, as well as the percentage change reflected thereby, were as follows:
| Three Months Ended June 30, | |||||||||||||||
| 2023 | 2022 | % Change | |||||||||||||
| U.S. $ in thousands | |||||||||||||||
| Products | $ | 109,112 | $ | 115,721 | (5.7 | )% | |||||||||
| Services | 50,639 | 50,882 | (0.5 | )% | |||||||||||
| Total Revenues | $ | 159,751 | $ | 166,603 | (4.1 | )% | |||||||||
Services Revenues
Revenues by Region
Revenues and the percentage of revenues by region for the three months ended June 30, 2023 and 2022, as well as the percentage change in revenues in each such region reflected thereby, were as follows:
| Three Months Ended June 30, | ||||||||||||||||||||
| 2023 | 2022 | % Change | ||||||||||||||||||
| U.S.$ in thousands | % of Revenues | U.S.$ in thousands | % of Revenues | |||||||||||||||||
| Americas* | $ | 102,195 | 64.0 | % | $ | 107,225 | 64.4 | % | (4.7 | )% | ||||||||||
| EMEA | 36,884 | 23.1 | % | 35,212 | 21.1 | % | 4.7 | % | ||||||||||||
| Asia Pacific | 20,672 | 12.9 | % | 24,166 | 14.5 | % | (14.5 | )% | ||||||||||||
| $ | 159,751 | 100.0 | % | $ | 166,603 | 100.0 | % | (4.1 | )% | |||||||||||
* Represent the United States, Canada and Latin America
Gross Profit
Gross profit from our products and services, as well as the percentage change reflected thereby, was as follows:
| Three Months Ended June 30, | ||||||||||||
| 2023 | 2022 | |||||||||||
| U.S. $ in thousands | Change in % | |||||||||||
| Gross profit attributable to: | ||||||||||||
| Products | $ | 51,536 | $ | 54,589 | (5.6 | )% | ||||||
| Services | 14,686 | 12,804 | 14.7 | % | ||||||||
| $ | 66,222 | $ | 67,393 | (1.7 | )% | |||||||
Gross profit as a percentage of revenues from our products and services was as follows:
| Three Months Ended June 30, | ||||||||
| 2023 | 2022 | |||||||
| Gross profit as a percentage of revenues from: | ||||||||
| Products | 47.2 | % | 47.2 | % | ||||
| Services | 29.0 | % | 25.2 | % | ||||
| Total gross margin | 41.5 | % | 40.5 | % | ||||
Operating Expenses
The amount of each type of operating expense for the three months ended June 30, 2023 and 2022, as well as the percentage change reflected thereby, and total operating expenses as a percentage of our total revenues in each such quarter, were as follows:
| Three Months Ended June 30, | ||||||||||||
| 2023 | 2022 | % Change | ||||||||||
| U.S. $ in thousands | ||||||||||||
| Research and development, net | $ | 24,305 | $ | 24,346 | (0.2 | )% | ||||||
| Selling, general and administrative | 75,576 | 66,592 | 13.5 | % | ||||||||
| 99,881 | 90,938 | 9.8 | % | |||||||||
| Percentage of revenues | 62.5 | % | 54.6 | % | ||||||||
Operating Loss
Operating loss and operating loss as a percentage of our total revenues were as follows:
| Three Months Ended June 30, | |||||||||
| 2023 | 2022 | ||||||||
| U.S. $ in thousands | |||||||||
| Operating loss | $ | (33,659 | ) | $ | (23,545 | ) | |||
| Percentage of revenues | (21.1 | )% | (14.1 | )% | |||||
Financial Income (Expenses), net
Income Taxes
Income tax benefit (expenses) and income tax benefit (expenses) as a percentage of net loss before taxes, as well as the percentage change in each, year over year, reflected thereby, were as follows:
| Three Months Ended June 30, | ||||||||
| 2023 | 2022 | |||||||
| U.S. $ in thousands | ||||||||
| Income tax benefit (expenses) | $ | (725 | ) | $ | 429 | |||
| As a percentage of loss before income taxes | (2.2 | )% | 1.7 | % | ||||
We had an effective tax rate of 2.2% for the three-month period ended June 30, 2023, compared to an effective tax rate of 1.7% for the three-month period ended June 30, 2022. Our effective tax rate in the second quarter of 2023 was primarily impacted by the geographic mix of foreign taxable earnings and losses, as well as our valuation allowance.
Share in Losses of Associated Companies
Net Loss and Net Loss Per Share
Net loss, and net loss per share were as follows:
| Three Months Ended June 30, | ||||||||
| 2023 | 2022 | |||||||
| U.S. $ in thousands | ||||||||
| Net loss | $ | (38,615 | ) | $ | (24,385 | ) | ||
| Percentage of revenues | (24.2 | )% | (14.6 | )% | ||||
| Basic and diluted net loss per share | $ | (0.56 | ) | $ | (0.37 | ) | ||
Net loss per share was $0.56 for the three months ended June 30, 2023 as compared to net loss per share of $0.37 for the three months ended June 30, 2022. The weighted average fully diluted share count was 68.6 million during the three months ended June 30, 2023, compared to 66.6 million during the three months ended June 30, 2022.
Results of Operations
Comparison of Six Months Ended June 30, 2023 to Six Months Ended June 30, 2022
The following table sets forth certain statement of operations data for the periods indicated:
| Six Months Ended June 30, | |||||||||||||||
| 2023 | 2022 | ||||||||||||||
| U.S. $ in thousands | % of Revenues | U.S. $ in thousands | % of Revenues | ||||||||||||
| Revenues | $ | 309,128 | 100.0 | % | $ | 330,032 | 100.0 | % | |||||||
| Cost of revenues | 177,511 | 57.4 | % | 192,962 | 58.5 | % | |||||||||
| Gross profit | 131,617 | 42.6 | % | 137,070 | 41.5 | % | |||||||||
| Research and development, net | 45,780 | 14.8 | % | 48,344 | 14.6 | % | |||||||||
| Selling, general and administrative | 136,293 | 44.1 | % | 131,855 | 40.0 | % | |||||||||
| Operating loss | (50,456 | ) | (16.3 | )% | (43,129 | ) | (13.1 | )% | |||||||
| Financial income(expenses), net | 1,460 | 0.5 | % | (2,532 | ) | (0.8 | )% | ||||||||
| Loss before income taxes | (48,996 | ) | (15.8 | )% | (45,661 | ) | (13.8 | )% | |||||||
| Income tax benefit(expenses) | (4,500 | ) | (1.5 | )% | 502 | 0.2 | % | ||||||||
| Share in losses of associated companies | (7,343 | ) | (2.4 | )% | (174 | ) | (0.1 | )% | |||||||
| Net loss | (60,839 | ) | (19.7 | )% | (45,333 | ) | (13.7 | )% | |||||||
Discussion of Results of Operations
Revenues
Our products and services revenues in the six months ended June 30, 2023 and 2022, as well as the percentage change reflected thereby, were as follows:
| Six Months Ended June 30, | ||||||||||||
| 2023 | 2022 | % Change | ||||||||||
| U.S. $ in thousands | ||||||||||||
| Products | $ | 210,083 | $ | 228,794 | (8.2 | )% | ||||||
| Services | 99,045 | 101,238 | (2.2 | )% | ||||||||
| Total Revenues | $ | 309,128 | $ | 330,032 | (6.3 | )% | ||||||
Products Revenues
Services Revenues
Revenues by Region
Revenues and the percentage of revenues by region for the six months ended June 30, 2023 and 2022, as well as the percentage change in revenues in each such region reflected thereby, were as follows:
| Six Months Ended June 30, | ||||||||||||||||||||
| 2023 | 2022 | % Change | ||||||||||||||||||
| U.S.$ in thousands | % of Revenues | U.S.$ in thousands | % of Revenues | |||||||||||||||||
| Americas* | $ | 192,275 | 62.2 | % | $ | 205,792 | 62.4 | % | (6.6 | )% | ||||||||||
| EMEA | 74,764 | 24.2 | % | 75,267 | 22.8 | % | (0.7 | )% | ||||||||||||
| Asia Pacific | 42,089 | 13.6 | % | 48,973 | 14.8 | % | (14.1 | )% | ||||||||||||
| $ | 309,128 | 100.0 | % | $ | 330,032 | 100.0 | % | (6.3 | )% | |||||||||||
* Consists of the United States, Canada and Latin America
Gross Profit
Gross profit from our products and services, as well as the percentage change reflected thereby, were as follows:
| Six Months Ended June 30, | ||||||||||||
| 2023 | 2022 | |||||||||||
| U.S. $ in thousands | Change in % | |||||||||||
| Gross profit attributable to: | ||||||||||||
| Products | $ | 101,394 | $ | 108,289 | (6.4 | ) % | ||||||
| Services | 30,223 | 28,781 | 5.0 | % | ||||||||
| $ | 131,617 | $ | 137,070 | (4.0 | ) % | |||||||
Gross profit as a percentage of revenues from our products and services was as follows:
| Six Months Ended June 30, | ||||||||
| 2023 | 2022 | |||||||
| Gross profit as a percentage of revenues from: | ||||||||
| Products | 48.3 | % | 47.3 | % | ||||
| Services | 30.5 | % | 28.4 | % | ||||
| Total gross margin | 42.6 | % | 41.5 | % | ||||
Operating Expenses
The amount of each type of operating expense for the six months ended June 30, 2023 and 2022, as well as the percentage change from period to period reflected thereby, and total operating expenses as a percentage of our total revenues in each such six month period, were as follows:
| Six Months Ended June 30, | ||||||||||||
| 2023 | 2022 | % Change | ||||||||||
| U.S. $ in thousands | ||||||||||||
| Research and development, net | $ | 45,780 | $ | 48,344 | (5.3 | )% | ||||||
| Selling, general and administrative | 136,293 | 131,855 | 3.4 | % | ||||||||
| $ | 182,073 | $ | 180,199 | 1.0 | % | |||||||
| Percentage of revenues | 58.9 | % | 54.6 | % | ||||||||
Operating expenses were $182.1 million in the six months ended June 30, 2023, compared to operating expenses of $180.2 million in the six months ended June 30, 2022. The increase in operating expenses was primarily driven by costs related to prospective and potential mergers and acquisitions, defense against hostile tender offer, proxy contest and related professional fees in an aggregate amount of $13.3 million and recent acquisitions related costs of $4.4 million, partially offset by the impact of divestiture of MakerBot of $10.0 million and unfavorable exchange rate costs in a total amount of $4.4 million.
Operating Loss
Operating loss and operating loss as a percentage of our total revenues were as follows:
| Six Months Ended June 30, | |||||||||
| 2023 | 2022 | ||||||||
| U.S. $ in thousands | |||||||||
| Operating loss | $ | (50,456 | ) | $ | (43,129 | ) | |||
| Percentage of revenues | (16.3 | )% | (13.1 | )% | |||||
Operating loss amounted to $50.5 million for the six months ended June 30, 2023, compared to an operating loss of $43.1 million for the six months ended June 30, 2022. Our operating loss increased both on an absolute basis, and as a percentage of our revenues in the first half of 2023 compared to the first half of 2022, for the reasons described in the discussion of the above line items.
Financial Expenses (Income), net
Financial income, net, which was primarily comprised of foreign currencies effects, interest income and interest expenses, was $1.5 million for the six months ended June 30, 2023, compared to $2.5 million of financial expenses, net for the six months ended June 30, 2022.
Income Taxes
Income tax benefit (expenses) and income tax benefit (expenses) as a percentage of net loss before taxes, as well as the percentage change in each period over period, reflected thereby, were as follows:
| Six Months Ended June 30, | ||||||||||
| 2023 | 2022 | |||||||||
| U.S. $ in thousands | ||||||||||
| Income tax benefit(expenses) | $ | (4,500 | ) | $ | 502 | |||||
| As a percent of loss before income taxes | (9.2 | )% | 1.1 | % | ||||||
Share in Losses of Associated Companies
Share in losses of associated companies reflects our proportionate share of the losses of unconsolidated entities accounted for by using the equity method of accounting. During the six months ended June 30, 2023, the loss from our proportionate share of the earnings of our equity method investments was $7.3 million, compared to a loss of $0.2 million in the six months ended June 30, 2022 as a result of our divestiture of MakerBot and investment in Ultimaker.
Net Loss and Net Loss Per Share
Net loss (on an absolute basis and as a percentage of revenues), and net loss per share were as follows:
| Six Months Ended June 30, | ||||||||
| 2023 | 2022 | |||||||
| U.S. $ in thousands | ||||||||
| Net loss | $ | (60,839 | ) | $ | (45,333 | ) | ||
| Percentage of revenues | (19.7 | )% | (13.7 | )% | ||||
| Basic and diluted net loss per share | $ | (0.89 | ) | $ | (0.69 | ) | ||
The following non-GAAP data, which excludes certain items as described below, are non-GAAP financial measures. Our management believes that these non-GAAP financial measures are useful information for investors and shareholders of our company in gauging our results of operations (i) on an ongoing basis after excluding mergers, acquisitions and restructuring-related charges or gains, legal provisions and (ii) excluding non-cash items such as stock-based compensation expenses, acquired intangible assets amortization, including intangible assets amortization related to equity method investments, impairment of long-lived assets and goodwill, revaluation of our investments and the corresponding tax effect of those items.
Reconciliation of GAAP to Non-GAAP Results of Operations
The following tables present the GAAP measures, the corresponding non-GAAP amounts and the related non-GAAP adjustments for the applicable periods:
| Three Months Ended June 30, | ||||||||||||||||||||||||||
| 2023 | Non-GAAP | 2023 | 2022 | Non-GAAP | 2022 | |||||||||||||||||||||
| GAAP | Adjustments | Non-GAAP | GAAP | Adjustments | Non-GAAP | |||||||||||||||||||||
| U.S. dollars and shares in thousands (except per share amounts) | ||||||||||||||||||||||||||
| Gross profit (1) | $66,222 | $11,283 | $77,505 | $67,393 | $11,914 | $79,307 | ||||||||||||||||||||
| Operating income (loss) (1,2) | (33,659 | ) | 38,666 | 5,007 | (23,545 | ) | 25,479 | 1,934 | ||||||||||||||||||
| Net income (loss) (1,2,3) | (38,615 | ) | 41,148 | 2,533 | (24,385 | ) | 25,560 | 1,175 | ||||||||||||||||||
| Net income (loss) per diluted share (4) | $ | (0.56 | ) | $ | 0.60 | $ | 0.04 | $ | (0.37 | ) | $ | 0.39 | $ | 0.02 | ||||||||||||
| (1) | Acquired intangible assets amortization expense | 5,014 | 6,954 | |||||||||||||||||||||||
| Non-cash stock-based compensation expense | 999 | 1,080 | ||||||||||||||||||||||||
| Restructuring and other related costs | 3,378 | 15 | ||||||||||||||||||||||||
| Impairment charges and write off | 1,892 | 3,865 | ||||||||||||||||||||||||
| 11,283 | 11,914 | |||||||||||||||||||||||||
| (2) | Acquired intangible assets amortization expense | 2,686 | 2,218 | |||||||||||||||||||||||
| Non-cash stock-based compensation expense | 7,024 | 7,751 | ||||||||||||||||||||||||
| Restructuring and other related costs | 2,468 | - | ||||||||||||||||||||||||
| Revaluation of investments | - | 1,255 | ||||||||||||||||||||||||
| Contingent consideration | 347 | 596 | ||||||||||||||||||||||||
| Legal, consulting and other expenses | 14,858 | 1,745 | ||||||||||||||||||||||||
| 27,383 | 13,565 | |||||||||||||||||||||||||
| 38,666 | 25,479 | |||||||||||||||||||||||||
| (3) | Corresponding tax effect | 213 | 81 | |||||||||||||||||||||||
| Finance expenses | 175 | - | ||||||||||||||||||||||||
| Equity method related amortization and other | 2,094 | - | ||||||||||||||||||||||||
| $41,148 | $25,560 | |||||||||||||||||||||||||
| (4 | ) | Weighted average number of ordinary shares outstanding- Diluted | 68,648 | 69,272 | 66,568 | 67,070 | ||||||||||||||||||||
| Six Months Ended June 30, | ||||||||||||||||||||||||
| 2023 | Non-GAAP | 2023 | 2022 | Non-GAAP | 2022 | |||||||||||||||||||
| GAAP | Adjustments | Non-GAAP | GAAP | Adjustments | Non-GAAP | |||||||||||||||||||
| U.S. dollars and shares in thousands (except per share amounts) | ||||||||||||||||||||||||
| Gross profit (1) | $ | 131,617 | $ | 16,582 | $ | 148,199 | $ | 137,070 | $ | 19,603 | $ | 156,673 | ||||||||||||
| Operating income (loss) (1,2) | (50,456 | ) | 56,981 | 6,525 | (43,129 | ) | 47,086 | 3,957 | ||||||||||||||||
| Net income (loss) (1,2,3) | (60,839 | ) | 64,454 | 3,615 | (45,333 | ) | 47,718 | 2,385 | ||||||||||||||||
| Net income (loss) per diluted share (4) | $ | (0.89 | ) | $ | 0.95 | $ | 0.05 | $ | (0.69 | ) | $ | 0.73 | $ | 0.04 | ||||||||||
| (1) | Acquired intangible assets amortization expense | 9,015 | 13,920 | |||||||||||||||||||||
| Non-cash stock-based compensation expense | 1,931 | 1,980 | ||||||||||||||||||||||
| Restructuring and other related costs | 3,744 | (162 | ) | |||||||||||||||||||||
| Impairment charges and write off | 1,892 | 3,865 | ||||||||||||||||||||||
| 16,582 | 19,603 | |||||||||||||||||||||||
| (2) | Acquired intangible assets amortization expense | 4,880 | 4,443 | |||||||||||||||||||||
| Non-cash stock-based compensation expense | 14,332 | 15,384 | ||||||||||||||||||||||
| Restructuring and other related costs | 4,266 | 555 | ||||||||||||||||||||||
| Revaluation of investments | 580 | 2,316 | ||||||||||||||||||||||
| Contingent consideration | 612 | 803 | ||||||||||||||||||||||
| Legal, consulting and other expenses | 15,729 | 3,982 | ||||||||||||||||||||||
| 40,399 | 27,483 | |||||||||||||||||||||||
| 56,981 | 47,086 | |||||||||||||||||||||||
| (3) | Corresponding tax effect | 3,251 | - | |||||||||||||||||||||
| Finance expenses | $ | 638 | $ | 226 | ||||||||||||||||||||
| Equity method related amortization and other | $ | 3,584 | $ | 406 | ||||||||||||||||||||
| $ | 64,454 | $ | 47,718 | |||||||||||||||||||||
| (4) | Weighted average number of ordinary shares outstanding- Diluted | 68,107 | 68,683 | 66,151 | 67,071 | |||||||||||||||||||
Liquidity and Capital Resources
A summary of our statements of cash flows is as follows:
| Six Months Ended June 30, | |||||||
| 2023 | 2022 | ||||||
| U.S $ in thousands | |||||||
| Net loss | $ | (60,839 | ) | $ | (45,333 | ) | |
| Depreciation and amortization | 24,343 | 29,924 | |||||
| Impairment of other long-lived assets | 919 | 3,865 | |||||
| Stock-based compensation | 16,263 | 17,364 | |||||
| Foreign currency transactions loss | 1,967 | 10,318 | |||||
| Other non-cash items, net | 10,633 | 2,658 | |||||
| Change in working capital and other items | (34,453 | ) | (57,705 | ) | |||
| Net cash used in operating activities | (41,167 | ) | (38,909 | ) | |||
| Net cash provided by investing activities | 36,628 | 63,172 | |||||
| Net cash used in financing activities | (682 | ) | (864 | ) | |||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (824 | ) | (7,413 | ) | |||
| Net change in cash, cash equivalents and restricted cash | (6,045 | ) | 15,986 | ||||
| Cash, cash equivalents and restricted cash, beginning of period | 150,686 | 243,293 | |||||
| Cash, cash equivalents and restricted cash, end of period | 144,641 | 259,279 | |||||
Cash used in operating activities
Cash flows from investing activities
Cash used in financing activities
Capital resources and capital expenditures
Critical Accounting Estimates
Forward-Looking Statements and Factors That May Affect Future Results of Operations
•
the extent of our success at introducing new or improved products and solutions that gain market share;
•
the extent of growth of the 3D printing market generally;
•
the global macro-economic environment, including headwinds caused by inflation, rising interest rates, changing currency exchange rates and potential recessionary conditions;
•
changes in our overall strategy, including as related to any restructuring activities and our capital expenditures;
•
the impact of shifts in prices or margins of the products that we sell or services we provide;
•
the impact of competition and new technologies;
•
the ultimate outcome of the prospective transaction between Stratasys and Desktop Metal, including the possibility that Stratasys shareholders or Desktop Metal stockholders will reject the proposed transaction;
•
the effect of the announcement of the prospective transaction on our ability to operate our business and retain and hire key personnel and to maintain favorable business relationships;
•
the timing of the prospective merger with Desktop Metal;
•
the occurrence of any event, change or other circumstance that could give rise to the termination of the prospective merger with Desktop Metal;
•
the extent to which the parties are able to satisfy closing conditions to the completion of the prospective merger between Stratasys and Desktop Metal;
•
the impact of unsolicited non-binding indicative proposals by 3D Systems to acquire our company and whether any such proposal is ultimately determined by our board of directors to be a “Superior Proposal” under our merger agreement with Desktop Metal;
•
impairments of goodwill or other intangible assets in respect of companies that we acquire;
•
the extent of our success at efficiently and successfully integrating the operations of various companies that we have acquired or may acquire;
•
the degree of our success at locating and acquiring additional value-enhancing, inorganic technology that furthers our business plan to lead in the realm of polymers;
•
the potential adverse impact that recent global interruptions and delays involving freight carriers and other third parties have been and may continue to have on our supply chain and distribution network, and, consequently, our ability to successfully sell both our existing and newly-launched 3D printing products;
•
the potential adverse effects that inflation, and actions taken to reduce inflation, such as increased interest rates, are having or may have on the macro-economic environment, and the degree of our resilience (and that of our customers and suppliers) to those effects, which may have significant consequences for our operations, financial position and cash flows;
•
global market, political and economic conditions, and in the countries in which we operate in particular;
•
government regulations and approvals;
•
litigation and regulatory proceedings;
•
infringement of our intellectual property rights by others (including for replication and sale of consumables for use in our systems), or infringement of others’ intellectual property rights by us;
•
potential cyber attacks against, or other breaches to, our information technologies systems;
• the extent of our success at maintaining our liquidity and financing our operations and capital needs;
•
impact of tax regulations on our results of operations and financial conditions;
•
those factors referred to in Item 3.D, “Key Information - Risk Factors”, Item 4, “Information on the Company”, and Item 5, “Operating and Financial Review and Prospects” in our 2022 Annual Report, as supplemented herein, as well as in other portions of the 2022 Annual Report Readers are urged to carefully review and consider the various disclosures made throughout the Form 6-K, our 2022 Annual Report, and in our other reports filed with or furnished to the SEC, which are designed to advise interested parties of the risks and factors that may affect our business, financial condition, results of operations and prospects.
QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
LEGAL PROCEEDINGS
RISK FACTORS
Document And Entity Information |
6 Months Ended |
|---|---|
Jun. 30, 2023 | |
| Document Information Line Items | |
| Entity Registrant Name | STRATASYS LTD. |
| Document Type | 6-K |
| Current Fiscal Year End Date | --12-31 |
| Amendment Flag | false |
| Entity Central Index Key | 0001517396 |
| Document Period End Date | Jun. 30, 2023 |
| Document Fiscal Year Focus | 2023 |
| Document Fiscal Period Focus | Q2 |
| Entity File Number | 001-35751 |
| Entity Address, Address Line One | 1 Holtzman Street |
| Entity Address, Address Line Two | Science Park |
| Entity Address, Address Line Three | P.O. Box 2496 |
| Entity Address, City or Town | Rehovot |
| Entity Address, Country | IL |
| Entity Address, Postal Zip Code | 76124 |
Consolidated Balance Sheets (Parentheticals) |
Jun. 30, 2023
USD ($)
shares
|
Jun. 30, 2023
₪ / shares
|
Dec. 31, 2022
USD ($)
shares
|
Dec. 31, 2022
₪ / shares
|
|---|---|---|---|---|
| Statement of Financial Position [Abstract] | ||||
| Accounts receivable, net of allowance for credit losses (in Dollars) | $ | $ 800 | $ 900 | ||
| Ordinary shares, par value (in New Shekels per share) | ₪ / shares | ₪ 0.01 | ₪ 0.01 | ||
| Ordinary shares, authorized | 180,000 | 180,000 | ||
| Ordinary shares, issued | 68,942 | 67,086 | ||
| Ordinary shares, outstanding | 68,942 | 67,086 |
Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
| Revenues | ||||
| Revenues | $ 159,751 | $ 166,603 | $ 309,128 | $ 330,032 |
| Cost of revenues | ||||
| Cost of revenues | 93,529 | 99,210 | 177,511 | 192,962 |
| Gross profit | 66,222 | 67,393 | 131,617 | 137,070 |
| Operating expenses | ||||
| Research and development, net | 24,305 | 24,346 | 45,780 | 48,344 |
| Selling, general and administrative | 75,576 | 66,592 | 136,293 | 131,855 |
| Total operating expenses | 99,881 | 90,938 | 182,073 | 180,199 |
| Operating loss | (33,659) | (23,545) | (50,456) | (43,129) |
| Financial income (expenses), net | 687 | (1,170) | 1,460 | (2,532) |
| Loss before income taxes | (32,972) | (24,715) | (48,996) | (45,661) |
| Income tax benefit (expenses) | (725) | 429 | (4,500) | 502 |
| Share in losses of associated companies | (4,918) | (99) | (7,343) | (174) |
| Net loss | $ (38,615) | $ (24,385) | $ (60,839) | $ (45,333) |
| Net loss per share - basic (in Dollars per share) | $ (0.56) | $ (0.37) | $ (0.89) | $ (0.69) |
| Weighted average ordinary shares outstanding. - basic (in Shares) | 68,648 | 66,568 | 68,107 | 66,151 |
| Comprehensive loss | ||||
| Net loss | $ (38,615) | $ (24,385) | $ (60,839) | $ (45,333) |
| Other comprehensive income (loss), net of tax: | ||||
| Foreign currency translation adjustments | 579 | (2,789) | 1,834 | (3,491) |
| Unrealized gains (losses) on derivatives designated as cash flow hedges | 558 | (741) | (1,687) | (1,092) |
| Other comprehensive income (loss), net of tax | 1,137 | (3,530) | 147 | (4,583) |
| Comprehensive loss | (37,478) | (27,915) | (60,692) | (49,916) |
| Products | ||||
| Revenues | ||||
| Revenues | 109,112 | 115,721 | 210,083 | 228,794 |
| Cost of revenues | ||||
| Cost of revenues | 57,576 | 61,132 | 108,689 | 120,505 |
| Services | ||||
| Revenues | ||||
| Revenues | 50,639 | 50,882 | 99,045 | 101,238 |
| Cost of revenues | ||||
| Cost of revenues | $ 35,953 | $ 38,078 | $ 68,822 | $ 72,457 |
Consolidated Statements of Operations and Comprehensive Loss (Parentheticals) - $ / shares |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
| Income Statement [Abstract] | ||||
| Net loss per share - diluted | $ (0.56) | $ (0.37) | $ (0.89) | $ (0.69) |
| Weighted average ordinary shares outstanding. - diluted | 68,648 | 66,568 | 68,107 | 66,151 |
Business Description and Basis of Presentation |
6 Months Ended |
|---|---|
Jun. 30, 2023 | |
| Business Description and Basis of Presentation [Abstract] | |
| Business Description and Basis of Presentation | Note 1. Business Description and Basis of Presentation Stratasys Ltd. (collectively with its subsidiaries, the “Company” or “Stratasys”) is a global leader in connected, polymer-based 3D printing solutions, across the entire manufacturing value chain. The Company leverages its competitive advantages, which include a broad set of best-in-class 3D printing platforms, software, a materials and technology partner ecosystem, innovative leadership, and global GTM infrastructure, in order to position itself to capture share in a significant and growing global marketplace, with a focus on manufacturing, which the Company views as having the largest and fastest growing total addressable market. The Company’s approximately 2,400 granted and pending additive technology patents to date have been used to create models, prototypes, manufacturing tools, and production parts for a multitude of industries including aerospace, automotive, transportation, healthcare, consumer products, dental, medical, fashion and education. Stratasys’ products and comprehensive solutions improve product quality, development time, cost, time-to-market and patient care. The Company’s 3D ecosystem of solutions and expertise includes 3D printers, materials, software, expert services, and on-demand parts production. The condensed consolidated interim financial information herein is unaudited; however, such information reflects all adjustments (consisting of normal, recurring adjustments), which are, in the opinion of management, necessary for a fair statement of results for the interim period. The condensed consolidated interim financial statements include the accounts of Stratasys Ltd. and its subsidiaries. All intercompany accounts and transactions, including profits from intercompany sales not yet realized outside the Company, have been eliminated in consolidation.
The Company’s financial statements are prepared in conformity with U.S. generally accepted accounting principles (“GAAP”), which require the Company to make estimates based on assumptions about current and, for some estimates, future economic and market conditions which affect reported amounts and related disclosures in its financial statements. Although the Company’s current estimates contemplate current and expected future conditions, as applicable, it is reasonably possible that actual conditions could differ from the Company’s expectations, which could materially affect its results of operations and financial position. In particular, a number of estimates have been and will continue to be affected by global events and other longer-term macroeconomic conditions, most prominently, the extent and speed at which inflation subsides, whether interest rate hikes continue, tighter credit markets and whether capital markets and global supply chains fully recover. As a result, the accounting estimates and assumptions may change over time. Such changes could have an additional impact on the Company’s long-lived asset and intangible asset valuation; and the allowance for expected credit losses. These consolidated financial statements reflect the financial statement effects based upon management’s estimates and assumptions utilizing the most currently available information. The results of operations for the six and three months periods ended June 30, 2023 are not necessarily indicative of results that could be expected for the entire fiscal year. Certain financial information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. The reader is referred to the Company's audited consolidated financial statements and notes thereto for the year ended December 31, 2022, filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 3, 2023 as part of the Company’s Annual Report on Form 20-F for such year. |
New Accounting Pronouncements |
6 Months Ended |
|---|---|
Jun. 30, 2023 | |
| New Accounting Pronouncements [Abstract] | |
| New Accounting Pronouncements | Note 2. New Accounting Pronouncements Accounting Pronouncements Adopted in 2023 In October 2021, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2021-08 “Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers”, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers. The guidance will result in the acquiree. recognizing contract assets and contract liabilities at the same amounts recorded by the acquire. The guidance should be applied prospectively to acquisitions occurring on or after the effective date. The guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company adopted this guidance effective January 1, 2023, with no material impact on its consolidated financial statements. |
Certain Transactions |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Certain Transactions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Certain Transactions | Note 3. Certain Transactions MakerBot and Ultimaker transaction ("Ultimaker") On August 31, 2022, Stratasys completed the merger of MakerBot (previously, a fully owned subsidiary) with Ultimaker, which together formed a new entity under the name Ultimaker. The Company recorded a net gain of $39.1 million from deconsolidation of MakerBot, representing the difference between the book value of MakerBot's net assets and the fair value allocated to such net assets in the transaction as follows:
The Company accounts for its investment in the combined company Ultimaker according to the equity method in accordance with ASC Topic 323, as it has retained the ability to exercise significant influence but does not control the new entity. The Company recognized an equity method investment in a total amount of $105.6 million comprised of the assumed fair value of the MakerBot shares and additional amount invested in cash by the Company, representing a 46.5% share in the new entity. The preliminary allocation of the purchase price (“PPA”) to the underlying net assets acquired and liability assumed resulted in the recognition of intangible assets with a value of $57.8 million, goodwill of $22.3 million and other net assets of $25.5 million. The value assigned to intangible assets is amortized over a period of 5 to 10 years and the related amortization is included under share in net losses (profits) from associated companies. The estimated fair values are preliminary and based on the information that was available as of August 31, 2022. Thus, the measurements of fair value reflected in these assets are subject to changes and such changes could be significant. As of June 30, 2023 and December 31, 2022 the equity investment in Ultimaker amounted to $92.9 million and $100.2 million, respectively, which represented the original investment in Ultimaker, net of share in net losses for the respective periods (the six months ended June 30, 2023 and year ended December 31, 2022) in amounts of $7.3 million and $5.4 million, respectively. Following the acquisition, the Company will act as an agent to Ultimaker and will distribute products of Ultimaker. Transactions with Ultimaker for the period were immaterial. STRATASYS LTD. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) Covestro AG assets acquisition On April 3th, 2023 (the
"Covestro transaction date"), the Company completed a definitive
agreement to acquire the additive manufacturing materials business of Covestro
AG. Covestro’s
additive manufacturing business is expected to give the Company the ability to accelerate
innovative developments in 3D printing materials and to thereby further grow
adoption of its newest technologies. Also, the Company acquired an IP portfolio comprised of
hundreds of patents and pending patents, including all of the SOMOS™ portfolio. The
Covestro transaction is reflected in accordance with ASC Topic 805, “Business
Combinations”. The assets acquisition transaction
meets the definition of a business and was accounted for as a “Business Combinations”
transaction, using the acquisition method of accounting with the Company as the
acquirer. The following table summarizes the fair value of the consideration
transferred to Covestro AG for the Covestro transaction:
*Of which $50 million was paid on April 3,
2023. The fair
value of the ordinary shares issued was determined based on the closing market price
of the Company's ordinary shares on the Covestro transaction date. In
accordance with ASC Topic 805, the estimated contingent consideration as of the
Covestro transaction date was included in the purchase price. The total
contingent payments could reach to a maximum aggregate amount of up to $37 million.
The
payment will be settled through the issuance of ordinary shares. The estimated
fair value of the contingent consideration is based on management’s assessment
of whether, and at what level, the financial metrics will be achieved, and the
present value factors associated with the timing of the payments. This fair
value measurement is based on significant unobservable inputs in the market and
thus represents a Level 3 measurement within the fair value hierarchy. Changes
in the fair value of contingent consideration will be recorded
in operating expenses. Refer to note 9. STRATASYS LTD. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the Covestro transaction date. The estimated fair values are preliminary and based on the information that was available as of April 3, 2023. Thus, the measurements of fair value reflected are subject to changes and such changes could be significant. The preliminary allocation of the purchase price to assets acquired and liabilities assumed is as follows:
The preliminary allocation of the PPA to net assets acquired and
liability assumed resulted in the recognition of intangible assets related to
developed technology, customer relationship, and trade name. These intangible
assets have a useful life of 7 to 10 years. The fair value estimate
of the intangible assets is determined using a variation of the income approach
known as the “Multi-Period Excess Earnings Approach”. This valuation technique
estimates the fair value of an asset based on market participants’ expectations
of the cash flows assets would generate over its remaining useful life. The net
cash flows were discounted to present value. Pro
forma information giving effect to the acquisition has not been provided as the
results would not be material. Other investments In addition to the investment in Ultimaker, other investments included under Long-term investments primarily consist of investments in non-marketable equity securities of several companies without readily determinable fair value in which the Company does not have a controlling interest or significant influence. During the six months ended June 30, 2023 and during 2022, the Company invested a total of $5.4 million and $16.7 million, respectively, in non-marketable equity securities and convertible notes of several companies. |
Recent developments |
6 Months Ended |
|---|---|
Jun. 30, 2023 | |
| Recent Developments Abstract | |
| Recent developments | Note 4. Recent developments Prospective
Merger with Desktop Metal On May 25, 2023, the Company and Desktop Metal, Inc., (“Desktop
Metal”), jointly announced their entry into a merger agreement, whereby a wholly-owned
Delaware subsidiary of the company will merge with and into Desktop Metal, with
Desktop Metal surviving the merger as a wholly-owned
subsidiary of the Company. The Company’s
shareholders and Desktop Metal’s stockholders would hold 59% and 41%,
respectively, of Stratasys ordinary shares following the merger. The parties expect the transaction to
close in the fourth quarter of 2023, subject to the receipt of required
regulatory approvals, as well as approvals of the shareholders of Stratasys and
stockholders of Desktop Metal, and other customary closing conditions. Nano Dimension Tender Offer and Board Contest On May 25, 2023, following the announcement of the merger with
Desktop Metal, Nano Dimension Ltd., (“Nano”), a 14.1% shareholder of the Company
in the 3D printing industry, launched a hostile partial tender offer whereby it
sought to acquire—including shares already held by it— between 53% and 55% of the Company’s
outstanding ordinary shares, at a price of $18.00 per share. The tender offer was subject to various conditions and was
originally set to expire on June 26, 2023. Over the course of subsequent
periods of time, the price offered by Nano in its tender offer was ultimately raised
to $25.00
per share, with an accompanying reduction as to the percentage of Company
shares to be held by it upon consummation of the offer, to between 46% and 51%,
and the offer was extended ultimately through July 31, 2023. The offer expired
on July 31, 2023 and Nano did not receive enough tendered shares and was
therefore unable to complete the purchase of any of the Company ordinary shares
pursuant to the offer. The Company has also been subject to litigation with Nano in an
Israeli district court regarding our shareholder rights plan, Nano’s tender
offer, and the contested board election. The litigation has not changed the
outcome of any of the developments described above. Please see note 13. 3D Systems Offers On May 30, 2023, and then again on June 27, 2023, the Company
received an unsolicited non-binding indicative proposal from 3D Systems
Corporation (“3D Systems”) to merge with the Company. The price offered was
$7.50 in cash and 1.2507 shares of common stock of 3D Systems per ordinary
share of Stratasys, followed by $7.50 in cash and 1.3223 shares of common
stock, in those respective offers. On July 13, 2023, the Company received an
updated proposal from 3D Systems, pursuant to which it would merge with the Company
for $7.50 in cash and 1.5444 newly issued shares of common stock of 3D Systems
per Stratasys ordinary share. The Stratasys board determined that the latest 3D
Systems proposal would reasonably be expected to result in a “Superior
Proposal” under the merger agreement with Desktop Metal and authorized Company
management to enter into discussions with 3D Systems with respect to the
proposal.
|
Revenues |
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue Recognition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenues | Note 5. Revenues Disaggregation of Revenues The following table presents the Company’s revenues disaggregated by geographical region (based on the Company's customers' locations) and revenue type for the three and six months ended June 30, 2023 and 2022:
The following table presents the Company’s revenues disaggregated based on the timing of revenue recognition (at a specific point in time or over the course of time) for the three and six months ended June 30, 2023 and 2022:
Contract Assets and Contract Liabilities Contract assets are recorded when the Company's right to consideration is conditional on constraints other than the passage of time. The Company had no material contract assets as of June 30, 2023 and December 31, 2022. Contract liabilities include advance payments and billings in excess of revenue recognized, which are primarily related to advanced billings for service type warranty. Contract liabilities are presented under deferred revenue. The Company's deferred revenue as of June 30, 2023 and December 31, 2022 were as follows:
*Includes $27.4 million and $25.2 million under long-term deferred revenue in the Company's consolidated balance sheets as of June 30, 2023 and December 31, 2022, respectively. Revenue recognized in 2023 that was included in deferred revenue balance as of December 31, 2022 was $11.8 million and $27.9 million for the three and six months ended June 30, 2023. Remaining Performance Obligations Remaining Performance Obligations (“RPO“) represent contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. As of June 30, 2023, the total RPO amounted to $107.4 million. The Company expects to recognize $78.7 million of this RPO during the next 12 months, $14.3 million over the subsequent 12 months and the remaining $14.4 million thereafter. Incremental Costs of Obtaining a Contract Sales commissions earned mainly by the Company’s sales agents are considered incremental costs of obtaining a contract with a customer, as the Company expects the benefit of those commissions to be longer than one year. The majority of the sales commissions are not subject to capitalization, as the commission expense is recognized as the related revenue is recognized. Sales commissions for initial contracts related to the service type warranty are deferred and then amortized on a straight-line basis over the expected customer relationship period if the Company expects to recover those costs. Amortization expense is included in selling, general and administrative expenses in the consolidated statements of operations and comprehensive loss. As of June 30, 2023 and December 31, 2022, the deferred commissions amounted to $9.7 million and $9.6 million, respectively. |
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Inventories |
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
| Inventories | Note 6. Inventories Inventories consisted of the following as of the below balance sheet dates:
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Goodwill and Other Intangible Assets |
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| Goodwill and Other Intangible Assets [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill and Other Intangible Assets | Note 7. Goodwill and Other Intangible Assets Goodwill Changes in the carrying amount of the Company’s goodwill during the six months ended June 30, 2023 were as follows:
Other Intangible Assets Other intangible assets consisted of the following:
Amortization expenses relating to intangible assets for the three-month periods ended June 30, 2023 and 2022 were approximately $7.1 million and $9.2 million, respectively. Amortization expenses relating to intangible assets for the six-month periods ended June 30, 2023 and 2022 were approximately $13.3 million and $18.4 million, respectively. As of June 30, 2023, the estimated amortization expenses relating to intangible assets for each of the following future periods were as follows:
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Net Loss Per Share |
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| Net Loss Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Loss Per Share | Note 8. Net Loss Per Share The following table presents the numerator and denominator of the basic and diluted net loss per share computations for the three and six months ended June 30, 2023 and 2022:
The computation of diluted net loss per share excluded share awards of 3 million shares and 5.2 million shares for the three months ended June 30, 2023 and 2022 respectively, because the inclusion of those shares would have had an anti-dilutive effect on the diluted net loss per share. The computation of diluted net loss per share excluded share awards of 3.3 million shares and 5.2 million shares for the six months ended June 30, 2023 and 2022 respectively, because the inclusion of those shares would have had an anti-dilutive effect on the diluted net loss per share. |
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Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2023 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Note 9. Income Taxes
The Company had income tax expense of $0.7 million for the three-month period ended June 30, 2023, compared to income tax benefit of $0.4 million for the three-month period ended June 30, 2022. The Company had income tax expense of $4.5 million for the six-month period ended June 30, 2023, compared to income tax benefit of $0.5 million for the six-month period ended June 30, 2022. The Company’s effective tax rate as of June 30, 2023, was primarily impacted by the geographic mix of its earnings and losses, movements in its valuation allowance and changes in its uncertain tax positions. |
Fair Value Measurements |
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| Fair Value Measurements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Measurements | Note 10. Fair Value Measurements Financial instruments measured at fair value The following table summarizes the Company’s financial assets and liabilities that are carried at fair value on a recurring basis, in its consolidated balance sheets:
*Includes $15.0 million and $14.6 million under accrued expenses and other current liabilities in the Company's consolidated balance sheets as of June 30, 2023 and December 31, 2022, respectively. The Company's foreign exchange forward contracts are classified as Level 2, as they are not actively traded and are valued using pricing models that use observable market inputs, including interest rate curves and both forward and spot prices for currencies (Level 2 inputs). Contingent consideration represents liabilities recorded at fair value in connection with acquisitions, and thus represents a Level 3 measurement within the fair value hierarchy (refer to Note 3). Other financial instruments consist mainly of cash and cash equivalents, short-term deposits, current and non-current receivables, accounts payable and other current liabilities. The fair value of these financial instruments approximates their carrying values. |
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Derivative Instruments and Hedging Activities |
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative instruments and hedging activities | Note 11. Derivative instruments and hedging activities Since the Company conducts its operations globally, it is exposed to global market risks and to the risk that its earnings, cash flows and equity could be adversely impacted by fluctuations in foreign currency exchange rates. The Company enters into transactions involving foreign currency exchange derivative financial instruments. The Company manages its foreign currency exposures on a consolidated basis, which allows the Company to net exposures and take advantage of any natural hedging. The transactions are designed to manage the Company’s net exposure to foreign currency exchange rates and to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. The Company does not enter into derivative transactions for trading purposes. The Company is primarily exposed to foreign exchange risk with respect to recognized assets and liabilities and forecasted transactions denominated in the New Israeli Shekel (“NIS”), Euro, British Pound, Korean Won, Chinese Yuan and the Japanese Yen. The gains and losses on the hedging instruments partially offset losses and gains on the hedged items. Financial markets and currency volatility may limit the Company’s ability to hedge these exposures. These contracts mature through June 2023. The following table summarizes the consolidated balance sheets classification and fair values of the Company’s derivative instruments:
Foreign exchange contracts not designated as hedging instruments As of June 30, 2023, the notional amounts of the Company’s outstanding exchange forward contracts, not designated as hedging instruments, were $59.0 million, and were used to reduce foreign currency exposures. With respect to such derivatives, a gain of $1.6 million and a gain of $2.4 million were recognized under financial expenses, net for the three-month periods ended June 30, 2023 and 2022, respectively and a gain of $1.2 million and a gain of $3.1 million were recognized under financial expenses, net for the six-month periods ended June 30, 2023 and 2022, respectively. Such gains or losses partially offset the foreign currency revaluation changes of the balance sheet items. These foreign currencies revaluation changes are also recognized under financial income, net. Cash Flow Hedging - Hedges of forecasted foreign currency payroll and other operating expenses As of June 30, 2023, the Company had in effect foreign exchange forward contracts, designated as cash flow hedges for accounting purposes, for the conversion of $36.9 million into NIS. The Company uses short-term cash flow hedge contracts to reduce its exposure to variability in expected future cash flows resulting mainly from payroll costs and other operating expenses denominated in NIS. The changes in fair value of those contracts are included in the Company’s accumulated other comprehensive loss. Cash Flow Hedging - Hedges of forecasted foreign currency revenue As of June 30, 2023, the Company had in effect foreign exchange forward contracts, designated as cash flow hedges for accounting purposes, for the conversion of 28.2 million Euro into U.S. dollars. The Company transacts business in U.S. dollars and in various other currencies. The Company may use foreign exchange or forward contracts to hedge certain cash flow exposures resulting from changes in these foreign currency exchange rates. These foreign exchange contracts, carried at fair value, have maturities of up to twelve months. The Company enters into these foreign exchange contracts to hedge a portion of its forecasted foreign currency denominated revenue in the normal course of business, and accordingly, they are not speculative in nature. |
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Equity |
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| Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity | Note 12. Equity a. Stock-based compensation plans Stock-based compensation expenses for equity-classified stock options, restricted share units (“RSUs”), performance-based restricted share units (”PSUs”) and Employee Share Purchase Plan ("ESPP") were allocated as follows:
A summary of the Company’s stock option activity for the six months ended June 30, 2023 is as follows:
As of June 30, 2023, the unrecognized compensation cost of $0.9 million related to all unvested, equity-classified stock options is expected to be recognized as an expense over a weighted-average period of 1.41 years. A summary of the Company’s RSUs and PSUs activity for the six months ended June 30, 2023 is as follows:
The fair value of RSUs and PSUs is determined based on the quoted price of the Company’s ordinary shares on the date of the grant. As of June 30, 2023, the unrecognized compensation cost of $57.60 million related to all unvested, equity-classified RSUs and PSUs is expected to be recognized as expense over a weighted-average period of 2.72 years. Employee Stock Purchase Plan On October 2021, the Company adopted the 2021 Employee Stock Purchase Plan (the “ESPP”). According to the ESPP, eligible employees may use up to 15% of their salaries to purchase ordinary shares. The price of an ordinary share purchased under the ESPP is equal to 85% of the lower of the fair market value of the ordinary share on the beginning of each offering period or on the purchase date. The first offering period commenced on June 1, 2022 and ended on November 30, 2022, the second offering commenced on December 1,2022 and ended on May 31, 2023 and the third offering commenced on June 1, 2023 and will end on November 30, 2023. In accordance with ASC Topic 718, the ESPP is considered compensatory and, as such, results in recognition of stock-based compensation expenses. b. Accumulated other comprehensive loss The following tables present the changes in the components of accumulated other comprehensive income (loss), net of taxes, for the six months ended June 30, 2023 and 2022, respectively:
c. Rights plan On July 24, 2022, the Company’s Board of Directors adopted a shareholder rights plan (the “Rights Plan”) to protect the interests of the Company’s shareholders. Each Right entitles the registered holder thereof to purchase from the Company one ordinary share, par value NIS 0.01, of the Company (“ordinary share”) at a price of $0.01 per share, subject to adjustment, once the Rights become exercisable, and subject to the exercise terms and conditions thereof described in the agreement governing the Rights Plan (the “Rights Agreement”). The rights would become exercisable only if an entity, person, or group acquires beneficial ownership of 15% or more of the Company’s outstanding ordinary shares in a transaction not approved by the Company’s Board. The Rights Plan originally had a 364-day term, expiring on July 24, 2023. On May 25, 2023, in connection with the execution and delivery on that day of the agreement and plan of merger, by and among Stratasys, Desktop Metal, Inc., and Tetris Sub Inc., a Delaware corporation and Stratasys’ wholly-owned subsidiary (the “Desktop Metal Merger Agreement”), Stratasys entered into an amendment to the Rights Agreement with the rights agent. The amendment extended the expiration date of the Rights Agreement to the later of (a) July 24, 2023 and (b) the conclusion of Stratasys’ shareholder meeting (or, if adjourned, the conclusion of the reconvened meeting) at which the merger under the Desktop Metal Merger Agreement would be brought for approval, or such time as the Desktop Metal Merger Agreement has been terminated in accordance with its terms. The adoption of the Rights Plan is intended to protect the long-term interests of Stratasys and all Stratasys shareholders. The Rights Plan is designed to reduce the likelihood that any entity, person, or group would gain control of, or significant influence over, Stratasys through the open-market accumulation of the Company’s shares without appropriately compensating all Stratasys shareholders for control. The Rights Plan will encourage anyone seeking to gain a significant interest in Stratasys to negotiate directly with the Board prior to attempting to control or significantly influence the Company. Further to those goals, the Rights may cause substantial dilution to a person or group that acquires 15% or more of the ordinary shares or any existing holder of 15% or more of the ordinary shares who shall acquire any additional ordinary shares. |
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Contingencies |
6 Months Ended |
|---|---|
Jun. 30, 2023 | |
| Contingencies [Abstract] | |
| Contingencies | Note 13. Contingencies Legal proceedings Litigation with Nano Dimension regarding
Stratasys’ Rights Plan, Nano Dimension’s tender offer, and Stratasys board
election On April 25, 2023, the Company was named as a defendant in an action filed by Nano in the
Tel-Aviv District Court in which Nano sought declaratory relief declaring that
Stratasys’ shareholder rights plan is both illegal and void, and also requested
a court order enjoining the Company and its directors from intervening with, or
hindering in any way, a tender offer that Nano at the time intended to launch
to acquire Stratasys ordinary shares. On June 8, 2023, in its statement of defense, the Company rejected
all of Nano’s claims, stating, among other things, that there was a substantial
change of circumstance since Nano’s action was filed due to Stratasys’ entry
into the Desktop Metal Merger Agreement on May 25, 2023 and the launch of
Nano’s tender offer on May 25, 2023. The Company argued that its rights
plan is legal under Israeli law, and that due to the many flaws and unlawful conditions
of Nano’s tender offer and Nano’s conduct and circumstances, The Company’s board
was obligated to get involved and protect the Company and its shareholders. The
Company also submitted a counterclaim to the court, seeking an order
restraining Nano from completing its tender offer until certain conditions were
to be fulfilled. On July 18, 2023, in the context of an interim procedural
decision, the Israeli court took the opportunity to express its preliminary
view on the legality of shareholder rights plans for Israeli companies. The
court indicated that it is inclined to view rights plans as permissible under
Israeli law; that the adoption of a rights plan by a board should be viewed
“with suspicion”; and that the board would bear the burden of proving certain
matters related to the adoption of such a plan. The court has set a schedule for submission of written summations
by the parties, with Nano to submit its summations as claimant by August 7,
2023, the Company to submit its summations as respondent and counterclaimant by
August 25, 2023, and Nano to submit its summations as counter-respondent by
September 14, 2023. In a separate action, on July 13, 2023, Nano filed a motion in an
Israeli court requesting that the court order, among other things, that (i) The
Company correct the agenda sent out to its shareholders in advance of an annual
general shareholder meeting scheduled for August 8, 2023, so that the agenda
would include Nano’s individual director nominees for the Company’s board, and
(ii) The Company issue a new proxy statement and proxy card for the annual
general shareholder meeting. On July 28, 2023, Nano issued a press release in which it
announced that it intends to withdraw its nominees for the Company’s board,
which Nano reiterated in a press release that it issued on August 1, 2023. Ordinary course litigation
In addition to the foregoing litigations,
the Company is also a party to various legal proceedings from time to time, the
outcome of which, in the opinion of management, will not have a significant
effect on the financial position, profitability or cash flows of the Company.
|
Certain Transactions (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Certain Transactions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Fair Value Allocated To Such Net Assets In The Transaction | The Company recorded a net gain of $39.1 million from deconsolidation of MakerBot, representing the difference between the book value of MakerBot's net assets and the fair value allocated to such net assets in the transaction as follows:
|
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| Schedule of Fair Value of The Consideration Transferred | The following table summarizes the fair value of the consideration
transferred to Covestro AG for the Covestro transaction:
*Of which $50 million was paid on April 3,
2023.
|
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| Schedule of Preliminary Allocation of The Purchase Price | The preliminary allocation of the purchase price to assets acquired and liabilities assumed is as follows:
|
Revenues (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Disaggregated By Geographical Region | The following table presents the Company’s revenues disaggregated by geographical region (based on the Company's customers' locations) and revenue type for the three and six months ended June 30, 2023 and 2022:
|
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| Schedule of Revenue Recognition | The following table presents the Company’s revenues disaggregated based on the timing of revenue recognition (at a specific point in time or over the course of time) for the three and six months ended June 30, 2023 and 2022:
|
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| Schedule of Deferred Revenue | The Company's deferred revenue as of June 30, 2023 and December 31, 2022 were as follows:
*Includes $27.4 million and $25.2 million under long-term deferred revenue in the Company's consolidated balance sheets as of June 30, 2023 and December 31, 2022, respectively. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Inventories | Inventories consisted of the following as of the below balance sheet dates:
|
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Goodwill and Other Intangible Assets (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill and Other Intangible Assets [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Changes In The Carrying Amount Of Goodwill | Changes in the carrying amount of the Company’s goodwill during the six months ended June 30, 2023 were as follows:
|
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| Schedule of Other Intangible Assets | Other intangible assets consisted of the following:
|
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| Schedule of Estimated Amortization Expenses Relating To Intangible Assets | As of June 30, 2023, the estimated amortization expenses relating to intangible assets for each of the following future periods were as follows:
|
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Net Loss Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Loss Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Basic And Diluted Net Loss Per Share | The following table presents the numerator and denominator of the basic and diluted net loss per share computations for the three and six months ended June 30, 2023 and 2022:
|
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Fair Value Measurements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Measurements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Assets And Liabilities Carried At Fair Value On A Recurring Basis | The following table summarizes the Company’s financial assets and liabilities that are carried at fair value on a recurring basis, in its consolidated balance sheets:
*Includes $15.0 million and $14.6 million under accrued expenses and other current liabilities in the Company's consolidated balance sheets as of June 30, 2023 and December 31, 2022, respectively.
|
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Derivative Instruments and Hedging Activities (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Balance Sheet Classification And Fair Values of Derivative Instruments | The following table summarizes the consolidated balance sheets classification and fair values of the Company’s derivative instruments:
|
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Equity (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Stock-Based Compensation Expenses | Stock-based compensation expenses for equity-classified stock options, restricted share units (“RSUs”), performance-based restricted share units (”PSUs”) and Employee Share Purchase Plan ("ESPP") were allocated as follows:
|
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| Schedule of Stock Option Activity | A summary of the Company’s stock option activity for the six months ended June 30, 2023 is as follows:
|
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| Schedule of RSUs and PSUs Activity | A summary of the Company’s RSUs and PSUs activity for the six months ended June 30, 2023 is as follows:
|
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| Schedule of Accumulated Other Comprehensive Income (loss), Net of Taxes | The following tables present the changes in the components of accumulated other comprehensive income (loss), net of taxes, for the six months ended June 30, 2023 and 2022, respectively:
|
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Business Description and Basis of Presentation (Details) |
6 Months Ended |
|---|---|
Jun. 30, 2023 | |
| Business Combination [Member] | |
| Business Description and Basis of Presentation (Details) [Line Items] | |
| Business acquisition, description | The Company’s approximately 2,400 granted and pending additive technology patents to date have been used to create models, prototypes, manufacturing tools, and production parts for a multitude of industries including aerospace, automotive, transportation, healthcare, consumer products, dental, medical, fashion and education. |
Certain Transactions (Details) - Schedule of Fair Value Allocated To Such Net Assets In The Transaction $ in Thousands |
6 Months Ended |
|---|---|
|
Jun. 30, 2023
USD ($)
| |
| Schedule of fair value allocated to such net assets in the transaction [Abstract] | |
| Fair Value, net | $ 55,751 |
| Net assets deconsolidated | (14,146) |
| Transaction expenses | (2,469) |
| Gain on deconsolidation of subsidiary | $ 39,136 |
Certain Transactions (Details) - Schedule of Fair Value of The Consideration Transferred $ in Thousands |
6 Months Ended | |||
|---|---|---|---|---|
|
Jun. 30, 2023
USD ($)
| ||||
| Schedule of Fair Value of the Consideration Transferred [Abstract] | ||||
| Cash payments | $ 53,300 | [1] | ||
| Issuance of ordinary shares to Covestro stockholders | 5,201 | |||
| Contingent consideration at estimated fair value | 659 | |||
| Total consideration | $ 59,160 | |||
| ||||
Certain Transactions (Details) - Schedule of Preliminary Allocation of The Purchase Price $ in Thousands |
Jun. 30, 2023
USD ($)
|
|---|---|
| Schedule of Preliminary Allocation of the Purchase Price [Abstract] | |
| Inventory | $ 10,429 |
| Fixed assets | 5,043 |
| Goodwill | 23,092 |
| Intangible assets | 22,437 |
| Total assets acquired | 61,001 |
| Other current liabilities | 1,841 |
| Total liabilities assumed | 1,841 |
| Net assets acquired | $ 59,160 |
Revenues (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | 12 Months Ended |
|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2023 |
Dec. 31, 2022 |
|
| Revenue Recognition [Abstract] | |||
| Long term deferred revenue | $ 27.4 | $ 27.4 | $ 25.2 |
| Revenue recognized | 27.9 | 27.9 | 11.8 |
| Remaining performance obligations | 107.4 | 107.4 | |
| Expected remaining performance obligations recognized during next 12 months | 78.7 | 78.7 | |
| Expected remaining performance obligations recognized over subsequent 12 months | 14.3 | 14.3 | |
| Expected remaining performance obligations recognized remainder thereafter | 14.4 | 14.4 | |
| Deferred sales commissions | $ 9.7 | $ 9.7 | $ 9.6 |
Revenues (Details) - Schedule of Deferred Revenue - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
||
|---|---|---|---|---|
| Schedule of Deferred Revenue [Abstract] | ||||
| Deferred revenue | [1] | $ 79,264 | $ 75,434 | |
| ||||
Inventories (Details) - Schedule of Inventories - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
|---|---|---|
| Schedule of Inventories [Abstract] | ||
| Finished goods | $ 88,967 | $ 81,564 |
| Work-in-process | 11,429 | 7,562 |
| Raw materials | 110,790 | 104,928 |
| Total inventories | $ 211,186 | $ 194,054 |
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
| Goodwill and Other Intangible Assets [Abstract] | ||||
| Amortization of intangible assets | $ 7.1 | $ 9.2 | $ 13.3 | $ 18.4 |
Goodwill and Other Intangible Assets (Details) - Schedule of Changes In The Carrying Amount Of Goodwill - Goodwill [Member] $ in Thousands |
6 Months Ended |
|---|---|
|
Jun. 30, 2023
USD ($)
| |
| Goodwill [Line Items] | |
| Goodwill as of January 1, 2023 | $ 64,953 |
| Goodwill acquired | 27,835 |
| Foreign currency translation adjustments | 158 |
| Goodwill as of June 30, 2023 | $ 92,946 |
Goodwill and Other Intangible Assets (Details) - Schedule of Estimated Amortization Expenses Relating To Intangible Assets $ in Thousands |
Jun. 30, 2023
USD ($)
|
|---|---|
| Schedule of Estimated Amortization Expenses Relating to Intangible Assets [Abstract] | |
| Remaining 6 months of 2023 | $ 14,202 |
| 2024 | 23,774 |
| 2025 | 22,371 |
| 2026 | 22,293 |
| 2027 | 20,892 |
| 2028 and thereafter | 45,081 |
| Total | $ 148,613 |
Net Loss Per Share (Details) - shares shares in Millions |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
| Net Loss Per Share [Abstract] | ||||
| Antidilutive securities excluded from computation of net income (loss) per share | 3.0 | 5.2 | 3.3 | 5.2 |
Net Loss Per Share (Details) - Schedule of Basic And Diluted Net Loss Per Share - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
| Numerator: | ||||
| Net loss for basic net loss per share | $ (38,615) | $ (24,385) | $ (60,839) | $ (45,333) |
| Denominator: | ||||
| Weighted average shares - for basic net loss per share | 68,648 | 66,568 | 68,107 | 66,151 |
| Net loss per share | ||||
| Net loss per share, Basic | $ (0.56) | $ (0.37) | $ (0.89) | $ (0.69) |
Net Loss Per Share (Details) - Schedule of Basic And Diluted Net Loss Per Share (Parentheticals) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
| Schedule of basic and diluted net loss per share [Abstract] | ||||
| Net loss for diluted net loss per share | $ (38,615) | $ (24,385) | $ (60,839) | $ (45,333) |
| Weighted average shares - for diluted net loss per share | 68,648 | 66,568 | 68,107 | 66,151 |
| Net loss per share, Diluted | $ (0.56) | $ (0.37) | $ (0.89) | $ (0.69) |
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
| Income Tax Disclosure [Abstract] | ||||
| Income tax expense benefits | $ 0.7 | $ 0.4 | $ 4.5 | $ 0.5 |
Fair Value Measurements (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
|---|---|---|
| Fair Value Measurements [Abstract] | ||
| Accrued expenses and other current liabilities | $ 15.0 | $ 14.6 |
Derivative Instruments and Hedging Activities (Details) € in Millions, ₪ in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | ||||
|---|---|---|---|---|---|---|
|
Jun. 30, 2023
USD ($)
|
Jun. 30, 2022
USD ($)
|
Jun. 30, 2023
USD ($)
|
Jun. 30, 2022
USD ($)
|
Jun. 30, 2023
ILS (₪)
|
Jun. 30, 2023
EUR (€)
|
|
| Derivative Instruments and Hedging Activities (Details) [Line Items] | ||||||
| Notional amount of derivative asset | $ 59.0 | $ 59.0 | ||||
| Gain (loss) on derivative instrument | $ 1.6 | $ 2.4 | $ 1.2 | $ 3.1 | ||
| Designated as Hedging Instrument [Member] | Conversion to NIS [Member] | ||||||
| Derivative Instruments and Hedging Activities (Details) [Line Items] | ||||||
| Notional amount of derivative asset | ₪ | ₪ 36.9 | |||||
| Designated as Hedging Instrument [Member] | Conversion to Euro [Member] | ||||||
| Derivative Instruments and Hedging Activities (Details) [Line Items] | ||||||
| Notional amount of derivative asset | € | € 28.2 | |||||
Derivative Instruments and Hedging Activities (Details) - Schedule of Balance Sheet Classification And Fair Values of Derivative Instruments - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
|---|---|---|
| Derivatives, Fair Value [Line Items] | ||
| Fair value | $ (2,244) | $ (1,516) |
| Notional amount | 124,099 | 195,657 |
| Foreign exchange contracts [Member] | Not designated as hedging instruments [Member] | Other current assets [Member] | ||
| Derivatives, Fair Value [Line Items] | ||
| Fair Value | 7 | 159 |
| Notional Amount | 25,093 | 101,733 |
| Foreign exchange contracts [Member] | Not designated as hedging instruments [Member] | Accrued expenses and other current liabilities [Member] | ||
| Derivatives, Fair Value [Line Items] | ||
| Fair value | (87) | (38) |
| Notional Amount | 33,927 | 16,751 |
| Foreign exchange contracts [Member] | Designated as hedging instruments [Member] | Other current assets [Member] | ||
| Derivatives, Fair Value [Line Items] | ||
| Fair Value | 376 | 3 |
| Notional Amount | 28,221 | 4,900 |
| Foreign exchange contracts [Member] | Designated as hedging instruments [Member] | Accrued expenses and other current liabilities [Member] | ||
| Derivatives, Fair Value [Line Items] | ||
| Fair value | (2,540) | (1,640) |
| Notional Amount | $ 36,858 | $ 72,273 |
Equity (Details) $ / shares in Units, $ in Thousands |
1 Months Ended | 6 Months Ended | |||
|---|---|---|---|---|---|
Oct. 31, 2021 |
Jul. 24, 2021
₪ / shares
|
Jun. 30, 2023
USD ($)
|
May 30, 2023
$ / shares
|
Jul. 24, 2021
$ / shares
|
|
| Equity (Details) [Line Items] | |||||
| Salaries to Purchase Precentage | 15.00% | ||||
| Fair market value percentage | 85.00% | ||||
| Price per share | (per share) | ₪ 0.01 | $ 7.5 | $ 0.01 | ||
| Ownership percentage | 15.00% | ||||
| Ordinary shares percentage | 15.00% | ||||
| Existing holder percentage | 15.00% | ||||
| Stock Option [Member] | |||||
| Equity (Details) [Line Items] | |||||
| Unrecognized compensation cost (in Dollars) | $ 900 | ||||
| Weighted-average period | 1 year 4 months 28 days | ||||
| RSUs and PSUs [Member] | |||||
| Equity (Details) [Line Items] | |||||
| Unrecognized compensation cost (in Dollars) | $ 57,600 | ||||
| Weighted-average period | 2 years 8 months 19 days | ||||
Equity (Details) - Schedule of Stock-Based Compensation Expenses - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
| Cost of revenues [Member] | ||||
| Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
| Total stock-based compensation expenses | $ 999 | $ 1,080 | $ 1,931 | $ 1,980 |
| Research and development, net [Member] | ||||
| Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
| Total stock-based compensation expenses | 1,867 | 1,606 | 3,956 | 3,392 |
| Selling, general and administrative [Member] | ||||
| Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
| Total stock-based compensation expenses | 5,156 | 6,145 | 10,376 | 11,992 |
| Total stock-based compensation expenses [Member] | ||||
| Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
| Total stock-based compensation expenses | $ 8,022 | $ 8,831 | $ 16,263 | $ 17,364 |
Equity (Details) - Schedule of Stock Option Activity |
6 Months Ended |
|---|---|
|
Jun. 30, 2023
$ / shares
shares
| |
| Stockholders' Equity Note [Abstract] | |
| Number of Options, Options outstanding | shares | 1,619,559 |
| Weighted Average Exercise Price, Options outstanding | $ / shares | $ 27.62 |
| Number of Options, Granted | shares | |
| Weighted Average Exercise Price, Granted | $ / shares | |
| Number of Options, Exercised | shares | (2,429) |
| Weighted Average Exercise Price, Exercised | $ / shares | $ 3.56 |
| Number of Options, Forfeited | shares | (205,478) |
| Weighted Average Exercise Price, Forfeited | $ / shares | $ 64.78 |
| Number of Options, Options outstanding | shares | 1,411,652 |
| Weighted Average Exercise Price, Options outstanding | $ / shares | $ 22.25 |
| Number of Options, Options exercisable | shares | 1,084,689 |
| Weighted Average Exercise Price, Options exercisable | $ / shares | $ 24.18 |
Equity (Details) - Schedule of RSUs and PSUs Activity - Restricted and Phantom Share Units [Member] |
6 Months Ended |
|---|---|
|
Jun. 30, 2023
$ / shares
shares
| |
| Equity (Details) - Schedule of RSUs and PSUs Activity [Line Items] | |
| Number of RSUs and PSUs, Unvested | shares | 3,496,099 |
| Weighted Average Grant Date Fair Value, Unvested | $ / shares | $ 23.98 |
| Number of RSUs and PSUs, Granted | shares | 1,784,752 |
| Weighted Average Grant Date Fair Value, Granted | $ / shares | $ 13.26 |
| Number of RSUs and PSUs, Vested | shares | (1,262,954) |
| Weighted Average Grant Date Fair Value, Vested | $ / shares | $ 24.37 |
| Number of RSUs and PSUs, Forfeited | shares | (201,832) |
| Weighted Average Grant Date Fair Value, Forfeited | $ / shares | $ 24.15 |
| Number of RSUs and PSUs, Unvested | shares | 3,816,065 |
| Weighted Average Grant Date Fair Value, Unvested | $ / shares | $ 18.83 |
Equity (Details) - Schedule of Accumulated Other Comprehensive Income (loss), Net of Taxes - USD ($) $ in Thousands |
6 Months Ended | |
|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
|
| Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
| Beginning balance | $ (12,818) | $ (8,771) |
| Other comprehensive income (loss) before reclassifications | (874) | (4,540) |
| Amounts reclassified from accumulated other comprehensive loss | 1,021 | (43) |
| Other comprehensive income (loss) | 147 | (4,583) |
| Ending balance | (12,671) | (13,354) |
| Net Unrealized Gain (Loss) on Cash Flow Hedges [Member] | ||
| Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
| Beginning balance | (299) | 1,572 |
| Other comprehensive income (loss) before reclassifications | (2,708) | (1,049) |
| Amounts reclassified from accumulated other comprehensive loss | 1,021 | (43) |
| Other comprehensive income (loss) | (1,687) | (1,092) |
| Ending balance | (1,986) | 480 |
| Foreign Currency Translation Adjustments [Member] | ||
| Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
| Beginning balance | (12,519) | (10,343) |
| Other comprehensive income (loss) before reclassifications | 1,834 | (3,491) |
| Amounts reclassified from accumulated other comprehensive loss | ||
| Other comprehensive income (loss) | 1,834 | (3,491) |
| Ending balance | $ (10,685) | $ (13,834) |
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