Stratasys Ltd (NASDAQ:SSYS), a leading provider of 3D printing solutions, experienced a significant drop of 5.12% in its stock price during Thursday's pre-market trading session. This plummet comes in the wake of the company's Q4 2024 earnings release, which revealed a 3.8% year-over-year decline in revenue and challenges in the broader market.
The Q4 2024 financial results painted a picture of ongoing headwinds for Stratasys. Product revenue fell by 4.8%, with systems revenue declining by 1.5% due to constrained capital budgets among customers. Consumable revenue also experienced a 7.3% year-over-year drop. While service revenue remained relatively flat, the company's full-year revenue for 2024 decreased by 8.8% compared to the previous year.
Despite these challenges, Stratasys reported positive developments, including an increase in its revenue share from manufacturing to 36% in 2024, up from 34% in 2023. The company also maintained a strong balance sheet with $150.7 million in cash and no debt, providing financial stability and growth opportunities. However, the market appears to have focused more on the revenue declines and macroeconomic pressures facing the industry.