NASDAQ$FARO

FARO Technologies Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported revenue increase of 10% year over year, exceeding expectations, and implemented cost reduction activities to realize targeted expense levels in third quarter.

FARO Technologies reported second quarter revenue of $88.2 million, a 10% increase year over year. The company executed cost reduction activities ahead of schedule and expects to realize a lower cost base in the third quarter. The company remains focused on its hardware and software enabled strategy.

  • Total sales of $88.2 million, up 10% year over year or 6% excluding the impact of prior year acquisitions
  • Software sales of $10.8 million, up 2% compared to the prior year period
  • Recurring revenue of $16.4 million, down 4% year on year
  • Net loss of $28.2 million, or $(1.49) per share compared to net loss of $8.6 million, or $(0.47) per share in the prior year period

Headline financials

Total Revenue

$88.2M

Previous: $79.9M+10.4%
EPS (adj)

-$0.14

Previous: -$0.03-366.7%
Gross Margin

37.8%

Previous: 50.6%-25.3%
Non-GAAP Gross Margin

48.0%

Previous: 51.0%-5.9%
Adjusted EBITDA

$923K

No prior period
Adjusted EBITDA Margin

1.0%

No prior period
Capital Expenditures

$2.62M

Previous: $1.04M+152.6%
Free Cash Flow

$717K

Previous: $2.74M-73.8%
Net Income

-$28.2M

Previous: -$8.57M-229.4%
Operating Income

-$25.4M

Previous: -$8.96M-183.1%
Gross Profit

$33.3M

Previous: $40.4M-17.6%
Cash & Equivalents

$68.2M

Previous: $102M-33.1%
Total Assets

$502M

Previous: $443M+13.4%
Stock-Based Comp

$4.95M

Previous: $3.49M+41.8%

Revenue & EPS history

FARO · Revenue · Quarterly

$88.2M

Q2 2023+10.4%vs Q2 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

FARO · $20.6M total across 1 segment · Q2 2023

  • Service Sales
    $20.6M+1.9%

Forward guidance

For the third quarter ending September 30, 2023, FARO currently expects:

Tailwinds

  • Revenue in the range of $76 to $84 million
  • Gross margin in the range of 45% to 47%
  • Non-GAAP gross margin in the range of 46% to 48%
  • Operating expenses in the range of $50.9 to $53.4 million
  • Non-GAAP operating expenses in the range of $41.0 to $42.5 million

Headwinds

  • Net loss per share in the range of ($1.25) to ($0.71)
  • Non-GAAP net loss per share in the range of ($0.35) to ($0.10)

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 6 quarterly earnings reports

Historical avg

+1.8%

Avg return

Earnings day

+19.0%

Avg return

5 days after

+17.2%

Avg return

30 days after

56%

35 / 62 earnings

Positive

+41.4%

Q3 2024

Best reaction

-42.7%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025
Q3 2025
Q2 2025
Q1 2025+34.7%+34.5%+34.9%
Q4 2024+17.3%+17.9%+4.9%
Q3 2024+41.4%+53.9%+46.9%
Q2 2024+7.1%+9.3%+18.1%
Q1 2024-2.1%-2.8%-0.4%
Q4 2023+2.8%+1.1%-1.2%
Q3 2023+13.5%
Q2 2023+17.0%
Q1 2023-42.7%
Q4 2022+3.1%
Q3 2022+1.7%
Q2 2022+10.3%
Q1 2022-23.0%
Q4 2021-7.1%
Q3 2021-0.1%
Q2 2021+1.3%
Q1 2021-7.8%
Q4 2020+12.9%
Q3 2020-2.7%
Q2 2020-4.2%
Q1 2020+13.0%
Q4 2019+14.0%
Q3 2019+0.4%
Q2 2019-1.1%
Q1 2019-2.2%
Q4 2018-7.2%
Q3 2018-8.7%
Q2 2018+17.2%
Q1 2018-15.8%
Q4 2017+16.2%
Q3 2017+19.2%
Q2 2017-6.2%
Q1 2017-5.8%
Q4 2016-6.5%
Q3 2016-8.9%
Q2 2016-9.5%
Q1 2016+13.4%
Q4 2015+14.5%
Q3 2015-27.9%
Q2 2015+15.3%
Q1 2015-5.6%
Q4 2014+2.2%
Q3 2014+7.2%
Q2 2014+15.0%
Q1 2014-17.3%
Q4 2013+2.1%
Q3 2013+11.8%
Q2 2013-1.5%
Q1 2013-11.7%
Q4 2012+21.3%
Q3 2012-18.0%
Q2 2012-23.7%
Q1 2012+5.1%
Q4 2011+0.6%
Q4 2009+0.6%
Q3 2011+12.6%
Q3 2010+12.6%
Q2 2010-9.2%
Q2 2011-9.2%
Q4 2010+7.3%
Q1 2010+7.3%
Q1 2011+7.3%

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