NASDAQ$FARO

FARO Technologies Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

FARO's financial performance reflected strong demand and strategic advancements.

FARO reported a 12% increase in total sales compared to Q3 2020, driven by pandemic recovery, while facing logistical challenges that shifted some orders to Q4. The company's gross margin improved due to higher volumes, and they are optimistic about demonstrating operating leverage as revenue approaches pre-pandemic levels.

  • Total sales increased by 12% year-over-year to $79.2 million.
  • Gross margin improved to 53.5% compared to 51.3% in the same prior year period.
  • Net loss was $3.9 million, or $0.21 per share, compared to a net loss of $3.0 million, or $0.17 per share, for the third quarter 2020.
  • Adjusted EBITDA was $2.7 million, or 3.4% of Non-GAAP total sales, compared to $820 thousand, or 1.2% of Non-GAAP total sales, for the third quarter of 2020.

Headline financials

Total Revenue

$79.2M

Previous: $70.7M+11.9%
EPS (adj)

-$0.01

Previous: -$0.08+87.5%
Adjusted EBITDA Margin

3.4%

No prior period
Capital Expenditures

$2.77M

Previous: $1.3M+113.3%
Free Cash Flow

-$6.04M

Previous: -$6.55M+7.8%
Net Income

-$3.86M

Previous: -$3.02M-27.5%
Operating Income

-$5.21M

Previous: -$4.86M-7.2%
Gross Profit

$42.3M

Previous: $36.3M+16.6%
Cash & Equivalents

$126M

Previous: $164M-23.1%
Total Assets

$501M

Previous: $452M+10.8%
Stock-Based Comp

$3.28M

Previous: $2.08M+57.5%

Revenue & EPS history

FARO · Revenue · Quarterly

$79.2M

Q3 2021+11.9%vs Q3 2020
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

FARO · $19.9M total across 1 segment · Q3 2023

  • Service Sales
    $19.9M+0.8%

Forward guidance

The company anticipate strong fourth quarter demand and look forward to demonstrating the operating leverage.

Tailwinds

  • Strong fourth quarter demand indicators.
  • Revenue returning to pre-pandemic levels.
  • Customer response to new products is encouraging.
  • Next generation Quantum Max ScanArm is well received.
  • Holobuilder photogrammetry products are on track to double over the next year.

Headwinds

  • Customer COVID-related logistical challenges shifted some orders into the fourth quarter.
  • Sequential sales decreased due to seasonal softness in European markets.
  • Pandemic related logistical constraints on behalf of our customers.
  • Sequential sales decreased was driven by typical seasonal softness in European markets.
  • New order bookings decreased 9% sequentially.

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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