NASDAQ$FARO

FARO Technologies Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

FARO's Q3 2023 financial performance exceeded expectations with revenue of $86.8 million and non-GAAP EPS of $0.02, driven by end market demand and operational performance improvements.

FARO Technologies, Inc. reported Q3 2023 financial results with revenue of $86.8 million and non-GAAP EPS of $0.02, exceeding expectations. The company saw a 2% year-over-year increase in total sales and focused on improved execution of its hardware and software enabled strategy.

  • Total sales reached $86.8 million, a 2% increase year-over-year.
  • Software sales increased by 6% to $11.2 million compared to the prior year period.
  • Recurring revenue grew by 3% year-on-year to $17.1 million.
  • Non-GAAP net income was $0.5 million, or $0.02 per share, compared to $0.5 million, or $0.03 per share in the prior year period.

Headline financials

Total Revenue

$86.8M

Previous: $85.3M+1.7%
EPS (adj)

$0.02

Previous: $0.03-33.3%
Gross Margin

48.0%

Previous: 50.7%-5.3%
Non-GAAP Gross Margin

48.9%

Previous: 51.0%-4.1%
Operating Expenses

$48.6M

No prior period
Non-GAAP Operating Expenses

$41.5M

No prior period
Adjusted EBITDA

$3.5M

Previous: $1.97M+77.4%
Adjusted EBITDA Margin

4.1%

Previous: 2.3%+78.3%
Capital Expenditures

-$2.16M

Previous: $1.5M-244.2%
Free Cash Flow

-$5.08M

Previous: -$16.4M+69.0%
Net Income

-$8.76M

Previous: -$6.3M-39.0%
Operating Income

-$6.93M

Previous: -$7.13M+2.8%
Gross Profit

$41.7M

Previous: $43.3M-3.7%
Cash & Equivalents

$79.9M

Previous: $48.5M+64.7%
Total Assets

$485M

Previous: $445M+9.0%
R&D Expense

$8.19M

No prior period
Stock-Based Comp

$3.69M

Previous: $3.67M+0.7%

Revenue & EPS history

FARO · Revenue · Quarterly

$86.8M

Q3 2023+1.7%vs Q3 2022
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

For the fourth quarter ending December 31, 2023, FARO expects revenue in the range of $92 to $100 million, gross margin in the range of 49.5% to 51.0%, operating expenses in the range of $47.5 to $49.5 million, and a net loss per share in the range of ($0.30) to ($0.15).

Tailwinds

  • Revenue in the range of $92 to $100 million
  • Gross margin in the range of 49.5% to 51.0%
  • Non-GAAP gross margin in the range of 50.5% to 52.0%
  • Non-GAAP net income per share in the range of $0.18 to $0.34
  • Operating expenses in the range of $47.5 to $49.5 million

Headwinds

  • Net loss per share in the range of ($0.30) to ($0.15)
  • Potential impacts on customer and supplier relationships and the Company's reputation
  • Assumptions regarding the Company’s financial condition or future financial performance may be incorrect
  • The impact of fluctuations in foreign exchange rates and inflation rates
  • Development by others of new or improved products, processes or technologies that make the Company's products less competitive or obsolete

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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