FARO Technologies Inc · Q4 2021 earnings

Briefing

Announced fourth quarter and full year financial results

FARO's fourth quarter revenue grew 27% sequentially to $100.2 million, driven by market recovery and increased arm shipments, while a strong dollar and supply chain issues muted revenue levels. Holobuilder SaaS revenue is on track to double, with a mid-six figure annual recurring revenue deal signed in the quarter.

• Total sales were $100.2 million, an 8% increase compared to Q4 2020.
• Gross margin was 55.6%, up from 54.6% in the prior year period.
• Net loss was $31.7 million, or $1.74 per share, compared to a net income of $27.4 million, or $1.52 per share, for the fourth quarter 2020 which included income tax expense of $26.5 million associated with the creation of a valuation allowance against primarily US deferred tax assets
• Non-GAAP net income was $8.7 million, or $0.48 per share, compared to $6.3 million, or $0.35 per share, for the fourth quarter 2020.

Headline financials

Revenue & EPS history

For the first quarter ending March 31, 2022, revenues are expected to be in the range of $80 to $88 million with non-GAAP earnings per share in the range of ($0.08) to $0.12. Included in our first quarter expectations are approximately 200 basis points of unfavorable material cost that are adversely affecting gross margins.