NASDAQ$FARO

FARO Technologies Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

FARO reported a decrease in total sales but showed significant improvements in gross margin, net income, and cash flow for the fourth quarter of 2024.

FARO Technologies, Inc. announced its fourth quarter and full year 2024 financial results, with Q4 revenue at $93.5 million, meeting the upper end of guidance. The company reported a net loss of $1.0 million, or $(0.05) per share, but a non-GAAP EPS of $0.50, at the high end of guidance. Significant improvement in cash flow resulted in positive Q4 and FY2024 cash flow from operations, with adjusted EBITDA margin reaching 17.9%.

  • Q4 revenue reached $93.5 million, aligning with the upper end of the company's guidance range.
  • Non-GAAP EPS for Q4 was $0.50, hitting the high end of the guidance range, despite a GAAP net loss of $1.0 million.
  • The company achieved a significant improvement in cash flow, resulting in positive cash flow from operations for both Q4 and the full fiscal year 2024.
  • Adjusted EBITDA margin for Q4 was 17.9%, demonstrating strong operational profitability.

Headline financials

Total Revenue

$93.5M

Previous: $98.8M-5.4%
EPS (adj)

$0.50

Previous: $0.36+38.9%
Gross Margin

56.7%

Previous: 50.9%+11.4%
Non-GAAP Gross Margin

57.4%

Previous: 51.3%+11.9%
Operating Expenses

$48.4M

Previous: $48.9M-1.2%
Non-GAAP Operating Expenses

$39.9M

Previous: $41.3M-3.3%
Adjusted EBITDA

$16.7M

Previous: $11.9M+40.3%
Adjusted EBITDA Margin

17.9%

Previous: 12.1%+47.9%
Net Income

-$986K

Previous: $1.6M-161.6%
Operating Income

$4.73M

Previous: $1.36M+248.5%
Gross Profit

$53.1M

Previous: $50.3M+5.6%

Revenue & EPS history

FARO · Revenue · Quarterly

$93.5M

Q4 2024-5.4%vs Q4 2023
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 first quarter ending March 31, 2025, FARO expects revenue between $77 million and $85 million, with non-GAAP earnings per share in the range of $0.10 to $0.30.

Tailwinds

  • Expected non-GAAP gross margin in the range of 55.0% - 56.5%, indicating continued strong profitability.
  • Anticipated non-GAAP earnings per share between $0.10 and $0.30, suggesting positive adjusted profitability.
  • Continued focus on operational excellence and strategic investments to drive long-term value.
  • Leveraging multi-phase strategy for sustained market leadership.
  • Confidence in achieving sustained growth and profitability.

Headwinds

  • Projected revenue range of $77 million to $85 million for Q1 2025 is lower than Q4 2024 revenue of $93.5 million.
  • Expected GAAP net loss per share in the range of ($0.36) - ($0.16) for Q1 2025.
  • Operating expenses are projected to be between $45.0 million and $47.0 million, which is a significant cost.
  • Potential impact of economic and demand challenges in manufacturing and construction sectors.
  • Risks associated with the company's ability to successfully execute its strategic plan and realize expected benefits from restructuring.

Historical earnings impact

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

Avg. return before/after earnings

Based on 6 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

+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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