On August 8, 2024, Faro Technologies Inc (FARO, Financial) released its 8-K filing detailing the financial results for the second quarter ended June 30, 2024. Faro Technologies Inc is a technology company that designs, develops, manufactures, markets, and supports software-driven, three-dimensional (3-D) measurement, imaging, and realization solutions for various industries including 3D metrology, architecture, engineering, and construction (AEC), operations and maintenance (O&M), and public safety analytics markets.
Performance and Challenges
Faro Technologies Inc (FARO, Financial) reported total sales of $82.1 million for Q2 2024, a 7% decline year-over-year from $88.2 million in Q2 2023. Despite the revenue miss, the company achieved a gross margin of 54.6%, significantly higher than the 37.8% reported in the same period last year. The net loss for the quarter was $0.5 million, or $(0.03) per share, compared to a net loss of $28.2 million, or $(1.49) per share, in Q2 2023. Non-GAAP earnings per share (EPS) came in at $0.18, surpassing the analyst estimate of $0.15.
Financial Achievements
Faro Technologies Inc (FARO, Financial) achieved several financial milestones in Q2 2024. The company reported a non-GAAP gross margin of 55.0%, up from 38.7% in the prior year period. Operating expenses were reduced to $43.0 million from $58.7 million in Q2 2023, with non-GAAP operating expenses also showing a decline to $40.0 million from $44.1 million. Adjusted EBITDA was $8.4 million, or 10.3% of total sales, compared to a negative $7.2 million, or (1.0%) of total sales, in Q2 2023.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Sales | $82.1 million | $88.2 million |
| Gross Margin | 54.6% | 37.8% |
| Net Loss | $(0.5) million | $(28.2) million |
| Non-GAAP EPS | $0.18 | $(0.57) |
| Adjusted EBITDA | $8.4 million | $(7.2) million |
Income Statement Highlights
Faro Technologies Inc (FARO, Financial) reported a gross profit of $44.8 million, up from $33.3 million in Q2 2023. Operating expenses were significantly reduced, with selling, general, and administrative expenses decreasing to $32.6 million from $38.6 million, and research and development expenses dropping to $9.8 million from $11.7 million. The company also reported a positive cash flow from operations of $4.2 million.
Balance Sheet and Cash Flow
As of June 30, 2024, Faro Technologies Inc (FARO, Financial) had cash, cash equivalents, and short-term investments totaling $97.9 million, compared to $96.3 million as of December 31, 2023. The company’s total assets stood at $481.1 million, with total liabilities amounting to $224.5 million. The company generated $10.8 million in net cash from operating activities during the first half of 2024.
Commentary and Outlook
“As I reflect on the completion of my first year at FARO, I am pleased with the execution of the first phase of our journey to drive operational excellence and we are pacing well ahead of our expectations,” said Peter Lau, President & Chief Executive Officer.
For Q3 2024, Faro Technologies Inc (FARO, Financial) expects revenue to be in the range of $76 to $84 million, with a gross margin between 53.0% and 54.5%. The company anticipates a net loss per share in the range of $(0.32) to $(0.12), with non-GAAP net loss to net income per share ranging from $(0.01) to $0.19.
For more detailed information, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Faro Technologies Inc for further details.
