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Sep 30, 2021
FARO Q3 2021 Earnings Report
FARO's financial performance reflected strong demand and strategic advancements.
Key Takeaways
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.
Revenue by Geographic Location
Forward Guidance
The company anticipate strong fourth quarter demand and look forward to demonstrating the operating leverage.
Positive Outlook
- 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.
Challenges Ahead
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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