FARO (FARO) 10-Q 1 Nov 23 2023 Q3 Quarterly report Financial data

Cover page

Cover page - shares	9 Months Ended
	Sep. 30, 2023	Oct. 30, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity File Number	0-23081
Entity Registrant Name	FARO TECHNOLOGIES, INC
Entity Incorporation, State or Country Code	FL
Entity Tax Identification Number	59-3157093
Entity Address, Address Line One	150 Technology Park,
Entity Address, City or Town	Lake Mary,
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	32746
City Area Code	407
Local Phone Number	333-9911
Title of 12(b) Security	Common Stock, par value $.001
Trading Symbol	FARO
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		18,954,257
Entity Central Index Key	0000917491
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 79,919	$ 37,812
Accounts receivable, net	88,363	90,326
Inventories, net	40,095	50,026
Prepaid expenses and other current assets	37,325	41,201
Total current assets	245,702	219,365
Non-current assets:
Property, plant and equipment, net	22,207	19,720
Operating lease right-of-use assets	12,521	18,989
Goodwill	106,873	107,155
Intangible assets, net	46,999	48,978
Service and sales demonstration inventory, net	22,662	30,904
Deferred income tax assets, net	24,093	24,192
Other long-term assets	4,047	4,044
Total assets	485,104	473,347
Current liabilities:
Accounts payable	23,408	27,286
Accrued liabilities	24,994	23,345
Income taxes payable	12,083	6,767
Current portion of unearned service revenues	34,493	36,407
Customer deposits	5,237	6,725
Lease liabilities	5,258	5,709
Total current liabilities	105,473	106,239
Loan - 5.50% Convertible Senior Notes	72,604	0
Unearned service revenues - less current portion	20,893	20,947
Lease liabilities - less current portion	11,495	14,649
Deferred income tax liabilities	11,497	11,708
Income taxes payable - less current portion	4,020	8,706
Other long-term liabilities	30	49
Total liabilities	226,012	162,298
Commitments and contingencies - See Note 13
Shareholders’ equity:
Common stock - par value $0.001, 50,000,000 shares authorized; 20,328,417 and 20,156,233 issued, respectively; 18,953,725 and 18,780,013 outstanding, respectively	20	20
Additional paid-in capital	340,414	328,227
Retained earnings	(11,377)	46,788
Accumulated other comprehensive loss	(39,310)	(33,331)
Common stock in treasury, at cost - 1,374,692 and 1,376,220 shares held, respectively	(30,655)	(30,655)
Total shareholders’ equity	259,092	311,049
Total liabilities and shareholders’ equity	$ 485,104	$ 473,347

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2023	Dec. 31, 2022
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	50,000,000	50,000,000
Common stock, shares issued (in shares)	20,328,417	20,156,233
Common stock, shares outstanding (in shares)	18,953,725	18,780,013
Treasury stock, shares (in shares)	1,374,692	1,376,220
5.50% Convertible senior notes due 2028 | Convertible Debt
Stated interest rate (as a percent)	5.50%

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Sales	$ 86,813	$ 85,332	$ 259,991	$ 241,906
Cost of sales	45,139	42,067	145,278	117,178
Gross profit	41,674	43,265	114,713	124,728
Operating expenses
Selling, general and administrative	37,970	37,226	117,907	108,734
Research and development	8,188	12,586	32,568	36,756
Restructuring costs	2,442	580	15,130	2,512
Total operating expenses	48,600	50,392	165,605	148,002
Loss from operations	(6,926)	(7,127)	(50,892)	(23,274)
Other (income) expense
Interest expense (income)	691	(24)	2,529	(28)
Other income, net	(381)	(1,428)	(125)	(3,077)
Loss before income tax	(7,236)	(5,675)	(53,296)	(20,169)
Income tax expense	1,520	586	4,869	4,352
Net loss	$ (8,756)	$ (6,261)	$ (58,165)	$ (24,521)
Net loss per share - Basic (in dollars per share)	$ (0.46)	$ (0.34)	$ (3.08)	$ (1.34)
Net loss per share - Diluted (in dollars per share)	$ (0.46)	$ (0.34)	$ (3.08)	$ (1.34)
Weighted average shares - Basic (in shares)	18,953,251	18,436,615	18,899,954	18,336,537
Weighted average shares - Diluted (in shares)	18,953,251	18,436,615	18,899,954	18,336,537
Product
Sales	$ 66,911	$ 65,581	$ 199,754	$ 182,015
Cost of sales	34,640	30,375	112,691	82,879
Service
Sales	19,902	19,751	60,237	59,891
Cost of sales	$ 10,499	$ 11,692	$ 32,587	$ 34,299

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Statement of Comprehensive Income [Abstract]
Net loss	$ (8,756)	$ (6,261)	$ (58,165)	$ (24,521)
Currency translation adjustments, net of income taxes	(7,080)	(11,796)	(5,979)	(26,791)
Net unrealized loss on short-term investments	(238)	0	0	0
Comprehensive loss	$ (16,074)	$ (18,057)	$ (64,144)	$ (51,312)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Operating activities:
Net loss	$ (58,165)	$ (24,521)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	11,728	10,061
Stock-based compensation	12,276	10,024
Inventory write-downs	8,132	0
Asset impairment charges	5,333	0
Deferred income tax (benefit) expense and other non-cash charges	(82)	568
Provision for excess and obsolete inventory	1,754	209
Amortization of debt discount and issuance costs	294	0
Loss on disposal of assets	(155)	356
Provisions for bad debts, net of recoveries	834	80
Decrease (Increase) in:
Accounts receivable	1,282	867
Inventories	(544)	2,129
Prepaid expenses and other current assets	4,047	(14,566)
(Decrease) Increase in:
Accounts payable and accrued liabilities	(2,802)	(2,249)
Income taxes payable	653	1,008
Customer deposits	(1,534)	588
Unearned service revenues	(1,198)	(2,710)
Other liabilities	567	0
Net cash used in operating activities	(17,580)	(18,156)
Investing activities:
Purchases of property and equipment	(5,016)	(4,978)
Cash paid for technology development, patents and licenses	(5,071)	(9,154)
Acquisition of business, net of cash acquired	0	(29,068)
Net cash used in investing activities	(10,087)	(43,200)
Financing activities:
Payments on finance leases	(154)	(172)
Payments for taxes related to net share settlement of equity awards	(89)	(1,584)
Proceeds from issuance of 5.50% Convertible Senior Notes, due 2028, net of discount, issuance cost and accrued interest	72,310	0
Payment of contingent consideration for business acquisition	(1,098)	0
Net cash provided by (used in) financing activities	70,969	(1,756)
Effect of exchange rate changes on cash and cash equivalents	(1,195)	(10,343)
Increase (Decrease) in cash and cash equivalents	42,107	(73,455)
Cash and cash equivalents, beginning of period	37,812	121,989
Cash and cash equivalents, end of period	$ 79,919	$ 48,534

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Parenthetical)	Sep. 30, 2023	Jan. 24, 2023
5.50% Convertible senior notes due 2028 | Convertible Debt
Stated interest rate (as a percent)	5.50%	5.50%

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Common Stock in Treasury
Beginning balance (in shares) at Dec. 31, 2021		18,205,636
Beginning balance at Dec. 31, 2021	$ 326,459	$ 20	$ 301,061	$ 73,544	$ (17,374)	$ (30,792)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(9,687)			(9,687)
Currency translation adjustment	(1,984)				(1,984)
Stock-based compensation	2,867		2,867
Common stock issued, net of shares withheld for employee taxes (in shares)		55,041
Common stock issued, net of shares withheld for employee taxes	(916)		(1,051)			135
Ending balance (in shares) at Mar. 31, 2022		18,260,677
Ending balance at Mar. 31, 2022	316,739	$ 20	302,877	63,857	(19,358)	(30,657)
Beginning balance (in shares) at Dec. 31, 2021		18,205,636
Beginning balance at Dec. 31, 2021	326,459	$ 20	301,061	73,544	(17,374)	(30,792)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(24,521)
Currency translation adjustment	(26,791)
Ending balance (in shares) at Sep. 30, 2022		18,766,936
Ending balance at Sep. 30, 2022	299,464	$ 20	325,244	49,022	(44,165)	(30,657)
Beginning balance (in shares) at Mar. 31, 2022		18,260,677
Beginning balance at Mar. 31, 2022	316,739	$ 20	302,877	63,857	(19,358)	(30,657)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(8,574)			(8,574)
Currency translation adjustment	(13,011)				(13,011)
Stock-based compensation	3,491		3,491
Common stock issued, net of shares withheld for employee taxes (in shares)		6,080
Common stock issued, net of shares withheld for employee taxes	(249)		(249)
Ending balance (in shares) at Jun. 30, 2022		18,266,757
Ending balance at Jun. 30, 2022	298,396	$ 20	306,119	55,283	(32,369)	(30,657)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(6,261)			(6,261)
Currency translation adjustment	(11,796)				(11,796)
Stock-based compensation	3,666		3,666
Common stock issued, net of shares withheld for employee taxes (in shares)		4,617
Common stock issued, net of shares withheld for employee taxes	(419)		(419)
Acquisition of business (in shares)		495,562
Acquisition of business	15,878		15,878
Ending balance (in shares) at Sep. 30, 2022		18,766,936
Ending balance at Sep. 30, 2022	$ 299,464	$ 20	325,244	49,022	(44,165)	(30,657)
Beginning balance (in shares) at Dec. 31, 2022	18,780,013	18,780,013
Beginning balance at Dec. 31, 2022	$ 311,049	$ 20	328,227	46,788	(33,331)	(30,655)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(21,164)			(21,164)
Currency translation adjustment	2,780				2,780
Stock-based compensation	3,634		3,634
Common stock issued, net of shares withheld for employee taxes (in shares)		122,108
Common stock issued, net of shares withheld for employee taxes	14		14
Ending balance (in shares) at Mar. 31, 2023		18,902,121
Ending balance at Mar. 31, 2023	$ 296,313	$ 20	331,875	25,624	(30,551)	(30,655)
Beginning balance (in shares) at Dec. 31, 2022	18,780,013	18,780,013
Beginning balance at Dec. 31, 2022	$ 311,049	$ 20	328,227	46,788	(33,331)	(30,655)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(58,165)
Currency translation adjustment	$ (5,979)
Ending balance (in shares) at Sep. 30, 2023	18,953,725	18,953,725
Ending balance at Sep. 30, 2023	$ 259,092	$ 20	340,414	(11,377)	(39,310)	(30,655)
Beginning balance (in shares) at Mar. 31, 2023		18,902,121
Beginning balance at Mar. 31, 2023	296,313	$ 20	331,875	25,624	(30,551)	(30,655)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(28,245)			(28,245)
Currency translation adjustment	(1,679)				(1,679)
Unrealized gain (loss) on short-term investment	238				238
Stock-based compensation	4,950		4,950
Common stock issued, net of shares withheld for employee taxes (in shares)		44,677
Common stock issued, net of shares withheld for employee taxes	(291)		(291)
Ending balance (in shares) at Jun. 30, 2023		18,946,798
Ending balance at Jun. 30, 2023	271,286	$ 20	336,534	(2,621)	(31,992)	(30,655)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(8,756)			(8,756)
Currency translation adjustment	(7,080)				(7,080)
Unrealized gain (loss) on short-term investment	(238)				(238)
Stock-based compensation	3,692		3,692
Common stock issued, net of shares withheld for employee taxes (in shares)		6,927
Common stock issued, net of shares withheld for employee taxes	$ 188		188
Ending balance (in shares) at Sep. 30, 2023	18,953,725	18,953,725
Ending balance at Sep. 30, 2023	$ 259,092	$ 20	$ 340,414	$ (11,377)	$ (39,310)	$ (30,655)

Description of Business

Description of Business	9 Months Ended
	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
DESCRIPTION OF BUSINESS	DESCRIPTION OF BUSINESSFARO Technologies, Inc. and its subsidiaries (collectively “FARO,” the “Company,” “us,” “we” or “our”) design, develop, manufacture, market and support software driven, three-dimensional (“3D”) measurement, imaging, and realization solutions for the 3D metrology, architecture, engineering and construction (“AEC”), Operations and Maintenance (“O&M”) and public safety analytics markets. We enable our customers to capture, measure, manipulate, interact with and share 3D and 2D data from the physical world in a virtual environment and then translate this information back into the physical domain. Our broad technology set equips our customers with a wide range of 3D capture technologies that range from ultra-high accuracy laser-scanner-based technology to lower accuracy, photogrammetry-based technology. Our FARO suite of 3D products and software solutions are used for inspection of components and assemblies, rapid prototyping, reverse engineering, documenting large volume or structures in 3D, surveying and construction, construction management, assembly layout, machine guidance as well as in investigation and reconstructions of crash and crime scenes. We sell the majority of our solutions through a direct sales force, with an increasing volume being sold through an indirect channel across a range of industries including automotive, aerospace, metal and machine fabrication, surveying, architecture, engineering and construction, public safety forensics and other industries.

Principles of Consolidation

Principles of Consolidation	9 Months Ended
	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
PRINCIPLES OF CONSOLIDATION	PRINCIPLES OF CONSOLIDATIONOur condensed consolidated financial statements include the accounts of FARO Technologies, Inc. and its subsidiaries, all of which are wholly-owned. All intercompany transactions and balances have been eliminated. The financial statements of our foreign subsidiaries are translated into U.S. dollars using exchange rates in effect at period-end for assets and liabilities and average exchange rates during each reporting period for results of operations. Adjustments resulting from financial statement translations are reflected as a separate component of accumulated other comprehensive loss. Foreign currency transaction gains and losses are included in net income (loss)

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements and notes thereto have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions of Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These condensed consolidated financial statements include all normal recurring accruals and adjustments considered necessary by management for a fair presentation in conformity with U.S. GAAP. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. The condensed consolidated results of operations for the nine months ended September 30, 2023 are not necessarily indicative of results that may be expected for the year ending December 31, 2023, or any future period. The information included in this Quarterly Report on Form 10-Q, including the interim condensed consolidated financial statements and the accompanying notes, should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022. The accompanying December 31, 2022 condensed consolidated balance sheet has been derived from those audited consolidated financial statements. Stock-based compensation expense is allocated to the applicable departmental cost in our condensed consolidated financial statements. The following table summarizes total stock-based compensation expense for each of the line items on our condensed consolidated statements of operations: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Cost of sales Product $ 229 $ 231 $ 833 $ 635 Service 51 42 139 121 Total cost of sales 280 273 972 756 Operating expenses Selling, general and administrative 3,588 2,742 9,710 7,475 Research and development (176) 651 1,594 1,793 Total operating expenses 3,412 3,393 11,304 9,268 Total stock-based compensation $ 3,692 $ 3,666 $ 12,276 $ 10,024

Impact of Recently Issued Accou

Impact of Recently Issued Accounting Pronouncements	9 Months Ended
	Sep. 30, 2023
Accounting Changes and Error Corrections [Abstract]
IMPACT OF RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS	IMPACT OF RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS Impact of Recently Adopted Accounting Standards In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Asset and Contract Liabilities from Contracts with Customers, which intends to simplify the accounting for acquired revenue contracts with customers in a business combination and to also remove inconsistencies in this topic related to recognition of an acquired contract liability and payment terms and their effect on subsequent revenue recognized by the acquirer. ASU No. 2021-08 allows an acquirer to recognize and measure contract assets and contract liabilities acquired in a business combination in a similar manner to how they are recorded on the acquiree’s financial statements at book value. Early adoption is permitted and we early adopted ASU No. 2021-08 in the fourth quarter of 2021. As a result of the early adoption of ASU No.2021-08, we recorded the deferred revenue associated with the acquisition of Holobuilder in 2021 at its book value of approximately $4.0 million. Further, we recorded the deferred revenue associated with the acquisition of GeoSLAM in 2022 at its book value of approximately $1.3 million. In August 2020, the FASB issued ASU No. 2020-06—Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity. The update simplifies the accounting for convertible instruments that were previous separated into a debt component and an equity component, and our convertible debt was already determined to be a single debt instrument that did not require bifurcation. The Company adopted ASU 2020-06 as of January 1, 2022, and therefore, the Notes (as defined below) would not be subject to any beneficial conversion or cash conversion guidance. Moreover, the Company did not elect the fair value option - as defined in ASC 825 and 815 - to present the Notes on its financial statements.

Revenues

Revenues	9 Months Ended
	Sep. 30, 2023
Revenue from Contract with Customer [Abstract]
REVENUES	REVENUES The following tables present our revenues by sales type as presented in our condensed consolidated statements of operations disaggregated by the timing of transfer of goods or services: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Product sales Product transferred to customers at a point in time $ 60,882 $ 60,090 $ 183,511 $ 165,750 Product transferred to customers over time 6,029 5,491 16,243 16,265 Total product sales $ 66,911 $ 65,581 $ 199,754 $ 182,015 Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Service sales Service transferred to customers at a point in time $ 8,875 $ 8,651 $ 26,343 $ 25,973 Service transferred to customers over time 11,027 11,100 33,894 33,918 Total service sales $ 19,902 $ 19,751 $ 60,237 $ 59,891 The following table presents our revenues disaggregated by geography, based on the billing addresses of our customers: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Total sales to external customers Americas (1) $ 41,033 $ 38,732 $ 124,734 $ 110,077 EMEA (1) 25,621 22,802 74,641 66,494 APAC (1) 20,159 23,798 60,616 65,335 $ 86,813 $ 85,332 $ 259,991 $ 241,906 (1) Regions represent North America and South America (the “Americas”); Europe, the Middle East, and Africa (“EMEA”); and Asia-Pacific (“APAC”). For revenue related to our measurement and imaging equipment and related software, we allocate the contract price to performance obligations based on our best estimate of the standalone selling price. We make this allocation estimate utilizing data from the sale of our applicable products and services to customers separately in similar circumstances. Revenue related to our measurement and imaging equipment and related software is generally recognized upon shipment from our facilities or when delivered to the customer location, as determined by the agreed upon shipping terms, at which time we are entitled to payment and title and control has passed to the customer. Software arrangements generally include short-term maintenance that is considered post-contract support (“PCS”), which is considered to be product transferred to the customer over time and a separate performance obligation. We generally establish a standalone sales price for this PCS component based on our maintenance renewal rate. Maintenance renewals are recognized on a straight-line basis over the term of the maintenance agreement. Payments for products and services are collected within a short period of time following transfer of control or commencement of delivery of services, as applicable. Further, customers frequently purchase extended hardware service contracts with the purchase of measurement equipment and related software. Hardware service contracts are considered a performance obligation when services are transferred to a customer over time, and, as such, we recognize revenue on a straight-line basis over the contractual term. Hardware service contracts include contract periods that extend between one month to three years. We capitalize commission expenses related to deliverables transferred to a customer over time and amortize such costs ratably over the term of the contract. As of September 30, 2023, the deferred cost asset related to deferred commissions was approximately $2.9 million . For classification purposes, $1.9 million and $1.0 million are comprised within the Prepaid expenses and other current assets and Other long-term assets, respectively, on our condensed consolidated balance sheet as of September 30, 2023 . As of December 31, 2022, the deferred cost asset related to deferred commissions was approximately $3.0 million. For classification purposes, $2.0 million and $1.0 million were comprised within the Prepaid expenses and other current assets and Other long-term assets, respectively, on our condensed consolidated balance sheet as of December 31, 2022. The unearned service revenue liabilities reported on our condensed consolidated balance sheets reflect the contract liabilities to satisfy the remaining performance obligations for extended warranties, subscription-based software and software maintenance. The current portion of unearned service revenues on our condensed consolidated balance sheets is what we expect to recognize as revenue within twelve months after the applicable balance sheet date relating to extended warranties, subscription-based software and software maintenance contract liabilities. The unearned service revenues less the current portion on our condensed consolidated balance sheets is what we expect to recognize as revenue extending beyond twelve months after the applicable balance sheet date relating to extended warranties, subscription-based software and software maintenance contract liabilities. Customer deposits on our condensed consolidated balance sheets represent customer prepayments on contracts for performance obligations that we must satisfy in the future to recognize the related contract revenue. These amounts are generally related to performance obligations which are delivered in less than 12 months. During the three and nine months ended September 30, 2023, we recognized $19.0 million and $27.5 million of revenue that was deferred on our condensed consolidated balance sheet as of June 30, 2023 and December 31, 2022. During the three and nine months ended September 30, 2022, we recognized $8.7 million and $29.1 million of revenue that was deferred on our condensed consolidated balance sheet as of June 30, 2022 and December 31, 2021. The nature of certain of our contracts gives rise to variable consideration, primarily related to an allowance for sales returns. We are required to estimate the contract asset related to sales returns and record a corresponding adjustment to Cost of sales. Our allowance for sales returns for September 30, 2023 and December 31, 2022 was approximately $0.1 million, and $0.3 million, respectively. Shipping and handling fees billed to customers in a sales transaction are recorded in Product Sales and shipping and handling costs incurred are recorded in Cost of sales. We exclude from Sales any value-added sales and other taxes that we collect concurrently with revenue-producing activities.

Accounts Receivable

Accounts Receivable	9 Months Ended
	Sep. 30, 2023
Receivables [Abstract]
ACCOUNTS RECEIVABLE	ACCOUNTS RECEIVABLE Accounts receivable consist of the following: As of September 30, 2023 As of December 31, 2022 Accounts receivable $ 91,401 $ 92,611 Allowance for credit losses (3,038) (2,285) Total $ 88,363 $ 90,326 Activity related to the allowance for credit losses was as follows: Nine Months Ended September 30, 2023 Beginning balance of the allowance for credit losses $ (2,285) Current period provision for expected credit losses, net of recoveries (834) Charge-offs of amounts previously expensed 81 Ending balance of the allowance for credit losses $ (3,038)

Inventories

Inventories	9 Months Ended
	Sep. 30, 2023
Inventory Disclosure [Abstract]
INVENTORIES	INVENTORIESInventories are stated at the lower of cost or net realizable value using the first-in first-out (FIFO) method. We have three principal categories of inventory: 1) manufactured product to be sold; 2) sales demonstration inventory - completed product used to support our sales force for demonstrations and held for sale; and 3) service inventory - completed product and parts used to support our service department and held for sale. Shipping and handling costs are classified as a component of Cost of sales in our condensed consolidated statements of operations. Sales demonstration inventory is held by our sales representatives for up to three years, at which time it would be refurbished and transferred to finished goods as used equipment, stated at the lower of cost or net realizable value. We expect these refurbished units to remain in finished goods inventory and sold within 12 months at prices that produce reduced gross margins. Service inventory is used to provide a temporary replacement product to a customer covered by a premium warranty when the customer’s unit requires service or repair and as training equipment. Service inventory is available for sale; however, management does not expect service inventory to be sold within 12 months and, as such, classifies this inventory as a long-term asset. Service inventory that we utilize for training or repairs and which we deem as no longer available for sale is transferred to fixed assets at the lower of cost or net realizable value and depreciated over the remaining life, typically three years. Inventories consist of the following: As of September 30, 2023 As of December 31, 2022 Raw materials $ 21,679 $ 33,076 Finished goods 18,416 16,950 Inventories, net 40,095 50,026 Service and sales demonstration inventory, net $ 22,662 $ 30,904

Goodwill

Goodwill	9 Months Ended
	Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL	GOODWILL The Company recognizes the excess of the purchase price over the fair value of identifiable net assets acquired as goodwill. The Company performs a qualitative assessment on goodwill at least annually on December 31 or more frequently if events or changes in circumstances indicate that the carrying value of goodwill may not be recoverable. If it is determined in the qualitative assessment that the fair value of a reporting unit is more likely than not below its carrying amount, then the Company will perform a quantitative impairment test. In the second quarter of 2023, the Company’s common stock price declined significantly and dropped below its equity book value, which triggered a goodwill impairment analysis under FASB Topic 350 Intangibles – Goodwill and Other . For the purposes of the impairment analysis, goodwill is tested at the entity level as the Company has only one reporting unit. In determining the fair value of the reporting unit, the Company uses a combination of the income approach and the market approach, with each method weighted equally. Under the income approach, fair value is determined based on our estimates of future after-tax cash flows, discounted using the appropriate weighted average cost of capital. Under the market approach, the fair value is derived based on the valuation multiples of comparable publicly traded companies. As of June 30, 2023, the fair value of the reporting unit exceeded its net book value by approximately 45%. There was no impairment charge recorded. The underlying valuation techniques deployed in the analysis are highly judgmental and entail significant estimates, including but not limited to, future growth and profitability, discount rates, and selection of peer companies and valuation multiples. Estimates are made based on the information available at the time of the valuation. Future changes in estimates and assumptions could result in material changes in the valuation. During the three months ended September 30, 2023, the trading price of the Company's common stock was higher than the net book value of equity at September 30, 2023. As a result, the Company determined that a triggering event had not occurred for the Company’s reporting unit for goodwill impairment assessment during the three months ended September 30, 2023. We had $106.9 million and $107.2 million of goodwill as of September 30, 2023 and December 31, 2022, respectively.

Net Loss Per Share

Net Loss Per Share	9 Months Ended
	Sep. 30, 2023
Earnings Per Share [Abstract]
NET LOSS PER SHARE	NET LOSS PER SHAREBasic net loss per share is computed by dividing net loss by the weighted average number of shares outstanding. Diluted net loss per share is computed by also considering the impact of potential common stock on both net loss and the weighted average number of shares outstanding. Our potential common stock consists of employee stock options, time-based restricted stock units, market-based restricted stock unit awards, and common stock issued for settlement of the Notes (as defined in Note 17 to the condensed consolidated financial statements). Our potential common stock is included in the diluted earnings per share calculation when adding such potential common stock would not be anti-dilutive. Market-based awards are included in the computation of diluted earnings per share only to the extent that the underlying conditions (and any applicable market condition) (i) are satisfied as of the end of the reporting period or (ii) would be considered satisfied if the end of the reporting period were the end of the related contingency period and the result would be dilutive under the treasury stock method. When we report a net loss for the period presented, the calculation of diluted net loss per share excludes our potential common stock, as the effect would be anti-dilutive. As of September 30, 2023, there were approximately 1,439,944 shares issuable upon the exercise of options, the vesting of time-based restricted stock and the contingent vesting of market-based restricted stock units that were excluded from the dilutive calculations, as they were anti-dilutive. For the three and nine months ended September 30, 2022, there were approximately 578,121 issuable upon the exercise of options that were excluded from the dilutive calculations, as they were anti-dilutive. In addition, the Company issued $75 million aggregate principal amount of the Notes on January 24, 2023, which, if converted, would result in the issuance of a maximum of 2,124,645 shares of common stock. These shares were excluded from the dilutive calculations, as their effect would have been anti-dilutive. A reconciliation of the number of common shares used in the calculation of basic and diluted net loss per share is presented below: Three Months Ended September 30, 2023 2022 Shares Per-Share Shares Per-Share Basic net loss per share 18,953,251 $ (0.46) 18,436,615 $ (0.34) Effect of dilutive securities — — — — Diluted net loss per share 18,953,251 $ (0.46) 18,436,615 $ (0.34) Nine Months Ended September 30, 2023 2022 Shares Per-Share Shares Per-Share Basic net loss per share 18,899,954 $ (3.08) 18,336,537 $ (1.34) Effect of dilutive securities — — — — Diluted net loss per share 18,899,954 $ (3.08) 18,336,537 $ (1.34)

Accrued Liabilities

Accrued Liabilities	9 Months Ended
	Sep. 30, 2023
Payables and Accruals [Abstract]
ACCRUED LIABILITIES	ACCRUED LIABILITIES Accrued liabilities consist of the following: As of September 30, 2023 As of December 31, 2022 Accrued compensation and benefits $ 14,656 $ 12,483 Accrued restructuring costs 2,482 528 Accrued warranties 2,718 2,610 Professional and legal fees 3,263 1,662 Taxes other than income 127 3,737 Other accrued liabilities 1,748 2,325 Total accrued liabilities $ 24,994 $ 23,345 Activity related to accrued warranties was as follows: Nine Months Ended September 30, 2023 2022 Balance, beginning of period $ 2,610 $ 1,880 Provision for warranty expense 2,731 2,548 Fulfillment of warranty obligations (2,623) (2,236) Balance, end of period $ 2,718 $ 2,192

Fair value measurements and inv

Fair value measurements and investments	9 Months Ended
	Sep. 30, 2023
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS AND INVESTMENTS	FAIR VALUE MEASUREMENTS AND INVESTMENTS Fair Value Measurements Our financial instruments include cash and cash equivalents, accounts receivable, customer deposits, accounts payable and accrued liabilities. The carrying amounts of such financial instruments approximate their fair value due to the short-term nature of these instruments. Liabilities measured at fair value on a recurring basis are categorized in the tables below based upon the lowest level of significant input to the valuations. As of December 31, 2022 Level 1 Level 2 Level 3 Liabilities Contingent consideration $ — $ — $ 1,043 Total $ — $ — $ 1,043

Restructuring

Restructuring	9 Months Ended
	Sep. 30, 2023
Restructuring and Related Activities [Abstract]
RESTRUCTURING	RESTRUCTURING In the first quarter of 2020, our Board of Directors approved a global restructuring plan (the “Restructuring Plan”), which is intended to support our strategic plan in an effort to improve operating performance and ensure that we are appropriately structured and resourced to deliver increased and sustainable value to our shareholders and customers. Key activities under the Restructuring Plan include a continued focus on efficiency and cost-saving efforts, which included a planned decrease of total headcount. On July 15, 2021, we entered into a manufacturing services agreement (the “Agreement”) with Sanmina Corporation (“Sanmina”), in connection with the Restructuring Plan. Under the Agreement, Sanmina will provide manufacturing services for the Company’s measurement device products manufactured by the Company at the Company’s Lake Mary, Florida, Exton, Pennsylvania, Stuttgart, Germany and Portugal manufacturing sites. This phased transition to a Sanmina production facility was completed at the beginning of the third quarter of 2022 as part of our cost reduction initiative. As a result of an evaluation on the usage of our manufacturing spaces, we decided to abandon 17,000 square feet of unused space at our Exton, Pennsylvania facility in the third quarter of 2022. Since the approval of the Restructuring Plan, we paid $24.8 million, primarily consisting of severance and related benefits. All actions under this plan were completed as of March 31, 2023, and the remaining amounts payable of $0.5 million were rolled forward to the Integration Plan discussed below. On February 7, 2023, our Board of Directors approved an integration plan (the "Integration Plan"), which is intended to streamline and simplify operations, particularly around our recent acquisitions and the resulting redundant operations and offerings. The Integration Plan was amended on May 3, 2023, and the Board approved increases to both the expected pre-tax charges and the annualized cost savings. Key activities under the Integration Plan include a planned decrease in headcount, consolidation of our cloud-based offerings from 3 platforms (2 acquired, 1 organic) into a single customer offering, and the optimization of our facility assets to align with current and expected future utilization. We expected to incur total pre-tax charges in the range of $22 million to $28 million for the Integration Plan predominantly through the end of fiscal year 2023, with a targeted annualized savings of approximately $20 million to $30 million. As of September 30, 2023, in relation with the Integration Plan, we have incurred total restructuring charges of $24.2 million, and have made cash payments of $7.1 million. During the nine months ended September 30, 2023, we have completed an evaluation of our leased facilities located in Lake Mary, Florida, Stuttgart and Dresden, Germany, Portugal and Singapore and determined that we will abandon portions of these facilities. Consequently, we recorded right-of-use asset and leasehold improvement impairment charges of $0.3 million and $4.0 million for the three and nine months ended September 30, 2023, which was included in restructuring costs on the condensed consolidated statements of operations. We expect to make cash payments for the remaining duration of the contractual lease period approximating the right-of-use asset write-off value. As a part of the Integration Plan, we also evaluated our product portfolio and decided to discontinue certain legacy products. This led to inventory and related purchase commitments impairment charges of $8.1 million, which were included in the cost of sales on the condensed consolidated statements of operations. In the third quarter of 2023 and 2022, we recognized $1.6 million and $17.0 thousand, respectively, in employee severance and other professional costs associated with the restructuring plans. Additionally, we paid $3.1 million and $2.6 million, respectively, for the same periods, primarily consisting of severance and related benefits. Activity related to the accrued restructuring charges for the Integration Plan and cash payments during the nine months ended September 30, 2023 is as follows: Severance and other benefits Professional fees and other related charges Total Balance at December 31, 2022 $ 318 $ 210 $ 528 Additions charged to expense 8,836 220 9,056 Cash payments (7,102) — (7,102) Balance at September 30, 2023 $ 2,052 $ 430 $ 2,482 Severance and other benefits Professional fees and other related charges Total Balance at December 31, 2021 $ 3,442 $ 477 $ 3,919 Additions charged to expense 1,439 1,072 2,511 Cash payments (4,619) (1,291) (5,910) Balance at September 30, 2022 $ 262 $ 258 $ 520

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Purchase Commitments — We enter into purchase commitments for products and services in the ordinary course of business. These purchases generally cover production requirements for 60 to 120 days as well as materials necessary to service customer units through the product lifecycle and for warranty commitments. As of September 30, 2023, we had approximately $26.4 million in purchase commitments that are expected to be delivered within the next 12 months. The Company’s long-term purchase commitments were immaterial as a result of the ongoing transition towards direct sourcing with Sanmina. Legal Proceedings — We are not involved in any legal proceedings other than routine litigation arising in the normal course of business, none of which we believe will have a material adverse effect on our business, financial condition or results of operations.

Leases

Leases	9 Months Ended
	Sep. 30, 2023
Leases [Abstract]
LEASES	LEASESWe have operating and finance leases for manufacturing facilities, corporate offices, research and development facilities, sales and training facilities, vehicles, and certain equipment under which we assume the role of lessee. We do not lease assets as a lessor. Our leases have remaining lease terms of less than one year to approximately ten years, some of which include options to extend the leases for up to fifteen years, and some of which include options to terminate the leases within three months. We do not participate in any material subleasing. We determine if an arrangement is a lease at inception. Operating leases are included in Operating lease right-of-use (“ROU”) asset, Lease liability, and Lease liability - less current portion in our condensed consolidated balance sheets. Finance leases are included in Property and equipment, net, Lease liability, and Lease liability - less current portion in our condensed consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized on the commencement date of the lease based on the present value of lease payments over the lease term. Variable lease payments that depend on an index or rate include the variable portion when calculating ROU assets and lease liabilities. Variable lease payments that do not depend on an index or rate are expensed as incurred. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available on the commencement date of the lease to determine the present value of lease payments. We use the implicit rate when readily determinable. The operating lease ROU assets also include any lease payments made and lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option at the time the lease is commenced. Lease expense for lease payments is recognized on a straight-line basis over the lease term. While we have lease agreements with lease and non-lease components, we account for the lease and non-lease components as a single lease component. The components of lease expense were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Operating lease cost $ 1,598 $ 1,805 $ 5,169 $ 5,453 Finance lease cost: Amortization of ROU assets 21 18 70 96 Interest on lease liabilities 3 4 12 15 Total finance lease cost $ 24 $ 22 $ 82 $ 111 We recognize lease payments made for short-term leases where terms are 12 months or less as the payments are incurred. Our short-term lease costs for the three months ended September 30, 2023 and September 30, 2022 were both less than $0.1 million. Our short-term lease costs for the nine months ended September 30, 2023 and September 30, 2022 were both less than $0.1 million. Supplemental balance sheet information related to leases was as follows: As of As of September 30, 2023 December 31, 2022 Operating leases: Operating lease right-of-use assets $ 12,521 $ 18,989 Current operating lease liabilities 5,258 5,535 Operating lease liabilities - less current portion 11,495 14,532 Total operating lease liabilities 16,753 20,067 Finance leases: Property and equipment, at cost 1,589 1,523 Accumulated amortization (1,442) (1,387) Property and equipment, net 147 136 Current finance lease liabilities 120 174 Finance lease liabilities - less current portion 95 117 Total finance lease liabilities $ 215 $ 291 Weighted Average Remaining Lease Term (in years): Operating leases 4.67 4.97 Finance leases 2.16 2.24 Weighted Average Discount Rate: Operating leases 5.68 % 5.67 % Finance leases 5.12 % 5.31 % Supplemental cash flow information related to leases was as follows: Nine Months Ended September 30, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 5,535 $ 5,686 Operating cash flows from finance leases 12 15 Financing cash flows from finance leases 154 172 ROU assets obtained in exchange for lease obligations: Operating leases $ 721 $ 808 Maturities of lease liabilities are as follows: Year Ending December 31, Operating leases Finance leases 2023 (excluding the first 9 months) $ 1,695 $ 48 2024 5,955 95 2025 3,718 47 2026 2,428 28 2027 1,598 9 Thereafter 3,801 — Total lease payments 19,195 227 Less imputed interest (2,442) (12) Total $ 16,753 $ 215
LEASES	LEASESWe have operating and finance leases for manufacturing facilities, corporate offices, research and development facilities, sales and training facilities, vehicles, and certain equipment under which we assume the role of lessee. We do not lease assets as a lessor. Our leases have remaining lease terms of less than one year to approximately ten years, some of which include options to extend the leases for up to fifteen years, and some of which include options to terminate the leases within three months. We do not participate in any material subleasing. We determine if an arrangement is a lease at inception. Operating leases are included in Operating lease right-of-use (“ROU”) asset, Lease liability, and Lease liability - less current portion in our condensed consolidated balance sheets. Finance leases are included in Property and equipment, net, Lease liability, and Lease liability - less current portion in our condensed consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized on the commencement date of the lease based on the present value of lease payments over the lease term. Variable lease payments that depend on an index or rate include the variable portion when calculating ROU assets and lease liabilities. Variable lease payments that do not depend on an index or rate are expensed as incurred. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available on the commencement date of the lease to determine the present value of lease payments. We use the implicit rate when readily determinable. The operating lease ROU assets also include any lease payments made and lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option at the time the lease is commenced. Lease expense for lease payments is recognized on a straight-line basis over the lease term. While we have lease agreements with lease and non-lease components, we account for the lease and non-lease components as a single lease component. The components of lease expense were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Operating lease cost $ 1,598 $ 1,805 $ 5,169 $ 5,453 Finance lease cost: Amortization of ROU assets 21 18 70 96 Interest on lease liabilities 3 4 12 15 Total finance lease cost $ 24 $ 22 $ 82 $ 111 We recognize lease payments made for short-term leases where terms are 12 months or less as the payments are incurred. Our short-term lease costs for the three months ended September 30, 2023 and September 30, 2022 were both less than $0.1 million. Our short-term lease costs for the nine months ended September 30, 2023 and September 30, 2022 were both less than $0.1 million. Supplemental balance sheet information related to leases was as follows: As of As of September 30, 2023 December 31, 2022 Operating leases: Operating lease right-of-use assets $ 12,521 $ 18,989 Current operating lease liabilities 5,258 5,535 Operating lease liabilities - less current portion 11,495 14,532 Total operating lease liabilities 16,753 20,067 Finance leases: Property and equipment, at cost 1,589 1,523 Accumulated amortization (1,442) (1,387) Property and equipment, net 147 136 Current finance lease liabilities 120 174 Finance lease liabilities - less current portion 95 117 Total finance lease liabilities $ 215 $ 291 Weighted Average Remaining Lease Term (in years): Operating leases 4.67 4.97 Finance leases 2.16 2.24 Weighted Average Discount Rate: Operating leases 5.68 % 5.67 % Finance leases 5.12 % 5.31 % Supplemental cash flow information related to leases was as follows: Nine Months Ended September 30, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 5,535 $ 5,686 Operating cash flows from finance leases 12 15 Financing cash flows from finance leases 154 172 ROU assets obtained in exchange for lease obligations: Operating leases $ 721 $ 808 Maturities of lease liabilities are as follows: Year Ending December 31, Operating leases Finance leases 2023 (excluding the first 9 months) $ 1,695 $ 48 2024 5,955 95 2025 3,718 47 2026 2,428 28 2027 1,598 9 Thereafter 3,801 — Total lease payments 19,195 227 Less imputed interest (2,442) (12) Total $ 16,753 $ 215

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2023
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES For the three months ended September 30, 2023 , we recorded an income tax expense of $1.5 million compared with an income tax expense of $0.6 million for the three months ended September 30, 2022. Our effective tax rate was 21.0% for the three months ended September 30, 2023, compared with 10.3% in the prior year period. The tax rate for the three months ended September 30, 2023 reflects a tax expense on a pre-tax loss consistent with the prior year period as our United States and Singapore entities remain in a full valuation allowance. Accordingly, we are not able to recognize the tax benefits associated with pre-tax losses generated in those jurisdictions. Our quarterly estimate of our annual effective tax rate, and our quarterly provision for income tax (benefit) expense, are subject to significant variation due to numerous factors, including variability in accurately predicting our pre-tax and taxable income or loss and the mix of jurisdictions to which they relate, as well as the amount of pre-tax income or loss recognized during the quarter.

Business Combinations

Business Combinations	9 Months Ended
	Sep. 30, 2023
Business Combination and Asset Acquisition [Abstract]
BUSINESS COMBINATIONS	BUSINESS COMBINATIONS On September 1, 2022, we completed the acquisition of UK-based GeoSLAM, a leading provider of mobile scanning solutions with proprietary high-productivity simultaneous localization and mapping (SLAM) software. We believe this acquisition enables the Company to provide mobile scanning solutions using SLAM software to create 3D models for use in Digital Twin applications. We believe these newly acquired capture technologies integrate into our 4D digital reality-based SaaS offering that will allow customers to access multiple 4D data sources for visualization and analysis through a single user experience. We acquired all voting equity interests of GeoSLAM held by the previous owners. The results of GeoSLAM’s operations as of and after the date of acquisition have been included in our condensed consolidated financial statements as of and for the period ended September 30, 2023. The total purchase price included $29 million of cash paid, net of cash acquired and a non-cash payment of 495,562 shares of FARO stock valued at $15.9 million that is subject to customary lock-up provisions for a total purchase price of $44.9 million. The acquisition of GeoSLAM constitutes a business combination as defined by ASC Topic 805, Business Combinations . Accordingly, the assets acquired and liabilities assumed were recorded at their fair values on the date of acquisition. The purchase price allocations below represent our determination of the fair value of the assets acquired and liabilities assumed for the acquisitions. Following is a summary of our allocations of the purchase price to the fair values of the assets acquired and liabilities assumed as of the date of the acquisition: Fair Value Tangible assets acquired: Accounts receivable $ 2,452 Inventory 6,576 Property, plant and equipment, net 270 Other assets 505 Total assets acquired 9,803 Liabilities assumed: Accounts payable and accrued liabilities (2,187) Deferred revenue (1,282) Other current liabilities (289) Total liabilities assumed (3,758) Intangible assets 18,610 Net assets acquired 24,655 Deferred income tax liability 4,472 Goodwill 24,763 Purchase price paid, net of cash acquired $ 44,946 The goodwill arising from the acquisition consists largely of the expected synergies from combining operations as well as the value of the workforce. This goodwill is not tax deductible. Acquisition and integration costs are not included as components of consideration transferred but are recorded as expense in the period in which such costs are incurred. As of September 30, 2023, we have incurred $2.1 million of acquisition or integration costs for the GeoSLAM acquisition. Accounts receivable acquired represent a gross contractual amount of $2.6 million of which we expect to collect $2.5 million. We believe that the fair value of these receivables approximates the net book value given their short-term nature. Pro forma financial results for GeoSLAM have not been presented because the effects of these transactions, individually and in the aggregate, were not material to our condensed consolidated financial results. Following are the details of the purchase price allocated to the intangible assets acquired for the GeoSLAM acquisition: Amount Weighted Average Life (Years) Brand $ 466 3 Technology 3,828 5 Customer relationships 14,316 15 Fair value of intangible assets acquired $ 18,610 13 On December 1, 2022, we completed the acquisition of SiteScape, an innovator in LiDAR 3D scanning software solutions for the AEC and O&M markets. SiteScape enables LiDAR equipped mobile devices to easily capture indoor spaces digitally, providing a readily available entry-point to scanning physical spaces for a broad range of applications. We believe integrating SiteScape’s iOS-enabled low-resolution LiDAR capture capability into the FARO Sphere Platform will allow streamlining multiple capture methods into a single centralized environment on a single coordinate system. We believe this enables FARO’s construction and facilities customers to access a portfolio which now contains low-resolution Lidar, 360° photo, video, mobile mapping and terrestrial laser scanning. The total purchase price included $1.9 million of cash paid, net of cash acquired. The results of SiteScape’s operations as of and after the date of acquisition have been included in our consolidated financial statements as of and for the period ended September 30, 2023. The acquisition of SiteScape constitutes a business combination as defined by ASC Topic 805, Business Combinations . Accordingly, the assets acquired and liabilities assumed were recorded at their fair values on the date of acquisition. The purchase price allocations below represent our determination of the fair value of the assets acquired and liabilities assumed for the acquisitions. Following is a summary of our allocations of the purchase price to the fair values of the assets acquired and liabilities assumed as of the date of the acquisition: Fair Value Intangible assets $ 807 Goodwill 1,109 Purchase price paid, net of cash acquired $ 1,916 The goodwill arising from the acquisition consists largely of the expected synergies from combining operations as well as the value of the workforce. This goodwill is not tax deductible. Acquisition and integration costs are not included as components of consideration transferred, but are recorded as expense in the period in which such costs are incurred. As of September 30, 2023, we have incurred $0.2 million of acquisition or integration costs for the SiteScape acquisition. Pro forma financial results for SiteScape have not been presented because the effects of these transactions, individually and in the aggregate, were not material to our condensed consolidated financial results. Following are the details of the purchase price allocated to the intangible assets acquired for the SiteScape acquisition: Amount Weighted Average Life (Years) Technology $ 807 3 Fair value of intangible assets acquired $ 807 3

Debt

Debt	9 Months Ended
	Sep. 30, 2023
Debt Disclosure [Abstract]
DEBT	DEBT On January 24, 2023, the Company issued $75 million aggregate principal amount of 5.50% Convertible Senior Notes due 2028 (the “Notes”). The Notes are general senior unsecured obligations of the Company and will mature on February 1, 2028, unless earlier redeemed, repurchased or converted. The Notes will bear interest from January 24, 2023, at a rate of 5.50% per annum payable semiannually in arrears on February 1 and August 1 of each year, beginning August 1, 2023. The annual effective interest rate of the Notes is 6.27% when including discounts and offering expenses incurred by the Company. The Notes will be convertible at the option of the holders of the Notes at any time prior to November 1, 2027 only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on March 31, 2023 (and only during such fiscal quarter), if the last reported sale price of the Company’s common stock, par value $0.001 per share (hereinafter referred to as “common stock”), for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on and including, the last trading day of the immediately preceding calendar quarter exceeds 130% of the conversion price on each applicable trading day; (2) during the five-business day period after any ten consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of the Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate for the Notes on each such trading day; (3) upon the occurrence of certain corporate events or distributions on the Company’s common stock; (4) if the Company calls such Notes for redemption; or (5) upon the occurrence of specified corporate events. On or after November 1, 2027, holders may convert all or any portion of their Notes at any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date regardless of the foregoing conditions. Upon conversion, the Company will satisfy its conversion obligation by paying or delivering, as the case may be, cash, shares of common stock or a combination of cash and shares of common stock, at the Company’s election. The conversion rate for the Notes will initially be 23.6072 shares of the common stock per $1,000 principal amount of the Notes, which is equivalent to an initial conversion price of approximately $42.36 per share of the common stock. The initial conversion price of the Notes represents a premium of approximately 20% to the $35.30 per share last reported sale price of the common stock on January 19, 2023. The conversion rate is subject to adjustment under certain circumstances in accordance with the terms of the Indenture. During the three months ended September 30, 2023, the conditions allowing holders of the 2025 Notes to convert have not been met. The Notes are therefore not convertible as of September 30, 2023 and are classified in long term liabilities in the condensed consolidated balance sheet. The Company may not redeem the Notes prior to February 5, 2026. The Company may redeem for cash all or any portion of the Notes, at its option, on or after February 5, 2026 and on or before the 50th scheduled trading day immediately before the maturity date, if the last reported sale price of the common stock exceeds 130% of the conversion price on (i) each of at least 20 trading days (whether or not consecutive) during the 30 consecutive trading days ending on and including the last trading day immediately before the date on which the Company provides notice of redemption and (ii) the trading day immediately before the date the Company provides such notice. The redemption price will be equal to 100% of the principal amount of the Notes to be redeemed, plus any accrued and unpaid interest to, but excluding, the redemption date. No sinking fund is provided for the Notes, which means that the Company is not required to redeem or retire the Notes periodically. Upon the occurrence of a fundamental change (as defined in the indenture governing the Notes) prior to the maturity date, subject to certain conditions, holders of the Notes may require the Company to repurchase all or a portion of the Notes for cash at a repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus any accrued and unpaid interest to, but excluding, the fundamental change repurchase date. The proceeds from the issuance of the Notes are presented under the long term liabilities of our condensed consolidated balance sheet. The net proceeds from the issuance of the Notes were approximately $72.3 million, after deducting underwriting discounts of $2.3 million and other offering expenses of $0.4 million. As of September 30, 2023, the outstanding principal balance of the Notes was $75 million. The Company is in compliance with all covenants under the indenture governing the Notes as of September 30, 2023. The net carrying amount of the Notes was as follows: As of September 30, 2023 Principal $ 75,000 Unamortized discount and issuance costs (2,396) Net carrying amount $ 72,604 The following table sets forth the interest expense recognized related to the Notes: Three Months Ended September 30, Nine Months Ended September 30, 2023 Contractual interest expense $ 1,161 $ 3,152 Amortization of discount and issuance costs 130 301 Total interest expense related to the Notes $ 1,291 $ 3,453

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ (8,756)	$ (28,245)	$ (21,164)	$ (6,261)	$ (8,574)	$ (9,687)	$ (58,165)	$ (24,521)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Principles of Consolidation (Po

Principles of Consolidation (Policies)	9 Months Ended
	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Consolidation	Our condensed consolidated financial statements include the accounts of FARO Technologies, Inc. and its subsidiaries, all of which are wholly-owned.
Foreign Currency Translation	All intercompany transactions and balances have been eliminated. The financial statements of our foreign subsidiaries are translated into U.S. dollars using exchange rates in effect at period-end for assets and liabilities and average exchange rates during each reporting period for results of operations. Adjustments resulting from financial statement translations are reflected as a separate component of accumulated other comprehensive loss. Foreign currency transaction gains and losses are included in net income (loss)
Basis of Presentation	The accompanying unaudited condensed consolidated financial statements and notes thereto have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions of Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These condensed consolidated financial statements include all normal recurring accruals and adjustments considered necessary by management for a fair presentation in conformity with U.S. GAAP.
Use of Estimates	Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates.
Impact of Recently Adopted Accounting Standards	Impact of Recently Adopted Accounting Standards In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Asset and Contract Liabilities from Contracts with Customers, which intends to simplify the accounting for acquired revenue contracts with customers in a business combination and to also remove inconsistencies in this topic related to recognition of an acquired contract liability and payment terms and their effect on subsequent revenue recognized by the acquirer. ASU No. 2021-08 allows an acquirer to recognize and measure contract assets and contract liabilities acquired in a business combination in a similar manner to how they are recorded on the acquiree’s financial statements at book value. Early adoption is permitted and we early adopted ASU No. 2021-08 in the fourth quarter of 2021. As a result of the early adoption of ASU No.2021-08, we recorded the deferred revenue associated with the acquisition of Holobuilder in 2021 at its book value of approximately $4.0 million. Further, we recorded the deferred revenue associated with the acquisition of GeoSLAM in 2022 at its book value of approximately $1.3 million. In August 2020, the FASB issued ASU No. 2020-06—Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity. The update simplifies the accounting for convertible instruments that were previous separated into a debt component and an equity component, and our convertible debt was already determined to be a single debt instrument that did not require bifurcation. The Company adopted ASU 2020-06 as of January 1, 2022, and therefore, the Notes (as defined below) would not be subject to any beneficial conversion or cash conversion guidance. Moreover, the Company did not elect the fair value option - as defined in ASC 825 and 815 - to present the Notes on its financial statements.
Inventories	Inventories are stated at the lower of cost or net realizable value using the first-in first-out (FIFO) method. We have three principal categories of inventory: 1) manufactured product to be sold; 2) sales demonstration inventory - completed product used to support our sales force for demonstrations and held for sale; and 3) service inventory - completed product and parts used to support our service department and held for sale. Shipping and handling costs are classified as a component of Cost of sales in our condensed consolidated statements of operations. Sales demonstration inventory is held by our sales representatives for up to three years, at which time it would be refurbished and transferred to finished goods as used equipment, stated at the lower of cost or net realizable value. We expect these refurbished units to remain in finished goods inventory and sold within 12 months at prices that produce reduced gross margins. Service inventory is used to provide a temporary replacement product to a customer covered by a premium warranty when the customer’s unit requires service or repair and as training equipment. Service inventory is available for sale; however, management does not expect service inventory to be sold within 12 months and, as such, classifies this inventory as a long-term asset. Service inventory that we utilize for training or repairs and which we deem as no longer available for sale is transferred to fixed assets at the lower of cost or net realizable value and depreciated over the remaining life, typically three years.

Basis of Presentation (Tables)

Basis of Presentation (Tables)	9 Months Ended
	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Share-Based Payment Arrangement, Expensed and Capitalized, Amount	Stock-based compensation expense is allocated to the applicable departmental cost in our condensed consolidated financial statements. The following table summarizes total stock-based compensation expense for each of the line items on our condensed consolidated statements of operations: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Cost of sales Product $ 229 $ 231 $ 833 $ 635 Service 51 42 139 121 Total cost of sales 280 273 972 756 Operating expenses Selling, general and administrative 3,588 2,742 9,710 7,475 Research and development (176) 651 1,594 1,793 Total operating expenses 3,412 3,393 11,304 9,268 Total stock-based compensation $ 3,692 $ 3,666 $ 12,276 $ 10,024

Revenues (Tables)

Revenues (Tables)	9 Months Ended
	Sep. 30, 2023
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregation of Revenue	The following tables present our revenues by sales type as presented in our condensed consolidated statements of operations disaggregated by the timing of transfer of goods or services: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Product sales Product transferred to customers at a point in time $ 60,882 $ 60,090 $ 183,511 $ 165,750 Product transferred to customers over time 6,029 5,491 16,243 16,265 Total product sales $ 66,911 $ 65,581 $ 199,754 $ 182,015 Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Service sales Service transferred to customers at a point in time $ 8,875 $ 8,651 $ 26,343 $ 25,973 Service transferred to customers over time 11,027 11,100 33,894 33,918 Total service sales $ 19,902 $ 19,751 $ 60,237 $ 59,891 The following table presents our revenues disaggregated by geography, based on the billing addresses of our customers: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Total sales to external customers Americas (1) $ 41,033 $ 38,732 $ 124,734 $ 110,077 EMEA (1) 25,621 22,802 74,641 66,494 APAC (1) 20,159 23,798 60,616 65,335 $ 86,813 $ 85,332 $ 259,991 $ 241,906 (1) Regions represent North America and South America (the “Americas”); Europe, the Middle East, and Africa (“EMEA”); and Asia-Pacific (“APAC”).

Accounts Receivable (Tables)

Accounts Receivable (Tables)	9 Months Ended
	Sep. 30, 2023
Receivables [Abstract]
Schedule of Accounts Receivable	Accounts receivable consist of the following: As of September 30, 2023 As of December 31, 2022 Accounts receivable $ 91,401 $ 92,611 Allowance for credit losses (3,038) (2,285) Total $ 88,363 $ 90,326
Schedule of Financing Receivable, Allowance for Credit Loss	Activity related to the allowance for credit losses was as follows: Nine Months Ended September 30, 2023 Beginning balance of the allowance for credit losses $ (2,285) Current period provision for expected credit losses, net of recoveries (834) Charge-offs of amounts previously expensed 81 Ending balance of the allowance for credit losses $ (3,038)

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2023
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventories consist of the following: As of September 30, 2023 As of December 31, 2022 Raw materials $ 21,679 $ 33,076 Finished goods 18,416 16,950 Inventories, net 40,095 50,026 Service and sales demonstration inventory, net $ 22,662 $ 30,904

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	9 Months Ended
	Sep. 30, 2023
Earnings Per Share [Abstract]
Schedule of Reconciliation of Number of Common Shares Used in Calculation of Basic and Diluted Earnings Per Share (EPS)	A reconciliation of the number of common shares used in the calculation of basic and diluted net loss per share is presented below: Three Months Ended September 30, 2023 2022 Shares Per-Share Shares Per-Share Basic net loss per share 18,953,251 $ (0.46) 18,436,615 $ (0.34) Effect of dilutive securities — — — — Diluted net loss per share 18,953,251 $ (0.46) 18,436,615 $ (0.34) Nine Months Ended September 30, 2023 2022 Shares Per-Share Shares Per-Share Basic net loss per share 18,899,954 $ (3.08) 18,336,537 $ (1.34) Effect of dilutive securities — — — — Diluted net loss per share 18,899,954 $ (3.08) 18,336,537 $ (1.34)

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	9 Months Ended
	Sep. 30, 2023
Payables and Accruals [Abstract]
Schedule of Accrued Liabilities	Accrued liabilities consist of the following: As of September 30, 2023 As of December 31, 2022 Accrued compensation and benefits $ 14,656 $ 12,483 Accrued restructuring costs 2,482 528 Accrued warranties 2,718 2,610 Professional and legal fees 3,263 1,662 Taxes other than income 127 3,737 Other accrued liabilities 1,748 2,325 Total accrued liabilities $ 24,994 $ 23,345
Schedule of Activity Related to Accrued Warranties	Activity related to accrued warranties was as follows: Nine Months Ended September 30, 2023 2022 Balance, beginning of period $ 2,610 $ 1,880 Provision for warranty expense 2,731 2,548 Fulfillment of warranty obligations (2,623) (2,236) Balance, end of period $ 2,718 $ 2,192

Fair value measurements and i_2

Fair value measurements and investments (Tables)	9 Months Ended
	Sep. 30, 2023
Fair Value Disclosures [Abstract]
Schedule of Liabilities Measured at Fair Value on a Recurring Basis	Liabilities measured at fair value on a recurring basis are categorized in the tables below based upon the lowest level of significant input to the valuations. As of December 31, 2022 Level 1 Level 2 Level 3 Liabilities Contingent consideration $ — $ — $ 1,043 Total $ — $ — $ 1,043

Restructuring (Tables)

Restructuring (Tables)	9 Months Ended
	Sep. 30, 2023
Restructuring and Related Activities [Abstract]
Restructuring and Related Costs	Activity related to the accrued restructuring charges for the Integration Plan and cash payments during the nine months ended September 30, 2023 is as follows: Severance and other benefits Professional fees and other related charges Total Balance at December 31, 2022 $ 318 $ 210 $ 528 Additions charged to expense 8,836 220 9,056 Cash payments (7,102) — (7,102) Balance at September 30, 2023 $ 2,052 $ 430 $ 2,482 Severance and other benefits Professional fees and other related charges Total Balance at December 31, 2021 $ 3,442 $ 477 $ 3,919 Additions charged to expense 1,439 1,072 2,511 Cash payments (4,619) (1,291) (5,910) Balance at September 30, 2022 $ 262 $ 258 $ 520

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2023
Leases [Abstract]
Schedule of Lease Cost and Supplemental Cash Flow Information Related to Leases	The components of lease expense were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Operating lease cost $ 1,598 $ 1,805 $ 5,169 $ 5,453 Finance lease cost: Amortization of ROU assets 21 18 70 96 Interest on lease liabilities 3 4 12 15 Total finance lease cost $ 24 $ 22 $ 82 $ 111 Supplemental cash flow information related to leases was as follows: Nine Months Ended September 30, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 5,535 $ 5,686 Operating cash flows from finance leases 12 15 Financing cash flows from finance leases 154 172 ROU assets obtained in exchange for lease obligations: Operating leases $ 721 $ 808
Schedule of Supplemental Balance Sheet Information Related to Leases	Supplemental balance sheet information related to leases was as follows: As of As of September 30, 2023 December 31, 2022 Operating leases: Operating lease right-of-use assets $ 12,521 $ 18,989 Current operating lease liabilities 5,258 5,535 Operating lease liabilities - less current portion 11,495 14,532 Total operating lease liabilities 16,753 20,067 Finance leases: Property and equipment, at cost 1,589 1,523 Accumulated amortization (1,442) (1,387) Property and equipment, net 147 136 Current finance lease liabilities 120 174 Finance lease liabilities - less current portion 95 117 Total finance lease liabilities $ 215 $ 291 Weighted Average Remaining Lease Term (in years): Operating leases 4.67 4.97 Finance leases 2.16 2.24 Weighted Average Discount Rate: Operating leases 5.68 % 5.67 % Finance leases 5.12 % 5.31 %
Schedule of Operating Lease, Liability, Maturity	Maturities of lease liabilities are as follows: Year Ending December 31, Operating leases Finance leases 2023 (excluding the first 9 months) $ 1,695 $ 48 2024 5,955 95 2025 3,718 47 2026 2,428 28 2027 1,598 9 Thereafter 3,801 — Total lease payments 19,195 227 Less imputed interest (2,442) (12) Total $ 16,753 $ 215
Schedule of Finance Lease, Liability, Maturity	Maturities of lease liabilities are as follows: Year Ending December 31, Operating leases Finance leases 2023 (excluding the first 9 months) $ 1,695 $ 48 2024 5,955 95 2025 3,718 47 2026 2,428 28 2027 1,598 9 Thereafter 3,801 — Total lease payments 19,195 227 Less imputed interest (2,442) (12) Total $ 16,753 $ 215

Business Combinations (Tables)

Business Combinations (Tables)	9 Months Ended
	Sep. 30, 2023
Business Combination and Asset Acquisition [Abstract]
Schedule of Fair Values of Assets Acquired and Liabilities Assumed for Acquisitions	Following is a summary of our allocations of the purchase price to the fair values of the assets acquired and liabilities assumed as of the date of the acquisition: Fair Value Tangible assets acquired: Accounts receivable $ 2,452 Inventory 6,576 Property, plant and equipment, net 270 Other assets 505 Total assets acquired 9,803 Liabilities assumed: Accounts payable and accrued liabilities (2,187) Deferred revenue (1,282) Other current liabilities (289) Total liabilities assumed (3,758) Intangible assets 18,610 Net assets acquired 24,655 Deferred income tax liability 4,472 Goodwill 24,763 Purchase price paid, net of cash acquired $ 44,946 Following is a summary of our allocations of the purchase price to the fair values of the assets acquired and liabilities assumed as of the date of the acquisition: Fair Value Intangible assets $ 807 Goodwill 1,109 Purchase price paid, net of cash acquired $ 1,916
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination	Following are the details of the purchase price allocated to the intangible assets acquired for the GeoSLAM acquisition: Amount Weighted Average Life (Years) Brand $ 466 3 Technology 3,828 5 Customer relationships 14,316 15 Fair value of intangible assets acquired $ 18,610 13 Following are the details of the purchase price allocated to the intangible assets acquired for the SiteScape acquisition: Amount Weighted Average Life (Years) Technology $ 807 3 Fair value of intangible assets acquired $ 807 3

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2023
Debt Disclosure [Abstract]
Schedule of Net Carrying Amount	The net carrying amount of the Notes was as follows: As of September 30, 2023 Principal $ 75,000 Unamortized discount and issuance costs (2,396) Net carrying amount $ 72,604
Schedule of Interest Expense	The following table sets forth the interest expense recognized related to the Notes: Three Months Ended September 30, Nine Months Ended September 30, 2023 Contractual interest expense $ 1,161 $ 3,152 Amortization of discount and issuance costs 130 301 Total interest expense related to the Notes $ 1,291 $ 3,453

Basis of Presentation (Details)

Basis of Presentation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 3,692	$ 3,666	$ 12,276	$ 10,024
Total cost of sales
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	280	273	972	756
Total operating expenses
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	3,412	3,393	11,304	9,268
Selling, general and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	3,588	2,742	9,710	7,475
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	(176)	651	1,594	1,793
Product
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	229	231	833	635
Service
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 51	$ 42	$ 139	$ 121

Impact of Recently Issued Acc_2

Impact of Recently Issued Accounting Pronouncements (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2021
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue recognized	$ 19	$ 8.7	$ 27.5	$ 29.1
Accounting Standards Update 2021-08 | Holobuilder
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue recognized					$ 4
Accounting Standards Update 2021-08 | GeoSLAM
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue recognized					$ 1.3

Revenues - Disaggregation of Re

Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Disaggregation of Revenue [Line Items]
Sales	$ 86,813	$ 85,332	$ 259,991	$ 241,906
Americas
Disaggregation of Revenue [Line Items]
Sales	41,033	38,732	124,734	110,077
EMEA
Disaggregation of Revenue [Line Items]
Sales	25,621	22,802	74,641	66,494
APAC
Disaggregation of Revenue [Line Items]
Sales	20,159	23,798	60,616	65,335
Product sales
Disaggregation of Revenue [Line Items]
Sales	66,911	65,581	199,754	182,015
Product sales | Product transferred to customers at a point in time
Disaggregation of Revenue [Line Items]
Sales	60,882	60,090	183,511	165,750
Product sales | Product transferred to customers over time
Disaggregation of Revenue [Line Items]
Sales	6,029	5,491	16,243	16,265
Service sales
Disaggregation of Revenue [Line Items]
Sales	19,902	19,751	60,237	59,891
Service sales | Product transferred to customers at a point in time
Disaggregation of Revenue [Line Items]
Sales	8,875	8,651	26,343	25,973
Service sales | Product transferred to customers over time
Disaggregation of Revenue [Line Items]
Sales	$ 11,027	$ 11,100	$ 33,894	$ 33,918

Revenues - Additional Informati

Revenues - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Disaggregation of Revenue [Line Items]
Capitalized contract cost, net	$ 2.9		$ 2.9		$ 3
Recognized service revenue	19	$ 8.7	27.5	$ 29.1
Refund liability	0.1		0.1		0.3
Prepaid expenses and other current assets
Disaggregation of Revenue [Line Items]
Capitalized contract cost, net	1.9		1.9		2
Other long-term assets
Disaggregation of Revenue [Line Items]
Capitalized contract cost, net	$ 1		$ 1		$ 1
Minimum
Disaggregation of Revenue [Line Items]
Extended product warranty term (in years)			1 month
Maximum
Disaggregation of Revenue [Line Items]
Extended product warranty term (in years)			3 years

Accounts Receivable - Schedule

Accounts Receivable - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Receivables [Abstract]
Accounts receivable	$ 91,401	$ 92,611
Allowance for credit losses	(3,038)	(2,285)
Total	$ 88,363	$ 90,326

Accounts Receivable - Allowance

Accounts Receivable - Allowance For Credit Loss (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance of the allowance for credit losses	$ (2,285)
Current period provision for expected credit losses, net of recoveries	(834)	$ (80)
Charge-offs of amounts previously expensed	81
Ending balance of the allowance for credit losses	$ (3,038)

Inventories - Additional Inform

Inventories - Additional Information (Details)	9 Months Ended
	Sep. 30, 2023 category
Property, Plant and Equipment [Line Items]
Inventory categories	3
Refurbished demonstration inventory selling period (in months)	12 months
Sales Inventory
Property, Plant and Equipment [Line Items]
Demonstration inventory shelf life (in years)	3 years
Service Inventory
Property, Plant and Equipment [Line Items]
Service inventory selling period (in months)	12 months
Inventory, remaining useful life (in years)	3 years

Inventories - Schedule of Inven

Inventories - Schedule of Inventory (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Raw materials	$ 21,679	$ 33,076
Finished goods	18,416	16,950
Inventories, net	40,095	50,026
Service and sales demonstration inventory, net	$ 22,662	$ 30,904

Goodwill (Details)

Goodwill (Details)	3 Months Ended			9 Months Ended
	Sep. 30, 2023 USD ($)	Jun. 30, 2023 reporting_unit	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Number of reporting unit | reporting_unit		1
Fair value of reporting unit exceeded net book value (as a percent)		45%
Goodwill impairment charge	$ 0		$ 0	$ 0	$ 0
Goodwill impairment assessment	0
Goodwill	$ 106,873,000			$ 106,873,000		$ 107,155,000

Net Loss Per Share - Additional

Net Loss Per Share - Additional Information (Details) - USD ($) $ in Thousands		3 Months Ended	9 Months Ended
	Jan. 24, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Debt Instrument [Line Items]
Antidilutive securities (in shares)		578,121	1,439,944	578,121
Aggregate principal amount			$ 75,000
5.50% Convertible senior notes due 2028 | Convertible Debt
Debt Instrument [Line Items]
Aggregate principal amount	$ 75,000		$ 75,000
Incremental common shares (in shares)	2,124,645,000

Net Loss Per Share - Reconcilia

Net Loss Per Share - Reconciliation of Number of Common Shares Used in Calculation of Basic and Diluted Earnings Per Share (EPS) (Details) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Earnings Per Share [Abstract]
Basic net loss per share (in shares)	18,953,251	18,436,615	18,899,954	18,336,537
Effect of dilutive securities (in shares)	0	0	0	0
Diluted net loss per share (in shares)	18,953,251	18,436,615	18,899,954	18,336,537
Basic net loss per share (in dollars per share)	$ (0.46)	$ (0.34)	$ (3.08)	$ (1.34)
Effect of dilutive securities (in dollars per share)	0	0	0	0
Diluted net loss per share (in dollars per share)	$ (0.46)	$ (0.34)	$ (3.08)	$ (1.34)

Accrued Liabilities - Schedule

Accrued Liabilities - Schedule of Accrued liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Accrued compensation and benefits	$ 14,656	$ 12,483
Accrued restructuring costs	2,482	528
Accrued warranties	2,718	2,610	$ 2,192	$ 1,880
Professional and legal fees	3,263	1,662
Taxes other than income	127	3,737
Other accrued liabilities	1,748	2,325
Total accrued liabilities	$ 24,994	$ 23,345

Accrued Liabilities - Activity

Accrued Liabilities - Activity Related to Accrued Warranties (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]
Balance, beginning of period	$ 2,610	$ 1,880
Provision for warranty expense	2,731	2,548
Fulfillment of warranty obligations	(2,623)	(2,236)
Balance, end of period	$ 2,718	$ 2,192

Fair value measurements and i_3

Fair value measurements and investments - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Measurements, Recurring $ in Thousands	Dec. 31, 2022 USD ($)
Level 1
Liabilities
Contingent consideration	$ 0
Total	0
Level 2
Liabilities
Contingent consideration	0
Total	0
Level 3
Liabilities
Contingent consideration	1,043
Total	$ 1,043

Fair value measurements and i_4

Fair value measurements and investments - Additional Information (Details) - Monte Carlo Simulation Valuation Model - USD ($)	Sep. 30, 2023	Aug. 30, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Undiscounted maximum payment under the contingent consideration arrangements		$ 1,000,000
Leaving balance	$ 0

Restructuring - Additional Info

Restructuring - Additional Information (Details) ft² in Thousands	1 Months Ended	3 Months Ended		9 Months Ended		43 Months Ended
	Sep. 30, 2023 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)	Jul. 15, 2021 ft²
Restructuring Cost and Reserve [Line Items]
Restructuring costs		$ 2,442,000	$ 580,000	$ 15,130,000	$ 2,512,000
Accrued restructuring costs	$ 2,482,000	2,482,000		2,482,000		$ 2,482,000	$ 528,000
Restructuring Plan | Employee Severance
Restructuring Cost and Reserve [Line Items]
Restructuring costs						24,800,000
Restructuring Plan | Exton, Pennsylvania Manufacturing Site
Restructuring Cost and Reserve [Line Items]
Area of land (in sq ft) | ft²								17
Integration Plan
Restructuring Cost and Reserve [Line Items]
Restructuring costs		1,600,000	17,000	9,056,000	2,511,000
Accrued restructuring costs	500,000	500,000		500,000		500,000
Total restructuring charges	24,200,000	24,200,000		24,200,000		24,200,000
Cash payments				7,102,000	$ 5,910,000
Impairment charges on right-of-use asset		300,000		4,000,000
Impairment of leasehold improvement		300,000		4,000,000
Integration Plan | Purchase Commitment
Restructuring Cost and Reserve [Line Items]
Inventory impairment charge	8,100,000
Integration Plan | Minimum
Restructuring Cost and Reserve [Line Items]
Expected cost	22,000,000	22,000,000		22,000,000		22,000,000
Targeted annualized savings	20,000,000	20,000,000		20,000,000		20,000,000
Integration Plan | Maximum
Restructuring Cost and Reserve [Line Items]
Expected cost	28,000,000	28,000,000		28,000,000		28,000,000
Targeted annualized savings	$ 30,000,000	30,000,000		$ 30,000,000		$ 30,000,000
Integration Plan | Employee Severance
Restructuring Cost and Reserve [Line Items]
Restructuring costs		$ 3,100,000	$ 2,600,000

Restructuring - Activity Relate

Restructuring - Activity Related to Restructuring and Related Costs (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Restructuring Reserve [Roll Forward]
Additions charged to expense	$ 2,442,000	$ 580,000	$ 15,130,000	$ 2,512,000
Integration Plan
Restructuring Reserve [Roll Forward]
Beginning balance			528,000	3,919,000
Additions charged to expense	1,600,000	17,000	9,056,000	2,511,000
Cash payments			(7,102,000)	(5,910,000)
Ending balance	2,482,000	520,000	2,482,000	520,000
Severance and other benefits | Integration Plan
Restructuring Reserve [Roll Forward]
Beginning balance			318,000	3,442,000
Additions charged to expense			8,836,000	1,439,000
Cash payments			(7,102,000)	(4,619,000)
Ending balance	2,052,000	262,000	2,052,000	262,000
Professional fees and other related charges | Integration Plan
Restructuring Reserve [Roll Forward]
Beginning balance			210,000	477,000
Additions charged to expense			220,000	1,072,000
Cash payments			0	(1,291,000)
Ending balance	$ 430,000	$ 258,000	$ 430,000	$ 258,000

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	9 Months Ended
	Sep. 30, 2023 USD ($)
Commitments and Contingencies [Line Items]
Purchase commitment, due in next twelve months	$ 26.4
Minimum
Commitments and Contingencies [Line Items]
Length of purchase commitments (in days)	60 days
Maximum
Commitments and Contingencies [Line Items]
Length of purchase commitments (in days)	120 days

Leases - Additional Information

Leases - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Lessee, Lease, Description [Line Items]
Renewal term (in years)			15 years
Termination window (in months)			3 months
Short term lease cost (less than)	$ 0.1	$ 0.1	$ 0.1	$ 0.1
Minimum
Lessee, Lease, Description [Line Items]
Term of contract (in years)			1 year
Maximum
Lessee, Lease, Description [Line Items]
Term of contract (in years)			10 years

Leases - Lease Cost (Details)

Leases - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Leases [Abstract]
Operating lease cost	$ 1,598	$ 1,805	$ 5,169	$ 5,453
Finance lease cost:
Amortization of ROU assets	21	18	70	96
Interest on lease liabilities	3	4	12	15
Total finance lease cost	$ 24	$ 22	$ 82	$ 111

Leases - Supplemental Balance S

Leases - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Operating leases:
Operating lease right-of-use assets	$ 12,521	$ 18,989
Current operating lease liabilities	5,258	5,535
Operating lease liabilities - less current portion	11,495	14,532
Total operating lease liabilities	16,753	20,067
Finance leases:
Property and equipment, at cost	1,589	1,523
Accumulated amortization	(1,442)	(1,387)
Property and equipment, net	147	136
Current finance lease liabilities	120	174
Finance lease liabilities - less current portion	95	117
Total finance lease liabilities	$ 215	$ 291
Weighted Average Remaining Lease Term (in years):
Operating leases	4 years 8 months 1 day	4 years 11 months 19 days
Finance leases	2 years 1 month 28 days	2 years 2 months 26 days
Weighted Average Discount Rate:
Operating leases	5.68%	5.67%
Finance leases	5.12%	5.31%
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Lease liabilities	Lease liabilities
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Lease liabilities - less current portion	Lease liabilities - less current portion
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Liabilities	Liabilities
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Property, plant and equipment, net	Property, plant and equipment, net
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Lease liabilities	Lease liabilities
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Lease liabilities - less current portion	Lease liabilities - less current portion
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Liabilities	Liabilities

Leases - Supplemental Cash Flow

Leases - Supplemental Cash Flows (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 5,535	$ 5,686
Operating cash flows from finance leases	12	15
Financing cash flows from finance leases	154	172
ROU assets obtained in exchange for lease obligations:
Operating leases	$ 721	$ 808

Leases - Maturities of lease li

Leases - Maturities of lease liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Operating leases
2023 (excluding the first 9 months)	$ 1,695
2024	5,955
2025	3,718
2026	2,428
2027	1,598
Thereafter	3,801
Total lease payments	19,195
Less imputed interest	(2,442)
Total	16,753	$ 20,067
Finance leases
2023 (excluding the first 9 months)	48
2024	95
2025	47
2026	28
2027	9
Thereafter	0
Total lease payments	227
Less imputed interest	(12)
Total	$ 215	$ 291

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Income tax expense	$ 1,520	$ 586	$ 4,869	$ 4,352
Effective tax rate expense (benefit) (as a percent)	(21.00%)	(10.30%)

Business Combinations - Narrati

Business Combinations - Narrative (Details) - USD ($) $ in Thousands	Sep. 01, 2022	Sep. 30, 2023	Dec. 01, 2022
Business Acquisition [Line Items]
Gross contractual amount from accounts receivable acquired		$ 2,600
GeoSLAM
Business Acquisition [Line Items]
Purchase price	$ 29,000
Number of shares issued in non-cash payment transaction (in shares)	495,562
Value of stock	$ 15,900
Purchase price paid, net of cash acquired	$ 44,946
Integration costs		2,100
Accounts receivable net		2,500
SiteScape
Business Acquisition [Line Items]
Purchase price paid, net of cash acquired			$ 1,916
Integration costs		$ 200

Business Combinations - Assets

Business Combinations - Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022	Dec. 01, 2022	Sep. 01, 2022
Liabilities assumed:
Goodwill	$ 106,873	$ 107,155
GeoSLAM
Tangible assets acquired:
Accounts receivable				$ 2,452
Inventory				6,576
Property, plant and equipment, net				270
Other assets				505
Total assets acquired				9,803
Liabilities assumed:
Accounts payable and accrued liabilities				(2,187)
Deferred revenue				(1,282)
Other current liabilities				(289)
Total liabilities assumed				(3,758)
Intangible assets				18,610
Net assets acquired				24,655
Deferred income tax liability				4,472
Goodwill				24,763
Purchase price paid, net of cash acquired				$ 44,946
SiteScape
Liabilities assumed:
Intangible assets			$ 807
Goodwill			1,109
Purchase price paid, net of cash acquired			$ 1,916

Business Combinations - Acquire

Business Combinations - Acquired Intangible (Details) - USD ($) $ in Thousands	Dec. 01, 2022	Sep. 01, 2022
GeoSLAM
Acquired Finite-Lived Intangible Assets [Line Items]
Amount		$ 18,610
Weighted Average Life (Years)		13 years
GeoSLAM | Brand
Acquired Finite-Lived Intangible Assets [Line Items]
Amount		$ 466
Weighted Average Life (Years)		3 years
GeoSLAM | Technology
Acquired Finite-Lived Intangible Assets [Line Items]
Amount		$ 3,828
Weighted Average Life (Years)		5 years
GeoSLAM | Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Amount		$ 14,316
Weighted Average Life (Years)		15 years
SiteScape
Acquired Finite-Lived Intangible Assets [Line Items]
Amount	$ 807
Weighted Average Life (Years)	3 years
SiteScape | Technology
Acquired Finite-Lived Intangible Assets [Line Items]
Amount	$ 807
Weighted Average Life (Years)	3 years

Debt - Narrative (Details)

Debt - Narrative (Details) $ / shares in Units, $ in Thousands	Jan. 24, 2023 USD ($) d $ / shares	Sep. 30, 2023 USD ($) $ / shares	Dec. 31, 2022 $ / shares
Debt Instrument [Line Items]
Aggregate principal amount | $		$ 75,000
Common stock, par value (in dollars per share) | $ / shares		$ 0.001	$ 0.001
5.50% Convertible senior notes due 2028 | Convertible Debt
Debt Instrument [Line Items]
Aggregate principal amount | $	$ 75,000	$ 75,000
Stated interest rate (as a percent)	5.50%	5.50%
Effective interest rate (as a percent)	6.27%
Debt instrument, convertible, threshold trading days (in days)	20
Debt instrument, convertible, threshold consecutive trading days (in days)	30
Debt instrument, convertible, threshold percentage of stock price trigger (as a percent)	130%
Convertible conversion ratio	0.0236072
Initial conversion price premium (as a percent)	20%
Debt instrument redemption price (as a percent)	100%
Net proceeds from issuance of notes | $	$ 72,300
Underwriting discount | $	2,300
Other offering expenses | $	$ 400
5.50% Convertible senior notes due 2028 | Convertible Debt | Maximum
Debt Instrument [Line Items]
Initial conversion price (in dollars per share) | $ / shares	$ 42.36
5.50% Convertible senior notes due 2028 | Convertible Debt | Minimum
Debt Instrument [Line Items]
Share price (in dollars per share) | $ / shares	35.30
5.50% Convertible senior notes due 2028 | Convertible Debt | Debt Conversion Terms One
Debt Instrument [Line Items]
Common stock, par value (in dollars per share) | $ / shares	$ 0.001
Debt instrument, convertible, threshold trading days (in days)	20
Debt instrument, convertible, threshold consecutive trading days (in days)	30
Debt instrument, convertible, threshold percentage of stock price trigger (as a percent)	130%
5.50% Convertible senior notes due 2028 | Convertible Debt | Debt Conversion Terms Two
Debt Instrument [Line Items]
Debt instrument, convertible, threshold trading days (in days)	5
Debt instrument, convertible, threshold consecutive trading days (in days)	10
Debt instrument, convertible, threshold percentage of stock price trigger (as a percent)	98%

Debt - Schedule of Net Carrying

Debt - Schedule of Net Carrying Amount (Details) $ in Thousands	Sep. 30, 2023 USD ($)
Debt Disclosure [Abstract]
Principal	$ 75,000
Unamortized discount and issuance costs	(2,396)
Net carrying amount	$ 72,604

Debt - Schedule of Interest Exp

Debt - Schedule of Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2023
Debt Disclosure [Abstract]
Contractual interest expense	$ 1,161	$ 3,152
Amortization of discount and issuance costs	130	301
Total interest expense related to the Notes	$ 1,291	$ 3,453