3d Systems Corporation · NYSE:DDD
3d Systems — Q1 2019 Earnings Presentation
26 slides from 3d Systems's earnings presentation, May 7, 2019
Slide 1: First Quarter 2019 Financial Results
First Quarter 2019 Financial Results May 7, 2019
Slide 2: Welcome and Participants
Welcome and Participants • Vyomesh Joshi President and Chief Executive Officer ⦁ John McMullen Executive Vice President and Chief Financial Officer • Andy Johnson Executive Vice President, Chief Legal Officer and Secretary ⦁ Stacey Witten Vice President, Finance, Investor Relations and Financial Pla
Slide 3: Forward Looking Statements
Forward Looking Statements This presentation contains certain statements that are not statements of historical or current facts are forward - looking stateme nts within the meaning of the Private Securities Litigation Reform Act of 1995. Forward - looking statements include statements concerning pla
Slide 4: Vyomesh Joshi (VJ) President & Chief Executive Officer
Vyomesh Joshi (VJ) President & Chief Executive Officer
Slide 5: First Quarter Summary
First Quarter Summary 5 • GAAP revenue in the first quarter of $152.0 million decreased 8% year over year. Excluding a large enterprise customer’s orders from both periods, total revenue decreased 5% • Revenue in the first quarter was negatively impacted by approximately $8 million as a result of th
Slide 6: John McMullen Executive Vice President & Chief Financial Officer
John McMullen Executive Vice President & Chief Financial Officer
Slide 7: GAAP Operating Results First Quarter
GAAP Operating Results 7 First Quarter (in millions, except per share amounts) 2019 2018 Y/Y Better/(Worse) Revenue $ 152.0 $ 165.9 (8)% Gross Profit 65.7 77.9 (16)% Gross Profit Margin 43.2 % 46.9 % (370) bps SG&A 65.1 69.5 6% R&D 21.9 25.9 15% Operating Expenses 87.0 95.3 9% % of Revenue 57.2 % 57
Slide 8: Non-GAAP Financial Measures
Non - GAAP Financial Measures 8 We use non - GAAP measures to supplement our financial statements presented on a GAAP basis because management believes non - GAAP financial measures are useful to investors in evaluating our operating performance and to facilitate a better understanding of the impact
Slide 9: Revenue Drivers
Revenue Drivers 9 5% 29% 3% 12% 8% 90%
Slide 10: Gross Profit and Margin
Gross Profit and Margin • GAAP GPM was 43.2% and non - GAAP GPM was 44.2% in Q1 2019 • Lower gross profit margin in Q1 2019 was driven by under absorption of supply chain overhead related to lower revenue and production during the quarter , as well as the impact of mix of sales • We continue to driv
Slide 11: Operating Expenses
Operating Expenses 11 • GAAP operating expenses decreased 9% and non - GAAP operating expenses decreased 8% compared to the first quarter of the prior year • We plan to accelerate cost reductions this year and drive profitability • R&D is focused on materials and software development in 2019 Q1 2018
Slide 12: Balance Sheet and Cash
Balance Sheet and Cash 12 • We used $15.2 million of cash in operations and $9.0 million in CapEx in the first quarter • We ended the quarter with $157.3 million of cash on hand • We are investing in areas critical to long term growth while in parallel reducing costs in multiple areas and plan to dr
Slide 13: Vyomesh Joshi (VJ) President & Chief Executive Officer
Vyomesh Joshi (VJ) President & Chief Executive Officer
Slide 14: Summary
Summary 14 • We are focused on improving our cost structure and continuing to refine the organization and operations to drive profitable growth • We have taken actions to accelerate previously planned cost reductions and will be taking additional steps over the coming quarters to reduce total 2019 e
Slide 15: Outlook
Outlook 15 • We expect to ramp sales of new platforms and drive unit growth • We expect materials growth to improve in the second half of 2019, and plan to launch additional materials for plastics this year • Launched online portal for on demand services, which helps standardize and automate export
Slide 16: Q&A Session
Q&A Session In the USA: 1 - 877 - 407 - 8291 Outside the USA: 1 - 201 - 689 - 8345
Slide 17: Thank You
4d 3D SYSTEMS Thank You
Slide 18: Appendix
4d 3D SYSTEMS Appendix
Slide 19: GAAP Revenue Summary by Category
GAAP Revenue Summary by Category 19 (in millions) Q1 2019 Q4 2018 Q1 2018 Sequential Better/(Worse) Y/Y Better/(Worse) Printers $ 28.0 $ 40.7 $ 39.3 (31)% (29)% Software Products 10.0 15.2 11.7 (34)% (15)% Other Products 12.9 15.3 11.6 (16)% 11% Total Products 50.9 71.1 62.6 (28)% (19)% Total Materi
Slide 20: Non-GAAP Reconciliation - EPS
Non - GAAP Reconciliation - EPS 20 First Quarter Non - GAAP Earnings (Loss) per Share Quarter Ended March 31, (in millions, except per share amounts) 2019 2018 GAAP Net loss attributable to 3D Systems Corporation $ (24.4 ) $ (21.0 ) Adjustments: Amortization, stock - based compensation & other 1 12.
Slide 21: Non-GAAP Reconciliation - Revenue
Non - GAAP Reconciliation - Revenue 21 2019 Non - GAAP Revenue Quarter Ended March 31, (in millions) 2019 GAAP Revenue $ 152.0 Adjustments: Legal, acquisition and divestiture related (1.8 ) Non - GAAP Revenue $ 150.2 * Tables may not foot due to rounding; amounts calculated based on dollars in thous
Slide 22: Non-GAAP Reconciliation - GP and GPM
Non - GAAP Reconciliation - GP and GPM 22 2019 Non - GAAP Gross Profit & Margin Quarter Ended March 31, (in millions) 2019 GAAP Gross Profit $ 65.7 GAAP Gross Profit Margin 43.2 % Adjustments: Amortization, stock - based compensation & other 0.1 Legal, acquisition and divestiture related 0.1 Cost op
Slide 23: Non-GAAP Reconciliation - Operating Expense
Non - GAAP Reconciliation - Operating Expense 23 2019 Non - GAAP Operating Expenses Quarter Ended March 31, (in millions) 2019 GAAP R&D Expenses $ 21.9 GAAP SG&A Expenses 65.1 GAAP Operating Expenses 87.0 Non - GAAP R&D Expenses 21.9 Adjustments to SG&A Expenses: Amortization, stock - based compensa
Slide 24: Non-GAAP Reconciliation - GP and GPM Full Year 2018
Non - GAAP Reconciliation - GP and GPM 24 Full Year 2018 Non - GAAP Gross Profit & Margin 2018 Quarter Ended Year Ended (in millions) March 31 June 30 September 30 December 31 December 31 GAAP Gross Profit $ 77.9 $ 86.2 $ 77.8 $ 82.6 $ 324.4 GAAP Gross Profit Margin 46.9 % 48.8 % 47.3 % 45.7 % 47.2
Slide 25: Non-GAAP Reconciliation - Operating Expense Full Year 2018
Non - GAAP Reconciliation - Operating Expense 25 Full Year 2018 Non - GAAP Operating Expenses 2018 Quarter Ended Year Ended (in millions) March 31 June 30 September 30 December 31 December 31 GAAP R&D Expenses $ 25.9 $ 22.7 $ 23.2 $ 23.5 $ 95.3 GAAP SG&A Expenses 69.5 71.2 65.6 66.1 272.3 GAAP Opera
Slide 26: Thank You
4d 3D SYSTEMS Thank You