Slide 1: First Quarter 2023 Financial Results
May 9, 2023 First Quarter 2023 Financial Results
Slide 2: Welcome and Participants
Welcome and Participants Dr. Jeffrey Graves President & Chief Executive Officer Michael Turner Executive Vice President & Chief Financial Officer Andrew Johnson Executive Vice President, Chief Corporate Development Officer & Chief Legal Officer To participate via phone, Mick McCloskey please dial: V
Slide 3: Forward Looking Statements
Forward Looking Statements Certain statements made in this presentation that are not statements of historical or current facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncert
Slide 4: Dr. Jeffrey Graves
Dr. Jeffrey Graves President & Chief Executive Officer 4
Slide 5: End-to-End Solutions for Major Markets
End-to-End Solutions for Major Markets Healthcare Industrial Patient-matched acetabular tri-flange, for Collaboration with TE Connectivity to jointly complex tumor resection and reconstruction develop an AM solution for electrical connectors 5
Slide 6: Cranial Surgery Success Story
Cranial Surgery Success Story University Hospital Salzburg 1st clinical implantation of PEEK cranial Salzburg, Austria - April 2023 device printed on a Kumovis printer 6
Slide 7: Oqton Software for Dental Applications
Oqton Software for Dental Applications Advanced AI-enabled Manufacturing OS accelerates automation of digital production workflows in dental labs using additive manufacturing to improve efficiencies and reduce cost • Several hundred dental labs now using the Oqton platform to manage their operations
Slide 8: Progress in Regenerative Medicine
Progress in Regenerative Medicine h-VIOS16 Algorithm-generated vasculature design Microscope image of bioprinted scaffold Microscope image of perfused scaffold 2000 µm scale bar Cells on proprietary h-VIOS biomaterial Vasculature perfused with show desired morphology and green fluorescent beads dist
Slide 9: Expanding Our Portfolio Organically and Inorganically
Expanding Our Portfolio Organically and Inorganically Wematter SLS SLA 750 Dual April 2023 – 3D Systems agrees to acquire Wematter • On track for Summer release • Gravity Essential, Essential+ and Enterprise line of • 2x speed and 3x throughput improvements SLS printers • Industry leader in print si
Slide 10: Driving Profitability in 2023 and Beyond
Driving Profitability in 2023 and Beyond Expanded restructuring effort Managing cost structure to align with uncertain macroeconomic environment Previous investments in productivity enabling us to harvest more cost efficiencies Increasing FY 2023 Non-GAAP adjusted EBITDA guidance to reflect
Slide 11: Michael Turner
Michael Turner Chief Financial Officer 11
Slide 12: Seasonality and FY'23 Revenue Expectations
Seasonality and FY’23 Revenue Expectations • FY’22 did not follow historical Historic (2021) Revenue by seasonality patterns Quarter* • Q1’23 in-line with normal seasonality Q1’21 Q2’21 Q3’21 Q4’21 • Reiterating FY’23 guidance for 22% 25% 25% 28% revenue between $545 million - $575 million Expect qu
Slide 13: First Quarter Revenue Summary
First Quarter Revenue Summary ($ in millions except percentages) +9% -46% +22% 1Q’23 revenue ex. dental markets grew over 12% from prior year on a constant currency basis Expect mid-teens revenue growth for FY’23 ex. dental markets on a constant currency basis 13 See Appendix for Reconciliation of R
Slide 14: Gross Profit Margin
Gross Profit Margin (Non-GAAP) 50% Non-GAAP GPM Q1 2023 vs. Q1 2022 45% • Input cost inflation 41% 41% 40% • Unfavorable product mix 40% 39% 38% Q1 2023 vs. Q4 2022 35% • Normal seasonal sales trends impact fixed cost leverage 30% Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Reiterate expectation for FY’
Slide 15: Earnings (non-GAAP)
Earnings (non-GAAP) • Adjusted EBITDA decreased to negative $10 million dollars in Q1 2023 compared to Q1 2022 • Net loss of $(29.4) million dollars • Diluted loss per share of $(0.23), and diluted non-GAAP loss per share of $(0.09) • Above results due to: • Lower sales volumes in dental orthodontic
Slide 16: Strong Balance Sheet
Strong Balance Sheet • Ended the quarter with $530 million dollars of cash and short-term investments on hand • Sufficient cash to support organic growth, including in regenerative medicine • Continued focus on operational execution and integration of recent acquisitions Committed to achieving break
Slide 17: Revising FY 2023 Outlook
Revising FY 2023 Outlook Metric Commentary Guidance Revenue Reiterate $545 million - $575 million Non-GAAP Gross Margin % Reiterate 40% - 42% Non-GAAP Adjusted EBITDA INCREASE $2 million or better Free Cash Flow Reiterate Break even or better 17
Slide 18: Q&A Session
Q&A Session 1-201-689-8345 18
Slide 19: Dr. Jeffrey Graves
Dr. Jeffrey Graves President & Chief Executive Officer 19
Slide 20: Thank You
Thank You Find out more at: www.3dsystems.com 20
Slide 21: Appendix
Appendix ©2022 3D Systems, Inc. | All Rights Reserved.
Slide 22: Presentation of Information
Presentation of Information 3D Systems reports its financial results in accordance with GAAP. Management also reviews and reports certain non-GAAP measures, including: non-GAAP revenue excluding divestitures and on a constant currency basis (sometimes referred to as excluding divestitures and FX eff
Slide 23: Balance Sheets
3D Systems Corporation Unaudited Consolidated Balance Sheets March 31, 2023 and December 31, 2022 Balance Sheets sent epi sg em ASSETS Current assets Cash and cash equivalents s Accounts receivable, net of reserves — $2,922 and $3,114 Inven Prepaid expenses and other current assets Property and equi
Slide 24: Statement of Operations
3D Systems Corporation Unaudited Consolidated Statement: of Operations Three Months Ended March 31, 2023, 2022 Statement of (@) per. ations (thousands, excep pe share amounts Revenue: Three Months Ended March 31, Products S$ 84388 $ Services 6.848 Total revenue 121,236 Products 49.880 Services 24. T
Slide 25: Statement of Cash Flows
3D Systems Corporation Unaudited Consolidated Statements of Cash Flows Three Month: Ended March 31, 2023, 2022 Statement of _. Cash Flows Ca acta Adjusments to reconcile nt (oss) income to net cash (used in) provided by operating acivities Depreciation, amortization and accretion of debt discount St
Slide 26: Reconciliation of Revenue to Non-GAAP Revenue
Reconciliation of Revenue to Non-GAAP Revenue (in thousands except percentages, unaudited) 26
Slide 27: Gross Profit and Gross Profit Margin Reconciliation
Gross Profit and Gross Profit Margin Reconciliation (in thousands except percentages, unaudited) 27
Slide 28: Adjust EBITDA reconciliation
Adjust EBITDA reconciliation (in thousands except percentages, unaudited) 28
Slide 29: Earnings per Share Reconciliation
Earnings per Share Reconciliation (in dollars, unaudited) 29