3d Systems Corporation · NYSE:DDD
3d Systems — Q2 2018 Earnings Presentation
28 slides from 3d Systems's earnings presentation, Aug 7, 2018
Slide 1: Second Quarter 2018
Second Quarter 2018 August 7, 2018
Slide 2: Welcome and Participants
Welcome and Participants ⦁ Vyomesh Joshi ⦁ President & Chief Executive Officer ⦁ John McMullen ⦁ Executive Vice President & Chief Financial Officer ⦁ Patrick Rogers ⦁ Assistant General Counsel ⦁ Stacey Witten ⦁ Vice President, IR and FP&A To participate via phone, please dial: In the US: 1 - 877 - 4
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: Execution and Progress
Execution and Progress 5 • We believe we are turning the corner in the transformation of the company and are seeing early returns on our investments • We have made significant progress to drive growth and improve execution worldwide • We improved Net Promoter Score (NPS) another 10 points, increased
Slide 6: New Product Update
New Product Update 6 • In Q2, we began shipping the FabPro 1000, industrial desktop printer and the ProX SLS 6100 with the widest range of materials • In Q2, we also began shipping the MJP 2500 IC, designed for investment casting and foundry applications, within the U.S. with plans for global roll o
Slide 7: Second Quarter Results Overview
Second Quarter Results Overview 7 • Revenue increased 11% to $176.6 million • Strong growth printer revenue growth of 41% on 37% unit growth • Growth in printers revenue and units, materials, on demand manufacturing and healthcare solutions • GAAP gross profit margin of 48.8% and non - GAAP gross pr
Slide 8: John McMullen Executive Vice President & Chief Financial Officer
John McMullen Executive Vice President & Chief Financial Officer
Slide 9: GAAP Operating Results
GAAP Operating Results 9 Second Quarter Six Months Ended (in millions, except per share amounts) 2018 2017 Y/Y Change 2018 2017 Y/Y Change Revenue $ 176.6 $ 159.5 11% $ 342.4 $ 315.9 8% Gross Profit 86.2 80.7 7% $ 164.0 $ 160.9 2% Gross Profit Margin 48.8 % 50.6 % (179) bps 47.9 % 50.9 % (302) bps S
Slide 10: Non-GAAP Financial Measures
Non - GAAP Financial Measures 10 • 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 understand ing of the im
Slide 11: Revenue Drivers
Revenue Drivers Printers revenue increased 41% to $39.2 million Materials revenue increased 3% to $45.0 million Healthcare solutions increased 26% to $61.4 million On demand manufacturing increased 6% to $27.4 million Software was approximately flat at $24.1 million Q2 2018 compared to Q2 2017: 11
Slide 12: Gross Profit and Margin
Gross Profit and Margin • GAAP GPM was 48.8% and non - GAAP GPM was 48.9% in Q2 2018 • We continue to drive supply chain optimization, manufacturing efficiencies and process improvements 12
Slide 13: Operating Expenses
Operating Expenses 13 • GAAP operating expenses increased 7% and non - GAAP operating expenses increased 12% compared to the first quarter of the prior year • SG&A expenses increased from investments in go - to - market and IT infrastructure and higher legal expenses • R&D expenses decreased as we b
Slide 14: Vyomesh Joshi (VJ) President & Chief Executive Officer
Vyomesh Joshi (VJ) President & Chief Executive Officer
Slide 15: Redefining Manufacturing
Redefining Manufacturing 15 • Partnership with Georg Fischer machining solutions, one of the world's leading providers in precision machining. • Immediately expands our global network and market opportunity • We are excited to be working with a partner of the caliber of GF Machining Solutions to red
Slide 16: Conclusion
Conclusion 16 • We are pleased with our results this quarter and the progress we have made to transform the company and improve execution to leverage our unmatched offering of additive solutions for the entire digital manufacturing workflow. • We are very excited about our enhanced and complete end
Slide 17: Q&A Session
Q&A Session In the USA: 1 - 877 - 407 - 8291 Outside the USA: 1 - 201 - 689 - 8345
Slide 18: Thank You
4d 3D SYSTEMS Thank You
Slide 19: Appendix
4d 3D SYSTEMS Appendix
Slide 20: Revenue Summary by Category
Revenue Summary by Category 20 (in millions) Q2 2018 Q1 2018 Q2 2017 Sequential Change YOY Change Printers $ 39.2 $ 39.1 $ 27.7 — % 41% Software Products 12.9 12.3 12.8 5% 1% Other Products 13.7 11.2 13.2 22% 4% Total Products 65.7 62.6 53.7 5% 22% Total Materials 45.0 42.5 43.9 6% 3% On Demand Manu
Slide 21: Non-GAAP Reconciliation Second Quarter Non-GAAP Earnings per Share
Non - GAAP Reconciliation 21 Second Quarter Non - GAAP Earnings (Loss) per Share Quarter Ended June 30, Six Months Ended June 30, (in millions, except per share amounts) 2018 2017 2018 2017 GAAP Net loss attributable to 3D Systems Corporation $ (8.9 ) $ (8.4 ) $ (29.8 ) $ (18.4 ) Adjustments: Amorti
Slide 22: Non-GAAP Reconciliation Second Quarter Gross Profit & Margin
Non - GAAP Reconciliation 22 Second Quarter Non - GAAP Gross Profit & Margin Second Quarter Six Months Ended (in millions) 2018 2017 2018 2017 GAAP Gross Profit $ 86.2 $ 80.7 $ 164.0 $ 160.9 GAAP Gross Profit Margin 48.8 % 50.6 % 47.9 % 50.9 % Adjustments: Amortization, stock - based compensation &
Slide 23: Non-GAAP Reconciliation Second Quarter Operating Expenses
Non - GAAP Reconciliation 23 Second Quarter Non - GAAP Operating Expenses Second Quarter Six Months Ended (in millions) 2018 2017 2018 2017 GAAP R&D Expenses $ 22.7 $ 24.4 $ 48.6 $ 47.3 GAAP SG&A Expenses 71.2 63.1 140.6 129.5 GAAP Operating Expenses $ 93.9 $ 87.5 $ 189.2 $ 176.8 Adjustments to R&D
Slide 24: Non-GAAP Reconciliation First Quarter Gross Profit and Margin
Non - GAAP Reconciliation 24 First Quarter Non - GAAP Gross Profit and Margin First Quarter (in millions) 2018 2017 GAAP Gross Profit $ 77.9 $ 80.2 GAAP Gross Profit Margin 46.9 % 51.3 % Adjustments: Amortization, stock - based compensation & other 0.1 0.1 Cost optimization plan 0.2 — Non - GAAP Gro
Slide 25: Non-GAAP Reconciliation First Quarter Operating Expenses
Non - GAAP Reconciliation 25 First Quarter Non - GAAP Operating Expenses First Quarter (in millions) 2018 2017 GAAP R&D Expenses $ 25.9 $ 22.9 GAAP SG&A Expenses 69.5 66.4 GAAP Operating Expenses 95.4 89.3 Adjustments to R&D Expenses: Cost optimization plan 1 — — Non - GAAP R&D Expenses 25.9 22.9 Ad
Slide 26: Non-GAAP Reconciliation Full Year 2017 Gross Profit & Margin
Non - GAAP Reconciliation 26 Full Year 2017 Non - GAAP Gross Profit & Margin 2017 Quarter Ended Year Ended (in millions) March 31 June 30 September 30 December 31 December 31 GAAP Gross Profit $ 80.2 $ 80.7 $ 58.5 $ 85.5 $ 304.8 GAAP Gross Profit Margin 51.3 % 50.6 % 38.3 % 48.2 % 47.2 % Adjustments
Slide 27: Non-GAAP Reconciliation Full Year 2017 Operating Expenses
Non - GAAP Reconciliation 27 Full Year 2017 Non - GAAP Operating Expenses 2017 Quarter Ended Year Ended (in millions) March 31 June 30 September 30 December 31 December 31 GAAP R&D Expenses $ 22.9 $ 24.4 $ 24.4 $ 23.0 $ 94.6 GAAP SG&A Expenses 66.4 63.1 66.5 68.2 264.2 GAAP Operating Expenses 89.3 8
Slide 28: Thank You
4d 3D SYSTEMS Thank You