Slide 1: First Half 2024 Financial Results
August 29, 2024 First Half 2024 Financial Results
Slide 2: Welcome and Participants
Welcome and Participants Dr. Jeffrey Graves President & Chief Executive Officer Jeffrey Creech Executive Vice President & Chief Financial Officer Mick McCloskey Vice President, Treasury & Investor Relations To participate via phone, please dial: 1-201-689-8345 2
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: First Half Highlights
First Half Highlights • Softer start in Q1, with QoQ momentum building in Q2 ‒ Q2 revenues grew 10% QoQ ‒ Pipeline and customer engagement remains robust, but still contending with challenging macro environment ‒ Healthcare – strong recovery in materials & services, offset by printers given customer
Slide 6: Healthcare Highlights
Healthcare Highlights 3D Systems Provides Important 3D Systems Announces FDA Update on Dental Growth Strategy Clearance for World’s First 3D- Printed PEEK Cranial Implants • Company rapidly expanding market-leading solution portfolio to address all major facets of dentistry, including • FDA clearanc
Slide 7: Industrial Highlights
Industrial Highlights 3D Systems & Precision Resource NAMI Selects 3D Systems’ Metal & Announce Strategic Partnership to Polymer Additive Manufacturing Solutions Advance Metal Additive Manufacturing to Power Streamlined Supply Chain for Saudi Electricity Company • Collaboration intended to catalyze
Slide 8: Jeffrey Creech
Jeffrey Creech EVP & Chief Financial Officer 8
Slide 9: Revenue Summary
Revenue Summary ($ in millions) Q1 Y/Y Q2 Y/Y 1H Y/Y Observations • 1H’24 decline driven by printers (largely dental & macro) Healthcare (7%) (20%) (14%) • Materials and services $110 $61 $49 $94 deliver strong growth, $49 $45 largely dental • 1H’24 decline driven by printers & materials, partial of
Slide 10: Gross Profit Margin (Non-GAAP)
Gross Profit Margin (Non-GAAP) Gross Margin Performance Drivers +110 bps Gross Margin Performance Drivers 40.1% • Strong materials and services growth leveraging • Resilience in materials and growth in services 39.0% install base helped drive favorable mix helped drive favorable mix • Partially Q1’2
Slide 11: Operating Expense (Non-GAAP)
Operating Expense (Non-GAAP) Operating Expense Drivers $66.3 $64.2 • Q1 YoY increase primarily driven by external audit $62.6 $62.1 fees and outside services, ~$5 million higher than expectations • Q2 YoY increase primarily driven by external audit fees and outside services, ~$2 million higher than
Slide 12: Earnings (Non-GAAP)
Earnings (Non-GAAP) ($ in millions, except per share amounts) Q1’23 Q1’24 Y/Y Q2’23 Q2’24 Y/Y Adjusted EBITDA drivers • Lower revenues • Higher than originally expected OpEx spend Adj. EBITDA ($10.1) ($20.1) ($10.0) ($6.9) ($12.9) ($6.0) primarily related to extended 2023 audit Non-GAAP Non-GAAP ear
Slide 13: Balance Sheet Highlights
Balance Sheet Highlights • Ended the quarter with $193 million of cash and cash equivalents • Repurchased ~$110 million of ‘26 Convertible Notes at substantial discount for ~$87 million cash in Q1’24 • Q1’24 and Q4’23 note repurchases reduced our overall 2026 maturity by over 50%, delivered attracti
Slide 14: 2024 Outlook
2024 Outlook ✓ FY’24 Revenues between the range of $450 million - $460 million, with continued QoQ growth ✓ Non-GAAP gross margin within the range of 40% - 42% ✓ Non-GAAP OpEx within the range of $248 million - $253 million, expect QoQ improvement in 2H’24 ✓ Near break-even Adj. EBITDA in Q4’24 14
Slide 15: Q&A Session
Q&A Session 1-201-689-8345 15
Slide 16: Thank You
Thank You Find out more at: www.3dsystems.com 16
Slide 17: Appendix
Appendix ©2024 3D Systems, Inc. | All Rights Reserved.
Slide 18: 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 gross profit, non-GAAP operating expense, non-GAAP gross profit margin, non-GAAP diluted income (loss) per share, and Adjus
Slide 19: Appendix: Gross Profit and Operating Expense Reconciliation Q1
ppendix 3D Systems Corporation ‘Unaudited Reconciliations of GAAP to Non-GAAP Measures Three Months Ended March 31, 2024, 2023 Gross Profit and Gross Profit Margin ® ‘Three Months Ended March 31, (in thousands) GAAP $ ‘Amortization expense included in Cost of sales ‘Non-GAAP® $ ‘Amount: in table may
Slide 20: Appendix: Gross Profit and Operating Expense Reconciliation Q2
Appendix 3D Systems Corporation ‘Unaudited Reconciliations of GAAP to Non-GAAP Measures Three and Six Months Ended June 30, 2024, 2023 Gross Profit and Gross Profit Margin ® ‘Three Months Ended June 20, (om thowsends) 20 23 Gros Prost ORE ES ross Prost ONE Pet GAAP sm a $500 39.0% Amortization expen
Slide 21: Appendix: Net Loss to Adjusted EBITDA Q1
Appendix 3D Systems Corporation Unaudited Reconciliations of GAAP to Non-GAAP Measures Three Months Ended March 31, 2024, 2023 Net (Loss) Income to Adjusted EBITDA ® 2024 2023 = i : ° 3 s . 8 3 | | i | ffi it a © Amount: in table mzy not foot due to rounding
Slide 22: Appendix: Net Loss to Adjusted EBITDA Q2
Appendix 3D Systems Corporation Unaudited Reconciliations of GAAP to Non-GAAP Measures Three and Six Months Ended June 30, 2024, 2023 Net Loss to Adjusted EBITDA ® Three Months Ended June 30, Six Months Ended June 30, (in thousands) 204 2023 2044 2023 Net loss attributable to 3D Systems Corporation
Slide 23: Appendix: Diluted Loss per Share Q1
Appendix 3D Systems Corporation Unaudited Reconciliations of GAAP to Non-GAAP Measures Three Months Ended March 31, 2024, 2023 Diluted (Loss) Income per Share ® Three Months Ended March 31, (in dollars) 2024 2023 Diluted (oss incomeperstare aS 2D Stock-based compensation expense 0.06 0.08 | Amonizao
Slide 24: Diluted Loss per Share Reconciliation Q2
3D Systems Corporation Unaudited Reconciliations of GAAP to Non-GAAP Measures Three Months Ended June 30, 2024, 2023 Diluted Loss per Share ® Three Months Ended June 30, ‘Six Months Ended June 30, (im dollars) 2024 2023 2024 2023 ‘Diluted loss per share $ @2) $ 2) $ 33) $ 0.45) ‘Stock-based compensa