Slide 1: Earnings Presentation Q2 2020
Earnings Presentation Q2 2020 July 28, 2020
Slide 2: Safe Harbor
SAFE HARBOR These slides and accompanying oral presentation may contain forward-looking statements. These statements relate to future events or to future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity,
Slide 3: Q2 2020 Overview
y Q2 2020 OVERVIEW
Slide 4: Financial Highlights | Q2
FINANCIAL HIGHLIGHTS | Q2 Revenue ($M) (8.1)% • Revenue of $106.6 million, down (8.1)% YoY $12 million COVID-19 revenue in Q2 2020 $115.9 $106.6 17,037 unique product developers served 2019 2020 Non-GAAP EPS* (16.2)% • Non-GAAP EPS of $0.59, down $(0.12) YoY Decline due predominantly to lower
Slide 5: Regional Revenue | Q2
REGIONAL REVENUE | Q2 YoY Revenue % by Region ($M) Q2 20 Q2 19 CHANGE* Q2 2020 Americas $86.8 $91.1 (5)% 3% 16% Europe $16.7 $20.9 (18)% Japan $3.0 $3.8 (23)% 81% TOTAL $106.6 $115.9 (8)% Americas Europe Japan *YoY change reflected in constant currency See reconciliation in Appendix. 5
Slide 6: Revenue by Service | Q2
REVENUE BY SERVICE | Q2 Injection Molding - Revenue CNC Machining - Revenue ($M) ($M) 4% (26)% $55.5 $57.9 $38.9 $28.8 2019 2020 2019 2020 3D Printing - Revenue Sheet Metal - Revenue ($M) ($M) (7)% (15)% $15.3 $14.2 $5.5 $4.7 2019 2020 2019 2020 6
Slide 7: Q2 2020 Detailed Financial Information
Q2 2020 DETAILED FINANCIAL INFORMATION
Slide 8: Financial Results | Q2
FINANCIAL RESULTS | Q2 $M, EXCEPT SEQ. YoY PER SHARE AMOUNTS Q2 20 Q1 20 CHANGE Q2 19 CHANGE Revenue $106.6 $115.1 (7.4)% $115.9 (8.1)% Gross Margin 49.2% 50.5% (130) bps 52.0% (270) bps Non-GAAP 17.6% 17.9% (30) bps 20.6% (300) bps Operating Margin* Non-GAAP $0.59 $0.61 (2.0)% $0.71 (16.2)% Earning
Slide 9: YoY GAAP to Non-GAAP P&L | Q2
YoY GAAP to Non-GAAP P&L | Q2 Three Months Ended June 30, 2020 Three Months Ended June 30, 2019 $ in thousands GAAP Adjustments Non-GAAP* GAAP Adjustments Non-GAAP* Revenue $106,575 - $106,575 $115,932 - $115,932 Cost of Revenue 54,119 (936) 53,183 55,696 (797) 54,899 Gross Profit $52,456 $936 $53,3
Slide 10: QoQ GAAP to Non-GAAP P&L | Q2
QoQ GAAP to Non-GAAP P&L | Q2 Three Months Ended June 30, 2020 Three Months Ended March 31, 2020 $ in thousands GAAP Adjustments Non-GAAP* GAAP Adjustments Non-GAAP* Revenue $106,575 - $106,575 $115,108 - $115,108 Cost of Revenue 54,119 (936) 53,183 57,008 (863) 56,145 Gross Profit $52,456 $936 $53,
Slide 11: Cash Flow and Balance Sheet | Q2
CASH FLOW and BALANCE SHEET | Q2 $M Q2 20 Q1 20 FY 18 Q2 19 Operating Cash Flow $31.0 $22.4 $36.9 Capital Expenditures $19.9 $13.4 $21.4 Share Repurchases $2.7 $11.9 $4.1 Cash and Investments* $175.3 $167.2 $150.7 Debt* $0 $0 $0 *Balance Sheet items as of the end of the period. 11
Slide 12: Protolabs 2.0
y PROTOLABS 2.0
Slide 13: Protolabs 2.0 | July 2020 Update
PROTOLABS 2.0 | JULY 2020 UPDATE • Planned launch by end of 2020 Protolabs 2.0 will go live in Europe first, followed by the Americas Potential risk to our plan includes: o External – COVID-19 and travel restrictions o Internal – testing Focus is on ensuring a successful launch and customer ac
Slide 14: Protolabs 2.0 | Overview
PROTOLABS 2.0 | OVERVIEW Background Approach Future Legacy systems evolved Two components: Better support our slowly and incrementally Customer-facing customers and strategy Based on architecture eCommerce platform from early 2000s Back-end systems Enhanced functionality Protolabs 2.0 is a from exte
Slide 15: Financial Outlook
y FINANCIAL OUTLOOK
Slide 16: Q3 2020 | Outlook
Q3 2020 | OUTLOOK Q3 2020 Revenue Details Q3 2020 Revenue • Anticipate COVID-19 related revenue will be Revenue $98M - $110M significantly lower than the $12 million recognized in Q2 % Growth YoY (17)% - (6)% • Do not expect foreign currency to have a significant impact on Q3 2020 revenue Additional
Slide 17: Thank You
THANK YOU PROTOLABS Manufacturing. Accelerated.
Slide 18: Appendix
APPENDIX
Slide 19: GAAP to Non-GAAP Reconciliation | Revenue
GAAP to NON-GAAP RECONCILIATION | Revenue ($ in thousands) Three Months Three Months Ended Ended % Change June 30, 2020 June 30, 2019 % Constant 2 3 GAAP Adjustm ents 1 Non-GAAP GAAP Change Currencies Revenues United States $ 86,823 $ - $ 86,823 $ 91,149 (4.7) (4.7) Europe 16,729 417 17,146 20,940 (
Slide 20: GAAP to Non-GAAP Reconciliation | EBITDA
GAAP to NON-GAAP RECONCILIATION | EBITDA ($ in thousands) Three Months Ended June 30, 2020 2019 GAAP net income $ 12,607 $ 16,166 Amortization expense 754 863 Depreciation expense 7,143 6,678 Interest income, net (368) (465) Tax expense 2,511 4,532 EBITDA 22,647 27,774 EBITDA % of revenue 21.2% 24.0
Slide 21: GAAP to Non-GAAP Reconciliation | EPS
GAAP to NON-GAAP RECONCILIATION | EPS Three Months Ended ($ in thousands, except share and per share amounts) June 30, 2020 2019 Non-GAAP net income, adjusted for stock-based compensation expense, amortization expense and unrealized gain on foreign currency GAAP net income $ 12,607 $ 16,166 Add back