Slide 1: First Quarter 2021 Financial Results
May 11, 2021 First Quarter 2021 Financial Results ©2021 3D Systems, Inc. | All Rights Reserved.
Slide 2: Welcome and Participants
Welcome and Participants Dr. Jeffrey Graves President and Chief Executive Officer Jagtar Narula Executive VP and Chief Financial Officer Andrew Johnson Executive VP and Chief Legal Officer John Nypaver, Jr. To participate via phone, VP, Treasurer and Investor Relations 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 include statements concerning plans, ob
Slide 4: Dr. Jeffrey Graves
Dr. Jeffrey Graves President & Chief Executive Officer 4 ©2021 3D Systems, Inc. | All Rights Reserved.
Slide 5: Transformation is Yielding Results
Transformation is Yielding Results Strategic Purpose Strategic Reorganize Restructure Divest/Invest Purpose We are the leaders in enabling additive manufacturing solutions for applications in growing markets that demand high reliability products. 5 ©2021 3D Systems, Inc. | All Rights Reserved.
Slide 6: Strengths That Drive Future Success
Strengths That Drive Future Success • Broad technology portfolio • Strong application engineering capability • Scale to support and grow customers’ needs 6 ©2021 3D Systems, Inc. | All Rights Reserved.
Slide 7: Colorado Expansion
Colorado Expansion • Established operation for groundbreaking precision healthcare applications and medical technology • New investments in application expertise, hardware and software technology will enable us to accelerate time-to-market, expand our offerings, and better support the needs of our g
Slide 8: Acquisition: Additive Works
Acquisition: Additive Works • Software company focused on optimization and automation of AM print set-up and workflow generation • Highly automated simulation software interfaces seamlessly with leading CAD systems as well as our 3DXpert and other print platforms • Increases productivity by reducing
Slide 9: Acquisition: Allevi
Acquisition: Allevi • Developer of bioprinting solutions: bioprinters, biomaterials / bioinks, and specialized laboratory software • Established presence in over 380 medical and pharmaceutical laboratories in over 40 countries • Positions us to leverage the technology we have developed for in vivo a
Slide 10: Jagtar Narula
Jagtar Narula Chief Financial Officer 10 ©2021 3D Systems, Inc. | All Rights Reserved.
Slide 11: Q1 Summary
Q1 Summary QUARTER ENDED MARCH 31, 2021 2020 HIGHLIGHTS (IN MILLIONS, EXCEPT PER SHARE AMOUNTS) Q1 Revenue increased REVENUE $ 146.1 $ 135.6 7.7% YoY; 16.6% excluding divested OPERATING LOSS $ (2.0) $ (18.2) business NET INCOME (LOSS) $ 45.2 $ (18.9) INCOME (LOSS) PER SHARE - DILUTED $ 0.36 $ (0.17)
Slide 12: Revenue by Market
Revenue by Market $ in millions Healthcare Revenue Q1 YoY Industrial Revenue Q1 YoY (excluding divested business) $72.5 +0.7% $73.6 $73.1 +38.7% $52.3 Q1 2020 Q1 2021 Q1 2020 Q1 2021 12 ©2021 3D Systems, Inc. | All Rights Reserved.
Slide 13: Gross Profit Margin
Gross Profit Margin • Year-over-Year improvement driven by higher sales volume, mix including software sales and the impact of our cost reduction activities • Grew margins despite divesting Cimatron software business 50% GAAP GPM 50% Non-GAAP GPM 45% 44% 45% 44% 43% 43% 43% 43% 42% 42% 41% 40% 40% 3
Slide 14: Operating Expenses
Operating Expenses GAAP operating expenses decreased 12.1% compared to first quarter 2020 due to savings achieved from cost restructuring activities and the impact of divested businesses offset by higher stock compensation expense Non-GAAP operating expenses decreased 18.7% compared to the prior yea
Slide 15: Adjusted EBITDA Margin
Adjusted EBITDA Margin Defined as non-GAAP Operating Income plus Depreciation 15.0% 13.6% 13.3% 10.0% 5.3% 5.0% 1.6% 0.0% -3.2% -5.0% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 See appendix for a reconciliation of Non-GAAP Operating Income and Adjusted EBITDA. 15 ©2021 3D Systems, Inc. | All Rights Res
Slide 16: Strong Balance Sheet and Cash Generation
Strong Balance Sheet and Cash Generation • Generated $28.5 million of cash from operations • Repaid $21.4 million of debt; debt free • $133.0 million of cash, cash equivalents, and restricted cash • $100.0 million undrawn revolver with approximately $92.0 million of availability 16 ©2021 3D Systems,
Slide 17: Growing Profitably and Generating Cash
Trending Up Growing Profitably and Generating Cash YoY Revenue Growth Rates Cash From Operations 20% $35 10% $25 USD in Millions 0% $15 Q1:20 Q2:20 Q3:20 Q4:20 Q1:21 -10% $5 -20% -$5 Q1:20 Q2:20 Q3:20 Q4:20 Q1:21 -30% -$15 -40% -$25 17 ©2021 3D Systems, Inc. | All Rights Reserved.
Slide 18: Investor Day, September 9, 2021
INVESTOR DAY September 9, 2021 Denver, Colorado Details coming soon ©2021 3D Systems, Inc. | All Rights Reserved.
Slide 19: Dr. Jeffrey Graves
Dr. Jeffrey Graves President & Chief Executive Officer 19 ©2021 3D Systems, Inc. | All Rights Reserved.
Slide 20: Summary
Summary Focus on operational execution • Return to year-over-year growth • Strong balance sheet and cash generation Intentional action on our 4-stage plan • Exploring additional divestitures of non- core assets • Investing for sustained growth and profitability 20 ©2021 3D Systems, Inc. | All Rights
Slide 21: Q&A Session
Q&A Session 1-201-689-8345 21 ©2021 3D Systems, Inc. | All Rights Reserved.
Slide 22: Thank You
Thank You Find out more at: www.3dsystems.com 22 ©2021 3D Systems, Inc. | All Rights Reserved.
Slide 23: Appendix
Appendix ©2021 3D Systems, Inc. | All Rights Reserved.
Slide 24: Presentation of Information
Presentation of Information 3D Systems reports is financial results in accordance with GAAP. To facilitate a better understanding of the impact that strategic acquisitions, non-recurring charges and certain non-cash expenses had on its financial results, management reviews certain non-GAAP measures,
Slide 25: Non-GAAP Reconciliation - Operating Income (Loss)
Non-GAAP Reconciliation - Operating Income (Loss) (Unaudited) First Quarter Non-GAAP Operating Income (Loss) Quarter Ended March 31, (in millions) 2021 2020 GAAP Operating loss $ (2.0) $ (18.2) Adjustments: Amortization, stock-based compensation & other (1) 13.4 10.7 Legal, acquisition and divestitu
Slide 26: Non-GAAP Reconciliation - Net Income (Loss)
Non-GAAP Reconciliation - Net Income (Loss) (Unaudited) First Quarter Non-GAAP Net Income (Loss) Quarter Ended March 31, (in millions) 2021 2020 GAAP Net income (loss) $ 45.2 $ (18.9) Adjustments: Amortization, stock-based compensation & other 13.4 10.7 Legal, acquisition and divestiture related (1)
Slide 27: Non-GAAP Reconciliation - EPS
Non-GAAP Reconciliation - EPS (Unaudited) First Quarter Non-GAAP Net Income (Loss) per Share Quarter Ended March 31, 2021 2020 GAAP Net income (loss) per share - basic $ 0.37 $ (0.17) GAAP Net income (loss) per share - diluted $ 0.36 $ (0.17) Adjustments: Amortization, stock-based compensation & oth
Slide 28: Non-GAAP Reconciliation - GP and GPM
Non-GAAP Reconciliation - GP and GPM (Unaudited) Quarterly 2020 and 2021 Non-GAAP Gross Profit & Margin 2021 2020 Quarter Ended Quarter Ended (in millions) March 31 March 31 GAAP Gross Profit $ 64.2 $ 57.1 GAAP Gross Profit Margin 44.0 % 42.1 % Adjustments: Amortization, stock-based compensation & o
Slide 29: Non-GAAP Reconciliation - Operating Expense
Non-GAAP Reconciliation - Operating Expense (Unaudited) Quarterly 2020 and 2021 Non-GAAP Operating Expenses 2021 2020 Quarter Ended Quarter Ended (in millions) Mar 31 Mar 31 GAAP SG&A Expenses $ 49.6 $ 56.1 GAAP R&D Expenses 16.6 19.2 GAAP Operating Expenses 66.2 75.4 Adjustments to R&D Expenses: Co