Proto Labs, Inc. · NYSE:PRLB
Proto Labs — Q4 2023 Earnings Presentation
39 slides from Proto Labs's earnings presentation, Feb 9, 2024
Slide 1: Earnings Presentation Q4 & FY 2023
Earnings Presentation Q4 & FY 2023 February 9, 2024
Slide 2: Forward-looking Statements and Non-GAAP Measures
Forward-looking Statements and Non-GAAP Measures • These slides may contain forward-looking • Other factors that could materially affect actual • Non-GAAP Financial Measures: Protolabs statements. These statements relate to future results, levels of activity, performance or management believes that
Slide 3: Protolabs Enables Positive Global Impact
Protolabs Enables Positive Global Impact
Slide 4: Vision and Mission
Vision Accelerating innovation by revolutionizing manufacturing. Mission We empower companies to bring new ideas to market by offering the fastest and most comprehensive digital manufacturing service in the world.
Slide 5: EV manufacturer leveraged Protolabs Network for injection molded components
To support Electric Vehicle development, a prominent EV manufacturer and long-time Factory customer leveraged Protolabs Network for large and complex IM components. Image: Reuters
Slide 6: Metal 3D printed component for Hinetics electric plane motor
Protolabs manufactured a complex component via metal 3D printing to dissipate heat and improve power-to-weight ratio on Hinetics’ electric plane motor. Image: Hinetics
Slide 7: Micro-satellite development with machined parts
Image: Space Inventor Development of micro-satellites for orbital experimentation was accelerated with Protolabs machined parts for antenna mounts, payload housings, and other features.
Slide 8: Agricultural machinery leader uses Digital Factories and Network
Leader in agricultural machinery leveraged Digital Factories and Protolabs Network to provide cost-efficient CNC machined metal components from a single supplier. Image: Public Policy Institute of California
Slide 9: 2023 Accomplishments, 2024 Priorities
2023 Accomplishments, 2024 Priorities
Slide 10: 2023 Accomplishments
2023 Accomplishments 1. Drive Growth in Priority Focus Areas • Grow Injection Molding • Successfully achieved injection molding revenue growth YoY in 2023 • Combined factory and network offer gaining traction; winning larger orders • Grow CNC Machining • Successfully unlocked greater revenue g
Slide 11: 2024 Priorities
2024 Priorities 1. Increase number of customers using the combined offer • Growth in users of the combined offer will drive revenue growth through both factory and network 2. Drive larger orders in all services • Continue to increase exposure to production, a larger market than prototyping • Focus o
Slide 12: Q4 2023 Financial Overview
y Q4 2023 Financial Overview
Slide 13: Financial Highlights | Q4 2023
Financial Highlights | Q4 2023 Revenue ($M) 7.2%1 • Revenue of $125.0 million, up 7.2% 1 YoY • YoY growth in injection molding, CNC machining, 3D printing $115.6 $125.0 • Protolabs Network generated revenue of $22.5 million, up 49% YoY in constant currencies Q4 2022 Q4 2023 Non-GAAP EPS* • Non-GAAP
Slide 14: Financial Results | Q4 2023
Financial Results | Q4 2023 Q4 2023 Q3 2023 QoQ Change Q4 2022 YoY Change Revenue $125.0 $130.7 (4.3)% $115.6 8.2% Non-GAAP 45.3% 46.0% (70) bps 42.8% 250 bps Gross Margin* Non-GAAP 11.2% 12.5% (130) bps 6.2% 500 bps Operating Margin* Non-GAAP $0.46 $0.51 (10.0)% $0.26 78.4% Earnings Per Share* *Non
Slide 15: Revenue by Service | Q4 2023 YoY
Revenue by Service | Q4 2023 YoY Injection Molding - Revenue CNC Machining - Revenue ($M) ($M) 14%* 4%* $44.9 $51.5 $46.6 $48.9 Q4 2022 Q4 2023 Q4 2022 Q4 2023 3D Printing - Revenue Sheet Metal - Revenue ($M) ($M) 3%* (8)%* $19.5 $20.3 $4.4 $4.1 Q4 2022 Q4 2023 Q4 2022 Q4 2023 15 *YoY change reflect
Slide 16: Cash Flow and Balance Sheet | Q4 2023
Cash Flow and Balance Sheet | Q4 2023 $M Q4 2023 Q3 2023 Q4 2022 Operating Cash Flow $17.2 $24.2 $10.5 Capital Expenditures $18.2 $3.1 $5.3 Share Repurchases $4.9 $9.0 $16.6 Cash and Investments* $110.8 $114.9 $106.5 Debt* $0 $0 $0 16 *Balance sheet items as of the end of the period.
Slide 17: FY 2023 Financial Overview
y FY 2023 Financial Overview
Slide 18: Financial Highlights | FY 2023
Financial Highlights | FY 2023 Revenue ($M) • Revenue of $503.9 million, up 5.0% 1 YoY 5.0%1 • Record annual revenue for Protolabs • YoY growth in injection molding, CNC machining, and 3D printing $488.4 $503.9 • Protolabs Network revenue grew 69% YoY in constant currencies FY 2022 FY 2023 Non-GAAP
Slide 19: Financial Results | FY 2023
Financial Results | FY 2023 FY 2023 FY 2022 YoY Change Revenue $503.9 $488.4 3.2% Non-GAAP 44.7% 44.8% (10) bps Gross Margin* Non-GAAP 10.0% 10.4% (40) bps Operating Margin* Non-GAAP $1.59 $1.50 5.9% Earnings Per Share* *Non-GAAP: adjusted for stock-based compensation, intangible amortization, goodw
Slide 20: Revenue by Service | FY 2023
Revenue by Service | FY 2023 Injection Molding - Revenue CNC Machining - Revenue ($M) ($M) 2%* 5%* $200.6 $203.9 $188.4 $198.2 FY 2022 FY 2023 FY 2022 FY 2023 3D Printing - Revenue Sheet Metal - Revenue ($M) ($M) 7%* (15)%* $79.0 $84.3 $19.5 $16.5 FY 2022 FY 2023 FY 2022 FY 2023 20 *YoY change refle
Slide 21: Cash Flow and Balance Sheet | FY 2023
Cash Flow and Balance Sheet | FY 2023 $M FY 2023 FY 2022 Operating Cash Flow $73.3 $62.1 Capital Expenditures $28.1 $21.7 Share Repurchases $44.0 $29.7 Cash and Investments* $110.8 $106.5 Debt* $0 $0 21 *Balance sheet items as of the end of the period.
Slide 22: Q1 2024 Financial Outlook
y Q1 2024 Financial Outlook
Slide 23: Outlook | Q1 2024
Outlook | Q1 2024 Q1 2024 Revenue Q1 2024 Non-GAAP* EPS Revenue $120M - $128M Non-GAAP* EPS $0.26 - $0.34 % Growth YoY (5)% - 2% % Growth YoY (12)% - 15% Outlook Commentary • Expect foreign currency to have a $0.5 to $1.0 million favorable impact on Q1 2024 revenue • Expect Q1 2024 Non-GAAP* effecti
Slide 24: Thank You!
Thank You!
Slide 25: Appendix
y Appendix
Slide 26: Q4 2023 Detailed Financial Information
Q4 2023 Detailed Financial Information
Slide 27: YoY GAAP to Non-GAAP P&L | Q4 2023
YoY GAAP to Non-GAAP P&L | Q4 2023 Three Months Ended December 31, 2023 Three Months Ended December 31, 2022 $ in thousands GAAP Adjustments Non-GAAP* GAAP Adjustments Non-GAAP* Revenue $ 125,048 — $ 125,048 $ 115,607 — $ 115,607 Cost of revenue 69,236 (794) 68,442 67,000 (840) 66,160 Gross profit $
Slide 28: QoQ GAAP to Non-GAAP P&L | Q4 2023
QoQ GAAP to Non-GAAP P&L | Q4 2023 Three Months Ended December 31, 2023 Three Months Ended September 30, 2023 $ in thousands GAAP Adjustments Non-GAAP* GAAP Adjustments Non-GAAP* Revenue $ 125,048 — $ 125,048 $ 130,705 — $ 130,705 Cost of revenue 69,236 (794) 68,442 71,423 (805) 70,618 Gross profit
Slide 29: FY 2023 Detailed Financial Information
FY 2023 Detailed Financial Information
Slide 30: Revenue by Region | FY 2023
Revenue by Region | FY 2023 YoY Change Revenue % by Region YoY Change YoY Change Constant Fx* FY 2023 FY 2022 Overall Constant Fx* FY 2023 (excl. Japan) Americas $396.8 $387.4 2.4% 2.4% - 21% Europe $107.1 $92.8 15.4% 15.6% - Japan - $8.2 (100.0)% (100.0)% - 79% Total $503.9 $488.4 3.2% 3.2% 5.0% Am
Slide 31: YoY GAAP to Non-GAAP P&L | FY 2023
YoY GAAP to Non-GAAP P&L | FY 2023 Twelve Months Ended December 31, 2023 Twelve Months Ended December 31, 2022 $ in thousands GAAP Adjustments Non-GAAP* GAAP Adjustments Non-GAAP* Revenue $ 503,877 — $ 503,877 $ 488,398 — $ 488,398 Cost of revenue 281,884 (3,210) 278,674 272,933 (3,541) 269,392 Gros
Slide 32: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations
Slide 33: GAAP to Non-GAAP Reconciliation | Revenue by Region
GAAP to NON-GAAP Reconciliation | Revenue by Region Proto Labs, Inc. Comparison of GAAP to Non-GAAP Revenue Growth by Region (In thousands) (Unaudited) Three Months Ended Three Months Ended December December 31, 2023 31, 2022 Foreign % % Change GAAP Currency1 Non-GAAP GAAP Change2 Organic3 Revenues
Slide 34: GAAP to Non-GAAP Reconciliation | Revenue by Service
GAAP to NON-GAAP Reconciliation | Revenue by Service Proto Labs, Inc. Comparison of GAAP to Non-GAAP Revenue Growth by Service Line (In thousands) (Unaudited) Three Months Ended Three Months Ended December 31, 2023 December 31, 2022 Foreign % % Change GAAP Currency1 Non-GAAP GAAP Change2 Organic3 Re
Slide 35: GAAP to Non-GAAP Reconciliation | Gross Margin
GAAP to NON-GAAP Reconciliation | Gross Margin Proto Labs, Inc. Reconciliation of GAAP to Non-GAAP Gross Margin (In thousands) (Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, 2023 2022 2023 2022 Revenue $ 125,048 $ 115,607 $ 503,877 $ 488,398 Gross profit 55,812 48,607 2
Slide 36: GAAP to Non-GAAP Reconciliation | Operating Margin
GAAP to NON-GAAP Reconciliation | Operating Margin Proto Labs, Inc. Reconciliation of GAAP to Non-GAAP Operating Margin (In thousands) (Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, 2023 2022 2023 2022 Revenue $ 125,048 $ 115,607 $ 503,877 $ 488,398 Income (loss) from o
Slide 37: GAAP to Non-GAAP Reconciliation | EBITDA
GAAP to NON-GAAP Reconciliation | EBITDA Proto Labs, Inc. Reconciliation of GAAP Net Income (Loss) to EBITDA and Adjusted EBITDA (In thousands) (Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, 2023 2022 2023 2022 Revenue $ 125,048 $ 115,607 $ 503,877 $ 488,398 GAAP net in
Slide 38: GAAP to Non-GAAP Reconciliation | EPS
GAAP to NON-GAAP Reconciliation | EPS Proto Labs, Inc. Reconciliation of GAAP to Non-GAAP Net Income per Share (In thousands, except share and per share amounts) (Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, 2023 2022 2023 2022 Non-GAAP net income (loss), adjusted for
Slide 39: GAAP to Non-GAAP Reconciliation | Q1 2024 Outlook
GAAP to NON-GAAP Reconciliation | Q1 2024 Outlook Proto Labs, Inc. Reconciliation of GAAP to Non-GAAP Guidance (In thousands, except share and per share amounts) (Unaudited) Q1 2024 Outlook Low High GAAP diluted earnings per share $ 0.09 $ 0.17 Add back: Stock-based compensation expense 0.14 0.14 Am