Proto Labs, Inc. · NYSE:PRLB
Proto Labs — Q3 2021 Earnings Presentation
22 slides from Proto Labs's earnings presentation, Oct 28, 2021
Slide 1: Earnings Presentation Q3 2021
Earnings Presentation Q3 2021 ▸ October 28, 2021 1
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 activit
Slide 3: Q3 2021 Overview
Q3 2021 Overview @Proto.ass
Slide 4: Financial Highlights YoY
Financial Highlights | Q3 2021 YoY Revenue ($M) 16.6% • Record Revenue of $125.3 million, up 16.6% YoY 23,457 unique product developers served $107.5 $125.3 Hubs contributed $8.8 million of revenue in the third quarter Q3 2020 Q3 2021 Non-GAAP EPS* (47.5)% • Non-GAAP EPS of $0.35, down $(0.32) Y
Slide 5: Financial Highlights QoQ
Financial Highlights | Q3 2021 QoQ Revenue ($M) 1.9% • Record Revenue of $125.3 million, up 1.9% QoQ Record revenue in CNC Machining and 3D Printing $123.0 $125.3 Europe down 10% sequentially driven by challenging economic environment Q2 2021 Q3 2021 Non-GAAP EPS* • Non-GAAP EPS of $0.35, down $
Slide 6: Revenue by Service YoY
Revenue by Service | Q3 2021 YoY Injection Molding - Revenue CNC Machining - Revenue ($M) ($M) 8% 32% $53.3 $57.7 $43.7 $33.1 Q3 2020 Q3 2021 Q3 2020 Q3 2021 3D Printing - Revenue Sheet Metal - Revenue ($M) ($M) 14% 22% $16.3 $18.6 $4.0 $4.9 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Record quarterly revenue i
Slide 7: Revenue by Service QoQ
Revenue by Service | Q3 2021 QoQ Injection Molding - Revenue CNC Machining - Revenue ($M) ($M) (1)% 5% $58.2 $57.7 $41.6 $43.7 Q2 2021 Q3 2021 Q2 2021 Q3 2021 3D Printing - Revenue Sheet Metal - Revenue ($M) ($M) 2% 3% $18.2 $18.6 $4.7 $4.9 Q2 2021 Q3 2021 Q2 2021 Q3 2021 Record quarterly revenue in
Slide 8: Revenue by Region
Revenue by Region | Q3 2021 YoY Change YoY Change Revenue % by Region $M Q3 21 Q3 20 Overall Organic, Q3 2021 Constant Fx* 2.4% Americas $100.1 $85.6 17% 11% 17.7% Europe $22.2 $18.9 17% (7)% Japan $3.1 $3.0 2% 6% 79.9% TOTAL $125.3 $107.5 17% 8% Americas Europe Japan *YoY change reflected in consta
Slide 9: Q3 2021 Awards / Recognition
Q3 2021 Awards / Recognition World Economic Forum WTWH Media LEAP Awards Global Lighthouse Network Inductee Gold in Software Category ▸ Recognition of Protolabs’ industry-leading efforts to ▸ Leadership in Engineering Achievement Program (LEAP) implement Fourth Industrial Revolution technologies, Aw
Slide 10: Q3 2021 Detailed Financial Information
Q3 2021 Detailed Financial Information 10
Slide 11: Financial Results
Financial Results | Q3 2021 $M, Except QoQ YoY per share amounts Q3 21 Q2 21 Change Q3 20 Change Revenue $125.3 $123.0 1.9% $107.5 16.6% Non-GAAP 44.9% 46.8% (190) bps 51.7% (680) bps Gross Margin* Non-GAAP Operating Margin* 10.2% 12.1% (190) bps 20.8% (1,060) bps Non-GAAP $0.35 $0.39 (9.3)% $0.67 (
Slide 12: YoY GAAP to Non-GAAP P&L
YoY GAAP to Non-GAAP P&L | Q3 2021 Three Months Ended Sept. 30, 2021 Three Months Ended Sept. 30, 2020 $ in thousands GAAP Adjustments Non-GAAP* GAAP Adjustments Non-GAAP* Revenue $125,342 - $125,342 $107,504 - $107,504 Cost of Revenue 70,018 (986) 69,032 52,861 (989) 51,872 Gross Profit $55,324 $98
Slide 13: YoY GAAP to Non-GAAP Bridge
YoY GAAP to Non-GAAP Bridge | Q3 2021 Three Months Ended Sept. 30 GAAP Non-GAAP Operating EPS Operating EPS $ in thousands Income Impact Income Impact Commentary Q3 2020 Operating Income / Diluted EPS $17,669 $0.55 $22,368 $0.67 ▸ Manufacturing operations impacted by labor shortages resulting in inc
Slide 14: QoQ GAAP to Non-GAAP P&L
QoQ GAAP to Non-GAAP P&L | Q3 2021 Three Months Ended Sept. 30, 2021 Three Months Ended Jun. 30, 2021 $ in thousands GAAP Adjustments Non-GAAP* GAAP Adjustments Non-GAAP* Revenue $125,342 - $125,342 $123,048 - $123,048 Cost of Revenue 70,018 (986) 69,032 66,423 (1,011) 65,412 Gross Profit $55,324 $9
Slide 15: Cash Flow and Balance Sheet
Cash Flow and Balance Sheet | Q3 2021 $M Q3 21 Q2 21 Q3 20 FY 18 Operating Cash Flow $11.5 $14.3 $29.0 Capital Expenditures $4.0 $17.4 $7.2 Share Repurchases $11.8 $1.2 $0.0 Cash and Investments* $83.9 $89.0 $200.6 Debt* $0 $0 $0 *Balance Sheet items as of the end of the period. 15
Slide 16: Q4 2021 Financial Outlook
Q4 2021 Financial Outlook @Proto.ass
Slide 17: Q4 2021 Outlook
Q4 2021 | Outlook Q4 2021 Revenue Revenue $112M - $122M % Growth YoY 7% - 16% Q4 2021 Outlook Commentary* ▸ Expect foreign currency to have a ~$0.5 million favorable impact on Q4 revenue ▸ Estimated Non-GAAP gross margin of ~45% +/- 100 bps ▸ Projected Non-GAAP operating expenses of $43 million to $
Slide 18: Thank You
Thank You 18
Slide 19: Appendix
Appendix 19
Slide 20: GAAP to NON-GAAP Reconciliation | Revenue
GAAP to NON-GAAP Reconciliation | Revenue $ in thousands Three Months Ended Three Months Ended Septem ber 30, 2021 Septem ber 30, 2020 % Foreign Hubs % Change 1 2 3 4 GAAP Currency Acquisition Non-GAAP GAAP Change Organic Revenues United States $ 100,127 $ - $ (4,729) $ 95,398 $ 85,608 17.0 % 11.4 %
Slide 21: GAAP to NON-GAAP Reconciliation | EBITDA
GAAP to NON-GAAP Reconciliation | EBITDA $ in thousands Three Months Ended Septem ber 30, 2021 2020 GAAP net income $ 4,835 $ 14,697 Amortization expense 1,568 754 Depreciation expense 8,536 7,282 Interest income, net (55) (255) Tax expense 2,228 3,700 EBITDA 17,112 26,178 Add back: Stock-based comp
Slide 22: GAAP to NON-GAAP Reconciliation | EPS
GAAP to NON-GAAP Reconciliation | EPS Three Months Ended $ in thousands, except share and per share amounts Septem ber 30, 2021 2020 Non-GAAP net income, adjusted for stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency and transaction costs GAAP net inc