Proto Labs, Inc. · NYSE:PRLB
Proto Labs — Q3 2023 Earnings Presentation
30 slides from Proto Labs's earnings presentation, Nov 3, 2023
Slide 1: Earnings Presentation Q3 2023
Earnings Presentation Q3 2023 November 3, 2023
Slide 2: Global Digital Manufacturing Locations
Global Digital Manufacturing Locations
Slide 3: 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 4: 2023 Priorities - Q3 Update
y 2023 Priorities - Q3 Update
Slide 5: 2023 Priorities – Q3 Update
2023 Priorities – Q3 Update Priority Growth Areas – IM and CNC • Injection Molding • Year-to-date, IM revenue is up in constant currencies and excluding Japan • We believe we will achieve our goal of YoY IM growth for the full year 2023 • Combined factory and network offer gaining traction; winning
Slide 6: 2023 Priorities – Q3 Update (continued)
2023 Priorities – Q3 Update (continued) Shareholder Value Creation / Profitability Expansion • Third quarter financial results: • Record quarterly total revenue • Record quarterly network revenue • Highest quarterly consolidated gross profit since 2019 • Highest quarterly Non-GAAP* earnings per shar
Slide 7: Customer Value Examples
y Customer Value Examples
Slide 8: Fortune 500 Medical Company
Fortune 500 Medical Company Protolabs’ comprehensive model provides immense value CHALLENGE ▸ Fortune 500 medical company had a line-down situation at an existing vendor, leaving it with a large gap in delivery of its end-use production equipment for surgical rooms Quick Stats ▸ Company needed quick
Slide 9: European Luxury Automaker
European Luxury Automaker The most innovative companies in the world choose Protolabs CHALLENGE ▸ A European luxury high end automotive manufacturer was looking to extend its leadership in high performance vehicles to include electric vehicles ▸ To optimize the hydraulic system for cooling the batte
Slide 10: Q3 2023 Overview
y Q3 2023 Overview
Slide 11: Financial Highlights | Q3 2023 YoY
Financial Highlights | Q3 2023 YoY Revenue ($M) • Revenue of $130.7 million, up 7.1% 1 YoY 7.1%1 • Record quarterly total revenue • YoY and QoQ growth in injection molding, CNC machining, 3DP • Digital network (powered by Hubs) revenue grew 81.2% YoY in constant currencies • Sequential total revenue
Slide 12: Revenue by Region | Q3 2023
Revenue by Region | Q3 2023 Revenue % by Region YoY Change YoY Change YoY Change Q3 2023 Q3 2022 Overall Constant Fx* Constant Fx* Q3 2023 Excl. Japan Americas $103.9 $99.0 5.0% 5.0% 20% Europe $26.8 $21.5 24.7% 16.9% Japan - $1.3 (100.0)% (100.0)% 80% Total $130.7 $121.7 7.4% 6.0% 7.1% Americas Eur
Slide 13: Revenue by Service | Q3 2023 YoY
Revenue by Service | Q3 2023 YoY Injection Molding - Revenue CNC Machining - Revenue ($M) ($M) 10%* 4%* 3D Printing - Revenue Sheet Metal - Revenue ($M) 7%* ($M) (18)%* 13 *YoY change reflected in constant currencies See reconciliation in Appendix.
Slide 14: Revenue by Service | Q3 2023 QoQ
Revenue by Service | Q3 2023 QoQ Injection Molding - Revenue CNC Machining - Revenue ($M) ($M) 6% 10% $ 3D Printing - Revenue Sheet Metal - Revenue ($M) ($M) 3% 9% $ $ 14
Slide 15: Q3 2023 Detailed Financial Information
Q3 2023 Detailed Financial Information
Slide 16: Financial Results | Q3 2023
Financial Results | Q3 2023 Q3 2023 Q2 2023 QoQ Change Q3 2022 YoY Change Revenue $130.7 $122.3 6.9% $121.7 7.4% Non-GAAP 46.0% 44.1% 190 bps 44.8% 120 bps Gross Margin* Non-GAAP 12.5% 8.9% 360 bps 11.2% 130 bps Operating Margin* Non-GAAP $0.51 $0.33 53.6% $0.40 28.3% Earnings Per Share* *Non-GAAP:
Slide 17: YoY GAAP to Non-GAAP P&L | Q3 2023
YoY GAAP to Non-GAAP P&L | Q3 2023 Three Months Ended September 30, 2023 Three Months Ended September 30, 2022 $ in thousands GAAP Adjustments Non-GAAP* GAAP Adjustments Non-GAAP* Revenue $ 130,705 — $ 130,705 $ 121,721 — $ 121,721 Cost of revenue 71,423 (805) 70,618 68,089 (902) 67,187 Gross profit
Slide 18: QoQ GAAP to Non-GAAP P&L | Q3 2023
QoQ GAAP to Non-GAAP P&L | Q3 2023 Three Months Ended September 30, 2023 Three Months Ended June 30, 2023 $ in thousands GAAP Adjustments Non-GAAP* GAAP Adjustments Non-GAAP* Revenue $ 130,705 — $ 130,705 $ 122,265 — $ 122,265 Cost of revenue 71,423 (805) 70,618 69,142 (803) 68,339 Gross profit $ 59
Slide 19: Cash Flow and Balance Sheet | Q3 2023
Cash Flow and Balance Sheet | Q3 2023 $M Q3 2023 Q2 2023 Q3 2022 Operating Cash Flow $24.2 $9.3 $20.5 Capital Expenditures $3.1 $3.4 $10.4 Share Repurchases $9.0 $8.9 $7.8 Cash and Investments* $114.9 $102.8 $113.9 Debt* $0 $0 $0 19 *Balance sheet items as of the end of the period.
Slide 20: Q4 2023 Financial Outlook
y Q4 2023 Financial Outlook
Slide 21: Outlook | Q4 2023
Outlook | Q4 2023 Q4 2023 Revenue Q4 2023 Non-GAAP* EPS Revenue $118M - $126M Non-GAAP* EPS $0.26 - $0.34 % Growth YoY (constant FX) 2% - 8% % Growth YoY 2% - 33% Q4 2023 Outlook Commentary • Expect foreign currency to have a $0.5 to $1.0 million favorable impact on Q4 2023 revenue • Expect Q4 2023
Slide 22: Thank You!
Thank You!
Slide 23: Appendix
y Appendix
Slide 24: 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 September 30, 2023 September 30, 2022 Foreign % % Change GAAP Currency1 Non-GAAP GAAP Change2 Organic3 Revenue
Slide 25: 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 September 30, 2023 September 30, 2022 Foreign % % Change GAAP Currency1 Non-GAAP GAAP Change2 Organic3
Slide 26: 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 September 30, 2023 2022 Revenue $ 130,705 $ 121,721 Gross profit 59,282 53,632 GAAP gross margin 45.4% 44.1% Add back: Stock-based compensatio
Slide 27: 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 September 30, 2023 2022 Revenue $ 130,705 $ 121,721 Income from operations 10,415 6,058 GAAP operating margin 8.0% 5.0% Add back: Stoc
Slide 28: GAAP to NON-GAAP Reconciliation | EBITDA
GAAP to NON-GAAP Reconciliation | EBITDA Proto Labs, Inc. Reconciliation of GAAP Net Income to EBITDA and Adjusted EBITDA (In thousands) (Unaudited) Three Months Ended September 30, 2023 2022 Revenue $ 130,705 $ 121,721 GAAP net income 7,954 3,951 GAAP net income margin 6.1% 3.2% Add back: Amortizat
Slide 29: 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 September 30, 2023 2022 Non-GAAP net income, adjusted for stock-based compensation expense, amortization ex
Slide 30: GAAP to NON-GAAP Reconciliation | Q4 2023 Outlook
GAAP to NON-GAAP Reconciliation | Q4 2023 Outlook Proto Labs, Inc. Reconciliation of GAAP to Non-GAAP Guidance (In thousands, except share and per share amounts) (Unaudited) Q4 2023 Outlook Low High GAAP diluted earnings per share $ 0.07 $ 0.15 Add back: Stock-based compensation expense 0.14 0.14 Am