Slide 1: First Quarter 2020 Financial Results
EXHIBIT 99.2 First Quarter 2020 Financial Results May 6, 2020 ©2019 3D Systems, Inc. | All Rights Reserved.
Slide 2: Welcome and Participants
Welcome and Participants Vyomesh Joshi President and Chief Executive Officer Todd Booth To participate via phone, Executive Vice President and Chief Financial Officer please dial: Andrew Johnson 1-201-689-8345 Executive Vice President and Chief Legal Officer Melanie Solomon Investor Relations 2
Slide 3: Forward Looking Statements
Forward Looking Statements This presentation contains certain statements 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, o
Slide 4: Vyomesh Joshi (VJ)
Vyomesh Joshi (VJ) President & Chief Executive Officer 4
Slide 5: On Demand Manufacturing Network
On Demand Manufacturing Network 5
Slide 6: COVID-19 Response: Face Shield Frame
COVID-19 Response: Face Shield Frame Our employees wanted to focus on a high impact way to help healthcare workers on the front lines • Designed and developed in 2 days • Our printers can print 100 face shields every 24 hours • Gave the data file to the community to print on their own SLS printer ◦
Slide 7: COVID-19 Response: Venturi Valve
COVID-19 Response: Venturi Valve In a hospital in Italy, urgently needed Venturi Valves were in low supply and traditional OEMs were not able to supply them in such a short time • Customer Lonati SpA reverse- engineered, prototyped, tested and printed 100 valves in 3 days • Using SLS ProX 6100 • Pri
Slide 8: COVID-19 Response: Ventilator Parts
COVID-19 Response: Ventilator Parts Multiple ventilator projects ongoing around the world and in hospitals, including with the NHS in U.K. 8 Photo credit: Demcon
Slide 9: COVID-19 Response: Lung Ultrasound
COVID-19 Response: Lung Ultrasound New Ultrasound Module to train physicians on COVID-19 diagnosis through lung ultrasound • Physicians can immediately diagnose and monitor patients at the point of care • Module has already been deployed globally and was received enthusiastically 9
Slide 10: COVID-19 Response: CPAP Mask Adapter
COVID-19 Response: CPAP Mask Adapter As the general trend is moving from ventilator to CPAP masks, hospitals need to have adapter components • A typical 1-2 month project was done in 1 day • Unit build time just over 1 hour • Using Figure 4 standalone printer • Printed on PRO BLK-10 material 10
Slide 11: COVID-19 Response: Nasal Swabs
COVID-19 Response: Nasal Swabs With known shortages of diagnostic tools such as nasal swabs, our customers have been looking at repurposing dental and industrial DLP system/Figure 4 printers to 3D print nasal swabs • Using dental and industrial grade resins and medical grade nylon 12 • Demonstrated
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Slide 13: COVID-19 Impact to 3D Systems
COVID-19 Impact to 3D Systems • End user demand - overall capex spend is down in the industries we serve, affecting demand for new hardware and associated software licenses • Dental market - demand has slowed for elective procedures • Supply chain disruption - facilities in China could not operate f
Slide 14: First Quarter Summary
First Quarter Summary • GAAP revenue of $134.7 million, decrease of 11% YoY ◦ Materials flat YoY • GAAP gross profit margin of 42.4% and non-GAAP gross profit margin of 43.1% ◦ Materials margin of 69% • GAAP loss of $0.17 per share and non-GAAP loss of $0.04 per share ◦ Tax benefit of $3.2M related
Slide 15: Second Quarter Focus
Second Quarter Focus • Actions taken on cost optimization ◦ Executive and Director pay cuts of 10% ◦ Temporary employee furloughs of 2 weeks on average ◦ Pushed out some R&D programs ◦ Reduced hiring significantly • Balance between near-term cost savings and being prepared when the market comes back
Slide 16: Todd Booth
Todd Booth Executive Vice President & Chief Financial Officer 16
Slide 17: GAAP Operating Results
GAAP Operating Results First Quarter Y/Y Better/ (in millions, except per share amounts) 2020 2019 (Worse) Revenue $ 134.7 $ 152.0 (11.4) % Gross Profit 57.1 65.7 (13.0) % Gross Profit Margin 42.4 % 43.2 % (80) bps SG&A 56.1 65.1 13.8 % R&D 19.2 21.9 12.1 % Operating Expenses 75.4 87.0 13.4 % % of R
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures First Quarter Y/Y Better/ (in millions, except per share amounts) 2020 2019 (Worse) Non-GAAP R&D Expense $ 19.1 $ 21.9 12.8 % Non-GAAP SG&A Expense 43.9 51.0 13.9 % Non-GAAP Operating Expenses $ 63.0 $ 72.9 13.6 % Non-GAAP Net income (loss) attributable to 3D Systems Corp
Slide 19: Revenue
Revenue Printer Revenue Materials Revenue 41.4 41.4 29.9 19.3 (0.1)% (35.5)% Q1 2019 Q1 2020 Q1 2019 Q1 2020 Healthcare Revenue On Demand Revenue Software Revenue 50.0 22.6 23.0 46.3 21.2 19.7 (12.8)% (7.3)% (7.7)% Q1 2019 Q1 2020 Q1 2019 Q1 2020 Q1 2019 Q1 2020 19
Slide 20: Gross Profit and Margin
Gross Profit and Margin • GAAP GPM was 42.4% and non-GAAP GPM was 43.1% $100 50.0% $80 47.5% $ in millions $60 45.0% $40 42.5% $20 40.0% $0 Q1 2019 Q2 2019 3Q 2019 Q4 2019 Q1 2020 GAAP Gross Profit GAAP GPM Non-GAAP GPM 20 See appendix for a reconciliation of non-GAAP operating expenses.
Slide 21: Operating Expenses
Operating Expenses • GAAP operating expenses decreased 13.4% and non-GAAP operating expenses decreased 13.6% compared to the first quarter of the prior year • Decreases in both SG&A and R&D • Continued focus on reducing cost structure $92.5 $100 $87.0 $79.2 $76.5 75.4 $72.9 $71.7 $69.3 $80 $66.4 $63
Slide 22: Balance Sheet and Cash
Balance Sheet and Cash • Ended Q1 with $112.8 million of cash and cash equivalents • Used $2.3 million of cash from operations, generated $1.2 million dollars of cash from financing activities, and paid $4.4 million for capital expenditures • As of today we have not drawn on our revolver • Focused o
Slide 23: Vyomesh Joshi (VJ)
Vyomesh Joshi (VJ) President & Chief Executive Officer 23
Slide 24: Thoughts on 2020
Thoughts on 2020 • Our business is sound and our products are relevant, but our near-term results will continue to be impacted by the COVID-19 pandemic • Remain focused on cash generation and optimizing costs • Good progress on CEO search • As a leader in additive manufacturing and healthcare applic
Slide 25: Q&A Session
Q&A Session 1-201-689-8345 25
Slide 26: Thank You
Thank You Find out more at: www.3dsystems.com 2 626 ©2019 3D Systems, Inc. | All Rights Reserved.
Slide 27: Appendix
Appendix ©2019 3D Systems, Inc. | All Rights Reserved.
Slide 28: GAAP Revenue Summary by Category
GAAP Revenue Summary by Category Sequential Y/Y Better/ Better/ (in millions) Q1 2020 Q4 2019 Q1 2019 (Worse) (Worse) Printers $ 19.3 $ 33.6 $ 29.9 (42.6) % (35.5) % Software Products 10.8 14.5 12.2 (25.5) % (11.5) % Other Products 7.4 10.9 8.9 (32.1) % (16.9) % Total Products 37.4 59.0 50.9 (36.6)
Slide 29: Non-GAAP Reconciliation - EPS
Non-GAAP Reconciliation - EPS First Quarter Non-GAAP Earnings (Loss) per Share Quarter Ended March 31, (in millions, except per share amounts) 2020 2019 GAAP Net loss attributable to 3D Systems Corporation $ (18.9) $ (24.4) Adjustments: Amortization, stock-based compensation & other (1) 10.7 12.2 Le
Slide 30: Non-GAAP Reconciliation - Revenue
Non-GAAP Reconciliation - Revenue 2020 Non-GAAP Revenue Quarter Ended (in millions) March 31 GAAP Revenue $ 134.7 Adjustments: Legal, acquisition and divestiture related — Non-GAAP Revenue $ 134.7 30 * Tables may not foot due to rounding; amounts calculated based on dollars in thousands.
Slide 31: Non-GAAP Reconciliation - GP and GPM
Non-GAAP Reconciliation - GP and GPM 2020 Non-GAAP Gross Profit & Margin Quarter Ended (in millions) March 31 GAAP Gross Profit $ 57.1 GAAP Gross Profit Margin 42.4 % Adjustments: Amortization, stock-based compensation & other 0.1 Legal, acquisition and divestiture related 0.1 Cost optimization plan
Slide 32: Non-GAAP Reconciliation - Operating Expense
Non-GAAP Reconciliation - Operating Expense 2020 Non-GAAP Operating Expenses Quarter Ended (in millions) March 31 GAAP R&D Expenses $ 19.2 GAAP SG&A Expenses 56.1 GAAP Operating Expenses 75.4 Adjustments to R&D Expenses: Cost optimization plan 0.1 Non-GAAP R&D Expenses 19.1 Adjustments to SG&A Expen
Slide 33: Non-GAAP Reconciliation - Revenue
Non-GAAP Reconciliation - Revenue Full Year 2019 Non-GAAP Revenue 2019 Quarter Ended Year Ended September December December (in millions) March 31 June 30 30 31 31 GAAP Revenue $ 152.0 $ 157.3 $ 155.3 $ 164.6 $ 629.1 Adjustments: Legal, acquisition and divestiture related (1.8) (0.9) (0.2) — (2.8) N
Slide 34: Non-GAAP Reconciliation - GP and GPM
Non-GAAP Reconciliation - GP and GPM Full Year 2019 Non-GAAP Gross Profit & Margin 2019 Quarter Ended Year Ended September December December (in millions) March 31 June 30 30 31 31 GAAP Gross Profit $ 65.7 $ 73.3 $ 67.3 $ 71.8 $ 278.0 GAAP Gross Profit Margin 43.2 % 46.6 % 43.3 % 43.6 % 44.2 % Adjus
Slide 35: Non-GAAP Reconciliation - Operating Expense
Non-GAAP Reconciliation - Operating Expense Full Year 2019 Non-GAAP Operating Expenses 2019 Quarter Ended Year Ended (in millions) March 31 June 30 September 30 December December GAAP R&D Expenses $ 21.9 $ 20.8 $ 20.9 $ 17.1 $ 80.8 GAAP SG&A Expenses 65.1 71.7 58.3 59.3 254.4 GAAP Operating Expenses
Slide 36: Thank You
Thank You Find out more at: www.3dsystems.com 3 636 ©2019 3D Systems, Inc. | All Rights Reserved.