Proto Labs, Inc. · NYSE:PRLB
Proto Labs — Q3 2022 Earnings Presentation
27 slides from Proto Labs's earnings presentation, Nov 4, 2022
Slide 1: Earnings Presentation Q3 2022
Earnings Presentation Q3 2022 ▸ November 4, 2022 1
Slide 2: Forward-Looking Statements and Non-GAAP Measures
Forward-Looking Statements and Non-GAAP Measures ▸ 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
Slide 3: Q3 2022 Highlights
Q3 2022 Highlights @Prototass
Slide 4: Q3 2022 Business Highlights
Q3 2022 Business Highlights Oleg Ryaboy Named Chief Technology Officer ▸ Previously CTO at Digital River, a global e-commerce platform and software-as-a-service company that provides online storefronts ▸ Oleg brings a wealth of knowledge and experience; now leads our technology teams around the worl
Slide 5: Update on 2022 Strategic Priorities
Update on 2022 Strategic Priorities 1 Accelerate our Growth 3 Be the Digital Leader at Scale ▸Accelerate injection molding growth ▸Continue to launch enhancements to digital manufacturing technology to produce more ▸Expand the integrated offer complex parts and increase automation 2 Delight our Cust
Slide 6: Q3 2022 Overview
Q3 2022 Overview @Prototass
Slide 7: Financial Highlights | Q3 2022 YoY
Financial Highlights | Q3 2022 YoY Revenue ($M) (2.9)% • Revenue of $121.7 million, down 2.9% YoY YoY growth of 1.6% in constant currencies and excluding Japan $125.3 $121.7 Working to drive growth in injection molding Strong growth in CNC machining, 3D printing, and sheet metal Hubs contrib
Slide 8: Financial Highlights | Q3 2022 QoQ
Financial Highlights | Q3 2022 QoQ Revenue ($M) (4.1)% • Revenue of $121.7 million, down 4.1% QoQ In guidance range $126.9 $121.7 23,816 unique product developers served Strong growth in CNC machining, 3D printing, and sheet metal Q2 2022 Q3 2022 Non-GAAP EPS* • Non-GAAP EPS of $0.40, down $0.
Slide 9: Revenue by Service | Q3 2022 YoY
Revenue by Service | Q3 2022 YoY Injection Molding - Revenue CNC Machining - Revenue ($M) ($M) (12)%* 12%* $57.7 $48.9 $47.5 $43.7 Q3 2021 Q3 2022 Q3 2021 Q3 2022 3D Printing - Revenue Sheet Metal - Revenue ($M) ($M) 11%* 8%* $18.6 $19.8 $4.9 $5.2 Q3 2021 Q3 2022 Q3 2021 Q3 2022 *YoY change reflecte
Slide 10: Revenue by Service | Q3 2022 QoQ
Revenue by Service | Q3 2022 QoQ Injection Molding - Revenue CNC Machining - Revenue ($M) ($M) (8)% (2)% $53.4 $48.9 $48.2 $47.5 Q2 2022 Q3 2022 Q2 2022 Q3 2022 3D Printing - Revenue Sheet Metal - Revenue ($M) ($M) (1)% 1% $20.0 $19.8 $5.2 $5.2 Q2 2022 Q3 2022 Q2 2022 Q3 2022 10
Slide 11: Revenue by Region | Q3 2022
Revenue by Region | Q3 2022 YoY Change YoY Change YoY Change Revenue % by Region $M Q3 22 Q3 21 Overall Constant Fx* Constant Fx* Q3 2022 Excl. Japan Americas $99.0 $100.1 (1)% (1)% 1% 18% Europe $21.5 $22.2 (3)% 14% Japan $1.3 $3.1 (58)% (48)% 81% TOTAL $121.7 $125.3 (3)% 0% 2% Americas Europe Japa
Slide 12: Q3 2022 Detailed Financial Information
Q3 2022 Detailed Financial Information 12
Slide 13: Financial Results | Q3 2022
Financial Results | Q3 2022 $M, Except QoQ YoY per share amounts Q3 22 Q2 22 Change Q3 21 Change Revenue $121.7 $126.9 (4.1)% $125.3 (2.9)% Non-GAAP 44.8% 45.9% (110) bps 44.9% (10) bps Gross Margin* Non-GAAP Operating Margin* 11.2% 12.6% (130) bps 10.2% 100 bps Non-GAAP $0.40 $0.46 (14.9)% $0.35 13
Slide 14: YoY GAAP to Non-GAAP P&L | Q3 2022
YoY GAAP to Non-GAAP P&L | Q3 2022 Three Months Ended Sept. 30, 2022 Three Months Ended Sept. 30, 2021 $ in thousands GAAP Adjustments Non-GAAP* GAAP Adjustments Non-GAAP* Revenue $121,721 - $121,721 $125,342 - $125,342 Cost of Revenue 68,089 (902) 67,187 70,018 (986) 69,032 Gross Profit $53,632 $90
Slide 15: QoQ GAAP to Non-GAAP P&L | Q3 2022
QoQ GAAP to Non-GAAP P&L | Q3 2022 Three Months Ended Sept. 30, 2022 Three Months Ended Jun. 30, 2022 $ in thousands GAAP Adjustments Non-GAAP* GAAP Adjustments Non-GAAP* Revenue $121,721 - $121,721 $126,902 - $126,902 Cost of Revenue 68,089 (902) 67,187 69,480 (870) 68,610 Gross Profit $53,632 $902
Slide 16: Cash Flow and Balance Sheet | Q3 2022
Cash Flow and Balance Sheet | Q3 2022 $M Q3 22 Q2 22 Q3 21 FY 18 Operating Cash Flow $20.5 $13.3 $11.5 Capital Expenditures $10.4 $3.0 $4.4 Share Repurchases $7.8 $5.2 $11.8 Cash and Investments* $113.9 $110.1 $83.9 Debt* $0 $0 $0 *Balance Sheet items as of the end of the period. 16
Slide 17: Q4 2022 Financial Outlook
Q4 2022 Financial Outlook @Prototass
Slide 18: Q4 2022 Outlook
Q4 2022 | Outlook Q4 2022 Revenue Q4 2022 Non-GAAP* EPS Revenue $107M - $115M Non-GAAP EPS $0.18 - $0.26 % Growth YoY (constant Fx ex. Japan) (7)% - (1)% % Growth YoY (35)% - (55)% Q4 2022 Outlook Commentary* ▸ Expect foreign currency to have a ~$4.2 million unfavorable impact on Q4 2022 revenue ▸ J
Slide 19: Thank You
Thank You 19
Slide 20: Appendix
Appendix 20
Slide 21: GAAP to NON-GAAP Reconciliation | Revenue by Region
GAAP to NON-GAAP Reconciliation | Revenue by Region $ in thousands Three Months Ended Three Months Ended Septem ber 30, 2022 Septem ber 30, 2021 % Foreign Hubs % Change 1 3 4 GAAP Currency Acquisition Non-GAAP GAAP Change Organic Revenues United States $ 98,970 $ - $ - $ 98,970 $ 100,127 (1.2) % (1.
Slide 22: GAAP to NON-GAAP Reconciliation | Revenue by Service
GAAP to NON-GAAP Reconciliation | Revenue by Service $ in thousands Three Months Ended Three Months Ended Septem ber 30, 2022 Septem ber 30, 2021 % Foreign Hubs % Change 1 3 4 GAAP Currency Acquisition Non-GAAP GAAP Change Organic Revenues Injection Molding $ 48,940 $ 1,677 $ - $ 50,617 $ 57,685 (15
Slide 23: 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 Nine Months Ended Three Months Ended Septem ber 30, Septem ber 30, June 30, 2022 2021 2022 2021 2022 2021 Revenue $ 121,721 $ 125,342 $ 372,79
Slide 24: 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 Nine Months Ended Septem ber 30, Septem ber 30, 2022 2021 2022 2021 Revenue $ 121,721 $ 125,342 $ 372,791 $ 364,516 Income from operat
Slide 25: GAAP to NON-GAAP Reconciliation | EBITDA
GAAP to NON-GAAP Reconciliation | EBITDA $ in thousands Three Months Ended Septem ber 30, 2022 2021 Revenue $ 121,721 $ 125,342 GAAP net income 3,951 4,835 GAAP net income margin 3.2% 3.9% Add back: Amortization expense $ 1,510 $ 1,568 Depreciation expense 8,197 8,536 Interest income, net (265) (55)
Slide 26: GAAP to NON-GAAP Reconciliation | EPS
GAAP to NON-GAAP Reconciliation | EPS $ in thousands, except share and per share amounts Three Months Ended Septem ber 30, 2022 2021 Non-GAAP net income, adjusted for stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency, costs related to Japan closure ac
Slide 27: GAAP to NON-GAAP Reconciliation | Q4 2022 Outlook
GAAP to NON-GAAP Reconciliation | Q4 2022 Outlook Proto Labs, Inc. Reconciliation of GAAP to Non-GAAP Guidance (In thousands, except share and per share amounts) (Unaudited) Q4 2022 Guidance Low High GAAP diluted earnings per share $ 0.01 $ 0.09 Add back: Stock-based compensation expense 0.12 0.12 A