Slide 1: Earnings Presentation Q2 2024
Earnings Presentation Q2 2024 August 2, 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: 2024 Priorities – Q2 Update
2024 Priorities – Q2 Update 3
Slide 4: 2024 Priorities – Q2 Update
2024 Priorities – Q2 Update 1. Increase number of customers using the combined offer • Customer contacts using combined offer in LTM increased over 50% YoY 2. Drive higher revenue per customer through larger orders • Revenue per customer contact increased 7% YoY 4
Slide 5: Customer Example
Customer Example 5
Slide 6: Medical innovator of SterisilStraw dental device
Medical innovator of SterisilStraw dental device quickly moved from 3D-printed and molded prototypes to production molding for higher volumes of cost-efficient parts—all with one supplier.
Slide 7: Q2 2024 Financial Overview
Q2 2024 Financial Overview 7
Slide 8: Financial Highlights | Q2 2024
Financial Highlights | Q2 2024 Revenue ($M) 2.8%1 • Revenue of $125.6 million, up 2.8% 1 YoY • YoY growth in injection molding, CNC machining, 3D printing $122.3 $125.6 • Protolabs Network generated revenue of $24.7 million, up 23% YoY in constant currencies Q2 2023 Q2 2024 Non-GAAP EPS* • Non-GAAP
Slide 9: Revenue by Service | Q2 2024 YoY
Revenue by Service | Q2 2024 YoY Injection Molding - Revenue CNC Machining - Revenue ($M) ($M) 0%* 6%* $48.8 $49.1 $48.3 $51.2 Q2 2023 Q2 2024 Q2 2023 Q2 2024 3D Printing - Revenue Sheet Metal - Revenue ($M) ($M) 1%* 0%* $21.0 $21.3 $3.9 $3.9 Q2 2023 Q2 2024 Q2 2023 Q2 2024 9 *YoY change reflected i
Slide 10: Financial Results | Q2 2024
Financial Results | Q2 2024 Q2 2024 Q1 2024 QoQ Change Q2 2023 YoY Change Revenue $125.6 $127.9 (1.8)% $122.3 2.8% Non-GAAP 45.7% 45.6% 10 bps 44.1% 160 bps Gross Margin* Non-GAAP 8.9% 9.5% (60) bps 8.9% 0 bps Operating Margin* Non-GAAP $0.38 $0.40 (7.0)% $0.33 13.6% Earnings Per Share* *Non-GAAP: a
Slide 11: Cash Flow and Balance Sheet | Q2 2024
Cash Flow and Balance Sheet | Q2 2024 $M Q2 2024 Q1 2024 Q2 2023 Operating Cash Flow $14.4 $21.3 $9.3 Capital Expenditures $4.2 $2.6 $3.4 Share Repurchases $10.9 $16.0 $8.9 Cash and Investments* $112.9 $112.9 $102.8 Debt* $0 $0 $0 11 *Balance sheet items as of the end of the period.
Slide 12: Q3 2024 Financial Outlook
Q3 2024 Financial Outlook 12
Slide 13: Outlook | Q3 2024
Outlook | Q3 2024 Q3 2024 Revenue Q3 2024 Non-GAAP* EPS Revenue $117M - $125M Non-GAAP* EPS $0.29 - $0.37 Outlook Commentary • Expect foreign currency to have a $200k favorable impact on Q3 2024 revenue • Expect Q3 2024 Non-GAAP* effective tax rate between 22% and 23% • Expect Q3 2024 diluted shares
Slide 14: Thank You!
2 > ~< c © << — pc tC @)PROTOLABS + xa
Slide 15: Appendix
Appendix 15
Slide 16: Q2 2024 Detailed Financial Information
Q2 2024 Detailed Financial Information 16
Slide 17: YoY GAAP to Non-GAAP P&L | Q2 2024
YoY GAAP to Non-GAAP P&L | Q2 2024 Three Months Ended June 30, 2024 Three Months Ended June 30, 2023 $ in thousands GAAP Adjustments Non-GAAP* GAAP Adjustments Non-GAAP* Revenue $ 125,631 — $ 125,631 $ 122,265 — $ 122,265 Cost of revenue 69,085 (810) 68,275 69,142 (803) 68,339 Gross profit $ 56,546
Slide 18: QoQ GAAP to Non-GAAP P&L | Q2 2024
QoQ GAAP to Non-GAAP P&L | Q2 2024 Three Months Ended June 30, 2024 Three Months Ended March 31, 2024 $ in thousands GAAP Adjustments Non-GAAP* GAAP Adjustments Non-GAAP* Revenue $ 125,631 — $ 125,631 $ 127,890 — $ 127,890 Cost of revenue 69,085 (810) 68,275 70,423 (801) 69,622 Gross profit $ 56,546
Slide 19: Revenue by Region | Q2 2024
Revenue by Region | Q2 2024 Revenue % by Region YoY Change YoY Change Q2 2024 Q2 2024 Q2 2023 Overall Constant Fx* 22% Americas $98.5 $96.3 2% 2% Europe $27.1 $25.9 4% 5% Total $125.6 $122.3 3% 3% 78% Americas Europe *YoY change reflected in constant currencies; see reconciliation in appendix 19
Slide 20: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations 20
Slide 21: GAAP to NON-GAAP Reconciliation | Revenue by Region
GAAP to NON-GAAP Reconciliation | Revenue by Region 21
Slide 22: GAAP to NON-GAAP Reconciliation | Revenue by Service
GAAP to NON-GAAP Reconciliation | Revenue by Service 22
Slide 23: GAAP to NON-GAAP Reconciliation | Gross Margin
GAAP to NON-GAAP Reconciliation | Gross Margin 23
Slide 24: GAAP to NON-GAAP Reconciliation | Operating Margin
GAAP to NON-GAAP Reconciliation | Operating Margin 24
Slide 25: GAAP to NON-GAAP Reconciliation | EBITDA
GAAP to NON-GAAP Reconciliation | EBITDA 25
Slide 26: GAAP to NON-GAAP Reconciliation | EPS
GAAP to NON-GAAP Reconciliation | EPS 26
Slide 27: GAAP to NON-GAAP Reconciliation | Q3 2024 Outlook
GAAP to NON-GAAP Reconciliation | Q3 2024 Outlook Proto Labs, Inc. Reconciliation of GAAP to Non-GAAP Guidance (In thousands, except share and per share amounts) (Unaudited) Q3 2024 Outlook Low High GAAP diluted earnings per share $ 0.10 $ 0.18 Add back: Stock-based compensation expense 0.16 0.16 Am