Slide 1: Third Quarter 2021 Financial Results
November 9, 2021 Third Quarter 2021 Financial Results ©2021 3D Systems, Inc. | All Rights Reserved.
Slide 2: Welcome and Participants
Welcome and Participants Dr. Jeffrey Graves President and Chief Executive Officer Jagtar Narula Executive VP and Chief Financial Officer Andrew Johnson Executive VP and Chief Legal Officer John Nypaver, Jr. To participate via phone, VP, Treasurer and Investor Relations please dial: 1-201-689-8345 2
Slide 3: Forward Looking Statements
Forward Looking Statements Certain statements made in this release 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 involve known and unknown risks, uncertainti
Slide 4: Dr. Jeffrey Graves
Dr. Jeffrey Graves President & Chief Executive Officer 4 ©2021 3D Systems, Inc. | All Rights Reserved.
Slide 5: Oqton AI-Powered Manufacturing Operating System
Oqton AI-Powered Manufacturing Operating System ©2021 3D Systems, Inc. | All Rights Reserved.
Slide 6: 3D Systems: Company Rebirth for an Even Stronger Future
3D Systems: Company Rebirth for an Even Stronger Future 1986 – 2020 JULY 2020 2 0 2 1 AN D B EY O N D Industrial Solutions 4 Non-Core Businesses (Exited) Healthcare Solutions Group Printers Focus High Value Growth Bioprinting (Laboratories) Materials Markets with Significant Barriers to Entry Regene
Slide 7: Healthcare Solutions
Healthcare Solutions Unrivaled capabilities Best foundation for growth into new frontiers Patient-Specific & Stock Implants (since 2010) Patient-Specific Instruments/Guides (since 2007) Surgical Planning (since 2005) Hardware Anatomical Models (since 1994) Software Materials Enabling technologies fu
Slide 8: Healthcare Solutions
Healthcare Solutions Broadest range of FDA-cleared capabilities for anatomic modeling and surgical planning Development and manufacturing services that support 100+ products from head to toe ©2021 3D Systems, Inc. | All Rights Reserved.
Slide 9: Recognized Leaders in Biomaterials and Bioprinting
Recognized Leaders in Biomaterials and Bioprinting 9 ©2021 3D Systems, Inc. | All Rights Reserved.
Slide 10: Volumetric – Creating a World-Class Regenerative Medicine Team
Volumetric – Creating a World-Class Regenerative Medicine Team WHAT 3D SYSTEMS DOES TODAY + WHAT VOLUMETRIC BRINGS Organ printing Exceptional tissue 3D Systems and United engineering and Therapeutics biological expertise Non-organ applications Accelerated for human body development and 3D Sy
Slide 11: Jagtar Narula
Jagtar Narula Executive VP & Chief Financial Officer 11 ©2021 3D Systems, Inc. | All Rights Reserved.
Slide 12: Q3 Summary
Q3 Summary QUARTER-ENDED SEPT 30, (IN MILLIONS, EXCEPT PER SHARE AMOUNTS) 2021 2020 2019 HIGHLIGHTS REVENUE $156.1 $136.2 $156.2 Q3 Revenue increased OPERATING LOSS ($17.2) ($67.6) ($11.9) 35.9% and 21.2% excluding NET INCOME (LOSS) $292.7 ($72.9) ($16.8) divested business vs. Q3:20 INCOME (LOSS) PE
Slide 13: Revenue by Market
Revenue by Market $ in millions Healthcare Revenue Q3 QoQ Industrial Revenue Q3 QoQ $82.8 $79.7 +0.1% $79.7 $76.4 (7.8%) Q2 2021 Q3 2021 Q2 2021 Q3 2021 Excluding divestitures, Healthcare Excluding divestitures, Industrial revenue is down 1.4% QoQ revenue is up 2.1% QoQ 13 ©2021 3D Systems, Inc. | A
Slide 14: Gross Profit Margin
Gross Profit Margin • Gross margin declined slightly due to divested businesses • Excluding divestitures, GPM increased 80 bp year-over-year • Expect full-year non-GAAP GPM in range of 41% to 43% 50% 50% GAAP GPM Non-GAAP GPM 45% 44% 45% 44% 43% 43% 43% 42% 42% 42% 41% 42% 40% 40% 35% 35% 30% 30% Q3
Slide 15: Operating Expenses
Operating Expenses Non-GAAP operating expenses decreased 8.0% compared to the prior year and decreased 2.0% compared to second quarter 2021 reflecting disciplined spending efforts while focusing on growth initiatives GAAP Non-GAAP $126.2 $120 $58.8 $58.0 $60 $55.2 $54.1 $51.2 $100 $81.5 $ in million
Slide 16: Adjusted EBITDA Margin
Adjusted EBITDA Margin Defined as non-GAAP Operating Income plus Depreciation divided by Revenue 15.0% 13.6% 13.3% 12.4% 10.5% 10.0% 5.3% 5.0% 0.0% -5.0% Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 See appendix for a reconciliation of Non-GAAP Operating Income and Adjusted EBITDA. 16 ©2021 3D Systems, I
Slide 17: Strong Balance Sheet and Cash Generation
Strong Balance Sheet and Cash Generation • Generated $20.7 million of cash from operations, the fourth straight quarter of positive cash from operations • $502.8 million of cash and cash equivalents • Upon completion of our announced acquisitions, we expect to have approximately $370 million dollars
Slide 18: Investor Day Update
INVESTOR DAY UPDATE ©2021 3D Systems, Inc. | All Rights Reserved. ©2021 3D Systems, Inc. | All Rights Reserved.
Slide 19: Dr. Jeffrey Graves
Dr. Jeffrey Graves President & Chief Executive Officer 19 ©2021 3D Systems, Inc. | All Rights Reserved.
Slide 20: Transformed into a Differentiated Company in the AM Industry
Transformed into a Differentiated Company in the AM Industry • Adding value for investors through a combination of growth and profitability, a financial profile that distinguishes us in the industry • Deeply integrated with specific markets and customers vs being just a “vendor” • Attracting talente
Slide 21: Q&A Session
Q&A Session 1-201-689-8345 21 ©2021 3D Systems, Inc. | All Rights Reserved.
Slide 22: Thank You
Thank You Find out more at: www.3dsystems.com 22 ©2021 3D Systems, Inc. | All Rights Reserved.
Slide 23: Appendix
Appendix ©2021 3D Systems, Inc. | All Rights Reserved.
Slide 24: Presentation of Information
Presentation of Information 3D Systems reports is financial results in accordance with GAAP. To facilitate a better understanding of the impact that strategic acquisitions, non-recurring charges and certain non-cash expenses had on its financial results, management reviews certain non-GAAP measures,
Slide 25: Non-GAAP Reconciliation - Operating Income (Loss) (Unaudited)
Non-GAAP Reconciliation - Operating Income (Loss) (Unaudited) Third Quarter and Nine-Month Non-GAAP Operating Income (Loss) Quarter Ended September 30, Nine Months Ended September 30, (in millions, except per share amounts) 2021 2020 2021 2020 GAAP Operating income (loss) $ (17.2) $ (67.6) $ (29.2)
Slide 26: Non-GAAP Reconciliation - Net Income (Loss) (Unaudited)
Non-GAAP Reconciliation - Net Income (Loss) (Unaudited) Third Quarter and Nine-Month Non-GAAP Net Income (Loss) Quarter Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 GAAP Net income (loss) $ 292.7 $ (72.9) $ 328.3 $ (129.8) Adjustments: Amortization, stock-based compensatio
Slide 27: Non-GAAP Reconciliation – EPS (Unaudited)
Non-GAAP Reconciliation – EPS (Unaudited) Third Quarter and Nine-Month Net Income (Loss) per Share Quarter Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 GAAP Net income (loss) per share - basic $ 2.39 $ (0.61) $ 2.69 $ (1.12) Adjustments: Amortization, stock-based compensat
Slide 28: Non-GAAP Reconciliation - GP and GPM (Unaudited)
Non-GAAP Reconciliation - GP and GPM (Unaudited) Quarterly 2020 and 2021 Non-GAAP Gross Profit & Margin 2021 2020 Quarter Ended Quarter Ended (in millions) March 31 June 30 September 30 March 31 June 30 September 30 December 31 GAAP Gross Profit $ 64.2 $ 69.0 $ 64.3 $ 57.1 $ 35.2 $ 58.6 $ 72.5 GAAP
Slide 29: Non-GAAP Reconciliation - Operating Expense (Unaudited)
Non-GAAP Reconciliation - Operating Expense (Unaudited) Quarterly 2020 and 2021 Non-GAAP Operating Expenses 2021 2020 Quarter Ended Quarter Ended Full (in millions) Mar 31 Jun 30 Sep 30 Mar 31 Jun 30 Sep 30 Dec 31 Year GAAP SG&A Expenses $ 49.6 $ 61.5 $ 65.7 $ 56.1 $ 52.0 $ 59.1 $ 52.7 $ 219.9 GAAP
Slide 30: Revenue Adjusted for Divestitures (Unaudited)
Revenue Adjusted for Divestitures (Unaudited) Quarterly 2019 and 2020 2019 2020 Quarter Ended Quarter Ended March 31 June 30 September 30 December 31 March 31 June 30 September 30 December 31 Revenue: Healthcare $ 56.7 $ 63.2 $ 61.4 $ 63.3 $ 52.3 $ 49.1 $ 59.5 $ 85.5 Industrial 96.6 95.4 94.9 104.9
Slide 31: Revenue Adjusted for Divestitures (Unaudited)
Revenue Adjusted for Divestitures (Unaudited) Quarterly 2021 2021 Quarter Ended March 31 June 30 September 30 Revenue: Healthcare $ 72.5 $ 82.8 $ 76.4 Industrial 73.6 79.7 79.7 Total Revenue 146.1 162.6 156.1 Revenue from Divestitures: Healthcare 11.0 13.1 7.7 Industrial 13.8 13.1 11.8 Total Revenue