Proto Labs, Inc. · NYSE:PRLB
Proto Labs — Q1 2021 Earnings Presentation
26 slides from Proto Labs's earnings presentation, May 6, 2021
Slide 1: Earnings Presentation Q1 2021
Earnings Presentation Q1 2021 ▸ May 6, 2021 1
Slide 2: Safe Harbor
Safe Harbor ▸ 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 our actual results, levels of activit
Slide 3: Q1 2021 Overview
Q1 2021 Overview @Proto.ass
Slide 4: Financial Highlights YoY
Financial Highlights | Q1 2021 YoY Revenue ($M) 0.9% • Revenue of $116.1 million, up 0.9% YoY 22,605 unique product developers served $115.1 $116.1 3D Hubs contributed $5.8 million of revenue in Q1 Q1 2020 Q1 2021 Non-GAAP EPS* (34.3)% • Non-GAAP EPS of $0.40, down $(0.21) YoY Increased expens
Slide 5: Financial Highlights QoQ
Financial Highlights | Q1 2021 QoQ Revenue ($M) 10.4% • Revenue of $116.1 million, up 10.4% QoQ Follows normal seasonality patterns $105.2 $116.1 3D Hubs contributed $5.8 million of revenue in Q1 Q4 2020 Q1 2021 Non-GAAP EPS* (20.3)% • Non-GAAP EPS of $0.40, down $(0.10) QoQ Increased expenses
Slide 6: Revenue by Service YoY
Revenue by Service | Q1 2021 YoY Injection Molding - Revenue CNC Machining - Revenue ($M) 3% ($M) (3)% $54.8 $56.4 $37.9 $36.7 Q1 2020 Q1 2021 Q1 2020 Q1 2021 3D Printing - Revenue Sheet Metal - Revenue ($M) ($M) 8% (8)% $15.9 $17.2 $5.6 $5.2 Q1 2020 Q1 2021 Q1 2020 Q1 2021 6
Slide 7: Revenue by Service QoQ
Revenue by Service | Q1 2021 QoQ Injection Molding - Revenue CNC Machining - Revenue ($M) 8% ($M) 15% $52.1 $56.4 $31.8 $36.7 Q4 2020 Q1 2021 Q4 2020 Q1 2021 3D Printing - Revenue Sheet Metal - Revenue ($M) ($M) 8% 15% $16.0 $17.2 $4.5 $5.2 Q4 2020 Q1 2021 Q4 2020 Q1 2021 7
Slide 8: Revenue by Region
Revenue by Region | Q1 2021 YoY Change YoY Change Revenue % by Region $M Q1 21 Q1 20 Overall Organic, Q1 2021 Constant Fx* 3.1% Americas $91.1 $90.1 1% (2)% 18.5% Europe $21.4 $20.8 3% (17)% Japan $3.6 $4.2 (15)% (17)% 78.4% TOTAL $116.1 $115.1 1% (6)% Americas Europe Japan *YoY change reflected in
Slide 9: Update on 2021 Priorities and ESG Initiatives
Update on 2021 Priorities and ESG Initiatives 9
Slide 10: Update on 2021 Priorities
Update on 2021 Priorities | Q1 2021 • Achieve and maintain a best-in- 2.0 class digital manufacturing customer experience • Expand our offer to provide customers the broadest solution for custom parts • Safety and wellness of employees is top priority • Further invest in employees • Implemented a cu
Slide 11: Protolabs 2.0 | May 2021 Update
Protolabs 2.0 | May 2021 Update “ Recent enhancements have made the platform the best in the sector. The ability to group, compare, and manage several files and projects at once is one thing that makes it better than every other website for rapid machining, molding, and additive manufacturing. Also,
Slide 12: Acquisition of 3D Hubs (January 22, 2021)
Acquisition of 3D Hubs (January 22, 2021) + • Rapid prototyping • Broad services offer • Best-in-class lead times w/in our o Higher tolerances More complex parts current envelope o o Additional technologies • Focus on reliability & quality o More secondary operations • Expert technical consultation
Slide 13: Environment, Social, and Governance
Environment, Social, and Governance ▸ 2021 NAM Sustainability Award for continued efforts Implemented solar power at Plymouth, MN injection molding facility Environment ▸ Implementing actions to reduce Protolabs’ carbon footprint Reducing energy and power outputs through a number of energy effic
Slide 14: Compelling Investment Thesis
Preview of May 2021 Investor Day Compelling Investment Thesis Large and Recently upgraded growing market eCommerce platform Strong and experienced Diverse and expanding management team customer set Creator of digital Highly attractive manufacturing industry financial profile with world’s broadest of
Slide 15: Q1 2021 Detailed Financial Information
Q1 2021 Detailed Financial Information 15
Slide 16: Financial Results
Financial Results | Q1 2021 $M, Except QoQ YoY per share amounts Q1 21 Q4 20 Change Q1 20 Change Revenue $116.1 $105.2 10.4% $115.1 0.9% Non-GAAP 51.0% 48.5% (250) bps 51.2% (270) bps Gross Margin* Non-GAAP 12.0% 15.4% (340) bps 17.9% (590) bps Operating Margin* Non-GAAP $0.50 $0.40 (20.3)% $0.61 (3
Slide 17: QoQ GAAP to Non-GAAP P&L
QoQ GAAP to Non-GAAP P&L | Q1 2021 Three Months Ended Mar. 31, 2021 Three Months Ended Dec. 31, 2020 $ in thousands GAAP Adjustments Non-GAAP* GAAP Adjustments Non-GAAP* Revenue $116,126 - $116,126 $105,208 - $105,208 Cost of Revenue 60,796 (977) 58,819 52,580 (1,032) 51,548 Gross Profit $55,330 $97
Slide 18: YoY GAAP to Non-GAAP P&L
YoY GAAP to Non-GAAP P&L | Q1 2021 Three Months Ended Mar. 31, 2021 Three Months Ended Mar. 31, 2020 $ in thousands GAAP Adjustments Non-GAAP* GAAP Adjustments Non-GAAP* Revenue $116,126 - $116,126 $115,108 - $115,108 Cost of Revenue 60,796 (977) 58,819 57,008 (863) 56,145 Gross Profit $55,330 $977
Slide 19: Cash Flow and Balance Sheet
Cash Flow and Balance Sheet | Q1 2021 $M Q1 21 Q4 20 Q1 20 FY 18 Operating Cash Flow $6.4 $24.6 $22.4 Capital Expenditures $6.5 $6.5 $13.4 Share Repurchases $0 $0 $11.2 Cash and Investments* $93.1 $221.0 $167.2 Debt* $0 $0 $0 *Balance Sheet items as of the end of the period. 19
Slide 20: Q2 2021 Financial Outlook
Q2 2021 Financial Outlook @Proto.ass
Slide 21: Q2 2021 Outlook
Q2 2021 | Outlook Q2 2021 Revenue Revenue $117M - $127M % Growth YoY 10% - 19% % Growth QoQ 1% - 9% Q2 2021 Outlook Commentary* ▸ Expect foreign currency to have a ~$2 million positive impact on Q2 revenue ▸ Estimated Non-GAAP gross margin of ~48% +/- 50 bps ▸ Projected Non-GAAP operating expenses o
Slide 22: Thank You
Thank You 22
Slide 23: Appendix
Appendix 23
Slide 24: GAAP to Non-GAAP Reconciliation | Revenue
GAAP to NON-GAAP Reconciliation | Revenue $ in thousands Three Months Ended Three Months Ended March 31, 2021 March 31, 2020 Foreign 3D Hubs % Change 1 2 3 4 GAAP Currency Acquisition Non-GAAP GAAP % Change Organic Revenues United States $ 91,053 $ - $ (3,157) $ 87,896 $ 90,076 1.1 % (2.4) % Europe
Slide 25: GAAP to Non-GAAP Reconciliation | EBITDA
GAAP to NON-GAAP Reconciliation | EBITDA $ in thousands Three Months Ended March 31, 2021 2020 GAAP net income $ 3,712 $ 13,984 Amortization expense 1,543 754 Depreciation expense 8,516 7,204 Interest income, net (87) (560) Tax expense 236 3,895 EBITDA 13,920 25,277 Add back: Stock-based compensatio
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 March 31, 2021 2020 Non-GAAP net income, adjusted for stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency and transaction costs GAAP net income $