Proto Labs, Inc. · NYSE:PRLB
Proto Labs — Q4 2024 Earnings Presentation
31 slides from Proto Labs's earnings presentation, Feb 7, 2025
Slide 1: Earnings Presentation Q4 & FY 2024
Earnings Presentation Q4 & FY 2024 February 7, 2025
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 Highlights / 2025 Plan
2024 Highlights / 2025 Plan 3
Slide 4: 2024 Financial Highlights
2024 Financial Highlights $501 million in revenue $78 million in cash flow 45% Non-GAAP gross margin from operations • Factory GM% up 90 bps YoY $60 million returned to • Network GM% up 230 bps YoY shareholders via repurchases (88% of free cash flow) 16% Adjusted EBITDA margin 4
Slide 5: 2024 Accomplishments – Strategic Priorities
2024 Accomplishments – Strategic Priorities 1. Increase number of customers using the combined offer • Customer contacts using combined offer in LTM up ~50% YoY 2. Drive higher revenue per customer through larger orders • In FY 2024, revenue per customer contact grew 3% YoY 5
Slide 6: 2025 Marketing Campaign
2025 Marketing Campaign Launched in January 2025 Designed to drive awareness of Protolabs’ expanded offering and ability to work with customers across the entire product lifecycle Our speed, quality, cost-efficiency, and deep manufacturing expertise help our clients win in production Our dig
Slide 7: Plan for Growth in 2025
Plan for Growth in 2025 1. Realignment: benefit from new structure in first full year US & Europe GTM teams to ensure best possible customer experience New global operations organization to bring full global manufacturing capabilities to every customer 2. Production: serve more customer producti
Slide 8: Q4 2024 Financial Overview
Q4 2024 Financial Overview 8
Slide 9: Financial Summary | Q4 2024
Financial Summary | Q4 2024 Revenue ($M) (3.1)%1 • Revenue of $121.8 million, down 3.1% 1 YoY • Revenue fulfilled through the Protolabs Network was $125.0 $121.8 $26.5 million, up 17.7% YoY in constant currencies Q4 2023 Q4 2024 Non-GAAP EPS* • Non-GAAP EPS of $0.38, down $0.08 YoY (16.7)% • YoY dec
Slide 10: Revenue by Service | Q4 2024 YoY
Revenue by Service | Q4 2024 YoY Injection Molding - Revenue CNC Machining - Revenue ($M) ($M) (12)%* 7%* $51.5 $45.6 $48.9 $52.4 Q4 2023 Q4 2024 Q4 2023 Q4 2024 3D Printing - Revenue Sheet Metal - Revenue ($M) ($M) (5)%* 0%* $20.3 $19.5 $4.1 $4.0 Q4 2023 Q4 2024 Q4 2023 Q4 2024 10 *YoY change refle
Slide 11: Financial Results | Q4 2024
Financial Results | Q4 2024 Q4 2024 Q3 2024 QoQ Change Q4 2023 YoY Change Revenue $121.8 $125.6 (3.1)% $125.0 (2.6)% Non-GAAP 43.4% 46.2% (280) bps 45.3% (190) bps Gross Margin* Non-GAAP 7.6% 10.9% (330) bps 11.2% (360) bps Operating Margin* Non-GAAP $0.38 $0.47 (19.4)% $0.46 (16.7)% Earnings Per Sh
Slide 12: Cash Flow and Balance Sheet | Q4 2024
Cash Flow and Balance Sheet | Q4 2024 $M Q4 2024 Q3 2024 Q4 2023 Operating Cash Flow $17.3 $24.8 $17.2 Capital Expenditures $0.8 $1.6 $18.2 Share Repurchases $14.3 $19.0 $4.9 Cash and Investments* $120.9 $117.6 $110.8 Debt* $0 $0 $0 12 *Balance sheet items as of the end of the period.
Slide 13: FY 2024 Financial Overview
FY 2024 Financial Overview 13
Slide 14: Financial Results | FY 2024
Financial Results | FY 2024 FY 2024 FY 2023 YoY Change Revenue $500.9 $503.9 (0.6)% Non-GAAP 45.2% 44.7% 50 bps Gross Margin* Non-GAAP 9.2% 10.0% (80) bps Operating Margin* Non-GAAP $1.63 $1.59 2.9% Earnings Per Share* *Non-GAAP: adjusted for stock-based compensation, intangible amortization, costs
Slide 15: Cash Flow and Balance Sheet | FY 2024
Cash Flow and Balance Sheet | FY 2024 $M FY 2024 FY 2023 Operating Cash Flow $77.8 $73.3 Capital Expenditures $9.2 $28.1 Share Repurchases $60.3 $44.0 Cash and Investments* $120.9 $110.8 Debt* $0 $0 15 *Balance sheet items as of the end of the period.
Slide 16: Q1 2025 Financial Outlook
Q1 2025 Financial Outlook 16
Slide 17: Outlook | Q1 2025
Outlook | Q1 2025 Q1 2025 Revenue Q1 2025 Non-GAAP* EPS Revenue $120M - $128M Non-GAAP* EPS $0.26 - $0.34 Outlook Commentary • Expect foreign currency to have an approximately $0.8M unfavorable impact on Q1 2025 revenue • Expect Q1 2025 Non-GAAP* effective tax rate of 27% +/- 50 bps • Expect Q1 2025
Slide 18: Thank You!
Thank You!
Slide 19: Appendix
Appendix 19
Slide 20: Q4 & FY 2024 Detailed Financial Information
Q4 & FY 2024 Detailed Financial Information 20
Slide 21: YoY GAAP to Non-GAAP P&L | Q4 2024
YoY GAAP to Non-GAAP P&L | Q4 2024 Three Months Ended December 31, 2024 Three Months Ended December 31, 2023 $ in thousands GAAP Adjustments Non-GAAP* GAAP Adjustments Non-GAAP* Revenue $ 121,750 — $ 121,750 $ 125,048 — $ 125,048 Cost of revenue 69,793 (876) 68,917 69,236 (794) 68,442 Gross profit $
Slide 22: QoQ GAAP to Non-GAAP P&L | Q4 2024
QoQ GAAP to Non-GAAP P&L | Q4 2024 Three Months Ended December 31, 2024 Three Months Ended September 30, 2024 $ in thousands GAAP Adjustments Non-GAAP* GAAP Adjustments Non-GAAP* Revenue $ 121,750 — $ 121,750 $ 125,619 — $ 125,619 Cost of revenue 69,793 (876) 68,917 68,389 (817) 67,572 Gross profit
Slide 23: YoY GAAP to Non-GAAP P&L | FY 2024
YoY GAAP to Non-GAAP P&L | FY 2024 Twelve Months Ended December 31, 2024 Twelve Months Ended December 31, 2023 $ in thousands GAAP Adjustments Non-GAAP* GAAP Adjustments Non-GAAP* Revenue $ 500,890 — $ 500,890 $ 503,877 — $ 503,877 Cost of revenue 277,690 (3,304) 274,386 281,884 (3,210) 278,674 Gros
Slide 24: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations 24
Slide 25: GAAP to Non-GAAP Reconciliation | Revenue by Region
GAAP to NON-GAAP Reconciliation | Revenue by Region Proto Labs, Inc. Comparison of GAAP to Non-GAAP Revenue Growth by Region (In thousands) (Unaudited) Three Months Ended Three Months Ended December 31, 2024 December 31, 2023 Foreign % % Change GAAP Currency1 Non-GAAP GAAP Change2 Organic3 Revenues
Slide 26: GAAP to Non-GAAP Reconciliation | Revenue by Service
GAAP to NON-GAAP Reconciliation | Revenue by Service Proto Labs, Inc. Comparison of GAAP to Non-GAAP Revenue Growth by Service Line (In thousands) (Unaudited) Three Months Ended Three Months Ended December 31, 2024 December 31, 2023 Foreign % % Change GAAP Currency1 Non-GAAP GAAP Change2 Organic3 Re
Slide 27: 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 Twelve Months Ended December 31, December 31, 2024 2023 2024 2023 Revenue $ 121,750 $ 125,048 $ 500,890 $ 503,877 Gross profit 51,957 55,812 2
Slide 28: 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 Twelve Months Ended December 31, December 31, 2024 2023 2024 2023 Revenue $ 121,750 $ 125,048 $ 500,890 $ 503,877 (Loss) income from o
Slide 29: GAAP to Non-GAAP Reconciliation | EBITDA
GAAP to NON-GAAP Reconciliation | EBITDA Proto Labs, Inc. Reconciliation of GAAP Net (Loss) Income to EBITDA and Adjusted EBITDA (In thousands) (Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, 2024 2023 2024 2023 Revenue $ 121,750 $ 125,048 $ 500,890 $ 503,877 GAAP net (l
Slide 30: GAAP to Non-GAAP Reconciliation | EPS
GAAP to NON-GAAP Reconciliation | EPS Proto Labs, Inc. Reconciliation of GAAP to Non-GAAP Net Income per Share (In thousands, except share and per share amounts) (Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, 2024 2023 2024 2023 Non-GAAP net income, adjusted for stock-b
Slide 31: GAAP to Non-GAAP Reconciliation | Q1 2025 Outlook
GAAP to NON-GAAP Reconciliation | Q1 2025 Outlook Proto Labs, Inc. Reconciliation of GAAP to Non-GAAP Guidance (In thousands, except share and per share amounts) (Unaudited) Q1 2025 Outlook Low High GAAP diluted net income per share $ 0.08 $ 0.16 Add back: Stock-based compensation expense 0.15 0.15