Slide 1: Third Quarter 2022 Financial Results
November 9, 2022 Third Quarter 2022 Financial Results
Slide 2: Welcome and Participants
Welcome and Participants Dr. Jeffrey Graves President & Chief Executive Officer Michael Turner Executive Vice President & Chief Financial Officer Andrew Johnson Executive Vice President & Chief Legal Officer Russell Johnson To participate via phone, Vice President, Treasury & Investor Relations plea
Slide 3: Forward Looking Statements
Forward Looking Statements Certain statements made in this presentation 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, uncert
Slide 4: Dr. Jeffrey Graves
Dr. Jeffrey Graves President & Chief Executive Officer 4
Slide 5: Current Business Environment
Current Business Environment • 3D Systems Q3-2022 results were solid across most business lines • Softer dental market demand as expected • Macro environment still volatile and challenging • Reorganized 3D Systems now focusing on • Operational excellence • Investing for growth and profitability 5
Slide 6: Third Quarter 2022 Highlights
Third Quarter 2022 Highlights • YoY revenue growth after excluding divestitures and in constant currency • Total company: 2.7% • Industrial: 9.0% • Healthcare: (3.5)% • Strong U.S. Dollar continued to be a headwind • Industrial Solutions • Solid Americas demand in energy and space applications • Hea
Slide 7: Commercial Update
Commercial Update Success in Metals Advanced Technology New Materials Applications Acquisition closed RF Patch Antennas Satellite Components Figure 4 October 2022 Tough Clear Medical Devices DuraForm PAx Black CuNi30 Alloy 7
Slide 8: Systemic Bio's Unique Tissue Chip Technology: h-VIOS
Systemic Bio Formation announced September 2022 Focused on the development of 3D printed vascularized organ models made from of hydrogels & human cells to accelerate drug discovery Systemic Bio’s Unique Tissue Chip Technology: h-VIOS Human Vascularized Integrated Organ Systems h-VIOS tissue vasculat
Slide 9: Systemic Bio: Key Differentiators
Systemic Bio: Key Differentiators Tissue vasculature is essential for cell survival (nutrient delivery & waste removal) In drug discovery, it offers a much more effective mechanism for drug delivery 3D Systems bioprinting technology solves a decades-long tissue engineering challenge Microvascular st
Slide 10: Software Update
Software Update Software Functionality Customer HW- DIY of CAD Robust Oqton Partnership Target - Limited None Point Vendors Specific SW Solutions Part Identification Design eCommerce/Catalog Oqton Manufacturing OS Design, Redesign, DfAM ✓ ✓ ✓ + Job Preparation ✓ ✓ ✓ ✓ 3D Systems legacy software Pr
Slide 11: Michael Turner
Michael Turner Chief Financial Officer 11
Slide 12: Q3 Summary
Q3 Summary • Q3 revenues decreased 15.3% year over year • Q3 revenues excluding divestitures and in constant currency increased 2.7% • Solid performance across most of business • Decline in dental market revenue • GAAP loss per share of ($0.30), includes ($0.08) from non-recurring legal & other sett
Slide 13: Revenue by Segment
Revenue by Segment (Excluding Divestitures) $ in millions Healthcare Revenue Q3 YoY Industrial Revenue Q3 YoY $68.7 $68.0 +0.1% $68.1 -6.6% $64.2 Q3 2021 Q3 2022 Q3 2021 Q3 2022 Slowdown in growth driven by softer Seventh consecutive quarter of year- demand in dental markets. over-year growth. -3.5%
Slide 14: Gross Profit Margin
Gross Profit Margin 50% Q3 2022 vs. Q3 2021 45% 44% • Increase in component costs and freight 41% • Impact of divestitures 40% 40% 40% • Small impact from mix 38% Q3 2022 vs Q2 2022 35% • Full run rate impact of price increases announced earlier in the year • Early benefit of bringing some of our ou
Slide 15: Non-GAAP Operating Expenses
Non-GAAP Operating Expenses (Excluding Divestitures) Non-GAAP excluding divestitures $80 $57.8 $60.9 $58.3 $60 $54.3 $ in millions $49.3 Q3 2022 vs. Q3 2021 $40 • Acquisition opex • Increased R&D to enhance product portfolio $20 • Investing in infrastructure $0 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 202
Slide 16: Adjusted EBITDA & Adjusted EBITDA Margin %
Adjusted EBITDA & Adjusted EBITDA Margin % $50 20% $40 11.9% 15% 8.4% Q3 2022 vs Q3 2021 $30 10% $17.9 • Impact from acquired businesses, most $20 1.4% 5% $11.6 -1.9% -0.2% are in development stage or early $10 0% commercialization $1.9 $0 -5% • Increased input costs $(2.6) $(0.3) -$10 -10% • Invest
Slide 17: Strong Balance Sheet
Strong Balance Sheet • Ended the quarter with $609.4 million dollars of cash and short-term investments on hand • We have sufficient cash to support organic growth, including in regenerative medicine • Invested $84.7 million in acquisitions and investments in first nine months of 2022 • Current focu
Slide 18: Revising FY 2022 Outlook
Revising FY 2022 Outlook FY 2022 Outlook as of August 9, 2022 November 9, 2022 Revenue between Revenue between $530 million and $570 million $535 million and $545 million Non-GAAP Gross Margins Non-GAAP Gross Margins between between 39% and 41% 39% and 41% Non-GAAP Operating Expenses Non-GAAP Operat
Slide 19: Q&A Session
Q&A Session 1-201-689-8345 19
Slide 20: Dr. Jeffrey Graves
Dr. Jeffrey Graves President & Chief Executive Officer 20
Slide 21: Thank You
Thank You Find out more at: www.3dsystems.com 21
Slide 22: Appendix
Appendix ©2022 3D Systems, Inc. | All Rights Reserved.
Slide 23: Presentation of Information
Presentation of Information 3D Systems reports its financial results in accordance with GAAP. Management also reviews and reports certain non-GAAP measures, including: non-GAAP revenue excluding divestitures and on a constant currency basis (sometimes referred to as excluding divestitures and FX eff
Slide 24: Non-GAAP Reconciliation – Quarter Ended Sept. 30, 2021
Non-GAAP Reconciliation – Quarter Ended Sept. 30, 2021 (Unaudited) 24
Slide 25: Non-GAAP Reconciliation – Quarter Ended Dec. 31, 2021
Non-GAAP Reconciliation – Quarter Ended Dec. 31, 2021 (Unaudited) 25
Slide 26: Non-GAAP Reconciliation – Quarter Ended March 31, 2022
Non-GAAP Reconciliation – Quarter Ended March 31, 2022 (Unaudited) 26
Slide 27: Non-GAAP Reconciliation – Quarter Ended June 30, 2022
Non-GAAP Reconciliation – Quarter Ended June 30, 2022 (Unaudited) 27
Slide 28: Non-GAAP Reconciliation – Quarter Ended September 30, 2022
Non-GAAP Reconciliation – Quarter Ended September 30, 2022 (Unaudited) 28
Slide 29: Non-GAAP Operating Income to Adjusted EBITDA Reconciliation
Non-GAAP Operating Income to Adjusted EBITDA Reconciliation (in millions) Q3-2021 Q4-2021 Q1-2022 Q2-2022 Q3-2022 Revenue - 2021 excludes revenue from divestiture $ 136.7 $ 150.9 $ 133.0 $ 140.0 $ 132.3 Non-GAAP Operating (loss) income 6.0 12.3 (3.9) (7.6) (5.5) Depreciation 5.6 5.6 5.8 5.0 5.2 Adju
Slide 30: Reconciliation of Revenue to Non-GAAP Revenue
Reconciliation of Revenue to Non-GAAP Revenue(1) (in Millions, Unaudited) (1)Amounts in table may not foot due to rounding and percent changes have been calculated based upon rounded amounts (2) To assist in the analysis of the Company’s revenue trends, the company estimated the impact of foreign ex
Slide 31: Reconciliation of Revenue to Non-GAAP Revenue
Reconciliation of Revenue to Non-GAAP Revenue(1) (in Millions, Unaudited) (1)Amounts in table may not foot due to rounding and percent changes have been calculated based upon rounded amounts (2) To assist in the analysis of the Company’s revenue trends, the company estimated the impact of foreign ex