Proto Labs, Inc. · NYSE:PRLB
Proto Labs — Q1 2023 Earnings Presentation
26 slides from Proto Labs's earnings presentation, May 5, 2023
Slide 1: Earnings Presentation Q1 2023
Earnings Presentation Q1 2023 May 5, 2023
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: 2023 Priorities – Q1 Update
2023 Priorities – Q1 Update
Slide 4: 2023 Priorities – Q1 Update
2023 Priorities – Q1 Update ▸ Focused Priority Growth Areas ▸ Injection Molding ▸ Sequential and YoY* growth in Q1 2023 ▸ Combined factory and network offer gaining traction ▸ Integrated comprehensive CNC offer powered by the Hubs network ▸ Strong growth in Q1 2023 driven by cross-selling between th
Slide 5: Philips Domestic Appliances customer value: speed x part complexity
CUSTOMER VALUE Speed x Part Complexity Quick Stats CHALLENGE Consumer Appliances ▸ Philips Domestic Appliances required both quick-turn and complex, high-requirement plastic parts ▸ Looking for one supplier to handle both prototyping and production Injection Molding injection molding tools SOLUTION
Slide 6: Q1 2023 Overview
Q1 2023 Overview
Slide 7: Financial Highlights | Q1 2023 YoY
Financial Highlights | Q1 2023 YoY Revenue ($M) 6.9%1 • Revenue of $125.9 million, up 6.9%1 YoY Sequential growth of 8.9% over Q4 2022 $124.2 $125.9 Returned to growth in injection molding (excl. Japan) Strong growth in CNC machining and 3D printing Hubs generated growth of 70.7% YoY in cons
Slide 8: Revenue by Service | Q1 2023 YoY
Revenue by Service | Q1 2023 YoY Injection Molding - Revenue CNC Machining - Revenue ($M) (1)%* ($M) 6%* $53.4 $51.9 $46.1 $48.1 Q1 2022 Q1 2023 Q1 2022 Q1 2023 3D Printing - Revenue Sheet Metal - Revenue ($M) ($M) 11%* (9)%* $19.7 $21.3 $4.7 $4.2 Q1 2022 Q1 2023 Q1 2022 Q1 2023 *YoY change reflecte
Slide 9: Revenue by Service | Q1 2023 QoQ
Revenue by Service | Q1 2023 QoQ Injection Molding - Revenue CNC Machining - Revenue ($M) 16% ($M) 3% $44.9 $51.9 $46.6 $48.1 Q4 2022 Q1 2023 Q4 2022 Q1 2023 3D Printing - Revenue Sheet Metal - Revenue ($M) ($M) 9% (4)% $19.5 $21.3 $4.4 $4.2 Q4 2022 Q1 2023 Q4 2022 Q1 2023 9
Slide 10: Revenue by Region | Q1 2023
Revenue by Region | Q1 2023 YoY Change YoY Change YoY Change Revenue % by Region $M Q1 23 Q1 22 Overall Constant Fx* Constant Fx* Q1 2023 Excl. Japan Americas $97.7 $95.5 2% 2% 22% Europe $28.1 $24.6 14% 24% Japan - $4.1 (100)% (100)% 78% TOTAL $125.9 $124.2 1% 3% 7% Americas Europe *YoY change refl
Slide 11: Q1 2023 Detailed Financial Information
Q1 2023 Detailed Financial Information
Slide 12: Financial Results | Q1 2023
Financial Results | Q1 2023 $M, Except QoQ YoY per share amounts Q1 23 Q4 22 Change Q1 22 Change Revenue $125.9 $115.6 8.9% $124.2 1.4% Non-GAAP 43.4% 42.8% 60 bps 45.7% (230) bps Gross Margin* Non-GAAP Operating Margin* 7.2% 6.2% 100 bps 11.1% (400) bps Non-GAAP $0.30 $0.26 15.5% $0.38 (22.1)% Earn
Slide 13: YoY GAAP to Non-GAAP P&L | Q1 2023
YoY GAAP to Non-GAAP P&L | Q1 2023 Three Months Ended Mar. 31, 2023 Three Months Ended Mar. 31, 2022 $ in thousands GAAP Adjustments Non-GAAP* GAAP Adjustments Non-GAAP* Revenue $125,859 - $125,859 $124,168 - $124,168 Cost of Revenue 72,083 (808) 71,275 68,364 (929) 67,435 Gross Profit $53,776 $808
Slide 14: QoQ GAAP to Non-GAAP P&L | Q1 2023
QoQ GAAP to Non-GAAP P&L | Q1 2023 Three Months Ended Mar. 31, 2023 Three Months Ended Dec. 31, 2022 $ in thousands GAAP Adjustments Non-GAAP* GAAP Adjustments Non-GAAP* Revenue $125,859 - $125,859 $115,607 - $115,607 Cost of Revenue 72,083 (808) 71,275 67,000 (840) 66,160 Gross Profit $53,776 $808
Slide 15: Cash Flow and Balance Sheet | Q1 2023
Cash Flow and Balance Sheet | Q1 2023 $M Q1 23 Q4 22 Q1 22 FY 18 Operating Cash Flow $22.6 $10.5 $17.8 Capital Expenditures $3.4 $5.3 $3.1 Share Repurchases $21.1 $16.6 $0.0 Cash and Investments* $104.7 $106.5 $105.3 Debt* $0 $0 $0 *Balance Sheet items as of the end of the period. 15
Slide 16: Q2 2023 Financial Outlook
Q2 2023 Financial Outlook
Slide 17: Outlook | Q2 2023
Outlook | Q2 2023 Q2 2023 Revenue Q2 2023 Non-GAAP* EPS Revenue $119M - $127M Non-GAAP EPS $0.26 - $0.34 % Growth YoY (constant Fx ex. Japan) (4)% - 3% % Growth YoY (44)% - (27)% Q2 2023 Outlook Commentary* ▸ Expect foreign currency to have a ~$0.5 million unfavorable impact on Q2 2023 revenue ▸ Jap
Slide 18: Thank You
Thank You
Slide 19: Appendix
Appendix
Slide 20: 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 March 31, 2023 March 31, 2022 % % Foreign Change 2 3 GAAP Currency1 Non-GAAP GAAP Change Organic Revenues Unit
Slide 21: 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 March 31, 2023 March 31, 2022 % % Foreign Change 2 3 GAAP Currency1 Non-GAAP GAAP Change Organic Revenu
Slide 22: 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 March 31, 2023 2022 Revenue $ 125,859 $ 124,168 Gross Profit 53,776 55,804 GAAP gross margin 42.7% 44.9% Add back: Stock-based compensation ex
Slide 23: 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 March 31, 2023 2022 Revenue $ 125,859 $ 124,168 Income from operations 3,749 7,890 GAAP operating margin 3.0% 6.4% Add back: Stock-bas
Slide 24: GAAP to NON-GAAP Reconciliation | EBITDA
GAAP to NON-GAAP Reconciliation | EBITDA Proto Labs, Inc. Reconciliation of GAAP Net Income to EBITDA and Adjusted EBITDA (In thousands) (Unaudited) Three Months Ended March 31, 2023 2022 Revenue $ 125,859 $ 124,168 GAAP net income 2,659 5,095 GAAP net income margin 2.1% 4.1% Add back: Amortization
Slide 25: 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 March 31, 2023 2022 Non-GAAP net income, adjusted for stock-based compensation expense, amortization expens
Slide 26: GAAP to NON-GAAP Reconciliation | Q2 2023 Outlook
GAAP to NON-GAAP Reconciliation | Q2 2023 Outlook Proto Labs, Inc. Reconciliation of GAAP to Non-GAAP Guidance (In thousands, except share and per share amounts) (Unaudited) Q2 2023 Guidance Low High GAAP diluted earnings per share $ 0.05 $ 0.13 Add back: Stock-based compensation expense 0.16 0.16 A