Proto Labs, Inc. · NYSE:PRLB
Proto Labs — Q3 2024 Earnings Presentation
27 slides from Proto Labs's earnings presentation, Nov 1, 2024
Slide 1: Earnings Presentation Q3 2024
Earnings Presentation Q3 2024 November 1, 2024
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 Priorities – Q3 Update
2024 Priorities – Q3 Update 3
Slide 4: 2024 Priorities – Q3 Update
2024 Priorities – Q3 Update 1. Increase number of customers using the combined offer • Customer contacts using combined offer in LTM up 35% YoY 2. Drive higher revenue per customer through larger orders • Year-to-date, revenue per customer contact is up 5% YoY 4
Slide 5: Customer Example
Customer Example 5
Slide 6: Harley-Davidson Factory Racing teamed with Protolabs
Harley-Davidson Factory Racing teamed with Protolabs for quick- turn production parts, and also tapped into the manufacturer’s global network of partners for larger, more complex parts.
Slide 7: Q3 2024 Financial Overview
Q3 2024 Financial Overview 7
Slide 8: Financial Highlights | Q3 2024
Financial Highlights | Q3 2024 Revenue ($M) (4.3)%1 • Revenue of $125.6 million, down 4.3% 1 YoY • Protolabs Network generated revenue of $25.3 million, $130.7 $125.6 up 11% YoY in constant currencies • Q3 revenue flat sequentially Q3 2023 Q3 2024 Non-GAAP EPS* • Non-GAAP EPS of $0.47, down $0.04 Yo
Slide 9: Revenue by Service | Q3 2024 YoY
Revenue by Service | Q3 2024 YoY Injection Molding - Revenue CNC Machining - Revenue ($M) ($M) (10)%* 0%* $51.7 $46.8 $52.9 $53.3 Q3 2023 Q3 2024 Q3 2023 Q3 2024 3D Printing - Revenue Sheet Metal - Revenue ($M) ($M) (1)%* (13)%* $21.6 $21.4 $4.3 $3.7 Q3 2023 Q3 2024 Q3 2023 Q3 2024 9 *YoY change ref
Slide 10: Financial Results | Q3 2024
Financial Results | Q3 2024 Q3 2024 Q2 2024 QoQ Change Q3 2023 YoY Change Revenue $125.6 $125.6 0.0% $130.7 (3.9)% Non-GAAP 46.2% 45.7% 50 bps 46.0% 20 bps Gross Margin* Non-GAAP 10.9% 8.9% 200 bps 12.5% (160) bps Operating Margin* Non-GAAP $0.47 $0.38 25.7% $0.51 (7.0)% Earnings Per Share* *Non-GAA
Slide 11: Cash Flow and Balance Sheet | Q3 2024
Cash Flow and Balance Sheet | Q3 2024 $M Q3 2024 Q2 2024 Q3 2023 Operating Cash Flow $24.8 $14.4 $24.2 Capital Expenditures $1.6 $4.2 $3.1 Share Repurchases $19.0 $10.9 $9.0 Cash and Investments* $117.6 $112.9 $114.9 Debt* $0 $0 $0 11 *Balance sheet items as of the end of the period.
Slide 12: Q4 2024 Financial Outlook
Q4 2024 Financial Outlook 12
Slide 13: Outlook | Q4 2024
Outlook | Q4 2024 Q4 2024 Revenue Q4 2024 Non-GAAP* EPS Revenue $115M - $123M Non-GAAP* EPS $0.28 - $0.36 Outlook Commentary • Expect foreign currency to have an approximately $1M favorable impact on Q4 2024 revenue • Expect Q4 2024 Non-GAAP* effective tax rate of 20% +/- 50 bps • Expect Q4 2024 dil
Slide 14: Thank You!
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Slide 15: Appendix
Appendix 15
Slide 16: Q3 2024 Detailed Financial Information
Q3 2024 Detailed Financial Information 16
Slide 17: YoY GAAP to Non-GAAP P&L | Q3 2024
YoY GAAP to Non-GAAP P&L | Q3 2024 Three Months Ended September 30, 2024 Three Months Ended September 30, 2023 $ in thousands GAAP Adjustments Non-GAAP* GAAP Adjustments Non-GAAP* Revenue $ 125,619 — $ 125,619 $ 130,705 — $ 130,705 Cost of revenue 68,389 (817) 67,572 71,423 (805) 70,618 Gross profit
Slide 18: QoQ GAAP to Non-GAAP P&L | Q3 2024
QoQ GAAP to Non-GAAP P&L | Q3 2024 Three Months Ended September 30, 2024 Three Months Ended June 30, 2024 $ in thousands GAAP Adjustments Non-GAAP* GAAP Adjustments Non-GAAP* Revenue $ 125,619 — $ 125,619 $ 125,631 — $ 125,631 Cost of revenue 68,389 (817) 67,572 69,085 (810) 68,275 Gross profit $ 57
Slide 19: Revenue by Region | Q3 2024
Revenue by Region | Q3 2024 Revenue % by Region YoY Change YoY Change Q3 2024 Q3 2024 Q3 2023 Overall Constant Fx* 21% Americas $99.6 $103.9 (4)% (4)% Europe $26.0 $26.8 (3)% (4)% Total $125.6 $130.7 (4)% (4)% 79% Americas Europe *YoY change reflected in constant currencies; see reconciliation in ap
Slide 20: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations 20
Slide 21: GAAP to NON-GAAP Reconciliation | Revenue by Region
GAAP to NON-GAAP Reconciliation | Revenue by Region 21
Slide 22: GAAP to NON-GAAP Reconciliation | Revenue by Service
GAAP to NON-GAAP Reconciliation | Revenue by Service 22
Slide 23: GAAP to NON-GAAP Reconciliation | Gross Margin
GAAP to NON-GAAP Reconciliation | Gross Margin 23
Slide 24: GAAP to NON-GAAP Reconciliation | Operating Margin
GAAP to NON-GAAP Reconciliation | Operating Margin 24
Slide 25: GAAP to NON-GAAP Reconciliation | EBITDA
GAAP to NON-GAAP Reconciliation | EBITDA 25
Slide 26: GAAP to NON-GAAP Reconciliation | EPS
GAAP to NON-GAAP Reconciliation | EPS 26
Slide 27: GAAP to NON-GAAP Reconciliation | Q4 2024 Outlook
GAAP to NON-GAAP Reconciliation | Q4 2024 Outlook Proto Labs, Inc. Reconciliation of GAAP to Non-GAAP Guidance (In thousands, except share and per share amounts) (Unaudited) Q4 2024 Outlook Low High GAAP diluted net income per share $ 0.10 $ 0.18 Add back: Stock-based compensation expense 0.15 0.15