Slide 1: First Quarter 2022 Financial Results
May 10, 2022 First Quarter 2022 Financial Results ©2022 3D Systems, Inc. | All Rights Reserved.
Slide 2: Welcome and Participants
Welcome and Participants Dr. Jeffrey Graves President and Chief Executive Officer Jagtar Narula Executive VP and Chief Financial Officer Andrew Johnson Executive VP and Chief Legal Officer Melanie Solomon To participate via phone, Investor Relations please dial: 1-201-689-8345 2 ©2021 3D Systems, In
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 ©2022 3D Systems, Inc. | All Rights Reserved.
Slide 5: Focused AM Solutions
Focused AM Solutions • Full-service provider, combining hardware, materials, software, and applications Healthcare Industrial expertise to deliver additive manufacturing (AM) solutions to customers • Global footprint that includes customer innovation centers, application engineers, AM facilities, an
Slide 6: First Quarter 2022 and Recent Highlights
First Quarter 2022 and Recent Highlights • Delivered double-digit growth, adjusted for divestitures, with Industrial growing over 15% and Healthcare growing 5% year over year • Investing organically to expand drivers of growth and improving core infrastructure in IT, finance and accounting • Strateg
Slide 7: SLA 750 – The Fastest Stereolithography Printer
SLA 750 – The Fastest Stereolithography Printer • Delivers up to 2X speed and 3X throughput for cost-efficient, high-quality production manufacturing • Reinforces our market-leading position in stereolithography • Leverages our portfolio of advanced polymer materials and software capability • Alread
Slide 8: Healthcare Solutions
Healthcare Solutions Positive Regulatory Developments Received FDA 510(k) clearance of VSP® Bolus, a solution designed to deliver high- quality patient-specific radiotherapy treatment accessories Under FDA review with clearance expected in 2022 ©2022 3D Systems, Inc. | All Rights Reserved.
Slide 9: In Summary
In Summary • Strong demand for Additive Manufacturing • Supply chain remains a headwind • Investing strategically • Focus on delivering double-digit topline growth (ex-divestitures) 9 ©2022 3D Systems, Inc. | All Rights Reserved. ©2021
Slide 10: Jagtar Narula
Jagtar Narula Executive VP & Chief Financial Officer 10 ©2022 3D Systems, Inc. | All Rights Reserved.
Slide 11: Q1 Summary
Q1 Summary • Revenue increased 10.0% excluding divested businesses YoY • GAAP loss per share of ($0.21) decreased YoY due to the gains recognized on businesses divested in 2021 • Non-GAAP loss per share* of ($0.06) decreased YoY due to: • Divestitures in 2021 • Higher spend on core investments to su
Slide 12: Revenue by Market
Revenue by Market (Adjusted for Divestitures) $ in millions Healthcare Revenue Q1 YoY Industrial Revenue Q1 YoY +4.6% +15.7% $68.7 $64.3 $61.5 $59.4 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Slowdown in growth driven by Fifth consecutive quarter of supply chain disruptions and year-over-year growth introducti
Slide 13: Gross Profit Margin
Gross Profit Margin Gross margin declined due to YoY product mix changes as a result of divestitures, supply chain and logistics headwinds 50% 50% GAAP Non-GAAP 45% 44% 44% 45% 44% 44% 42% 42% 41% 42% 40% 41% 40% 40% 35% 35% 30% 30% Q1:21 Q2:21 Q3:21 Q4:21 Q1:22 Q1:21 Q2:21 Q3:21 Q4:21 Q1:22 See app
Slide 14: Operating Expenses
Operating Expenses Q1 reflects spending in targeted areas to support future growth and bad debt expense due to Russia exit GAAP Non-GAAP $120 $57.8 $60 $55.2 $54.1 $54.3 $51.2 $100 $81.5 $ in millions $ in millions $79.1 $77.0 $80 $66.2 $70.1 $40 $60 $40 $20 $20 $0 $0 Q1 2021 Q2 2021 Q3 2021 Q4 2021
Slide 15: Adjusted EBITDA Margin
Adjusted EBITDA Margin Defined as non-GAAP Operating Income plus Depreciation divided by Revenue 15.0% 13.6% 12.4% 11.8% 10.5% 10.0% Key growth and infrastructure investments + Supply chain impacts 5.0% 1.4% 0.0% Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 See appendix for a reconciliation of Non-GAAP O
Slide 16: Strong Balance Sheet
Strong Balance Sheet • Ended the quarter with $745.6 million dollars of cash and short-term investments on hand • Ample cash to fund organic growth opportunities and potential acquisitions • Subsequent to quarter end, closed acquisitions of Titan Robotics and Kumovis for $80 million cash, net of clo
Slide 17: Narrowed 2022 Outlook
Narrowed 2022 Outlook Revenue between Increasing additive manufacturing opportunity $580 million and $625 million driving demand Non-GAAP Gross Margins between Supply chain and geopolitical impacts 40% and 43% Non-GAAP Operating Expenses Investing in talent, hardware, materials, and between software
Slide 18: Dr. Jeffrey Graves
Dr. Jeffrey Graves President & Chief Executive Officer 18 ©2022 3D Systems, Inc. | All Rights Reserved.
Slide 19: Investor Day
INVESTOR DAY May 16, 2022 Detroit, Michigan Prior to Rapid +TCT Trade Show Join us! Contact Investor Relations investor.relations@3dsystems.com ©2022 3D Systems, Inc. | All Rights Reserved.
Slide 20: Q&A Session
Q&A Session 1-201-689-8345 20 ©2022 3D Systems, Inc. | All Rights Reserved.
Slide 21: Thank You
Thank You Find out more at: www.3dsystems.com 21 ©2022 3D Systems, Inc. | All Rights Reserved.
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, non-GAAP Gross profit, non-GAAP Gross profit margin, non-GAAP Operating expenses, non-GAAP Operating (loss)/income
Slide 24: Non-GAAP Reconciliation – Quarter Ended March 31, 2022
Non-GAAP Reconciliation – Quarter Ended March 31, 2022 (Unaudited) 24 ©2022 3D Systems, Inc. | All Rights Reserved.
Slide 25: Non-GAAP Reconciliation – Quarter Ended March 31, 2021
Non-GAAP Reconciliation – Quarter Ended March 31, 2021 (Unaudited) 25 ©2022 3D Systems, Inc. | All Rights Reserved.
Slide 26: Non-GAAP Operating Income to Adjusted EBITDA Reconciliation
Non-GAAP Operating Income to Adjusted EBITDA Reconciliation 26 ©2022 3D Systems, Inc. | All Rights Reserved.
Slide 27: Revenue Excluding Divestitures and Related Revenue Growth
Revenue Excluding Divestitures and Related Revenue Growth (in Millions, Unaudited) 27 ©2022 3D Systems, Inc. | All Rights Reserved.