Proto Labs, Inc. · NYSE:PRLB
Proto Labs — Q1 2022 Earnings Presentation
25 slides from Proto Labs's earnings presentation, May 6, 2022
Slide 1: Earnings Presentation Q1 2022
Earnings Presentation Q1 2022 ▸ May 6, 2022 1
Slide 2: Safe Harbor
Safe Harbor ▸ These slides and accompanying oral presentation may contain forward-looking statements. These statements relate to future events or to future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activit
Slide 3: Q1 2022 Highlights
Q1 2022 Highlights @Prototass
Slide 4: Update on 2022 Strategic Priorities
Update on 2022 Strategic Priorities 1 Accelerate our Growth 3 Be the Digital Leader at Scale ▸Integrate Hubs ▸Continuous improvement / factory and ▸Continue to optimize pricing back-office automation ▸Sequential margin improvement ▸Expand production business 2 Delight our Customers 4 ▸Customer NPS s
Slide 5: 2022 Awards / Recognition
2022 Awards / Recognition Excellence Award 2022 National Association of Manufacturers Plastics News Excellence Award Leadership Award (Collaborative Ecosystems) for Technological Innovation ▸ 2022 is the eighth straight year in which Protolabs ▸ Recognizes Protolabs’ unique technology has won a NAM
Slide 6: Q1 2022 Overview
Q1 2022 Overview @Prototass
Slide 7: Financial Highlights YoY
Financial Highlights | Q1 2022 YoY Revenue ($M) 6.9% • Revenue of $124.2 million, up 6.9% YoY In guidance range $116.1 $124.2 23,492 unique product developers served Hubs contributed $10.3 million of revenue in the first quarter Q1 2021 Q1 2022 Non-GAAP EPS* • Non-GAAP EPS of $0.38, down $(0.0
Slide 8: Financial Highlights QoQ
Financial Highlights | Q1 2022 QoQ Revenue ($M) 0.5% • Revenue of $124.2 million, up 0.5% QoQ In guidance range $123.6 $124.2 Slow start to the quarter due to Omicron variant wave Demand strengthened in February and March Q4 2021 Q1 2022 Non-GAAP EPS* • Non-GAAP EPS of $0.38, down $(0.03) QoQ
Slide 9: Revenue by Service YoY
Revenue by Service | Q1 2022 YoY Injection Molding - Revenue CNC Machining - Revenue ($M) (5)% ($M) 26% $56.4 $53.4 $36.7 $46.1 Q1 2021 Q1 2022 Q1 2021 Q1 2022 3D Printing - Revenue Sheet Metal - Revenue ($M) ($M) 14% (10)% $17.2 $19.7 $5.2 $4.7 Q1 2021 Q1 2022 Q1 2021 Q1 2022 9
Slide 10: Revenue by Service QoQ
Revenue by Service | Q1 2022 QoQ Injection Molding - Revenue CNC Machining - Revenue ($M) (1)% ($M) 3% $53.9 $53.4 $44.9 $46.1 Q4 2021 Q1 2022 Q4 2021 Q1 2022 3D Printing - Revenue Sheet Metal - Revenue ($M) ($M) 5% (16)% $18.7 $19.7 $5.6 $4.7 Q4 2021 Q1 2022 Q4 2021 Q1 2022 10
Slide 11: Revenue by Region
Revenue by Region | Q1 2022 YoY Change YoY Change Revenue % by Region $M Q1 22 Q1 21 Overall Organic, Q1 2022 Constant Fx* 3% Americas $95.5 $91.1 5% 4% 20% Europe $24.6 $21.4 15% 14% Japan $4.1 $3.6 13% 24% 77% TOTAL $124.2 $116.1 7% 6% Americas Europe Japan *YoY change reflected in constant curren
Slide 12: Q1 2022 Detailed Financial Information
Q1 2022 Detailed Financial Information 12
Slide 13: Financial Results
Financial Results | Q1 2022 $M, Except QoQ YoY per share amounts Q1 22 Q4 21 Change Q1 21 Change Revenue $124.2 $123.6 0.5% $116.1 6.9% Non-GAAP 45.7% 45.6% 10 bps 48.5% (280) bps Gross Margin* Non-GAAP Operating Margin* 11.1% 10.9% 30 bps 12.0% (90) bps Non-GAAP $0.38 $0.41 (8.0)% $0.40 (4.5)% Earn
Slide 14: YoY GAAP to Non-GAAP P&L
YoY GAAP to Non-GAAP P&L | Q1 2022 Three Months Ended Mar. 31, 2022 Three Months Ended Mar. 31, 2021 $ in thousands GAAP Adjustments Non-GAAP* GAAP Adjustments Non-GAAP* Revenue $124,168 - $124,168 $116,126 - $116,126 Cost of Revenue 68,364 (929) 67,435 60,796 (977) 59,819 Gross Profit $55,804 $929
Slide 15: QoQ GAAP to Non-GAAP P&L
QoQ GAAP to Non-GAAP P&L | Q1 2022 Three Months Ended Mar. 31, 2022 Three Months Ended Dec. 31, 2021 $ in thousands GAAP Adjustments Non-GAAP* GAAP Adjustments Non-GAAP* Revenue $124,168 - $124,168 $123,582 - $123,582 Cost of Revenue 68,364 (929) 67,435 68,170 (990) 67,180 Gross Profit $55,804 $929
Slide 16: Cash Flow and Balance Sheet
Cash Flow and Balance Sheet | Q1 2022 $M Q1 22 Q4 21 Q1 21 FY 18 Operating Cash Flow $17.8 $23.0 $6.4 Capital Expenditures $3.1 $6.3 $6.5 Share Repurchases $0 $10.2 $0 Cash and Investments* $105.3 $91.8 $93.1 Debt* $0 $0 $0 *Balance Sheet items as of the end of the period. 16
Slide 17: Q2 2022 Financial Outlook
Q2 2022 Financial Outlook @Prototass
Slide 18: Q2 2022 Outlook
Q2 2022 | Outlook Q2 2022 Revenue Q2 2022 Non-GAAP* EPS Revenue $123M - $131M NG EPS $0.35 - $0.43 % Growth YoY 1 2% - 8% % Growth YoY (9)% - 11% Q2 2022 Commentary* ▸ Expect foreign currency to have a ~$2.5 million unfavorable impact on Q2 2022 revenue ▸ Expect Non-GAAP tax rate of approximately 24
Slide 19: Thank You
Thank You 19
Slide 20: Appendix
Appendix 20
Slide 21: GAAP to NON-GAAP Reconciliation | Revenue
GAAP to NON-GAAP Reconciliation | Revenue $ in thousands Three Months Ended Three Months Ended March 31, 2022 March 31, 2021 % % Foreign Hubs Change 2 3 4 GAAP Currency1 Acquisition Non-GAAP GAAP Change Organic Revenues United States $ 95,496 $ - $ (1,049) $ 94,447 $ 91,053 4.9 % 3.7 % Europe 24,586
Slide 22: GAAP to NON-GAAP Reconciliation | Gross Margin
GAAP to NON-GAAP Reconciliation | Gross Margin $ in thousands Three Months Ended March 31, 2022 2021 Revenue $ 124,168 $ 116,126 Gross Profit 55,804 55,330 GAAP gross margin 44.9% 47.6% Add back: Stock-based compensation expense 587 635 Amortization expense 342 342 Total adjustments 929 977 Non-GAAP
Slide 23: GAAP to NON-GAAP Reconciliation | Operating Margin
GAAP to NON-GAAP Reconciliation | Operating Margin $ in thousands Three Months Ended March 31, 2022 2021 Revenue $ 124,168 $ 116,126 Income from operations 7,890 4,261 GAAP operating margin 6.4% 3.7% Add back: Stock-based compensation expense 4,397 5,620 Amortization expense 1,545 1,543 1 Transactio
Slide 24: GAAP to NON-GAAP Reconciliation | EBITDA
GAAP to NON-GAAP Reconciliation | EBITDA $ in thousands Three Months Ended March 31, 2022 2021 Revenue $ 124,168 $ 116,126 GAAP net income 5,095 3,712 GAAP net income margin 4.1% 3.2% GAAP net income $ 5,095 $ 3,712 Amortization expense 1,545 1,543 Depreciation expense 8,687 8,516 Interest income, n
Slide 25: GAAP to NON-GAAP Reconciliation | EPS
GAAP to NON-GAAP Reconciliation | EPS $ in thousands, except share and per share amounts Three Months Ended March 31, 2022 2021 Non-GAAP net income, adjusted for stock-based compensation expense, amortization expense, unrealized loss on foreign currency and transaction costs GAAP net income $ 5,095