Slide 1: Earnings Presentation Q2 2022
Earnings Presentation Q2 2022 ▸ August 5, 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: Q2 2022 Highlights
Q2 2022 Highlights @Prototass
Slide 4: Q2 2022 Business Highlights
Q2 2022 Business Highlights Manufacturer of the Year Award ▸ Awarded by Manufacturing Leadership Council, a division of the National Association of Manufacturers ▸ Protolabs joins Manufacturer of the Year winner alumni including Universal Robotics, InBev, IBM, and Merck Dan Schumacher Named CFO ▸ Da
Slide 5: Update on 2022 Strategic Priorities
Update on 2022 Strategic Priorities 1 Accelerate our Growth 3 Be the Digital Leader at Scale ▸Integrate Hubs ▸Sequential margin improvement ▸Accelerate injection molding growth ▸Increasing automation in factory and back office, enabling growth without adding labor 2 Delight our Customers 4 Be a Grea
Slide 6: Q2 2022 Overview
Q2 2022 Overview @Prototass
Slide 7: Financial Highlights YoY
Financial Highlights | Q2 2022 YoY Revenue ($M) 3.1% • Revenue of $126.9 million, up 3.1% YoY Strong growth in CNC machining, 3D printing, and sheet metal $123.0 $126.9 • Working to drive additional growth in injection molding Hubs contributed $11.3 million of revenue in the second quarter Q2 20
Slide 8: Financial Highlights QoQ
Financial Highlights | Q2 2022 QoQ Revenue ($M) 2.2% • Revenue of $126.9 million, up 2.2% QoQ In guidance range $124.2 $126.9 24,058 unique product developers served Strong growth in CNC machining, 3D printing, and sheet metal Q1 2022 Q2 2022 Non-GAAP EPS* • Non-GAAP EPS of $0.46, up $0.08 QoQ
Slide 9: Revenue by Service YoY
Revenue by Service | Q2 2022 YoY Injection Molding - Revenue CNC Machining - Revenue ($M) (8)% ($M) 16% $58.2 $53.4 $41.6 $48.2 Q2 2021 Q2 2022 Q2 2021 Q2 2022 3D Printing - Revenue Sheet Metal - Revenue ($M) ($M) 10% 9% $18.2 $20.0 $4.7 $5.2 Q2 2021 Q2 2022 Q2 2021 Q2 2022 9
Slide 10: Revenue by Service QoQ
Revenue by Service | Q2 2022 QoQ Injection Molding - Revenue CNC Machining - Revenue ($M) ($M) 0% 5% $53.4 $53.4 $46.1 $48.2 Q1 2022 Q2 2022 Q1 2022 Q2 2022 3D Printing - Revenue Sheet Metal - Revenue ($M) ($M) 1% 10% $19.7 $20.0 $4.7 $5.2 Q1 2022 Q2 2022 Q1 2022 Q2 2022 10
Slide 11: Revenue by Region
Revenue by Region | Q2 2022 YoY Change YoY Change Revenue % by Region $M Q2 22 Q2 21 Overall Constant Fx* Q2 2022 2.3% Americas $100.7 $95.3 6% 6% 18.4% Europe $23.4 $24.7 (5)% 4% Japan $2.9 $3.0 (6)% 11% 79.3% TOTAL $126.9 $123.0 3% 5% Americas Europe Japan *YoY change reflected in constant currenc
Slide 12: Q2 2022 Detailed Financial Information
Q2 2022 Detailed Financial Information 12
Slide 13: Financial Results
Financial Results | Q2 2022 $M, Except QoQ YoY per share amounts Q2 22 Q1 22 Change Q2 21 Change Revenue $126.9 $124.2 2.2% $123.0 3.1% Non-GAAP 45.9% 45.7% 20 bps 46.8% (90) bps Gross Margin* Non-GAAP Operating Margin* 12.6% 11.1% 140 bps 12.1% 50 bps Non-GAAP $0.46 $0.38 22.5% $0.39 20.4% Earnings
Slide 14: YoY GAAP to Non-GAAP P&L
YoY GAAP to Non-GAAP P&L | Q2 2022 Three Months Ended Jun. 30, 2022 Three Months Ended Jun. 30, 2021 $ in thousands GAAP Adjustments Non-GAAP* GAAP Adjustments Non-GAAP* Revenue $126,902 - $126,902 $123,048 - $123,048 Cost of Revenue 69,480 (870) 68,610 66,423 (1,011) 65,412 Gross Profit $57,422 $87
Slide 15: QoQ GAAP to Non-GAAP P&L
QoQ GAAP to Non-GAAP P&L | Q2 2022 Three Months Ended Jun. 30, 2022 Three Months Ended Mar. 31, 2022 $ in thousands GAAP Adjustments Non-GAAP* GAAP Adjustments Non-GAAP* Revenue $126,902 - $126,902 $124,168 - $124,168 Cost of Revenue 69,480 (870) 68,610 68,364 (929) 67,435 Gross Profit $57,422 $870
Slide 16: Cash Flow and Balance Sheet
Cash Flow and Balance Sheet | Q2 2022 $M Q2 22 Q1 22 Q2 21 FY 18 Operating Cash Flow $13.3 $17.8 $14.3 Capital Expenditures $3.0 $3.1 $17.4 Share Repurchases $5.2 $0 $1.2 Cash and Investments* $110.1 $105.3 $89.0 Debt* $0 $0 $0 *Balance Sheet items as of the end of the period. 16
Slide 17: Q3 2022 Financial Outlook
Q3 2022 Financial Outlook @Prototass
Slide 18: Q3 2022 Outlook
Q3 2022 | Outlook Q3 2022 Revenue Q3 2022 Non-GAAP* EPS Revenue $121M - $129M Non-GAAP EPS $0.36 - $0.44 % Growth YoY (constant Fx ex. Japan) 0% - 7% % Growth YoY 3% - 26% Q3 2022 Outlook Commentary* ▸ Expect foreign currency to have a ~$2.9 million unfavorable impact on Q3 2022 revenue ▸ Japan clos
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 June 30, 2022 June 30, 2021 % % Foreign Hubs Change 1 3 4 GAAP Currency Acquisition Non-GAAP GAAP Change Organic Revenues United States $ 100,655 $ - $ - $ 100,655 $ 95,344 5.6 % 5.6 % Europe 23,391 2,225
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 Six Months Ended Three Months Ended June 30, June 30, March 31, 2022 2021 2022 2021 2022 2021 Revenue $ 126,902 $ 123,048 $ 251,070 $ 239,174
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 June 30, 2022 2021 Revenue $ 126,902 $ 123,048 Income from operations 5,201 16,104 GAAP operating margin 4.1% 13.1% Add back: Stock-ba
Slide 24: GAAP to NON-GAAP Reconciliation | EBITDA
GAAP to NON-GAAP Reconciliation | EBITDA $ in thousands Three Months Ended June 30, 2022 2021 Revenue $ 126,902 $ 123,048 GAAP net income 2,557 12,915 GAAP net income margin 2.0% 10.5% Add back: Amortization expense $ 1,527 $ 1,490 Depreciation expense 8,515 8,578 Interest income, net (149) (65) Tax
Slide 25: GAAP to NON-GAAP Reconciliation | EPS
GAAP to NON-GAAP Reconciliation | EPS Three Months Ended $ in thousands, except share and per share amounts June 30, 2022 2021 Non-GAAP net income, adjusted for stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency, costs related to disposal/exit activiti