3d Systems Corporation · NYSE:DDD
3d Systems — Q3 2018 Earnings Presentation
27 slides from 3d Systems's earnings presentation, Oct 30, 2018
Slide 1: Third Quarter 2018
Third Quarter 2018 October 30, 2018
Slide 2: Welcome and Participants
Welcome and Participants ⦁ Vyomesh Joshi President & Chief Executive Officer ⦁ John McMullen Executive Vice President & Chief Financial Officer Andy Johnson Chief Legal Officer ⦁ Stacey Witten Vice President, IR and FP&A To participate via phone, please dial: In the US: 1 - 877 - 407 - 8291 Outside
Slide 3: Forward Looking Statements
Forward Looking Statements This presentation contains certain statements that are not statements of historical or current facts are forward - looking stateme nts within the meaning of the Private Securities Litigation Reform Act of 1995. Forward - looking statements include statements concerning pla
Slide 4: Vyomesh Joshi, President & Chief Executive Officer
Vyomesh Joshi (VJ) President & Chief Executive Officer
Slide 5: Third Quarter Highlights
Third Quarter Highlights 5 • We are pleased with our continued strong growth in printer units and printer revenue across both metals and plastics with balanced execution across all regions • New products have been very well received, and we continue to ramp sales and production of these new solution
Slide 6: New Product Update
New Product Update 6 • In the third quarter, we began to ramp production and sales of our new products • It is still early in commercial shipments, but we are very pleased with the reception of the SLS 6100, NextDent 5100, FabPro 1000, StandAlone Figure 4, and MJP 2500 IC • Debuted new DMP Factory 5
Slide 7: Third Quarter Results Overview
Third Quarter Results Overview 7 • Revenue increased 8% to $164.5 million • Strong printer revenue growth of 17% on 93% unit growth as well as growth in materials, software and healthcare solutions • GAAP gross profit margin of 47.3% and non - GAAP gross profit margin of 47.4% • We are beginning to
Slide 8: John McMullen, Executive Vice President & Chief Financial Officer
John McMullen Executive Vice President & Chief Financial Officer
Slide 9: GAAP Operating Results
GAAP Operating Results 9 Third Quarter Nine Months Ended (in millions, except per share amounts) 2018 2017 Y/Y Change 2018 2017 Y/Y Change Revenue $ 164.5 $ 152.9 8% $ 506.9 $ 468.8 8% Gross Profit 77.8 58.5 33% 241.8 219.4 10% Gross Profit Margin 47.3 % 38.3 % 902 bps 47.7 % 46.8 % 91 bps SG&A 65.6
Slide 10: Non-GAAP Financial Measures
Non - GAAP Financial Measures 10 We use non - GAAP measures to supplement our financial statements presented on a GAAP basis because management believes non - GAAP financial measures are useful to investors in evaluating our operating performance and to facilitate a better understand ing of the impa
Slide 11: Revenue Drivers
Revenue Drivers Printers revenue increased 17% to $34.5 million Materials revenue increased 2% to $40.3 million Healthcare solutions increased 14% to $53.1 million Software increased 8% to $22.9 million On demand manufacturing decreased 3% to $26.3 million Q3 2018 compared to Q3 2017: 11
Slide 12: Gross Profit and Margin
Gross Profit and Margin • GAAP GPM was 47.3% and non - GAAP GPM was 47.4% in Q3 2018 • Cost improvements from ongoing supply chain cost reduction initiatives were offset by the impact of sales mix and production and actions related to ramping new products 12 See appendix for a reconciliation of non
Slide 13: Operating Expenses
Operating Expenses 13 • GAAP operating expenses decreased 2% and non - GAAP operating expenses decreased 3% compared to the third quarter of the prior year • Although we expect some fluctuations quarter to quarter, we are beginning to see the results of actions we are taking to reduce cost structure
Slide 14: Balance Sheet and Cash
Balance Sheet and Cash 14 • We used $12.1 million dollars of cash in operations during the third quarter, and $2.9 million of cash in operations in the first nine months of the year. • We ended the quarter with $92.1 million dollars of cash on hand. • During the third quarter, we continued to invest
Slide 15: Summary
Summary 15 • We are pleased with the overall progress we are seeing year to date in many areas • While our work is not done, we believe we are well - positioned to continue to invest in the business and drive growth while continuing to improve our cost structure and increase operating leverage over
Slide 16: Vyomesh Joshi, President & Chief Executive Officer
Vyomesh Joshi (VJ) President & Chief Executive Officer
Slide 17: Conclusion
Conclusion 17 • We are pleased with our results this quarter and the progress we have made to transform the company • We are very excited about our enhanced and complete end - to - end portfolio, our ongoing innovation and significant market opportunities. • We are building the foundation for growth
Slide 18: Q&A Session
Q&A Session In the USA: 1 - 877 - 407 - 8291 Outside the USA: 1 - 201 - 689 - 8345
Slide 19: Thank You
AQ 3D SYSTEMS Thank You
Slide 20: Appendix
AQ 3D SYSTEMS Appendix
Slide 21: Revenue Summary by Category
Revenue Summary by Category 21 (in millions) Q3 2018 Q2 2018 Q3 2017 Sequential Change YOY Change Printers $ 34.5 $ 39.2 $ 29.4 (12)% 17% Software Products 12.0 12.9 10.6 (7)% 13% Other Products 13.2 13.7 11.3 (4)% 16% Total Products 59.6 65.8 51.3 (9)% 16% Total Materials 40.3 45.0 39.4 (11)% 2% On
Slide 22: Non-GAAP Reconciliation: Earnings (Loss) per Share
Non - GAAP Reconciliation 22 Third Quarter and Nine Months Non - GAAP Earnings (Loss) per Share Quarter Ended September 30, Nine Months Ended September 30, (in millions, except per share amounts) 2018 2017 2018 2017 GAAP Net loss attributable to 3D Systems Corporation $ (11.6 ) $ (37.7 ) $ (41.4 ) $
Slide 23: Non-GAAP Reconciliation 2018 Gross Profit & Margin
Non - GAAP Reconciliation 23 2018 Non - GAAP Gross Profit & Margin 2018 Quarter Ended Year to Date (in millions) March 31 June 30 September 30 September 30 GAAP Gross Profit $ 77.9 $ 86.2 $ 77.8 $ 241.8 GAAP Gross Profit Margin 46.9 % 48.8 % 47.3 % 47.7 % Adjustments: Amortization, stock - based com
Slide 24: Non-GAAP Reconciliation 2018 Operating Expenses
Non - GAAP Reconciliation 24 2018 Non - GAAP Operating Expenses 2018 Quarter Ended Year to Date (in millions) March 31 June 30 September 30 September 30 GAAP R&D Expenses $ 25.9 $ 22.7 $ 23.2 $ 71.8 GAAP SG&A Expenses 69.5 71.2 65.6 206.2 GAAP Operating Expenses $ 95.3 $ 93.9 $ 88.8 $ 278.0 Adjustme
Slide 25: Non-GAAP Reconciliation 2017 Gross Profit & Margin
Non - GAAP Reconciliation 25 2017 Non - GAAP Gross Profit & Margin 2017 Quarter Ended Year Ended (in millions) March 31 June 30 September 30 December 31 December 31 GAAP Gross Profit $ 80.2 $ 80.7 $ 58.5 $ 85.5 $ 304.8 GAAP Gross Profit Margin 51.3 % 50.6 % 38.3 % 48.2 % 47.2 % Adjustments: Amortiza
Slide 26: Non-GAAP Reconciliation 2017 Operating Expenses
Non - GAAP Reconciliation 26 2017 Non - GAAP Operating Expenses 2017 Quarter Ended Year Ended (in millions) March 31 June 30 September 30 December 31 December 31 GAAP R&D Expenses $ 22.9 $ 24.4 $ 24.4 $ 23.0 $ 94.6 GAAP SG&A Expenses $ 66.4 $ 63.1 $ 66.5 $ 68.2 $ 264.2 GAAP Operating Expenses $ 89.3
Slide 27: Thank You
AQ 3D SYSTEMS Thank You