Slide 1: Second Quarter 2023 Financial Results
August 9, 2023 Second Quarter 2023 Financial Results
Slide 2: Welcome and Participants
Welcome and Participants Dr. Jeffrey Graves President & Chief Executive Officer Michael Turner Executive Vice President & Chief Financial Officer Andrew Johnson Executive Vice President, Chief Corporate Development Officer & Chief Legal Officer To participate via phone, Mick McCloskey please dial: V
Slide 3: Forward Looking Statements
Forward Looking Statements Certain statements made in this document 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, uncertaint
Slide 4: Additional Information
Additional Information This communication does not constitute an offer to buy or sell or the solicitation of an offer to sell or buy any securities. This communication relates to a proposal which 3D Systems has made for a business combination with Stratasys. In furtherance of this proposal and subje
Slide 5: Dr. Jeffrey Graves
Dr. Jeffrey Graves President & Chief Executive Officer 5
Slide 6: Industry & Business Update
Industry & Business Update 1 2 3 Healthcare Scale is essential for Standalone 3D Fully committed to our the next era in Additive System’s long-term high-potential Manufacturing growth strategy is clear Regenerative Medicine business Our standalone plan expects high single-digit to low double-digit g
Slide 7: An Incredibly Differentiated Position in Regenerative Medicine
An Incredibly Differentiated Position in Regenerative Medicine 3D Systems Human Organs (Lung, Kidney, and Liver) Bioprinting Leadership Most Complex Object Ever 3D Printed: • 2 Lobes • 5,000 kilometers of vasculature • 213 Million Alveoli • 44 Trillion Voxels 35+ Years of developing advanced 3D prin
Slide 8: Progress in Systemic Bio
Progress in Systemic Bio Design Creation Bioprinting Lining Vasculatures Cell Survival with Perfusion in with Cells h-VIOS™ chip Unique complexity, design control, scale and physiological relevance with 3D Systems bioprinting technology 8
Slide 9: An Expanding Systemic Bio Team
An Expanding Systemic Bio Team 25 Scientists and engineers from top institutions worldwide 1,500+ Scaffolds printed in Q2 to support pharmaceutical collaborations 12,000+ Scaffold printing capacity per quarter, enabling support of Located at the Texas Medical Center State-of-the-art biomanufacturing
Slide 10: An Exciting Partnership with Theradaptive
An Exciting Partnership with Theradaptive Estimated addressable market of ~$4 billion Theradaptive’s innovative protein- engineering technology, combined with 3D Systems’ unique capability to produce personalized orthopedic implants combines each company’s core strengths to accelerate market introdu
Slide 11: An Attractive Core Business Poised for Further Growth
An Attractive Core Business Poised for Further Growth Dental Solutions Healthcare Solutions Industrial Solutions • Industry working through high- (excl. Dental) • 2% year-over-year growth in 1H’23 levels of inventory • 7% year-over-year growth in 1H’23 • Driven by market leadership in • Seeing stabi
Slide 12: 2023 Outlook
2023 Outlook ✓ Revising FY2023 guidance given elongated sales cycle and conservative customer capex spending ✓ Dental stabilization should bring more favorable comparisons in 2H’23 ✓ Non-dental organic growth of high-single digit to low-double digit expected 12
Slide 13: Michael Turner
Michael Turner Chief Financial Officer 13
Slide 14: Year-to-Date Revenue Summary
Year-to-Date Revenue Summary ($ in millions except percentages) HSG ISG Consolidated Dental Non-Dental Dental Non-Dental $136 $273 $249 $110 $137 $140 +3%(1) +7% (1) +2% 1H’22 1H’23 1H’22 1H’23 1H’22 1H’23 • Non-dental HSG grew ~7% year-to- • ISG revenues grew ~2% year-to-date • Year-to-date revenue
Slide 15: Gross Profit Margin
Gross Profit Margin (Non-GAAP) Non-GAAP GP % Q2 2023 vs. Q2 2022 • Increase from PY primarily driven by mix, pricing and in-sourcing efforts 39% 39% 38% Q2 2023 vs. Q1 2023 • Flat QoQ with continued focus on cost optimization Q2 2022 Q1 2023 Q2 2023 See Appendix for a reconciliation of Non-GAAP Gros
Slide 16: Second Quarter Earnings
Second Quarter Earnings • Adjusted EBITDA decreased to $(7) million in Q2 2023 compared to Q2 2022 • Includes over $4 million invested in Regenerative Medicine • Net loss of $(28.9) million • Diluted loss per share of $(0.22), and diluted non-GAAP loss per share of $(0.07) • Above results due to: •
Slide 17: Strong Balance Sheet
Strong Balance Sheet • Ended the quarter with $492 million dollars of cash and short-term investments on hand • Sufficient cash to support organic growth, including Regenerative Medicine • Continued focus on operational execution and integration of recent acquisitions 17
Slide 18: Full-Year 2023 Outlook
Full-Year 2023 Outlook Metric Guidance Commentary Revenue $525 - $545 million Expect high-single to low-double digit organic growth excl. dental markets Non-GAAP GM% 40% – 42% Continued execution on cost efficiencies and fixed cost leverage as sales ramp Non-GAAP Adj. EBITDA Positive exiting Q4’23 C
Slide 19: Q&A Session
Q&A Session 1-201-689-8345 19
Slide 20: Dr. Jeffrey Graves
Dr. Jeffrey Graves President & Chief Executive Officer 20
Slide 21: Thank You
Thank You Find out more at: www.3dsystems.com 21
Slide 22: Appendix
Appendix ©2023 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 excluding divestitures and on a constant currency basis (sometimes referred to as excluding divestitures and FX eff
Slide 24: Balance Sheets
3D Systems Corporation ‘Unaudited Consolidated Balance Sheets June 30, 2023 and December 31, 2022 Balance Sheets st, bee (i thousands, except par value) 2023 31,2022 ASSETS Current assets: (Cash and cash equivalents $ 388,134 Short-term investments 180,603 Accounts receivable, net of reserves — $3,0
Slide 25: Statement of Operations
3D Systems Corporation State m e n t of Unaudited Consolidated Statements of Operations Operations Three and Six Months Ended June 30,2023 an: ‘Taree Months Ended Six Months Ended (x chousands, excent per share amownes) June 30,2023 _June 30,2007 __June30,2023_ _ June 30,2022 Revenue: Products $ 89,
Slide 26: Statement of Cash Flows
3D Systems Corporation Statement of ‘testa Cash Flows an sett Cash flows fom operating activities ‘Net (loss) income before redeernble noeconoling inerest 3 Geae) S$ GOI Adjust to reconcile net (Los) income tet csh (usd i) provided by operating actities ‘Depreciation, mmotzation nd accretion of debe
Slide 27: Reconciliation of Revenue to Non-GAAP Revenue
Reconciliation of Revenue to Non-GAAP Revenue (in thousands except percentages, unaudited) 27
Slide 28: Gross Profit and Gross Profit Margin Reconciliation
Gross Profit and Gross Profit Margin Reconciliation (in thousands except percentages, unaudited) 28
Slide 29: Adjusted EBITDA Reconciliation
Adjust EBITDA reconciliation (in thousands except percentages, unaudited) 29
Slide 30: Earnings per Share Reconciliation
Earnings per Share Reconciliation (in dollars, unaudited) 30