Slide 1: Earnings Presentation Q1 2024
Earnings Presentation Q1 2024 May 3, 2024
Slide 2: Forward-looking Statements and Non-GAAP Measures
Forward-looking Statements and Non-GAAP Measures • These slides may contain forward-looking • Other factors that could materially affect actual • Non-GAAP Financial Measures: Protolabs statements. These statements relate to future results, levels of activity, performance or management believes that
Slide 3: 2024 Priorities – Q1 Update
2024 Priorities – Q1 Update 3
Slide 4: 2024 Priorities – Q1 Update
2024 Priorities – Q1 Update 1. Increase number of customers using the combined offer 2. Drive higher revenue per customer through larger orders in all services • Revenue per Customer Contact increased 5% YoY • Seeing early returns on investments in production o Robotics, automated mold polishing, en
Slide 5: Customer Examples
Customer Examples 5
Slide 6: Protolabs worked with BioDapt on prosthetic components for Paralympian
Protolabs worked with BioDapt to machine prosthetic components for future Paris 2024 Summer Paralympian, Noelle Lambert. 6 Image Source: Noelle Lambert
Slide 7: Protolabs Network machined prosthetic components for Circleg
Protolabs Network machined production metal prosthetic components for Circleg, a startup company with a mission to empower people through freedom of mobility to achieve positive social and environmental impact. 7 Image Source: Lucca Barbery
Slide 8: NASA crowdsourced requirements for a lunar gas capture tool
NASA crowdsourced requirements and design constraints for a tool to capture gases on the moon's surface. Protolabs had 3D printed and machined parts in NASA’s hands in less than 48 hours. Marketing to remove 8 nametag from image
Slide 9: Q1 2024 Financial Overview
Q1 2024 Financial Overview 9
Slide 10: Financial Highlights | Q1 2024
Financial Highlights | Q1 2024 Revenue ($M) 0.9%1 • Revenue of $127.9 million, up 0.9% 1 YoY • YoY growth in injection molding, CNC machining, 3D printing $125.9 $127.9 • Protolabs Network generated revenue of $23.9 million, up 38% YoY in constant currencies Q1 2023 Q1 2024 Non-GAAP EPS* • Non-GAAP
Slide 11: Financial Results | Q1 2024
Financial Results | Q1 2024 Q1 2024 Q4 2023 QoQ Change Q1 2023 YoY Change Revenue $127.9 $125.0 2.3% $125.9 1.6% Non-GAAP 45.6% 45.3% 30 bps 43.4% 220 bps Gross Margin* Non-GAAP 9.5% 11.2% (170) bps 7.2% 230 bps Operating Margin* Non-GAAP $0.40 $0.46 (11.6)% $0.30 36.5% Earnings Per Share* *Non-GAAP
Slide 12: Revenue by Service | Q1 2024 YoY
Revenue by Service | Q1 2024 YoY Injection Molding - Revenue CNC Machining - Revenue ($M) ($M) 1%* 3%* $51.9 $52.7 $48.1 $49.9 Q1 2023 Q1 2024 Q1 2023 Q1 2023 3D Printing - Revenue Sheet Metal - Revenue ($M) ($M) 0%* (16)%* $21.3 $21.6 $4.2 $3.6 Q1 2023 Q1 2024 Q1 2023 Q1 2024 12 *YoY change reflect
Slide 13: Cash Flow and Balance Sheet | Q1 2024
Cash Flow and Balance Sheet | Q1 2024 $M Q1 2024 Q4 2023 Q1 2023 Operating Cash Flow $21.3 $17.2 $22.6 Capital Expenditures $2.6 $18.2 $3.4 Share Repurchases $16.0 $4.9 $21.1 Cash and Investments* $112.9 $110.8 $104.7 Debt* $0 $0 $0 13 *Balance sheet items as of the end of the period.
Slide 14: Q2 2024 Financial Outlook
Q2 2024 Financial Outlook 14
Slide 15: Outlook | Q2 2024
Outlook | Q2 2024 Q2 2024 Revenue Q2 2024 Non-GAAP* EPS Revenue $122M - $130M Non-GAAP* EPS $0.30 - $0.38 % Growth YoY 0% - 6% % Growth YoY (9)% - 15% Outlook Commentary • Expect foreign currency to have a negligible impact on Q2 2024 revenue • Expect Q2 2024 Non-GAAP* effective tax rate of 24% +/-
Slide 16: Thank You!
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Slide 17: Appendix
Appendix 17
Slide 18: Q1 2024 Detailed Financial Information
Q1 2024 Detailed Financial Information 18
Slide 19: YoY GAAP to Non-GAAP P&L | Q1 2024
YoY GAAP to Non-GAAP P&L | Q1 2024 Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 $ in thousands GAAP Adjustments Non-GAAP* GAAP Adjustments Non-GAAP* Revenue $ 127,890 — $ 127,890 $ 125,859 — $ 125,859 Cost of revenue 70,423 (801) 69,622 72,083 (808) 71,275 Gross profit $ 57,46
Slide 20: QoQ GAAP to Non-GAAP P&L | Q1 2024
QoQ GAAP to Non-GAAP P&L | Q1 2024 Three Months Ended March 31, 2024 Three Months Ended December 31, 2023 $ in thousands GAAP Adjustments Non-GAAP* GAAP Adjustments Non-GAAP* Revenue $ 127,890 — $ 127,890 $ 125,048 — $ 125,048 Cost of revenue 70,423 (801) 69,622 69,236 (794) 68,442 Gross profit $ 57
Slide 21: Revenue by Region | Q1 2024
Revenue by Region | Q1 2024 Revenue % by Region YoY Change YoY Change Q1 2024 Q1 2024 Q1 2023 Overall Constant Fx* 21% Americas $101.5 $97.7 4% 4% Europe $26.4 $28.1 (6) (9)% Total $127.9 $125.9 2% 1% 79% Americas Europe *YoY change reflected in constant currencies; see reconciliation in appendix 21
Slide 22: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations 22
Slide 23: GAAP to Non-GAAP Reconciliation | Revenue by Region
GAAP to NON-GAAP Reconciliation | Revenue by Region Proto Labs, Inc. Comparison of GAAP to Non-GAAP Revenue Growth by Region (In thousands) (Unaudited) Three Months Ended Three Months Ended March 31, 2024 March 31, 2023 Foreign % % Change GAAP Currency1 Non-GAAP GAAP Change2 Organic3 Revenues United
Slide 24: GAAP to Non-GAAP Reconciliation | Revenue by Service
GAAP to NON-GAAP Reconciliation | Revenue by Service Proto Labs, Inc. Comparison of GAAP to Non-GAAP Revenue Growth by Service Line (In thousands) (Unaudited) Three Months Ended Three Months Ended March 31, 2024 March 31, 2023 Foreign % % Change GAAP Currency1 Non-GAAP GAAP Change2 Organic3 Revenues
Slide 25: 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 March 31, 2024 2023 Revenue $ 127,890 $ 125,859 Gross profit 57,467 53,776 GAAP gross margin 44.9% 42.7% Add back: Stock-based compensation ex
Slide 26: 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 March 31, 2024 2023 Revenue $ 127,890 $ 125,859 Income from operations 6,827 3,749 GAAP operating margin 5.3% 3.0% Add back: Stock-bas
Slide 27: GAAP to Non-GAAP Reconciliation | EBITDA
GAAP to NON-GAAP Reconciliation | EBITDA Proto Labs, Inc. Reconciliation of GAAP Net Income to EBITDA and Adjusted EBITDA (In thousands) (Unaudited) Three Months Ended March 31, 2024 2023 Revenue $ 127,890 $ 125,859 GAAP net income 5,268 2,659 GAAP net income margin 4.1% 2.1% Add back: Amortization
Slide 28: GAAP to Non-GAAP Reconciliation | EPS
GAAP to NON-GAAP Reconciliation | EPS Proto Labs, Inc. Reconciliation of GAAP to Non-GAAP Net Income per Share (In thousands, except share and per share amounts) (Unaudited) Three Months Ended March 31, 2024 2023 Non-GAAP net income, adjusted for stock-based compensation expense, amortization expens
Slide 29: GAAP to Non-GAAP Reconciliation | Q2 2024 Outlook
GAAP to NON-GAAP Reconciliation | Q2 2024 Outlook Proto Labs, Inc. Reconciliation of GAAP to Non-GAAP Guidance (In thousands, except share and per share amounts) (Unaudited) Q2 2024 Outlook Low High GAAP diluted earnings per share $ 0.11 $ 0.19 Add back: Stock-based compensation expense 0.15 0.15 Am