3D Systems Corporation · NYSE:DDD
3D Systems — Q1 2019 Earnings Presentation
26 slides from 3D Systems's earnings presentation, May 7, 2019
Slide 1: First Quarter 2019 Financial Results
First Quarter 2019 Financial Results May 7, 2019
Slide 2: Welcome and Participants
Welcome and Participants • Vyomesh Joshi To participate via phone, President and Chief Executive Officer please dial: ⦁ John McMullen Executive Vice President and Chief Financial Officer In the US: 1-877-407-8291 • Andy Johnson Executive Vice President, Chief Legal Officer and Secretary Outside the
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 statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, o
Slide 4: Vyomesh Joshi (VJ)
Vyomesh Joshi (VJ) President & Chief Executive Officer
Slide 5: First Quarter Summary
First Quarter Summary • GAAP revenue in the first quarter of $152.0 million decreased 8% year over year. Excluding a large enterprise customer’s orders from both periods, total revenue decreased 5% • Revenue in the first quarter was negatively impacted by approximately $8 million as a result of the
Slide 6: John McMullen
John McMullen Executive Vice President & Chief Financial Officer
Slide 7: GAAP Operating Results
GAAP Operating Results First Quarter Y/Y (in millions, except per share amounts) 2019 2018 Better/(Worse) Revenue $ 152.0 $ 165.9 (8)% Gross Profit 65.7 77.9 (16)% Gross Profit Margin 43.2% 46.9% (370) bps SG&A 65.1 69.5 6% R&D 21.9 25.9 15% Operating Expenses 87.0 95.3 9% % of Revenue 57.2% 57.5% O
Slide 8: Non-GAAP Financial Measures
Non-GAAP Financial Measures First Quarter Y/Y (in millions, except per share amounts) 2019 2018 Better/(Worse) Non-GAAP R&D Expense $ 21.9 $ 25.9 15% Non-GAAP SG&A Expense 51.0 53.6 5% Non-GAAP Operating Expenses $ 72.9 $ 79.5 8% Non-GAAP Net income (loss) attributable to 3D Systems Corporation $ (1
Slide 9: Revenue Drivers
Revenue Drivers 90% 5% 29% 3% 8% 12% 9
Slide 10: Gross Profit and Margin
Gross Profit and Margin • GAAP GPM was 43.2% and non-GAAP GPM was 44.2% in Q1 2019 • Lower gross profit margin in Q1 2019 was driven by under absorption of supply chain overhead related to lower revenue and production during the quarter, as well as the impact of mix of sales • We continue to drive s
Slide 11: Operating Expenses
Operating Expenses • GAAP operating expenses decreased 9% and non-GAAP operating expenses decreased 8% compared to the first quarter of the prior year • We plan to accelerate cost reductions this year and drive profitability • R&D is focused on materials and software development in 2019 Q1 2018 Q2 2
Slide 12: Balance Sheet and Cash
Balance Sheet and Cash • We used $15.2 million of cash in operations and $9.0 million in CapEx in the first quarter • We ended the quarter with $157.3 million of cash on hand • We are investing in areas critical to long term growth while in parallel reducing costs in multiple areas and plan to drive
Slide 13: Vyomesh Joshi (VJ)
Vyomesh Joshi (VJ) President & Chief Executive Officer
Slide 14: Summary
Summary • We are focused on improving our cost structure and continuing to refine the organization and operations to drive profitable growth • We have taken actions to accelerate previously planned cost reductions and will be taking additional steps over the coming quarters to reduce total 2019 expe
Slide 15: Outlook
Outlook • We expect to ramp sales of new platforms and drive unit growth • We expect materials growth to improve in the second half of 2019, and plan to launch additional materials for plastics this year • Launched online portal for on demand services, which helps standardize and automate export rel
Slide 16: Q&A Session
Q&A Session In the USA: 1-877-407-8291 Outside the USA: 1-201-689-8345
Slide 17: Thank You
ZN 3D SYSTEMS Thank You
Slide 18: Appendix
ZN 3D SYSTEMS Appendix
Slide 19: GAAP Revenue Summary by Category
GAAP Revenue Summary by Category Sequential Y/Y (in millions) Q1 2019 Q4 2018 Q1 2018 Better/(Worse) Better/(Worse) Printers $ 28.0 $ 40.7 $ 39.3 (31)% (29)% Software Products 10.0 15.2 11.7 (34)% (15)% Other Products 12.9 15.3 11.6 (16)% 11% Total Products 50.9 71.1 62.6 (28)% (19)% Total Materials
Slide 20: Non-GAAP Reconciliation - EPS
Non-GAAP Reconciliation - EPS First Quarter Non-GAAP Earnings (Loss) per Share Quarter Ended March 31, (in millions, except per share amounts) 2019 2018 GAAP Net loss attributable to 3D Systems Corporation $ (24.4) $ (21.0) Adjustments: Amortization, stock-based compensation & other 1 12.2 15.2 Lega
Slide 21: Non-GAAP Reconciliation - Revenue
Non-GAAP Reconciliation - Revenue 2019 Non-GAAP Revenue Quarter Ended March 31, (in millions) 2019 GAAP Revenue $ 152.0 Adjustments: Legal, acquisition and divestiture related (1.8) Non-GAAP Revenue $ 150.2 * Tables may not foot due to rounding; amounts calculated based on dollars in thousands. 21
Slide 22: Non-GAAP Reconciliation - GP and GPM
Non-GAAP Reconciliation - GP and GPM 2019 Non-GAAP Gross Profit & Margin Quarter Ended March 31, (in millions) 2019 GAAP Gross Profit $ 65.7 GAAP Gross Profit Margin 43.2% Adjustments: Amortization, stock-based compensation & other 0.1 Legal, acquisition and divestiture related 0.1 Cost optimization
Slide 23: Non-GAAP Reconciliation - Operating Expense
Non-GAAP Reconciliation - Operating Expense 2019 Non-GAAP Operating Expenses Quarter Ended March 31, (in millions) 2019 GAAP R&D Expenses $ 21.9 GAAP SG&A Expenses 65.1 GAAP Operating Expenses 87.0 Non-GAAP R&D Expenses 21.9 Adjustments to SG&A Expenses: Amortization, stock-based compensation & othe
Slide 24: Non-GAAP Reconciliation- GP and GPM
Non-GAAP Reconciliation- GP and GPM Full Year 2018 Non-GAAP Gross Profit & Margin 2018 Quarter Ended Year Ended September December December (in millions) March 31 June 30 30 31 31 GAAP Gross Profit $ 77.9 $ 86.2 $ 77.8 $ 82.6 $ 324.4 GAAP Gross Profit Margin 46.9% 48.8% 47.3% 45.7% 47.2% Adjustments
Slide 25: Non-GAAP Reconciliation - Operating Expense
Non-GAAP Reconciliation - Operating Expense Full Year 2018 Non-GAAP Operating Expenses 2018 Quarter Ended Year Ended (in millions) March 31 June 30 September 30 December 31 December 31 GAAP R&D Expenses $ 25.9 $ 22.7 $ 23.2 $ 23.5 $ 95.3 GAAP SG&A Expenses 69.5 71.2 65.6 66.1 272.3 GAAP Operating Ex
Slide 26: Thank You
ZN 3D SYSTEMS Thank You