Proto Labs, Inc. · NYSE:PRLB
Proto Labs — Q4 2021 Earnings Presentation
35 slides from Proto Labs's earnings presentation, Feb 11, 2022
Slide 1: Earnings Presentation Q4 and FY 2021
Earnings Presentation Q4 and FY 2021 ▸ February 11, 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: 2021 Highlights
2021 Highlights @Proto.ass
Slide 4: Acquisition of Hubs
2021 Highlights Acquisition of Hubs ▸ Broad services offer: ▸ Rapid prototyping ▸ Higher tolerances ▸ Best-in-class lead times within ▸ More complex parts our current envelope ▸ Additional technologies ▸ Focus on reliability and quality ▸ More secondary options ▸ Expert technical consultation ▸ Vari
Slide 5: Protolabs 2.0 Launch
2021 Highlights Protolabs 2.0 Launch 2.0 Customer Experience (eCommerce) D I G I TA L T H R E A D Engineering Mfg Execution Financial ERP BI Tools CRM Software System Software System Reporting LAUNCHED! ▸ We began the Protolabs 2.0 project in 2017 to improve the customer experience and upgrade back-
Slide 6: 2021 Awards / Recognition
2021 Awards / Recognition Gold in Software Category ▸ Recognition of Protolabs’ industry-leading efforts to implement Fourth ▸ Leadership in Engineering Achievement Program (LEAP) Awards held Industrial Revolution technologies, connecting the e-commerce annually by WTWH Media (Design World, Fluid Po
Slide 7: Q4 2021 Overview
Q4 2021 Overview @Proto.ass
Slide 8: Financial Highlights | Q4 2021 YoY
Financial Highlights | Q4 2021 YoY Revenue ($M) 17.5% • Revenue of $123.6 million, up 17.5% YoY Above our guidance range $123.6 23,376 unique product developers served $105.2 Hubs contributed $9.9 million of revenue in the fourth quarter Q4 2020 Q4 2021 Non-GAAP EPS* • Non-GAAP EPS of $0.41, d
Slide 9: Financial Highlights | Q4 2021 QoQ
Financial Highlights | Q4 2021 QoQ Revenue ($M) (1.4)% • Revenue of $123.6 million, down (1.4)% QoQ Above our guidance range $125.3 $123.6 Lower sequential revenue in Q4 aligns w/ normal seasonality due to holiday season Q3 2021 Q4 2021 Non-GAAP EPS* • Non-GAAP EPS of $0.41, up $0.06 QoQ 17.9%
Slide 10: Revenue by Service | Q4 2021 YoY
Revenue by Service | Q4 2021 YoY Injection Molding - Revenue CNC Machining - Revenue ($M) 4% ($M) 41% $52.1 $53.9 $44.9 $31.8 Q4 2020 Q4 2021 Q4 2020 Q4 2021 3D Printing - Revenue Sheet Metal - Revenue ($M) ($M) 17% 24% $16.0 $18.7 $5.6 $4.5 Q4 2020 Q4 2021 Q4 2020 Q4 2021 10
Slide 11: Revenue by Service | Q4 2021 QoQ
Revenue by Service | Q4 2021 QoQ Injection Molding - Revenue CNC Machining - Revenue ($M) (7)% ($M) 3% $57.7 $53.9 $43.7 $44.9 Q3 2021 Q4 2021 Q3 2021 Q4 2021 3D Printing - Revenue Sheet Metal - Revenue ($M) ($M) 1% 16% $18.6 $18.7 $5.6 $4.9 Q3 2021 Q4 2021 Q3 2021 Q4 2021 11
Slide 12: Revenue by Region | Q4 2021
Revenue by Region | Q4 2021 YoY Change YoY Change Revenue % by Region $M Q4 21 Q4 20 Overall Organic, Q4 2021 Constant Fx* 2.8% Americas $97.9 $83.2 18% 12% 17.9% Europe $22.1 $18.4 20% (4)% Japan $3.5 $3.6 (3)% 5% 79.2% TOTAL $123.6 $105.2 17% 9% Americas Europe Japan *YoY change reflected in const
Slide 13: Q4 2021 Detailed Financial Information
Q4 2021 Detailed Financial Information 13
Slide 14: Financial Results | Q4 2021
Financial Results | Q4 2021 $M, Except QoQ YoY per share amounts Q4 21 Q3 21 Change Q4 20 Change Revenue $123.6 $125.3 (1.4)% $105.2 17.5% Non-GAAP 45.6% 44.9% 70 bps 51.0% (540) bps Gross Margin* Non-GAAP 10.9% 10.2% 70 bps 15.4% (450) bps Operating Margin* Non-GAAP $0.41 $0.35 17.9% $0.50 (17.2)%
Slide 15: YoY GAAP to Non-GAAP P&L | Q4 2021
YoY GAAP to Non-GAAP P&L | Q4 2021 Three Months Ended Dec. 31, 2021 Three Months Ended Dec. 31, 2020 $ in thousands GAAP Adjustments Non-GAAP* GAAP Adjustments Non-GAAP* Revenue $123,582 - $123,582 $105,208 - $105,208 Cost of Revenue 68,170 (990) 67,180 52,580 (1,032) 51,548 Gross Profit $55,412 $99
Slide 16: QoQ GAAP to Non-GAAP P&L | Q4 2021
QoQ GAAP to Non-GAAP P&L | Q4 2021 Three Months Ended Dec. 31, 2021 Three Months Ended Sept. 30, 2021 $ in thousands GAAP Adjustments Non-GAAP* GAAP Adjustments Non-GAAP* Revenue $123,582 - $123,582 $125,342 - $125,342 Cost of Revenue 68,170 (990) 67,180 70,018 (986) 69,032 Gross Profit $55,412 $990
Slide 17: Cash Flow and Balance Sheet | Q4 2021
Cash Flow and Balance Sheet | Q4 2021 $M Q4 21 Q3 21 Q4 20 FY 18 Operating Cash Flow $23.0 $11.5 $24.6 Capital Expenditures $6.3 $4.0 $6.5 Share Repurchases $10.2 $11.8 $0.0 Cash and Investments* $91.8 $83.9 $221.0 Debt* $0 $0 $0 *Balance Sheet items as of the end of the period. 17
Slide 18: FY 2021 Overview
FY 2021 Overview @Proto.ass
Slide 19: Financial Highlights | FY 2021 YoY
Financial Highlights | FY 2021 YoY Revenue ($M) 12.4% • Record Revenue of $488.1 million, up 12.4% YoY 55,330 unique product developers served $434.4 $488.1 Hubs contributed $33.3 million of revenue in 2021 FY 2020 FY 2021 Non-GAAP EPS* • Non-GAAP EPS of $1.55, down $(0.82) YoY Lower gross mar
Slide 20: Revenue by Service | FY 2021 YoY
Revenue by Service | FY 2021 YoY Injection Molding - Revenue CNC Machining - Revenue ($M) 4% ($M) 27% $218.0 $226.1 $131.6 $166.8 FY 2020 FY 2021 FY 2020 FY 2021 3D Printing - Revenue Sheet Metal - Revenue ($M) ($M) 16% 8% $62.5 $72.7 $18.8 $20.4 FY 2020 FY 2021 FY 2020 FY 2021 20
Slide 21: Revenue by Region | FY 2021
Revenue by Region | FY 2021 YoY Change YoY Change Revenue % by Region $M FY 2021 FY 2020 Overall Organic, FY 2021 Constant Fx* 2.7% Americas $384.5 $345.7 11% 6% 18.5% Europe $90.4 $74.8 21% (5)% Japan $13.2 $13.9 (5)% (2)% 78.8% TOTAL $488.1 $434.4 12% 4% Americas Europe Japan *YoY change reflected
Slide 22: FY 2021 Detailed Financial Information
FY 2021 Detailed Financial Information 22
Slide 23: Financial Results | FY 2021
Financial Results | FY 2021 $M, Except per share amounts FY 2021 FY 2020 YoY Change Revenue $488.1 $434.4 12.4% Non-GAAP 46.4% 51.0% (460) bps Gross Margin* Non-GAAP Operating Margin* 11.3% 17.9% (670) bps Non-GAAP $1.55 $2.36 (34.5)% Earnings Per Share* *Non-GAAP: adjusted for stock-based compensat
Slide 24: YoY GAAP to Non-GAAP P&L | FY 2021
YoY GAAP to Non-GAAP P&L | FY 2021 Twelve Months Ended Dec. 31, 2021 Twelve Months Ended Dec. 31, 2020 $ in thousands GAAP Adjustments Non-GAAP* GAAP Adjustments Non-GAAP* Revenue $488,098 - $488,098 $434,395 - $434,395 Cost of Revenue 265,407 (3,964) 261,443 216,568 (3,820) 212,748 Gross Profit $22
Slide 25: Cash Flow and Balance Sheet | FY 2021
Cash Flow and Balance Sheet | FY 2021 $M FY 2021 FY 2020 Operating Cash Flow $55.2 $107.0 Capital Expenditures $34.2 $47.0 Share Repurchases $23.3 $14.7 Cash and Investments* $91.8 $221.0 Debt* $0 $0 *Balance Sheet items as of the end of the period. 25
Slide 26: Q1 2022 Financial Outlook
Q1 2022 Financial Outlook @Proto.ass
Slide 27: Q1 2022 Outlook
Q1 2022 | Outlook Q1 2022 Revenue Revenue $116M - $126M % Growth YoY 0% - 8% Q1 2022 Outlook Commentary* ▸ Expect foreign currency to have a ~$0.5 million unfavorable impact on Q1 2022 revenue ▸ Estimated Non-GAAP gross margin of approximately 44%, +/- 100 bps ▸ Projected Non-GAAP operating expenses
Slide 28: 2022 Strategic Priorities
2022 Strategic Priorities 28
Slide 29: 2022 Strategic Priorities
2022 Strategic Priorities 1 Accelerate our Growth 3 Be the Digital Leader at Scale ▸Integrate Hubs ▸Continuous improvement ▸Legacy innovation roadmap ▸Automation ▸Expand production business ▸Improve internal efficiency post-Protolabs 2.0 2 Delight our Customers 4 Be a Great Place to Work ▸Maintain l
Slide 30: Thank You
Thank You 30
Slide 31: Appendix
Appendix 31
Slide 32: GAAP to Non-GAAP Reconciliation | Revenue
GAAP to NON-GAAP Reconciliation | Revenue $ in thousands Three Months Ended Three Months Ended Decem ber 31, 2021 Dec 31, 2020 % Foreign 3D Hubs % Change 1 2 3 4 GAAP Currency Acquisition Non-GAAP GAAP Change Organic Revenues United States $ 97,934 $ - $ (5,109) $ 92,825 $ 83,201 17.7 % 11.6 % Europ
Slide 33: GAAP to Non-GAAP Reconciliation | Operating Margin
GAAP to NON-GAAP Reconciliation | Operating Margin $ in thousands Three Months Ended Year Ended Decem ber 31, Decem ber 31, 2021 2020 2021 2020 Revenue $ 123,582 $ 105,208 $ 488,098 $ 434,395 Income from operations 13,050 10,991 40,342 59,836 GAAP operating margin 10.6% 10.4% 8.3% 13.8% Add back: St
Slide 34: GAAP to Non-GAAP Reconciliation | EBITDA
GAAP to NON-GAAP Reconciliation | EBITDA $ in thousands Three Months Ended Year Ended Decem ber 31, Decem ber 31, 2021 2020 2021 2020 GAAP net income $ 11,910 $ 9,579 $ 33,372 $ 50,867 Amortization expense 1,552 754 6,153 3,016 Depreciation expense 8,705 7,949 34,335 29,578 Interest income, net (23)
Slide 35: GAAP to Non-GAAP Reconciliation | EPS
GAAP to NON-GAAP Reconciliation | EPS Three Months Ended Year Ended $ in thousands, except share and per share amounts Decem ber 31, Decem ber 31, 2021 2020 2021 2020 Non-GAAP net income, adjusted for stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency