3D Systems Corporation (NYSE:DDD) announced today its
financial results for the third quarter ended September 30, 2023.
Third Quarter Financial Results and
Recent Business Highlights (All numbers are unaudited and
are presented in thousands, except per share amounts or as
otherwise noted)
- Q3 2023 revenue of $123,791
decreased from the prior year by 6.4% predominantly driven by
expected weakness in the dental orthodontics markets
- Q3 2023 gross profit margin of
44.7% and non-GAAP gross profit margin of 44.8% increased from
prior year and sequentially, primarily driven by improved
operational efficiencies, favorable mix and progress related to
technical milestones in our Regenerative Medicine business
- Net loss of $11,704, diluted loss
per share of $0.09, and diluted non-GAAP income per
share(1) of $0.01
- Q3 2023 Adjusted
EBITDA(1) of $4,726, an increase from prior year
and sequentially driven primarily by improved gross margin
performance, cost optimization from restructuring and lower
incentive compensation expense
- Announced restructuring initiative
in October 2023 to deliver incremental cost savings of $45 - $55
million by end of 2024
- Technology roadmap targeting the
largest number of new releases in company history - 39 new printer
systems, significant enhancements to existing printers, material
applications and accessories by the end of 2024
|
Three Months Ended September 30, |
|
Three Months Ended June 30, |
(in thousands, except per share data) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
Revenue |
$ |
123,791 |
|
|
$ |
132,253 |
|
|
$ |
128,194 |
|
Gross profit margin |
|
44.7 |
% |
|
|
39.8 |
% |
|
|
39.0 |
% |
Operating (loss) |
|
(13,584 |
) |
|
|
(33,705 |
) |
|
|
(31,729 |
) |
Net (loss) income |
|
(11,704 |
) |
|
|
(37,398 |
) |
|
|
(28,895 |
) |
Diluted (loss) income per
share |
|
(0.09 |
) |
|
|
(0.30 |
) |
|
|
(0.22 |
) |
|
|
|
|
|
|
Non-GAAP measures for
year-over-year comparisons:(1) |
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP gross profit
margin |
|
44.8 |
% |
|
|
39.9 |
% |
|
|
38.9 |
% |
Adjusted EBITDA |
|
4,726 |
|
|
|
(321 |
) |
|
|
(6,898 |
) |
Non-GAAP diluted (loss) income
per share |
$ |
0.01 |
|
|
$ |
(0.05 |
) |
|
$ |
(0.07 |
) |
(1) See “Presentation of
Information in this Press Release” below for a description, and the
Appendix for the reconciliation of non-GAAP measurements to the
most closely comparable GAAP measure.
Summary Comments on Results
Commenting on the third quarter results, Dr.
Jeffrey Graves, President and CEO of 3D Systems stated, “Our third
quarter revenue results reflected increasing headwinds from the
current macroeconomic and geopolitical environment. With inflation
taking a toll on consumer discretionary spending, and an
increasingly conservative stance by our customers on new
manufacturing capital investments, we experienced sharp declines in
our dental orthodontics business and, more generally, in new
production printer sales in the quarter. While we believe these
headwinds will continue into 2024, with inflation beginning to show
signs of moderation and continuing positive indications of interest
in the adoption of additive manufacturing by customers in both our
industrial and healthcare markets, we believe these challenges will
abate over the short to medium term, returning our company, and the
industry in total, to sustained long-term growth.”
Dr. Graves continued, “Given the pressure we are
seeing in the near-term on sales, our immediate priority is to
reduce operating costs and drive internal efficiencies to support
profitability and cash performance, while preserving our key
investments in new technology platforms that will support the
exciting long-term growth we see in our customers’ expanding
applications for additive manufacturing in their production
environments. As one of the largest companies in our industry, we
have the scale and the financial strength to make the investments
required to deliver on these initiatives. As such, in October we
announced a restructuring plan that will deliver roughly $50
million of savings by the end of 2024, with the majority being
implemented by the end of the first quarter. These efforts will
include continued optimization of our manufacturing operations and
supply chain, the power of which has already been demonstrated in
our third quarter gross margin and EBITDA performance, which
reflected progress made over the last year. It will also include
workforce reductions, elimination of significant third party spend
and the rationalization of geographic locations across the company.
With this continued focus on execution, we will emerge from this
period stronger than ever, ready to leverage our market leading
breadth of metal and polymer technologies, and our world-class
application expertise to support our global customer base as they
increasingly adopt additive manufacturing in their production
environments.”
Dr. Graves concluded, "Looking to the future,
while we will continue to monitor opportunities for increased scale
that would accompany value-creating consolidation in our industry,
we are focused on executing our internal efficiency initiatives
while investing for the exciting growth opportunities we see ahead.
As we look to 2024, we are on a path to release a record number of
new products, including market-leading production printers for both
metal and polymer systems, exciting new materials for both
industrial and healthcare applications, and advanced software
offerings. With these new solutions, brought together through our
application experts who provide unique solutions to meet our
customers’ production needs, we are very well positioned to deliver
exciting growth and sustained profitability as the global headwinds
ultimately retreat. And, as we look to the horizon, our progress in
Regenerative Medicine offers yet another chapter to our growth
story. One that we believe will be truly exceptional.”
Summary of Third
Quarter ResultsRevenue for the third
quarter of 2023 decreased 6.4% to $123,791 compared to the same
period last year, and revenue on a constant currency basis
decreased 8.5%. The decline in revenue primarily reflects lower
sales to certain dental orthodontic market customers due to
macroeconomic factors that are negatively impacting demand.
Revenues in the third quarter 2023 also benefited by approximately
$4,500 from progress related to technical milestones in our
Regenerative Medicine business.
Healthcare Solutions revenue for the third
quarter 2023 decreased 18.3% to $52,429 compared to the same period
last year.
Industrial Solutions revenue for the third
quarter 2023 increased 4.9% to $71,362 compared to the same period
last year.
Gross profit margin for the third quarter 2023
was 44.7% compared to 39.8% in the same period last year. Non-GAAP
gross profit margin was 44.8% compared to 39.9% in the same period
last year. Gross profit margin increased primarily due to improved
operational efficiencies and favorable mix. Gross profit margin
also benefited from progress related to technical milestones in our
Regenerative Medicine business.
Net loss attributable to 3D Systems Corporation
decreased by $25,694 to a loss of $11,704 in the third quarter of
2023 compared to the same period in the prior year. The decrease in
net loss attributable to 3D Systems Corporation primarily reflects
a reduction in operating expenses, including the reduction in
earnout liability associated with a previous acquisition, lower
incentive compensation expense and operational efficiencies. The
decrease in net loss attributable to 3D Systems Corporation also
reflects favorable mix, progress related to technical milestones in
our Regenerative Medicine business and an increase in interest
income, partially offset by an impairment of intangible assets.
Adjusted EBITDA increased by $5,047 to $4,726 in
the third quarter of 2023 compared to the same period last year.
Despite the unfavorable impact of lower volumes from the dental
orthodontics markets, the increase in Adjusted EBITDA primarily
reflects improved operational efficiencies, favorable mix and lower
incentive compensation expense. Adjusted EBITDA also benefited from
progress related to technical milestones in our Regenerative
Medicine business.
Financial LiquidityAt September
30, 2023, the company had cash and cash equivalents and short-term
investments of $445,554, a decrease of $123,183 since December 31,
2022. The decrease resulted primarily due to cash used in
operations of $71,893, capital expenditures of $20,995,
acquisitions and other investments of $29,241, and taxes paid
related to net share settlement of equity awards of $4,752. At
September 30, 2023, the company had total debt net of deferred
financing costs of $451,520.
Q3 2023
Conference Call and WebcastThe company will host a
conference call and simultaneous webcast to discuss these results
tomorrow, which may be accessed as follows:
Date: November 8, 2023Time: 8:30 a.m. Eastern
TimeListen via webcast: www.3dsystems.com/investorParticipate via
telephone: 201-689-8345
A replay of the webcast will be available
approximately two hours after the live presentation at
www.3dsystems.com/investor.
Forward-Looking
StatementsCertain statements made in this release 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, uncertainties and other factors that may cause the
actual results, performance or achievements of the company to be
materially different from historical results or from any future
results or projections expressed or implied by such forward-looking
statements. In many cases, forward looking statements can be
identified by terms such as “believes,” “belief,” “expects,” “may,”
“will,” “estimates,” “intends,” “anticipates” or “plans” or the
negative of these terms or other comparable terminology.
Forward-looking statements are based upon management’s beliefs,
assumptions and current expectations and may include comments as to
the company’s beliefs and expectations as to future events and
trends affecting its business and are necessarily subject to
uncertainties, many of which are outside the control of the
company. The factors described under the headings “Forward-Looking
Statements” and “Risk Factors” in the company’s periodic filings
with the Securities and Exchange Commission, as well as other
factors, could cause actual results to differ materially from those
reflected or predicted in forward-looking statements. Although
management believes that the expectations reflected in the
forward-looking statements are reasonable, forward-looking
statements are not, and should not be relied upon as a guarantee of
future performance or results, nor will they necessarily prove to
be accurate indications of the times at which such performance or
results will be achieved. The forward-looking statements included
are made only as the date of the statement. 3D Systems undertakes
no obligation to update or revise any forward-looking statements
made by management or on its behalf, whether as a result of future
developments, subsequent events or circumstances or otherwise,
except as required by law.
Presentation of Information in this
Press Release3D Systems reports its financial results in
accordance with GAAP. Management also reviews and reports certain
non-GAAP measures, including: non-GAAP gross profit, non-GAAP gross
profit margin, non-GAAP diluted income (loss) per share, and
Adjusted EBITDA. These non-GAAP measures exclude certain items that
management does not view as part of 3D Systems’ core results as
they may be highly variable, may be unusual or infrequent, are
difficult to predict and can distort underlying business trends and
results. Management believes that the non-GAAP measures provide
useful additional insight into underlying business trends and
results and provide meaningful information regarding the comparison
of period-over-period results. Additionally, management uses the
non-GAAP measures for planning, forecasting and evaluating business
and financial performance, including allocating resources and
evaluating results relative to employee compensation targets. 3D
Systems’ non-GAAP measures are not calculated in accordance with or
as required by GAAP and may not be calculated in the same manner as
similarly titled measures used by other companies. These non-GAAP
measures should thus be considered as supplemental in nature and
not considered in isolation or as a substitute for the related
financial information prepared in accordance with GAAP.
To calculate the non-GAAP measures, 3D Systems
excludes the impact of the following items:
- amortization of intangible assets,
a non-cash expense, as 3D Systems’ intangible assets were primarily
acquired in connection with business combinations;
- costs incurred in connection with
acquisitions and divestitures, such as legal, consulting and
advisory fees;
- stock-based compensation expenses,
a non-cash expense;
- charges related to restructuring
and cost optimization plans, impairment charges, including
goodwill, and divestiture gains or losses;
- certain compensation expense
related to the 2021 Volumetric acquisition; and
- costs, including legal fees,
related to significant or unusual litigation matters.
Amortization of intangibles and acquisition and
divestiture-related costs are excluded from non-GAAP measures as
the timing and magnitude of business combination transactions are
not predictable, can vary significantly from period to period and
the purchase price allocated to amortizable intangible assets and
the related amortization period are unique to each acquisition.
Amortization of intangible assets will recur in future periods
until such intangible assets have been fully amortized. While
intangible assets contribute to the company’s revenue generation,
the amortization of intangible assets does not directly relate to
the sale of the company’s products or services. Additionally,
intangible assets amortization expense typically fluctuates based
on the size and timing of the company’s acquisition activity.
Accordingly, the company believes excluding the amortization of
intangible assets enhances the company’s and investors’ ability to
compare the company’s past financial performance with its current
performance and to analyze underlying business performance and
trends. Although stock-based compensation is a key incentive
offered to certain of our employees, the expense is non-cash in
nature, and we continue to evaluate our business performance
excluding stock-based compensation; therefore, it is excluded from
non-GAAP measures. Stock-based compensation expenses will recur in
future periods. Charges related to restructuring and cost
optimization plans, impairment charges, including goodwill,
divestiture gains or losses, and the costs, including legal fees,
related to significant or unusual litigation matters are excluded
from non-GAAP measures as the frequency and magnitude of these
activities may vary widely from period to period. Additionally,
impairment charges, including goodwill, are non-cash. Furthermore,
the company believes the costs, including legal fees, related to
significant or unusual litigation matters are not indicative of our
core business' operations. Finally, 3D Systems excludes contingent
consideration recorded as compensation expense related to the 2021
Volumetric acquisition from non-GAAP measures as management
evaluates financial performance excluding this expense, which is
viewed by management as similar to acquisition consideration.
The matters discussed above are tax effected, as
applicable, in calculating non-GAAP diluted income (loss) per
share.
Adjusted EBITDA, defined as net income, plus
income tax (provision) benefit, interest and other income
(expense), net, stock-based compensation expense, amortization of
intangible assets, depreciation expense, and other non-GAAP
adjustments, all as described above, is used by management to
evaluate performance and helps measure financial performance
period-over-period.
A reconciliation of GAAP to non-GAAP financial
measures is provided in the accompanying schedules.
3D Systems does not provide forward-looking
guidance for certain measures on a GAAP basis. The company is
unable to provide a quantitative reconciliation of forward-looking
non-GAAP gross profit margin, Adjusted EBITDA, and free cash flow
to the most directly comparable forward-looking GAAP measures
without unreasonable effort because certain items, including
litigation costs, acquisition expenses, stock-based compensation
expense, intangible assets amortization expense, restructuring
expenses, and goodwill impairment charges are difficult to predict
and estimate. These items are inherently uncertain and depend on
various factors, many of which are beyond the company’s control,
and as such, any associated estimate and its impact on GAAP
performance could vary materially.
About 3D Systems
More than 35 years ago, 3D Systems brought the
innovation of 3D printing to the manufacturing industry. Today, as
the leading additive manufacturing solutions partner, we bring
innovation, performance, and reliability to every interaction -
empowering our customers to create products and business models
never before possible. Thanks to our unique offering of hardware,
software, materials and services, each application-specific
solution is powered by the expertise of our application engineers
who collaborate with customers to transform how they deliver their
products and services. 3D Systems’ solutions address a variety of
advanced applications in healthcare and industrial Solutions
markets such as medical and dental, aerospace & defense,
automotive and durable goods. More information on the company is
available at www.3dsystems.com
Tables Follow
3D Systems CorporationUnaudited
Consolidated Balance SheetsSeptember 30,
2023 and December 31,
2022 |
|
(in thousands, except
par value) |
September 30, 2023 |
|
December 31, 2022 |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
445,554 |
|
|
$ |
388,134 |
|
Short-term investments |
|
— |
|
|
|
180,603 |
|
Accounts receivable, net of
reserves — $3,315 and $3,114 |
|
104,516 |
|
|
|
93,886 |
|
Inventories |
|
153,005 |
|
|
|
137,832 |
|
Prepaid expenses and other current assets |
|
36,638 |
|
|
|
33,790 |
|
Total current assets |
|
739,713 |
|
|
|
834,245 |
|
Property and equipment,
net |
|
63,535 |
|
|
|
58,072 |
|
Intangible assets, net |
|
71,536 |
|
|
|
90,230 |
|
Goodwill |
|
391,325 |
|
|
|
385,312 |
|
Right-of-use assets |
|
73,020 |
|
|
|
42,746 |
|
Deferred income tax asset |
|
7,042 |
|
|
|
7,038 |
|
Other assets |
|
46,583 |
|
|
|
28,970 |
|
Total assets |
$ |
1,392,754 |
|
|
$ |
1,446,613 |
|
LIABILITIES,
REDEEMABLE NON-CONTROLLING INTEREST AND EQUITY |
|
|
|
Current liabilities: |
|
|
|
Current lease liabilities |
$ |
10,684 |
|
|
$ |
9,036 |
|
Accounts payable |
|
46,108 |
|
|
|
53,826 |
|
Accrued and other liabilities |
|
43,575 |
|
|
|
55,571 |
|
Customer deposits |
|
6,793 |
|
|
|
6,911 |
|
Deferred revenue |
|
30,768 |
|
|
|
26,464 |
|
Total current liabilities |
|
137,928 |
|
|
|
151,808 |
|
Long-term debt, net of
deferred financing costs |
|
451,520 |
|
|
|
449,510 |
|
Long-term lease
liabilities |
|
71,295 |
|
|
|
41,779 |
|
Deferred income tax
liability |
|
10,178 |
|
|
|
7,631 |
|
Other liabilities |
|
20,367 |
|
|
|
44,181 |
|
Total liabilities |
|
691,288 |
|
|
|
694,909 |
|
Redeemable non-controlling
interest |
|
1,928 |
|
|
|
1,760 |
|
Stockholders’ equity: |
|
|
|
Common stock, $0.001 par
value, authorized 220,000 shares; shares issued 133,575 and 131,207
as of September 30, 2023 and December 31, 2022, respectively |
|
133 |
|
|
|
131 |
|
Additional paid-in
capital |
|
1,570,150 |
|
|
|
1,547,597 |
|
Accumulated deficit |
|
(813,982 |
) |
|
|
(743,962 |
) |
Accumulated other comprehensive loss |
|
(56,763 |
) |
|
|
(53,822 |
) |
Total stockholders’ equity |
|
699,538 |
|
|
|
749,944 |
|
Total liabilities, redeemable non-controlling interest and
stockholders’ equity |
$ |
1,392,754 |
|
|
$ |
1,446,613 |
|
3D Systems CorporationUnaudited
Consolidated Statements of Operations Three Months
Ended September 30,
2023 and
2022. |
|
|
Three Months Ended |
(in thousands, except
per share amounts) |
September 30, 2023 |
|
September 30, 2022 |
Revenue: |
|
|
|
Products |
$ |
80,415 |
|
|
$ |
96,337 |
|
Services |
|
43,376 |
|
|
|
35,916 |
|
Total revenue |
|
123,791 |
|
|
|
132,253 |
|
Cost of sales: |
|
|
|
Products |
|
47,427 |
|
|
|
58,042 |
|
Services |
|
21,014 |
|
|
|
21,541 |
|
Total cost of sales |
|
68,441 |
|
|
|
79,583 |
|
Gross profit |
|
55,350 |
|
|
|
52,670 |
|
Operating expenses: |
|
|
|
Selling, general and administrative |
|
33,355 |
|
|
|
65,579 |
|
Research and development |
|
21,982 |
|
|
|
20,796 |
|
Impairment of intangible assets |
|
13,597 |
|
|
|
— |
|
Total operating expenses |
|
68,934 |
|
|
|
86,375 |
|
Loss from operations |
|
(13,584 |
) |
|
|
(33,705 |
) |
Interest and other income
(expense), net |
|
2,602 |
|
|
|
(3,502 |
) |
(Loss) income before income
taxes |
|
(10,982 |
) |
|
|
(37,207 |
) |
(Provision) benefit for income
taxes |
|
(174 |
) |
|
|
(338 |
) |
(Loss) on equity method
investment, net of income taxes |
|
(605 |
) |
|
|
— |
|
Net (loss) income before
redeemable non-controlling interest |
|
(11,761 |
) |
|
|
(37,545 |
) |
Less: net (loss) income
attributable to redeemable non-controlling interest |
|
(57 |
) |
|
|
(147 |
) |
Net (loss) income attributable
to 3D Systems Corporation |
$ |
(11,704 |
) |
|
$ |
(37,398 |
) |
|
|
|
|
Net (loss) income per common
share: |
|
|
|
Basic |
$ |
(0.09 |
) |
|
$ |
(0.30 |
) |
Diluted |
$ |
(0.09 |
) |
|
$ |
(0.30 |
) |
|
|
|
|
Weighted average shares
outstanding: |
|
|
|
Basic |
|
130,263 |
|
|
|
127,991 |
|
Diluted |
|
130,263 |
|
|
|
127,991 |
|
3D Systems CorporationUnaudited
Consolidated Statements of Cash FlowsNine Months
Ended September 30,
2023, 2022 |
|
|
Nine Months Ended |
(in
thousands) |
September 30, 2023 |
|
September 30, 2022 |
Cash flows from operating
activities: |
|
|
|
Net (loss) income before redeemable non-controlling interest |
$ |
(70,169 |
) |
|
$ |
(97,342 |
) |
Adjustments to reconcile net (loss) income to net cash (used in)
provided by operating activities: |
|
|
|
Depreciation, amortization and accretion of debt discount |
|
27,054 |
|
|
|
28,264 |
|
Stock-based compensation |
|
15,140 |
|
|
|
31,508 |
|
Loss on short-term investments |
|
6 |
|
|
|
2,609 |
|
Non-cash operating lease expense |
|
6,552 |
|
|
|
4,796 |
|
Provision for inventory obsolescence and revaluation |
|
6,061 |
|
|
|
646 |
|
Provision for bad debts |
|
197 |
|
|
|
329 |
|
Loss (gain) on the disposition of businesses, property, equipment
and other assets |
|
51 |
|
|
|
(365 |
) |
Provision for deferred income taxes and reserve adjustments |
|
141 |
|
|
|
1,666 |
|
Loss on equity method investment |
|
747 |
|
|
|
— |
|
Asset impairment |
|
14,856 |
|
|
|
2,359 |
|
Changes in operating accounts: |
|
|
|
Accounts receivable |
|
(11,706 |
) |
|
|
(1,513 |
) |
Inventories |
|
(23,106 |
) |
|
|
(30,342 |
) |
Prepaid expenses and other current assets |
|
(2,790 |
) |
|
|
2,562 |
|
Accounts payable |
|
(7,717 |
) |
|
|
(1,666 |
) |
Deferred revenue and customer deposits |
|
1,351 |
|
|
|
(3,468 |
) |
Accrued and other liabilities |
|
(16,066 |
) |
|
|
12,387 |
|
All other operating activities |
|
(12,495 |
) |
|
|
(4,879 |
) |
Net cash (used in) provided by operating activities |
|
(71,893 |
) |
|
|
(52,449 |
) |
Cash flows from investing
activities: |
|
|
|
Purchases of property and equipment |
|
(20,995 |
) |
|
|
(17,055 |
) |
Purchases of short-term investments |
|
— |
|
|
|
(384,406 |
) |
Sales and maturities of short-term investments |
|
180,925 |
|
|
|
112,050 |
|
Acquisitions and other investments, net of cash acquired |
|
(29,241 |
) |
|
|
(84,705 |
) |
Net cash provided by (used in) investing activities |
|
130,689 |
|
|
|
(374,116 |
) |
Cash flows from financing
activities: |
|
|
|
Purchase of non-controlling interests |
|
— |
|
|
|
(2,300 |
) |
Taxes paid related to net-share settlement of equity awards |
|
(4,752 |
) |
|
|
(10,195 |
) |
Other financing activities |
|
(463 |
) |
|
|
(486 |
) |
Net cash (used in) provided by financing activities |
|
(5,215 |
) |
|
|
(12,981 |
) |
Effect of exchange rate
changes on cash, cash equivalents and restricted cash |
|
1,561 |
|
|
|
(7,911 |
) |
Net increase (decrease) in
cash, cash equivalents and restricted cash |
|
55,142 |
|
|
|
(447,457 |
) |
Cash, cash equivalents and
restricted cash at the beginning of the year(a) |
|
391,975 |
|
|
|
789,970 |
|
Cash, cash equivalents and
restricted cash at the end of the period (a) |
$ |
447,117 |
|
|
$ |
342,513 |
|
(a) The amounts for cash and cash equivalents and restricted
cash shown above include restricted cash of $118 and $114 as of
September 30, 2023 and December 31, 2022, respectively, which
are included in prepaid expenses and other current assets. In
addition, included in cash and cash equivalents and restricted cash
above as of September 30, 2023 and December 31, 2022 is $1,445
and $3,727, respectively, of restricted cash, which, is included in
other non-current assets.
Appendix3D Systems
CorporationUnaudited Reconciliations of GAAP to
Non-GAAP MeasuresThree Months Ended September
30, 2023, 2022 and Three Months Ended June
30, 2023.
Constant Currency Revenue
(4)
|
Three Months Ended September 30, |
|
Constant Currency(1) |
(in
thousands) |
|
2023 |
|
|
|
2022 |
|
|
$ Change |
|
% Change |
|
FX Effect(2) |
|
% Change(3) |
Healthcare Solutions |
$ |
52,429 |
|
|
|
64,203 |
|
|
$ |
(11,774 |
) |
|
|
(18.3 |
)% |
|
$ |
746 |
|
|
(19.5 |
)% |
Industrial Solutions |
|
71,362 |
|
|
|
68,050 |
|
|
|
3,312 |
|
|
|
4.9 |
% |
|
|
2,078 |
|
|
1.8 |
% |
Total revenue |
$ |
123,791 |
|
|
$ |
132,253 |
|
|
$ |
(8,462 |
) |
|
|
(6.4 |
)% |
|
$ |
2,824 |
|
|
(8.5 |
)% |
(1) To assist in the analysis of the Company’s revenue trends,
the Company estimated the impact of foreign exchange on
year-over-year revenue growth by recasting revenue for the three
months ended September 30, 2023 by applying the foreign exchange
rates used to translate 2022 non-US functional currency revenue to
2023 non-US functional currency revenue.(2) Represents the
estimated impact on "as reported" revenue due to changes in foreign
currency exchange rates(3) Represents the % increase or decrease in
revenue excluding the estimated "FX effect"(4)Amounts in table may
not foot due to rounding
Gross Profit and Gross Profit Margin
(1)
|
Three Months Ended September 30, |
|
Three Months Ended June 30, |
(in
thousands) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
Gross Profit |
|
Gross Profit Margin |
|
Gross Profit |
|
Gross ProfitMargin |
|
Gross Profit |
|
|
Gross Profit Margin |
|
GAAP |
$ |
55,350 |
|
|
|
44.7 |
% |
|
$ |
52,670 |
|
|
|
39.8 |
% |
|
$ |
50,016 |
|
|
|
39.0 |
% |
Amortization expense included in Cost of sales |
|
110 |
|
|
|
|
|
136 |
|
|
|
|
|
(122 |
) |
|
Non-GAAP(2) |
$ |
55,460 |
|
|
|
44.8 |
% |
|
$ |
52,806 |
|
|
|
39.9 |
% |
|
$ |
49,894 |
|
|
|
38.9 |
% |
(1)Amounts in table may not foot due to rounding(2) Calculated
as non-GAAP gross profit as a percentage of total revenue.
Appendix3D Systems
CorporationUnaudited Reconciliations of GAAP to
Non-GAAP MeasuresThree Months Ended September
30, 2023,
2022 and Three Months
Ended June
30, 2023.
Net (Loss) Income to Adjusted EBITDA
(1)
|
Three Months Ended September 30, |
|
Three Months Ended June 30, |
(in thousands) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
Net (loss) income
attributable to 3D Systems Corporation |
$ |
(11,704 |
) |
|
$ |
(37,398 |
) |
|
$ |
(28,895 |
) |
Interest (income) expense,
net |
|
(4,909 |
) |
|
|
(2,029 |
) |
|
|
(4,404 |
) |
Provision for income taxes |
|
174 |
|
|
|
338 |
|
|
|
222 |
|
Depreciation expense |
|
5,084 |
|
|
|
5,142 |
|
|
|
5,294 |
|
Amortization expense |
|
3,179 |
|
|
|
4,293 |
|
|
|
3,258 |
|
EBITDA |
|
(8,176 |
) |
|
|
(29,654 |
) |
|
|
(24,525 |
) |
Stock-based compensation
expense |
|
(3,142 |
) |
|
|
11,447 |
|
|
|
7,990 |
|
Acquisition and
divestiture-related expense |
|
(4,055 |
) |
|
|
2,728 |
|
|
|
1,512 |
|
Legal expense |
|
2,145 |
|
|
|
9,707 |
|
|
|
2,656 |
|
Restructuring expense |
|
1,504 |
|
|
|
67 |
|
|
|
3,518 |
|
Redeemable non-controlling
interest |
|
(57 |
) |
|
|
(147 |
) |
|
|
16 |
|
Loss on equity method
investment |
|
605 |
|
|
|
— |
|
|
|
142 |
|
Asset impairment charges |
|
13,595 |
|
|
|
2,909 |
|
|
|
603 |
|
Other non-operating (income)
expense, net |
|
2,307 |
|
|
|
2,622 |
|
|
|
1,190 |
|
Adjusted EBITDA |
$ |
4,726 |
|
|
$ |
(321 |
) |
|
$ |
(6,898 |
) |
(1) Amounts in table may not foot due to rounding
Appendix3D Systems
CorporationUnaudited Reconciliations of GAAP to
Non-GAAP MeasuresThree Months Ended September
30, 2023,
2022 and Three Months
Ended June
30, 2023.
Diluted (Loss) Income per Share
(1)
|
Three Months Ended September 30, |
|
Three Months Ended June 30, |
(in dollars) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
Diluted (loss) income per
share |
$ |
(0.09 |
) |
|
$ |
(0.30 |
) |
|
$ |
(0.22 |
) |
Stock-based compensation expense |
|
(0.02 |
) |
|
|
0.10 |
|
|
|
0.06 |
|
Amortization expense |
|
0.02 |
|
|
|
0.03 |
|
|
|
0.03 |
|
Acquisition and divestiture-related expense |
|
(0.03 |
) |
|
|
0.02 |
|
|
|
0.01 |
|
Legal Expenses |
|
0.02 |
|
|
|
0.08 |
|
|
|
0.02 |
|
Asset Impairment charges |
|
0.10 |
|
|
|
0.02 |
|
|
|
— |
|
Restructuring expense |
|
0.01 |
|
|
|
— |
|
|
|
0.03 |
|
Non-GAAP diluted (loss) income
per share |
$ |
0.01 |
|
|
$ |
(0.05 |
) |
|
$ |
(0.07 |
) |
(1)Amounts in table may not foot due to rounding
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