- Highest quarter on record for software in
terms of manufacturer registrations, platform engagement, and SaaS
contract commitments -
- Continued focus on path to profitability
driven by accelerating software rollout and scaling of enterprise
manufacturing solutions -
Shapeways Holdings, Inc. (NYSE: SHPW) (“Shapeways” or the
“Company”), a leader in the large and fast-growing digital
manufacturing industry, announced its results for the first quarter
ended March 31, 2023.
“Our first quarter results demonstrate the progress we are
making in executing on our strategic priorities, as we’ve
experienced the highest quarter on record for manufacturer
registrations, platform engagement, and SaaS contract commitments
on our MFG platform,” said Greg Kress, Shapeways’ Chief Executive
Officer. “We are starting to see the positive results of our
investments and focused strategic plan, centered on commercializing
our software and providing solutions for enterprise manufacturing
customers. Capitalizing on this momentum, we successfully launched
ordering and transaction capabilities on our software platform
which is enabling us to increase customer acquisition, retention,
and lifetime value by providing a seamless and efficient experience
for customers. These releases led to record SaaS sales bookings in
Q1 2023 which will convert to recognized revenue over the next 12
months. Additionally, we are seeing traction in signing new
multi-year manufacturing contracts and growing our pipeline with
enterprise manufacturing customers. We believe Shapeways offers a
compelling value proposition to a broad range of manufacturers,
from those seeking highly customized low volume parts produced via
additive manufacturing, to those seeking more efficiency in their
traditional manufacturing supply chain. Our increased traction and
cost discipline, supported by macro demand tailwinds, positions us
to achieve our objective of reaching profitability in the second
half of 2024.”
Business Updates
The Company made progress on each of its key initiatives:
- Path to profitability – The Company has made continued
progress towards achieving profitable growth over the long term.
Shapeways expects to recognize increased revenue growth from
higher-margin software sales over the next 12 months, and saw an
increase in multi-year manufacturing contracts with enterprise
customers in the first quarter, which the Company expects to
continue. Shapeways is closely managing expenses, including
optimizing its manufacturing process by completing the
consolidation of its U.S. facilities in Michigan. As of March 31,
2023, the Company had $32.5 million in cash and cash equivalents,
and short-term investments, which Shapeways believes provides the
Company with sufficient liquidity to support ongoing execution of
its strategic plan.
- Software segment product launch and growth – Shapeways
is seeing progress in customer uptake of its software offering. In
the first quarter, the Company launched a consolidated ordering and
transaction platform which is already driving increased customer
acquisition, retention, and lifetime value. First quarter SaaS
sales bookings were up more than 50% compared to the previous
quarter, and similar growth is expected in the second quarter. The
latest feature releases are just the start of how Shapeways’
software offering is expected to grow into a comprehensive platform
to enable manufacturers to unlock new revenue opportunities that
grow their businesses, find operational efficiencies to improve
profitability, increase customer satisfaction, and expand their
manufacturing capabilities.
- Enterprise manufacturing growth – In recent quarters,
Shapeways restructured its go-to-market approach and salesforce to
focus on high value enterprise opportunities. The Company is seeing
success with multi-year contracts and a growing pipeline,
particularly in its target industries including industrial,
medical, automotive and aerospace. Shapeways provides end-to-end
manufacturing services to a broad range of customers, from small
manufacturers who cannot invest in expensive technologies, to large
enterprises seeking quality and efficient solutions to specific
needs. In addition, Shapeways’ legacy e-commerce business has
stabilized, even as market competition has continued.
Financial Highlights
Three Months Ended March 31, 2023
- Revenue was $8.2 million compared to $7.6 million for the same
period in 2022
- Gross profit was $3.3 million compared to $3.4 million for the
same period in 2022
- Gross margin was 40% compared to 45% for the same period in
2022
- Net loss was $7.4 million compared to $4.0 million for the same
period in 2022
- Adjusted EBITDA was $(6.3) million compared to $(4.3) million
for the same period in 2022
Outlook
For the second quarter of 2023, the Company anticipates revenue
to be in the range of $8.3 million to $8.8 million.
Throughout 2023, the Company will maintain a strong emphasis on
achieving profitability and managing cash burn as it expands its
digital manufacturing platform by leveraging the investments made
in 2022. The investments are projected to lead to an increase in
sales in the long term with an anticipated improvement in margins
and low single digit quarterly cash burn in the second half of
2023.
Webcast and Conference Call Information
Shapeways will host a conference call and webcast on Monday, May
15, 2023, at 5:00 P.M. ET. To participate in the call, please dial
1-888-886-7786 or 1-416-764-8658 for international participants,
ten minutes before the scheduled start. Participants may also
access the call via live webcast by visiting the investors section
of the Company's website at shapeways.com.
If you cannot participate in the live event, a replay will be
available on Monday, May 15, 2023, beginning at 8:00 P.M. ET
through 11:59 P.M. ET, Monday, May 29, 2023. To access the replay,
please dial 1-844-512-2921, or 1-412-317-6671 for international
participants, and reference pass code 11636421.
About Shapeways
Shapeways is a leader in the large and fast-growing digital
manufacturing industry combining high quality, flexible on-demand
manufacturing powered by purpose-built proprietary software which
enables customers to rapidly transform digital designs into
physical products, globally. Shapeways makes industrial-grade
additive manufacturing accessible by fully digitizing the
end-to-end manufacturing process, and by providing a broad range of
solutions utilizing 12 additive manufacturing technologies and
approximately 120 materials and finishes, with the ability to
easily scale new innovation. To date, Shapeways has delivered over
24 million parts to 1 million customers in over 180 countries. To
learn more, please visit https://www.shapeways.com.
Special Note Regarding Forward-Looking Statements
Certain statements included in this press release are not
historical facts and are forward-looking statements for purposes of
the safe harbor provisions under the United States Private
Securities Litigation Reform Act of 1995. Forward-looking
statements generally are accompanied by words such as "believe,"
"may," "will," "estimate," "continue," "anticipate," "intend,"
"expect," "should," "would," "plan," "predict," "potential,"
"seem," "seek," "future," "outlook," and similar expressions that
predict or indicate future events or trends or that are not
statements of historical matters. All statements, other than
statements of present or historical fact included in this press
release, regarding the Company's strategy, future operations,
impact of recent acquisitions, outlook, ability and anticipated
timeline to achieve profitability, plans for compliance with the
NYSE's continued listing standards and prospects are
forward-looking statements. These statements are based on various
assumptions, whether or not identified in this press release, and
on the current expectations of management and are not predictions
of actual performance. These forward-looking statements are
provided for illustrative purposes only and are not intended to
serve as, and must not be relied on as, a guarantee, an assurance,
a prediction, or a definitive statement of fact or probability.
Actual events and circumstances are difficult or impossible to
predict and will differ from assumptions. Many actual events and
circumstances are beyond the control of the Company. These
forward-looking statements are subject to a number of risks and
uncertainties, including changes in domestic and foreign business,
financial, geopolitical, legal, and market conditions, including
supply chain disruptions and inflationary pressures; failure to
realize the anticipated benefits of acquisitions; difficulties
integrating acquired companies; ability to retain customers of
acquired companies or otherwise expand its customer base; the risk
that Shapeways has a history of losses and may not achieve or
maintain profitability in the future; the risk that the Company
faces significant competition and expects to face increasing
competition in many aspects; the risk that the digital
manufacturing industry is a relatively new and emerging market and
it is uncertain whether it will gain widespread acceptance; the
risk that the Company's new and existing solutions and software do
not achieve sufficient market acceptance; the loss of key
personnel; the inability to timely and effectively scale the
Company's platform; the ability to move the Company's manufacturing
capabilities without disruption or delay; and those factors
discussed under the heading "Risk Factors" in Shapeways’ most
recent Form 10-K, most recent Form 10-Q, and other documents
Shapeways has filed, or will file, with the SEC. If any of these
risks materialize or the Company’s assumptions prove incorrect,
actual results could differ materially from the results implied by
these forward-looking statements. There may be additional risks
that the Company does not presently know, or that the Company
currently believes are immaterial, that could also cause actual
results to differ from those contained in forward-looking
statements. In addition, forward-looking statements reflect the
Company's expectations, plans, or forecasts of future events and
views as of the date of this press release. The Company anticipates
that subsequent events and developments will cause its assessments
to change. However, while the Company may elect to update these
forward-looking statements at some point in the future, it
specifically disclaims any obligation to do so. These
forward-looking statements should not be relied upon as
representing the Company's assessments of any date subsequent to
the date of this press release. Accordingly, undue reliance should
not be placed upon forward-looking statements.
Non-GAAP Financial Information
In addition to Shapeways’ results determined in accordance with
accounting principles generally accepted in the United States of
America (“U.S. GAAP”), Shapeways believes that Adjusted EBITDA, a
non-U.S. GAAP financial measure, is useful in evaluating its
operational performance. Shapeways uses this non-U.S. GAAP
financial information to evaluate its ongoing operations and for
internal planning and forecasting purposes. Shapeways believes that
this non-U.S. GAAP financial information, when reviewed
collectively with its U.S. GAAP results, may be helpful to
investors in assessing its operating performance.
Shapeways defines Adjusted EBITDA as net loss excluding interest
expense, net of interest income, income tax benefit (expense),
depreciation and amortization, stock-based compensation, change in
fair value of earnout liability, change in fair value of warrant
liabilities, restructuring costs, acquisition costs and other
(which includes other income and non-operating gains and
losses).
Shapeways believes that the use of Adjusted EBITDA provides an
additional tool for investors to use in evaluating ongoing
operating results and trends because it eliminates the effect of
financing and capital expenditures and provides investors with a
means to compare its financial measures with those of comparable
companies, which may present similar non-U.S. GAAP financial
measures to investors. However, you should be aware that when
evaluating Adjusted EBITDA Shapeways may incur future expenses
similar to those excluded when calculating these measures. In
addition, Shapeways’ presentation of these measures should not be
construed as an inference that its future results will be
unaffected by unusual or non-recurring items.
Because of these limitations, Adjusted EBITDA should not be
considered in isolation or as a substitute for performance measures
calculated in accordance with U.S. GAAP. Shapeways compensates for
these limitations by relying primarily on its U.S. GAAP results and
using Adjusted EBITDA on a supplemental basis. You should review
the reconciliation of net loss to Adjusted EBITDA below and not
rely on any single financial measure to evaluate Shapeways’
business.
SHAPEWAYS HOLDINGS,
INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in thousands, except share and
per share amounts)
March 31, 2023
December 31, 2022
(Unaudited)
Assets
Current assets
Cash and cash equivalents
$
12,817
$
30,630
Restricted cash
140
139
Short-term investments
19,733
9,816
Accounts receivable
2,250
1,606
Inventory
1,406
1,307
Prepaid expenses and other current
assets
6,562
6,255
Total current assets
42,908
49,753
Property and equipment, net
16,492
15,627
Operating lease, right-of-use assets,
net
2,159
2,365
Goodwill
6,286
6,286
Intangible assets, net
5,209
5,398
Security deposits
99
99
Total assets
$
73,153
$
79,528
Liabilities and Stockholders’
Equity
Current liabilities
Accounts payable
$
1,505
$
2,354
Accrued expenses and other liabilities
6,296
5,950
Operating lease liabilities, current
708
719
Finance lease liability, current
49
—
Other financing obligations, current
37
—
Deferred revenue
1,061
972
Total current liabilities
9,656
9,995
Operating lease liabilities, net of
current portion
1,534
1,715
Deferred tax liabilities, net
45
27
Finance lease liability, noncurrent
227
—
Other financing obligations
459
—
Total liabilities
11,921
11,737
Commitments and contingencies
Stockholders’ equity
Preferred stock ($0.0001 par value;
10,000,000 shares authorized; none issued or outstanding as of
March 31, 2023 and December 31, 2022)
—
—
Common stock ($0.0001 par value;
120,000,000 shares authorized; 49,609,167 and 49,445,174 shares
issued and outstanding as of March 31, 2023 and December 31, 2022,
respectively)
5
5
Additional paid-in capital
202,167
201,362
Accumulated deficit
(140,435
)
(133,032
)
Accumulated other comprehensive loss
(505
)
(544
)
Total stockholders’ equity
61,232
67,791
Total liabilities and stockholders’
equity
$
73,153
$
79,528
SHAPEWAYS HOLDINGS,
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(UNAUDITED)
(in thousands, except share and
per share amounts)
Three Months Ended March
31,
2023
2022
Revenue, net
$
8,199
$
7,570
Cost of revenue
4,917
4,161
Gross profit
3,282
3,409
Operating expenses
Selling, general and administrative
8,481
6,145
Research and development
2,526
2,065
Total operating expenses
11,007
8,210
Loss from operations
(7,725
)
(4,801
)
Other income (expense)
Interest income
319
1
Interest expense
(21
)
—
Other income
114
1
Loss on disposal of assets
(72
)
—
Change in fair value of warrant
liabilities
—
762
Total other income (expense), net
340
764
Loss before income tax expense
(7,385
)
(4,037
)
Income tax expense
18
—
Net loss
(7,403
)
(4,037
)
Net loss per share:
Basic
$
(0.14
)
$
(0.08
)
Diluted
$
(0.14
)
$
(0.08
)
Weighted average common shares
outstanding:
Basic
53,410,652
53,142,447
Diluted
53,410,652
53,142,447
Other comprehensive income (loss)
Foreign currency translation
adjustment
39
(52
)
Comprehensive loss
$
(7,364
)
$
(4,089
)
SHAPEWAYS HOLDINGS,
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands, except share and
per share amounts)
Three Months Ended March
31,
2023
2022
Cash flows from operating
activities:
Net loss
$
(7,403
)
$
(4,037
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
442
182
Loss on disposal of assets
72
—
Stock-based compensation expense
805
312
Non-cash lease expense
252
131
Deferred income taxes
18
—
Net change in interest receivable on
short-term investments
37
—
Change in fair value of warrant
liabilities
—
(762
)
Change in operating assets and
liabilities:
Accounts receivable
(643
)
(134
)
Inventory
(94
)
24
Prepaid expenses and other assets
(473
)
(2,567
)
Accounts payable
(698
)
(193
)
Accrued expenses and other liabilities
334
851
Operating lease liabilities
(243
)
(154
)
Deferred revenue
89
(406
)
Net cash used in operating activities
(7,505
)
(6,753
)
Cash flows from investing
activities:
Purchases of property and equipment
(1,032
)
(8,258
)
Purchase of short-term investments
(9,769
)
—
Net cash used in investing activities
(10,801
)
(8,258
)
Cash flows from financing
activities:
Proceeds received from other finance
obligations
493
—
Principal payments on finance leases
(8
)
—
Payments on other finance obligations
(5
)
—
Proceeds from issuance of common stock
—
99
Net cash provided by financing
activities
480
99
Net change in cash and cash equivalents
and restricted cash
(17,826
)
(14,912
)
Effect of change in foreign currency
exchange rates on cash and cash equivalents and restricted cash
14
(74
)
Cash and cash equivalents and restricted
cash at beginning of period
30,769
79,819
Cash and cash equivalents and restricted
cash at end of period
$
12,957
$
64,833
Supplemental disclosure of cash and
non-cash transactions:
Cash paid for interest
$
21
$
—
Accrued acquisition of property and
equipment
$
79
$
—
SHAPEWAYS HOLDINGS,
INC.
RECONCILIATION OF GAAP TO
NON-GAAP MEASURES
For the Three Months Ended
March 31, 2023 and 2022
Three Months Ended March
31,
(Dollars in thousands)
2023
2022
Net loss
$
(7,403
)
$
(4,037
)
Interest expense, net
(298
)
—
Depreciation and amortization
442
182
Stock based compensation
805
312
Change in fair value of warrant
liabilities
—
(762
)
Income tax benefit
18
—
Restructuring costs
212
—
Other
(112
)
2
Adjusted EBITDA
$
(6,336
)
$
(4,303
)
SHAPEWAYS HOLDINGS,
INC.
QUARTERLY PERFORMANCE
(UNAUDITED)
(in thousands)
Three Months Ended,
March 31, 2022
June 30, 2022
September 30, 2022
December 31, 2022
March 31, 2023
Revenue
$
7,570
$
8,433
$
8,449
$
8,705
$
8,199
% YoY Growth
(14
)%
(5
)%
9
%
5
%
8
%
Gross Profit
$
3,409
$
3,642
$
3,691
$
3,556
$
3,282
Gross Margin
45
%
43
%
44
%
41
%
40
%
Adjusted EBITDA
$
(4,303
)
$
(4,270
)
$
(4,615
)
$
(5,826
)
$
(6,336
)
SHAPEWAYS HOLDINGS,
INC.
RECONCILIATION OF GAAP TO
NON-GAAP MEASURES
Three Months Ended,
(Dollars in thousands)
March 31, 2022
June 30, 2022
September 30, 2022
December 31, 2022
March 31, 2023
Net loss
$
(4,037
)
$
(4,674
)
$
(4,550
)
$
(6,960
)
$
(7,403
)
Interest expense, net
—
(1
)
(14
)
(126
)
(298
)
Depreciation and amortization
182
377
473
759
442
Stock based compensation
312
457
1,207
636
805
Change in fair value of earnout
liability
—
—
(1,784
)
(40
)
—
Change in fair value of warrant
liabilities
(762
)
(765
)
(31
)
(26
)
—
Income tax expense (benefit)
—
(1
)
3
29
18
Acquisition costs
—
373
—
—
—
Restructuring costs
—
—
190
8
212
Other
2
(36
)
(109
)
(106
)
(112
)
Adjusted EBITDA
$
(4,303
)
$
(4,270
)
$
(4,615
)
$
(5,826
)
$
(6,336
)
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