Protolabs Reports Financial Results for the Fourth Quarter and Full Year 2023
Revenue of $125 Million in the Fourth Quarter of 2023
Record Annual Revenue of $504 Million in 2023
MINNEAPOLIS–(BUSINESS WIRE)–Proto Labs, Inc. (“Protolabs” or the “Company”) (NYSE: PRLB), the world’s leading provider of digital manufacturing services, today announced financial results for the fourth quarter and full year ended December 31, 2023.
Fourth Quarter 2023 Financial Highlights:
- Revenue was $125.0 million, an 8.2% increase compared to the fourth quarter of 2022.
- Revenue generated from Protolabs Network was $22.5 million, a 52.0% increase compared to the fourth quarter of 2022.
- Net income was $7.0 million, or $0.27 per diluted share, compared to a net loss of $4.24 per diluted share in the fourth quarter of 2022.
- Non-GAAP net income was $11.8 million, or $0.46 per diluted share, compared to $7.0 million, or $0.26 per diluted share, in the fourth quarter of 2022. See “Non-GAAP Financial Measures” below.
- EBITDA was $18.3 million, or 14.6% of revenue. See “Non-GAAP Financial Measures” below.
- Adjusted EBITDA was $22.3 million, or 17.8% of revenue, compared to $14.5 million, or 12.5% of revenue, in the fourth quarter of 2022. See “Non-GAAP Financial Measures” below.
Full Year 2023 Financial Highlights:
- Revenue was a record $503.9 million, representing a 3.2% increase over 2022.
- Revenue generated from Protolabs Network was $82.6 million in 2023, representing growth of 70.4% over the prior year.
- Net income was $17.2 million, or $0.66 per diluted share, compared to a net loss of $3.77 per diluted share in 2022.
- Non-GAAP net income was $41.6 million, or $1.59 per diluted share, compared to $41.1 million, or $1.50 per diluted share, in 2022. See “Non-GAAP Financial Measures” below.
- EBITDA was $63.2 million, or 12.6% of revenue, in 2023. See “Non-GAAP Financial Measures” below.
- Adjusted EBITDA was $83.2 million, or 16.5% of revenue, in 2023. See “Non-GAAP Financial Measures” below.
- Cash flow from operations was $73.3 million in 2023, compared to $62.1 million in 2022.
- The Company repurchased $44.0 million in common shares during the year.
- Protolabs served 53,464 customer contacts during the year.
“We capped off a record year with strong fourth quarter results, driven by consistent execution against our priorities,” said Rob Bodor, President and Chief Executive Officer. “For the full year, we generated revenue above $500 million for the first time in our 25-year history, while delivering improved earnings, robust cash flow, and substantial capital returned to shareholders. We are encouraged by our strong finish to 2023, and we believe we have the right strategy and priorities in place to continue our momentum throughout 2024. We remain focused on driving positive global impact, maintaining our industry-leading financial model, and increasing value for our shareholders.”
Dan Schumacher, Chief Financial Officer, commented, “Along with record revenue in 2023, we significantly improved profitability in both the digital factory and the digital network. We generated an industry-leading $73 million in cash from operations, and we paid 97% of our free cash flows to shareholders through share repurchases.”
First Quarter 2024 Outlook
The Company will continue to provide financial guidance on a quarterly basis due to the quick-turn nature of the business and continued uncertainty in global manufacturing.
For the first quarter of 2024, the Company expects to generate revenue between $120 million and $128 million. This guidance reflects a softer start to 2024, due to December 2023 and early January 2024 order levels being lower than historical periods. However, recent performance has been more in line with historical trends, and our guidance assumes that will continue through the end of March.
The Company expects first quarter 2024 diluted net income per share between $0.09 and $0.17, and non-GAAP diluted net income per share between $0.26 and $0.34. See “Non-GAAP Financial Measures” below.
Non-GAAP Financial Measures
The Company has included non-GAAP revenue growth by region and by service line that excludes the impact of changes in foreign currency exchange rates (collectively, “non-GAAP revenue growth”). Management believes these metrics, when viewed in conjunction with the comparable GAAP metrics, are useful in evaluating the underlying business trends and ongoing operating performance of the Company.
The Company has included earnings before interest, taxes, depreciation and amortization (“EBITDA”) and EBITDA, adjusted for stock-based compensation expense, unrealized (gain) loss on foreign currency, goodwill impairment and costs related to the Japan closure activities (collectively, “Adjusted EBITDA”), in this press release to provide investors with additional information regarding the Company’s financial results. The Company has also included earnings before interest, taxes, depreciation and amortization margin (“EBITDA margin”) and EBITDA margin, adjusted for stock-based compensation expense, unrealized (gain) loss on foreign currency, goodwill impairment and costs related to the Japan closure activities (collectively, “Adjusted EBITDA margin”), in this press release to provide investors with additional information regarding the Company’s financial results.
The Company has included non-GAAP gross margin, adjusted for stock-based compensation expense and amortization expense in this press release to provide investors with additional information regarding the Company’s financial results.
The Company has included non-GAAP operating margin, adjusted for stock-based compensation expense, amortization expense, goodwill impairment and costs related to the closure of Japan (collectively, “non-GAAP operating margin”), in this press release to provide investors with additional information regarding the Company’s financial results.
The Company has included non-GAAP gross margin excluding Japan, adjusted for stock-based compensation expense and amortization expense in this press release to provide investors with additional information regarding the Company’s financial results. The Company has included non-GAAP operating margin excluding Japan, adjusted for stock-based compensation expense, amortization expense, goodwill impairment and costs related to the Japan closure activities (collectively, “non-GAAP operating margin excluding Japan”), in this press release to provide investors with additional information regarding the Company’s financial results.
The Company has included non-GAAP net income, adjusted for stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency, goodwill impairment and costs related to the closure of Japan (collectively, “non-GAAP net income”), in this press release to provide investors with additional information regarding the Company’s financial results.
The Company has provided below reconciliations of GAAP to non-GAAP net income, non-GAAP gross margin, non-GAAP gross margin excluding Japan, non-GAAP operating margin, non-GAAP operating margin excluding Japan, non-GAAP revenue growth by region and by service, and Adjusted EBITDA and Adjusted EBITDA margin, the most directly comparable measures calculated and presented in accordance with GAAP. These non-GAAP measures are used by the Company’s management and board of directors to understand and evaluate operating performance and trends and provide useful measures for period-to-period comparisons of the Company’s business. Accordingly, the Company believes that these non-GAAP measures provide useful information to investors and others in understanding and evaluating operating results in the same manner as our management and board of directors.
Conference Call
The Company has scheduled a conference call to discuss its fourth quarter and full year 2023 financial results and first quarter 2024 outlook today, February 9, 2024 at 8:30 a.m. EST. To access the call in the U.S. please dial 877-709-8150 or outside the U.S. dial 201-689-8354 at least five minutes prior to the 8:30 a.m. EST start time. No participant code is required. A simultaneous webcast of the call and accompanying presentation will be available via the investor relations section of the Protolabs website and the following link: https://edge.media-server.com/mmc/p/vyeizwtx/. A replay will be available for 14 days following the call on the investor relations section of the Protolabs website.
About Protolabs
Protolabs is the fastest and most comprehensive digital manufacturing service in the world. Our digital factories produce low-volume parts in days while Protolabs Network unlocks advanced capabilities and volume pricing through its highly vetted manufacturing partners. The result? One manufacturing source—from prototyping to production—for product developers, engineers, and supply chain teams across the globe. See what’s next at protolabs.com.
Forward-Looking Statements
Statements contained in this press release regarding matters that are not historical or current facts are “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors which may cause the results of Protolabs to be materially different than those expressed or implied in such statements. Certain of these risk factors and others are described in the “Risk Factors” section within reports filed with the SEC. Other unknown or unpredictable factors also could have material adverse effects on Protolabs’ future results. The forward-looking statements included in this press release are made only as of the date hereof. Protolabs cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, Protolabs expressly disclaims any intent or obligation to update any forward-looking statements to reflect subsequent events or circumstances.
|
Proto Labs, Inc. Condensed Consolidated Balance Sheets (In thousands) |
|||||
|
|
|
|
|
||
|
|
December 31, |
|
December 31, |
||
|
|
(Unaudited) |
|
|
||
|
Assets |
|
|
|
||
|
Current assets |
|
|
|
||
|
Cash and cash equivalents |
$ |
83,790 |
|
$ |
56,558 |
|
Short-term marketable securities |
|
19,013 |
|
|
23,568 |
|
Accounts receivable, net |
|
72,848 |
|
|
76,225 |
|
Inventory |
|
13,657 |
|
|
13,578 |
|
Income taxes receivable |
|
2,228 |
|
|
4,042 |
|
Prepaid expenses and other current assets |
|
9,124 |
|
|
12,597 |
|
Total current assets |
|
200,660 |
|
|
186,568 |
|
|
|
|
|
||
|
Property and equipment, net |
|
253,655 |
|
|
257,785 |
|
Goodwill |
|
273,991 |
|
|
273,991 |
|
Other intangible assets, net |
|
25,584 |
|
|
31,250 |
|
Long-term marketable securities |
|
8,019 |
|
|
26,419 |
|
Operating lease assets |
|
4,628 |
|
|
3,844 |
|
Finance lease assets |
|
960 |
|
|
17,532 |
|
Other long-term assets |
|
4,856 |
|
|
4,779 |
|
Total assets |
$ |
772,353 |
|
$ |
802,168 |
|
|
|
|
|
||
|
Liabilities and shareholders’ equity |
|
|
|
||
|
Current liabilities |
|
|
|
||
|
Accounts payable |
$ |
15,636 |
|
$ |
17,356 |
|
Accrued compensation |
|
15,292 |
|
|
12,743 |
|
Accrued liabilities and other |
|
16,872 |
|
|
22,384 |
|
Current operating lease liabilities |
|
1,585 |
|
|
1,561 |
|
Current finance lease liabilities |
|
296 |
|
|
17,537 |
|
Total current liabilities |
|
49,681 |
|
|
71,581 |
|
|
|
|
|
||
|
Long-term operating lease liabilities |
|
3,008 |
|
|
2,255 |
|
Long-term finance lease liabilities |
|
595 |
|
|
— |
|
Long-term deferred tax liabilities |
|
18,742 |
|
|
26,322 |
|
Other long-term liabilities |
|
5,032 |
|
|
4,362 |
|
|
|
|
|
||
|
Shareholders’ equity |
|
695,295 |
|
|
697,648 |
|
Total liabilities and shareholders’ equity |
$ |
772,353 |
|
$ |
802,168 |
|
|
|
|
|
||
|
|
|
|
|
||
|
Proto Labs, Inc. Condensed Consolidated Statements of Operations (In thousands, except share and per share amounts) (Unaudited) |
||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||
|
|
Three Months Ended |
|
Twelve Months Ended |
|||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|||||||
|
Revenue |
|
|
|
|
|
|
|
|||||||
|
Injection Molding |
$ |
51,486 |
|
$ |
44,885 |
|
|
$ |
203,941 |
|
|
$ |
200,578 |
|
|
CNC Machining |
|
48,905 |
|
|
46,563 |
|
|
|
198,222 |
|
|
|
188,372 |
|
|
3D Printing |
|
20,339 |
|
|
19,530 |
|
|
|
84,291 |
|
|
|
78,988 |
|
|
Sheet Metal |
|
4,062 |
|
|
4,432 |
|
|
|
16,540 |
|
|
|
19,498 |
|
|
Other Revenue |
|
256 |
|
|
197 |
|
|
|
883 |
|
|
|
962 |
|
|
Total Revenue |
|
125,048 |
|
|
115,607 |
|
|
|
503,877 |
|
|
|
488,398 |
|
|
|
|
|
|
|
|
|
|
|||||||
|
Cost of revenue |
|
69,236 |
|
|
67,000 |
|
|
|
281,884 |
|
|
|
272,933 |
|
|
Gross profit |
|
55,812 |
|
|
48,607 |
|
|
|
221,993 |
|
|
|
215,465 |
|
|
|
|
|
|
|
|
|
|
|||||||
|
Operating expenses |
|
|
|
|
|
|
|
|||||||
|
Marketing and sales |
|
21,825 |
|
|
20,517 |
|
|
|
87,688 |
|
|
|
82,752 |
|
|
Research and development |
|
9,488 |
|
|
8,906 |
|
|
|
40,135 |
|
|
|
38,222 |
|
|
General and administrative |
|
16,075 |
|
|
17,774 |
|
|
|
65,788 |
|
|
|
67,544 |
|
|
Goodwill impairment |
|
— |
|
|
118,008 |
|
|
|
— |
|
|
|
118,008 |
|
|
Closure of Japan business |
|
29 |
|
|
534 |
|
|
|
215 |
|
|
|
6,922 |
|
|
Total operating expenses |
|
47,417 |
|
|
165,739 |
|
|
|
193,826 |
|
|
|
313,448 |
|
|
Income (loss) from operations |
|
8,395 |
|
|
(117,132 |
) |
|
|
28,167 |
|
|
|
(97,983 |
) |
|
Other income (loss), net |
|
1,543 |
|
|
429 |
|
|
|
(215 |
) |
|
|
106 |
|
|
Income (loss) before income taxes |
|
9,938 |
|
|
(116,703 |
) |
|
|
27,952 |
|
|
|
(97,877 |
) |
|
Provision for income taxes |
|
2,948 |
|
|
(1,638 |
) |
|
|
10,732 |
|
|
|
5,585 |
|
|
Net income (loss) |
$ |
6,990 |
|
$ |
(115,065 |
) |
|
$ |
17,220 |
|
|
$ |
(103,462 |
) |
|
|
|
|
|
|
|
|
|
|||||||
|
Net income (loss) per share: |
|
|
|
|
|
|
|
|||||||
|
Basic |
$ |
0.27 |
|
$ |
(4.24 |
) |
|
$ |
0.66 |
|
|
$ |
(3.77 |
) |
|
Diluted |
$ |
0.27 |
|
$ |
(4.24 |
) |
|
$ |
0.66 |
|
|
$ |
(3.77 |
) |
|
|
|
|
|
|
|
|
|
|||||||
|
Shares used to compute net income (loss) per share: |
|
|
|
|
|
|
|
|||||||
|
Basic |
|
25,820,802 |
|
|
27,136,821 |
|
|
|
26,186,533 |
|
|
|
27,409,838 |
|
|
Diluted |
|
25,889,004 |
|
|
27,136,821 |
|
|
|
26,223,498 |
|
|
|
27,409,838 |
|
|
|
|
|
|
|
|
|
|
|||||||
|
Proto Labs, Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) |
|||||||
|
|
|
|
|
||||
|
|
Twelve Months Ended |
||||||
|
|
2023 |
|
2022 |
||||
|
Operating activities |
|
|
|
||||
|
Net income (loss) |
$ |
17,220 |
|
|
$ |
(103,462 |
) |
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
||||
|
Depreciation and amortization |
|
37,528 |
|
|
|
39,425 |
|
|
Stock-based compensation expense |
|
15,989 |
|
|
|
17,545 |
|
|
Deferred taxes |
|
(7,656 |
) |
|
|
(9,499 |
) |
|
Interest on finance lease obligations |
|
1,055 |
|
|
|
— |
|
|
Loss on impairment of goodwill |
|
— |
|
|
|
118,008 |
|
|
Loss on foreign currency translation |
|
3,906 |
|
|
|
— |
|
|
Impairments related to closure of Japan business |
|
— |
|
|
|
2,842 |
|
|
Gain on disposal of property and equipment |
|
(498 |
) |
|
|
(1,211 |
) |
|
Other |
|
154 |
|
|
|
35 |
|
|
Changes in operating assets and liabilities |
|
5,576 |
|
|
|
(1,604 |
) |
|
Net cash provided by operating activities |
|
73,274 |
|
|
|
62,079 |
|
|
|
|
|
|
||||
|
Investing activities |
|
|
|
||||
|
Purchases of property, equipment and other capital assets |
|
(28,116 |
) |
|
|
(21,686 |
) |
|
Proceeds from sales of property, equipment and other capital assets |
|
699 |
|
|
|
4,108 |
|
|
Purchases of marketable securities |
|
— |
|
|
|
(46,872 |
) |
|
Purchases of other assets and investments |
|
(1,000 |
) |
|
|
— |
|
|
Proceeds from sales of marketable securities |
|
— |
|
|
|
1,998 |
|
|
Proceeds from call redemptions and maturities of marketable securities |
|
23,865 |
|
|
|
19,360 |
|
|
Net cash used in investing activities |
|
(4,552 |
) |
|
|
(43,092 |
) |
|
|
|
|
|
||||
|
Financing activities |
|
|
|
||||
|
Proceeds from exercises of stock options |
|
3,835 |
|
|
|
3,950 |
|
|
Purchases of shares withheld for tax obligations |
|
(1,436 |
) |
|
|
(1,682 |
) |
|
Repurchases of common stock |
|
(43,951 |
) |
|
|
(29,659 |
) |
|
Principal repayments of finance lease obligations |
|
(306 |
) |
|
|
(531 |
) |
|
Net cash used in financing activities |
|
(41,858 |
) |
|
|
(27,922 |
) |
|
Effect of exchange rate changes on cash and cash equivalents |
|
368 |
|
|
|
(436 |
) |
|
Net increase (decrease) in cash and cash equivalents |
|
27,232 |
|
|
|
(9,371 |
) |
|
Cash and cash equivalents, beginning of period |
|
56,558 |
|
|
|
65,929 |
|
|
Cash and cash equivalents, end of period |
$ |
83,790 |
|
|
$ |
56,558 |
|
|
|
|
|
|
||||
|
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 |
|
Twelve Months Ended |
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
|
Non-GAAP net income (loss), adjusted for stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency, goodwill impairment and costs related to Japan closure activities |
|
|
|
|
|
|
|
||||||||
|
GAAP net income (loss) |
$ |
6,990 |
|
|
$ |
(115,065 |
) |
|
$ |
17,220 |
|
|
$ |
(103,462 |
) |
|
Add back: |
|
|
|
|
|
|
|
||||||||
|
Stock-based compensation expense |
|
4,178 |
|
|
|
4,210 |
|
|
|
15,989 |
|
|
|
17,545 |
|
|
Amortization expense |
|
1,457 |
|
|
|
1,514 |
|
|
|
5,928 |
|
|
|
6,096 |
|
|
Unrealized (gain) loss on foreign currency |
|
(211 |
) |
|
|
(490 |
) |
|
|
(125 |
) |
|
|
252 |
|
|
Goodwill impairment |
|
— |
|
|
|
118,008 |
|
|
|
— |
|
|
|
118,008 |
|
|
Costs related to Japan closure activities |
|
29 |
|
|
|
534 |
|
|
|
4,122 |
|
|
|
6,922 |
|
|
Total adjustments 1 |
|
5,453 |
|
|
|
123,776 |
|
|
|
25,914 |
|
|
|
148,823 |
|
|
Income tax benefits on adjustments 2 |
|
(609 |
) |
|
|
(1,753 |
) |
|
|
(1,540 |
) |
|
|
(4,271 |
) |
|
Non-GAAP net income |
$ |
11,834 |
|
|
$ |
6,958 |
|
|
$ |
41,594 |
|
|
$ |
41,090 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
Non-GAAP net income per share: |
|
|
|
|
|
|
|
||||||||
|
Basic |
$ |
0.46 |
|
|
$ |
0.26 |
|
|
$ |
1.59 |
|
|
$ |
1.50 |
|
|
Diluted |
$ |
0.46 |
|
|
$ |
0.26 |
|
|
$ |
1.59 |
|
|
$ |
1.50 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Shares used to compute non-GAAP net income per share: |
|
|
|
|
|
|
|
||||||||
|
Basic |
|
25,820,802 |
|
|
|
27,136,821 |
|
|
|
26,186,533 |
|
|
|
27,409,838 |
|
|
Diluted |
|
25,889,004 |
|
|
|
27,151,991 |
|
|
|
26,223,498 |
|
|
|
27,433,257 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
1 |
Stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency, goodwill impairment and costs related to Japan closure activities were included in the following GAAP consolidated statement of operations categories: |
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||
|
|
|
|
|
|
|
|
|
||||||
|
Cost of revenue |
$ |
794 |
|
|
$ |
840 |
|
|
$ |
3,210 |
|
$ |
3,541 |
|
|
|
|
|
|
|
|
|
||||||
|
Marketing and sales |
|
916 |
|
|
|
816 |
|
|
|
3,424 |
|
|
3,295 |
|
Research and development |
|
669 |
|
|
|
488 |
|
|
|
2,557 |
|
|
2,190 |
|
General and administrative |
|
3,256 |
|
|
|
3,580 |
|
|
|
12,727 |
|
|
14,615 |
|
Goodwill impairment |
|
– |
|
|
|
118,008 |
|
|
|
– |
|
|
118,008 |
|
Closure of Japan business |
|
29 |
|
|
|
534 |
|
|
|
215 |
|
|
6,922 |
|
Total operating expenses |
|
4,870 |
|
|
|
123,426 |
|
|
|
18,923 |
|
|
145,030 |
|
|
|
|
|
|
|
|
|
||||||
|
Other income (loss), net |
|
(211 |
) |
|
|
(490 |
) |
|
|
3,781 |
|
|
252 |
|
Total adjustments |
$ |
5,453 |
|
|
$ |
123,776 |
|
|
$ |
25,914 |
|
$ |
148,823 |
|
|
|
|
|
|
|
|
|
||||||
|
2 |
For the three and twelve months ended December 31, 2023 and 2022, income tax effects were calculated using the effective tax rate for the relevant jurisdictions. The Company’s non-GAAP tax rates differ from its GAAP tax rates due primarily to the mix of activity incurred in domestic and foreign tax jurisdictions and removing effective tax rate benefits from stock-based compensation activity in the quarter. |
|
|
Proto Labs, Inc. Reconciliation of GAAP to Non-GAAP Gross Margin (In thousands) (Unaudited) |
|||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
|
Revenue |
$ |
125,048 |
|
|
$ |
115,607 |
|
|
$ |
503,877 |
|
|
$ |
488,398 |
|
|
Gross profit |
|
55,812 |
|
|
|
48,607 |
|
|
|
221,993 |
|
|
|
215,465 |
|
|
GAAP gross margin |
|
44.6 |
% |
|
|
42.0 |
% |
|
|
44.1 |
% |
|
|
44.1 |
% |
|
Add back: |
|
|
|
|
|
|
|
||||||||
|
Stock-based compensation expense |
|
452 |
|
|
|
498 |
|
|
|
1,840 |
|
|
|
2,172 |
|
|
Amortization expense |
|
342 |
|
|
|
342 |
|
|
|
1,370 |
|
|
|
1,369 |
|
|
Total adjustments |
|
794 |
|
|
|
840 |
|
|
|
3,210 |
|
|
|
3,541 |
|
|
Non-GAAP gross profit |
$ |
56,606 |
|
|
$ |
49,447 |
|
|
$ |
225,203 |
|
|
$ |
219,006 |
|
|
Non-GAAP gross margin |
|
45.3 |
% |
|
|
42.8 |
% |
|
|
44.7 |
% |
|
|
44.8 |
% |
|
|
|
|
|
|
|
|
|
||||||||
|
Proto Labs, Inc. Reconciliation of GAAP to Non-GAAP Gross Margin Excluding Japan (In thousands) (Unaudited) |
|||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
|
Revenue |
$ |
125,048 |
|
|
$ |
115,607 |
|
|
$ |
503,877 |
|
|
$ |
488,398 |
|
|
Revenue excluding Japan |
$ |
125,048 |
|
|
$ |
115,607 |
|
|
$ |
503,877 |
|
|
$ |
480,169 |
|
|
Gross profit |
|
55,812 |
|
|
|
48,607 |
|
|
|
221,993 |
|
|
|
215,465 |
|
|
GAAP gross margin |
|
44.6 |
% |
|
|
42.0 |
% |
|
|
44.1 |
% |
|
|
44.1 |
% |
|
Less: Japan gross profit |
|
— |
|
|
|
(93 |
) |
|
|
— |
|
|
|
3,057 |
|
|
Gross Profit excluding Japan |
|
55,812 |
|
|
|
48,700 |
|
|
|
221,993 |
|
|
|
212,408 |
|
|
GAAP gross margin excluding Japan |
|
44.6 |
% |
|
|
42.1 |
% |
|
|
44.1 |
% |
|
|
44.2 |
% |
|
Add back: |
|
|
|
|
|
|
|
||||||||
|
Stock-based compensation expense |
|
452 |
|
|
|
498 |
|
|
|
1,840 |
|
|
|
2,172 |
|
|
Amortization expense |
|
342 |
|
|
|
342 |
|
|
|
1,370 |
|
|
|
1,369 |
|
|
Less: |
|
|
|
|
|
|
|
||||||||
|
Japan stock-based compensation expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
61 |
|
|
Japan amortization expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Total adjustments |
|
794 |
|
|
|
840 |
|
|
|
3,210 |
|
|
|
3,480 |
|
|
Non-GAAP gross profit excluding Japan |
$ |
56,606 |
|
|
$ |
49,540 |
|
|
$ |
225,203 |
|
|
$ |
215,888 |
|
|
Non-GAAP gross margin excluding Japan |
|
45.3 |
% |
|
|
42.9 |
% |
|
|
44.7 |
% |
|
|
45.0 |
% |
|
|
|
|
|
|
|
|
|
||||||||
|
Proto Labs, Inc. Reconciliation of GAAP to Non-GAAP Operating Margin (In thousands) (Unaudited) |
|||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
|
Revenue |
$ |
125,048 |
|
|
$ |
115,607 |
|
|
$ |
503,877 |
|
|
$ |
488,398 |
|
|
Income (loss) from operations |
|
8,395 |
|
|
|
(117,132 |
) |
|
|
28,167 |
|
|
|
(97,983 |
) |
|
GAAP operating margin |
|
6.7 |
% |
|
|
(101.3 |
%) |
|
|
5.6 |
% |
|
|
(20.1 |
%) |
|
Add back: |
|
|
|
|
|
|
|
||||||||
|
Stock-based compensation expense |
|
4,178 |
|
|
|
4,210 |
|
|
|
15,989 |
|
|
|
17,545 |
|
|
Amortization expense |
|
1,457 |
|
|
|
1,514 |
|
|
|
5,928 |
|
|
|
6,096 |
|
|
Goodwill impairment |
|
— |
|
|
|
118,008 |
|
|
|
— |
|
|
|
118,008 |
|
|
Costs related to Japan closure activities |
|
29 |
|
|
|
534 |
|
|
|
215 |
|
|
|
6,922 |
|
|
Total adjustments |
|
5,664 |
|
|
|
124,266 |
|
|
|
22,132 |
|
|
|
148,571 |
|
|
Non-GAAP income from operations |
$ |
14,059 |
|
|
$ |
7,134 |
|
|
$ |
50,299 |
|
|
$ |
50,588 |
|
|
Non-GAAP operating margin |
|
11.2 |
% |
|
|
6.2 |
% |
|
|
10.0 |
% |
|
|
10.4 |
% |
|
|
|
|
|
|
|
|
|
||||||||
|
Proto Labs, Inc. Reconciliation of GAAP to Non-GAAP Operating Margin Excluding Japan (In thousands) (Unaudited) |
|||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
|
Revenue |
$ |
125,048 |
|
|
$ |
115,607 |
|
|
$ |
503,877 |
|
|
$ |
488,398 |
|
|
Revenue excluding Japan |
$ |
125,048 |
|
|
$ |
115,607 |
|
|
$ |
503,877 |
|
|
$ |
480,169 |
|
|
Income (loss) from operations |
|
8,395 |
|
|
|
(117,132 |
) |
|
|
28,167 |
|
|
|
(97,983 |
) |
|
GAAP operating margin |
|
6.7 |
% |
|
|
(101.3 |
%) |
|
|
5.6 |
% |
|
|
(20.1 |
%) |
|
Less: Japan (loss) income from operations |
|
(18 |
) |
|
|
(594 |
) |
|
|
(499 |
) |
|
|
(1,424 |
) |
|
Income from operations excluding Japan |
|
8,413 |
|
|
|
(116,538 |
) |
|
|
28,666 |
|
|
|
(96,559 |
) |
|
GAAP operating margin excluding Japan |
|
6.7 |
% |
|
|
(100.8 |
%) |
|
|
5.7 |
% |
|
|
(20.1 |
%) |
|
Add back: |
|
|
|
|
|
|
|
||||||||
|
Stock-based compensation expense |
|
4,178 |
|
|
|
4,210 |
|
|
|
15,989 |
|
|
|
17,545 |
|
|
Amortization expense |
|
1,457 |
|
|
|
1,514 |
|
|
|
5,928 |
|
|
|
6,096 |
|
|
Goodwill impairment |
|
— |
|
|
|
118,008 |
|
|
|
— |
|
|
|
118,008 |
|
|
Costs related to Japan closure activities |
|
29 |
|
|
|
534 |
|
|
|
215 |
|
|
|
6,922 |
|
|
Less: |
|
|
|
|
|
|
|
||||||||
|
Japan stock-based compensation expense |
|
— |
|
|
|
20 |
|
|
|
17 |
|
|
|
406 |
|
|
Japan amortization expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Total adjustments |
|
5,664 |
|
|
|
124,246 |
|
|
|
22,115 |
|
|
|
148,165 |
|
|
Non-GAAP income from operations excluding Japan |
$ |
14,077 |
|
|
$ |
7,708 |
|
|
$ |
50,781 |
|
|
$ |
51,606 |
|
|
Non-GAAP operating margin excluding Japan |
|
11.3 |
% |
|
|
6.7 |
% |
|
|
10.1 |
% |
|
|
10.7 |
% |
|
|
|
|
|
|
|
|
|
||||||||
|
Proto Labs, Inc. Reconciliation of GAAP Net Income (Loss) to EBITDA and Adjusted EBITDA (In thousands) (Unaudited) |
|||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
|
Revenue |
$ |
125,048 |
|
|
$ |
115,607 |
|
|
$ |
503,877 |
|
|
$ |
488,398 |
|
|
GAAP net income (loss) |
|
6,990 |
|
|
|
(115,065 |
) |
|
|
17,220 |
|
|
|
(103,462 |
) |
|
GAAP net income margin |
|
5.6 |
% |
|
|
(99.5 |
%) |
|
|
3.4 |
% |
|
|
(21.2 |
%) |
|
Add back: |
|
|
|
|
|
|
|
||||||||
|
Amortization expense |
$ |
1,457 |
|
|
$ |
1,514 |
|
|
$ |
5,928 |
|
|
$ |
6,096 |
|
|
Depreciation expense |
|
7,858 |
|
|
|
7,930 |
|
|
|
31,600 |
|
|
|
33,329 |
|
|
Interest income, net |
|
(951 |
) |
|
|
(509 |
) |
|
|
(2,234 |
) |
|
|
(968 |
) |
|
Provision for income taxes |
|
2,948 |
|
|
|
(1,638 |
) |
|
|
10,732 |
|
|
|
5,585 |
|
|
EBITDA |
|
18,302 |
|
|
|
(107,768 |
) |
|
|
63,246 |
|
|
|
(59,420 |
) |
|
EBITDA Margin |
|
14.6 |
% |
|
|
(93.2 |
%) |
|
|
12.6 |
% |
|
|
(12.2 |
%) |
|
Add back: |
|
|
|
|
|
|
|
||||||||
|
Stock-based compensation expense |
|
4,178 |
|
|
|
4,210 |
|
|
|
15,989 |
|
|
|
17,545 |
|
|
Unrealized (gain) loss on foreign currency |
|
(211 |
) |
|
|
(490 |
) |
|
|
(125 |
) |
|
|
252 |
|
|
Goodwill impairment |
|
— |
|
|
|
118,008 |
|
|
|
— |
|
|
|
118,008 |
|
|
Costs related to Japan closure activities |
|
29 |
|
|
|
534 |
|
|
|
4,122 |
|
|
|
6,922 |
|
|
Total adjustments |
|
3,996 |
|
|
|
122,262 |
|
|
|
19,986 |
|
|
|
142,727 |
|
|
Adjusted EBITDA |
$ |
22,298 |
|
|
$ |
14,494 |
|
|
$ |
83,232 |
|
|
$ |
83,307 |
|
|
Adjusted EBITDA Margin |
|
17.8 |
% |
|
|
12.5 |
% |
|
|
16.5 |
% |
|
|
17.1 |
% |
|
|
|
|
|
|
|
|
|
||||||||
|
Proto Labs, Inc. Comparison of GAAP to Non-GAAP Revenue Growth by Region (In thousands) (Unaudited) |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
Three Months Ended |
|
Three Months Ended December 31, 2022 |
|
% Change2 |
|
% Change Organic3 |
|||||||||||
|
|
GAAP |
|
Foreign Currency1 |
|
Non-GAAP |
|
GAAP |
|
|
|||||||||
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
United States |
$ |
98,814 |
|
$ |
— |
|
|
$ |
98,814 |
|
$ |
92,278 |
|
7.1 |
% |
|
7.1 |
% |
|
Europe |
|
26,234 |
|
|
(1,144 |
) |
|
|
25,090 |
|
|
23,329 |
|
12.5 |
% |
|
7.5 |
% |
|
Total revenue |
$ |
125,048 |
|
$ |
(1,144 |
) |
|
$ |
123,904 |
|
$ |
115,607 |
|
8.2 |
% |
|
7.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Contacts
Investor Relations Contacts
Protolabs
Ryan Johnsrud, 612-225-4873
Manager – Investor Relations and FP&A
ryan.johnsrud@protolabs.com
Gateway Group, Inc.
949-574-3860
PRLB@gateway-grp.com
Media Contact
Protolabs
Brent Renneke, 763-479-7704
Marketing Communications Manager
brent.renneke@protolabs.com