Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Protolabs Reports Financial Results for the First Quarter of 2024 By: Proto Labs, Inc. via Business Wire May 03, 2024 at 06:00 AM EDT Total Revenue of $128 Million; Protolabs Network Revenue up 39% YoY to $24 Million GAAP Earnings Per Share of $0.20, Non-GAAP Earnings Per Share of $0.40 Proto Labs, Inc. ("Protolabs" or the "Company") (NYSE: PRLB), the world’s leading provider of digital manufacturing services, today announced financial results for the first quarter ended March 31, 2024. First Quarter 2024 Financial Highlights: Revenue was $127.9 million, a 1.6% increase compared to the first quarter of 2023. Revenue generated from Protolabs Network was $23.9 million, a 38.9% increase compared to the first quarter of 2023. Net income was $5.3 million, or $0.20 per diluted share, compared to $2.7 million, or $0.10 per diluted share, in the first quarter of 2023. Non-GAAP net income was $10.4 million, or $0.40 per diluted share, compared to $7.9 million, or $0.30 per diluted share, in the first quarter of 2023. See “Non-GAAP Financial Measures” below. EBITDA was $15.7 million, or 12.3% of revenue. See “Non-GAAP Financial Measures” below. Adjusted EBITDA was $20.2 million, or 15.8% of revenue, compared to $17.8 million, or 14.1% of revenue, in the first quarter of 2023. See “Non-GAAP Financial Measures” below. "We demonstrated strong financial and operational results in the first quarter," said Rob Bodor, President and Chief Executive Officer. "We are encouraged by our progress to-date and remain focused on driving profitable growth for the full year 2024. As we continue to execute against our strategy, we remain confident in our ability to increase the number of customers using our hybrid model and drive higher revenue per customer through larger orders in all services. We look forward to comprehensively serving our customers, driving growth and profitability, and increasing value for shareholders." Dan Schumacher, Chief Financial Officer, commented, "Our results were driven by increased order growth relative to the beginning of the year as well as strong performance in our higher-margin Factory business. We remain committed to returning capital to shareholders as we repurchased $16.0 million of common stock in the quarter, equivalent to 85% of free cash flow." Additional First Quarter 2024 Highlights: Customer contact information Protolabs served 22,466 customer contacts during the quarter. Revenue per customer contact increased 5.3% year-over-year to $5,693. Gross margin was 44.9% of revenue, compared to 42.7% of revenue in the first quarter of 2023. Non-GAAP gross margin was 45.6% of revenue, compared to 43.4% of revenue in the first quarter of 2023. See "Non-GAAP Financial Measures" below. Cash flow from operations was $21.3 million in the first quarter of 2024. Cash and investments balance was $112.9 million as of March 31, 2024. Second Quarter 2024 Outlook For the second quarter of 2024, the Company expects to generate revenue between $122 million and $130 million. The Company expects second quarter 2024 diluted net income per share between $0.11 and $0.19, and non-GAAP diluted net income per share between $0.30 and $0.38. 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 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 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 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 net income, adjusted for stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency 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 operating margin, 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 first quarter 2024 financial results and second quarter 2024 outlook today, May 3, 2024 at 8:30 a.m. EDT. 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. EDT 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/44qaaegi/. 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) March 31, 2024 December 31, 2023 (Unaudited) Assets Current assets Cash and cash equivalents $ 92,804 $ 83,790 Short-term marketable securities 16,875 19,013 Accounts receivable, net 77,849 72,848 Inventory 12,823 13,657 Income taxes receivable 644 2,228 Prepaid expenses and other current assets 9,425 9,124 Total current assets 210,420 200,660 Property and equipment, net 247,798 253,655 Goodwill 273,991 273,991 Other intangible assets, net 24,407 25,584 Long-term marketable securities 3,257 8,019 Operating lease assets 4,185 4,628 Finance lease assets 893 960 Other long-term assets 4,852 4,856 Total assets $ 769,803 $ 772,353 Liabilities and shareholders' equity Current liabilities Accounts payable $ 15,256 $ 15,636 Accrued compensation 16,239 15,292 Accrued liabilities and other 21,216 16,872 Current operating lease liabilities 1,549 1,585 Current finance lease liabilities 299 296 Income taxes payable 3,877 — Total current liabilities 58,436 49,681 Long-term operating lease liabilities 2,588 3,008 Long-term finance lease liabilities 519 595 Long-term deferred tax liabilities 16,482 18,742 Other long-term liabilities 4,468 5,032 Shareholders' equity 687,310 695,295 Total liabilities and shareholders' equity $ 769,803 $ 772,353 Proto Labs, Inc. Condensed Consolidated Statements of Operations (In thousands, except share and per share amounts) (Unaudited) Three Months Ended March 31, 2024 2023 Revenue Injection Molding $ 52,663 $ 51,948 CNC Machining 49,932 48,104 3D Printing 21,582 21,325 Sheet Metal 3,553 4,248 Other Revenue 160 234 Total Revenue 127,890 125,859 Cost of revenue 70,423 72,083 Gross profit 57,467 53,776 Operating expenses Marketing and sales 23,160 22,451 Research and development 11,167 10,677 General and administrative 16,313 16,833 Closure of Japan business — 66 Total operating expenses 50,640 50,027 Income from operations 6,827 3,749 Other income, net 899 1,290 Income before income taxes 7,726 5,039 Provision for income taxes 2,458 2,380 Net income $ 5,268 $ 2,659 Net income per share: Basic $ 0.21 $ 0.10 Diluted $ 0.20 $ 0.10 Shares used to compute net income per share: Basic 25,624,949 26,580,279 Diluted 25,784,987 26,605,787 Proto Labs, Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) Three Months Ended March 31, 2024 2023 Operating activities Net income $ 5,268 $ 2,659 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 9,103 9,388 Stock-based compensation expense 4,276 3,695 Deferred taxes (2,247 ) (3,096 ) Interest on finance lease obligations 10 287 Gain on disposal of property and equipment (22 ) — Other 63 (46 ) Changes in operating assets and liabilities 4,887 9,691 Net cash provided by operating activities 21,338 22,578 Investing activities Purchases of property, equipment and other capital assets (2,587 ) (3,441 ) Proceeds from sales of property, equipment and other capital assets 22 194 Proceeds from call redemptions and maturities of marketable securities 6,984 7,630 Net cash provided by investing activities 4,419 4,383 Financing activities Purchases of shares withheld for tax obligations (533 ) (401 ) Repurchases of common stock (16,013 ) (21,119 ) Principal repayments of finance lease obligations (73 ) (82 ) Net cash used in financing activities (16,619 ) (21,602 ) Effect of exchange rate changes on cash and cash equivalents (124 ) 134 Net increase in cash and cash equivalents 9,014 5,493 Cash and cash equivalents, beginning of period 83,790 56,558 Cash and cash equivalents, end of period $ 92,804 $ 62,051 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 March 31, 2024 2023 Non-GAAP net income, adjusted for stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency and costs related to Japan closure activities GAAP net income $ 5,268 $ 2,659 Add back: Stock-based compensation expense 4,276 3,695 Amortization expense 987 1,526 Unrealized (gain) loss on foreign currency 237 (71 ) Costs related to Japan closure activities — 66 Total adjustments 1 5,500 5,216 Income tax benefits on adjustments 2 (354 ) (2 ) Non-GAAP net income $ 10,414 $ 7,873 Non-GAAP net income per share: Basic $ 0.41 $ 0.30 Diluted $ 0.40 $ 0.30 Shares used to compute non-GAAP net income per share: Basic 25,624,949 26,580,279 Diluted 25,784,987 26,605,787 1 Stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency and costs related to Japan closure activities were included in the following GAAP consolidated statement of operations categories: Three Months Ended March 31, 2024 2023 Cost of revenue $ 801 $ 808 Marketing and sales 833 692 Research and development 692 572 General and administrative 2,937 3,149 Closure of Japan business — 66 Total operating expenses 4,462 4,479 Other income (loss), net 237 (71 ) Total adjustments $ 5,500 $ 5,216 2 For the three months ended March 31, 2024 and 2023, 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 March 31, 2024 2023 Revenue $ 127,890 $ 125,859 Gross profit 57,467 53,776 GAAP gross margin 44.9 % 42.7 % Add back: Stock-based compensation expense 459 466 Amortization expense 342 342 Total adjustments 801 808 Non-GAAP gross profit $ 58,268 $ 54,584 Non-GAAP gross margin 45.6 % 43.4 % Proto Labs, Inc. Reconciliation of GAAP to Non-GAAP Operating Margin (In thousands) (Unaudited) Three Months Ended March 31, 2024 2023 Revenue $ 127,890 $ 125,859 Income from operations 6,827 3,749 GAAP operating margin 5.3 % 3.0 % Add back: Stock-based compensation expense 4,276 3,695 Amortization expense 987 1,526 Costs related to Japan closure activities — 66 Total adjustments 5,263 5,287 Non-GAAP income from operations $ 12,090 $ 9,036 Non-GAAP operating margin 9.5 % 7.2 % Proto Labs, Inc. Reconciliation of GAAP Net Income to EBITDA and Adjusted EBITDA (In thousands) (Unaudited) Three Months Ended March 31, 2024 2023 Revenue $ 127,890 $ 125,859 GAAP net income 5,268 2,659 GAAP net income margin 4.1 % 2.1 % Add back: Amortization expense $ 987 $ 1,526 Depreciation expense 8,116 7,862 Interest income, net (1,112 ) (350 ) Provision for income taxes 2,458 2,380 EBITDA 15,717 14,077 EBITDA Margin 12.3 % 11.2 % Add back: Stock-based compensation expense 4,276 3,695 Unrealized (gain) loss on foreign currency 237 (71 ) Costs related to Japan closure activities — 66 Total adjustments 4,513 3,690 Adjusted EBITDA $ 20,230 $ 17,767 Adjusted EBITDA Margin 15.8 % 14.1 % Proto Labs, Inc. Comparison of GAAP to Non-GAAP Revenue Growth by Region (In thousands) (Unaudited) Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 % Change2 % Change Organic3 GAAP Foreign Currency1 Non-GAAP GAAP Revenues United States $ 101,481 $ — $ 101,481 $ 97,746 3.8 % 3.8 % Europe 26,409 (907 ) 25,502 28,113 (6.1 %) (9.3 %) Total revenue $ 127,890 $ (907 ) $ 126,983 $ 125,859 1.6 % 0.9 % 1 Revenue for the three months ended March 31, 2024 has been recalculated using 2023 foreign currency exchange rates in effect during comparable periods to provide information useful in evaluating the underlying business trends excluding the impact of changes in foreign currency exchange rates. 2 This column presents the percentage change from GAAP revenue for the three months ended March 31, 2023 to GAAP revenue for the three months ended March 31, 2024. 3 This column presents the percentage change from GAAP revenue for the three months ended March 31, 2023 to non-GAAP revenue for the three months ended March 31, 2024 (as recalculated using the foreign currency exchange rates in effect during the three months ended March 31, 2023) in order to provide a constant-currency comparison. Proto Labs, Inc. Comparison of GAAP to Non-GAAP Revenue Growth by Service Line (In thousands) (Unaudited) Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 % Change2 % Change Organic3 GAAP Foreign Currency1 Non-GAAP GAAP Revenues Injection Molding $ 52,663 $ (408 ) $ 52,255 $ 51,948 1.4 % 0.6 % CNC Machining 49,932 (308 ) 49,624 48,104 3.8 3.2 3D Printing 21,582 (187 ) 21,395 21,325 1.2 0.3 Sheet Metal 3,553 (4 ) 3,549 4,248 (16.4 ) (16.5 ) Other Revenue 160 — 160 234 (31.6 ) (31.6 ) Total Revenue $ 127,890 $ (907 ) $ 126,983 $ 125,859 1.6 % 0.9 % 1 Revenue for the three months ended March 31, 2024 has been recalculated using 2023 foreign currency exchange rates in effect during comparable periods to provide information useful in evaluating the underlying business trends excluding the impact of changes in foreign currency exchange rates. 2 This column presents the percentage change from GAAP revenue for the three months ended March 31, 2023 to GAAP revenue for the three months ended March 31, 2024. 3 This column presents the percentage change from GAAP revenue for the three months ended March 31, 2023 to non-GAAP revenue for the three months ended March 31, 2024 (as recalculated using the foreign currency exchange rates in effect during the three months ended March 31, 2023) in order to provide a constant-currency comparison. Proto Labs, Inc. Customer Contact Information (Unaudited) Three Months Ended March 31, 2024 2023 Customer contacts 22,466 23,287 Revenue per customer contact $ 5,693 $ 5,405 Proto Labs, Inc. Reconciliation of GAAP to Non-GAAP Guidance (In thousands, except per share and per share amounts) (Unaudited) Q2 2024 Outlook Low High GAAP diluted net income per share $ 0.11 0.19 Add back: Stock-based compensation expense 0.15 0.15 Amortization expense 0.03 0.03 Unrealized (gain) loss on foreign currency 0.00 0.00 Total adjustments 0.18 0.18 Non-GAAP diluted net income per share $ 0.30 $ 0.38 View source version on businesswire.com: https://www.businesswire.com/news/home/20240503095196/en/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 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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Protolabs Reports Financial Results for the First Quarter of 2024 By: Proto Labs, Inc. via Business Wire May 03, 2024 at 06:00 AM EDT Total Revenue of $128 Million; Protolabs Network Revenue up 39% YoY to $24 Million GAAP Earnings Per Share of $0.20, Non-GAAP Earnings Per Share of $0.40 Proto Labs, Inc. ("Protolabs" or the "Company") (NYSE: PRLB), the world’s leading provider of digital manufacturing services, today announced financial results for the first quarter ended March 31, 2024. First Quarter 2024 Financial Highlights: Revenue was $127.9 million, a 1.6% increase compared to the first quarter of 2023. Revenue generated from Protolabs Network was $23.9 million, a 38.9% increase compared to the first quarter of 2023. Net income was $5.3 million, or $0.20 per diluted share, compared to $2.7 million, or $0.10 per diluted share, in the first quarter of 2023. Non-GAAP net income was $10.4 million, or $0.40 per diluted share, compared to $7.9 million, or $0.30 per diluted share, in the first quarter of 2023. See “Non-GAAP Financial Measures” below. EBITDA was $15.7 million, or 12.3% of revenue. See “Non-GAAP Financial Measures” below. Adjusted EBITDA was $20.2 million, or 15.8% of revenue, compared to $17.8 million, or 14.1% of revenue, in the first quarter of 2023. See “Non-GAAP Financial Measures” below. "We demonstrated strong financial and operational results in the first quarter," said Rob Bodor, President and Chief Executive Officer. "We are encouraged by our progress to-date and remain focused on driving profitable growth for the full year 2024. As we continue to execute against our strategy, we remain confident in our ability to increase the number of customers using our hybrid model and drive higher revenue per customer through larger orders in all services. We look forward to comprehensively serving our customers, driving growth and profitability, and increasing value for shareholders." Dan Schumacher, Chief Financial Officer, commented, "Our results were driven by increased order growth relative to the beginning of the year as well as strong performance in our higher-margin Factory business. We remain committed to returning capital to shareholders as we repurchased $16.0 million of common stock in the quarter, equivalent to 85% of free cash flow." Additional First Quarter 2024 Highlights: Customer contact information Protolabs served 22,466 customer contacts during the quarter. Revenue per customer contact increased 5.3% year-over-year to $5,693. Gross margin was 44.9% of revenue, compared to 42.7% of revenue in the first quarter of 2023. Non-GAAP gross margin was 45.6% of revenue, compared to 43.4% of revenue in the first quarter of 2023. See "Non-GAAP Financial Measures" below. Cash flow from operations was $21.3 million in the first quarter of 2024. Cash and investments balance was $112.9 million as of March 31, 2024. Second Quarter 2024 Outlook For the second quarter of 2024, the Company expects to generate revenue between $122 million and $130 million. The Company expects second quarter 2024 diluted net income per share between $0.11 and $0.19, and non-GAAP diluted net income per share between $0.30 and $0.38. 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 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 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 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 net income, adjusted for stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency 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 operating margin, 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 first quarter 2024 financial results and second quarter 2024 outlook today, May 3, 2024 at 8:30 a.m. EDT. 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. EDT 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/44qaaegi/. 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) March 31, 2024 December 31, 2023 (Unaudited) Assets Current assets Cash and cash equivalents $ 92,804 $ 83,790 Short-term marketable securities 16,875 19,013 Accounts receivable, net 77,849 72,848 Inventory 12,823 13,657 Income taxes receivable 644 2,228 Prepaid expenses and other current assets 9,425 9,124 Total current assets 210,420 200,660 Property and equipment, net 247,798 253,655 Goodwill 273,991 273,991 Other intangible assets, net 24,407 25,584 Long-term marketable securities 3,257 8,019 Operating lease assets 4,185 4,628 Finance lease assets 893 960 Other long-term assets 4,852 4,856 Total assets $ 769,803 $ 772,353 Liabilities and shareholders' equity Current liabilities Accounts payable $ 15,256 $ 15,636 Accrued compensation 16,239 15,292 Accrued liabilities and other 21,216 16,872 Current operating lease liabilities 1,549 1,585 Current finance lease liabilities 299 296 Income taxes payable 3,877 — Total current liabilities 58,436 49,681 Long-term operating lease liabilities 2,588 3,008 Long-term finance lease liabilities 519 595 Long-term deferred tax liabilities 16,482 18,742 Other long-term liabilities 4,468 5,032 Shareholders' equity 687,310 695,295 Total liabilities and shareholders' equity $ 769,803 $ 772,353 Proto Labs, Inc. Condensed Consolidated Statements of Operations (In thousands, except share and per share amounts) (Unaudited) Three Months Ended March 31, 2024 2023 Revenue Injection Molding $ 52,663 $ 51,948 CNC Machining 49,932 48,104 3D Printing 21,582 21,325 Sheet Metal 3,553 4,248 Other Revenue 160 234 Total Revenue 127,890 125,859 Cost of revenue 70,423 72,083 Gross profit 57,467 53,776 Operating expenses Marketing and sales 23,160 22,451 Research and development 11,167 10,677 General and administrative 16,313 16,833 Closure of Japan business — 66 Total operating expenses 50,640 50,027 Income from operations 6,827 3,749 Other income, net 899 1,290 Income before income taxes 7,726 5,039 Provision for income taxes 2,458 2,380 Net income $ 5,268 $ 2,659 Net income per share: Basic $ 0.21 $ 0.10 Diluted $ 0.20 $ 0.10 Shares used to compute net income per share: Basic 25,624,949 26,580,279 Diluted 25,784,987 26,605,787 Proto Labs, Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) Three Months Ended March 31, 2024 2023 Operating activities Net income $ 5,268 $ 2,659 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 9,103 9,388 Stock-based compensation expense 4,276 3,695 Deferred taxes (2,247 ) (3,096 ) Interest on finance lease obligations 10 287 Gain on disposal of property and equipment (22 ) — Other 63 (46 ) Changes in operating assets and liabilities 4,887 9,691 Net cash provided by operating activities 21,338 22,578 Investing activities Purchases of property, equipment and other capital assets (2,587 ) (3,441 ) Proceeds from sales of property, equipment and other capital assets 22 194 Proceeds from call redemptions and maturities of marketable securities 6,984 7,630 Net cash provided by investing activities 4,419 4,383 Financing activities Purchases of shares withheld for tax obligations (533 ) (401 ) Repurchases of common stock (16,013 ) (21,119 ) Principal repayments of finance lease obligations (73 ) (82 ) Net cash used in financing activities (16,619 ) (21,602 ) Effect of exchange rate changes on cash and cash equivalents (124 ) 134 Net increase in cash and cash equivalents 9,014 5,493 Cash and cash equivalents, beginning of period 83,790 56,558 Cash and cash equivalents, end of period $ 92,804 $ 62,051 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 March 31, 2024 2023 Non-GAAP net income, adjusted for stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency and costs related to Japan closure activities GAAP net income $ 5,268 $ 2,659 Add back: Stock-based compensation expense 4,276 3,695 Amortization expense 987 1,526 Unrealized (gain) loss on foreign currency 237 (71 ) Costs related to Japan closure activities — 66 Total adjustments 1 5,500 5,216 Income tax benefits on adjustments 2 (354 ) (2 ) Non-GAAP net income $ 10,414 $ 7,873 Non-GAAP net income per share: Basic $ 0.41 $ 0.30 Diluted $ 0.40 $ 0.30 Shares used to compute non-GAAP net income per share: Basic 25,624,949 26,580,279 Diluted 25,784,987 26,605,787 1 Stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency and costs related to Japan closure activities were included in the following GAAP consolidated statement of operations categories: Three Months Ended March 31, 2024 2023 Cost of revenue $ 801 $ 808 Marketing and sales 833 692 Research and development 692 572 General and administrative 2,937 3,149 Closure of Japan business — 66 Total operating expenses 4,462 4,479 Other income (loss), net 237 (71 ) Total adjustments $ 5,500 $ 5,216 2 For the three months ended March 31, 2024 and 2023, 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 March 31, 2024 2023 Revenue $ 127,890 $ 125,859 Gross profit 57,467 53,776 GAAP gross margin 44.9 % 42.7 % Add back: Stock-based compensation expense 459 466 Amortization expense 342 342 Total adjustments 801 808 Non-GAAP gross profit $ 58,268 $ 54,584 Non-GAAP gross margin 45.6 % 43.4 % Proto Labs, Inc. Reconciliation of GAAP to Non-GAAP Operating Margin (In thousands) (Unaudited) Three Months Ended March 31, 2024 2023 Revenue $ 127,890 $ 125,859 Income from operations 6,827 3,749 GAAP operating margin 5.3 % 3.0 % Add back: Stock-based compensation expense 4,276 3,695 Amortization expense 987 1,526 Costs related to Japan closure activities — 66 Total adjustments 5,263 5,287 Non-GAAP income from operations $ 12,090 $ 9,036 Non-GAAP operating margin 9.5 % 7.2 % Proto Labs, Inc. Reconciliation of GAAP Net Income to EBITDA and Adjusted EBITDA (In thousands) (Unaudited) Three Months Ended March 31, 2024 2023 Revenue $ 127,890 $ 125,859 GAAP net income 5,268 2,659 GAAP net income margin 4.1 % 2.1 % Add back: Amortization expense $ 987 $ 1,526 Depreciation expense 8,116 7,862 Interest income, net (1,112 ) (350 ) Provision for income taxes 2,458 2,380 EBITDA 15,717 14,077 EBITDA Margin 12.3 % 11.2 % Add back: Stock-based compensation expense 4,276 3,695 Unrealized (gain) loss on foreign currency 237 (71 ) Costs related to Japan closure activities — 66 Total adjustments 4,513 3,690 Adjusted EBITDA $ 20,230 $ 17,767 Adjusted EBITDA Margin 15.8 % 14.1 % Proto Labs, Inc. Comparison of GAAP to Non-GAAP Revenue Growth by Region (In thousands) (Unaudited) Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 % Change2 % Change Organic3 GAAP Foreign Currency1 Non-GAAP GAAP Revenues United States $ 101,481 $ — $ 101,481 $ 97,746 3.8 % 3.8 % Europe 26,409 (907 ) 25,502 28,113 (6.1 %) (9.3 %) Total revenue $ 127,890 $ (907 ) $ 126,983 $ 125,859 1.6 % 0.9 % 1 Revenue for the three months ended March 31, 2024 has been recalculated using 2023 foreign currency exchange rates in effect during comparable periods to provide information useful in evaluating the underlying business trends excluding the impact of changes in foreign currency exchange rates. 2 This column presents the percentage change from GAAP revenue for the three months ended March 31, 2023 to GAAP revenue for the three months ended March 31, 2024. 3 This column presents the percentage change from GAAP revenue for the three months ended March 31, 2023 to non-GAAP revenue for the three months ended March 31, 2024 (as recalculated using the foreign currency exchange rates in effect during the three months ended March 31, 2023) in order to provide a constant-currency comparison. Proto Labs, Inc. Comparison of GAAP to Non-GAAP Revenue Growth by Service Line (In thousands) (Unaudited) Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 % Change2 % Change Organic3 GAAP Foreign Currency1 Non-GAAP GAAP Revenues Injection Molding $ 52,663 $ (408 ) $ 52,255 $ 51,948 1.4 % 0.6 % CNC Machining 49,932 (308 ) 49,624 48,104 3.8 3.2 3D Printing 21,582 (187 ) 21,395 21,325 1.2 0.3 Sheet Metal 3,553 (4 ) 3,549 4,248 (16.4 ) (16.5 ) Other Revenue 160 — 160 234 (31.6 ) (31.6 ) Total Revenue $ 127,890 $ (907 ) $ 126,983 $ 125,859 1.6 % 0.9 % 1 Revenue for the three months ended March 31, 2024 has been recalculated using 2023 foreign currency exchange rates in effect during comparable periods to provide information useful in evaluating the underlying business trends excluding the impact of changes in foreign currency exchange rates. 2 This column presents the percentage change from GAAP revenue for the three months ended March 31, 2023 to GAAP revenue for the three months ended March 31, 2024. 3 This column presents the percentage change from GAAP revenue for the three months ended March 31, 2023 to non-GAAP revenue for the three months ended March 31, 2024 (as recalculated using the foreign currency exchange rates in effect during the three months ended March 31, 2023) in order to provide a constant-currency comparison. Proto Labs, Inc. Customer Contact Information (Unaudited) Three Months Ended March 31, 2024 2023 Customer contacts 22,466 23,287 Revenue per customer contact $ 5,693 $ 5,405 Proto Labs, Inc. Reconciliation of GAAP to Non-GAAP Guidance (In thousands, except per share and per share amounts) (Unaudited) Q2 2024 Outlook Low High GAAP diluted net income per share $ 0.11 0.19 Add back: Stock-based compensation expense 0.15 0.15 Amortization expense 0.03 0.03 Unrealized (gain) loss on foreign currency 0.00 0.00 Total adjustments 0.18 0.18 Non-GAAP diluted net income per share $ 0.30 $ 0.38 View source version on businesswire.com: https://www.businesswire.com/news/home/20240503095196/en/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
Total Revenue of $128 Million; Protolabs Network Revenue up 39% YoY to $24 Million GAAP Earnings Per Share of $0.20, Non-GAAP Earnings Per Share of $0.40
Proto Labs, Inc. ("Protolabs" or the "Company") (NYSE: PRLB), the world’s leading provider of digital manufacturing services, today announced financial results for the first quarter ended March 31, 2024. First Quarter 2024 Financial Highlights: Revenue was $127.9 million, a 1.6% increase compared to the first quarter of 2023. Revenue generated from Protolabs Network was $23.9 million, a 38.9% increase compared to the first quarter of 2023. Net income was $5.3 million, or $0.20 per diluted share, compared to $2.7 million, or $0.10 per diluted share, in the first quarter of 2023. Non-GAAP net income was $10.4 million, or $0.40 per diluted share, compared to $7.9 million, or $0.30 per diluted share, in the first quarter of 2023. See “Non-GAAP Financial Measures” below. EBITDA was $15.7 million, or 12.3% of revenue. See “Non-GAAP Financial Measures” below. Adjusted EBITDA was $20.2 million, or 15.8% of revenue, compared to $17.8 million, or 14.1% of revenue, in the first quarter of 2023. See “Non-GAAP Financial Measures” below. "We demonstrated strong financial and operational results in the first quarter," said Rob Bodor, President and Chief Executive Officer. "We are encouraged by our progress to-date and remain focused on driving profitable growth for the full year 2024. As we continue to execute against our strategy, we remain confident in our ability to increase the number of customers using our hybrid model and drive higher revenue per customer through larger orders in all services. We look forward to comprehensively serving our customers, driving growth and profitability, and increasing value for shareholders." Dan Schumacher, Chief Financial Officer, commented, "Our results were driven by increased order growth relative to the beginning of the year as well as strong performance in our higher-margin Factory business. We remain committed to returning capital to shareholders as we repurchased $16.0 million of common stock in the quarter, equivalent to 85% of free cash flow." Additional First Quarter 2024 Highlights: Customer contact information Protolabs served 22,466 customer contacts during the quarter. Revenue per customer contact increased 5.3% year-over-year to $5,693. Gross margin was 44.9% of revenue, compared to 42.7% of revenue in the first quarter of 2023. Non-GAAP gross margin was 45.6% of revenue, compared to 43.4% of revenue in the first quarter of 2023. See "Non-GAAP Financial Measures" below. Cash flow from operations was $21.3 million in the first quarter of 2024. Cash and investments balance was $112.9 million as of March 31, 2024. Second Quarter 2024 Outlook For the second quarter of 2024, the Company expects to generate revenue between $122 million and $130 million. The Company expects second quarter 2024 diluted net income per share between $0.11 and $0.19, and non-GAAP diluted net income per share between $0.30 and $0.38. 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 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 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 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 net income, adjusted for stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency 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 operating margin, 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 first quarter 2024 financial results and second quarter 2024 outlook today, May 3, 2024 at 8:30 a.m. EDT. 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. EDT 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/44qaaegi/. 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) March 31, 2024 December 31, 2023 (Unaudited) Assets Current assets Cash and cash equivalents $ 92,804 $ 83,790 Short-term marketable securities 16,875 19,013 Accounts receivable, net 77,849 72,848 Inventory 12,823 13,657 Income taxes receivable 644 2,228 Prepaid expenses and other current assets 9,425 9,124 Total current assets 210,420 200,660 Property and equipment, net 247,798 253,655 Goodwill 273,991 273,991 Other intangible assets, net 24,407 25,584 Long-term marketable securities 3,257 8,019 Operating lease assets 4,185 4,628 Finance lease assets 893 960 Other long-term assets 4,852 4,856 Total assets $ 769,803 $ 772,353 Liabilities and shareholders' equity Current liabilities Accounts payable $ 15,256 $ 15,636 Accrued compensation 16,239 15,292 Accrued liabilities and other 21,216 16,872 Current operating lease liabilities 1,549 1,585 Current finance lease liabilities 299 296 Income taxes payable 3,877 — Total current liabilities 58,436 49,681 Long-term operating lease liabilities 2,588 3,008 Long-term finance lease liabilities 519 595 Long-term deferred tax liabilities 16,482 18,742 Other long-term liabilities 4,468 5,032 Shareholders' equity 687,310 695,295 Total liabilities and shareholders' equity $ 769,803 $ 772,353 Proto Labs, Inc. Condensed Consolidated Statements of Operations (In thousands, except share and per share amounts) (Unaudited) Three Months Ended March 31, 2024 2023 Revenue Injection Molding $ 52,663 $ 51,948 CNC Machining 49,932 48,104 3D Printing 21,582 21,325 Sheet Metal 3,553 4,248 Other Revenue 160 234 Total Revenue 127,890 125,859 Cost of revenue 70,423 72,083 Gross profit 57,467 53,776 Operating expenses Marketing and sales 23,160 22,451 Research and development 11,167 10,677 General and administrative 16,313 16,833 Closure of Japan business — 66 Total operating expenses 50,640 50,027 Income from operations 6,827 3,749 Other income, net 899 1,290 Income before income taxes 7,726 5,039 Provision for income taxes 2,458 2,380 Net income $ 5,268 $ 2,659 Net income per share: Basic $ 0.21 $ 0.10 Diluted $ 0.20 $ 0.10 Shares used to compute net income per share: Basic 25,624,949 26,580,279 Diluted 25,784,987 26,605,787 Proto Labs, Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) Three Months Ended March 31, 2024 2023 Operating activities Net income $ 5,268 $ 2,659 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 9,103 9,388 Stock-based compensation expense 4,276 3,695 Deferred taxes (2,247 ) (3,096 ) Interest on finance lease obligations 10 287 Gain on disposal of property and equipment (22 ) — Other 63 (46 ) Changes in operating assets and liabilities 4,887 9,691 Net cash provided by operating activities 21,338 22,578 Investing activities Purchases of property, equipment and other capital assets (2,587 ) (3,441 ) Proceeds from sales of property, equipment and other capital assets 22 194 Proceeds from call redemptions and maturities of marketable securities 6,984 7,630 Net cash provided by investing activities 4,419 4,383 Financing activities Purchases of shares withheld for tax obligations (533 ) (401 ) Repurchases of common stock (16,013 ) (21,119 ) Principal repayments of finance lease obligations (73 ) (82 ) Net cash used in financing activities (16,619 ) (21,602 ) Effect of exchange rate changes on cash and cash equivalents (124 ) 134 Net increase in cash and cash equivalents 9,014 5,493 Cash and cash equivalents, beginning of period 83,790 56,558 Cash and cash equivalents, end of period $ 92,804 $ 62,051 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 March 31, 2024 2023 Non-GAAP net income, adjusted for stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency and costs related to Japan closure activities GAAP net income $ 5,268 $ 2,659 Add back: Stock-based compensation expense 4,276 3,695 Amortization expense 987 1,526 Unrealized (gain) loss on foreign currency 237 (71 ) Costs related to Japan closure activities — 66 Total adjustments 1 5,500 5,216 Income tax benefits on adjustments 2 (354 ) (2 ) Non-GAAP net income $ 10,414 $ 7,873 Non-GAAP net income per share: Basic $ 0.41 $ 0.30 Diluted $ 0.40 $ 0.30 Shares used to compute non-GAAP net income per share: Basic 25,624,949 26,580,279 Diluted 25,784,987 26,605,787 1 Stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency and costs related to Japan closure activities were included in the following GAAP consolidated statement of operations categories: Three Months Ended March 31, 2024 2023 Cost of revenue $ 801 $ 808 Marketing and sales 833 692 Research and development 692 572 General and administrative 2,937 3,149 Closure of Japan business — 66 Total operating expenses 4,462 4,479 Other income (loss), net 237 (71 ) Total adjustments $ 5,500 $ 5,216 2 For the three months ended March 31, 2024 and 2023, 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 March 31, 2024 2023 Revenue $ 127,890 $ 125,859 Gross profit 57,467 53,776 GAAP gross margin 44.9 % 42.7 % Add back: Stock-based compensation expense 459 466 Amortization expense 342 342 Total adjustments 801 808 Non-GAAP gross profit $ 58,268 $ 54,584 Non-GAAP gross margin 45.6 % 43.4 % Proto Labs, Inc. Reconciliation of GAAP to Non-GAAP Operating Margin (In thousands) (Unaudited) Three Months Ended March 31, 2024 2023 Revenue $ 127,890 $ 125,859 Income from operations 6,827 3,749 GAAP operating margin 5.3 % 3.0 % Add back: Stock-based compensation expense 4,276 3,695 Amortization expense 987 1,526 Costs related to Japan closure activities — 66 Total adjustments 5,263 5,287 Non-GAAP income from operations $ 12,090 $ 9,036 Non-GAAP operating margin 9.5 % 7.2 % Proto Labs, Inc. Reconciliation of GAAP Net Income to EBITDA and Adjusted EBITDA (In thousands) (Unaudited) Three Months Ended March 31, 2024 2023 Revenue $ 127,890 $ 125,859 GAAP net income 5,268 2,659 GAAP net income margin 4.1 % 2.1 % Add back: Amortization expense $ 987 $ 1,526 Depreciation expense 8,116 7,862 Interest income, net (1,112 ) (350 ) Provision for income taxes 2,458 2,380 EBITDA 15,717 14,077 EBITDA Margin 12.3 % 11.2 % Add back: Stock-based compensation expense 4,276 3,695 Unrealized (gain) loss on foreign currency 237 (71 ) Costs related to Japan closure activities — 66 Total adjustments 4,513 3,690 Adjusted EBITDA $ 20,230 $ 17,767 Adjusted EBITDA Margin 15.8 % 14.1 % Proto Labs, Inc. Comparison of GAAP to Non-GAAP Revenue Growth by Region (In thousands) (Unaudited) Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 % Change2 % Change Organic3 GAAP Foreign Currency1 Non-GAAP GAAP Revenues United States $ 101,481 $ — $ 101,481 $ 97,746 3.8 % 3.8 % Europe 26,409 (907 ) 25,502 28,113 (6.1 %) (9.3 %) Total revenue $ 127,890 $ (907 ) $ 126,983 $ 125,859 1.6 % 0.9 % 1 Revenue for the three months ended March 31, 2024 has been recalculated using 2023 foreign currency exchange rates in effect during comparable periods to provide information useful in evaluating the underlying business trends excluding the impact of changes in foreign currency exchange rates. 2 This column presents the percentage change from GAAP revenue for the three months ended March 31, 2023 to GAAP revenue for the three months ended March 31, 2024. 3 This column presents the percentage change from GAAP revenue for the three months ended March 31, 2023 to non-GAAP revenue for the three months ended March 31, 2024 (as recalculated using the foreign currency exchange rates in effect during the three months ended March 31, 2023) in order to provide a constant-currency comparison. Proto Labs, Inc. Comparison of GAAP to Non-GAAP Revenue Growth by Service Line (In thousands) (Unaudited) Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 % Change2 % Change Organic3 GAAP Foreign Currency1 Non-GAAP GAAP Revenues Injection Molding $ 52,663 $ (408 ) $ 52,255 $ 51,948 1.4 % 0.6 % CNC Machining 49,932 (308 ) 49,624 48,104 3.8 3.2 3D Printing 21,582 (187 ) 21,395 21,325 1.2 0.3 Sheet Metal 3,553 (4 ) 3,549 4,248 (16.4 ) (16.5 ) Other Revenue 160 — 160 234 (31.6 ) (31.6 ) Total Revenue $ 127,890 $ (907 ) $ 126,983 $ 125,859 1.6 % 0.9 % 1 Revenue for the three months ended March 31, 2024 has been recalculated using 2023 foreign currency exchange rates in effect during comparable periods to provide information useful in evaluating the underlying business trends excluding the impact of changes in foreign currency exchange rates. 2 This column presents the percentage change from GAAP revenue for the three months ended March 31, 2023 to GAAP revenue for the three months ended March 31, 2024. 3 This column presents the percentage change from GAAP revenue for the three months ended March 31, 2023 to non-GAAP revenue for the three months ended March 31, 2024 (as recalculated using the foreign currency exchange rates in effect during the three months ended March 31, 2023) in order to provide a constant-currency comparison. Proto Labs, Inc. Customer Contact Information (Unaudited) Three Months Ended March 31, 2024 2023 Customer contacts 22,466 23,287 Revenue per customer contact $ 5,693 $ 5,405 Proto Labs, Inc. Reconciliation of GAAP to Non-GAAP Guidance (In thousands, except per share and per share amounts) (Unaudited) Q2 2024 Outlook Low High GAAP diluted net income per share $ 0.11 0.19 Add back: Stock-based compensation expense 0.15 0.15 Amortization expense 0.03 0.03 Unrealized (gain) loss on foreign currency 0.00 0.00 Total adjustments 0.18 0.18 Non-GAAP diluted net income per share $ 0.30 $ 0.38 View source version on businesswire.com: https://www.businesswire.com/news/home/20240503095196/en/
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
