Record Revenue of $126.9 million in the Second Quarter of 2022;
GAAP Earnings Per Share of $0.09, Non-GAAP Earnings Per Share of $0.46
Proto Labs, Inc. (“Protolabs” or “the company”) (NYSE: PRLB), the world’s leading provider of digital manufacturing services, today announced financial results for the second quarter ended June 30, 2022.
Second Quarter 2022 Highlights include:
- Revenue for the second quarter of 2022 was $126.9 million, representing a 3.1 percent increase compared to revenue of $123.0 million in the second quarter of 2021.
- Hubs generated $11.3 million of revenue in the second quarter, representing year-over-year growth of 26.3 percent.
- On a GAAP basis, costs related to the closure of Japan operations were $5.2 million in the quarter. These costs have been excluded from our Non-GAAP results. See “Non-GAAP Financial Measures” below.
- Net income was $2.6 million, or $0.09 per diluted share.
- Non-GAAP net income was $12.8 million, or $0.46 per diluted share.
“Protolabs performed well in the quarter amid continuing supply chain challenges in the broader manufacturing industry and macroeconomic growth concerns,” said Rob Bodor, President and Chief Executive Officer. “We continue to make progress on our 2022 strategic priorities and are focused to execute on the integration of Protolabs and Hubs, bringing together two leading digital manufacturing offers to create the most comprehensive digital manufacturing offer to serve our customers.”
Additional Second Quarter 2022 Highlights include:
- Protolabs served 24,058 unique product developers during the second quarter of 2022.
- Gross margin was 45.2 percent of revenue, compared to 44.9 percent of revenue in the first quarter of 2022.
- Non-GAAP gross margin was 45.9 percent of revenue, compared to 45.7 percent of revenue in the first quarter of 2022.
- EBITDA was $15.1 million, or 11.9 percent of revenue.
- Adjusted EBITDA was $24.6 million, or 19.4 percent of revenue.
- Cash and investments balance was $110.1 million as of June 30, 2022.
“We are pleased with the sequential improvements in our margins in the second quarter,” said Dan Schumacher, Chief Financial Officer. “We continue to focus on executing our strategy through disciplined investments and cost controls while delivering value to our customers and profitable growth to our shareholders.”
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 and revenue earned from our acquisition of Hubs (collectively, “non-GAAP revenue growth”). Management believes these 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, costs related to the Japan closure activities and transaction costs (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, costs related to the Japan closure activities and transaction costs (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, costs related to the Japan closure activities and transaction costs (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, costs related to the Japan closure activities and transaction costs (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, costs related to Japan closure activities and transaction costs (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, to 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 second quarter 2022 financial results and third quarter 2022 outlook today, August 5, 2022, 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/bfhv9mwu. 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 world’s leading provider of digital manufacturing services. The e-commerce-based company offers injection molding, CNC machining, 3D printing, and sheet metal fabrication to product developers, engineers, and supply chain teams across the globe. Protolabs serves customers using in-house production capabilities that bring unprecedented speed in tandem with Hubs, a Protolabs Company, which serves customers through its network of premium manufacturing partners. Together, they help companies bring new ideas to market with the fastest and most comprehensive digital manufacturing service in the world. Visit protolabs.com for more information.
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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
|
|
|
2022
|
|
2021
|
|
|
|
|
(Unaudited)
|
|
|
|
Assets |
|
|
|
|
|
Current assets |
|
|
|
|
|
Cash and cash equivalents |
$
|
54,666
|
|
$
|
65,929
|
|
|
Short-term marketable securities |
|
24,379
|
|
|
11,580
|
|
|
Accounts receivable, net |
|
82,469
|
|
|
80,051
|
|
|
Inventory |
|
15,051
|
|
|
13,161
|
|
|
Income taxes receivable |
|
2,627
|
|
|
1,321
|
|
|
Prepaid expenses and other current assets |
|
11,484
|
|
|
11,450
|
|
|
|
Total current assets |
|
190,676
|
|
|
183,492
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
260,631
|
|
|
280,346
|
|
Goodwill |
|
390,354
|
|
|
400,610
|
|
Other intangible assets, net |
|
34,026
|
|
|
37,998
|
|
Long-term marketable securities |
|
31,068
|
|
|
14,340
|
|
Operating lease assets |
|
4,037
|
|
|
5,578
|
|
Finance lease assets |
|
1,649
|
|
|
1,898
|
|
Long-term assets held for sale |
|
1,985
|
|
|
-
|
|
Other long-term assets |
|
4,223
|
|
|
4,320
|
|
|
|
Total assets |
$
|
918,649
|
|
$
|
928,582
|
|
|
|
|
|
|
|
|
Liabilities and shareholders' equity |
|
|
|
|
Current liabilities |
|
|
|
|
|
Accounts payable |
$
|
15,642
|
|
$
|
25,364
|
|
|
Accrued compensation |
|
16,687
|
|
|
13,704
|
|
|
Accrued liabilities and other |
|
24,011
|
|
|
11,980
|
|
|
Current operating lease liabilities |
|
2,140
|
|
|
3,298
|
|
|
Current finance lease liabilities |
|
436
|
|
|
550
|
|
|
|
Total current liabilities |
|
58,916
|
|
|
54,896
|
|
|
|
|
|
|
|
|
Long-term operating lease liabilities |
|
1,886
|
|
|
2,245
|
|
Long-term finance lease liabilities |
|
1,188
|
|
|
1,351
|
|
Long-term deferred tax liabilities |
|
30,177
|
|
|
35,892
|
|
Other long-term liabilities |
|
5,784
|
|
|
5,705
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
820,698
|
|
|
828,493
|
|
Total liabilities and shareholders' equity |
$
|
918,649
|
|
$
|
928,582
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Proto Labs, Inc. |
| Condensed Consolidated Statements of Operations |
| (In thousands, except share and per share amounts) |
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Revenue |
|
|
|
|
|
|
|
|
Injection Molding |
$
|
53,355
|
|
$
|
58,168
|
|
$
|
106,753
|
|
|
$
|
114,527
|
|
|
CNC Machining |
|
48,222
|
|
|
41,592
|
|
|
94,320
|
|
|
|
78,295
|
|
|
3D Printing |
|
19,963
|
|
|
18,170
|
|
|
39,635
|
|
|
|
35,405
|
|
|
Sheet Metal |
|
5,160
|
|
|
4,717
|
|
|
9,847
|
|
|
|
9,936
|
|
|
Other |
|
202
|
|
|
401
|
|
|
515
|
|
|
|
1,011
|
|
|
Total revenue |
|
126,902
|
|
|
123,048
|
|
|
251,070
|
|
|
|
239,174
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
69,480
|
|
|
66,423
|
|
|
137,844
|
|
|
|
127,219
|
|
|
Gross profit |
|
57,422
|
|
|
56,625
|
|
|
113,226
|
|
|
|
111,955
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
Marketing and sales |
|
21,055
|
|
|
21,044
|
|
|
41,641
|
|
|
|
40,524
|
|
|
Research and development |
|
9,450
|
|
|
11,060
|
|
|
20,007
|
|
|
|
23,241
|
|
|
General and administrative |
|
16,522
|
|
|
8,417
|
|
|
33,293
|
|
|
|
27,825
|
|
|
Closure of Japan business |
|
5,194
|
|
|
-
|
|
|
5,194
|
|
|
|
-
|
|
|
Total operating expenses |
|
52,221
|
|
|
40,521
|
|
|
100,135
|
|
|
|
91,590
|
|
|
Income from operations |
|
5,201
|
|
|
16,104
|
|
|
13,091
|
|
|
|
20,365
|
|
|
Other income (loss), net |
|
1
|
|
|
137
|
|
|
(299
|
)
|
|
|
(176
|
)
|
|
Income before income taxes |
|
5,202
|
|
|
16,241
|
|
|
12,792
|
|
|
|
20,189
|
|
|
Provision for income taxes |
|
2,645
|
|
|
3,326
|
|
|
5,140
|
|
|
|
3,562
|
|
|
Net income |
$
|
2,557
|
|
$
|
12,915
|
|
$
|
7,652
|
|
|
$
|
16,627
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share: |
|
|
|
|
|
|
|
|
Basic |
$
|
0.09
|
|
$
|
0.47
|
|
$
|
0.28
|
|
|
$
|
0.60
|
|
|
Diluted |
$
|
0.09
|
|
$
|
0.47
|
|
$
|
0.28
|
|
|
$
|
0.60
|
|
|
|
|
|
|
|
|
|
|
|
Shares used to compute net income per share: |
|
|
|
|
|
|
|
|
Basic |
|
27,530,739
|
|
|
27,735,732
|
|
|
27,515,583
|
|
|
|
27,600,684
|
|
|
Diluted |
|
27,536,823
|
|
|
27,744,870
|
|
|
27,524,019
|
|
|
|
27,741,464
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Proto Labs, Inc. |
| Condensed Consolidated Statements of Cash Flows |
| (In thousands) |
| (Unaudited) |
|
|
|
|
|
Six Months Ended
|
|
June 30,
|
|
2022
|
|
2021
|
| Operating activities |
|
|
|
| Net income |
$
|
7,652
|
|
|
$
|
16,627
|
|
| Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
| Depreciation and amortization |
|
20,274
|
|
|
|
20,127
|
|
| Stock-based compensation expense |
|
8,428
|
|
|
|
10,561
|
|
| Deferred taxes |
|
(5,653
|
)
|
|
|
419
|
|
| Changes in fair value of contingent consideration |
|
-
|
|
|
|
(7,763
|
)
|
| Impairments related to closure of Japan business |
|
1,792
|
|
|
|
-
|
|
| Other |
|
32
|
|
|
|
269
|
|
| Changes in operating assets and liabilities |
|
(1,485
|
)
|
|
|
(19,511
|
)
|
| Net cash provided by operating activities |
|
31,040
|
|
|
|
20,729
|
|
|
|
|
|
| Investing activities |
|
|
|
| Purchases of property, equipment and other capital assets |
|
(6,030
|
)
|
|
|
(23,929
|
)
|
| Cash used for acquisitions, net of cash acquired |
|
-
|
|
|
|
(127,413
|
)
|
| Purchases of marketable securities |
|
(38,882
|
)
|
|
|
(15,159
|
)
|
| Proceeds from sales of marketable securities |
|
1,000
|
|
|
|
47,694
|
|
| Proceeds from call redemptions and maturities of marketable securities |
|
7,396
|
|
|
|
13,725
|
|
| Net cash used in investing activities |
|
(36,516
|
)
|
|
|
(105,082
|
)
|
|
|
|
|
| Financing activities |
|
|
|
| Proceeds from exercises of stock options and other |
|
2,311
|
|
|
|
3,838
|
|
| Purchases of shares withheld for tax obligations |
|
(1,615
|
)
|
|
|
(4,209
|
)
|
| Repurchases of common stock |
|
(5,239
|
)
|
|
|
(1,210
|
)
|
| Principal repayments of finance lease obligations |
|
(278
|
)
|
|
|
(275
|
)
|
| Net cash used in financing activities |
|
(4,821
|
)
|
|
|
(1,856
|
)
|
| Effect of exchange rate changes on cash and cash equivalents |
|
(966
|
)
|
|
|
515
|
|
| Net decrease in cash and cash equivalents |
|
(11,263
|
)
|
|
|
(85,694
|
)
|
| Cash and cash equivalents, beginning of period |
|
65,929
|
|
|
|
127,603
|
|
| Cash and cash equivalents, end of period |
$
|
54,666
|
|
|
$
|
41,909
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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
|
|
Six Months Ended
|
|
June 30,
|
|
June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
| Non-GAAP net income, adjusted for stock-based compensation expense, |
|
|
|
|
|
|
|
| amortization expense, unrealized (gain) loss on foreign currency, |
|
|
|
|
|
|
|
| costs related to Japan closure activities and transaction costs |
|
|
|
|
|
|
|
| GAAP net income |
$
|
2,557
|
|
|
$
|
12,915
|
|
|
$
|
7,652
|
|
|
$
|
16,627
|
|
| Add back: |
|
|
|
|
|
|
|
| Stock-based compensation expense |
|
4,031
|
|
|
|
4,941
|
|
|
|
8,428
|
|
|
|
10,561
|
|
| Amortization expense |
|
1,527
|
|
|
|
1,490
|
|
|
|
3,072
|
|
|
|
3,033
|
|
| Unrealized (gain) loss on foreign currency |
|
271
|
|
|
|
(402
|
)
|
|
|
360
|
|
|
|
220
|
|
| Costs related to Japan closure activities |
|
5,194
|
|
|
|
-
|
|
|
|
5,194
|
|
|
|
-
|
|
| Transaction costs 1 |
|
-
|
|
|
|
(7,655
|
)
|
|
|
-
|
|
|
|
(5,140
|
)
|
| Total adjustments 2 |
|
11,023
|
|
|
|
(1,626
|
)
|
|
|
17,054
|
|
|
|
8,674
|
|
| Income tax benefits on adjustments 3 |
|
(776
|
)
|
|
|
(575
|
)
|
|
|
(1,458
|
)
|
|
|
(3,576
|
)
|
| Non-GAAP net income |
$
|
12,804
|
|
|
$
|
10,714
|
|
|
$
|
23,248
|
|
|
$
|
21,725
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-GAAP net income per share: |
|
|
|
|
|
|
|
| Basic |
$
|
0.47
|
|
|
$
|
0.39
|
|
|
$
|
0.84
|
|
|
$
|
0.79
|
|
| Diluted |
$
|
0.46
|
|
|
$
|
0.39
|
|
|
$
|
0.84
|
|
|
$
|
0.78
|
|
|
|
|
|
|
|
|
|
| Shares used to compute non-GAAP net income per share: |
|
|
|
|
|
|
|
| Basic |
|
27,530,739
|
|
|
|
27,735,732
|
|
|
|
27,515,583
|
|
|
|
27,600,684
|
|
| Diluted |
|
27,536,823
|
|
|
|
27,744,870
|
|
|
|
27,524,019
|
|
|
|
27,741,464
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 1 Transaction costs include direct costs incurred in the Company's acquisition of Hubs, Inc. and the impact of changes in the fair value of acquisition-related contingent consideration obligations. |
| 2 Stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency, costs related to Japan closure activities and transaction costs were included in the following GAAP consolidated statement of operations categories: |
|
Three Months Ended
|
|
Six Months Ended
|
|
June 30,
|
|
June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
| Cost of revenue |
$
|
870
|
|
|
$
|
1,011
|
|
|
$
|
1,799
|
|
|
$
|
1,988
|
|
|
|
|
|
|
|
|
|
| Marketing and sales |
|
813
|
|
|
|
929
|
|
|
|
1,550
|
|
|
|
1,782
|
|
| Research and development |
|
471
|
|
|
|
744
|
|
|
|
1,100
|
|
|
|
1,368
|
|
| General and administrative |
|
3,404
|
|
|
|
(3,908
|
)
|
|
|
7,051
|
|
|
|
3,316
|
|
| Closure of Japan business |
|
5,194
|
|
|
|
-
|
|
|
|
5,194
|
|
|
|
-
|
|
| Total operating expenses |
|
9,882
|
|
|
|
(2,235
|
)
|
|
|
14,895
|
|
|
|
6,466
|
|
|
|
|
|
|
|
|
|
| Other (income) expense, net |
|
271
|
|
|
|
(402
|
)
|
|
|
360
|
|
|
|
220
|
|
| Total adjustments |
$
|
11,023
|
|
|
$
|
(1,626
|
)
|
|
$
|
17,054
|
|
|
$
|
8,674
|
|
|
|
|
|
|
|
|
|
| 3 For the three- and six-month periods ended June 30, 2022 and 2021, 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
|
|
Six Months Ended
|
|
Three Months Ended
|
|
June 30,
|
|
June 30,
|
|
March 31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
| Revenue |
$
|
126,902
|
|
|
$
|
123,048
|
|
|
$
|
251,070
|
|
|
$
|
239,174
|
|
|
$
|
124,168
|
|
|
$
|
116,126
|
|
| Gross Profit |
|
57,422
|
|
|
|
56,625
|
|
|
|
113,226
|
|
|
|
111,955
|
|
|
|
55,804
|
|
|
|
55,330
|
|
| GAAP gross margin |
|
45.2
|
%
|
|
|
46.0
|
%
|
|
|
45.1
|
%
|
|
|
46.8
|
%
|
|
|
44.9
|
%
|
|
|
47.6
|
%
|
| Add back: |
|
|
|
|
|
|
|
|
|
|
|
| Stock-based compensation expense |
|
528
|
|
|
|
668
|
|
|
|
1,115
|
|
|
|
1,303
|
|
|
|
587
|
|
|
|
635
|
|
| Amortization expense |
|
342
|
|
|
|
343
|
|
|
|
684
|
|
|
|
685
|
|
|
|
342
|
|
|
|
342
|
|
| Total adjustments |
|
870
|
|
|
|
1,011
|
|
|
|
1,799
|
|
|
|
1,988
|
|
|
|
929
|
|
|
|
977
|
|
| Non-GAAP gross profit |
$
|
58,292
|
|
|
$
|
57,636
|
|
|
$
|
115,025
|
|
|
$
|
113,943
|
|
|
$
|
56,733
|
|
|
$
|
56,307
|
|
| Non-GAAP gross margin |
|
45.9
|
%
|
|
|
46.8
|
%
|
|
|
45.8
|
%
|
|
|
47.6
|
%
|
|
|
45.7
|
%
|
|
|
48.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Proto Labs, Inc. |
| Reconciliation of GAAP to Non-GAAP Gross Margin Excluding Japan |
| (In thousands) |
| (Unaudited) |
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
June 30,
|
|
June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
| Revenue |
$
|
126,902
|
|
|
$
|
123,048
|
|
|
$
|
251,070
|
|
|
$
|
239,174
|
|
| Revenue excluding Japan |
$
|
124,046
|
|
|
$
|
119,999
|
|
|
$
|
244,128
|
|
|
$
|
232,501
|
|
| Gross Profit |
|
57,422
|
|
|
|
56,625
|
|
|
|
113,226
|
|
|
|
111,955
|
|
| GAAP gross margin |
|
45.2
|
%
|
|
|
46.0
|
%
|
|
|
45.1
|
%
|
|
|
46.8
|
%
|
| Less: Japan gross profit |
|
1,063
|
|
|
|
1,125
|
|
|
|
3,102
|
|
|
|
2,694
|
|
| Gross Profit excluding Japan |
|
56,359
|
|
|
|
55,500
|
|
|
|
110,124
|
|
|
|
109,261
|
|
| GAAP gross margin excluding Japan |
|
45.4
|
%
|
|
|
46.3
|
%
|
|
|
45.1
|
%
|
|
|
47.0
|
%
|
| Add back: |
|
|
|
|
|
|
|
| Stock-based compensation expense |
|
528
|
|
|
|
668
|
|
|
|
1,115
|
|
|
|
1,303
|
|
| Amortization expense |
|
342
|
|
|
|
343
|
|
|
|
684
|
|
|
|
685
|
|
| Less: |
|
|
|
|
|
|
|
| Japan stock-based compensation expense |
|
22
|
|
|
|
22
|
|
|
|
47
|
|
|
|
45
|
|
| Japan amortization expense |
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
| Total adjustments |
|
848
|
|
|
|
989
|
|
|
|
1,752
|
|
|
|
1,943
|
|
| Non-GAAP gross profit excluding Japan |
$
|
57,207
|
|
|
$
|
56,489
|
|
|
$
|
111,876
|
|
|
$
|
111,204
|
|
| Non-GAAP gross margin excluding Japan |
|
46.1
|
%
|
|
|
47.1
|
%
|
|
|
45.8
|
%
|
|
|
47.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Proto Labs, Inc. |
| Reconciliation of GAAP to Non-GAAP Operating Margin |
| (In thousands) |
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Revenue |
$
|
126,902
|
|
|
$
|
123,048
|
|
|
$
|
251,070
|
|
|
$
|
239,174
|
|
|
Income from operations |
|
5,201
|
|
|
|
16,104
|
|
|
|
13,091
|
|
|
|
20,365
|
|
|
GAAP operating margin |
|
4.1
|
%
|
|
|
13.1
|
%
|
|
|
5.2
|
%
|
|
|
8.5
|
%
|
|
Add back: |
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
4,031
|
|
|
|
4,941
|
|
|
|
8,428
|
|
|
|
10,561
|
|
|
Amortization expense |
|
1,527
|
|
|
|
1,490
|
|
|
|
3,072
|
|
|
|
3,033
|
|
|
Transaction costs 1 |
|
-
|
|
|
|
(7,655
|
)
|
|
|
-
|
|
|
|
(5,140
|
)
|
|
Costs related to Japan closure activities |
|
5,194
|
|
|
|
-
|
|
|
|
5,194
|
|
|
|
-
|
|
|
Total adjustments |
|
10,752
|
|
|
|
(1,224
|
)
|
|
|
16,694
|
|
|
|
8,454
|
|
|
Non-GAAP income from operations |
$
|
15,953
|
|
|
$
|
14,880
|
|
|
$
|
29,785
|
|
|
$
|
28,819
|
|
|
Non-GAAP operating margin |
|
12.6
|
%
|
|
|
12.1
|
%
|
|
|
11.9
|
%
|
|
|
12.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Transaction costs include direct costs incurred in the Company's acquisition of Hubs, Inc. and the impact of changes in the fair value of acquisition-related contingent consideration obligations. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Proto Labs, Inc. |
| Reconciliation of GAAP to Non-GAAP Operating Margin Excluding Japan |
| (In thousands) |
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Revenue |
$
|
126,902
|
|
|
$
|
123,048
|
|
|
$
|
251,070
|
|
|
$
|
239,174
|
|
|
Revenue excluding Japan |
$
|
124,046
|
|
|
$
|
119,999
|
|
|
$
|
244,128
|
|
|
$
|
232,501
|
|
|
Income from operations |
|
5,201
|
|
|
|
16,104
|
|
|
|
13,091
|
|
|
|
20,365
|
|
|
GAAP operating margin |
|
4.1
|
%
|
|
|
13.1
|
%
|
|
|
5.2
|
%
|
|
|
8.5
|
%
|
|
Less: Japan income from operations |
|
(542
|
)
|
|
|
(696
|
)
|
|
|
4
|
|
|
|
(654
|
)
|
|
Income from operations excluding Japan |
|
5,743
|
|
|
|
16,800
|
|
|
|
13,087
|
|
|
|
21,019
|
|
|
GAAP operating margin excluding Japan |
|
4.6
|
%
|
|
|
14.0
|
%
|
|
|
5.4
|
%
|
|
|
9.0
|
%
|
|
Add back: |
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
4,031
|
|
|
|
4,941
|
|
|
|
8,428
|
|
|
|
10,561
|
|
|
Amortization expense |
|
1,527
|
|
|
|
1,490
|
|
|
|
3,072
|
|
|
|
3,033
|
|
|
Transaction costs 1 |
|
-
|
|
|
|
(7,655
|
)
|
|
|
-
|
|
|
|
(5,140
|
)
|
|
Costs related to Japan closure activities |
|
5,194
|
|
|
|
-
|
|
|
|
5,194
|
|
|
|
-
|
|
|
Less: |
|
|
|
|
|
|
|
|
Japan stock-based compensation expense |
|
147
|
|
|
|
160
|
|
|
|
297
|
|
|
|
303
|
|
|
Japan amortization expense |
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Total adjustments |
|
10,605
|
|
|
|
(1,384
|
)
|
|
|
16,397
|
|
|
|
8,151
|
|
|
Non-GAAP income from operations excluding Japan |
$
|
16,348
|
|
|
$
|
15,416
|
|
|
$
|
29,484
|
|
|
$
|
29,170
|
|
|
Non-GAAP operating margin excluding Japan |
|
13.2
|
%
|
|
|
12.8
|
%
|
|
|
12.1
|
%
|
|
|
12.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Transaction costs include direct costs incurred in the Company's acquisition of Hubs, Inc. and the impact of changes in the fair value of acquisition-related contingent consideration obligations. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Proto Labs, Inc. |
| Reconciliation of GAAP Net Income to EBITDA and Adjusted EBITDA |
| (In thousands) |
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Revenue |
$
|
126,902
|
|
|
$
|
123,048
|
|
|
$
|
251,070
|
|
|
$
|
239,174
|
|
|
GAAP net income |
|
2,557
|
|
|
|
12,915
|
|
|
|
7,652
|
|
|
|
16,627
|
|
|
GAAP net income margin |
|
2.0
|
%
|
|
|
10.5
|
%
|
|
|
3.0
|
%
|
|
|
7.0
|
%
|
|
Add back: |
|
|
|
|
|
|
|
|
Amortization expense |
$
|
1,527
|
|
|
$
|
1,490
|
|
|
$
|
3,072
|
|
|
$
|
3,033
|
|
|
Depreciation expense |
|
8,515
|
|
|
|
8,578
|
|
|
|
17,202
|
|
|
|
17,094
|
|
|
Interest income, net |
|
(149
|
)
|
|
|
(65
|
)
|
|
|
(194
|
)
|
|
|
(152
|
)
|
|
Tax expense |
|
2,645
|
|
|
|
3,326
|
|
|
|
5,140
|
|
|
|
3,562
|
|
|
EBITDA |
|
15,095
|
|
|
|
26,244
|
|
|
|
32,872
|
|
|
|
40,164
|
|
|
EBITDA Margin |
|
11.9
|
%
|
|
|
21.3
|
%
|
|
|
13.1
|
%
|
|
|
16.8
|
%
|
|
Add back: |
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
4,031
|
|
|
|
4,941
|
|
|
|
8,428
|
|
|
|
10,561
|
|
|
Unrealized (gain) loss on foreign currency |
|
271
|
|
|
|
(402
|
)
|
|
|
360
|
|
|
|
220
|
|
|
Costs related to Japan closure activities |
|
5,194
|
|
|
|
-
|
|
|
|
5,194
|
|
|
|
-
|
|
|
Transaction costs 1 |
|
-
|
|
|
|
(7,655
|
)
|
|
|
-
|
|
|
|
(5,140
|
)
|
|
Total adjustments |
|
9,496
|
|
|
|
(3,116
|
)
|
|
|
13,982
|
|
|
|
5,641
|
|
|
Adjusted EBITDA |
$
|
24,591
|
|
|
$
|
23,128
|
|
|
$
|
46,854
|
|
|
$
|
45,805
|
|
|
Adjusted EBITDA Margin |
|
19.4
|
%
|
|
|
18.8
|
%
|
|
|
18.7
|
%
|
|
|
19.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Transaction costs include direct costs incurred in the Company's acquisition of Hubs, Inc. and the impact of changes in the fair value of acquisition-related contingent consideration obligations. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Proto Labs, Inc. |
| Comparison of GAAP to Non-GAAP Revenue Growth by Region |
| (In thousands) |
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2022
|
|
Three Months Ended
June 30, 2021
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
Foreign
Currency1
|
|
Hubs
Acquisition
|
|
Non-GAAP
|
|
GAAP
|
|
%
Change3
|
|
|
% Change
Organic4
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States |
|
$
|
100,655
|
|
$
|
-
|
|
$
|
-
|
|
|
$
|
100,655
|
|
$
|
95,344
|
|
5.6
|
|
%
|
|
5.6
|
|
%
|
|
Europe |
|
|
23,391
|
|
|
2,225
|
|
|
-
|
|
|
|
25,616
|
|
|
24,655
|
|
(5.1
|
)
|
|
|
3.9
|
|
|
|
Japan |
|
|
2,856
|
|
|
524
|
|
|
-
|
|
|
|
3,380
|
|
|
3,049
|
|
(6.3
|
)
|
|
|
10.9
|
|
|
|
Total Revenue |
|
$
|
126,902
|
|
$
|
2,749
|
|
$
|
-
|
|
|
$
|
129,651
|
|
$
|
123,048
|
|
3.1
|
|
%
|
|
5.4
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2022
|
|
Six Months Ended
June 30, 2021
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
Foreign
Currency1
|
|
Hubs
Acquisition2
|
|
Non-GAAP
|
|
GAAP
|
|
%
Change3
|
|
|
% Change
Organic4
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States |
|
$
|
196,151
|
|
$
|
-
|
|
$
|
(1,049
|
)
|
|
$
|
195,102
|
|
$
|
186,397
|
|
5.2
|
|
%
|
|
4.7
|
|
%
|
|
Europe |
|
|
47,977
|
|
|
3,376
|
|
|
(1,279
|
)
|
|
|
50,074
|
|
|
46,104
|
|
4.1
|
|
|
|
8.6
|
|
|
|
Japan |
|
|
6,942
|
|
|
916
|
|
|
-
|
|
|
|
7,858
|
|
|
6,673
|
|
4.0
|
|
|
|
17.8
|
|
|
|
Total Revenue |
|
$
|
251,070
|
|
$
|
4,292
|
|
$
|
(2,328
|
)
|
|
$
|
253,034
|
|
$
|
239,174
|
|
5.0
|
|
%
|
|
5.8
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Revenue for the three- and six-month periods ended June 30, 2022 has been recalculated using 2021 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 Revenue for the six-month period ended June 30, 2022 has been recalculated to exclude revenue earned from the Company's acquisition of Hubs, Inc. for the period from January 1, 2022 to January 21, 2022 to provide information useful in evaluating the underlying business trends excluding the impact of acquisitions. The Hubs, Inc. acquisition occurred on January 22, 2021 and was included in 2021 revenue after that date. |
|
3 This column presents the percentage change from GAAP revenue for the three- and six-month periods ended June 30, 2021 to GAAP revenue for the three- and six-month periods ended June 30, 2022. |
|
4 This column presents the percentage change from GAAP revenue for the three- and six-month periods ended June 30, 2021 to non-GAAP revenue for the three- and six-month periods ended June 30, 2022 (as recalculated using the foreign currency exchange rates in effect during the three-month period ended June 30, 2021, excluding the impact of Hubs, Inc. acquisition) 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
June 30, 2022
|
|
Three Months Ended
June 30, 2021
|
|
|
|
|
|
|
|
|
GAAP
|
|
Foreign
Currency1
|
|
Hubs
Acquisition
|
|
Non-GAAP
|
|
GAAP
|
|
%
Change3
|
|
|
% Change
Organic4
|
|
| Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Injection Molding |
$
|
53,355
|
|
$
|
1,541
|
|
$
|
-
|
|
|
$
|
54,896
|
|
$
|
58,168
|
|
(8.3
|
)
|
%
|
|
(5.6
|
)
|
%
|
| CNC Machining |
|
|
48,222
|
|
|
717
|
|
|
-
|
|
|
|
48,939
|
|
|
41,592
|
|
15.9
|
|
|
|
17.7
|
|
|
| 3D Printing |
|
|
19,963
|
|
|
490
|
|
|
-
|
|
|
|
20,453
|
|
|
18,170
|
|
9.9
|
|
|
|
12.6
|
|
|
| Sheet Metal |
|
|
5,160
|
|
|
-
|
|
|
-
|
|
|
|
5,160
|
|
|
4,717
|
|
9.4
|
|
|
|
9.4
|
|
|
| Other |
|
|
202
|
|
|
1
|
|
|
-
|
|
|
|
203
|
|
|
401
|
|
(49.6
|
)
|
|
|
(49.4
|
)
|
|
| Total Revenue |
|
$
|
126,902
|
|
$
|
2,749
|
|
$
|
-
|
|
|
$
|
129,651
|
|
$
|
123,048
|
|
3.1
|
|
%
|
|
5.4
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2022
|
|
Six Months Ended
June 30, 2021
|
|
|
|
|
|
|
|
|
GAAP
|
|
Foreign
Currency1
|
|
Hubs
Acquisition2
|
|
Non-GAAP
|
|
GAAP
|
|
%
Change3
|
|
|
% Change
Organic4
|
|
| Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Injection Molding |
$
|
106,753
|
|
$
|
2,425
|
|
$
|
(189
|
)
|
|
$
|
108,989
|
|
$
|
114,527
|
|
(6.8
|
)
|
%
|
|
(4.8
|
)
|
%
|
| CNC Machining |
|
|
94,320
|
|
|
1,113
|
|
|
(1,637
|
)
|
|
|
93,796
|
|
|
78,295
|
|
20.5
|
|
|
|
19.8
|
|
|
| 3D Printing |
|
|
39,635
|
|
|
750
|
|
|
(408
|
)
|
|
|
39,977
|
|
|
35,405
|
|
11.9
|
|
|
|
12.9
|
|
|
| Sheet Metal |
|
|
9,847
|
|
|
-
|
|
|
(84
|
)
|
|
|
9,763
|
|
|
9,936
|
|
(0.9
|
)
|
|
|
(1.7
|
)
|
|
| Other |
|
|
515
|
|
|
4
|
|
|
(10
|
)
|
|
|
509
|
|
|
1,011
|
|
(49.1
|
)
|
|
|
(49.6
|
)
|
|
| Total Revenue |
|
$
|
251,070
|
|
$
|
4,292
|
|
$
|
(2,328
|
)
|
|
$
|
253,034
|
|
$
|
239,174
|
|
5.0
|
|
%
|
|
5.8
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 1 Revenue for the three- and six-month periods ended June 30, 2022 has been recalculated using 2021 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 Revenue for the six-month period ended June 30, 2022 has been recalculated to exclude revenue earned from the Company's acquisition of Hubs, Inc. for the period from January 1, 2022 to January 21, 2022 to provide information useful in evaluating the underlying business trends excluding the impact of acquisitions. The Hubs, Inc. acquisition occurred on January 22, 2021 and was included in 2021 revenue after that date. |
| 3 This column presents the percentage change from GAAP revenue for the three- and six-month periods ended June 30, 2021 to GAAP revenue for the three- and six-month periods ended June 30, 2022. |
| 4 This column presents the percentage change from GAAP revenue for the three- and six-month periods ended June 30, 2021 to non-GAAP revenue for the three- and six-month periods ended June 30, 2022 (as recalculated using the foreign currency exchange rates in effect during the three-month period ended June 30, 2021, excluding the impact of Hubs, Inc. acquisition) in order to provide a constant-currency comparison. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Proto Labs, Inc. |
| Product Developer Information |
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Unique product developers and engineers served |
|
|
|
24,058
|
|
23,253
|
|
36,878
|
|
35,065
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20220805005030/en/