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Mar 31, 2024

3D Systems Q1 2024 Earnings Report

Reported a decrease in revenue due to lower printer sales, offset by growth in materials and services, and a net loss impacted by audit fees.

Key Takeaways

3D Systems reported a 15.1% decrease in revenue to $102.9 million, primarily due to lower printer sales. The company experienced a net loss of $16.0 million, which included $5 million in audit-related fees. Despite these challenges, the company anticipates improved performance in the coming quarters.

Q1 2024 revenue decreased by 15.1% year-over-year to $102.9 million.

Gross profit margin was 39.8%, with a non-GAAP gross profit margin of 40.1%.

Net loss for Q1 2024 was $16.0 million, or $0.12 per share, including $5 million in audit fees.

Adjusted EBITDA was negative $20.1 million, reflecting lower sales and higher operating expenses.

Total Revenue
$103M
Previous year: $121M
-15.1%
EPS
-$0.17
Previous year: -$0.09
+88.9%
39.8%
Previous year: 38.8%
+2.6%
40.1%
Previous year: 39%
+2.8%
Adjusted EBITDA
-$20.1M
Gross Profit
$40.9M
Previous year: $47M
-13.0%
Cash and Equivalents
$212M
Previous year: $530M
-60.0%
Free Cash Flow
-$28.7M
Previous year: -$36.7M
-21.8%
Total Assets
$857M
Previous year: $1.44B
-40.6%

3D Systems

3D Systems

3D Systems Revenue by Segment

Forward Guidance

3D Systems expects Q2 2024 revenues to be in the range of $113.0 - $113.5 million, with continued sequential improvement throughout the balance of 2024.

Positive Outlook

  • Expecting second quarter revenues within the range of $113.0 - $113.5 million.
  • Anticipating continued sequential improvement throughout the balance of 2024.
  • Interest in additive applications remains robust.
  • Beginning to see signs of encouragement in certain demand markets.
  • Top-line performance is expected to improve as the year progresses.

Challenges Ahead

  • Unfavorable macroeconomic and geopolitical conditions continue to impact hardware printer sales.
  • Extended timeline to conclude the 2023 audit created a significant headwind to overall operating expenses.
  • Impact of exceptional audit costs drove operating expense approximately $5 million higher than originally anticipated in the quarter.
  • Industrial segment was impacted by an unfavorable capital spend environment.
  • Weakness in most sectors offset strong performance from Aerospace and Defense customers.

Revenue & Expenses

Visualization of income flow from segment revenue to net income