3D Systems Q3 2024 Earnings Report
Key Takeaways
3D Systems reported a decrease in revenue by 9% year-over-year, primarily due to macro weakness in printer sales, while healthcare solutions revenue increased by 5%. The company experienced a net loss of $178.6 million, including a $143.7 million impairment charge. They are updating guidance for the remainder of FY'24 to include expected full-year revenues within the range of $440 million - $450 million.
Revenue decreased 9% year-over-year to $112.9 million due to macro weakness in printer sales, but consumables sales grew by approximately 10%.
Healthcare Solutions revenue grew 5% year-over-year to $55.1 million, driven by Dental and Personalized Healthcare solutions.
Customer interest in 3D printing applications continued to increase, with revenues in the Application Innovation Group (AIG) growing over 26% year-to-date.
Q3'24 net loss was $178.6 million, or $1.35 diluted loss per share, including $143.7 million associated with asset impairment, with a non-GAAP diluted loss per share of $0.12.
3D Systems
3D Systems
3D Systems Revenue by Segment
Forward Guidance
3D Systems updated its full-year 2024 revenue guidance to a range of $440 million to $450 million, expects Non-GAAP operating expenses to be less than $60 million for Q4'24, and anticipates sequential improvement in Adjusted EBITDA.
Positive Outlook
- OPEX will decrease again in Q4, to below $60 million.
- Combined factors should yield a sequential improvement in Adjusted EBITDA
- Company will be placed on a trajectory towards profitability in the quarters ahead.
- Consistent fueling of R&D engines is now driving an acceleration of exciting new customer applications.
- Supported by outstanding new products spanning from new printer hardware to advanced engineering materials, to enhancement of our software capabilities.
Challenges Ahead
- Macroeconomic and geopolitical headwinds.
- Timing uncertainties and normal quarter-to-quarter inventory management at year-end.
- Sluggish capital investments by customers for new production capacity, particularly in the Industrial markets, impacting the sale of new printing systems.
- Third quarter revenues continued to be impacted by the above.
- Gross profit margin decreased primarily due to unfavorable absorption associated with lower volumes and approximately $3 million associated with an increase in inventory reserves.