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Dec 31, 2019

3D Systems Q4 2019 Earnings Report

3D Systems' Q4 2019 financial performance reflected a decrease in revenue and printer sales, along with a GAAP loss per share, but showed improvements in cash generation and reduced operating expenses.

Key Takeaways

3D Systems reported a decrease in revenue for Q4 2019 compared to the same period last year, with printer revenue experiencing a significant decline. The company reported a GAAP loss of $0.04 per share, consistent with the previous year, but non-GAAP earnings decreased. Despite macroeconomic challenges, there was growth in materials revenue in the second half of the year, and the company focused on cost structure improvements.

Q4 revenue decreased to $164.6 million from $180.7 million year-over-year.

GAAP loss per share remained at $0.04, while non-GAAP earnings per share decreased to $0.05.

Printer revenue declined by 22.8%, attributed to shipment delays and a softer industrial environment.

Cash from operations improved, generating $21.5 million during the quarter.

Total Revenue
$165M
Previous year: $181M
-8.9%
EPS
$0.05
Previous year: $0.1
-50.0%
Gross Profit
$71.8M
Cash and Equivalents
$134M
Free Cash Flow
$15.8M
Total Assets
$807M

3D Systems

3D Systems

Forward Guidance

The company anticipates that the planned shipment of factory metals printers in the second quarter of 2020 will accelerate the adoption of additive manufacturing technology and drive profitable revenue growth.

Positive Outlook

  • Planned shipment of factory metals printers in Q2 2020
  • Anticipated acceleration in the adoption of additive manufacturing technology
  • Expected drive in profitable revenue growth
  • Focus on cost structure improvements
  • Confidence in having the right products and solutions for future growth

Challenges Ahead

  • Macroeconomic headwinds impacted revenue
  • Delay in factory metals printing shipments affected printer revenue
  • Timing of large enterprise customer orders impacted revenue
  • Softer macro industrial environment contributed to revenue decline
  • Healthcare solutions revenue decreased including a large enterprise customer