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Dec 31, 2023

3D Systems Q4 2023 Earnings Report

Reported a decrease in revenue due to softness in dental orthodontics and delayed customer capex investments, resulting in a net loss primarily driven by non-cash impairment of goodwill and other intangible assets.

Key Takeaways

3D Systems reported a 13.5% decrease in Q4 revenue compared to the previous year, primarily due to significant softness in dental orthodontics and depressed printer sales. The company experienced a net loss of $300.4 million, largely driven by non-cash impairment charges. Despite the revenue decline, the non-GAAP gross profit margin increased due to product mix improvements.

Q4 2023 revenue decreased by 13.5% year-over-year to $114.8 million.

Net loss for Q4 2023 was $300.4 million, with a diluted loss per share of $2.30.

Non-GAAP diluted loss per share for Q4 2023 was $0.11.

Adjusted EBITDA for Q4 2023 resulted in a loss of $12.3 million, driven by lower revenue and increased operating expenses.

Total Revenue
$115M
Previous year: $133M
-13.5%
EPS
-$0.11
Previous year: -$0.06
+83.3%
38.3%
39.8%
Gross Profit
$46.3M
Previous year: $41.2
+112495045.6%
Cash and Equivalents
$332M
Previous year: $569K
+58191.4%
Free Cash Flow
-$15M
Previous year: -$21.4M
-30.1%
Total Assets
$980M
Previous year: $1.45B
-32.2%

3D Systems

3D Systems

3D Systems Revenue by Segment

Forward Guidance

The company expects relatively flat top line revenue for the year and prioritizes completion of restructuring program to improve margins and deliver positive adjusted-EBITDA performance and operating cash flow for the full year.

Positive Outlook

  • Prioritizing completion of restructuring program.
  • Expecting efforts to favorably impact both COGS and OPEX.
  • Expecting further improvement in gross margins.
  • Aiming to deliver positive adjusted-EBITDA performance for the full year.
  • Aiming to deliver positive operating cash flow for the full year.

Challenges Ahead

  • Continuing risks to the world economy.
  • Expect moderating but continued sales pressures.
  • Relatively flat top line revenue expectations for the year.
  • Restructuring program includes headcount reductions.
  • Restructuring program includes significant site consolidations and a reduction in external spending.

Revenue & Expenses

Visualization of income flow from segment revenue to net income