EX-99.1 2 ex_440181.htm EXHIBIT 99.1 ex_440181.htm

Exhibit 99.1

 

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Protolabs Reports Financial Results for the Third Quarter of 2022

 

Revenue of $121.7 million in the Third Quarter of 2022;

GAAP Earnings Per Share of $0.14, Non-GAAP Earnings Per Share of $0.40

 

MAPLE PLAIN, Minn. November 4, 2022 – Proto Labs, Inc. (NYSE: PRLB), the world’s leading provider of digital manufacturing services, today announced financial results for the third quarter ended September 30, 2022.

 

Third Quarter 2022 Highlights include:

 

 

Revenue for the third quarter of 2022 was $121.7 million, representing a 2.9 percent decrease compared to revenue of $125.3 million in the third quarter of 2021.

 

Hubs generated $12.1 million of revenue in the third quarter, representing year-over-year growth of 38.5 percent.

 

On a GAAP basis, costs related to the closure of Japan operations were $1.2 million in the quarter. Total costs year to date are $6.4 million. These costs have been excluded from our Non-GAAP results. See “Non-GAAP Financial Measures” below.

 

Net income was $4.0 million, or $0.14 per diluted share.

 

Non-GAAP net income was $10.9 million, or $0.40 per diluted share.

 

“We experienced continued softening of our Injection Molding business, however, we are pleased with the continued growth of our other digital manufacturing services and Hubs business,” said Rob Bodor, President and Chief Executive Officer. “As we face an uncertain economic environment ahead, I am confident in our strategy and the value we bring to market, and the ability of our team to deliver long term revenue growth and profitability.”

 

Additional Third Quarter 2022 Highlights include:

 

 

Protolabs served 23,816 unique product developers during the third quarter of 2022.

 

Gross margin was 44.1 percent of revenue, compared to 45.2 percent of revenue in the second quarter of 2022.

 

Non-GAAP gross margin was 44.8 percent of revenue, compared to 45.9 percent of revenue in the second quarter of 2022.

 

EBITDA was $15.5 million, or 12.7 percent of revenue.

 

Adjusted EBITDA was $22.0 million, or 18.0 percent of revenue.

 

Cash and investments balance was $113.9 million as of September 30, 2022.

 

“Our financial position remains strong as we produced $20.5 million in cash from operations in the quarter,” said Dan Schumacher, Chief Financial Officer. “As we monitor the economy, we are tightening our cost controls and will continue to focus investments to fuel the execution of our strategy.”

 

 

 

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, 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 third quarter 2022 financial results and fourth quarter 2022 outlook today, November 4, 2022 at 8:30 a.m. EST. 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. EST 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/gfmzxbyg. 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.

Source: Proto Labs, Inc.

 

Investor Relations Contact

Protolabs

Ryan Johnsrud, 612-225-4873

Manager – Investor Relations and FP&A

ryan.johnsrud@protolabs.com

 

Media Contact

Protolabs

Brent Renneke, 763-479-7704

PR & Media Strategist

brent.renneke@protolabs.com

 

 

 

             

Proto Labs, Inc.

Condensed Consolidated Balance Sheets

(In thousands)

             

 

   

September 30,

   

December 31,

 
   

2022

   

2021

 
   

(Unaudited)

         

Assets

               

Current assets

               

Cash and cash equivalents

  $ 59,361     $ 65,929  

Short-term marketable securities

    25,253       11,580  

Accounts receivable, net

    80,611       80,051  

Inventory

    14,617       13,161  

Income taxes receivable

    763       1,321  

Prepaid expenses and other current assets

    11,752       11,450  

Total current assets

    192,357       183,492  
                 

Property and equipment, net

    259,856       280,346  

Goodwill

    383,558       400,610  

Other intangible assets, net

    31,907       37,998  

Long-term marketable securities

    29,257       14,340  

Operating lease assets

    4,293       5,578  

Finance lease assets

    1,524       1,898  

Other long-term assets

    4,186       4,320  

Total assets

  $ 906,938     $ 928,582  
                 

Liabilities and shareholders' equity

               

Current liabilities

               

Accounts payable

  $ 16,893     $ 25,364  

Accrued compensation

    15,087       13,704  

Accrued liabilities and other

    25,478       11,980  

Current operating lease liabilities

    1,773       3,298  

Current finance lease liabilities

    1,484       550  

Income taxes payable

    5       -  

Total current liabilities

    60,720       54,896  
                 

Long-term operating lease liabilities

    2,477       2,245  

Long-term finance lease liabilities

    -       1,351  

Long-term deferred tax liabilities

    26,864       35,892  

Other long-term liabilities

    6,031       5,705  
                 

Shareholders' equity

    810,846       828,493  

Total liabilities and shareholders' equity

  $ 906,938     $ 928,582  
                 

 

 

 

Proto Labs, Inc.

Condensed Consolidated Statements of Operations

(In thousands, except share and per share amounts)

(Unaudited)

 

   

Three Months Ended

   

Nine Months Ended

 
   

September 30,

   

September 30,

 
   

2022

   

2021

   

2022

   

2021

 

Revenue

                               

Injection Molding

  $ 48,940     $ 57,685     $ 155,693     $ 172,212  

CNC Machining

    47,489       43,658       141,809       121,953  

3D Printing

    19,823       18,589       59,458       53,994  

Sheet Metal

    5,219       4,854       15,066       14,790  

Other

    250       556       765       1,567  

Total revenue

    121,721       125,342       372,791       364,516  
                                 

Cost of revenue

    68,089       70,018       205,933       197,237  

Gross profit

    53,632       55,324       166,858       167,279  
                                 

Operating expenses

                               

Marketing and sales

    20,594       21,422       62,235       61,946  

Research and development

    9,309       10,614       29,316       33,855  

General and administrative

    16,477       16,361       49,770       44,186  

Closure of Japan business

    1,194       -       6,388       -  

Total operating expenses

    47,574       48,397       147,709       139,987  

Income from operations

    6,058       6,927       19,149       27,292  

Other income (loss), net

    (24 )     136       (323 )     (40 )

Income before income taxes

    6,034       7,063       18,826       27,252  

Provision for income taxes

    2,083       2,228       7,223       5,790  

Net income

  $ 3,951     $ 4,835     $ 11,603     $ 21,462  
                                 

Net income per share:

                               

Basic

  $ 0.14     $ 0.17     $ 0.42     $ 0.78  

Diluted

  $ 0.14     $ 0.17     $ 0.42     $ 0.77  
                                 

Shares used to compute net income per share:

                               

Basic

    27,505,097       27,713,229       27,512,057       27,638,611  

Diluted

    27,508,217       27,730,105       27,522,734       27,707,784  
                                 

 

 

 

Proto Labs, Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

   

Nine Months Ended

 
   

September 30,

 
   

2022

   

2021

 

Operating activities

               

Net income

  $ 11,603     $ 21,462  

Adjustments to reconcile net income to net cash provided by operating activities:

               

Depreciation and amortization

    29,981       30,231  

Stock-based compensation expense

    13,335       15,539  

Deferred taxes

    (8,920 )     (139 )

Changes in fair value of contingent consideration

    -       (8,513 )

Impairments related to closure of Japan business

    2,842       -  

Gain on disposal of property and equipment

    (1,174 )     -  

Other

    11       442  

Changes in operating assets and liabilities

    3,886       (26,797 )

Net cash provided by operating activities

    51,564       32,225  
                 

Investing activities

               

Purchases of property, equipment and other capital assets

    (16,414 )     (27,956 )

Proceeds from sales of property, equipment and other capital assets

    3,227       -  

Cash used for acquisitions, net of cash acquired

    -       (127,413 )

Purchases of marketable securities

    (45,872 )     (15,159 )

Proceeds from sales of marketable securities

    1,998       57,089  

Proceeds from call redemptions and maturities of marketable securities

    13,696       15,114  

Net cash used in investing activities

    (43,365 )     (98,325 )
                 

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

    (13,074 )     (13,036 )

Principal repayments of finance lease obligations

    (417 )     (413 )

Net cash used in financing activities

    (12,795 )     (13,820 )

Effect of exchange rate changes on cash and cash equivalents

    (1,972 )     119  

Net decrease in cash and cash equivalents

    (6,568 )     (79,801 )

Cash and cash equivalents, beginning of period

    65,929       127,603  

Cash and cash equivalents, end of period

  $ 59,361     $ 47,802  
                 

 

 

 

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

   

Nine Months Ended

 
   

September 30,

   

September 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

  $ 3,951     $ 4,835     $ 11,603     $ 21,462  

Add back:

                               

Stock-based compensation expense

    4,907       4,978       13,335       15,539  

Amortization expense

    1,510       1,568       4,582       4,601  

Unrealized (gain) loss on foreign currency

    382       121       742       341  

Costs related to Japan closure activities

    1,194       -       6,388       -  

Transaction costs 1

    -       (730 )     -       (5,870 )

Total adjustments 2

    7,993       5,937       25,047       14,611  

Income tax benefits on adjustments 3

    (1,060 )     (1,063 )     (2,518 )     (4,639 )

Non-GAAP net income

  $ 10,884     $ 9,709     $ 34,132     $ 31,434  
                                 
                                 

Non-GAAP net income per share:

                               

Basic

  $ 0.40     $ 0.35     $ 1.24     $ 1.14  

Diluted

  $ 0.40     $ 0.35     $ 1.24     $ 1.13  
                                 

Shares used to compute non-GAAP net income per share:

                               

Basic

    27,505,097       27,713,229       27,512,057       27,638,611  

Diluted

    27,508,217       27,730,105       27,522,734       27,707,784  
                                 

 

 

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

   

Nine Months Ended

 
   

September 30,

   

September 30,

 
   

2022

   

2021

   

2022

   

2021

 
                                 

Cost of revenue

  $ 902     $ 986     $ 2,701     $ 2,974  
                                 

Marketing and sales

    929       1,059       2,479       2,841  

Research and development

    602       776       1,702       2,144  

General and administrative

    3,984       2,995       11,035       6,311  

Closure of Japan business

    1,194       -       6,388       -  

Total operating expenses

    6,709       4,830       21,604       11,296  
                                 

Other (income) expense, net

    382       121       742       341  

Total adjustments

  $ 7,993     $ 5,937     $ 25,047     $ 14,611  

 

 

3 For the three- and nine-month periods ended September 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

   

Nine Months Ended

   

Three Months Ended

 
   

September 30,

   

September 30,

   

June 30,

 
   

2022

   

2021

   

2022

   

2021

   

2022

   

2021

 

Revenue

  $ 121,721     $ 125,342     $ 372,791     $ 364,516     $ 126,902     $ 123,048  

Gross Profit

    53,632       55,324       166,858       167,279       57,422       56,625  

GAAP gross margin

    44.1 %     44.1 %     44.8 %     45.9 %     45.2 %     46.0 %

Add back:

                                               

Stock-based compensation expense

    560       644       1,674       1,947       528       668  

Amortization expense

    342       342       1,027       1,027       342       343  

Total adjustments

    902       986       2,701       2,974       870       1,011  

Non-GAAP gross profit

  $ 54,534     $ 56,310     $ 169,559     $ 170,253     $ 58,292     $ 57,636  

Non-GAAP gross margin

    44.8 %     44.9 %     45.5 %     46.7 %     45.9 %     46.8 %
                                                 

 

 

Proto Labs, Inc.

Reconciliation of GAAP to Non-GAAP Gross Margin Excluding Japan

(In thousands)

(Unaudited)

 

   

Three Months Ended

   

Nine Months Ended

 
   

September 30,

   

September 30,

 
   

2022

   

2021

   

2022

   

2021

 

Revenue

  $ 121,721     $ 125,342     $ 372,791     $ 364,516  

Revenue excluding Japan

  $ 120,434     $ 122,282     $ 364,562     $ 354,783  

Gross Profit

    53,632       55,324       166,858       167,279  

GAAP gross margin

    44.1 %     44.1 %     44.8 %     45.9 %

Less: Japan gross profit

    47       1,151       3,150       3,845  

Gross Profit excluding Japan

    53,585       54,173       163,708       163,434  

GAAP gross margin excluding Japan

    44.5 %     44.3 %     44.9 %     46.1 %

Add back:

                               

Stock-based compensation expense

    560       644       1,674       1,947  

Amortization expense

    342       342       1,027       1,027  

Less:

                               

Japan stock-based compensation expense

    13       26       61       70  

Japan amortization expense

    -       -       -       -  

Total adjustments

    889       960       2,640       2,904  

Non-GAAP gross profit excluding Japan

  $ 54,474     $ 55,133     $ 166,348     $ 166,338  

Non-GAAP gross margin excluding Japan

    45.2 %     45.1 %     45.6 %     46.9 %
                                 

 

 

 

Proto Labs, Inc.

Reconciliation of GAAP to Non-GAAP Operating Margin

(In thousands)

(Unaudited)

 

   

Three Months Ended

   

Nine Months Ended

 
   

September 30,

   

September 30,

 
   

2022

   

2021

   

2022

   

2021

 

Revenue

  $ 121,721     $ 125,342     $ 372,791     $ 364,516  

Income from operations

    6,058       6,927       19,149       27,292  

GAAP operating margin

    5.0 %     5.5 %     5.1 %     7.5 %

Add back:

                               

Stock-based compensation expense

    4,907       4,978       13,335       15,539  

Amortization expense

    1,510       1,568       4,582       4,601  

Transaction costs 1

    -       (730 )     -       (5,870 )

Costs related to Japan closure activities

    1,194       -       6,388       -  

Total adjustments

    7,611       5,816       24,305       14,270  

Non-GAAP income from operations

  $ 13,669     $ 12,743     $ 43,454     $ 41,562  

Non-GAAP operating margin

    11.2 %     10.2 %     11.7 %     11.4 %
                                 

 

 

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

   

Nine Months Ended

 
   

September 30,

   

September 30,

 
   

2022

   

2021

   

2022

   

2021

 

Revenue

  $ 121,721     $ 125,342     $ 372,791     $ 364,516  

Revenue excluding Japan

  $ 120,434     $ 122,282     $ 364,562     $ 354,783  

Income from operations

    6,058       6,927       19,149       27,292  

GAAP operating margin

    5.0 %     5.5 %     5.1 %     7.5 %

Less: Japan income from operations

    (724 )     (521 )     (720 )     (1,174 )

Income from operations excluding Japan

    6,782       7,448       19,869       28,466  

GAAP operating margin excluding Japan

    5.6 %     6.1 %     5.5 %     8.0 %

Add back:

                               

Stock-based compensation expense

    4,907       4,978       13,335       15,539  

Amortization expense

    1,510       1,568       4,582       4,601  

Transaction costs 1

    -       (730 )     -       (5,870 )

Costs related to Japan closure activities

    1,194       -       6,388       -  

Less:

                               

Japan stock-based compensation expense

    89       160       386       464  

Japan amortization expense

    -       -       -       -  

Total adjustments

    7,522       5,656       23,919       13,806  

Non-GAAP income from operations excluding Japan

  $ 14,304     $ 13,104     $ 43,788     $ 42,272  

Non-GAAP operating margin excluding Japan

    11.9 %     10.7 %     12.0 %     11.9 %

 

               
 

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

   

Nine Months Ended

 
   

September 30,

   

September 30,

 
   

2022

   

2021

   

2022

   

2021

 

Revenue

  $ 121,721     $ 125,342     $ 372,791     $ 364,516  

GAAP net income

    3,951       4,835       11,603       21,462  

GAAP net income margin

    3.2 %     3.9 %     3.1 %     5.9 %

Add back:

                               

Amortization expense

  $ 1,510     $ 1,568     $ 4,582     $ 4,601  

Depreciation expense

    8,197       8,536       25,399       25,630  

Interest income, net

    (265 )     (55 )     (459 )     (207 )

Tax expense

    2,083       2,228       7,223       5,790  

EBITDA

    15,476       17,112       48,348       57,276  

EBITDA Margin

    12.7 %     13.7 %     13.0 %     15.7 %

Add back:

                               

Stock-based compensation expense

    4,907       4,978       13,335       15,539  

Unrealized (gain) loss on foreign currency

    382       121       742       341  

Costs related to Japan closure activities

    1,194       -       6,388       -  

Transaction costs 1

    -       (730 )     -       (5,870 )

Total adjustments

    6,483       4,369       20,465       10,010  

Adjusted EBITDA

  $ 21,959     $ 21,481     $ 68,813     $ 67,286  

Adjusted EBITDA Margin

    18.0 %     17.1 %     18.5 %     18.5 %
               
               
 

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.

Comparison of GAAP to Non-GAAP Revenue Growth by Region

(In thousands)

(Unaudited)

 

   

Three Months Ended
September 30, 2022

   

Three Months Ended
September 30, 2021

   

%

    %  
   

GAAP

   

Foreign Currency1

   

Hubs Acquisition

   

Non-GAAP

   

GAAP

   

Change3

   

Change Organic4

 

Revenues

                                                       

United States

  $ 98,970     $ -     $ -     $ 98,970     $ 100,127       (1.2

)%

    (1.2

)%

Europe

    21,464       3,789       -       25,253       22,155       (3.1 )     14.0  

Japan

    1,287       310       -       1,597       3,060       (57.9 )     (47.8 )

Total Revenue

  $ 121,721     $ 4,099     $ -     $ 125,820     $ 125,342       (2.9

)%

    0.4

%

                                                         

 

   

Nine Months Ended
September 30, 2022

   

Nine Months Ended
September 30, 2021

   

%

    %  
   

GAAP

   

Foreign Currency1

   

Hubs Acquisition2

   

Non-GAAP

   

GAAP

   

Change3

   

Change Organic4

 

Revenues

                                                       

United States

  $ 295,121     $ -     $ (1,049 )   $ 294,072     $ 286,524       3.0

%

    2.6

%

Europe

    69,441       7,165       (1,279 )     75,327       68,259       1.7       10.4  

Japan

    8,229       1,226       -       9,455       9,733       (15.5 )     (2.9 )

Total Revenue

  $ 372,791     $ 8,391     $ (2,328 )   $ 378,854     $ 364,516       2.3

%

    3.9

%

 

 

1 Revenue for the three- and nine-month periods ended September 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 nine-month period ended September 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 nine-month periods ended September 30, 2021 to GAAP revenue for the three- and nine-month periods ended September 30, 2022.

   
 

4 This column presents the percentage change from GAAP revenue for the three- and nine-month periods ended September 30, 2021 to non-GAAP revenue for the three- and nine-month periods ended September 30, 2022 (as recalculated using the foreign currency exchange rates in effect during the three- and nine-month periods ended September 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
September 30, 2022

   

Three Months Ended
September 30, 2021

   

%

    %  
   

GAAP

   

Foreign Currency1

   

Hubs Acquisition

   

Non-GAAP

   

GAAP

   

Change3

   

Change Organic4

 

Revenues

                                                       

Injection Molding

  $ 48,940     $ 1,677     $ -     $ 50,617     $ 57,685       (15.2

)%

    (12.3

)%

CNC Machining

    47,489       1,580       -       49,069       43,658       8.8       12.4  

3D Printing

    19,823       803       -       20,626       18,589       6.6       11.0  

Sheet Metal

    5,219       39       -       5,258       4,854       7.5       8.3  

Other

    250       -       -       250       556       (55.0 )     (55.0 )

Total Revenue

  $ 121,721     $ 4,099     $ -     $ 125,820     $ 125,342       (2.9

)%

    0.4

%

                                                         

 

   

Nine Months Ended
September 30, 2022

   

Nine Months Ended
September 30, 2021

   

%

    %  
   

GAAP

   

Foreign Currency1

   

Hubs Acquisition2

   

Non-GAAP

   

GAAP

   

Change3

   

Change Organic4

 

Revenues

                                                       

Injection Molding

  $ 155,693     $ 4,102     $ (189 )   $ 159,606     $ 172,212       (9.6

)%

    (7.3

)%

CNC Machining

    141,809       2,693       (1,637 )     142,865       121,953       16.3       17.1  

3D Printing

    59,458       1,553       (408 )     60,603       53,994       10.1       12.2  

Sheet Metal

    15,066       39       (84 )     15,021       14,790       1.9       1.6  

Other

    765       4       (10 )     759       1,567       (51.2 )     (51.6 )

Total Revenue

  $ 372,791     $ 8,391     $ (2,328 )   $ 378,854     $ 364,516       2.3

%

    3.9

%

 

 

1 Revenue for the three- and nine-month periods ended September 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 nine-month period ended September 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 nine-month periods ended September 30, 2021 to GAAP revenue for the three- and nine-month periods ended September 30, 2022.

   
 

4 This column presents the percentage change from GAAP revenue for the three- and nine-month periods ended September 30, 2021 to non-GAAP revenue for the three- and nine-month periods ended September 30, 2022 (as recalculated using the foreign currency exchange rates in effect during the three- and nine-month periods ended September 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

   

Nine Months Ended

 
   

September 30,

   

September 30,

 
   

2022

   

2021

   

2022

   

2021

 

Unique product developers and engineers served

    23,816       23,457       47,793       46,687