3D Systems Releases Q1 2024 Financial Results
3D Systems Corporation (NYSE:DDD) announced today its financial results for the first quarter ended March 31, 2024.
First Quarter Financial Results and Business Highlights
(All numbers are unaudited and are presented in millions, except per share amounts or as otherwise noted)
- Q1'24 revenue of $102.9 million decreased 15.1% year-over-year primarily driven by lower printer sales, partially offset by growth in materials and services.
- Q1'24 gross profit margin of 39.8% and Non-GAAP gross profit margin of 40.1%. Improvements from prior year primarily driven by favorable mix.
- GAAP Q1'24 Net loss of $16.0 million or diluted loss per share of $0.12, including approximately $5 million of fees related to extended 2023 audit.
- Q1'24 Negative Adjusted EBITDA of $20.1 million reflects impacts of lower total sales volume and significantly higher operating expenses driven by the 2023 audit.
- Expect Q2’24 revenues within the range of $113.0 - $113.5 million.
- Announces timing of Q2'24 earnings and 1H'24 earnings call on August 29, 2024 after-market.
Comments from Leadership
Commenting on first quarter results, Dr. Jeffrey Graves, President and CEO of 3D Systems said, “Our first quarter revenue results reflect a continuation of pressures driven by unfavorable macroeconomic and geopolitical conditions, impacting hardware printer sales tied to customer capex investments. Despite these challenges, we see robust interest in additive applications and signs of encouragement in certain demand markets, which give us confidence that top-line performance will improve throughout the year.”
In the first quarter, revenues for the Healthcare Solutions segment decreased 6.8% to $45.4 million, primarily due to printer sales declines to a large orthodontics customer. Industrial Solutions revenue decreased 20.7% to $57.5 million.
Operational Highlights
Despite the challenges, the gross profit margin showed an increase, attributed to a favorable product mix. The company experienced a slight increase in operating expenses due to unexpected costs related to the audit but has commenced restructuring initiatives that are expected to yield decreased general and administrative costs, providing a pathway to improved profitability.
Financial Outlook
3D Systems holds cash and cash equivalents of $212.0 million as of the end of March 31, 2024, and expects a continued positive trajectory in terms of both revenue and strategic investments in the coming quarters.
Frequently Asked Questions
What were the main reasons for the revenue decline in Q1 2024?
The revenue decline was primarily due to lower printer sales, significantly affected by macroeconomic and geopolitical conditions.
What is the projected revenue range for Q2 2024?
The company expects revenues for Q2 2024 to be within the range of $113.0 - $113.5 million.
How did the healthcare segment perform?
The Healthcare Solutions segment experienced a revenue decrease of 6.8% to $45.4 million due to lower printer sales.
What is the company’s strategy moving forward?
3D Systems plans to focus on expanding its Healthcare and Industrial Solutions, leveraging existing strengths, and addressing operational efficiency through restructuring initiatives.
When is the next earnings call scheduled?
The next earnings call is scheduled for August 29, 2024, after market close.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
Disclaimer: The content of this article is solely for general informational purposes only; it does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice; the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. The author's interpretation of publicly available data shapes the opinions presented here; as a result, they should not be taken as advice to purchase, sell, or hold any securities mentioned or any other investments. The author does not guarantee the accuracy, completeness, or timeliness of any material, providing it "as is." Information and market conditions may change; past performance is not indicative of future outcomes. If any of the material offered here is inaccurate, please contact us for corrections.