3D Systems Corporation · NYSE:DDD
3D Systems — Q2 2019 Earnings Presentation
25 slides from 3D Systems's earnings presentation, Aug 7, 2019
Slide 1: Second Quarter 2019 Financial Results
Second Quarter 2019 Financial Results August 7, 2019
Slide 2: Welcome and Participants
Welcome and Participants Vyomesh Joshi To participate via phone, President and Chief Executive Officer please dial: John McMullen Executive Vice President and Chief Financial Officer In the US: 1-877-407-8291 Rebekah Toton Vice President, Assistant General Counsel Outside the US: Stacey Witten 1-201
Slide 3: Forward Looking Statements
Forward Looking Statements This presentation contains certain statements that are not statements of historical or current facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, o
Slide 4: Vyomesh Joshi (VJ)
Vyomesh Joshi (VJ) President & Chief Executive Officer
Slide 5: Second Quarter Summary
Second Quarter Summary • GAAP revenue in the second quarter of $157.3 million and non-GAAP revenue was $156.4 million • Printer unit sales increased 46.4%, driven by Figure 4 platform sales • GAAP gross profit margin of 46.6% and non-GAAP gross profit margin of 47.4% • Operating expenses decreased t
Slide 6: John McMullen
John McMullen Executive Vice President & Chief Financial Officer
Slide 7: GAAP Operating Results
GAAP Operating Results Second Quarter Six Months Ended Y/Y Y/Y Better/(W Better/(W (in millions, except per share amounts) 2019 2018 orse) 2019 2018 orse) Revenue $ 157.3 $ 176.6 (11)% $ 309.3 $ 342.4 (10)% Gross Profit 73.3 86.2 (15)% 139.0 164.0 (15)% Gross Profit Margin 46.6% 48.8% (220) bps 44.9
Slide 8: Non-GAAP Financial Measures
Non-GAAP Financial Measures Second Quarter Six Months Ended Y/Y Y/Y Better/(Wor Better/(Wor (in millions, except per share amounts) 2019 2018 se) 2019 2018 se) Non-GAAP R&D Expense $ 20.5 $ 22.5 9% $ 42.4 $ 48.4 12% Non-GAAP SG&A Expense 51.2 56.5 9% 102.3 110.1 7% Non-GAAP Operating Expenses $ 71.7
Slide 9: Revenue Drivers
Revenue Drivers 8.1% 46.4% 27.4% 0.5% 8.5% 12.4% 9
Slide 10: Gross Profit and Margin
Gross Profit and Margin • GAAP GPM was 46.6% and non-GAAP GPM was 47.4% in Q2 2019 • Gross profit margin improved sequentially as a result of revenue mix and lower cost of sales and better overhead absorption • Driving supply chain optimization, manufacturing efficiency and process improvements – Fo
Slide 11: Operating Expenses
Operating Expenses • GAAP operating expenses decreased 1.5% and non-GAAP operating expenses decreased 9.3% compared to the second quarter of the prior year with decreases in both SG&A and R&D • R&D is focused on materials and software development in 2019 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 20
Slide 12: Balance Sheet and Cash
Balance Sheet and Cash • Generated $18.7 million of cash in operations and used $5.6 million for CapEx investments during the second quarter • Improved working capital performance, including improved DPO and DSO while also reducing aggregate inventory levels • Ended the June quarter with $150.4 mill
Slide 13: Vyomesh Joshi (VJ)
Vyomesh Joshi (VJ) President & Chief Executive Officer
Slide 14: Conclusion
Conclusion • Confident in long-term market opportunities and pleased with early progress with reducing cost structure • Remain very focused on the bottom line performance of the company given short- term revenue headwinds • Expanded hardware portfolio has been well received, and on track for launchi
Slide 15: Q&A Session
Q&A Session In the USA: 1-877-407-8291 Outside the USA: 1-201-689-8345
Slide 16: Thank You
ZN 3D SYSTEMS Thank You
Slide 17: Appendix
ZN 3D SYSTEMS Appendix
Slide 18: GAAP Revenue Summary by Category
GAAP Revenue Summary by Category Sequential Y/Y Better/(Worse Better/(Worse (in millions) Q2 2019 Q1 2019 Q2 2018 ) ) Printers $ 30.0 $ 29.9 $ 41.3 —% (27)% Software Products 13.7 12.2 14.1 12% (3)% Other Products 8.9 8.9 10.4 —% (14)% Total Products 52.5 50.9 65.7 3% (20)% Total Materials 41.2 41.4
Slide 19: Non-GAAP Reconciliation - EPS
Non-GAAP Reconciliation - EPS Second Quarter Non-GAAP Earnings (Loss) per Share Quarter Ended June 30, Six Months Ended June 30, (in millions, except per share amounts) 2019 2018 2019 2018 GAAP Net loss attributable to 3D Systems Corporation $ (23.9) $ (8.9) $ (48.3) $ (29.8) Adjustments: Amortizati
Slide 20: Non-GAAP Reconciliation - Revenue
Non-GAAP Reconciliation - Revenue 2019 Non-GAAP Revenue Quarter Ended Six Months Ended (in millions) March 31 June 30 June 30 GAAP Revenue $ 152.0 $ 157.3 $ 309.3 Adjustments: Legal, acquisition and divestiture related (1.8) (0.9) (2.7) Non-GAAP Revenue $ 150.2 $ 156.4 $ 306.6 20
Slide 21: Non-GAAP Reconciliation - GP and GPM
Non-GAAP Reconciliation - GP and GPM 2019 Non-GAAP Gross Profit & Margin Quarter Ended Year to Date (in millions) March 31 June 30 June 30 GAAP Gross Profit $ 65.7 $ 73.3 $ 139.0 GAAP Gross Profit Margin 43.2% 46.6% 44.9% Adjustments: Amortization, stock-based compensation & other 0.1 0.1 0.2 Legal,
Slide 22: Non-GAAP Reconciliation - Operating Expense
Non-GAAP Reconciliation - Operating Expense 2019 Non-GAAP Operating Expenses Quarter Ended Year to Date (in millions) March 31 June 30 June 30 GAAP R&D Expenses $ 21.9 $ 20.8 $ 42.7 GAAP SG&A Expenses 65.1 71.7 136.8 GAAP Operating Expenses 87.0 92.5 179.5 Adjustments to R&D Expenses: Cost optimizat
Slide 23: Non-GAAP Reconciliation- GP and GPM
Non-GAAP Reconciliation- GP and GPM Full Year 2018 Non-GAAP Gross Profit & Margin 2018 Quarter Ended Year Ended September December December (in millions) March 31 June 30 30 31 31 GAAP Gross Profit $ 77.9 $ 86.2 $ 77.8 $ 82.6 $ 324.4 GAAP Gross Profit Margin 46.9% 48.8% 47.3% 45.7% 47.2% Adjustments
Slide 24: Non-GAAP Reconciliation - Operating Expense
Non-GAAP Reconciliation - Operating Expense Full Year 2018 Non-GAAP Operating Expenses 2018 Quarter Ended Year Ended (in millions) March 31 June 30 September 30 December 31 December 31 GAAP R&D Expenses $ 25.9 $ 22.7 $ 23.2 $ 23.5 $ 95.3 GAAP SG&A Expenses 69.5 71.2 65.6 66.1 272.3 GAAP Operating Ex
Slide 25: Thank You
ZN 3D SYSTEMS Thank You