3D Systems Corporation Reports Financial Results for Q2 2024
Intellectia.AI Updated: 2024-08-29
3D Systems Corporation Reports Financial Results for Q2 2024
3D Systems Corporation (NYSE:DDD) announced its financial results for the second quarter ended June 30, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q1 2024 | Q2 2023 | YoY Change | QoQ Change | Consensus Estimate (Q2 2024) |
|---|---|---|---|---|---|---|
| Total Revenue | $113.3M | $102.9M | $128.3M | -11.7% | +10.1% | $116.45M |
| Earnings Per Share (EPS) | -$0.14 (Non-GAAP) | -$0.20 | -$0.23 | n/a | n/a | -$0.04 |
| Net Loss | $27.3M | $30.0M | $28.9M | n/a | n/a | n/a |
| Adjusted EBITDA | -$12.9M | -$18.9M | -$6.9M | n/a | n/a | n/a |
| Gross Profit Margin | 41.6% | 38.7% | 39.0% | n/a | n/a | n/a |
| Non-GAAP Gross Profit Margin | 40.9% | 38.9% | 38.9% | n/a | n/a | n/a |
Interpretation: 3D Systems reported a total revenue of $113.3 million for Q2 2024, reflecting a sequential improvement of 10.1% from Q1 2024. However, there was an 11.7% decline year-over-year primarily due to lower printer sales. The company’s EPS fell short of consensus estimates, but sequential financial performance showed improvement indicating positive momentum despite a challenging economic environment.
Revenue Performance by Segment
| Segment | Q2 2024 Revenue | Q2 2023 Revenue | YoY Change |
|---|---|---|---|
| Healthcare | $48.9M | $60.9M | -19.7% |
| Industrial | $64.4M | $67.4M | -4.4% |
Interpretation: Healthcare Solutions saw a significant decline of 19.7% YoY due to reduced printer sales to a major orthodontics customer. In contrast, Industrial Solutions revenue decreased by 4.4% YoY, reflecting overall weaker hardware and materials sales but showed improvement on a sequential quarter basis.
Key Developments and Operational Highlights
- Revenue Growth : Sequential improvement in revenue by 10.1%.
- Gross Margin : Gross profit margins improved to 41.6% from 39.0% YoY.
- Restructuring Actions : The ongoing restructuring and in-sourcing initiatives have resulted in favorable cost reductions and improved gross margins.
- Operational Costs : Operating expenses remained elevated due to costs associated with the extended 2023 audit.
Executive Comments
Dr. Jeffrey Graves, President and CEO, remarked, "We are encouraged by the sequential revenue progress we delivered during the second quarter despite a challenging operating environment... We expect to exit the year with normalized Non-GAAP operating expenses below $60 million by the fourth quarter, which on an annualized basis would be within our previously provided full-year range."
Forward Guidance
- Revenue : Full-year 2024 revenue guidance revised to $450 million - $460 million.
- Gross Profit Margin : Expected to be within the range of 40% - 42%.
- Operating Expense : Targeting non-GAAP operating expenses of less than $60 million for Q4 2024.
- Adjusted EBITDA : Near break-even for Q4 2024.
Stock Price Movement
After the earnings release, the stock price of 3D Systems Corporation moved up by 1.3%.
Overall, while facing some headwinds, 3D Systems has shown operational improvements and a positive sequential financial trajectory, reflecting careful management and strategic restructuring despite challenging market conditions.