Proto Labs, Inc. Q3 2024 Financial Results
Proto Labs, Inc. ('Protolabs'), a leader in digital manufacturing services, announced its financial results for the third quarter ending September 30, 2024.
Financial Performance Overview
Key Financial Metrics (in millions USD, except per share amounts):
| Metric | Q3 2024 | Q3 2023 | YoY Change |
|---|---|---|---|
| Revenue | $125.6 | $130.7 | -3.9% |
| GAAP Earnings Per Share | $0.29 | $0.31 | -6.5% |
| Non-GAAP Earnings Per Share | $0.47 | $0.51 | -7.8% |
Interpretation: Protolabs experienced a decrease in total revenue by 3.9% year-over-year, alongside a similar decline in earnings per share. Despite this, non-GAAP metrics show resilience through robust operational efficiency.
Segment Revenue Performance
Revenue Breakdown (in millions USD):
| Segment | Q3 2024 | Q3 2023 | YoY Change |
|---|---|---|---|
| Protolabs Network | $25.3 | $22.7 | +11.6% |
Interpretation: While total revenue decreased, the Protolabs Network segment achieved significant growth, reflecting the company's strategic focus and potential in this area.
Operational Highlights
- Customer Interaction: The company served 22,511 customer contacts, with a slight decrease in revenue per contact year-over-year by 1.5%.
- Profitability: Protolabs reported its highest quarterly operating cash flow since 2020, demonstrating effective cost management.
- Gross Margin: Maintained steady gross margins, indicative of efficient operations.
Executive Comments
Rob Bodor, CEO, highlighted the company's disciplined approach and resilience in the dynamic market, emphasizing actions taken to reorganize internally for sustainable growth. CFO Dan Schumacher noted the strong operating cash flow, underscoring Protolabs' profitable business model.
Forward Guidance
For the fourth quarter of 2024, Protolabs expects revenue between $115 million and $123 million, with projected net income per diluted share ranging from $0.10 to $0.18, and non-GAAP EPS between $0.28 and $0.36.
Stock Movement
Following the earnings release, Protolabs' stock experienced a slight decline of 0.72%, indicating a tempered market response to the financial outcomes.
Overall, while facing challenges, Protolabs' diversified business model, especially through the Protolabs Network, continues to support its strategic objectives.
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