Proto Labs, Inc. (PRLB) has expanded its capabilities by introducing full-service production to be able to serve companies at every stage in their product life cycles. The evolution has enabled the provision of service from early prototyping and pre-production to large-scale manufacturing and end-of-life product support, while ensuring improved pricing options, enhanced quality control and maintenance of Proto Labs’ established low-volume, quick-turn prototyping capabilities.Along with bringing a strengthen ...

Proto Labs, Inc. (PRLB) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, PRLB's 50-day simple moving average broke out above its 200-day moving average; this is known as a "golden cross."Considered an important signifier for a bullish breakout, a golden cross is a technical chart pattern that's formed when a stock's short-term moving average breaks above a longer-term moving average; the most common crossover involves the 50-day and the 200- ...

Core Viewpoint - Proto Labs stock experienced a significant increase of 34.1% after surpassing analyst expectations for Q3 sales and earnings, indicating potential investment value at a low price-to-free-cash-flow ratio of 10 times [1][5] Group 1: Q3 Performance - Proto Labs reported Q3 sales of $125.6 million, exceeding Wall Street's forecast of $121.4 million [1] - The company achieved a pro forma earnings per share of $0.47, which is nearly 50% higher than the expected $0.32, although GAAP earnings were lower at $0.29 per share, reflecting a 6.5% decline from the previous year [2][3] - Revenue for the quarter fell nearly 4%, but overall performance was better than anticipated by analysts [2] Group 2: Management Insights - CEO Rob Bodor described the results as "solid" despite ongoing challenges in the manufacturing sector that impacted revenue [3] - CFO Dan Schumacher noted that Proto Labs generated its best free cash flow since 2020, totaling $52.2 million in cash profits for the year to date [3] Group 3: Future Projections - Management provided a Q4 sales forecast between $115 million and $123 million, with GAAP profits expected to range from $0.10 to $0.18 per share [4] - At the midpoint of these projections, Proto Labs is expected to end 2024 with approximately $498 million in sales and about $0.81 per share in profit [4] Group 4: Valuation Analysis - Current calculations suggest Proto Labs is trading at about 45 times current-year earnings, which may seem high given the lack of earnings growth [5] - However, if the company maintains its free cash flow generation, it could achieve $70 million in cash profits this year, leading to a price-to-free-cash-flow ratio of less than 10, indicating a potentially attractive valuation [5]

Proto Labs (PRLB) came out with quarterly earnings of $0.47 per share, beating the Zacks Consensus Estimate of $0.33 per share. This compares to earnings of $0.51 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 42.42%. A quarter ago, it was expected that this custom parts manufacturer would post earnings of $0.34 per share when it actually produced earnings of $0.38, delivering a surprise of 11.76%.Over the last four quarters, ...

Proto Labs (PRLB) came out with quarterly earnings of $0.38 per share, beating the Zacks Consensus Estimate of $0.34 per share. This compares to earnings of $0.33 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 11.76%. A quarter ago, it was expected that this custom parts manufacturer would post earnings of $0.30 per share when it actually produced earnings of $0.40, delivering a surprise of 33.33%. Over the last four quarters ...

Table of Contents Commission File Number: 001-35435 Proto Labs, Inc. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________ FORM 10-Q (Mark One) þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ (Exact name of registrant as speci ...

Proto Labs, Inc. (NYSE:PRLB) Q1 2024 Earnings Conference Call May 3, 2024 8:30 AM ET Company Participants Jason Frankman - Vice President & Corporate Controller Rob Bodor - President & Chief Executive Officer Dan Schumacher - Chief Financial Officer Conference Call Participants Brian Drab - William Blair Greg Palm - Craig Hallum Capital James Ricchiuti - Needham & Company Operator Greetings. Welcome to Proto Labs First Quarter 2024 Earnings Call. At this time, all participants are in a listen-only mode. A q ...

First Quarter 2024 Financial Highlights: Exhibit 99.1 Protolabs Reports Financial Results for the First Quarter of 2024 Total Revenue of $128 Million; Protolabs Network Revenue up 39% YoY to $24 Million GAAP Earnings Per Share of $0.20, Non-GAAP Earnings Per Share of $0.40 MINNEAPOLIS – May 3, 2024 – Proto Labs, Inc. ("Protolabs" or the "Company") (NYSE: PRLB), the world's leading provider of digital manufacturing services, today announced financial results for the first quarter ended March 31, 2024. "We de ...

[Part I - Business and Risk Factors](index=5&type=section&id=Part%20I) This section outlines the company's business, competitive landscape, ESG initiatives, intellectual property, and key risks, including cybersecurity and property assets [Business Overview](index=5&type=section&id=Item%201.%20Business) Proto Labs is a digital manufacturer of custom parts, leveraging in-house factories and a global partner network to serve product developers and engineers online - The company is a leading digital manufacturer of custom parts, specializing in injection molding, CNC machining, 3D printing, and sheet metal fabrication[26](index=26&type=chunk)[27](index=27&type=chunk) - The 2021 acquisition of Hubs, now Protolabs Network, expanded customer access to a global manufacturing partner network, complementing in-house production[28](index=28&type=chunk) - The company's digital model automates manufacturing processes, serving diverse industries including medical, electronics, aerospace, and automotive[39](index=39&type=chunk)[42](index=42&type=chunk) - Japan operations were dissolved in December 2023, following a May 2022 board decision to close the manufacturing facility[30](index=30&type=chunk)[149](index=149&type=chunk) - As of December 31, 2023, the company employed **2,415 full-time employees**, with **1,672** in the U.S. and **743** in Europe[57](index=57&type=chunk) [Industry Overview and Growth Strategy](index=6&type=section&id=Industry%20Overview%20and%20Growth%20Strategy) The company addresses manufacturing industry disruptions like SKU proliferation and shorter product lifecycles through its digital model and expanded growth strategy - Key industry trends include SKU proliferation, shorter product life cycles, and the shift to e-commerce sourcing, pressuring traditional supply chains[37](index=37&type=chunk) - The growth strategy aims to be the most comprehensive custom parts provider by augmenting internal manufacturing with a network of premium partners[43](index=43&type=chunk) [Competition](index=8&type=section&id=Competition) The highly fragmented custom parts market sees competition from traditional shops, digital brokers, and in-house operations, with key factors being quality, speed, and price - Competitors include traditional machine shops, injection molders, digital brokers with manufacturing networks, and captive in-house manufacturing operations[44](index=44&type=chunk)[46](index=46&type=chunk) - Key competitive factors encompass quality, speed, reliability, service, manufacturing capabilities, scale, capacity, and price[46](index=46&type=chunk) [Corporate Responsibility and Sustainability](index=8&type=section&id=Corporate%20Responsibility%20and%20Sustainability) The company's ESG strategy prioritizes environmental compliance, employee well-being, DEI, and ethical governance, leveraging digital manufacturing for sustainability - Top ESG priorities include environmental compliance, energy use reduction, waste management, ethics, employee health and well-being, and diversity, equity, and inclusion (DEI)[48](index=48&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk) - Digital manufacturing is a sustainable solution, reducing product waste through virtual iteration and on-demand production, minimizing excess inventory[52](index=52&type=chunk) - Attrition rates in 2023 were **20.4%** in the U.S. and **23.9%** in Europe, influenced by workforce reductions in lower volume areas[59](index=59&type=chunk) [Intellectual Property](index=13&type=section&id=Intellectual%20Property) The company protects its proprietary rights through patents, trademarks, and trade secrets, holding 46 issued U.S. patents as of December 2023 Patent Portfolio as of Dec 31, 2023 | Jurisdiction | Issued Patents | Applications Pending | | :--- | :--- | :--- | | United States | 46 | 15 | | United Kingdom | 3 | 0 | | Netherlands | 1 | 0 | - The company's patents expire between **2025** and **2043**[70](index=70&type=chunk) [Risk Factors](index=15&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant business, operational, and financial risks, including intense competition, technology scaling challenges, cybersecurity threats, and supply chain dependencies - The company faces significant competition from a fragmented market of custom parts manufacturers, brokers, and in-house operations, some with greater resources[80](index=80&type=chunk)[81](index=81&type=chunk) - A key risk is scaling existing technology and infrastructure to handle increasing volume and complexity, as failure could damage the brand and result in lost revenue[83](index=83&type=chunk) - Storing confidential customer information, including intellectual property, exposes the company to security breach risks, potentially harming reputation and leading to liability[88](index=88&type=chunk) - International operations, accounting for **21% of 2023 revenue**, are subject to currency fluctuations, political instability, and complex foreign laws[91](index=91&type=chunk) - The business depends on single or limited source suppliers for critical manufacturing equipment and materials, where disruptions could adversely affect operations[112](index=112&type=chunk) [Cybersecurity](index=26&type=section&id=Item%201C.%20Cybersecurity) Proto Labs maintains an enterprise-wide information security program, overseen by the Audit Committee, to manage cybersecurity risks and incidents - The company maintains an enterprise-wide information security program to identify, protect, detect, and respond to cybersecurity risks[137](index=137&type=chunk) - The Audit Committee oversees cybersecurity risks and incidents, reporting findings to the full board[140](index=140&type=chunk) - Cybersecurity threats have not materially affected the company's business, results of operations, or financial condition to date[141](index=141&type=chunk) [Properties](index=27&type=section&id=Item%202.%20Properties) The company owns and leases corporate, manufacturing, and office facilities across the U.S. and Europe, with Japan operations dissolved in 2023 - Corporate headquarters are located in a **95,000 sq. ft.** owned facility in Maple Plain, Minnesota[142](index=142&type=chunk) - Major manufacturing facilities are in Minnesota, North Carolina, New Hampshire, Telford (UK), and Putzbrunn (Germany)[142](index=142&type=chunk)[143](index=143&type=chunk)[144](index=144&type=chunk)[146](index=146&type=chunk) - Japan operations were dissolved in December 2023, with the **88,000 sq. ft.** facility lease expiring in 2023[149](index=149&type=chunk) [Part II - Market, Financials, and MD&A](index=28&type=section&id=Part%20II) This section details the company's common stock market, shareholder matters, financial performance, liquidity, critical accounting estimates, and market risk exposures [Common Stock Market and Shareholder Matters](index=28&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Shareholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Proto Labs' common stock trades on the NYSE, with no cash dividends paid, and an active stock repurchase program with **$88.4 million** remaining - The company's common stock trades on the New York Stock Exchange (NYSE) under the symbol **PRLB**[153](index=153&type=chunk) - No cash dividends have ever been paid, nor are any anticipated in the foreseeable future[155](index=155&type=chunk) - The board authorized a stock repurchase program of up to **$250 million**, with **$88.4 million** remaining as of year-end 2023[159](index=159&type=chunk) - In 2023, the company repurchased **1,392,921 shares** for an aggregate price of **$43.9 million**[160](index=160&type=chunk) [Management's Discussion and Analysis (MD&A)](index=30&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2023, revenue increased by **3.2%** to **$503.9 million**, returning to profitability with **$17.2 million** net income, driven by Europe and specific product lines Financial Highlights (2023 vs. 2022) | Metric | 2023 | 2022 | Change | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $503.9M | $488.4M | +$15.5M | +3.2% | | Gross Profit | $222.0M | $215.5M | +$6.5M | +3.0% | | Gross Margin | 44.1% | 44.1% | 0 bps | 0.0% | | Income (Loss) from Operations | $28.2M | ($98.0M) | +$126.2M | +128.7% | | Net Income (Loss) | $17.2M | ($103.5M) | +$120.7M | +116.6% | | Diluted EPS | $0.66 | ($3.77) | +$4.43 | N/A | - The number of unique customer contacts served in 2023 was **53,464**, a **5.1% decrease** from 2022[172](index=172&type=chunk)[191](index=191&type=chunk) [Results of Operations (2023 vs. 2022)](index=34&type=section&id=Results%20of%20Operations%20(2023%20vs.%202022)) Revenue increased **3.2%** to **$503.9 million** in 2023, driven by Europe, CNC Machining, and 3D Printing, with a return to operating income Revenue by Segment (2023 vs. 2022) (in thousands) | Segment | 2023 | 2022 | Change (%) | | :--- | :--- | :--- | :--- | | United States | $396,821 | $387,399 | +2.4% | | Europe | $107,056 | $92,770 | +15.4% | | Japan | $0 | $8,229 | -100.0% | | **Total** | **$503,877** | **$488,398** | **+3.2%** | Revenue by Product Line (2023 vs. 2022) (in thousands) | Product Line | 2023 | 2022 | Change (%) | | :--- | :--- | :--- | :--- | | Injection Molding | $203,941 | $200,578 | +1.7% | | CNC Machining | $198,222 | $188,372 | +5.2% | | 3D Printing | $84,291 | $78,988 | +6.7% | | Sheet Metal | $16,540 | $19,498 | -15.2% | | **Total** | **$503,877** | **$488,398** | **+3.2%** | - The return to operating income was primarily due to the non-recurrence of the **$118.0 million** goodwill impairment charge recorded in 2022 for the Europe reporting unit[198](index=198&type=chunk)[200](index=200&type=chunk) [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity, with cash increasing to **$83.8 million** and **$73.3 million** in operating cash flow, sufficient for future requirements Cash Flow Summary (in thousands) | Cash Flow Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $73,274 | $62,079 | | Net cash used in investing activities | ($4,552) | ($43,092) | | Net cash used in financing activities | ($41,858) | ($27,922) | | **Net (decrease) increase in cash** | **$27,232** | **($9,371)** | - Cash and cash equivalents increased to **$83.8 million** as of December 31, 2023[205](index=205&type=chunk) - Financing activities were primarily driven by **$44.0 million** in common stock repurchases[211](index=211&type=chunk) - Future capital expenditures are expected to be between **4% and 7%** of annual revenue[215](index=215&type=chunk) [Critical Accounting Estimates](index=41&type=section&id=Critical%20Accounting%20Estimates) Critical accounting estimates, involving significant judgment, include revenue recognition, goodwill impairment, stock-based compensation, and income taxes, potentially impacting financial results - Revenue for custom parts is recognized over time using an input method based on time in production as a percentage of total estimated production time[221](index=221&type=chunk) - Goodwill is tested annually for impairment; a **$118.0 million** impairment was recorded in 2022 for Europe, with no impairment in 2023[223](index=223&type=chunk) - Stock-based compensation is valued using the Black-Scholes model, requiring subjective inputs for expected term and volatility[226](index=226&type=chunk) - A valuation allowance of **$17.7 million** is maintained against deferred tax assets as of December 31, 2023, primarily for foreign net operating loss carryforwards[370](index=370&type=chunk) [Market Risk Disclosures](index=46&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is unhedged foreign currency exposure from European operations, with a **$3.9 million** translation loss in 2023 from Japan's closure - The primary market risk is foreign currency exposure from European operations, with revenues and expenses in British Pounds and Euros[239](index=239&type=chunk) - The company does not use forward contracts or other derivatives to hedge foreign currency risk[241](index=241&type=chunk) - A **$3.9 million** foreign currency translation loss was recognized in 2023 related to the closure of the Japan business[241](index=241&type=chunk)[363](index=363&type=chunk) [Financial Statements and Supplementary Data](index=47&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the audited consolidated financial statements for 2023, with an unqualified auditor's opinion from Ernst & Young LLP, highlighting revenue recognition as a critical audit matter - The independent auditor, Ernst & Young LLP, issued an unqualified opinion on the consolidated financial statements and internal control over financial reporting[248](index=248&type=chunk)[262](index=262&type=chunk) - The auditor identified 'Revenue Recognition – Revenue Recognized Over Time' as a Critical Audit Matter due to significant estimates required[255](index=255&type=chunk)[256](index=256&type=chunk) [Consolidated Financial Statements](index=51&type=section&id=Consolidated%20Financial%20Statements) As of December 31, 2023, the company reported **$772.4 million** in total assets, **$503.9 million** in revenue, and **$17.2 million** in net income Consolidated Balance Sheet Highlights (as of Dec 31, 2023) (in thousands) | Account | Amount | | :--- | :--- | | Cash and cash equivalents | $83,790 | | Total Current Assets | $200,660 | | Property and equipment, net | $253,655 | | Goodwill | $273,991 | | **Total Assets** | **$772,353** | | Total Current Liabilities | $49,681 | | **Total Liabilities** | **$77,058** | | **Total Shareholders' Equity** | **$695,295** | Consolidated Income Statement Highlights (Year Ended Dec 31, 2023) (in thousands) | Account | Amount | | :--- | :--- | | Revenue | $503,877 | | Gross Profit | $221,993 | | Income from Operations | $28,167 | | **Net Income** | **$17,220** | | Diluted EPS | $0.66 | [Selected Notes to Consolidated Financial Statements](index=58&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes provide detailed disclosures on revenue, goodwill, stock-based compensation, effective tax rate, and segment performance, including a **$118 million** goodwill impairment in 2022 - Stock-based compensation expense was **$16.0 million** in 2023, down from **$17.5 million** in 2022[345](index=345&type=chunk) - The effective tax rate was **38.4%** in 2023, compared to **(5.7)%** in 2022, primarily due to the 2022 goodwill impairment and shift to net income[365](index=365&type=chunk)[366](index=366&type=chunk) Segment Operating Income (Loss) (in thousands) | Segment | 2023 | 2022 | | :--- | :--- | :--- | | United States | $94,682 | $93,176 | | Europe | ($12,528) | ($130,386) | | Corporate Unallocated and Japan | ($53,987) | ($60,773) | | **Total** | **$28,167** | **($97,983)** | [Controls and Procedures](index=85&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2023, with no material changes - Management concluded that disclosure controls and procedures were effective as of December 31, 2023[381](index=381&type=chunk) - Management's assessment concluded that the company's internal control over financial reporting was effective as of December 31, 2023[382](index=382&type=chunk) [Part III - Corporate Governance and Compensation](index=87&type=section&id=Part%20III) This section outlines corporate governance, executive compensation, security ownership, and principal accountant fees, with detailed information incorporated by reference from the proxy statement [Directors, Compensation, and Governance Matters](index=87&type=section&id=Items%2010-14) Information on directors, executive compensation, security ownership, and governance is incorporated by reference from the company's 2024 Proxy Statement - Information regarding directors, executive compensation, security ownership, and related transactions is incorporated by reference from the company's 2024 Proxy Statement[387](index=387&type=chunk)[390](index=390&type=chunk)[391](index=391&type=chunk)[395](index=395&type=chunk) - The company has adopted a Code of Ethics and Business Conduct applicable to all directors, officers, and employees, available on its website[389](index=389&type=chunk) [Part IV - Exhibits and Schedules](index=89&type=section&id=Part%20IV) This section lists all financial statements, schedules, and exhibits filed as part of the Annual Report on Form 10-K, including corporate governance documents and certifications [Exhibits and Financial Statement Schedules](index=89&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section provides an index of all exhibits filed with the 10-K, including corporate governance documents, compensation plans, and required certifications - This section provides an index of all exhibits filed with the 10-K, including corporate governance documents, compensation plans, and required certifications[400](index=400&type=chunk)[401](index=401&type=chunk)

Forward-looking Statements and Non-GAAP Measures • Non-GAAP Financial Measures: Protolabs management believes that presenting certain nonGAAP financial measures provides meaningful information to investors in understanding operating results and may enhance investors' ability to analyze financial and business trends. Non-GAAP measures are not a substitute for GAAP measures and should be considered together with the GAAP financial measures. As calculated, our non-GAAP measures may not be comparable to other s ...