Proto Labs, Inc. (NYSE:PRLB) Q3 2023 Earnings Conference Call November 3, 2023 8:30 AM ET Company Participants Jason Frankman - Vice President and Corporate Controller Rob Bodor - President and Chief Executive Officer Dan Schumacher - Chief Financial Officer Conference Call Participants James Ricchiuti - Needham and Company Greg Palm - Craig Hallum Capital Group Brian Drab - William Blair Ben Rose - Battle Road Research Operator Greetings and welcome to Proto Labs Third Quarter Fiscal Year 2023 Earnings Cal ...

| --- | --- | --- | --- | |-----------------------|-------|-------|-------| | | | | | | | | | | | Earnings Presentation | | | | | Q3 2023 | | | | | November 3, 2023 | | | | Global Digital Manufacturing Locations . Digital Factory @ Manufacturer in Digital Network Forward-looking Statements and Non-GAAP Measures • These slides may contain forward-looking statements. These statements relate to future events or to future financial performance and involve known and unknown risks, uncertainties, and other factor ...

Cost of Revenue Gross Profit N/A N/A $19,229 | --- | --- | --- | |----------|----------------------------------------------|-----------| | GAAP | Three Months Ended Jun. 30, 2022 Adjustments | Non-GAAP* | | $126,902 | - | $126,902 | | 69,480 | (870) | 68,610 | | $57,422 | $870 | $58,292 | | 21,055 | (813) | 20,242 | | 9,450 | (471) | 8,979 | | 16,522 | (3,404) | 13,118 | | 5,194 | (5,194) | - | | 52,221 | (9,882) | 42,339 | | $5,201 | $10,752 | $15,953 | | N/A | N/A | $24,591 | 15,822 (2,861) 12,961 Disposa ...

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 June 30, 2023 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Commission File Number: 001-35435 Proto Labs, Inc. (Exact name of registrant as specif ...

Proto Labs, Inc. (NYSE:PRLB) Q2 2023 Earnings Conference Call August 4, 2023 8:30 AM ET Company Participants Jason Frankman - Vice President and Corporate Controller Rob Bodor - President and Chief Executive Officer Dan Schumacher - Chief Financial Officer Conference Call Participants Jim Ricchiuti - Needham and Company Greg Palm - Craig Hallum Capital Group Ben Rose - Battle Road Research Operator Greetings and welcome to the Proto Labs’ Q2 2023 Earnings Call. At this time, all participants are in a listen ...

▸ These slides may contain forward-looking statements. These statements relate to future events or to future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the us ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Table of Contents FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-35435 Proto Labs, Inc. (Exact name of registrant as specified in its charter) Minnesota 41-1939628 (State or ...

Financial Data and Key Metrics Changes - First quarter revenue reached $125.9 million, a 6.9% year-over-year increase in constant currencies, and an 8.9% sequential growth [37][66] - Non-GAAP diluted net income per share was $0.30, up from $0.26 in the previous quarter, driven by higher volume and other income [41] - First quarter non-GAAP gross margin increased 60 basis points sequentially to 43.4% [68] Business Line Data and Key Metrics Changes - Injection molding revenue grew approximately 3% year-over-year in constant currencies [38] - 3D printing revenue increased by 11% year-over-year in constant currencies, with strong growth in Europe [39] - Sheet metal revenue declined by 9% year-over-year in constant currencies, impacted by slowing demand in the computer and electronics industry [39] Market Data and Key Metrics Changes - Revenue in the Americas increased by 2.4% year-over-year, while Europe saw a 24.4% growth in constant currencies [66] - The Hubs network generated $17.2 million in revenue, representing a year-over-year growth of 67.3% [37] Company Strategy and Development Direction - The company aims to drive revenue growth in injection molding and CNC machining, focusing on expanding profitability in both areas [30][33] - The strategy includes reducing costs in areas with lower demand while continuing to invest in high-growth areas [34] - The company is enhancing its digital manufacturing capabilities to capture additional market share and meet customer needs [64] Management's Comments on Operating Environment and Future Outlook - Management noted macroeconomic uncertainty, with the ISM Manufacturing PMI indicating contraction [63] - The company expects continued pressure on operating margins due to a shift towards longer lead time, lower-priced offerings [36] - Despite challenges, the company remains confident in its ability to deliver value and maintain profitability [64] Other Important Information - The company repurchased $21.1 million worth of common shares during the first quarter, indicating a strong balance sheet with $104.7 million in cash and zero debt [42] - The non-GAAP effective tax rate for the first quarter was 23.2%, a normalized rate compared to the previous quarter [69] Q&A Session Summary Question: Growth rates in Europe vs. Americas - Management indicated stronger growth in Europe due to larger orders and demand, while the Americas faced slower growth in certain sectors like computer electronics [5][6] Question: Competitive landscape in the Americas - Management acknowledged a more competitive environment in longer lead time offerings but noted exceptional growth in the network business at 70% [7][20] Question: Injection molding growth expectations - Management expressed optimism about injection molding growth, driven by a strong customer base and increased orders [81][102] Question: Integration of Hubs and Proto Labs - Management confirmed ongoing efforts to integrate the two platforms, enhancing customer access to services [84][104] Question: Gross margin trends - Management explained that gross margins are expected to improve due to cost management and operational efficiencies [47][68]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________ FORM 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-35435 Proto Labs, Inc. (Exact name of Registrant as specified in its charter) (State or other jur ...

Financial Data and Key Metrics Changes - Fourth quarter revenue was $115.6 million, representing a 1% decrease year-over-year in constant currencies and excluding Japan [27] - Non-GAAP gross margin decreased by 200 basis points sequentially to 42.8% due to lower volume and growth in longer lead time offerings [32] - Full year 2022 non-GAAP diluted net income per share was $1.50 compared to $1.55 in 2021, reflecting lower gross margin partially offset by lower operating expenses [37] Business Line Data and Key Metrics Changes - Injection Molding revenue declined approximately 12% year-over-year at constant currencies and excluding Japan [31] - CNC Machining revenue grew double digits year-over-year at constant currencies and excluding Japan, driven by outperformance in longer lead time offerings [31] - Hubs revenue in the fourth quarter was $14.8 million, representing year-over-year growth of 49.6% or 56.5% in constant currencies [27] Market Data and Key Metrics Changes - In the Americas, fourth quarter revenue decreased 5.8% year-over-year, primarily due to weakness in Injection Molding parts orders [30] - In Europe, fourth quarter revenue grew 19.9% year-over-year in constant currencies, driven by strong growth in CNC Machining and 3D Printing services [30] Company Strategy and Development Direction - The company is focusing on two priority areas for growth: Injection Molding and CNC services, aiming to drive growth through a sharper focus on fewer priorities [7][15] - The strategy includes accelerating the innovation pipeline and launching new offerings at a faster pace [9][20] - The company plans to return capital to shareholders at an accelerated rate through stock repurchases, reflecting confidence in the long-term outlook [22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about 2023, citing focused investments and positive momentum in key areas [9][24] - The company acknowledged challenges in 2022 due to macroeconomic factors and internal issues but is committed to improving earnings and operating margins [8][21] - Management highlighted the importance of addressing customer needs and enhancing service offerings to drive growth [14][58] Other Important Information - The company incurred $534,000 in GAAP operating expenses related to the closure of its Japan business during the fourth quarter [28] - A noncash goodwill impairment charge of $118 million was recorded due to rising interest rates and macroeconomic challenges, which does not impact cash position [35] Q&A Session Summary Question: Comments on revenue guidance and January performance - Management noted solid customer return in January, reflecting in the revenue guidance [45] Question: Turnaround for Injection Molding business - Management discussed the cyclical nature of the Injection Molding business and the need to drive growth through molds and new capabilities [46][49] Question: Impact of lower priority areas on profitability - Management clarified that while investments are being made in other services, the focus is on higher-margin areas to drive overall business growth [51][53] Question: Progress on customer understanding of longer lead time orders - Management indicated that sales teams are actively promoting the ability to compete for longer lead time orders, with traction expected to increase [79] Question: Outlook for gross margins and Hubs business - Management expects flat to slightly up margins in Q1, with potential risks from a mix shift towards lower margin areas [60][71]