Financial Data and Key Metrics - Revenue for 2023 exceeded $500 million for the first time in the company's history, marking a record year [7] - Q4 2023 revenue grew 7.2% year-over-year in constant currencies, reaching $125 million [38] - ProtoLabs Network revenue in Q4 2023 was $22.5 million, up 49% year-over-year in constant currencies [38] - Full-year 2023 ProtoLabs Network revenue grew 69% year-over-year to $82.6 million, with a gross margin of 30.6% [24] - Q4 2023 non-GAAP diluted net income per share was $0.46, exceeding the guidance midpoint of $0.30 [22] - Cash flow from operations in Q4 2023 was $17.2 million, with $110.8 million in cash and investments and zero debt on the balance sheet [23] - Full-year 2023 non-GAAP earnings per share increased 6% to $1.59, with adjusted EBITDA of $83.2 million [54] Business Line Performance - Injection molding revenue grew 14% year-over-year in Q4 2023, driven by larger parts orders [21] - CNC machining revenue fulfilled by the ProtoLabs Network grew 80% in 2023, driven by lower part prices, improved tolerances, and broader finishing options [15] - 3D printing revenue grew 3% year-over-year in Q4 2023, while sheet metal revenue declined 8% [51] - The combined factory and network strategy drove 70% growth in the ProtoLabs Network in 2023 [12] Market Performance - The company served 53,464 customer contacts in 2023, with revenue per contact increasing 9% over 2022 [24] - Strong performance in aerospace and automotive sectors, with continued growth in medical applications [50] - The U.S. market showed significant growth, particularly in production-oriented business [65] Strategic Direction and Industry Competition - The company's strategy focuses on combining factory and network offerings, which has proven successful with 70% growth in the ProtoLabs Network [12] - Investments in digital quality, competitive pricing, and consultative design services have transformed the injection molding business [13] - The company aims to increase revenue per customer by driving larger orders and expanding the use of combined factory and network offerings [16][17] - ProtoLabs is shifting from prototyping to production, targeting a larger market and higher average order values [36] Management Commentary on Operating Environment and Future Outlook - Management highlighted the challenging global manufacturing demand environment in 2023 but noted the company's ability to take market share [12] - The company expects revenue growth in 2024, driven by increased customer adoption of combined factory and network offerings [16] - Management emphasized the importance of investing in employees and improving the employee experience to sustain innovation [37] - The company anticipates a softer start to 2024 due to lower order levels in December and early January but expects performance to align with historical trends by the end of Q1 [39] Other Important Information - The company repurchased 4.9 million common shares in Q4 2023, returning substantial capital to shareholders [23] - ProtoLabs introduced a refreshed set of company values for the first time in over 10 years to guide future operations [37] - The company expects Q1 2024 revenue between $120 million and $128 million, with foreign currency having a favorable impact of $500,000 to $1 million [39] Q&A Session Summary Question: What is driving the increase in revenue per customer? - The increase in revenue per customer is attributed to the company's success in transitioning customers from prototyping to production, particularly with larger strategic customers [42][72] Question: How is the company managing the shift from prototyping to production? - The company is leveraging its combined factory and network offerings to serve customers throughout the product lifecycle, from prototyping to production [36][72] Question: What are the expectations for Q1 2024 profitability? - Q1 2024 profitability is expected to be lower due to a higher mix of network business, lower factory volume, and increased SG&A expenses [68][82] Question: Which verticals are showing the most traction in production business? - Aerospace, automotive, and medical sectors are showing strong traction in production business [50][66] Question: What metrics are being tracked to measure the success of the combined offering strategy? - The company is tracking metrics such as the number of customers using combined offerings, average revenue per customer, and customer wallet share [72][89] Question: How is the company addressing the softer start to 2024? - The company expects order levels to align with historical trends by the end of Q1 2024, despite a slower start in December and January [39][59]

Table of Contents Commission File Number: 001-35435 Proto Labs, Inc. (Exact name of registrant as specified in its charter) 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 September 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 __ ...

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 ...

Financial Performance - Total revenue for the second quarter of 2023 was $122.265 million, a decrease of 3.1% compared to $126.902 million in the same period of 2022[11] - Gross profit for the second quarter of 2023 was $53.123 million, down 7.9% from $57.422 million year-over-year[11] - Net loss for the second quarter of 2023 was $0.383 million, compared to a net income of $2.557 million in the same quarter of 2022[11] - Net income for the six months ended June 30, 2023, was $2,276 million, a decrease of 70.3% compared to $7,652 million in the same period of 2022[16] - Total revenue for the six months ended June 30, 2023, was $248.1 million, a decrease of $2.9 million or 1.2% compared to $251.1 million for the same period in 2022[100] - The company reported a net loss of $0.4 million for the three months ended June 30, 2023, compared to a net income of $2.6 million in the same period in 2022[11] Assets and Liabilities - Total assets decreased to $777.210 million as of June 30, 2023, down from $802.168 million at the end of 2022[9] - Total liabilities decreased to $94.525 million as of June 30, 2023, compared to $104.520 million at the end of 2022[9] - Shareholders' equity decreased to $682.685 million as of June 30, 2023, down from $697.648 million at the end of 2022[9] - Cash and cash equivalents at the end of the period were $66,493 million, up from $54,666 million at the end of the previous year[16] - Total long-lived assets as of June 30, 2023, were $248.614 million, down from $257.785 million as of December 31, 2022[60] Operating Expenses - Operating expenses for the second quarter of 2023 were $47.515 million, a decrease of 9.4% from $52.221 million in the same quarter of 2022[11] - Operating expenses totaled $47.5 million for the three months ended June 30, 2023, a decrease of $4.7 million or 9.0% compared to $52.2 million in the same period of 2022[93] - Marketing and sales expenses increased by $0.7 million or 3.2% during Q2 2023, primarily due to higher personnel costs[93] - General and administrative expenses decreased by $0.7 million or 4.2% in Q2 2023, attributed to lower stock-based compensation and personnel costs[95] Research and Development - Research and development expenses increased slightly to $9.865 million in Q2 2023, compared to $9.450 million in Q2 2022[11] - Research and development expenses are anticipated to increase as the company seeks to enhance its e-commerce interface technology and expand product lines[81] - Research and development expenses rose by $0.5 million or 2.7%, primarily due to personnel cost increases[106] Stock and Compensation - The company repurchased $30,064 million in common stock during the financing activities, significantly higher than $5,239 million in the previous year[16] - Stock-based compensation expense for the three months ended June 30, 2023, was $3.7 million, a decrease from $4.0 million in the same period of 2022[41] - The total number of outstanding stock options increased to 399,246 as of June 30, 2023, from 263,992 at the end of 2022, reflecting a growth of approximately 51.1%[43] - The company granted 406,150 restricted stock units during the six months ended June 30, 2023, with a weighted average grant date fair value of $32.50 per share[47] Foreign Currency and Market Conditions - The company recognized a foreign currency translation loss of $3.9 million during the three and six months ended June 30, 2023, due to the closure of its Japan business[52] - The company reported foreign currency losses related to intangible assets of $1.5 million as of June 30, 2023[26] - The effective income tax rate for the three months ended June 30, 2023, was 117.1%, significantly higher than 50.8% for the same period in 2022, an increase of 66.3%[54] Market Performance - The company served 23,377 unique product developers and engineers during the three months ended June 30, 2023, a decrease of 2.8% from the same period in 2022[74] - Revenue in the United States decreased by $4.3 million or 4.3%, while revenue in Europe increased by $2.6 million or 10.9%[89] - The company expects an increase in personnel-related costs to retain and attract top talent, which will contribute to a rise in the cost of revenue[76] Future Outlook - The company plans to continue substantial investments in technology and personnel, leading to increased operating expenses in the future[79] - The company expects that changes in foreign currency exchange rates will increasingly affect its results as it expands internationally[126]

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]