Financial Data and Key Metrics Changes - Proto Labs reported second quarter revenue of $125.6 million, a year-over-year increase of 2.8% in constant currencies [20] - Non-GAAP earnings per share (EPS) for the second quarter was $0.38, down $0.02 compared to the first quarter of 2024, but adjusted EPS for the first half of 2024 increased by 25% year-over-year [22][24] - Non-GAAP gross margin for the second quarter increased by 10 basis points sequentially to 45.7% [22] Business Line Data and Key Metrics Changes - Proto Labs network revenue was $24.7 million, up 22.7% in constant currencies [20] - Injection molding revenue was flat year-over-year, while CNC machining grew by 6% year-over-year [21] - Three-dimensional (3D) printing revenue grew by 1% year-over-year, and sheet metal revenue was flat year-over-year but up 10% compared to the first quarter [21] Market Data and Key Metrics Changes - Manufacturing activity in the U.S. and Europe has contracted, with the U.S. Manufacturing PMI hitting an eight-month low [12][24] - Customer ordering patterns softened in June and continued into July, reflecting broader economic challenges [24][58] Company Strategy and Development Direction - The company is focusing on two strategic initiatives: increasing the number of customers using its comprehensive offer and driving higher revenue per customer through larger orders [6][8] - A reorganization is being implemented to separate revenue generation from operational fulfillment, aiming to enhance customer engagement and streamline operations [14][27] - The leadership changes are expected to drive growth and improve efficiency while managing costs [18][56] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macro environment, including higher interest rates and reduced demand for manufactured goods, but expressed confidence in the company's ability to grow faster [11][39] - The company anticipates a more pronounced challenging operating environment in the third quarter, with revenue guidance between $117 million and $125 million [24][26] - Management remains optimistic about the long-term growth potential, citing a 50% year-over-year increase in customers using the combined offer [8][41] Other Important Information - Cash flow from operations was $14.4 million, with $112.9 million in cash and investments and zero debt as of June 30, 2024 [23] - The company repurchased $10.9 million of common shares in the quarter [23] Q&A Session Summary Question: Can you elaborate on the reorganization and its impact on growth? - The reorganization aims to enhance customer service by creating a unified operations organization, allowing for better customer engagement and productivity [31][32] Question: What is the expected impact on gross margins and operating expenses? - Gross margins are expected to be down slightly quarter-over-quarter, while operating expenses are anticipated to decrease slightly as well [46][47] Question: How do you foresee the trend in customer count? - Management believes they can reverse the decline in customer count by improving service and driving overall growth [40][41] Question: Can you provide additional color on the slowing orders in June and July? - The slowdown was noted across major geographic regions, with increased hesitancy in closing orders due to longer approval cycles [58][60] Question: Will the reorganization lead to additional investments? - The reorganization is primarily about redeploying resources effectively, with a focus on growth and improved customer service [54][55]

Core Insights - Proto Labs (PRLB) reported quarterly earnings of $0.38 per share, exceeding the Zacks Consensus Estimate of $0.34 per share, but down from $0.46 per share a year ago, representing an earnings surprise of 11.76% [1] - The company achieved revenues of $121.75 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.64%, although this is a decrease from $125.05 million year-over-year [2] - Proto Labs has consistently outperformed consensus EPS estimates over the last four quarters, achieving this four times [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.32 on revenues of $125.35 million, and for the current fiscal year, it is $1.45 on revenues of $509.58 million [7] - The estimate revisions trend for Proto Labs is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Rubber - Plastics industry, to which Proto Labs belongs, is currently ranked in the top 16% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Revenue Performance - 2024 revenue was $501 million, a 0.6% decrease compared to $503.9 million in 2023[4] - Fourth quarter 2024 revenue was $121.8 million, a 2.6% decrease from $125.0 million in the fourth quarter of 2023[4] - Revenue fulfilled through the Protolabs Network increased by 21.6% to $100.4 million in 2024 compared to 2023[4] - Total revenue for the three months ended December 31, 2024, was $121.75 million, a decrease of 1.0% from $125.05 million in the same period of 2023[26] - For the twelve months ended December 31, 2024, total revenue was $500,890, a decline of 0.6% from $503,877 in 2023[38] - The CNC Machining service line saw a revenue increase of 4.4% for the twelve months ended December 31, 2024, while Injection Molding revenue decreased by 4.8%[40] - The revenue from the 3D Printing service line decreased by 0.6% for the twelve months ended December 31, 2024, compared to the previous year[40] Earnings and Profitability - Non-GAAP earnings per share for 2024 was $1.63, compared to $1.59 in 2023[4] - Gross margin for 2024 was 44.6%, up from 44.1% in 2023[4] - Non-GAAP net income for the twelve months ended December 31, 2024, was $41.17 million, slightly down from $41.59 million in 2023[30] - The company reported a net loss of $404,000 for the three months ended December 31, 2024, compared to a net income of $6.99 million in the same period of 2023[26] - Non-GAAP operating margin for the three months ended December 31, 2024, was 7.6%, down from 11.2% in the same period of 2023[34] - GAAP net loss for Q4 2024 was $(404), compared to a net income of $6,990 in Q4 2023, resulting in a GAAP net income margin of (0.3%) versus 5.6%[36] - Adjusted EBITDA for Q4 2024 was $16,861, down from $22,298 in Q4 2023, with an adjusted EBITDA margin of 13.8% compared to 17.8%[36] - The company reported a decrease in GAAP net income margin for the twelve months ended December 31, 2024, at 3.3% compared to 3.4% in 2023[36] Cash Flow and Financial Position - Cash flow from operations increased to $77.8 million in 2024, up from $73.3 million in 2023[4] - The company’s cash and cash equivalents at the end of the period were $89.07 million, up from $83.79 million at the beginning of the period[28] Customer Metrics - The number of customers using the combined Factory and Network offer grew by 50% in 2024[3] - Revenue per customer contact increased by 3.1% year-over-year to $9,716, serving 51,552 customer contacts in 2024[14] - Customer contacts decreased to 21,558 in Q4 2024 from 21,879 in Q4 2023, while revenue per customer contact increased to $5,648 from $5,715[44] Future Outlook - The company expects first quarter 2025 revenue to be between $120 million and $128 million[7] - The company expects Q1 2025 GAAP diluted net income per share to range from $0.08 to $0.16, with non-GAAP diluted net income per share projected between $0.26 and $0.34[46] - Total adjustments for non-GAAP guidance in Q1 2025 include stock-based compensation and amortization expenses totaling $0.18[46] Operating Expenses - Operating expenses for the three months ended December 31, 2024, increased to $53.45 million from $47.42 million in the same period of 2023, primarily due to higher marketing and sales expenses[26] - The company incurred costs related to exit and disposal activities amounting to $5.59 million for the three months ended December 31, 2024[30] Segment Performance - The company’s CNC Machining revenue increased by 7.0% to $52.39 million for the three months ended December 31, 2024, compared to $48.91 million in the same period of 2023[26] - The company’s gross margin for the three months ended December 31, 2024, was 42.7%, down from 44.6% in the same period of 2023[32]

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 ...

Financial Data and Key Metrics Changes - First quarter revenue was $127.9 million, growing 1% year-over-year in constant currencies, and was at the top end of the guidance range [45] - Non-GAAP EPS was $0.40, down $0.06 sequentially, primarily due to higher operating expenses [20] - Non-GAAP gross margin increased 30 basis points sequentially to 45.6%, driven by improvements in factory gross margins [47] Business Line Data and Key Metrics Changes - Proto Labs Network revenue reached a quarterly record of $23.9 million, up 38% in constant currencies [45] - Injection Molding revenue grew approximately 1% year-over-year in constant currencies, with strong growth in larger orders [46] - CNC Machining revenue grew 3% year-over-year in constant currencies, while 3D Printing revenue was flat year-over-year [46] Market Data and Key Metrics Changes - U.S. revenue grew 4% year-over-year, while Europe revenue declined 9% year-over-year in constant currencies due to the absence of large orders from the previous year [45] - The Eurozone and U.K. manufacturing sectors continued to contract in the first quarter based on weak demand [45] Company Strategy and Development Direction - The company is focused on increasing the number of customers using its comprehensive offer and driving higher revenue per customer through larger orders [31] - There is a significant growth opportunity as less than 5% of the 53,000 total Proto Labs customer contacts currently utilize both the factory and network services [9][24] - The company aims to capitalize on technological advancements and automation to enhance production efficiency and customer service [10] Management's Comments on Operating Environment and Future Outlook - Management noted a challenging environment with variability in order trends, particularly a softening in larger orders as the company approached the Easter period [52] - The guidance for the second quarter anticipates revenue between $122 million and $130 million, with expectations for year-over-year growth [49] - Management expressed confidence in maintaining strong gross margins due to increased automation and efficiency in production [54] Other Important Information - The company repurchased $16 million of common stock in the quarter, equivalent to 85% of its free cash flow [48] - The company has zero debt and $112.9 million in cash and investments on its balance sheet as of March 31, 2024 [48] Q&A Session Summary Question: Can you elaborate on the guidance approach? - Management indicated that guidance is based on order trends observed, with a focus on the variability in the business environment [22][52] Question: What is the status of customer cross-selling opportunities? - Less than 5% of customers currently use full services, indicating a significant growth potential as the company works to increase this number [24][39] Question: How does the softness in orders compare between Europe and the U.S.? - Management noted that the softness is more pronounced in the U.S. than in Europe, with larger orders being a key factor [40]