Proto Labs(US:PRLB)2021-11-02 20:10Financial Performance - Revenue for the three months ended September 30, 2021, was $125.34 million, a 16.5% increase from $107.50 million in the same period of 2020[12] - Net income for the three months ended September 30, 2021, was $4.84 million, a decrease of 67.1% compared to $14.70 million in the same period of 2020[12] - Gross profit for the three months ended September 30, 2021, was $55.32 million, compared to $54.64 million in the prior year, reflecting a slight increase[12] - Total revenue for the nine months ended September 30, 2021, was $364,516,000, up 10.7% from $329,187,000 in the same period of 2020[71] - Net income for the nine months ended September 30, 2021, was $21,462,000, compared to $41,288,000 for the same period in 2020, representing a decrease of 48.0%[19] Expenses - Operating expenses increased to $48.40 million for the three months ended September 30, 2021, from $36.97 million in the same period of 2020, representing a 30.9% rise[12] - Research and development expenses rose to $10.61 million for the three months ended September 30, 2021, compared to $7.92 million in the prior year, reflecting a 33.8% increase[12] - Stock-based compensation expense for the nine months ended September 30, 2021, was $15,539,000, compared to $10,617,000 for the same period in 2020, reflecting an increase of 46.5%[19] - General and administrative expenses increased by $4.8 million, or 38.5%, largely due to higher professional service costs and expenses related to the acquisition of Hubs[102] Assets and Liabilities - Total assets as of September 30, 2021, were $930.31 million, up from $744.20 million as of December 31, 2020, indicating a growth of 25.0%[9] - Total liabilities increased to $105.69 million as of September 30, 2021, from $99.85 million at the end of 2020, representing a 5.8% increase[9] - The company’s cash and cash equivalents decreased to $47.80 million as of September 30, 2021, from $127.60 million as of December 31, 2020, a decline of 62.6%[9] Acquisition - The company acquired 3D Hubs, Inc. for a total consideration of $294.1 million, which included $127.4 million in cash and $166.7 million in common stock[27] - Goodwill increased by $281.8 million during the nine months ended September 30, 2021, due to the acquisition of Hubs, resulting in a total goodwill balance of $404.2 million[34] - Total assets acquired in the Hubs acquisition were valued at $316,251,000, with net assets acquired amounting to $294,122,000[32] Market Performance - Unique product developers served increased by 24.8% to 23,457 during the three months ended September 30, 2021, compared to the same period in 2020[82] - Revenue from CNC Machining increased by 31.8% to $43.7 million, while Injection Molding revenue rose by 8.3% to $57.7 million for the three months ended September 30, 2021[97] Taxation - The effective income tax rate for the three months ended September 30, 2021, was 31.5%, an increase of 11.4% compared to the same period in 2020[11] - The Company recorded an income tax provision of $2.2 million for the three months ended September 30, 2021, down from $3.7 million in the same period of 2020[11] Cash Flow - The company reported a net cash provided by operating activities of $32,225,000 for the nine months ended September 30, 2021, down from $82,375,000 for the same period in 2020, a decrease of 60.9%[19] - Cash used in investing activities was $98.3 million during the nine months ended September 30, 2021, primarily for the acquisition of Hubs and capital asset purchases[123] Stock and Compensation - As of September 30, 2021, there were 248,548 stock options outstanding with a weighted average exercise price of $98.84, up from 229,531 options at December 31, 2020[55] - Unrecognized compensation expense related to unvested stock options was $5.4 million as of September 30, 2021, expected to be recognized over a weighted-average period of 2.8 years[57] - Restricted stock awards increased to 351,774 shares at September 30, 2021, with an average fair value of $117.51 per share[59]