Proto Labs(US:PRLB)2023-08-04 19:20Financial 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]