3D Systems (DDD) Q1 Earnings Miss Estimates, Revenues Down Y/Y

Core Viewpoint - 3D Systems reported a wider non-GAAP loss in Q1 2024 compared to the previous year and consensus estimates, driven by a significant decline in printer sales due to macroeconomic challenges, despite some growth in materials and services [1][2]. Financial Performance - The company recorded a non-GAAP loss of 17 cents per share, compared to a loss of 9 cents per share in the same quarter last year [1]. - Revenues totaled $102.9 million, down 15.1% year over year, and fell short of the consensus estimate by 6.4% [1]. - Product revenues decreased by 24.1% year over year to $64.1 million, while services revenues increased by 5.4% to $38.9 million, contributing 37.8% to total revenues [1][2]. Segment Performance - Healthcare revenues declined by 6.8% year over year to $45.4 million, primarily due to reduced printer sales to a major orthodontics customer [2]. - The Industrial Division's revenues fell by 20.7% year over year to $57.5 million [2]. Profitability Metrics - Non-GAAP gross profit decreased by 12.7% year over year to $41.2 million, but the gross profit margin improved by 110 basis points to 40% due to better operational efficiencies [2]. - Adjusted EBITDA dropped to a negative $20.1 million, worsening from a negative adjusted EBITDA of $10.1 million in the prior year [2]. Balance Sheet - As of March 31, 2024, cash and cash equivalents were $212 million, down from $331.6 million at the end of 2023 [3]. - Total debt decreased to $211 million from $319.3 million as of December 31, 2023 [3]. Guidance - For Q2 2024, the company anticipates revenues between $113 million and $113.5 million [4]. Market Position - 3D Systems holds a Zacks Rank of 3 (Hold) and has seen its stock price decline by 60.3% year to date, contrasting with a 22.5% increase in the Zacks Computer & Technology sector [4].