3D Systems Reports Fourth Quarter and Full Year 2023 Financial Results (Unaudited)

Core Viewpoint - 3D Systems Corporation reported a decline in revenue and increased net losses for both the fourth quarter and full year of 2023, primarily due to softness in the dental orthodontics market and reduced capital expenditures from customers [1][2][5]. Fourth Quarter Financial Results - Q4 2023 revenue was $114,848, a decrease of 13.5% compared to Q4 2022, attributed to lower sales in dental orthodontics and printer sales [1][6]. - Gross profit margin for Q4 2023 was 40.4%, with a Non-GAAP gross profit margin of 41.9%, reflecting an improvement due to product mix [1][7]. - The net loss for Q4 2023 was $300,412, with a diluted loss per share of $2.30, significantly impacted by a non-cash impairment of goodwill [1][8]. - Adjusted EBITDA for Q4 2023 was a loss of $12,260, down from the previous year, driven by lower revenue and increased operating expenses [1][8]. Full Year Financial Results - Total revenue for 2023 was $488,069, a decrease of 9.3% from 2022, primarily due to reduced sales in dental orthodontics and slower printer hardware sales [2][9]. - The gross profit margin for 2023 was 40.7%, an increase from 39.8% in 2022, with a Non-GAAP gross profit margin of 41.1% [2][10]. - The net loss for 2023 was $370,432, with a diluted loss per share of $2.85, largely due to goodwill impairment and increased operating expenses [2][10]. - Adjusted EBITDA for 2023 was a loss of $24,525, reflecting the impact of lower revenue and increased expenses related to Regenerative Medicine investments [2][10]. Market and Operational Insights - The dental orthodontic product line was the most significant factor in revenue decline, with a 39% drop from 2022 levels [5][6]. - The company is undergoing a restructuring initiative aimed at reducing costs and improving operational efficiencies to achieve sustained profitability [5][6]. - 3D Systems maintains a strong balance sheet with over $300 million in cash, allowing for continued investment in key growth areas despite current economic pressures [5][6]. 2024 Outlook - The company projects 2024 revenue between $475 million and $505 million, with a Non-GAAP gross profit margin expected to be between 42% and 44% [11]. - Adjusted EBITDA is anticipated to break even or better, reflecting ongoing restructuring efforts and targeted customer applications expected to launch in the next 12-18 months [11][12].