3D Systems (DDD) Q1 2025 Earnings Call May 13, 2025 08:30 AM ET Company Participants Mick McCloskey - Treasurer & Vice President of Investor RelationsDr. Jeffrey Graves - President and CEOJeffrey Creech - Executive VP & CFOTroy Jensen - Managing DirectorBrian Drab - Co-Group Head–IndustrialsAlek Valero - Equity Research Associate Conference Call Participants Greg Palm - Senior Research Analyst Operator Greetings. Welcome to three d Systems First Quarter twenty twenty five Earnings Call. At this time, all pa ...

Financial Data and Key Metrics Changes - For Q1 2025, consolidated revenues were $95 million, an 8% decline from the previous year, primarily due to a decrease in materials sales [30][31] - Non-GAAP gross profit margin was 35%, down from 40% in the prior year, driven by lower volumes and unfavorable price and mix [32] - EBITDA for the quarter was negative $23.9 million, a decline of $4 million from the previous year [34] Business Line Data and Key Metrics Changes - Industrial Solutions revenues were $53 million, a 7% decline, primarily due to lower materials sales, although printer sales and success in aerospace and defense markets provided some offset [31] - Healthcare Solutions revenues decreased by 9% to $41 million, with growth in services offset by declines in materials and flat printer sales [32] - Personalized healthcare and parts manufacturing revenues grew by 1817% and 1718% respectively, indicating strong performance in these segments [24] Market Data and Key Metrics Changes - The dental market is projected to have a total addressable market of $1 billion in the U.S., with Europe and Asia potentially doubling this figure [16][20] - The aligner market continues to grow, although there is volatility due to inventory management and just-in-time sourcing strategies by key manufacturers [40][42] Company Strategy and Development Direction - The company is focusing on cost reduction initiatives, aiming for $70 million in total cost savings over the next two years, with an immediate goal of achieving positive EBITDA [14][15][28] - The strategy includes a shift towards high-reliability markets such as aerospace, defense, and oil and gas, while maintaining a strong position in personalized healthcare [52][92] - The company is committed to maintaining R&D investment at over 20% of revenue, despite current economic challenges, to ensure long-term growth and innovation [11][80] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about weak sales due to frozen capital spending across most markets, with the exception of personalized healthcare, defense, and AI infrastructure [8][10] - The outlook for 2025 is conservative due to ongoing economic and geopolitical instabilities, leading to the withdrawal of full-year guidance [27][37] - The company remains optimistic about future growth once customer capital spending rebounds, supported by a strong product portfolio [37] Other Important Information - The company completed the sale of its GeoMagic asset portfolio, generating over $100 million in net proceeds, which strengthens its cash position [29][35] - The company is currently in a net cash positive position, with approximately $250 million in cash following the GeoMagic sale [36] Q&A Session Summary Question: Can you comment on aligner inventory and the movement to just-in-time? - Management noted that the aligner market continues to grow, but companies are becoming more sophisticated in inventory management, leading to increased volatility in forecasts [40][42] Question: What are the options regarding debt maturity in 18 months? - Management is exploring various options, including paying off debt or rolling it forward, and is currently assessing the balance sheet following the GeoMagic sale [78] Question: How will cost cuts affect growth? - Management emphasized the importance of maintaining R&D spending while focusing on profitable markets, particularly in healthcare and high-reliability industrial sectors [80][86]

Q1 2025 Results Speakers Dr. Yoav Zeif, CEO Eitan Zamir, CFO Yonah Lloyd, CCO & VP IR May 8, 2025 Make additive work for you Conference Call and Webcast Link US Toll-Free Dial-In 1-877-407-0619 International Dial-In Live Webcast and Replay +1-412-902-1012 Forward -Looking Statements Cautionary Statement Regarding Forward - Looking Statements The statements in this slide presentation regarding Stratasys' strategy, and the statements regarding its projected future financial performance, including the financia ...

Core Viewpoint - MRC Global reported quarterly earnings of $0.14 per share, exceeding the Zacks Consensus Estimate of $0.08 per share, but down from $0.20 per share a year ago, indicating a 75% earnings surprise [1][2] Financial Performance - The company posted revenues of $712 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.28%, but down from $806 million year-over-year [2] - Over the last four quarters, MRC has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Stock Performance - MRC shares have declined approximately 5.3% since the beginning of the year, compared to a decline of 3.9% for the S&P 500 [3] - The current Zacks Rank for MRC is 5 (Strong Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.24 on revenues of $782.4 million, and for the current fiscal year, it is $0.97 on revenues of $3.01 billion [7] - The trend for estimate revisions ahead of the earnings release was unfavorable, which may impact future stock performance [6] Industry Context - MRC operates within the Steel - Pipe and Tube industry, which is currently ranked in the bottom 6% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for 3D Systems despite lower revenues, with a focus on how actual results will compare to estimates [1][2] Earnings Expectations - 3D Systems is expected to report a quarterly loss of $0.13 per share, reflecting a year-over-year change of +23.5% [3] - Revenues are projected to be $98.39 million, down 4.4% from the same quarter last year [3] Estimate Revisions - The consensus EPS estimate has been revised 3.23% higher in the last 30 days, indicating a positive reassessment by analysts [4] - A positive Earnings ESP of +36% suggests analysts are bullish on the company's earnings prospects [10][11] Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8] - The current Zacks Rank for 3D Systems is 3, indicating a likelihood of beating the consensus EPS estimate [11] Historical Performance - In the last reported quarter, 3D Systems was expected to post a loss of $0.11 per share but actually reported a loss of $0.19, resulting in a surprise of -72.73% [12] - The company has not beaten consensus EPS estimates in any of the last four quarters [13] Conclusion - While 3D Systems appears to be a compelling earnings-beat candidate, other factors should also be considered when evaluating the stock ahead of its earnings release [16]

Core Viewpoint - 3D Systems will announce its financial results for Q1 2025 on May 12, 2025, with a conference call scheduled for May 13, 2025, at 8:30 a.m. Eastern Time [1][2]. Company Overview - 3D Systems was founded over 35 years ago by Chuck Hull, who aimed to enhance product design and manufacturing through 3D printing, leading to the establishment of the additive manufacturing industry [3]. - The company provides comprehensive 3D printing solutions, including technologies, materials, and software, targeting high-value markets such as medical, aerospace, transportation, AI infrastructure, and durable goods [3]. - 3D Systems is committed to transforming manufacturing for a better future, driven by the expertise and passion of its employees [3].

NEW YORK, April 29, 2025 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of  3D Systems Corporation (“3D Systems” or the “Company”) (NYSE: DDD).  Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980. The investigation concerns whether 3D Systems and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.  [Click here for information about joining the class action] On M ...

Financial Performance - Revenue increased by 4.3% to 66.4 million EUR in Q1 2025 compared to 63.6 million EUR in Q1 2024 [16, 18] - Adjusted EBIT decreased by 75.7% to 646 kEUR in Q1 2025, representing 1.0% of revenue, compared to 2.7 million EUR in Q1 2024 [20, 14] - Adjusted EBITDA decreased by 24.1% to 6.1 million EUR in Q1 2025, representing 9.3% of revenue, compared to 8.1 million EUR in Q1 2024 [20] - Net loss was (535) kEUR, representing (1) EUR-ct per share [14] Segment Performance - Medical segment revenue increased by 18.7% to 31.1 million EUR in Q1 2025 compared to 26.2 million EUR in Q1 2024 [23, 25] - Software segment revenue decreased by 6.4% to 9.8 million EUR in Q1 2025 compared to 10.4 million EUR in Q1 2024 [27, 28] - Manufacturing segment revenue decreased by 5.5% to 25.5 million EUR in Q1 2025 compared to 27.0 million EUR in Q1 2024 [30, 31] Other Financial Data - Net cash position increased by 6.7 million EUR to 67.7 million EUR over Q1 2024 [14] - Deferred revenue from software licenses and maintenance increased to 48.9 million EUR [18] - The company is targeting a 55% reduction in CO2 emissions by 2029, with a 32% reduction achieved since 2019 [9] Financial Guidance - The company maintains its prior guidance for 2025, expecting consolidated revenue within the range of 270 to 285 million EUR and consolidated Adjusted EBIT within the range of 6 to 10 million EUR [44]

Financial Data and Key Metrics Changes - Total revenue increased year-over-year by more than 4% to €66.4 million, while EBIT for Q1 2025 amounted to €0.6 million [24] - The net result for the quarter was a loss of €0.5 million or €0.01 per share, impacted by unfavorable exchange rate fluctuations [24][37] - Free cash flow was positive, reinforcing the net cash position to €67.7 million, an increase of almost €7 million compared to the beginning of the quarter [24][40] Business Line Data and Key Metrics Changes - Materialise Medical revenue grew almost 19%, driven by both Medical Software and Medical Devices sales, which increased by 14% and 21% respectively [26][29] - Software segment revenue decreased by 6% to €9.8 million due to revenue deferral, although more than 80% of Software revenue was recurring [31][56] - Manufacturing segment revenues decreased by 5.5% compared to Q1 2024, but increased by 12% compared to Q4 2024 [33] Market Data and Key Metrics Changes - Aerospace segment sales grew by 23% year-over-year, while industrial and automotive segments faced challenges [21][33] - The total deferred income position increased to €61 million, with €49 million related to Software licenses and maintenance contracts [40] Company Strategy and Development Direction - The company aims to cut absolute emissions by 55% by 2029 compared to the 2019 baseline, having already reduced emissions by 32% in 2024 [9][10] - Materialise is focusing on scaling additive manufacturing and enhancing software solutions to facilitate broader adoption [11][16] - The company is reassessing its involvement in the defense sector to strengthen its aerospace segment and create new opportunities [22] Management Comments on Operating Environment and Future Outlook - Management expects Q2 to be more challenging but anticipates stabilization in the second half of 2025, maintaining revenue guidance of €270 million to €285 million for the full year [43] - The current geopolitical landscape and macroeconomic conditions are expected to weigh on results, particularly in Q2 [43] Other Important Information - The company launched a clinical trial for a 3D-printed tracheal splint for infants, which could open new market opportunities [15] - Significant R&D investments continued, with over €11 million spent in Q1, primarily in the Medical segments [35] Q&A Session Summary Question: Impact of tariffs on Materialise - Management indicated that the U.S. manufacturing plant mitigates tariff impacts, while raw materials may be affected [48][50] Question: Q2 outlook - Management expects Q2 to be flat on the topline with uncertainty in the market, predicting pressure on the bottom line [52][54] Question: Software revenue performance - Software revenue was below €10 million for the first time since COVID, but over 80% of Software revenue is now recurring, indicating a positive trend [55][56]

Financial Data and Key Metrics Changes - Total revenue increased by more than 4% year-over-year to €66.4 million in Q1 2025, while EBIT amounted to €600,000, and the net result was a loss of €500,000 or €0.01 per share [17][18][25] - The net cash position at the end of Q1 was €67.7 million, an increase of almost €7 million compared to the beginning of the quarter [17][27] Business Line Data and Key Metrics Changes - Materialise Medical revenue grew by almost 19%, while Software and Manufacturing segments saw revenue decreases of around 6% each [18][20] - Adjusted EBITDA for Materialise Medical increased to over €9 million with a stable margin of 29%, while Software segment adjusted EBITDA decreased to €600,000 with a margin of 6.1% [21][22] Market Data and Key Metrics Changes - The aerospace segment in Manufacturing saw a sales growth of 23% compared to Q1 2024, while overall Manufacturing revenues decreased by 5.5% year-over-year [16][24] - The total deferred revenue related to software maintenance and license fees increased by €1.9 million, totaling almost €49 million [19] Company Strategy and Development Direction - The company aims to scale additive manufacturing and improve efficiency through advanced software solutions, with a focus on overcoming barriers to adoption [9][13] - Materialise is reassessing its involvement in the defense sector to strengthen its position in aerospace and create new opportunities [16] Management Comments on Operating Environment and Future Outlook - Management expects Q2 2025 to be challenging but anticipates stabilization in the second half of the year, maintaining guidance for consolidated revenue between €270 million and €285 million for the full year [29][30] - The transition to a recurring revenue model in the Software segment is progressing, with over 80% of software revenue now recurring [40][42] Other Important Information - The company published its 2024 sustainability report, aiming to cut absolute emissions by 55% by 2029 compared to the 2019 baseline [7][8] Q&A Session Summary Question: Impact of tariffs on Materialise - Management indicated that the US manufacturing plant mitigates tariff impacts, but raw materials may be affected, and the biggest concern is the potential impact on customers [35][36] Question: Outlook for Q2 - Management expects Q2 to be a difficult quarter, with a flattish top line anticipated, but uncertainty remains high [37][38] Question: Software revenue performance - Software revenue was below €10 million for the first time since the beginning of COVID, but deferred revenue is growing, and over 80% of software revenue is now recurring [39][40][41]