Financial Performance & Growth - Protolabs achieved $504 million in revenue in 2023[6] - The company's Non-GAAP gross margin was 45% in 2023[6] - Adjusted EBITDA reached $83 million in 2023[6] - Protolabs Network revenue experienced a 69% year-over-year growth in constant currencies in 2023[60] - The company's revenue increased by 5% year-over-year, excluding Japan, in 2023[56] Customer Base & Manufacturing - Protolabs has served over 53,000 customer contacts[6,36] - The company has manufactured over 450 million parts to date[6] - Over 85% of Fortune 500 companies in target industries are served by Protolabs[36] - More than 90% of revenue comes from returning customers[44] Market & Outlook - Protolabs operates in a $100 billion+ market[8,14,18] - The company anticipates Q1 2024 revenue between $120 million and $128 million, representing a growth range of -5% to 2% year-over-year[73] - Non-GAAP EPS for Q1 2024 is projected to be between $0.26 and $0.34, indicating a year-over-year growth range of -12% to 15%[73]

Q1 2025 Results June 2025 Disclaimer Cautionary Note Regarding Forward Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include statements regarding Nano's future growth, strategic plan and value to shareholders, Desktop Metal's strategic review process, and all other statements other than statements of historical fact that address activities, events or developments that Nano i ...

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $14.4 million, representing an 8% growth from Q1 2024 despite macroeconomic headwinds [7] - Adjusted gross margin for the quarter was 43.8%, down from 49.8% in Q1 2024, impacted by the discontinuation of non-strategic assets [7] - Operating expenses (OpEx), net of one-time expenses, declined to $14 million in Q1 2025 from $25.3 million in Q1 2024, reflecting a focus on cost controls and operational efficiencies [7] - Adjusted EBITDA loss was $9 million in Q1 2025, compared to a loss of $13.6 million in Q1 2024 [8] - As of March 31, cash, cash equivalents, and investable securities totaled $840 million, excluding recent acquisitions [8] Business Line Data and Key Metrics Changes - The core business revenue was just under $15 million in Q1 2025, while Markforged generated just under $17 million [12] - The company discontinued several products, including Admitec, DeepCube, Fabrica, and Formatec, expected to save around $20 million in annual operating expenses [9][10] Market Data and Key Metrics Changes - The company is focused on integrating Markforged and optimizing operations, with a strategic emphasis on high-margin, high-performance parts manufacturing [11][15] Company Strategy and Development Direction - The company is pursuing product rationalization and operating model optimization to ensure competitive advantages and high margins [11][13] - The integration of Markforged is seen as a key opportunity to enhance the company's offerings in digital manufacturing [14][15] - The management is committed to creating shareholder value through responsible growth and innovation [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic challenges but expressed confidence in the strategic decisions made to enhance operational efficiency and shareholder value [7][16] - The company is currently evaluating strategic alternatives for Desktop Metal, with a focus on disciplined expense management and cash burn control [19][20] Other Important Information - The company emphasized the importance of a flatter organizational structure to foster innovation and speed in delivering value [11][14] Q&A Session Summary Question: Inquiry about Desktop Metal's convertible and responsibilities post-acquisition - Management confirmed that obligations to Desktop Metal are being met and that its management operates independently [18] Question: Request for insights on cost structure and cash burn rate for the combined business model - Management refrained from providing specific guidance but assured that they are disciplined in managing expenses and cash burn [19][20]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $14.4 million, representing an 8% growth from Q1 2024 despite macroeconomic headwinds [7] - Adjusted gross margin for the quarter was 43.8%, down from 49.8% in Q1 2024, impacted by the discontinuation of non-strategic assets [7] - Operating expenses (OpEx), net of one-time expenses, declined to $14 million in Q1 2025 from $25.3 million in Q1 2024, reflecting a focus on cost controls and operational efficiencies [7] - Adjusted EBITDA loss was $9 million in Q1 2025, improved from a loss of $13.6 million in Q1 2024 [8] - As of March 31, cash, cash equivalents, and investable securities totaled $840 million, excluding recent acquisitions [8] Business Line Data and Key Metrics Changes - The core business revenue was just under $15 million in Q1 2025, while Markforged generated just under $17 million [12] - The company has discontinued several products, including Admitec, DeepCube, Fabrica, and Formatec, which were not delivering sufficient ROI [9] Market Data and Key Metrics Changes - The company is focused on integrating Markforged and optimizing its operations, which includes product rationalization and reducing operating expenses [14][15] Company Strategy and Development Direction - The company aims to create shareholder value through strategic integration and operational optimization, ensuring competitive advantages and high margins [11][14] - The focus is on manufacturing high-value, high-performance parts at scale rather than experimental designs [11] - The company is committed to a flatter organizational structure with more doers and fewer managers to enhance innovation and value delivery [11][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic decisions made to address business challenges and create shareholder value [16] - The company is evaluating strategic alternatives for Desktop Metal while focusing on the integration of Markforged [21] Other Important Information - The company is running product rationalization and operating model optimization processes to ensure high-margin solutions [13] - The management team is disciplined in managing expenses and cash burn rates during the integration process [21][22] Q&A Session Summary Question: Inquiry about Desktop Metal's convertible and responsibilities post-acquisition - Management stated that obligations to Desktop Metal are being met and that it is managed by independent parties [20] Question: Request for insights on cost structure and cash burn rate for the combined business model - Management indicated that they are not providing guidance at this time but are disciplined in managing expenses and cash burn [21][22]

Core Business Performance - The company reported core business revenue of $14.4 million for the first quarter of 2025, representing an 8% increase from $13.4 million in the same period last year [9] - Gross margin decreased to 41% from 46% year-over-year, while adjusted gross margin fell to 44% from 50% [9] - The adjusted EBITDA loss improved to $9.0 million from a loss of $13.6 million, marking a 33% year-over-year improvement [9] Financial Overview - The net loss for the first quarter of 2025 was $24.0 million, down from a loss of $35.0 million, indicating a 31% improvement year-over-year [9] - Total cash, cash equivalents, deposits, and investable securities amounted to $840 million as of March 31, 2025, down from $907 million year-over-year [9] - Research and development expenses decreased to $5.0 million from $9.1 million, while sales and marketing expenses fell to $5.5 million from $6.5 million [9][10] Strategic Initiatives - The company is targeting over $20 million in annualized operating cost savings starting from Q4 2025 through various measures, including discontinuation of underperforming product lines and targeted headcount reductions [5][10] - Following the acquisition of Markforged in April 2025, the company is focused on achieving operational synergies and aligning financial and operational standards [6] - The company launched new products, including FOX Ultra and PUMA Ultra, as part of its innovation strategy [10] Recent Developments - The company is undergoing a strategic assessment of Desktop Metal to address its liabilities and liquidity issues [10] - The board of directors has been strengthened with the addition of technology and growth experts to enhance corporate governance [10] - A conference call is scheduled to discuss financial results and strategic outlook, indicating ongoing communication with shareholders [12]

Core Insights - Nano Dimension Ltd. has appointed Andy Sriubas and Eileen Tanghal to its Board of Directors, marking a significant transition as the company moves from M&A integration to scaling its technology platform globally [1][2] Group 1: Board Appointments - The appointments are seen as crucial for guiding the company's next phase, focusing on delivering value to shareholders [2] - Andy Sriubas has extensive experience in commercial strategy and digital transformation, previously serving as chief commercial officer at OUTFRONT Media and has over two decades in investment banking [2][3] - Eileen Tanghal, co-founder of Black Opal Ventures, has a strong background in evaluating and scaling technologies, with previous roles at In-Q-Tel and ARM [3][4] Group 2: Strategic Focus - The company is at a pivotal point in its growth, emphasizing commercialization in the digital manufacturing market [4] - Both new board members bring complementary strengths: Sriubas in commercializing platforms and Tanghal in identifying transformative technologies [4] - The management team, along with a broad array of patents and technologies, positions the company for success in addressing global manufacturing challenges [4][5] Group 3: Industry Context - Nano Dimension operates in advanced digital manufacturing, catering to sectors such as defense, aerospace, automotive, electronics, and medical devices [5] - The company is driven by trends in onshoring, national security, and increasing product customization, enabling rapid deployment of high-mix, low-volume production [5]

Core Viewpoint - Nano Dimension Ltd. is set to discuss its Q1 2025 financial results in a conference call and webcast scheduled for June 12, 2025 [1]. Group 1: Company Overview - Nano Dimension is a leader in Digital Manufacturing solutions, focusing on advanced technologies for various industries including defense, aerospace, automotive, electronics, and medical devices [3]. - The company is driven by trends in onshoring, national security, and increasing product customization, enabling rapid deployment of high-mix, low-volume production with IP security and sustainable practices [3]. Group 2: Event Details - The conference call will take place on June 12, 2025, at 4:30 pm EST, with participants advised to log in at least 10 minutes prior to the call [2][4]. - A replay of the webcast will be available shortly after the conclusion of the call [2].

Financial Data and Key Metrics Changes - The company reported revenue of $126 million for Q1 2025, which is down slightly year-over-year but near the upper end of guidance [5][20] - Non-GAAP earnings per share were $0.33, also near the top end of expectations, reflecting solid profitability [5][24] - Free cash flow represented 14% of revenue, indicating continued industry-leading profitability [6] - Non-GAAP gross margin increased by 140 basis points sequentially to 44.8%, although it was down 80 basis points year-over-year [23] Business Line Data and Key Metrics Changes - Revenue from CNC machining grew by 6% year-over-year, driven by strong performance in production [21] - Injection molding revenue declined by 7% year-over-year but increased by 7% compared to the previous quarter [22] - 3D printing revenue was down 6% year-over-year due to lagging order trends [22] - Sheet metal revenue increased by 19% year-over-year, driven by improved offerings [22] Market Data and Key Metrics Changes - U.S. revenue was down 1.2% compared to the prior year, while European revenue was flat in constant currencies [20] - Revenue fulfilled through the Proto Labs Network was $26.3 million, up 11.5% in constant currencies [20] Company Strategy and Development Direction - The company is focused on driving growth through a hybrid model, which has seen customer utilization of combined offerings grow by over 45% [6][7] - Strategic priorities for 2025 include enhancing efficiency, expanding production use cases, and reinforcing the core prototyping business [18] - The company is closely monitoring tariff policies and believes the current situation presents growth opportunities due to its diverse manufacturing footprint [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic headwinds and maintain profitability [6][19] - The current economic uncertainty is causing customers to be cautious about demand forecasting, but the company believes it can adapt quickly [17] - Management anticipates continued growth in Q2 2025, with revenue guidance between $124 million and $132 million [25] Other Important Information - The company has zero debt and $116.3 million in cash and investments on its balance sheet [25] - The company is actively reviewing pricing strategies to offset potential impacts from tariffs [17] Q&A Session Summary Question: Can you elaborate on the sustainability of the recent gross margin improvement? - Management indicated that the improvement was primarily due to increased factory volume, but network margins faced challenges [29][30] Question: Are there concerns regarding the hubs network due to tariffs? - Management reassured that the network is adaptable and has been able to mitigate impacts from tariffs effectively [36][38] Question: What are the trends in order growth and customer behavior in April? - Orders have consistently improved month-to-month, with a higher proportion of revenue going through the network [41][42] Question: Are there any headwinds from materials used due to tariffs? - Management stated that the robust supply chain has mitigated substantial increases in raw material costs due to tariffs [65][66] Question: How does the 3D printing business align with the production parts strategy? - The 3D printing segment is primarily a prototyping service, which has faced headwinds due to a slowdown in new product launches [68][69] Question: Is the company satisfied with its strategy in mature manufacturing markets? - Management expressed confidence in their differentiated offering and the ability to penetrate various industries over time [71]

Proto Labs (PRLB) Q1 2025 Earnings Call May 02, 2025 08:30 AM ET Speaker0 As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jason Frankman, Vice President and Corporate Controller. Thank you. You may begin. Speaker1 Thank you, Shamali. Good morning, everyone, and welcome to Proto Labs' first quarter twenty twenty five earnings conference call. I'm joined today by Rob Bedore, president and chief executive officer, and Dan Schumacher, Chief Financial Officer. This ...