3D Systems(US:DDD)2021-08-10 16:23Financial Data and Key Metrics Changes - The company reported a nearly 60% year-over-year growth in revenue, with EBITDA increasing by 650% to 12.4% of revenue for the quarter [10][28] - The gross profit margin was 42.4% in Q2 2021, compared to 31.2% in Q2 2020, and non-GAAP gross profit margin was 42.4% compared to 41% in the same period last year [26][27] - Operating expenses increased by 14.5% year-over-year to $79.1 million on a GAAP basis, primarily due to higher stock compensation expenses [27] Business Line Data and Key Metrics Changes - The industrial segment saw a sequential growth of 8.3% compared to Q1 2021, reflecting a continued market rebound [24] - The company sold a record three of its flagship Factory 500 Metal machines during the quarter, indicating strong demand in the Aerospace and Transportation segments [25] Market Data and Key Metrics Changes - The healthcare segment is experiencing significant growth, with mid-teens growth reported in Q1 and nearing double digits in industrial applications [38] - The company noted a strong interest in metal printing technologies, with both the Factory 350 and Factory 500 units performing well [51] Company Strategy and Development Direction - The company executed a four-phase plan to focus on additive manufacturing solutions, divesting non-core assets to enhance investment in growth opportunities [9][15] - A new Chief Technology Officer for Additive Manufacturing was appointed to drive organic growth through application development and product innovation [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the next 12 months, highlighting the company's strong financial position and readiness to capitalize on the accelerating adoption of additive manufacturing [34] - Concerns were raised about potential headwinds from COVID variants, inflation, and supply chain shortages, but management remains positive about the second half of the year [25][26] Other Important Information - The company completed its plan to exit non-core businesses, resulting in a strong cash position of approximately $500 million and no debt [15][31] - The company plans to expand its facilities in Rock Hill, South Carolina, and Littleton, Colorado, to support future growth [16] Q&A Session Summary Question: What is the outlook for organic growth? - Management indicated a strong organic growth profile, particularly in healthcare and industrial markets, with expectations to mirror overall industry growth rates [36][38] Question: Can you clarify the revenue from divestitures? - The CFO confirmed that the revenue from divestitures not yet closed is approximately $25 million per quarter, while previously closed divestitures accounted for $40 to $50 million [42][43] Question: What is the expected capital expenditure outlook? - The CFO maintained that capital expenditures are expected to be around 4% to 5% of revenue, focusing on additive manufacturing [46] Question: How is the software segment performing? - The software segment currently generates between $5 million to $10 million per quarter, with plans to expand its use among customers [58]