Proto Labs, Inc. Reports Q3 2024 Financial Results

Proto Labs, Inc., a leading provider of digital manufacturing services, has released its financial results for the third quarter of 2024. The company reported a total revenue of $126 million, with GAAP earnings per share (EPS) of $0.29 and non-GAAP EPS of $0.47.

Financial Highlights

For the third quarter of 2024, Proto Labs reported:

• Revenue of $125.6 million, a 3.9% decrease from $130.7 million in Q3 2023.
• Net income of $7.2 million, or $0.29 per diluted share, compared to $8.0 million, or $0.31 per diluted share, in Q3 2023.
• Non-GAAP net income of $11.8 million, or $0.47 per diluted share, compared to $13.2 million, or $0.51 per diluted share, in Q3 2023.
• EBITDA of $17.5 million, or 13.9% of revenue.
• Adjusted EBITDA of $21.9 million, or 17.4% of revenue, compared to $23.9 million, or 18.3% of revenue, in Q3 2023.

Business and Operational Highlights

Proto Labs served 22,511 customer contacts during the quarter, with revenue per customer contact decreasing 1.5% year-over-year to $5,580. Year-to-date, revenue per customer contact is up 4.7%. The company's gross margin was 45.6% of revenue, slightly up from 45.4% in Q3 2023. Non-GAAP gross margin was 46.2%, compared to 46.0% in the same period last year.

Strategic Initiatives and Corporate Developments

Proto Labs' disciplined approach and resilient business model have driven solid financial results despite challenges in the manufacturing sector. The company has reorganized its internal structure to better position itself for long-term growth and value creation. Additionally, the business generated its highest quarterly operating cash flow since 2020, before the acquisition of 3D Hubs.

Management's Perspective

Rob Bodor, President and CEO, stated, "Our disciplined approach and resilient business model drove solid financial results in the third quarter, despite continued dynamic challenges in the manufacturing sector. We remain committed to accelerating our growth and increasing value for our shareholders."

Dan Schumacher, CFO, added, "In the third quarter, our business generated its highest quarterly operating cash flow since 2020—before the acquisition of 3D Hubs. This is a testament to the profitability of Protolabs' model against any macro backdrop."

Future Outlook

For the fourth quarter of 2024, Proto Labs expects to generate revenue between $115 million and $123 million. The company anticipates diluted net income per share between $0.10 and $0.18, and non-GAAP diluted net income per share between $0.28 and $0.36.

SEC Filing: Proto Labs Inc [ PRLB ] - 8-K - Nov. 01, 2024