NYSE$DDD

3D Systems Corp. · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported a decrease in revenue due to macroeconomic and geopolitical headwinds, offset by gross margin and EBITDA improvements.

3D Systems reported a 6.4% decrease in revenue compared to the same period last year, primarily due to lower sales in the dental orthodontics market. However, the company saw improvements in gross profit margin and Adjusted EBITDA, driven by operational efficiencies and favorable mix. A restructuring plan is underway to reduce operating costs and drive internal efficiencies.

  • Revenue decreased by 6.4% to $123.79 million compared to the same period last year.
  • Healthcare Solutions revenue decreased by 18.3% to $52.429 million, while Industrial Solutions revenue increased by 4.9% to $71.362 million.
  • Gross profit margin increased to 44.7% compared to 39.8% in the same period last year.
  • Net loss attributable to 3D Systems Corporation decreased by $25.694 million to a loss of $11.704 million.

Headline financials

Total Revenue

$124M

Previous: $132M-6.4%
EPS (adj)

$0.01

Previous: -$0.05+120.0%
Gross Profit Margin

44.7%

No prior period
Non-GAAP Gross Margin

44.8%

No prior period
Adjusted EBITDA

$4.73M

No prior period
Capital Expenditures

-$21M

Previous: -$17.1M-23.1%
Free Cash Flow

-$32.7M

Previous: -$54.5M+40.0%
Net Income

-$11.7M

Previous: -$37.4M+68.7%
Operating Income

-$13.6M

Previous: -$33.7M+59.7%
Gross Profit

$55.4M

Previous: $52.7M+5.1%
Cash & Equivalents

$446M

Previous: $341M+30.5%
Total Assets

$1.39B

Previous: $1.43B-2.7%
R&D Expense

$22M

No prior period
Stock-Based Comp

-$3.14M

Previous: $11.4M-127.4%

Revenue & EPS history

3D Systems · Revenue · Quarterly

$124M

Q3 2023-6.4%vs Q3 2022
Beat estimate in 4 of 14 quarters(29%)
ActualEstimate

Revenue by segment

3D Systems · $124M total across 2 segments · Q3 2023

  • Industrial Solutions
    $71.4M
  • Healthcare Solutions
    $52.4M

Forward guidance

The company expects headwinds from the macroeconomic environment to continue into 2024 but anticipates challenges will abate over the short to medium term. A restructuring plan is expected to deliver roughly $50 million of savings by the end of 2024.

Tailwinds

  • Inflation beginning to show signs of moderation
  • Continuing positive indications of interest in the adoption of additive manufacturing
  • Restructuring plan will deliver roughly $50 million of savings by the end of 2024
  • On a path to release a record number of new products in 2024
  • Progress in Regenerative Medicine offers another chapter to the company's growth story

Headwinds

  • Increasing headwinds from the current macroeconomic and geopolitical environment
  • Inflation taking a toll on consumer discretionary spending
  • Increasingly conservative stance by customers on new manufacturing capital investments
  • Experienced sharp declines in dental orthodontics business
  • Experienced decline in new production printer sales

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

-2.5%

Avg return

Earnings day

-3.7%

Avg return

5 days after

-0.9%

Avg return

30 days after

38%

25 / 65 earnings

Positive

+34.5%

Q2 2018

Best reaction

-27.8%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.2%+21.9%+16.6%
Q4 2025-1.9%+23.5%-2.0%
Q3 2025-0.8%-13.4%-17.6%
Q1 2025-27.8%-32.5%-31.8%
Q4 2024-21.0%-23.9%-28.7%
Q3 2024-14.0%-13.4%+1.2%
Q2 2024-7.0%-17.0%+25.7%
Q1 2024+0.0%+1.5%+1.2%
Q4 2023-22.2%-18.2%-14.1%
Q3 2023-1.9%-0.7%+40.3%
Q2 2023-12.0%-11.3%-34.8%
Q1 2023-9.4%-10.1%+8.8%
Q4 2022+10.2%+12.9%+1.0%
Q3 2022+4.6%+28.3%+21.8%
Q2 2022-10.7%-1.7%-24.0%
Q1 2022-7.9%-6.0%-0.5%
Q4 2021-1.0%-16.2%-2.2%
Q3 2021-10.3%-20.7%-27.2%
Q2 2021+24.5%+9.0%+12.3%
Q1 2021+25.1%+16.2%+55.4%
Q4 2020-13.0%-36.2%-30.3%
Q3 2020+5.6%+23.7%+77.0%
Q2 2020-8.3%-9.4%-20.9%
Q1 2020-10.4%-11.2%-2.6%
Q4 2019-8.1%-10.1%-30.0%
Q3 2019+8.3%+11.1%-3.1%
Q2 2019-14.3%-13.6%-8.9%
Q1 2019-22.2%-21.2%-23.3%
Q4 2018-14.7%-18.0%-24.4%
Q3 2018-22.7%-17.3%-20.2%
Q2 2018+34.5%+48.9%+39.9%
Q1 2018-10.5%-3.4%+19.7%
Q4 2017+7.0%+0.3%-0.7%
Q3 2017-20.1%-23.9%-25.3%
Q2 2017-21.6%-24.1%-24.8%
Q1 2017-1.5%+16.4%+26.6%
Q4 2016-10.9%-14.2%-12.5%
Q3 2016-4.7%+3.7%+3.6%
Q2 2016+17.1%+26.1%+22.5%
Q1 2016-9.3%
Q4 2015+9.4%
Q3 2015+0.1%
Q2 2015+14.7%
Q1 2015-8.6%
Q4 2014+1.5%
Q3 2014+0.4%
Q2 2014-14.5%
Q1 2014-3.9%
Q4 2013+0.3%
Q3 2013+6.9%
Q2 2013-6.5%
Q1 2013+5.3%
Q4 2012-7.5%
Q3 2012+18.8%
Q2 2012+9.6%
Q1 2011+3.6%
Q1 2012+3.6%
Q4 2009+15.4%
Q4 2011+15.4%
Q1 2010+15.4%
Q3 2011-16.3%
Q3 2010-16.3%
Q2 2011-2.7%
Q2 2010-2.7%
Q4 2010-2.7%

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