3D SYSTEMS CORP false 0000910638 0000910638 2024-02-27 2024-02-27

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 27, 2024

 

 

3D SYSTEMS CORPORATION

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   001-34220   95-4431352

(State or Other Jurisdiction of

Incorporation)

 

(Commission

File Number)

 

(I.R.S. Employer

Identification No.)

333 Three D Systems Circle

Rock Hill, South Carolina 29730

(Address of Principal Executive Offices) (Zip Code)

(803) 326-3900

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange

on which registered

Common stock, par value $0.001 per share   DDD   New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 


Item 2.02.

Results of Operations and Financial Condition.

On February 27, 2024, 3D Systems Corporation (the “Company”) issued a press release announcing the Company’s unaudited results of operations for the fourth quarter and year ended December 31, 2023 (the “Press Release”). A copy of the Press Release is furnished herewith as Exhibit 99.1 and is incorporated into this Item 2.02 by reference. The information in this Item 2.02 (and in the Press Release) shall not be deemed “filed” with the Securities and Exchange Commission (the “SEC”) for purposes of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor incorporated by reference in any registration statement filed by the Company under the Securities Act of 1933, as amended (the “Securities Act”).

 

Item 7.01.

Regulation FD Disclosure.

Included in the Press Release is the Company’s announcement of a delay of the release of its audited financial results for the year ended December 31, 2023 and the filing of its Annual Report on Form 10-K for the fiscal year ended December 31, 2023. Also included in the Press Release is an announcement that the Company plans to hold a conference call and webcast at 8:30 a.m., Eastern Time, on Wednesday, February 28, 2024, to discuss its anticipated fourth quarter and year ended December 31, 2023 financial results and other matters relating to the Company’s plans and operations. A copy of the Press Release, which contains additional information regarding how to access the conference call and webcast and how to listen to a recorded playback of the call after it is completed, is furnished herewith as Exhibit 99.1 and is incorporated into this Item 7.01 by reference. The slides to be presented on the webcast are furnished herewith as Exhibit 99.2 and incorporated into this Item 7.01 by reference.

The information in this Item 7.01 (and in the Press Release and slides) shall not be deemed “filed” with the SEC for purposes of the Exchange Act, nor incorporated by reference in any registration statement filed by the Company under the Securities Act.

 

Item 9.01.

Financial Statements and Exhibits.

(d) Exhibits.

 

99.1    Press Release issued by 3D Systems Corporation, dated February 27, 2024.
99.2    Investor information to be presented by 3D Systems Corporation on February 28, 2024.
104    Cover Page Interactive Data File (embedded within Inline XBRL document).


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

    3D SYSTEMS CORPORATION
Date: February 28, 2024     By:  

/s/ Jeffrey A. Creech

      Jeffrey A. Creech
      Executive Vice President and Chief Financial Officer

EXHIBIT 99.1

3D Systems Reports

Fourth Quarter and Full Year 2023 Financial Results

(Unaudited)

ROCK HILL, South Carolina - February 27, 2024 - 3D Systems Corporation (NYSE:DDD) announced today its financial results for the fourth quarter and full year ended December 31, 2023.

Fourth Quarter Financial Results (Unaudited)

(All numbers are unaudited and are presented in thousands, except per share amounts or otherwise noted)

 

   

Q4 2023 revenue of $114,848 decreased 13.5% compared to Q4 2022 due to significant softness in dental orthodontics and depressed printer sales from delayed customer capex investments

 

   

Q4 2023 gross profit margin of 40.4% and Non-GAAP gross profit margin(1) of 41.9%. Non-GAAP gross profit margin represents an increase from prior year primarily driven by product mix

 

   

Q4 2023 Net loss of $300,412, diluted loss per share of $2.30, primarily driven by the non-cash impairment of goodwill and other intangible assets, and Non-GAAP diluted loss per share(1) was $0.11

 

   

Q4 2023 Adjusted EBITDA(1) decreased by $7,452 to a loss of $12,260, primarily driven by lower revenue and an increase in operating expenses associated with investments in Regenerative Medicine and a short-term increase in consulting and outside services expenses

Full Year 2023 Financial Results (Unaudited)

(All numbers are unaudited and are presented in thousands, except per share amounts or otherwise noted)

 

   

2023 revenue of $488,069 decreased 9.3% compared to 2022 revenue of $538,031, primarily driven by the exceptional softness in dental orthodontics and slower printer hardware sales

 

   

2023 gross profit margin of 40.7% increased from 2022 gross profit margin of 39.8%. 2023 Non-GAAP gross profit margin(1) of 41.1% increased from 2022 Non-GAAP gross profit margin of 39.8%, primarily driven by improved operational efficiencies and favorable mix

 

   

2023 net loss of $370,432, diluted loss per share of $2.85, primarily driven in large part by the non-cash impairment of goodwill and other intangible assets, and Non-GAAP diluted loss per share(1) was $0.26

 

   

2023 Adjusted EBITDA(1) decreased by $18,744 to a loss of $24,525, primarily driven by lower revenue and an increase in operating expenses associated with investments in Regenerative Medicine and an increase in consulting and outside services expenses

 

   

In December 2023, the company repurchased $135,130 of its Convertible Senior Notes (“Convertible Notes”) for $100,614 including transaction expenses, opportunistically reducing its outstanding debt by nearly 30% at a substantial discount to par-value

 

   

Cash and cash equivalents of $331,525 position the company well for support of restructuring and efficiency initiatives, as well as continuity in key growth investments


Unaudited    Quarter Ended December 31,     Year Ended December 31,  
(in thousands, expect per share data)    2023     2022     2023     2022  

Revenue

   $ 114,848     $ 132,732     $ 488,069     $ 538,031  

Gross profit margin

   $ 46,348     $ 54,630     $ 198,812     $ 214,233  

Operating loss

   $ (335,594   $ (28,044   $ (414,303   $ (117,019

Net loss attributable to 3D Systems Corporation

   $ (300,412   $ (25,553   $ (370,432   $ (122,711

Diluted loss per share

   $ (2.30   $ (0.20   $ (2.85   $ (0.96

Non-GAAP measures for year-over-year comparisons (1)

 

     

Non-GAAP gross profit margin

     41.9     40.9     41.1     39.8

Adjusted EBITDA

   $ (12,260   $ (4,808   $ (24,525   $ (5,781

Non-GAAP diluted loss per share

   $ (0.11   $ (0.06   $ (0.26   $ (0.23

 

(1)

See “Presentation of Information in this Press Release” below for a description, and the Appendix for the reconciliation of non-GAAP measurements to the most closely comparable GAAP measure.

Summary Comments on Results

Commenting on 2023 results and the outlook for 2024, Dr. Jeffrey Graves, president and CEO of 3D Systems said, “Our fourth quarter revenue results reflect the significant headwinds created by ongoing macroeconomic and geopolitical volatility. As we exited the third quarter, we had expected some of these broader pressures to moderate through year-end, as historical seasonality of increased consumption and year-end customer capex spending would typically translate to an acceleration of revenues in the fourth quarter. While customer-driven pre-sales activities did accelerate as expected in the quarter, the same cannot be said for revenue. Fortunately, based upon customer feedback, we view this as a market timing issue rather than any permanent trend in customer adoption rates for additive manufacturing, or a loss of market share for 3D Systems.”

“Reflecting on 2023 in its entirety, the most influential driver to our revenue performance was our dental orthodontic product line, with revenues declining 39% from 2022 levels and essentially cut in half from their peak in 2021. However, adding to the pressure from this market was a sluggishness broadly in capex spending on new production capacity by both our Healthcare and Industrial customers. These combined effects resulted in a significant revenue headwind for 2023. In response to this softness, we’ve undertaken a comprehensive restructuring initiative to reduce costs, improve margins through greater efficiencies, and keep the company solidly on a path for sustained profitability and positive operating cash flow. The rise in gross margins, even in the face of declining volumes in 2023, is an early indicator of these efficiency improvements, which we expect to continue throughout 2024.” 

“It is important to note that we are different from others in the additive manufacturing industry in that we have the broadest range of technology platforms, which we bring to market through two focused business units, Healthcare and Industrial Solutions. These platforms span metals, polymers and biologics, and, by necessity, require deep expertise in hardware, software and materials development. This technology foundation, in which we have been heavily investing for the last two years, along with industry-leading


operational scale and an outstanding global reach, give us an ability to continue taking cost out of our business while preserving the critical investments needed to support the exciting growth opportunities we see ahead. Our goal is to balance short-term profitability and cash performance in 2024, with the need to ensure continuity in essential R&D investments for growth. This balance is critical for two reasons. First, risks remain in the world economic outlook, which could continue to impact sales in the short term. However, offsetting this pressure are a number of very targeted key-customer applications we expect to bring to market over the next 12-18 months. Fortunately, to execute these restructuring and investment plans, we have a strong balance sheet with over $300 million in cash, and 0% interest debt that is not due until late 2026. This gives us an ability to thoughtfully restructure the business to drive profitability and cash performance, while supporting key customer-driven development programs that we believe will add meaningfully to our top line revenues in the years ahead.”

Dr. Graves concluded, “Given the continuing risks we see to the world economy, we expect moderating but continued sales pressures, which we are translating into relatively flat top line revenue expectations for the year. Given this, we will prioritize completion of our previously announced restructuring program, which includes headcount reductions, significant site consolidations and a reduction in external spending. We believe these efforts, which will largely be completed by mid-year, will favorably impact both COGS and OPEX, further improve gross margins, and deliver positive adjusted-EBITDA performance and operating cash flow for the full year. In parallel, we will continue our most important development programs that are now, after over two years of increased R&D investment, beginning to yield exciting results. We expect these new additive solutions to materially change the way products are designed and manufactured and healthcare is delivered. We believe the path forward is very clear. In the short term, we will manage our costs to deliver improving margins and cash performance in the face of economic uncertainty. As these clouds then lift, the opportunities for growth in our industry remain incredibly bright. We believe that this focus on our strategic initiatives will harmonize the ability to deliver sustainable profitability this year, while preserving the exceptional opportunities we have to deliver long-term shareholder value in the years ahead.”


Summary of Fourth Quarter Results (Unaudited)

Revenue for the fourth quarter of 2023 decreased 13.5% to $114,848 compared to the same period last year, and revenue on a constant currency basis decreased 14.7%. The decline of revenue primarily reflects lower sales to certain dental orthodontic market customers and lower printer sales more broadly throughout the remaining portfolio due to macroeconomic factors that are negatively impacting demand.

Healthcare Solutions revenue decreased 15.7% to $51,188 compared to the prior year period, and revenue on a constant currency basis decreased 16.4% year over year.

Industrial Solutions revenue decreased 11.6% to $63,660 compared to the prior year period, and revenue on a constant currency basis decreased 13.3% year over year.

Gross profit margin for the fourth quarter of 2023 was 40.4% compared to 41.2% in the same period last year. Non-GAAP gross profit margin was 41.9% compared to 40.9% in the same period last year and increased primarily due to favorable mix.

Net loss attributable to 3D Systems Corporation increased by $274,859 to a loss of $300,412 in the fourth quarter of 2023 compared to the same period in the prior year. The increase in net loss attributable to 3D Systems Corporation primarily reflects $297,689 related to the impairment of goodwill and other intangible assets.

Adjusted EBITDA decreased by $7,452 to a loss of $12,260 in the fourth quarter of 2023 compared to the same period last year primarily driven by lower revenue and an increase in operating expenses associated with investments in Regenerative Medicine and an increase in short-term consulting and outside services expenses.

Summary of Full-Year 2023 Results (Unaudited)

Revenue for 2023 of $488,069 decreased 9.3% compared to the prior year. Revenue on a constant currency basis decreased 9.6%. The decline in revenue primarily reflects lower sales to certain dental orthodontic market customers due to macroeconomic factors that are negatively impacting demand.

Healthcare Solutions revenue decreased 18.3% to $213,216, compared to the prior year, and revenue on a constant currency basis decreased 18.6% year over year.

Industrial Solutions revenue decreased 0.8% to $274,853 compared to the prior year, and revenue on a constant currency basis decreased 1.1% year over year.

Gross profit margin for the full year 2023 was 40.7% compared to 39.8% in the prior year. Non-GAAP gross profit margin was 41.1% for the full year 2023 compared to 39.8% in the prior year. Gross profit margin increased primarily driven by improved operational efficiencies and favorable mix.

Net loss attributable to 3D Systems Corporation for the full year 2023 increased by $247,721 to a loss of $370,432 compared to the prior year. The increase in net loss attributable to 3D Systems Corporation primarily reflects an impairment of goodwill and other intangible assets, lower revenue and an increase in operating expenses associated with investments in our Regenerative Medicine business and an increase in consulting and outside services expenses.

Adjusted EBITDA decreased by $18,744 to a loss of $24,525 in 2023 compared to last year primarily driven by the unfavorable impact of lower volumes from dental orthodontics markets and an increase in operating expenses associated with investments in Regenerative Medicine and an increase in consulting and outside services expenses.


2024 Outlook

The company is providing full-year 2024 financial guidance as follows:

 

Revenue:

   $475 - $505 million

Non-GAAP Gross Profit Margin:

   42% - 44%

Non-GAAP Operating Expense:

   $223 - $238 million 

Adjusted EBITDA:

   Break even or better

Financial Liquidity (Unaudited)

At December 31, 2023, cash and cash equivalents and short-term investments totaled $331,525 and decreased $237,212 since December 31, 2022. This decrease resulted primarily from the repurchase of our Convertible Notes of $100,614, cash used in operations of $80,671, acquisitions and other investments, net of cash acquired, of $29,152, capital expenditures of $27,183, and taxes paid related to net-share settlement of equity awards of $5,211, offset by a $3,492 effect of exchange rate changes on cash, cash equivalents and restricted cash. At December 31, 2023, the company had total debt, net of deferred financing costs of $319,356.

Status of Audit; Delayed Form 10-K Filing

The unaudited financial data above remains subject to audit as the company continues its close process. Accordingly, actual results may differ from the anticipated results shown above.

3D Systems will delay the filing of its Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and file a Form 12b-25, Notification of Late Filing, with the Securities and Exchange Commission, which extends the deadline to file the Form 10-K. The delay in filing is primarily due to additional time required by the company to complete its financial reporting close procedures. It has no impact on the company’s operations or on its ability to discuss its anticipated 2023 results and 2024 outlook.

Q4 and FY 2023 Conference Call and Webcast

The company will host a conference call and simultaneous webcast to discuss these results on February 28, 2024, which may be accessed as follows:

Date: Wednesday, February 28, 2024

Time: 8:30 a.m. Eastern Time

Listen via webcast: www.3dsystems.com/investor

Participate via telephone: 201-689-8345


A replay of the webcast will be available approximately two hours after the live presentation at www.3dsystems.com/investor.

Forward-Looking Statements

Certain statements made in this release that are not statements of historical or current facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to be materially different from historical results or from any future results or projections expressed or implied by such forward-looking statements. In many cases, forward looking statements can be identified by terms such as “believes,” “belief,” “expects,” “may,” “will,” “estimates,” “intends,” “anticipates” or “plans” or the negative of these terms or other comparable terminology. Forward-looking statements are based upon management’s beliefs, assumptions and current expectations and may include comments as to the company’s beliefs and expectations as to future events and trends affecting its business and are necessarily subject to uncertainties, many of which are outside the control of the company. The factors described under the headings “Forward-Looking Statements” and “Risk Factors” in the company’s periodic filings with the Securities and Exchange Commission, as well as other factors, could cause actual results to differ materially from those reflected or predicted in forward-looking statements. Although management believes that the expectations reflected in the forward-looking statements are reasonable, forward-looking statements are not, and should not be relied upon as a guarantee of future performance or results, nor will they necessarily prove to be accurate indications of the times at which such performance or results will be achieved. The forward-looking statements included are made only as the date of the statement. 3D Systems undertakes no obligation to update or revise any forward-looking statements made by management or on its behalf, whether as a result of future developments, subsequent events or circumstances or otherwise, except as required by law.

Presentation of Information in this Press Release

3D Systems reports its financial results in accordance with GAAP. Management also reviews and reports certain non-GAAP measures, including: non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP diluted income (loss) per share, and Adjusted EBITDA. These non-GAAP measures exclude certain items that management does not view as part of 3D Systems’ core results as they may be highly variable, may be unusual or infrequent, are difficult to predict and can distort underlying business trends and results. Management believes that the non-GAAP measures provide useful additional insight into underlying business trends and results and provide meaningful information regarding the comparison of period-over-period results. Additionally, management uses the non-GAAP measures for planning, forecasting and evaluating business and financial performance, including allocating resources and evaluating results relative to employee compensation targets. 3D Systems’ non-GAAP measures are not calculated in accordance with or as required by GAAP and may not be calculated in the same manner as similarly titled measures used by other companies. These non-GAAP measures should thus be considered as supplemental in nature and not considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP.


To calculate the non-GAAP measures, 3D Systems excludes the impact of the following items:

 

   

amortization of intangible assets, a non-cash expense, as 3D Systems’ intangible assets were primarily acquired in connection with business combinations;

 

   

costs incurred in connection with acquisitions and divestitures, such as legal, consulting and advisory fees;

 

   

stock-based compensation expenses, a non-cash expense;

 

   

charges related to restructuring and cost optimization plans, impairment charges, including goodwill, and divestiture gains or losses;

 

   

certain compensation expense related to the 2021 Volumetric acquisition; and

 

   

costs, including legal fees, related to significant or unusual litigation matters.

Amortization of intangibles and acquisition and divestiture-related costs are excluded from non-GAAP measures as the timing and magnitude of business combination transactions are not predictable, can vary significantly from period to period and the purchase price allocated to amortizable intangible assets and the related amortization period are unique to each acquisition. Amortization of intangible assets will recur in future periods until such intangible assets have been fully amortized. While intangible assets contribute to the company’s revenue generation, the amortization of intangible assets does not directly relate to the sale of the company’s products or services. Additionally, intangible assets amortization expense typically fluctuates based on the size and timing of the company’s acquisition activity. Accordingly, the company believes excluding the amortization of intangible assets enhances the company’s and investors’ ability to compare the company’s past financial performance with its current performance and to analyze underlying business performance and trends. Although stock-based compensation is a key incentive offered to certain of our employees, the expense is non-cash in nature, and we continue to evaluate our business performance excluding stock-based compensation; therefore, it is excluded from non-GAAP measures. Stock-based compensation expenses will recur in future periods. Charges related to restructuring and cost optimization plans, impairment charges, including goodwill, divestiture gains or losses, and the costs, including legal fees, related to significant or unusual litigation matters are excluded from non-GAAP measures as the frequency and magnitude of these activities may vary widely from period to period. Additionally, impairment charges, including goodwill, are non-cash. Furthermore, the company believes the costs, including legal fees, related to significant or unusual litigation matters are not indicative of our core business’ operations. Finally, 3D Systems excludes contingent consideration recorded as compensation expense related to the 2021 Volumetric acquisition from non-GAAP measures as management evaluates financial performance excluding this expense, which is viewed by management as similar to acquisition consideration.

The matters discussed above are tax effected, as applicable, in calculating non-GAAP diluted income (loss) per share.

Adjusted EBITDA, defined as net income, plus income tax (provision) benefit, interest and other income (expense), net, stock-based compensation expense, amortization of intangible assets, depreciation expense, and other non-GAAP adjustments, all as described above, is used by management to evaluate performance and helps measure financial performance period-over-period.

A reconciliation of GAAP to non-GAAP financial measures is provided in the accompanying schedules.

3D Systems does not provide forward-looking guidance for certain measures on a GAAP basis. The company is unable to provide a quantitative reconciliation of forward-looking non-GAAP gross profit margin, Adjusted EBITDA, and non-GAAP operating expense to the most directly comparable forward-looking GAAP measures without unreasonable effort because certain items, including litigation costs, acquisition expenses, stock-based compensation expense, intangible assets amortization expense, restructuring expenses, and goodwill impairment charges are difficult to predict and estimate. These items are inherently uncertain and depend on various factors, many of which are beyond the company’s control, and as such, any associated estimate and its impact on GAAP performance could vary materially.


About 3D Systems

More than 35 years ago, 3D Systems brought the innovation of 3D printing to the manufacturing industry. Today, as the leading additive manufacturing solutions partner, we bring innovation, performance, and reliability to every interaction—empowering our customers to create products and business models never before possible. Thanks to our unique offering of hardware, software, materials and services, each application-specific solution is powered by the expertise of our application engineers who collaborate with customers to transform how they deliver their products and services. 3D Systems’ solutions address a variety of advanced applications in Healthcare and Industrial Solutions markets such as medical and dental, aerospace & defense, automotive and durable goods. More information on the company is available at www.3dsystems.com

Tables Follow


3D Systems Corporation

Unaudited Consolidated Balance Sheets

December 31, 2023 and December 31, 2022

 

(in thousands, except par value)    December 31,
2023
    December 31,
2022
 

ASSETS

    

Current assets:

    

Cash and cash equivalents

   $ 331,525     $ 388,134  

Short-term investments

     —        180,603  

Accounts receivable, net of reserves — $3,389 and $3,114

     102,104       93,886  

Inventories

     152,412       137,832  

Prepaid expenses and other current assets

     36,701       33,790  
  

 

 

   

 

 

 

Total current assets

     622,742       834,245  

Property and equipment, net

     64,461       58,072  

Intangible assets, net

     62,724       90,230  

Goodwill

     107,200       385,312  

Operating lease right-of-use assets

     58,406       39,502  

Finance lease right-of-use assets

     12,174       3,244  

Long-term deferred income tax assets

     4,230       7,038  

Other assets

     48,251       28,970  
  

 

 

   

 

 

 

Total assets

   $ 980,188     $ 1,446,613  
  

 

 

   

 

 

 

LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND EQUITY

    

Current liabilities:

    

Current operating lease liabilities

   $ 9,924     $ 8,343  

Accounts payable

     49,757       53,826  

Accrued and other liabilities

     46,631       56,264  

Customer deposits

     8,206       6,911  

Deferred revenue

     30,448       26,464  
  

 

 

   

 

 

 

Total current liabilities

     144,966       151,808  

Long-term debt, net of deferred financing costs

     319,356       449,510  

Long-term operating lease liabilities

     56,795       38,499  

Long-term deferred income tax liabilities

     5,162       7,631  

Other liabilities

     33,399       47,461  
  

 

 

   

 

 

 

Total liabilities

     559,678       694,909  

Commitments and contingencies (Note 23)

    

Redeemable non-controlling interest

     2,006       1,760  

Stockholders’ equity:

    

Common stock, $0.001 par value, authorized 220,000 shares; shares issued 133,619 and 131,207 as of December 31, 2023 and 2022, respectively

     134       131  

Additional paid-in capital

     1,577,382       1,547,597  

Accumulated deficit

     (1,114,394     (743,962

Accumulated other comprehensive loss

     (44,618     (53,822
  

 

 

   

 

 

 

Total stockholders’ equity

     418,504       749,944  
  

 

 

   

 

 

 

Total liabilities, redeemable non-controlling interest and stockholders’ equity

   $ 980,188     $ 1,446,613  
  

 

 

   

 

 

 


3D Systems Corporation

Unaudited Consolidated Statements of Operations

Year Ended December 31, 2023, 2022 and 2021

 

     Year Ended December 31,  
(in thousands, except per share amounts)    2023     2022     2021  

Revenue:

      

Products

   $ 328,731     $ 395,396     $ 428,742  

Services

     159,338       142,635       186,897  
  

 

 

   

 

 

   

 

 

 

Total revenue

     488,069       538,031       615,639  

Cost of sales:

      

Products

     200,616       237,386       245,169  

Services

     88,641       86,412       106,692  
  

 

 

   

 

 

   

 

 

 

Total cost of sales

     289,257       323,798       351,861  
  

 

 

   

 

 

   

 

 

 

Gross profit

     198,812       214,233       263,778  

Operating expenses:

      

Selling, general and administrative

     212,101       244,181       227,697  

Research and development

     89,728       87,071       69,150  

Impairments of goodwill and intangible assets

     311,286       —        —   
  

 

 

   

 

 

   

 

 

 

Total operating expenses

     613,115       331,252       296,847  

Loss from operations

     (414,303     (117,019     (33,069

Interest and other income (expense), net

     44,362       (3,790     352,609  
  

 

 

   

 

 

   

 

 

 

(Loss) income before income taxes

     (369,941     (120,809     319,540  

Benefit (provision) for income taxes

     526       (2,140     2,512  

Loss on equity method investment, net of income taxes

     (1,282     —        —   
  

 

 

   

 

 

   

 

 

 

Net (loss) income before redeemable non-controlling interest

     (370,697     (122,949     322,052  

Less: net loss attributable to redeemable non-controlling interest

     (265     (238     —   
  

 

 

   

 

 

   

 

 

 

Net (loss) income attributable to 3D Systems Corporation

   $ (370,432   $ (122,711   $ 322,052  
  

 

 

   

 

 

   

 

 

 

Net (loss) income per common share

      

Basic

   $ (2.85   $ (0.96   $ 2.62  
  

 

 

   

 

 

   

 

 

 

Diluted

   $ (2.85   $ (0.96   $ 2.55  
  

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding:

      

Basic

     129,944       127,818       122,867  
  

 

 

   

 

 

   

 

 

 

Diluted

     129,944       127,818       126,334  
  

 

 

   

 

 

   

 

 

 


3D Systems Corporation

Unaudited Consolidated Statements of Operations

Three Months Ended December 31, 2023, 2022 and 2021

 

     Three Months Ended December 31,  
(in thousands, except per share amounts)    2023     2022     2021  

Revenue:

      

Products

   $ 74,763     $ 94,734     $ 117,572  

Services

     40,085       37,998       33,298  
  

 

 

   

 

 

   

 

 

 

Total revenue

     114,848       132,732       150,870  

Cost of sales:

      

Products

     47,174       55,541       64,918  

Services

     21,326       22,561       19,734  
  

 

 

   

 

 

   

 

 

 

Total cost of sales

     68,500       78,102       84,652  
  

 

 

   

 

 

   

 

 

 

Gross profit

     46,348       54,630       66,218  

Operating expenses:

      

Selling, general and administrative

     61,478       58,783       50,897  

Research and development

     22,775       23,891       19,163  

Impairments of goodwill and intangible assets

     297,689       —        —   
  

 

 

   

 

 

   

 

 

 

Total operating expenses

     381,942       82,674       70,060  

Loss from operations

     (335,594     (28,044     (3,842

Interest and other income (expense), net

     34,671       1,666       (1,787
  

 

 

   

 

 

   

 

 

 

Loss before income taxes

     (300,923     (26,378     (5,629

Benefit (provision) for income taxes

     930       771       (571

Loss on equity method investment, net of income taxes

     (535     —        —   
  

 

 

   

 

 

   

 

 

 

Net loss before redeemable non-controlling interest

     (300,528     (25,607     (6,200

Less: net loss attributable to redeemable non-controlling interest

     (116     (54     —   
  

 

 

   

 

 

   

 

 

 

Net loss attributable to 3D Systems Corporation

   $ (300,412   $ (25,553   $ (6,200
  

 

 

   

 

 

   

 

 

 

Net loss per share available to 3D Systems Corporation common stockholders

      

Basic

   $ (2.30   $ (0.20   $ (0.05
  

 

 

   

 

 

   

 

 

 

Diluted

   $ (2.30   $ (0.20   $ (0.05
  

 

 

   

 

 

   

 

 

 


3D Systems Corporation

Unaudited Consolidated Statements of Cash Flows

 

     Year Ended
December 31,
 
(in thousands)    2023     2022     2021  

Cash flows from operating activities:

      

Net (loss) income before redeemable non-controlling interest

   $ (370,697   $ (122,949   $ 322,052  

Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:

      

Depreciation, amortization and accretion of debt discount

     36,053       38,686       34,623  

Stock-based compensation

     23,367       42,415       55,153  

Loss on short-term investments

     6       3,146       —   

Non-cash operating lease expense

     9,267       6,366       5,681  

Provision for inventory obsolescence and revaluation

     6,350       2,586       (2,909

Loss on hedge accounting de-designation and termination

     —        —        721  

Provision for bad debts

     595       562       232  

Loss (gain) on the disposition of businesses, property, equipment and other assets

     6       104       (350,846

Gain on debt extinguishment

     (32,181     —        —   

Provision for deferred income taxes and reserve adjustments

     (2,412     (2,518     (11,679

Loss on equity method investment

     1,282       —        —   

Impairments of assets

     313,204       4,095       1,676  

Changes in operating accounts:

      

Accounts receivable

     (6,793     8,144       (11,912

Inventories

     (20,779     (51,082     7,866  

Prepaid expenses and other current assets

     (2,049     8,229       (8,106

Accounts payable

     (5,526     (3,787     27,159  

Deferred revenue and customer deposits

     1,852       (6,947     (3,325

Accrued and other liabilities

     (15,744     10,702       (12,389

All other operating activities

     (16,472     (7,773     (5,850
  

 

 

   

 

 

   

 

 

 

Net cash (used in) provided by operating activities

     (80,671     (70,021     48,147  
  

 

 

   

 

 

   

 

 

 

Cash flows from investing activities:

      

Purchases of property and equipment

     (27,183     (20,907     (18,791

Purchases of short-term investments

     —        (384,388     —   

Sales and maturities of short-term investments

     180,925       200,314       —   

Proceeds from sale of assets and businesses, net of cash sold

     194       325       421,485  

Acquisitions and other investments, net of cash acquired

     (29,152     (103,699     (139,685

Other investing activities

     —        —        (2,454
  

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) investing activities

     124,784       (308,355     260,555  
  

 

 

   

 

 

   

 

 

 

Cash flows from financing activities:

      

Proceeds from borrowings

     —        —        460,000  

Debt issuance costs

     —        —        (13,466

Repayment of borrowings/long-term debt

     (100,614     —        (21,392

Purchase of non-controlling interests

     —        (2,300     (6,300

Taxes paid related to net-share settlement of equity awards

     (5,211     (10,864     (12,619

Other financing activities

     (644     (651     (423
  

 

 

   

 

 

   

 

 

 

Net cash (used in) provided by financing activities

     (106,469     (13,815     405,800  
  

 

 

   

 

 

   

 

 

 

Effect of exchange rate changes on cash, cash equivalents and restricted cash

     3,492       (5,804     (9,243
  

 

 

   

 

 

   

 

 

 

Net (decrease) increase in cash, cash equivalents and restricted cash

     (58,864     (397,995     705,259  
  

 

 

   

 

 

   

 

 

 

Cash, cash equivalents and restricted cash at the beginning of the year a

     391,975       789,970       84,711  
  

 

 

   

 

 

   

 

 

 

Cash, cash equivalents and restricted cash at the end of the year a

   $ 333,111     $ 391,975     $ 789,970  
  

 

 

   

 

 

   

 

 

 

 

(a) 

The amounts for cash and cash equivalents shown above include restricted cash of $119, $114 and $313 as of December 31, 2023, 2022 and 2021, respectively, which are included in prepaid expenses and other current assets. In addition, included in cash and cash equivalents above as of December 31, 2023 and 2022 is 1,467 and $3,727 of restricted cash, which, is included in other non-current assets.

(b) 

Inventory is transferred to property and equipment at cost when we require additional machines for training or demonstration or for placement into on demand manufacturing services locations


Appendix

3D Systems Corporation

Unaudited Reconciliations of GAAP to Non-GAAP Measures

Three Months Ended December 31, 2023 and 2022.

Constant Currency Revenue (4)

 

     Three Months Ended December 31,     Constant Currency (1)  
(in thousands)    2023      2022      $ Change     % Change     FX Effect (2)      % Change (3)  

Healthcare Solutions

   $ 51,188      $ 60,694      $ (9,506     (15.7 )%    $ 454        (16.4 )% 

Industrial Solutions

     63,660        72,038        (8,378     (11.6 )%      1,196        (13.3 )% 
  

 

 

    

 

 

    

 

 

     

 

 

    

Total revenue

   $ 114,848      $ 132,732      $ (17,884     (13.5 )%    $ 1,650        (14.7 )% 
  

 

 

    

 

 

    

 

 

     

 

 

    

 

(1) 

To assist in the analysis of the Company’s revenue trends, the Company estimated the impact of foreign exchange on year-over-year revenue growth by recasting revenue for the three months ended December 31, 2023 by applying the foreign exchange rates used to translate 2022 non-US functional currency revenue to 2023 non-US functional currency revenue.

(2) 

Represents the estimated impact on “as reported” revenue due to changes in foreign currency exchange rates

(3) 

Represents the % increase or decrease in revenue excluding the estimated “FX effect”

(4) 

Amounts in table may not foot due to rounding

 

     Year Ended December 31,     Constant Currency (1)  
(in thousands)    2023      2022      $ Change     % Change     FX Effect (2)      % Change (3)  

Healthcare Solutions

   $ 213,216      $ 260,988      $ (47,772     (18.3 )%    $ 817        (18.6 )% 

Industrial Solutions

     274,853        277,043        (2,190     (0.8 )%      971        (1.1 )% 
  

 

 

    

 

 

    

 

 

     

 

 

    

Total revenue

   $ 488,069      $ 538,031      $ (49,962     (9.3 )%    $ 1,788        (9.6 )% 
  

 

 

    

 

 

    

 

 

     

 

 

    

 

(1) 

To assist in the analysis of the Company’s revenue trends, the Company estimated the impact of foreign exchange on year-over-year revenue growth by recasting revenue for the year ended December 31, 2023 by applying the foreign exchange rates used to translate 2022 non-US functional currency revenue to 2023 non-US functional currency revenue.

(2) 

Represents the estimated impact on “as reported” revenue due to changes in foreign currency exchange rates

(3) 

Represents the % increase or decrease in revenue excluding the estimated “FX effect”

(4) 

Amounts in table may not foot due to rounding

Gross Profit and Gross Profit Margin (1)

 

     Three Months Ended December 31,  
(in thousands)    2023     2022  
     Gross Profit      Gross Profit
Margin (2)
    Gross Profit      Gross Profit
Margin (2)
 

GAAP

   $ 46,348        40.4   $ 54,630        41.2

Amortization expense included in Cost of sales

     382          (398   

Restructuring expense included in Cost of sales

     1,427          —      
  

 

 

      

 

 

    

Non-GAAP

   $ 48,157        41.9   $ 54,232        40.9
  

 

 

      

 

 

    

 

(1) 

Amounts in table may not foot due to rounding

(2) 

Calculated as non-GAAP gross profit as a percentage of total revenue.

 

     Year Ended December 31,  
(in thousands)    2023     2022  
     Gross Profit      Gross Profit
Margin (2)
    Gross Profit      Gross Profit
Margin (2)
 

GAAP

   $ 198,812        40.7   $ 214,233        39.8

Amortization expense included in Cost of sales

     506          14     

Restructuring expense included in Cost of sales

     1,427          —      
  

 

 

      

 

 

    

Non-GAAP

   $ 200,745        41.1   $ 214,247        39.8
  

 

 

      

 

 

    

 

(1) 

Amounts in table may not foot due to rounding

(2) 

Calculated as non-GAAP gross profit as a percentage of total revenue.


Appendix

3D Systems Corporation

Unaudited Reconciliations of GAAP to Non-GAAP Measures

Three and Twelve Months Ended December 31, 2023 and 2022

Net Loss to Adjusted EBITDA (1)

 

     Three Months Ended December 31,     Year Ended December 31,  
(in thousands)    2023     2022     2023     2022  

Net loss attributable to 3D Systems Corporation

   $ (300,412   $ (25,553   $ (370,432   $ (122,711

Interest income, net

     (3,778     (2,522     (16,896     (6,541

(Benefit) provision for income taxes

     (930     (771     (526     2,140  

Depreciation expense

     5,656       5,104       21,346       21,096  

Amortization expense

     2,391       5,207       12,067       15,480  

Stock-based compensation expense

     8,224       10,980       23,367       42,489  

Acquisition and divestiture-related expense

     468       2,978       600       12,360  

Legal expense

     3,174       (1,418     8,053       19,062  

Restructuring expense

     4,774       381       11,487       733  

Redeemable non-controlling interest

     (116     (54     (265     (238

Loss (income) on equity method investment

     535       (90     1,282       (90

Goodwill and other assets impairment charges

     298,647       3       312,858       18  

Gain on repurchase of debt

     (32,181     —        (32,181     —   

Other non-operating (income) expense

     1,288       947       4,715       10,421  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ (12,260   $ (4,808   $ (24,525   $ (5,781
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)

Amounts in table may not foot due to rounding


Appendix

3D Systems Corporation

Unaudited Reconciliations of GAAP to Non-GAAP Measures

Three and Twelve Months Ended December 31, 2023 and 2022

Non-GAAP Diluted Loss per Share (1)(2)

 

     Three Months Ended December 31,     Year Ended December 31,  
(in dollars)    2023     2022     2023     2022  

Diluted loss per share

   $ (2.30   $ (0.20   $ (2.85   $ (0.96

Amortization expense

     0.02       0.04       0.09       0.12  

Stock-based compensation expense

     0.06       0.09       0.18       0.33  

Acquisition and divestiture-related expense

     —        0.02       —        0.10  

Legal expense

     0.02       (0.01     0.06       0.17  

Restructuring expense

     0.04       —        0.09       0.01  

Goodwill and other assets impairment charges

     2.30       —        2.42       —   

Gain on repurchase of debt

     (0.25     —        (0.25     —   
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP diluted loss per share

   $ (0.11   $ (0.06   $ (0.26   $ (0.23
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) 

Amounts in table may not foot due to rounding

(2) 

Amounts in table are stated per share

Exhibit 99.2 February 28, 2024 Fourth Quarter and Full Year 2023 Financial Results


Welcome and Participants Dr. Jeffrey Graves President & Chief Executive Officer Jeffrey Creech Executive Vice President & Chief Financial Officer Andrew Johnson Executive Vice President, Chief Corporate Development Officer & Chief Legal Officer Mick McCloskey Vice President, Treasury & Investor Relations To participate via phone, please dial: 1-201-689-8345 2


Forward Looking Statements Certain statements made in this presentation that are not statements of historical or current facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to be materially different from historical results or from any future results or projections expressed or implied by such forward-looking statements. In many cases, forward looking statements can be identified by terms such as “believes,” “belief,” “expects,” “may,” “will,” “estimates,” “intends,” “anticipates” or “plans” or the negative of these terms or other comparable terminology. Forward-looking statements are based upon management’s beliefs, assumptions and current expectations and may include comments as to the company’s beliefs and expectations as to future events and trends affecting its business and are necessarily subject to uncertainties, many of which are outside the control of the company. The factors described under the headings “Forward-Looking Statements” and “Risk Factors” in the company’s periodic filings with the Securities and Exchange Commission, as well as other factors, could cause actual results to differ materially from those reflected or predicted in forward-looking statements. Although management believes that the expectations reflected in the forward-looking statements are reasonable, forward-looking statements are not, and should not be relied upon as a guarantee of future performance or results, nor will they necessarily prove to be accurate indications of the times at which such performance or results will be achieved. The forward- looking statements included are made only as the date of the statement. 3D Systems undertakes no obligation to update or revise any forward-looking statements made by management or on its behalf, whether as a result of future developments, subsequent events or circumstances or otherwise, except as required by law Further, we encourage you to review “Risk Factors” in Part 1 of our Annual Report on Form 10-K and Part II of our Quarterly Reports on Form 10-Q filed with the SEC as well as other information about us in our filings with the SEC. These are available at www.SEC.gov. 3


Dr. Jeffrey Graves President & Chief Executive Officer 4


t e k r a M g n i t n Why Invest? $80B+ Why choose additive manufacturing (AM)? 1 2029 ✓ Design Flexibility ✓ Mass Customization ✓ Low Volume Parts ✓ Supply Chain Flexibility ~$15B 1 2021 Why 3D Systems? ✓ Unmatched combination of portfolio and scale ~21% ➢ Broadest range of technologies (metals, polymers, CAGR Over 2 Next 5-7 Years materials & software) ➢ One of the largest in the industry ✓ Strong balance sheet allows flexibility to react to short-term headwinds while continuing to invest in future growth 5 1 Based on Fortune Business Insights. 2 Average based on Fortune Business Insights, Grand View Research, Markets and Markets, Modor Research, and Wohlers Report. i r P D 3 l a b o l G


2023 in Review • Challenging 2023 for AM industry ▪ Significant FY’23 headwind in our dental orthodontics business, ~39% decline vs. FY’22 ▪ Challenging macroeconomic and uncertain geopolitical environment created headwinds for remaining businesses, particularly printer sales • Strong gross margin improvement ▪ Favorable mix and impact of optimization initiatives, such as in-sourcing manufacturing • Taking definitive measures to establish profitability ▪ Targeting to deliver break even or better Adj. EBITDA in flat revenue environment 6


Right-Sizing Cost, Preserving Mission-Critical Growth Strong balance sheet supports ability to better Reducing costs to navigate current Implemented restructuring establish sustainable environment – healthy initiative in response to profitability but not cash reserves and current revenue compromising on mission- expectation for working environment critical growth vectors for capital improvement, driven long-term horizon by inventory reductions in FY’24 We are responding to the current macro environment in order to thrive, not just survive 7


End-to-End Solutions to Address Orthopedic Device Market Applications throughout the human body CMF (Cranio-Maxillofacial) Spine Surgical Planning + Guides + Highest adoption of DMP 350 Implants technology for Titanium spine cages (~$2B) (~$10B) Targeted for Future Growth Hip & Knee Foot & Ankle DMP 350 Dual/Triple aggressively Surgical Planning + Guides + targeting Titanium, Cobalt Chrome Implants printing for large joints (~$4B) (~$20B) 8


Bright Future Ahead for Option 2 (2 slides) – I prefer the two slide Personalized Healthcare option. This image is very grainy. Where Personalized Healthcare delivered was this pulled from? double-digit full year revenue growth in 2023 Investing heavily to increase coverage into global markets as critical growth initiative Bullish on long-term growth opportunity; expect medical device business to triple revenue by 2030 9


Jetted Dentures Two unique materials Industry First Solution Enable production of superior monolithic dentures, combining beautiful aesthetics with outstanding performance, yielding a market-leading denture solution “The capabilities presented by the new jetted denture solution are unmatched in the industry. The combination of 3D Distinctive break-resistance Systems’ high-speed printing technology and its unique materials Ensures long product life, meeting a critical patient requirement deliver dentures with superior durability and aesthetics.” – Stephenie Goddard, CEO, Glidewell Expands addressable market New denture product family dramatically expands company’s addressable dental market, with denture demand estimated to exceed $2 billion by 2028 10


Industrial Metal Printing Innovation Semiconductor Capital Equipment, Shipbuilding, Aerospace & Defense • AM generating greater momentum in semiconductors, shipbuilding, aerospace and defense • Lower technical barriers to entry with proven solutions for many materials and applications • Parts consolidation enables accelerated time to market • Freedom of design facilitates improved performance • Continue to make important strides in helping to mitigate supply chain disruption 11


Building Momentum on a Historic Technology Roadmap ➢ Delivered 9 new products during 4Q’23 ➢ 5 new materials ➢ 3 printer upgrades ➢ 1 key accessory ➢ Recently shipped our first MJP300W and production ramp is ongoing ➢ Completed validation testing on SLS300, ramping production and shipments by 1H’24 ➢ On track for DMP 350 Triple ➢ Ongoing prototype validation testing for PSLA 270 12


Regenerative Medicine Initiative Human Organs Regenerative Tissue Program Drug Development Vascularized Breast Tissue Scaffold for Implantation & Cellularization Bioprinted “Organ-on-a-chip” Most Complex Object can accurately replicate organ-specific drug response in pre- Ever 3D Printed clinical drug trials 3D printed human lung scaffold ✓ 2 Lobes ✓ 5,000 kilometers of vasculature ✓ 213 Million Alveoli ✓ 44 Trillion Voxels h-VIOS chip 2 with perfused vasculature Investing to reflect the increasing maturation of our exciting new technology as we move from early-stage conceptual development toward commercial application…


Systemic Bio Simplifying the challenges in drug discovery 9 in 10 $2.6B 12 YEARS in development 1 2 DRUGS FAIL CLINICAL TRIALS 1 PER DRUG APPROVED FOR FDA APPROVAL • Wholly-owned subsidiary formed in 2022 • h-VIOS , proprietary organ- on-a-chip platform allows pharma companies to test their drug on cellularized chip that mimics response in human organs during trials • Closed contracts with 2 out of 4 of world’s largest pharma companies in FY’23, with 5,000– 10,000compounds 5-10 1 growing pipeline for future 3 3 3 Phase I Preclinical Approved Sciencedirect.com Nature.com FDA.gov 1 2 3


2024 Expectations ✓ Expect relatively flat FY’24 revenues given continued macro softness ✓ In-sourcing and restructuring initiatives provide a strong foundation for margins today…expect continued benefit going forward ✓ Expect breakeven or better Adj. EBTIDA in flat top-line environment 15


Jeffrey Creech Chief Financial Officer 16


Full Year Revenue Summary ($ in millions) ISG HSG Consolidated $261 $277 $275 $538 $213 $488 FY’22 FY’23 FY’22 FY’23 FY’22 FY’23 • HSG declined ~18% YoY driven by • ISG revenues declined ~1% YoY • YoY revenue declined ~9% primarily headwind in dental orthodontics driven by headwinds in dental largely impacted by lower printer business orthodontics business sales in tough macro backdrop • ~39% YoY decline in dental orthodontics • Tailwinds in Transportation, • Personalized Healthcare grew ~12% Aerospace & Defense and YoY Semiconductor offset by headwinds in Jewelry and other industrial markets 17


Q4 Revenue Summary ($ in millions) ISG HSG Consolidated $133 $72 $61 $115 $64 $51 Q4’22 Q4’23 Q4’22 Q4’23 Q4’22 Q4’23 • HSG declined ~16% YoY primarily • ISG revenues declined ~12% YoY, • YoY revenue declined ~14% due to decline in dental orthodontics primarily driven by headwinds in primarily driven by broader macro- business YoY from consumer dental orthodontics business & related weakness across industrial spending headwinds customers in printer sales broader macro-related softness in • Partial offset as Personalized printer sales Healthcare grew ~11% YoY • Partially offset by strong performing • Partially offset by Q4 growth in materials & services markets such as Aerospace & Defense and Semiconductors 18


Gross Profit Margin (Non-GAAP) Full Year Compare Fourth Quarter Compare +100 bps +130 bps Full Year Drivers 41.9% 41.1% 40.9% • Continued execution of cost 39.8% optimization efforts & favorable mix​ Fourth Quarter Drivers • Predominantly favorable mix FY'22 FY'23 Q4'22 Q4'23 19 See Appendix for a reconciliation of Non-GAAP Gross Profit Margin


Earnings (Non-GAAP) ($ in millions, except per share amounts) FY’22 FY’23 Change YoY YoY decline driven by lower revenues in Adj. EBITDA ($5.8) ($24.5) ($18.7) addition to: • Investments in Regenerative Medicine for future Non-GAAP growth Diluted loss ($0.23) ($0.26) ($0.03) • Higher than normal OpEx spend primarily in 4Q’23 per share o External support for YE audit and CFO transition Q4’22 Q4’23 Change YoY o IT cybersecurity transformation o Advisory & legal fees in association with debt Adj. EBITDA ($4.8) ($12.3) ($7.5) repurchase Non-GAAP FY’23 Non-GAAP earnings excludes ~$313 Diluted loss ($0.06) ($0.11) ($0.05) million non-cash expense associated with per share impairment & ~$32 million gain on debt repayment See Appendix for a reconciliation of Adjusted EBITDA. See Appendix for reconciliation of GAAP and Non-GAAP Diluted loss per share. 20


Strong Balance Sheet • Ended the quarter with $331.5 million of cash • Invested cash throughout FY’23 - working capital (e.g. in- sourcing manufacturing), acquisitions and other investments (Wematter, Theradapative) and CapEx for growth programs • Opportunistically repurchased ~$135 million of 2026 Convertible Notes at substantial discount for ~$100 million cash in December to strengthen balance sheet • Current focus is on operational execution to improve working capital and deliver sustainable profitability 21


2024 Outlook Additional Commentary Full Year 2024 Guidance • Expect current macroeconomic and uncertain geopolitical environment to continue impacting $475 – $505 million Revenue top-line • Mid-point of revenue essentially flat YoY, with Non-GAAP seasonally soft start for Q1’24, down QoQ & YoY 42% – 44% Gross Margin • Expect sequential improvement throughout FY’24 after Q1 Non-GAAP $223 - $238 million • Gross margin improvement resulting from in- OpEx sourcing and efficiency initiatives • Break even or better Adj. EBITDA driven by margin Adjusted Break even or better improvement and cost reductions EBITDA 22


Q&A Session 1-201-689-8345 23


Thank You Find out more at: www.3dsystems.com 24


Appendix ©2022 3D Systems, Inc. | All Rights Reserved.


Presentation of Information 3D Systems reports its financial results in accordance with GAAP. Management also reviews and reports certain non-GAAP measures, including: non-GAAP revenue excluding divestitures and on a constant currency basis (sometimes referred to as excluding divestitures and FX effects), non-GAAP Gross profit, non-GAAP Gross profit margin, non-GAAP Operating expenses, non-GAAP Operating (loss)/income, non-GAAP Interest and other income/(expense), net, non-GAAP Net income (loss), non-GAAP Basic and Diluted Income (Loss) per Share, adjusted EBITDA and adjusted EBITDA Margin. These non-GAAP measures exclude certain special items that management does not view as part of 3D Systems’ underlying results as they may be highly variable, may be unusual or infrequent, are difficult to predict and can distort underlying business trends and results. Management believes that the non-GAAP measures provide useful additional insight into underlying business trends and results and provide a more meaningful comparison of period-over-period results. Additionally, management uses the non-GAAP measures for planning, forecasting and evaluating business and financial performance, including allocating resources and evaluating results relative to employee compensation targets. 3D Systems’ non-GAAP measures are not calculated in accordance with or as required by GAAP and may not be calculated the same as similarly titled measures used by other companies. These non-GAAP measures should thus be considered as supplemental in nature and not considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. A reconciliation of GAAP to non-GAAP financial measures is provided in the accompanying schedules in the Appendix. 3D Systems does not provide forward-looking guidance for certain measures on a GAAP basis. The company is unable to provide a quantitative reconciliation of forward-looking non-GAAP gross profit margins and non-GAAP operating expenses to the most directly comparable forward-looking GAAP measures without unreasonable effort because certain items, including legal, acquisition expenses, stock-compensation expense, intangible amortization expense, restructuring expenses, and goodwill impairment, are difficult to predict and estimate. These items are inherently uncertain and depend on various factors, many of which are beyond the company’s control, and as such, any associated estimate and its impact on GAAP performance could vary materially. 26


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Document and Entity Information
Feb. 27, 2024
Cover [Abstract]  
Entity Registrant Name 3D SYSTEMS CORP
Amendment Flag false
Entity Central Index Key 0000910638
Document Type 8-K
Document Period End Date Feb. 27, 2024
Entity Incorporation State Country Code DE
Entity File Number 001-34220
Entity Tax Identification Number 95-4431352
Entity Address, Address Line One 333 Three D Systems Circle
Entity Address, City or Town Rock Hill
Entity Address, State or Province SC
Entity Address, Postal Zip Code 29730
City Area Code (803)
Local Phone Number 326-3900
Written Communications false
Soliciting Material false
Pre Commencement Tender Offer false
Pre Commencement Issuer Tender Offer false
Security 12b Title Common stock, par value $0.001 per share
Trading Symbol DDD
Security Exchange Name NYSE
Entity Emerging Growth Company false

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