3D Systems (DDD) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $113.3 million, up 10.1% sequentially but down 11.7% year-over-year, mainly due to lower printer sales, partially offset by services growth.

• Net loss for Q2 2024 was $27.3 million, nearly flat year-over-year, with diluted loss per share of $0.21 and Non-GAAP diluted loss per share of $0.14, including $2 million in audit-related fees.

• Gross profit margin improved to 41.6% in Q2 2024 from 39.0% in Q2 2023, driven by favorable product mix.

• Adjusted EBITDA was negative $12.9 million in Q2 2024, reflecting lower sales and higher operating expenses, mainly from audit-related costs.

• The company secured the largest contract in its history, a $250 million five-year dental aligner supply agreement, and achieved FDA clearance for 3D printed PEEK cranial implants.

Financial highlights

• Q2 2024 revenue: $113.3 million (down 11.7% year-over-year, up 10.1% sequentially); first half 2024 revenue: $216.2 million (down 13.3% year-over-year).

• Gross profit margin: 41.6% in Q2 2024 (Non-GAAP: 40.9%), up from 39.0% (Non-GAAP: 38.9%) in Q2 2023.

• Adjusted EBITDA: -$12.9 million in Q2 2024, -$20.1 million in Q1 2024.

• Cash and cash equivalents at June 30, 2024: $192.7 million, down $138.8 million since year-end 2023.

• Non-GAAP loss per share: $0.17 in Q1 and $0.14 in Q2 2024.

Outlook and guidance

• Full-year 2024 revenue is projected at $450–$460 million, with non-GAAP gross margins of 40–42%.

• Full-year OpEx is expected to be $248–$253 million, with Q4 adjusted EBITDA approaching breakeven and Q4 non-GAAP OpEx targeted below $60 million.

• Sequential mid-single-digit revenue growth is anticipated in Q3 and Q4.

• Gross margins are expected to strengthen as printer volumes recover.

• Restructuring plan is expected to yield $45–$55 million in annualized cost savings when completed.