3D Systems announces strong Q2 2021 results, share price surges
August 11, 2021
3D Systems, Rock Hill, South Carolina, USA, has reported its financial results for the second quarter ended June 30, 2021. Revenue reached $162.6 million, an increase of 44.1% for the second quarter of 2021 compared to the same period last year of $112.8 million. The results triggered a surge in the company’s share price, closing 21% higher on the day of the announcement.
Revenue from the company’s Healthcare business segment increased 68.6% to $82.8 million, compared to the same period last year, and increased 14.2% compared to last quarter. This increase from last quarter included double digit growth in medical applications, as well as strong demand for dental materials. Compared to the same period last year, Industrial sales increased 25.3% to $79.7 million, and increased 49.6% when excluding businesses divested in 2020 and 2021. Compared to the last quarter, Industrial sales increased 8.3% with solid demand in both products and materials.
Gross profit margin in the second quarter of 2021 was 42.4% compared to 31.2% in the same period last year. Operating expenses increased 14.5% to $79.1 million in the second quarter of 2021, compared to the same period a year ago, primarily as a result of expenses related to stock compensation including bonuses.
“In our second quarter last year we were in the rapidly-tightening grip of the COVID pandemic, with virtually no visibility into the magnitude or duration of the impact on our company,” commented Dr Jeffrey Graves, president and CEO, 3D Systems.
“It was into this tumultuous environment that we launched our four-phase transformation plan: reorganise into Healthcare and Industrial business units, restructure to gain operating efficiencies, divest non-core assets and then invest for the future. Today, after perhaps the most challenging 12 months that any of us has experienced, our world has changed for the better in several ways. Not only is the global economy rebounding, but Additive Manufacturing is being implemented at an increasing rate in production as companies seek a more capable and flexible supply chain for critical components.”
“From a divestment standpoint, we have announced the sale of both our On-Demand Parts business, which focused on the rapid production of components using a multitude of digital manufacturing methods, and Simbionix, a medical simulation business,” he continued.
“We are pleased to confirm that these transactions complete our efforts to exit non-core businesses, enabling our entire focus and investment priority to be on additive manufacturing moving forward. Once completed, we believe the sale of these assets, combined with our cash generation from operations will leave us with a very strong balance sheet, with roughly $500 million in cash and no debt. We believe our consistent performance, and our balance sheet, positions us well for future investment in our core business.”
Consistent with prior guidance, on a non-GAAP basis, 3D Systems states that it expects 2021 gross profit margins to be between 40% and 44%.
Dr Graves concluded, “We are excited about the tremendous progress we have made this past year, reinforcing our foundation in Additive Manufacturing and positioning ourselves for a very exciting future.”
