3D Systems encouraged by revenue progress in second quarter
3D Systems Corporation, Rock Hill, South Carolina, USA, has announced its financial results for the second quarter ended June 30, 2024. Revenue for the second quarter of 2024 decreased 11.7% to $113.3 million, compared to the same period last year, primarily driven by lower machine sales and partially offset by growth in services.
“We are encouraged by the sequential revenue progress we delivered during the second quarter despite a challenging operating environment,” stated Dr Jeffrey Graves, president and CEO of 3D Systems. “Our top-line improved 10% quarter-over-quarter, reflecting strong performance by our Industrial and Healthcare markets for hardware, materials, and services. While our second-quarter revenue saw a year-over-year decline, this was primarily due to reduced printer sales to a specific dental customer and ongoing macroeconomic pressures on customer capital spending.”
”We remain optimistic about the future given our most recent sequential recovery and continued momentum in our robust customer pipeline. As a result, given our performance through the first half and current macroeconomic and geopolitical conditions, we are now targeting revenues for the full-year 2024 in the range of $450 million – $460 million, as we anticipate continued sequential revenue improvements in the third and fourth quarters,” added Graves.
Gross profit margin for the second quarter of 2024 was 41.6%, compared to 39.0% for the same period last year. Non-GAAP gross profit margin was 40.9%, compared to 38.8% for the same period last year. Gross profit margin increased primarily due to a favourable product mix, partially offset by unfavourable absorption associated with lower volumes.
Adjusted EBITDA decreased by $6.0 million to a loss of $12.9 million in the second quarter of 2024 compared to the same period last year. The decrease in Adjusted EBITDA primarily reflects lower total sales volume and an increase in operating expense.
“During the quarter, we continued to deliver gross margin improvements annually and sequentially, in spite of the year-over-year volume decline.” Dr Graves continued. “Looking forward, we believe our in-sourcing and restructuring actions, which have favourably impacted our cost-of-goods this year, will continue to drive gross margin expansion moving forward. Additionally, we are beginning to demonstrate steady improvement with respect to our operating expenses, which should accelerate in the second half of the year.”
“While conditions remain challenging in the near-term, we have taken considerable actions to de-risk our balance sheet since the end of 2023 and believe we are well-positioned with our critical R&D investments to capitalise on a very bright future ahead,” Dr Graves concluded.
