3D Systems reports double-digit revenue growth in Q3 2021
November 26, 2021
3D Systems, Rock Hill, South Carolina, USA, has announced its third quarter 2021 financial results. The company reported revenue in the quarter of $156.1 million, up 15% compared to the same period last year. Adjusted for divestitures, revenue was 36% higher and some 21% higher than pre-pandemic Q13 2019. when excluding businesses divested in 2020 and 2021.
The results were said to reflect ongoing strength in the company’s Industrial division, which posted revenue growth of 4% compared to the same period last year, at $79.7 million.
Revenue for the company’s Healthcare segment increased 28% to $76.4 million, compared to the same period last year. Adjusted for divestitures, healthcare revenue increased 45% year-over-year, as 3D Systems reported high demand for dental applications, both AM machines and materials.
Gross profit margin in the third quarter of 2021 was 41% compared to 43% in the same period last year. Operating expenses decreased 35% to $81.5 million in the third quarter of 2021, compared to the same period a year ago, primarily as a result of an impairment to goodwill recorded in the third quarter 2020.
“In the third quarter last year, we experienced the beginnings of a recovery from the depths of the COVID-19 pandemic,” commented Dr Jeffrey Graves, 3D Systems president and Chief Executive Officer. “Businesses were opening up, and customers were returning. A year later, global economies are much stronger. We still see continued challenges with COVID-19, and new challenges around supply chains, but thanks to the great work by our team here at 3D Systems, we are pleased to report another strong quarter of double-digit growth as compared to the same period in both 2020 and pre-pandemic 2019, adjusted for divestitures. While we were delivering these results through our core portfolio of business, we also completed our divestitures of non-core assets and began the transition to a strategic growth phase.”
“Our focus during this phase is investing in significant opportunities that we believe will drive high-margin recurring revenue, as evidenced by our acquisition in the software space of Oqton, and the hiring of a new Chief Scientist to further advance our technology development,” he continued. “Investments in software, products platforms, and regenerative medicine complement an existing business portfolio that generated $20.7 million in cash from operations during the third quarter to bolster a balance sheet that boasted $503 million of cash, ready to support additional growth.”
Updating prior guidance, on a non-GAAP basis the company expects 2021 gross profit margins to be between 41% and 43%.
Dr Graves concluded, “I couldn’t be more pleased with our performance this quarter, both organic and inorganic. We will continue to focus investment in areas that we believe solve customers’ complex needs, drive adoption of Additive Manufacturing, and generate high margin, recurring revenue streams.”
