3D Systems reports fall in revenue in 2023 full year results
March 5, 2024
3D Systems Corporation, Rock Hill, South Carolina, USA, has announced its financial results for the full year ended December 31, 2023. Revenue for the year was $488.07 million, a decrease of 9.3% compared to 2022 revenue of $538.03 million. The fall was attributed to the softness in dental orthodontics and slower AM machine hardware sales.
The gross profit margin for the year was 40.7%, an increase from the 39.8% of 2022. The non-GAAP gross profit margin was 41.1% increased from the 2022 non-GAAP gross profit margin of 39.8%, primarily driven by improved operational efficiencies and favourable mix. The 2023 Adjusted EBITDA decreased by $18.74 million to a loss of $24.53 million, primarily driven by lower revenue and an increase in consulting and outside services expenses.
In December 2023, the company repurchased $135.13 million of its Convertible Senior Notes (“Convertible Notes”) for $100.61 million including transaction expenses, opportunistically reducing its outstanding debt by nearly 30% at a substantial discount to par-value.
Cash and cash equivalents of $331.53 million position the company well for support of restructuring and efficiency initiatives, as well as continuity in key growth investments.
“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,” Dr Jeffrey Graves, president and CEO of 3D Systems stated. “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.”
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