3D Systems reports solid start to 2023

May 19, 2023

3D Systems, Rock Hill, South Carolina, USA, has announced its financial results for the first quarter of 2023 ending March 31. The company reported revenue of $121.2 million a decrease of 8.8% compared to the same period last year, or 6.5% on a constant currency basis.

“We are off to a solid start in 2023, and believe we are well-positioned to execute on our full-year revenue and profitability plans for this year,” stated Dr Jeffrey Graves, president and CEO. “As expected, we saw a return to our historical seasonality performance this year, with first quarter 2023 revenues mirroring the percentage of full-year performance we experienced in 2021. At a more detailed level, first quarter revenues were driven in part by continued softness in our dental orthodontic market, which we attribute to reported sluggishness in consumer discretionary spending, in combination with pre-planned customer inventory reduction efforts. We expect these effects to moderate to some extent in the second half of the year.”

Subscribe to our weekly newsletter
Sign up

Healthcare Solutions revenue decreased 24.3% to $48.7 million compared to the same period last year. Healthcare Solutions revenue on a constant currency basis decreased 23.4% year over year, reportedly due to continued softness in its dental orthodontic market, which was down 46.2% versus the same period last year.

The Q1 2023 revenue from non-dental markets increased, however, by 12.3% on a constant currency basis compared to Q1 2022. Healthcare Solutions revenue from non-dental markets increased 22.4% on a constant currency basis, versus the same period last year.

Graves continued, “Off-setting this weakness, our other major end-markets remained robust, driven by continued adoption of Additive Manufacturing in production environments in the US and Europe. These effects were seen in the medical markets, where our personalised health service and increasing focus on point-of-care solutions continues to fuel robust growth rates, in excess of 20%.”

Similarly, Industrial Solutions revenue increased 5.6% to $72.5 million compared to the same period last year. Industrial Solutions, revenue on a constant currency basis increased 9.3% year over year. “Industrial markets also remained strong, including commercial rocketry and aerospace propulsion, industrial products, and consumer goods, all of which contributed to strong organic revenue growth rates of over 9%,” shared Graves.

Additionally, gross profit margin in the first quarter of 2023 was 38.8% compared to 40.4% in the same period last year. Non-GAAP gross profit margin was 39.0% compared to 40.6% in the same period last year. 3D Systems reported that gross profit margin decreased primarily due to input cost inflation and unfavourable product mix.

Adjusted EBITDA decreased by $12 million to a loss of $10 million in the first quarter of 2023 compared to the same period last year. The decrease in Adjusted EBITDA reportedly primarily reflects lower total sales volume, inflationary impacts on input costs, and continued investments in future growth.

Graves concluded, “In support of our commitment to generate positive Adjusted EBITDA and free cash flow, we have expanded on our restructuring efforts that we announced a couple months ago to realise even more cost benefits, as announced in a separate release today. As a result, we are increasing our full-year 2023 expectation to deliver $2 million or better in Adjusted EBITDA, while maintaining the previously announced outlook for revenue, non-GAAP gross profit margin and breakeven or better free cash flow.”


Download Metal AM magazine

About Metal Additive Manufacturing magazine

Metal AM magazine, published quarterly in digital and print formats, is read by a rapidly expanding international audience.

Our audience includes component manufacturers, end-users, materials and equipment suppliers, analysts, researchers and more.

In addition to providing extensive industry news coverage, Metal AM magazine is known for exclusive, in-depth articles and technical reports.

Our focus is the entire metal AM process from design to application.

Each issue is available as an easy-to-navigate digital edition and a high-quality print publication.

In the latest issue of Metal AM magazine

Download PDF

Extensive AM industry news coverage, as well as the following exclusive deep-dive articles:

  • Metal powders in Additive Manufacturing: An exploration of sustainable production, usage and recycling
  • Inside Wayland Additive: How innovation in electron beam PBF is opening new markets for AM
  • An end-to-end production case study: Leveraging data-driven machine learning and autonomous process control in AM
  • Consolidation, competition, and the cost of certification: Insight from New York’s AM Strategies 2024
  • Scandium’s impact on the Additive Manufacturing of aluminium alloys
  • AM for medical implants: An analysis of the impact of powder reuse in Powder Bed Fusion

The world of metal AM to your inbox

Don't miss any new issue of Metal AM magazine, and get the latest industry news. Sign up to our twice weekly newsletter.

Sign up

Looking for AM machines, metal powders or part manufacturing services?

Discover suppliers of these and more in our comprehensive advertisers’ index and buyer’s guide, available in the back of Metal AM magazine.

  • AM machines
  • Process monitoring & calibration
  • Heat treatment & sintering
  • HIP systems & services
  • Pre- & post-processing technology
  • Powders, powder production and analysis
  • Part manufacturers
  • Consulting, training & market data
View online

Discover our magazine archive…

The free to access Metal Additive Manufacturing magazine archive offers unparalleled insight into the world of metal Additive Manufacturing from a commercial and technological perspective through:

  • Reports on visits to leading metal AM part manufacturers and industry suppliers
  • Articles on technology and application trends
  • Information on materials developments
  • Reviews of key technical presentations from the international conference circuit
  • International industry news

All past issues are available to download as free PDFs or view in your browser.

Browse the archive

Share via
Copy link
Powered by Social Snap