3D Systems sees Q3 2024 revenue drop, highlights materials growth and opportunities
November 25, 2024
3D Systems, Rock Hill, South Carolina, USA, has announced preliminary revenue results and provided a business update for third quarter 2024. During the Q3, the company expects revenues of approximately $112.9 million, a $10.9 million decrease from the third quarter of 2023 revenue of $123.8 million. The fall is driven primarily by a continuation of macroeconomic factors negatively impacting hardware systems, partially offset by strong materials growth. Additionally, third quarter revenues were negatively affected by customer delays in the closing of certain key transactions, which were not fully completed until early in the fourth quarter of 2024.
“As we review our third quarter performance, it’s clear that we are continuing to navigate through a challenging operating environment particularly related to new hardware systems sales,” stated Dr Jeffrey Graves, president and CEO of 3D Systems. “However, operations of our installed base, which is the largest in the world, remains very robust, driving strong materials utilisation. Revenue from consumable materials grew 10% compared to the third quarter of 2023, and 9% sequentially from second quarter levels. Top-line performance in our industrial markets reflects the timing shift of a few significant orders that subsequently closed early in the fourth quarter. In this regard, despite not recognising the benefit from these transactions in our third quarter results, we are encouraged by our strengthening opportunity pipeline and growing momentum in key markets, such as our Personalized Healthcare business, which delivered nearly 20% growth from the third quarter for the prior year.”
Dr Graves continued, “Having sustained our investment in R&D during this challenging period, we are making considerable progress across our technology roadmap, which is the broadest in the industry, with a strong focus on innovation and attainment of critical scale in markets we view as key to future profitable growth. By maintaining our core R&D and application development momentum, we have set the stage to capitalise on the pent-up demand we expect to see in the near future. Over the last few weeks, we’ve validated our industry prowess for key healthcare applications, securing FDA clearances for multi-material, monolithic jetted dentures, which are expected to drive exciting growth in our dental business, and the new TOTAL ANKLE Patient-Matched Guides to further expand our offerings in orthopedic surgical planning and execution. Next week, our industry leading portfolio will be on full display at Formnext, the largest global Additive Manufacturing conference of the year, showcasing a full suite of new printers and materials that continue to drive new applications in high criticality markets like medical devices, investment casting, energy, automotive, aerospace and defence.”
“We are executing against our previously announced restructuring plans to support a rigid framework to drive operational efficiency and cost reduction, while preserving critical R&D to lead the future of the Additive Manufacturing industry. Many of these actions are positively impacting our business, in line with our operating expense expectations for the quarter, and serve as the foundation for improvement going forward. We are diligently focused on continuing to reduce operating expenses and manage working capital to drive sustainable profitability, cash generation and enhanced shareholder value in the quarters ahead,” Dr Graves concluded.
