false 0001443669 0001443669 2022-08-05 2022-08-05

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

 

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

 

PURSUANT TO SECTION 13 OR 15(d) OF

 

THE SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported): August 5, 2022

 

 

Proto Labs, Inc.

 

(Exact name of registrant as specified in its charter)

 

 

Minnesota		001-35435		41-1939628
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification Number)

 

 

5540 Pioneer Creek Drive Maple Plain, Minnesota		55359
(Address of principal executive offices)		(Zip Code)
Registrant’s telephone number, including area code:		(763) 479-3680

 

 

Not Applicable

(Former name or former address, if changed since last report)

 

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, Par Value $0.001 Per Share	PRLB	New York Stock Exchange

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

☐

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

☐

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

 

Emerging growth company  ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

 

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Item 2.02.

Results of Operations and Financial Condition.

 

On August 5, 2022, Proto Labs, Inc. issued a press release announcing its second quarter 2022 financial results. A copy of the press release is furnished as Exhibit 99.1 to this report and incorporated herein by reference.

 

Item 9.01.

Financial Statements and Exhibits.

 

(d) Exhibits

 

99.1	Press release of Proto Labs, Inc. dated August 5, 2022
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

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SIGNATURE

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

		Proto Labs, Inc.
Date:	August 5, 2022	By:	/s/ Daniel Schumacher
			Daniel Schumacher
			Chief Financial Officer

 

 

 

 

Exhibit 99.1

 

 

Protolabs Reports Financial Results for the Second Quarter of 2022

 

Record Revenue of $126.9 million in the Second Quarter of 2022;

GAAP Earnings Per Share of $0.09, Non-GAAP Earnings Per Share of $0.46

 

MAPLE PLAIN, Minn. – August 5, 2022 – Proto Labs, Inc. ("Protolabs" or "the company") (NYSE: PRLB), the world’s leading provider of digital manufacturing services, today announced financial results for the second quarter ended June 30, 2022.

 

Second Quarter 2022 Highlights include:

 

●

Revenue for the second quarter of 2022 was $126.9 million, representing a 3.1 percent increase compared to revenue of $123.0 million in the second quarter of 2021.

●

Hubs generated $11.3 million of revenue in the second quarter, representing year-over-year growth of 26.3 percent.

●

On a GAAP basis, costs related to the closure of Japan operations were $5.2 million in the quarter. These costs have been excluded from our Non-GAAP results. See “Non-GAAP Financial Measures” below.

●

Net income was $2.6 million, or $0.09 per diluted share.

●

Non-GAAP net income was $12.8 million, or $0.46 per diluted share.

 

“Protolabs performed well in the quarter amid continuing supply chain challenges in the broader manufacturing industry and macroeconomic growth concerns,” said Rob Bodor, President and Chief Executive Officer. “We continue to make progress on our 2022 strategic priorities and are focused to execute on the integration of Protolabs and Hubs, bringing together two leading digital manufacturing offers to create the most comprehensive digital manufacturing offer to serve our customers.”

 

Additional Second Quarter 2022 Highlights include:

 

●

Protolabs served 24,058 unique product developers during the second quarter of 2022.

●

Gross margin was 45.2 percent of revenue, compared to 44.9 percent of revenue in the first quarter of 2022.

●

Non-GAAP gross margin was 45.9 percent of revenue, compared to 45.7 percent of revenue in the first quarter of 2022.

●

EBITDA was $15.1 million, or 11.9 percent of revenue.

●

Adjusted EBITDA was $24.6 million, or 19.4 percent of revenue.

●

Cash and investments balance was $110.1 million as of June 30, 2022.

 

“We are pleased with the sequential improvements in our margins in the second quarter,” said Dan Schumacher, Chief Financial Officer. “We continue to focus on executing our strategy through disciplined investments and cost controls while delivering value to our customers and profitable growth to our shareholders.”

 

 

Non-GAAP Financial Measures

 

The company has included non-GAAP revenue growth by region and by service line that excludes the impact of changes in foreign currency exchange rates and revenue earned from our acquisition of Hubs (collectively, “non-GAAP revenue growth”). Management believes these metrics are useful in evaluating the underlying business trends and ongoing operating performance of the company.

 

The company has included earnings before interest, taxes, depreciation and amortization (“EBITDA”) and EBITDA, adjusted for stock-based compensation expense, unrealized (gain) loss on foreign currency, costs related to the Japan closure activities and transaction costs (collectively, “Adjusted EBITDA”), in this press release to provide investors with additional information regarding the company’s financial results. The company has also included earnings before interest, taxes, depreciation and amortization margin (“EBITDA margin”) and EBITDA margin, adjusted for stock-based compensation expense, unrealized (gain) loss on foreign currency, costs related to the Japan closure activities and transaction costs (collectively, “Adjusted EBITDA margin”), in this press release to provide investors with additional information regarding the company’s financial results.

 

The company has included non-GAAP gross margin, adjusted for stock-based compensation expense and amortization expense, in this press release to provide investors with additional information regarding the company’s financial results.

 

The company has included non-GAAP operating margin, adjusted for stock-based compensation expense, amortization expense, costs related to the Japan closure activities and transaction costs (collectively, “non-GAAP operating margin”), in this press release to provide investors with additional information regarding the company’s financial results.

 

The company has included non-GAAP gross margin excluding Japan, adjusted for stock-based compensation expense and amortization expense in this press release to provide investors with additional information regarding the company’s financial results. The company has included non-GAAP operating margin excluding Japan, adjusted for stock-based compensation expense, amortization expense, costs related to the Japan closure activities and transaction costs (collectively, “non-GAAP operating margin excluding Japan”), in this press release to provide investors with additional information regarding the company’s financial results.

 

The company has included non-GAAP net income, adjusted for stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency, costs related to Japan closure activities and transaction costs (collectively, “non-GAAP net income”), in this press release to provide investors with additional information regarding the company’s financial results.

 

The company has provided below reconciliations of GAAP to non-GAAP net income, non-GAAP gross margin, non-GAAP gross margin excluding Japan, non-GAAP operating margin, non-GAAP operating margin excluding Japan, non-GAAP revenue growth by region and by service, and Adjusted EBITDA and Adjusted EBITDA margin, to the most directly comparable measures calculated and presented in accordance with GAAP. These non-GAAP measures are used by the company’s management and board of directors to understand and evaluate operating performance and trends and provide useful measures for period-to-period comparisons of the company’s business. Accordingly, the company believes that these non-GAAP measures provide useful information to investors and others in understanding and evaluating operating results in the same manner as our management and board of directors.

 

 

Conference Call

 

The company has scheduled a conference call to discuss its second quarter 2022 financial results and third quarter 2022 outlook today, August 5, 2022, at 8:30 a.m. EDT. To access the call in the U.S. please dial 877-709-8150 or outside the U.S. dial 201-689-8354 at least five minutes prior to the 8:30 a.m. EDT start time. No participant code is required. A simultaneous webcast of the call and accompanying presentation will be available via the investor relations section of the Protolabs website and the following link: https://edge.media-server.com/mmc/p/bfhv9mwu. A replay will be available for 14 days following the call on the investor relations section of the Protolabs website.

 

About Protolabs

 

Protolabs is the world’s leading provider of digital manufacturing services. The e-commerce-based company offers injection molding, CNC machining, 3D printing, and sheet metal fabrication to product developers, engineers, and supply chain teams across the globe. Protolabs serves customers using in-house production capabilities that bring unprecedented speed in tandem with Hubs, a Protolabs Company, which serves customers through its network of premium manufacturing partners. Together, they help companies bring new ideas to market with the fastest and most comprehensive digital manufacturing service in the world. Visit protolabs.com for more information.

 

Forward-Looking Statements

 

Statements contained in this press release regarding matters that are not historical or current facts are “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors which may cause the results of Protolabs to be materially different than those expressed or implied in such statements. Certain of these risk factors and others are described in the “Risk Factors” section within reports filed with the SEC. Other unknown or unpredictable factors also could have material adverse effects on Protolabs’ future results. The forward-looking statements included in this press release are made only as of the date hereof. Protolabs cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, Protolabs expressly disclaims any intent or obligation to update any forward-looking statements to reflect subsequent events or circumstances.

 

Source: Proto Labs, Inc.

 

Investor Relations Contact

Protolabs

Ryan Johnsrud, 612-225-4873

Manager – Investor Relations and FP&A

ryan.johnsrud@protolabs.com

 

Media Contact

Protolabs

Brent Renneke, 763-479-7704

PR & Media Strategist

brent.renneke@protolabs.com

 

 

Proto Labs, Inc.

Condensed Consolidated Balance Sheets

(In thousands)

 

		June 30,				December 31,
		2022				2021
		(Unaudited)
Assets
Current assets
Cash and cash equivalents		$	54,666			$	65,929
Short-term marketable securities			24,379				11,580
Accounts receivable, net			82,469				80,051
Inventory			15,051				13,161
Income taxes receivable			2,627				1,321
Prepaid expenses and other current assets			11,484				11,450
Total current assets			190,676				183,492
Property and equipment, net			260,631				280,346
Goodwill			390,354				400,610
Other intangible assets, net			34,026				37,998
Long-term marketable securities			31,068				14,340
Operating lease assets			4,037				5,578
Finance lease assets			1,649				1,898
Long-term assets held for sale			1,985				-
Other long-term assets			4,223				4,320
Total assets		$	918,649			$	928,582
Liabilities and shareholders' equity
Current liabilities
Accounts payable		$	15,642			$	25,364
Accrued compensation			16,687				13,704
Accrued liabilities and other			24,011				11,980
Current operating lease liabilities			2,140				3,298
Current finance lease liabilities			436				550
Total current liabilities			58,916				54,896
Long-term operating lease liabilities			1,886				2,245
Long-term finance lease liabilities			1,188				1,351
Long-term deferred tax liabilities			30,177				35,892
Other long-term liabilities			5,784				5,705
Shareholders' equity			820,698				828,493
Total liabilities and shareholders' equity		$	918,649			$	928,582

 

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Proto Labs, Inc.

Condensed Consolidated Statements of Operations

(In thousands, except share and per share amounts)

(Unaudited)

 

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2022				2021				2022				2021
Revenue
Injection Molding		$	53,355			$	58,168			$	106,753			$	114,527
CNC Machining			48,222				41,592				94,320				78,295
3D Printing			19,963				18,170				39,635				35,405
Sheet Metal			5,160				4,717				9,847				9,936
Other			202				401				515				1,011
Total revenue			126,902				123,048				251,070				239,174
Cost of revenue			69,480				66,423				137,844				127,219
Gross profit			57,422				56,625				113,226				111,955
Operating expenses
Marketing and sales			21,055				21,044				41,641				40,524
Research and development			9,450				11,060				20,007				23,241
General and administrative			16,522				8,417				33,293				27,825
Closure of Japan business			5,194				-				5,194				-
Total operating expenses			52,221				40,521				100,135				91,590
Income from operations			5,201				16,104				13,091				20,365
Other income (loss), net			1				137				(299	)			(176	)
Income before income taxes			5,202				16,241				12,792				20,189
Provision for income taxes			2,645				3,326				5,140				3,562
Net income		$	2,557			$	12,915			$	7,652			$	16,627
Net income per share:
Basic		$	0.09			$	0.47			$	0.28			$	0.60
Diluted		$	0.09			$	0.47			$	0.28			$	0.60
Shares used to compute net income per share:
Basic			27,530,739				27,735,732				27,515,583				27,600,684
Diluted			27,536,823				27,744,870				27,524,019				27,741,464

 

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Proto Labs, Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

		Six Months Ended
		June 30,
		2022				2021
Operating activities
Net income		$	7,652			$	16,627
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			20,274				20,127
Stock-based compensation expense			8,428				10,561
Deferred taxes			(5,653	)			419
Changes in fair value of contingent consideration			-				(7,763	)
Impairments related to closure of Japan business			1,792				-
Other			32				269
Changes in operating assets and liabilities			(1,485	)			(19,511	)
Net cash provided by operating activities			31,040				20,729
Investing activities
Purchases of property, equipment and other capital assets			(6,030	)			(23,929	)
Cash used for acquisitions, net of cash acquired			-				(127,413	)
Purchases of marketable securities			(38,882	)			(15,159	)
Proceeds from sales of marketable securities			1,000				47,694
Proceeds from call redemptions and maturities of marketable securities			7,396				13,725
Net cash used in investing activities			(36,516	)			(105,082	)
Financing activities
Proceeds from exercises of stock options and other			2,311				3,838
Purchases of shares withheld for tax obligations			(1,615	)			(4,209	)
Repurchases of common stock			(5,239	)			(1,210	)
Principal repayments of finance lease obligations			(278	)			(275	)
Net cash used in financing activities			(4,821	)			(1,856	)
Effect of exchange rate changes on cash and cash equivalents			(966	)			515
Net decrease in cash and cash equivalents			(11,263	)			(85,694	)
Cash and cash equivalents, beginning of period			65,929				127,603
Cash and cash equivalents, end of period		$	54,666			$	41,909

 

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Proto Labs, Inc.

Reconciliation of GAAP to Non-GAAP Net Income per Share

(In thousands, except share and per share amounts)

(Unaudited)

 

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2022				2021				2022				2021
Non-GAAP net income, adjusted for stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency, costs related to Japan closure activities and transaction costs
GAAP net income		$	2,557			$	12,915			$	7,652			$	16,627
Add back:
Stock-based compensation expense			4,031				4,941				8,428				10,561
Amortization expense			1,527				1,490				3,072				3,033
Unrealized (gain) loss on foreign currency			271				(402	)			360				220
Costs related to Japan closure activities			5,194				-				5,194				-
Transaction costs 1			-				(7,655	)			-				(5,140	)
Total adjustments 2			11,023				(1,626	)			17,054				8,674
Income tax benefits on adjustments 3			(776	)			(575	)			(1,458	)			(3,576	)
Non-GAAP net income		$	12,804			$	10,714			$	23,248			$	21,725
Non-GAAP net income per share:
Basic		$	0.47			$	0.39			$	0.84			$	0.79
Diluted		$	0.46			$	0.39			$	0.84			$	0.78
Shares used to compute non-GAAP net income per share:
Basic			27,530,739				27,735,732				27,515,583				27,600,684
Diluted			27,536,823				27,744,870				27,524,019				27,741,464

 

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¹ Transaction costs include direct costs incurred in the Company's acquisition of Hubs, Inc. and the impact of changes in the fair value of acquisition-related contingent consideration obligations.

² Stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency, costs related to Japan closure activities and transaction costs were included in the following GAAP consolidated statement of operations categories:

 

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2022				2021				2022				2021
Cost of revenue		$	870			$	1,011			$	1,799			$	1,988
Marketing and sales			813				929				1,550				1,782
Research and development			471				744				1,100				1,368
General and administrative			3,404				(3,908	)			7,051				3,316
Closure of Japan business			5,194				-				5,194				-
Total operating expenses			9,882				(2,235	)			14,895				6,466
Other (income) expense, net			271				(402	)			360				220
Total adjustments		$	11,023			$	(1,626	)		$	17,054			$	8,674

 

³ For the three- and six-month periods ended June 30, 2022 and 2021, income tax effects were calculated using the effective tax rate for the relevant jurisdictions. The Company's non-GAAP tax rates differ from its GAAP tax rates due primarily to the mix of activity incurred in domestic and foreign tax jurisdictions and removing effective tax rate benefits from stock-based compensation activity in the quarter.

 

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Proto Labs, Inc.

Reconciliation of GAAP to Non-GAAP Gross Margin

(In thousands)

(Unaudited)

 

		Three Months Ended								Six Months Ended								Three Months Ended
		June 30,								June 30,								March 31,
		2022				2021				2022				2021				2022				2021
Revenue		$	126,902			$	123,048			$	251,070			$	239,174			$	124,168			$	116,126
Gross Profit			57,422				56,625				113,226				111,955				55,804				55,330
GAAP gross margin			45.2	%			46.0	%			45.1	%			46.8	%			44.9	%			47.6	%
Add back:
Stock-based compensation expense			528				668				1,115				1,303				587				635
Amortization expense			342				343				684				685				342				342
Total adjustments			870				1,011				1,799				1,988				929				977
Non-GAAP gross profit		$	58,292			$	57,636			$	115,025			$	113,943			$	56,733			$	56,307
Non-GAAP gross margin			45.9	%			46.8	%			45.8	%			47.6	%			45.7	%			48.5	%

 

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Proto Labs, Inc.

Reconciliation of GAAP to Non-GAAP Gross Margin Excluding Japan

(In thousands)

(Unaudited)

 

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2022				2021				2022				2021
Revenue		$	126,902			$	123,048			$	251,070			$	239,174
Revenue excluding Japan		$	124,046			$	119,999			$	244,128			$	232,501
Gross Profit			57,422				56,625				113,226				111,955
GAAP gross margin			45.2	%			46.0	%			45.1	%			46.8	%
Less: Japan gross profit			1,063				1,125				3,102				2,694
Gross Profit excluding Japan			56,359				55,500				110,124				109,261
GAAP gross margin excluding Japan			45.4	%			46.3	%			45.1	%			47.0	%
Add back:
Stock-based compensation expense			528				668				1,115				1,303
Amortization expense			342				343				684				685
Less:
Japan stock-based compensation expense			22				22				47				45
Japan amortization expense			-				-				-				-
Total adjustments			848				989				1,752				1,943
Non-GAAP gross profit excluding Japan		$	57,207			$	56,489			$	111,876			$	111,204
Non-GAAP gross margin excluding Japan			46.1	%			47.1	%			45.8	%			47.8	%

 

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Proto Labs, Inc.

Reconciliation of GAAP to Non-GAAP Operating Margin

(In thousands)

(Unaudited)

 

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2022				2021				2022				2021
Revenue		$	126,902			$	123,048			$	251,070			$	239,174
Income from operations			5,201				16,104				13,091				20,365
GAAP operating margin			4.1	%			13.1	%			5.2	%			8.5	%
Add back:
Stock-based compensation expense			4,031				4,941				8,428				10,561
Amortization expense			1,527				1,490				3,072				3,033
Transaction costs 1			-				(7,655	)			-				(5,140	)
Costs related to Japan closure activities			5,194				-				5,194				-
Total adjustments			10,752				(1,224	)			16,694				8,454
Non-GAAP income from operations		$	15,953			$	14,880			$	29,785			$	28,819
Non-GAAP operating margin			12.6	%			12.1	%			11.9	%			12.0	%

 

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¹ Transaction costs include direct costs incurred in the Company's acquisition of Hubs, Inc. and the impact of changes in the fair value of acquisition-related contingent consideration obligations.

 

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Proto Labs, Inc.

Reconciliation of GAAP to Non-GAAP Operating Margin Excluding Japan

(In thousands)

(Unaudited)

 

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2022				2021				2022				2021
Revenue		$	126,902			$	123,048			$	251,070			$	239,174
Revenue excluding Japan		$	124,046			$	119,999			$	244,128			$	232,501
Income from operations			5,201				16,104				13,091				20,365
GAAP operating margin			4.1	%			13.1	%			5.2	%			8.5	%
Less: Japan income from operations			(542	)			(696	)			4				(654	)
Income from operations excluding Japan			5,743				16,800				13,087				21,019
GAAP operating margin excluding Japan			4.6	%			14.0	%			5.4	%			9.0	%
Add back:
Stock-based compensation expense			4,031				4,941				8,428				10,561
Amortization expense			1,527				1,490				3,072				3,033
Transaction costs 1			-				(7,655	)			-				(5,140	)
Costs related to Japan closure activities			5,194				-				5,194				-
Less:
Japan stock-based compensation expense			147				160				297				303
Japan amortization expense			-				-				-				-
Total adjustments			10,605				(1,384	)			16,397				8,151
Non-GAAP income from operations excluding Japan		$	16,348			$	15,416			$	29,484			$	29,170
Non-GAAP operating margin excluding Japan			13.2	%			12.8	%			12.1	%			12.5	%

 

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¹ Transaction costs include direct costs incurred in the Company's acquisition of Hubs, Inc. and the impact of changes in the fair value of acquisition-related contingent consideration obligations.

 

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Proto Labs, Inc.

Reconciliation of GAAP Net Income to EBITDA and Adjusted EBITDA

(In thousands)

(Unaudited)

 

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2022				2021				2022				2021
Revenue		$	126,902			$	123,048			$	251,070			$	239,174
GAAP net income			2,557				12,915				7,652				16,627
GAAP net income margin			2.0	%			10.5	%			3.0	%			7.0	%
Add back:
Amortization expense		$	1,527			$	1,490			$	3,072			$	3,033
Depreciation expense			8,515				8,578				17,202				17,094
Interest income, net			(149	)			(65	)			(194	)			(152	)
Tax expense			2,645				3,326				5,140				3,562
EBITDA			15,095				26,244				32,872				40,164
EBITDA Margin			11.9	%			21.3	%			13.1	%			16.8	%
Add back:
Stock-based compensation expense			4,031				4,941				8,428				10,561
Unrealized (gain) loss on foreign currency			271				(402	)			360				220
Costs related to Japan closure activities			5,194				-				5,194				-
Transaction costs 1			-				(7,655	)			-				(5,140	)
Total adjustments			9,496				(3,116	)			13,982				5,641
Adjusted EBITDA		$	24,591			$	23,128			$	46,854			$	45,805
Adjusted EBITDA Margin			19.4	%			18.8	%			18.7	%			19.2	%

 

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¹ Transaction costs include direct costs incurred in the Company's acquisition of Hubs, Inc. and the impact of changes in the fair value of acquisition-related contingent consideration obligations.

 

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Proto Labs, Inc.

Comparison of GAAP to Non-GAAP Revenue Growth by Region

(In thousands)

(Unaudited)

 

		Three Months Ended June 30, 2022																Three Months Ended June 30, 2021				%
		GAAP				Foreign Currency1				Hubs Acquisition				Non-GAAP				GAAP				Change3				% Change Organic4
Revenues
United States		$	100,655			$	-			$	-			$	100,655			$	95,344				5.6	%			5.6	%
Europe			23,391				2,225				-				25,616				24,655				(5.1	)			3.9
Japan			2,856				524				-				3,380				3,049				(6.3	)			10.9
Total Revenue		$	126,902			$	2,749			$	-			$	129,651			$	123,048				3.1	%			5.4	%

 

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		Six Months Ended June 30, 2022																Six Months Ended June 30, 2021				%
		GAAP				Foreign Currency1				Hubs Acquisition2				Non-GAAP				GAAP				Change3				% Change Organic4
Revenues
United States		$	196,151			$	-			$	(1,049	)		$	195,102			$	186,397				5.2	%			4.7	%
Europe			47,977				3,376				(1,279	)			50,074				46,104				4.1				8.6
Japan			6,942				916				-				7,858				6,673				4.0				17.8
Total Revenue		$	251,070			$	4,292			$	(2,328	)		$	253,034			$	239,174				5.0	%			5.8	%

 

1 Revenue for the three- and six-month periods ended June 30, 2022 has been recalculated using 2021 foreign currency exchange rates in effect during comparable periods to provide information useful in evaluating the underlying business trends excluding the impact of changes in foreign currency exchange rates.

2 Revenue for the six-month period ended June 30, 2022 has been recalculated to exclude revenue earned from the Company's acquisition of Hubs, Inc. for the period from January 1, 2022 to January 21, 2022 to provide information useful in evaluating the underlying business trends excluding the impact of acquisitions. The Hubs, Inc. acquisition occurred on January 22, 2021 and was included in 2021 revenue after that date.

3 This column presents the percentage change from GAAP revenue for the three- and six-month periods ended June 30, 2021 to GAAP revenue for the three- and six-month periods ended June 30, 2022.

4 This column presents the percentage change from GAAP revenue for the three- and six-month periods ended June 30, 2021 to non-GAAP revenue for the three- and six-month periods ended June 30, 2022 (as recalculated using the foreign currency exchange rates in effect during the three-month period ended June 30, 2021, excluding the impact of Hubs, Inc. acquisition) in order to provide a constant-currency comparison.

 

 

Proto Labs, Inc.

Comparison of GAAP to Non-GAAP Revenue Growth by Service Line

(In thousands)

(Unaudited)

 

		Three Months Ended June 30, 2022																Three Months Ended June 30, 2021				%
		GAAP				Foreign Currency1				Hubs Acquisition				Non-GAAP				GAAP				Change3				% Change Organic4
Revenues
Injection Molding		$	53,355			$	1,541			$	-			$	54,896			$	58,168				(8.3	)%			(5.6	)%
CNC Machining			48,222				717				-				48,939				41,592				15.9				17.7
3D Printing			19,963				490				-				20,453				18,170				9.9				12.6
Sheet Metal			5,160				-				-				5,160				4,717				9.4				9.4
Other			202				1				-				203				401				(49.6	)			(49.4	)
Total Revenue		$	126,902			$	2,749			$	-			$	129,651			$	123,048				3.1	%			5.4	%

 

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		Six Months Ended June 30, 2022																Six Months Ended June 30, 2021				%
		GAAP				Foreign Currency1				Hubs Acquisition2				Non-GAAP				GAAP				Change3				% Change Organic4
Revenues
Injection Molding		$	106,753			$	2,425			$	(189	)		$	108,989			$	114,527				(6.8	)%			(4.8	)%
CNC Machining			94,320				1,113				(1,637	)			93,796				78,295				20.5				19.8
3D Printing			39,635				750				(408	)			39,977				35,405				11.9				12.9
Sheet Metal			9,847				-				(84	)			9,763				9,936				(0.9	)			(1.7	)
Other			515				4				(10	)			509				1,011				(49.1	)			(49.6	)
Total Revenue		$	251,070			$	4,292			$	(2,328	)		$	253,034			$	239,174				5.0	%			5.8	%

 

1 Revenue for the three- and six-month periods ended June 30, 2022 has been recalculated using 2021 foreign currency exchange rates in effect during comparable periods to provide information useful in evaluating the underlying business trends excluding the impact of changes in foreign currency exchange rates.

2 Revenue for the six-month period ended June 30, 2022 has been recalculated to exclude revenue earned from the Company's acquisition of Hubs, Inc. for the period from January 1, 2022 to January 21, 2022 to provide information useful in evaluating the underlying business trends excluding the impact of acquisitions. The Hubs, Inc. acquisition occurred on January 22, 2021 and was included in 2021 revenue after that date.

3 This column presents the percentage change from GAAP revenue for the three- and six-month periods ended June 30, 2021 to GAAP revenue for the three- and six-month periods ended June 30, 2022.

4 This column presents the percentage change from GAAP revenue for the three- and six-month periods ended June 30, 2021 to non-GAAP revenue for the three- and six-month periods ended June 30, 2022 (as recalculated using the foreign currency exchange rates in effect during the three-month period ended June 30, 2021, excluding the impact of Hubs, Inc. acquisition) in order to provide a constant-currency comparison.

 

 

Proto Labs, Inc.

Product Developer Information

(Unaudited)

 

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2022				2021				2022				2021
Unique product developers and engineers served			24,058				23,253				36,878				35,065

 

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