voxeljet AG (NASDAQ: VJET), a provider of high-speed, large-format 3D printers and on-demand parts services to industrial and commercial customers, announced consolidated financial results for the second quarter ended June 30, 2022.
Highlights – Second Quarter 2022 compared to the Second Quarter 2021
- Total revenues for the second quarter increased 35.4% to kEUR 6,691 from kEUR 4,943
- Gross profit margin increased to 31.3% from 28.6%
- Systems revenues increased 35.0% to kEUR 3,610 from kEUR 2,674
- Services revenues increased 35.8% to kEUR 3,081 from kEUR 2,269
- Reaffirm full year 2022 guidance
Dr. Ingo Ederer, Chief Executive Officer of voxeljet, commented: “We are very happy with the results for the quarter. We continue to be extremely busy in our on-demand printing segment and won major orders for 3D printing systems over the last months. With the currently signed number of orders for 3D printers, we have already achieved our target for 2022. Now, we are working hard to make the deliveries and installations on time to be able to record revenue for these orders in 2022. Similar to many other companies, we continue to see some delays with our suppliers as well as increasing costs, especially for electrical components. We are working closely with our suppliers and the support we receive is excellent. We are very excited about how the Company is positioned and our opportunities ahead.”
Three Months Ended June 30, 2022 Results
Revenues for the second quarter of 2022 increased by 35.4% to kEUR 6,691 compared to kEUR 4,943 in the second quarter of 2021.
Revenues from the company’s Systems segment, which focuses on the development, production and sale of 3D printers, increased 35.0% to kEUR 3,610 in the second quarter of 2022 from kEUR 2,674 in last year’s second quarter. The Company sold two new and one used and refurbished 3D printer in the second quarter of 2022 compared to one new and one used and refurbished 3D printer in last year’s second quarter. Revenue from the sale of 3D printers increased due to the higher number of sold units in contrast with the comparative period in 2021. Systems revenues also include all Systems-related revenues from consumables, spare parts and maintenance. Those Systems-related revenues also increased in the second quarter year over year, reflecting the higher installed base of their 3D printers in the market. Systems revenues represented 54.0% of total revenues in the second quarter of 2022 compared to 54.1% in last year’s second quarter.
Revenues from their Services segment, which focuses on the printing of on-demand parts for their customers, increased 35.8% to kEUR 3,081 in the second quarter of 2022 from kEUR 2,269 in the comparative period 2021. This was mainly due to significantly higher revenue contributions from their German service center as well as their subsidiary voxeljet America Inc. (‘voxeljet America’), reflecting an increased market demand in Europe as well as North America. Also revenue contributions from their subsidiary voxeljet China Co. Ltd. (‘voxeljet China’) slightly increased, mainly due to a growing market penetration in the Asia Pacific sales region, which is accompanied by a larger customer base.
Cost of sales were kEUR 4,600 for the second quarter of 2022 compared to kEUR 3,531 for the second quarter of 2021.
Gross profit and gross profit margin were kEUR 2,091 and 31.3%, respectively, in the second quarter of 2022 compared to kEUR 1,412 and 28.6% in the second quarter of 2021.
Gross profit for their Systems segment slightly increased to kEUR 868 in the second quarter of 2022 from kEUR 756 in the second quarter of 2021. Gross profit margin for this segment decreased to 24.0% in the second quarter of 2022 compared to 28.3% in the second quarter of 2021. Gross profit and gross profit margin from the sale of 3D printers slightly improved, while gross profit and gross profit margin from Systems-related revenues significantly decreased. This decrease was mainly due to the higher valuation allowance for inventories following the Company’s inventory reserve policy amounting to kEUR 243 negative for the second quarter of 2022 compared to kEUR 57 negative in the last year’s same period.
Gross profit for their Services segment increased to kEUR 1,223 in the second quarter of 2022 compared to kEUR 656 in the second quarter of 2021. Gross profit margin for this segment significantly increased to 39.7% in the second quarter of 2022 from 28.9% in the second quarter of 2021. The main driver for the significant improvements in gross profit as well as gross profit margin were the contributions from their German operation as well as from their American service center. This was a result of higher utilization of both service centers in line with the substantial increases in revenues. Also gross profit as well as gross profit margin contributions from voxeljet China improved based on an increased utilization.
Selling expenses were kEUR 1,888 for the second quarter of 2022 compared to kEUR 1,466 in the second quarter of 2021. This increase was mainly related to higher distribution expenses, in line with the increase in revenues. Distribution expenses like shipping and packaging are a main driver of the selling expenses, and not only depend on the amount of revenue, but also on quantities and types of products sold, as well as the destinations of where those goods are being delivered. Therefore, distribution expenses can vary from quarter to quarter.
Administrative expenses were kEUR 1,505 for the second quarter of 2022 compared to kEUR 1,986 in the second quarter of 2021. This decrease was mainly related to significantly lower legal advisor fees related to their stock market listing as well as their communication with financial institutions in connection with funding activities.
Research and development (‘R&D’) expenses slightly decreased to kEUR 1,653 in the second quarter of 2022 from kEUR 1,670 in the second quarter of 2021. The decrease of kEUR 17 was mainly due to lower material consumption and lower personnel expenses, partially offset by higher usage of external services. R&D expenses can vary from quarter to quarter and are usually driven by variations in project types and phases.
Other operating expenses in the second quarter of 2022 were kEUR 256 compared to kEUR 284 in the prior year period. This was mainly due to lower losses from foreign currency transactions of kEUR 198 for the second quarter of 2022 compared to kEUR 252 for the second quarter of 2021.
Other operating income was kEUR 1,254 for the second quarter of 2022 compared to kEUR 112 in the second quarter of 2021. The increase was mainly due to higher gains from foreign currency transactions, which increased to kEUR 975 for the second quarter of 2022, compared to kEUR 31 in the last year’s second quarter.
The changes in foreign currency gains and losses were primarily driven by the valuation of the intercompany loans granted by the parent company to their US subsidiary.
Operating loss was kEUR 1,957 in the second quarter of 2022 compared to an operating loss of kEUR 3,882 in the comparative period in 2021. This improvement was mainly due to a positive net impact from other operating expenses and other operating income amounting to kEUR 998 for the second quarter of 2022 compared to a negative net impact amounting to kEUR 172 for the second quarter of 2021, in combination with a significant improvement in gross profit in the second quarter of 2022 compared to the second quarter of 2021. In addition, administrative expenses significantly decreased compared to last year’s second quarter. This was partially offset by higher operating expenses within the function sales and marketing.
Financial result was positive kEUR 93 in the second quarter of 2022, compared to a financial result of positive kEUR 1,378 in the comparative period in 2021. This was mainly related to lower finance income related to the revaluation of derivative financial instruments amounting to kEUR 1,037 in the second quarter of 2022, compared to a finance income of kEUR 1,966 in last year’s same period. In addition voxeljet recorded expenses of kEUR 330 related to the change in fair value of bond funds in the second quarter of 2022, compared to kEUR 22 in the comparative period in 2021.
The derivative financial instruments are revalued on each balance sheet date, with changes in the fair value between reporting periods recorded within financial result of the consolidated statements of comprehensive loss. An increase in their share price results in a finance expense, while a decrease leads to a finance income, holding other parameters constant.
Finance expense included interest from long term debt which amounted to kEUR 583 for the second quarter of 2022, compared to kEUR 537 in the comparative period in 2021.
Net loss for the second quarter of 2022 was kEUR 1,799 or EUR 0.26 per share, as compared to net loss of kEUR 2,504, or EUR 0.41 per share, in the second quarter of 2021.
Six Months Ended June 30, 2022 Results
Revenues for the six months ended June 30, 2022 increased by 25.9% to kEUR 11,331 compared to kEUR 9,003 in the prior year period.
Systems revenues were kEUR 5,028 for the first six months of 2022 compared to kEUR 4,761 for the same period last year. The Company sold three new and one used and refurbished 3D printer during the first six months of 2022, which equals to three new and one used and refurbished 3D printer in the prior year period. Systems revenues also include all Systems-related revenues from consumables, spare parts and maintenance. The increase in revenues from their Systems segment was related to a significant increase in Systems-related revenues due to higher market demand in their after-sales activites in connection with an increased installed base of their 3D printers. This was partially offset by a slight decrease in revenues from the sale of 3D printers, due to a less favorable product mix. Systems revenues represented 44.4% of total revenue for the six months ended June 30, 2022 compared to 52.9% for the same period in the prior year.
Services revenues were kEUR 6,303 for the six months ended June 30, 2022 compared to kEUR 4,242 for the same period last year. This significant increase of 48.6% was mainly due to higher revenue contributions from their German service center as well as their subsidiary voxeljet America. But also revenue contributions from their Chinese service center improved. Since the beginning of the fiscal year 2022, voxeljet sees a strong market demand in their Services segment from almost all geographical regions.
Cost of sales for the six months ended June 30, 2022 were kEUR 7,649, an increase of kEUR 1,097 compared to cost of sales of kEUR 6,552 for the same period in 2021.
Gross profit and gross profit margin for the six months ended June 30, 2022 were kEUR 3,682 and 32.5%, respectively, compared to kEUR 2,451 and 27.2% in the prior year period.
Gross profit for their Systems segment decreased to kEUR 1,114 for the six months ended June 30, 2022 from kEUR 1,337 in the same period in 2021. Also gross profit margin for their Systems segment decreased, amounting to 22.2% for the six months ended June 30, 2022 compared to 28.1% for the prior year period. This decrease in gross profit and gross profit margin was mainly related to Systems-related revenues due to the higher valuation allowance for inventories following the Company’s inventory reserve policy amounting to kEUR 334 negative for the six months ended June 30, 2022, compared to kEUR 57 negative in the last year’s same period.
Gross profit for their Services segment increased to kEUR 2,568 for the six months ended June 30, 2022 from kEUR 1,114 in the same period 2021. Also gross profit margin for this segment increased to 40.7% for the first six months of 2022 from 26.3% in the same period in 2021. Both increases were mainly related to significantly higher gross profit as well as gross profit margin contributions from their German operation as well as their subsidiary voxeljet America, as a result of the improved utilization of those service centers. Also regarding their subsidiary voxeljet China gross profit improved. As each service center was able to generate considerably higher revenues in the six months ended June 30, 2022 compared to last year’s same period, the utilization was very cost effective.
Selling expenses were kEUR 3,525 for the six months ended June 30, 2022 compared to kEUR 2,914 in the same period in 2021. The year over year increase is mainly due to higher distribution expenses primarily corresponding to the increase in revenues. Shipping and packaging expenses as a main driver of the selling expenses varies from quarter to quarter depending on quantity and types of products, as well as the destinations where those goods are being delivered.
Administrative expenses decreased by kEUR 287 to kEUR 3,182 for the first six months of 2022 from kEUR 3,469 in the prior year’s period. The decrease was mainly related to slightly lower legal advisor fees related to their stock market listing as well as their communication with financial institutions in connection with funding activities.
R&D expenses decreased to kEUR 3,094 for the six months ended June 30, 2022 from kEUR 3,274 in the same period in 2021, a decrease of kEUR 180. The decrease was mainly due to lower expenses for labor and material, partially offset by higher usage of external services. R&D expenses can vary from quarter to quarter and are usually driven by variations in project types and phases.
Other operating expenses for the six months ended June 30, 2022 were kEUR 414 compared to kEUR 385 in the prior year period. This was mainly due to higher impairment of trade receivables amounting to kEUR 129 for the six months ended June 30, 2022 compared to kEUR 13 for the six months ended June 30, 2021. This was partially offset by lower losses from foreign currency transactions amounting to kEUR 258 for the six months ended June 30, 2022 compared to kEUR 340 in the prior year’s period.
Other operating income was kEUR 3,458 for the six months ended June 30, 2022 compared to kEUR 1,026 in the prior year period. This increase was mainly due to the reclassification of foreign currency translation reserve, which was previously recognized in other comprehensive income on consolidation of voxeljet UK accounts, to profit and loss account on deconsolidation amounting to kEUR 1,475, related to the finalization of the wind-up on February 17, 2022. In addition, voxeljet recorded higher gains from foreign exchange transactions amounting to kEUR 1,409 for the six months ended June 30, 2022 compared to kEUR 810 for the comparative period in 2021.
The changes in foreign currency gains and losses were primarily driven by the valuation of the intercompany loans granted by the parent company to their US subsidiary.
Operating loss was kEUR 3,075 in the six months ended June 30, 2022 compared to an operating loss of kEUR 6,565 in the comparative period in 2021. This was mainly due to a positive net impact from other operating expenses and other operating income amounting to kEUR 3,044 for the six months ended June 30, 2022 compared to a positive net impact amounting to kEUR 641 for the last year’s same period in combination with a significant improvement in gross profit. In addition, administration and R&D expenses decreased. This was partially offset by higher selling expenses.
Financial result was positive kEUR 444 for the six months ended June 30, 2022, compared to a financial result of negative kEUR 4,320 in the comparative period in 2021. This was mainly related to higher finance income related to the revaluation of derivative financial instruments, amounting to kEUR 2,353 for the six months ended June 30, 2022, compared to a finance expense of kEUR 3,222 in the last year’s same period. In addition voxeljet recorded expenses of kEUR 773 related to the change in fair value of bond funds for the six months ended June 30, 2022, compared to kEUR 66 in the comparative period in 2021.
The derivative financial instruments are revalued on each balance sheet date, with changes in the fair value between reporting periods recorded within financial result of the consolidated statements of comprehensive loss. An increase in their share price results in a finance expense, while a decrease leads to a finance income, holding other parameters constant.
Finance expense included interest from long term debt which amounted to kEUR 1,150 for the six months ended June 30, 2022, compared to kEUR 1,061 for the six months ended June 30, 2021.
Net loss for the six months ended June 30, 2022 was kEUR 2,552, or EUR 0.36 per share, as compared to net loss of kEUR 10,833, or EUR 1.88 per share in the prior year period.
Business Outlook
The company’s revenue guidance for the third quarter of 2022 is expected to be in the range of kEUR 5,500 to kEUR 6,000.
voxeljet reaffirms their guidance for the full year ending December 31, 2022:
– Full year revenue is expected to be in the range of kEUR 25,000 to kEUR 30,000
– Gross profit margin is expected to be above 32.5%
– Operating expenses for the full year are expected as follows: selling and administrative expenses are expected to be in the range of kEUR 13,250 to kEUR 13,750 and R&D expenses are projected to be between approximately kEUR 7,250 and kEUR 7,500. Depreciation and amortization expense is expected to be between kEUR 3,000 and kEUR 3,250.
– Adjusted EBITDA for the fourth quarter of 2022 is expected to be neutral-to-positive. Adjusted EBITDA is defined as net income (loss), as calculated under IFRS accounting principles before interest (income) expense, provision (benefit) for income taxes, depreciation and amortization, and excluding other operating (income) expense resulting from foreign exchange gains or losses on the intercompany loans granted to the subsidiaries.
– Capital expenditures are projected to be in the range of kEUR 4,500 to kEUR 4,750, which primarily includes ongoing investments in their global subsidiaries.
Their total backlog of 3D printer orders at June 30, 2022 was kEUR 8,306, which represents eleven 3D printers. This compares to a backlog of kEUR 3,880 representing seven 3D printers, at December 31, 2021. As production and delivery of their printers is generally characterized by lead times ranging between three to nine months, the conversion rate of order backlog into revenue is dependent on the equipping process for the respective 3D printer, as well as the timing of customers’ requested deliveries.
At June 30, 2022, voxeljet had cash and cash equivalents of kEUR 12,539 and restricted cash of kEUR 2,048, which is included in current financial assets on their consolidated statements of financial position.
Webcast and Conference Call Details
The Company will hosted a conference call and webcast to review the results for the second quarter of 2022 on Friday, August 19, 2022 at 8:30 a.m. Eastern Time. Participants from voxeljet included its Chief Executive Officer, Dr. Ingo Ederer, and its Chief Financial Officer, Rudolf Franz, who provided a general business update and respond to investor questions. An audio replay will be available approximately two hours after the completion of the call at 1-844-512-2921 or 1-412-317-6671, Replay Conference ID number 13732207. The recording will be available for replay through August 26, 2022.
For more information about voxeljet, please visit www.voxeljet.com.
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