Proto Labs, a digital manufacturing services provider, announced financial results for the second quarter of 2023. The company generated revenue of $122.3 million. This represents a slight decrease of 3.7% over the same period in 2022, and the hub-powered digital network generated $20.2 million – up 79.3% year-over-year.
Interestingly, despite a net loss of $400,000, Protolabs reported non-GAAP net income of $8.7 million, indicating certain operational adjustments and valuations.
“Our broad customer offer, powered by internal digital factories and network manufacturing partners, allows us to offer customers a differentiated value proposition and serve their varying needs in any economic climate,” said Rob Bodor, President and Chief Executive Officer. “Amidst the continued contraction of manufacturing, Protolabs improved gross and operating margins sequentially while continuing to delight our customers and advance our 2023 strategic initiatives.”
Some additional highlights of the quarter:
- Served more than 23,000 unique product developers during the quarter.
- The company repurchased $9 million worth of shares.
- Gross margin was an impressive 43.4% of sales.
Economic conditions have increased demand for longer-term, lower-priced offerings versus quick-fixes.
“Driven by the current economic climate, through the first half of 2023 demand for our longer lead times and lower-priced offerings has outpaced demand for our quick-turn offer, and we will continue to adapt our operations to align with demand,” said Dan Schumacher, Chief Financial Officer. “We are among the most profitable and positive cash generating digital manufacturers, enabling us to continue to invest in future growth among economic volatility and dynamic customer preferences.”
The non-GAAP financial measures provided, including various margins and income metrics, are designed to help investors better assess Protolabs’ performance and business strategy.
In summary, despite the overall contraction in the manufacturing sector, Protolabs continues to be able to deliver solid results with 3D printing and digital manufacturing at the forefront. The company dynamically adapts to market changes while remaining true to its core values and strategies.
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