3D Systems reports a decrease in revenues in all sectors in Q3 2022.

In the published financial report for the third quarter of 2022, 3D Systems reports a decrease in revenues by -15.2% compared to the previous year. The company generated $ 132.3 million, a significant decrease from the $ 156.1 million it generated in the same period last year. According to the company’s CEO Dr. Jeffrey Graves, these results “were in line with recent expectations” and reflect the continued impact of reduced consumer spending, which in turn has led to a decline in demand primarily from dental customers.

Since the strategic restructuring of 3D Systems in the third quarter of 2020, the company has reported financial data in both its traditional product and service divisions as well as industrial and healthcare divisions. Last quarter, the company’s products division generated USD 96.3 million – 11.6% less than a year ago, while the services division generated USD 35.9 million in revenues – 23.9% less than in 2021.

Before the announcement of the results, the company did not provide many reasons for these drops in revenues, apart from macroeconomic circumstances, reduced sales of dental products and divestments of companies and departments previously generating solid revenues – e.g. in September 2021, 3D Systems sold its 3D printing division, which turned into an independent company – Quickparts. Profits from the sale of this division and other subsidiaries (such as Cimatron and Simbionix) were invested in acquisitions of Allevi, Oqton, Kumovis, Titan Robotics, Additive Works and Volumetric Biotechnologies, however, this has not resulted in a significant increase in revenues so far.

Excluding divestments and currency fluctuations, 3D Systems emphasizes that the decline in revenues was not as steep as it initially appears. While industrial revenues fell by -14.6%, the decline was only -9% when these factors are taken into account. Likewise, the company’s revenues in the healthcare sector fell by -16%, but, measured in the same way, it fell by only -3.5%.

Assuming that there are no macroeconomic changes that will affect demand or disrupt the supply chain, 3D Systems has set its forecast for 2022 at $ 535-545 million in revenue, compared to the initially projected $ 530-570 million. The company maintained its Non-GAAP gross profit margin forecast of 39% – 41%, while its Non-GAAP operating costs are expected to be approximately $ 240- 245 million.

3D Systems ended the third quarter of 2022 with $ 609.4 million in cash, which puts it in a good position to make future investments, although Graves says its top priority remains leveraging past acquisitions as well as increasing its presence in emerging markets.

Source: www.3dsystems.com