Shapeways Achieves +10% Q3 2022 Revenue Growth But Still at Risk of Delisting from NYSE

Shapeways – a leading company providing 3D printing services, has published its financial results for the third quarter of 2022. Revenues increased by +9.5% compared to the third quarter of last year and amounted to USD 8.4 million. The company’s gross margins were 44% compared to 47% a year ago, and although they were described as “top tier gross margins”, Shapeways reported no profit for the period. The net loss was -$4.6 million, compared to +$2.6 million profit in the third quarter last year. These results were not welcomed by the New York Stock Exchange (NYSE), where the company has been listed since September last year, compounding its problems…

In August this year we reported that Shapeways, since its stock exchange debut on the NYSE, has been experiencing considerable problems in connection with the fulfillment of promises made to stock market investors. Since July 15, when Shapeways shares hit the $1 mark, their price has continued to fall, and last month the price per share of Shapeways did not exceed 70 cents. The company has been notified by the NYSE that it is not in line with the exchange’s listing standards for each listed company’s stock to maintain a minimum average closing price of $1.00 per share for the next 30 days. If Shapeways is unable to improve its share price by January next year, it could be delisted.

Shapeways’ problems fit in with the general trend of other US-listed companies that have fallen over the past twelve months. As reported by the 3DPrint.com portal, after the publication of financial results, the share price gained 10% in the first hour of trading, but two days later the share price began to fall again, finally reaching 59 cents per share.

To remedy the situation and avoid starting a compromising delisting from the NYSE, CFO Alberto Recchi said the company is convening a special shareholder meeting in Q1 2023 to approve the reverse stock split. It is a change in a company’s stock structure to reduce the number of shares outstanding in the market.

On a full-year basis (first nine months of 2022), it still doesn’t look good for Shapeways… Total revenue was $24.5 million – $0.9 million less than last year. Gross profit was $10.7 million, down $1.4 million. The gross margin was 44% compared to 48%, while the company made a profit of $4.1 million a year ago, this year it has already generated a loss of $13.3 million. The latter position is largely due to the acquisitions of MFG.com and MakerOS, which it integrates with existing structures. The company believes that in the long run this will improve its revenues and make it more competitive, but so far the prospects are not very optimistic.

It all boils down to Shapeways promising too much to investors. Ahead of its IPO, the company made bold predictions about its revenue potential, forecasting its revenues to reach $86 million in fiscal year 2022, $150 million in fiscal year 2023 and $250 million in fiscal year 2024. So far, it has managed to generate only USD 24.5 million, and the management’s current forecasts for the fourth quarter are USD 8.7 million – USD 9.1 million. If this is achieved, Shapeways will end the year with revenues that are over 50% lower than declared.

Source www.shapeways.com & 3DPrint.com