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3D Systems reports full FY 2021 revenues up 10.5%

Results include Q4 revenues declining by 12.6% (due to divestitures of non core assets)

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3D Systems Corporation (NYSE:DDD) reported revenues of $615.6 million USD for the full fiscal year 2021, which ended on December 31, 2021. These results – which confirm 3D Systems as the largest AM company by revenues (by just under $10 million, compared to its closest competitor Stratasys) – reflect an overall 10.5% growth in FY 2021 and were obtained in spite of declining Q4 revenues (-12.6%), which the company solely attributed to divestitures of non-core assets.

Among the key highlights, in Q4 3D Systems also signed two agreements to acquire Titan Robotics and Kumovis, adding extrusion-based technology to the suite of current offerings supporting both Industrial and Healthcare Solutions segments. The gross profit margin in the fourth quarter of 2021 was 43.9% compared to 42.0% in the same period last year.

3D Systems FY 2021 revenues up 10.5% to $615.6 million with Q4 revenues declining by 12.6% (due to divestitures of non-core assets).
Dr. Jeffrey A. Graves, President and CEO of 3D Systems

Overall, 3D Systems FY 2021 revenues reflect the successful execution of its business strategy, as revenue adjusted for divestitures increased by 31.8% from 2020 and 16.9% from pre-pandemic 2019. Industrial and Healthcare Solutions segments revenue grew 24.4% and 40.1%, respectively (also adjusted for divestitures), from 2020 reflecting the success of the company’s vertical and applications-focused approach. 3D Systems generated $48.1 million of cash from operations.

Commenting on the results, President and CEO, Dr. Jeffrey Graves said, “2021 was a remarkable year for 3D Systems. In the face of a difficult operating environment, we executed well against the four-phased strategy that we introduced in the summer of 2020. As a result, we exited 2021 as one of the largest and the most profitable pure-play additive manufacturing companies in the world, entering 2022 with great momentum, an extremely strong balance sheet, and focused on investing for the exciting growth we see ahead. Our segment-led application focus leverages the unique scale of our business and breadth of our technologies, which span polymer and metal printing systems, as well as the most advanced materials and software technology platforms in the industry. The success attained through our intense focus on bell-weather customer applications in key market verticals is clearly reflected in the strong, double-digit revenue growth of our core additive manufacturing business. At the same time, the impact of our lean organization structure and effective cost management has driven earnings per share higher than, not only 2020 but also our pre-pandemic 2019.   This combination of revenue growth and profitability has singled us out as leaders in our industry, creating significant value for our customers, our employees and our shareholders alike. This performance, when combined with our exceptional balance sheet and operating cash flow, positions us very well to invest for the exciting future now expanding before us.”

During 3D Systems FY 2021, the company reported that both the Healthcare and Industrial Solutions segments contributed to the growth, with Healthcare revenue adjusted for divestitures increasing 40.1% and Industrial increasing 24.4% compared to 2020. Total gross profit margin for the full year 2021 was 42.8% compared to 40.1% in the prior year. Gross profit margin under GAAP increased primarily as a result of prior year end-of-life inventory charges and cost optimization expenses. Better absorption of supply chain overhead resulting from higher production, combined with strong inventory management resulted in reduced obsolescence which benefited both GAAP and non-GAAP gross margins.

3D Systems FY 2021 revenues up 10.5% to $615.6 million with Q4 revenues declining by 12.6% (due to divestitures of non-core assets).
The new SLS 380 systems from 3D Systems debuting at Formnext

Operating expenses for the full year 2021 decreased 13.3% to $296.8 million compared to the prior year, primarily as a result of a goodwill impairment charge of $48.3 million and cost optimization charges of $20.1 million that both occurred in 2020. Non-GAAP operating expenses were $214.7 million in 2021, a 9.4% decrease from the prior year. The lower non-GAAP operating expenses are primarily a result of restructuring efforts done in late 2020 and businesses divested as part of the company’s strategic plan.

Dr. Graves continued, “By organizing our company into two market-focused business units, Healthcare and Industrial Solutions, we have been able to clearly identify the unique technologies, expertise and infrastructure required to be a comprehensive provider of additive manufacturing solutions for key verticals within each of these segments.   In 2021, we invested significantly in both R&D and infrastructure for growth and continued operational efficiency improvements.   An important focus was talent acquisition, both through direct hiring in key leadership roles, and through the acquisition of two software firms, Additive Works, specializing in print process simulation, and Oqton, developers of a unique ‘manufacturing operating system’ that we believe will accelerate the adoption of additive manufacturing in production environments for the entire 3D printing industry.    Beyond these core technology investments, in 2021 we also invested to expand our biologics technology and printing expertise, which we believe will be instrumental in enabling next-generation applications ranging from the acceleration of new drug therapies to the manufacturing of human organs.   This investment theme continued in early 2022 with the announcement of our agreements to acquire two companies having unique polymeric extrusion technology for 3D printing, Titan and Kumovis, and further expand our application capabilities.”

3D Systems now expects full-year 2022 revenue to be within a range of $570 million and $630 million. The company expects full-year 2022 non-GAAP gross margins to be between 40% to 44% and non-GAAP operating expenses to be between $225 million and $250 million. The 2022 guidance assumes no significant macroeconomic events that negatively impact our business, such as COVID-19, geopolitical events, or other factors that could impact either demand or disrupt our supply chain.

Dr. Graves summarized, “As we enter 2022, there are clear challenges that all companies are facing – inflation, supply chain constraints, COVID-19 variants, and geopolitical instability – all of which may have an impact on the global economy and our results.   However, at 3D Systems we enter the new year with a great deal of optimism, confident that continued execution of our strategy to deliver essential solutions to our Healthcare and Industrial customers, while prudently increasing investment in our core technologies and infrastructure to meet our growing demand outlook, will accelerate the adoption of additive manufacturing. We believe the result will be exciting, profitable growth, and the creation of meaningful shareholder value in the years ahead.”

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Davide Sher

Since 2002, Davide has built up extensive experience as a technology journalist, market analyst and consultant for the additive manufacturing industry. Born in Milan, Italy, he spent 12 years in the United States, where he completed his studies at SUNY USB. As a journalist covering the tech and videogame industry for over 10 years, he began covering the AM industry in 2013, first as an international journalist and subsequently as a market analyst, focusing on the additive manufacturing industry and relative vertical markets. In 2016 he co-founded London-based VoxelMatters. Today the company publishes the leading news and insights websites VoxelMatters.com and Replicatore.it, as well as VoxelMatters Directory, the largest global directory of companies in the additive manufacturing industry.

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