In Q3 2023, revenues at voxeljet AG (NASDAQ: VJET), a provider of high-speed, large-format 3D printers and on-demand parts services to industrial and commercial customers, hit €6.1 million, a relatively small but significant 7.5% increase compared to €5.7 million in Q3 2022. The increase was driven by hardware sales. The results are not affecting voxeljet stock value, which remains around its all-time low.
Dr. Ingo Ederer, Chief Executive Officer of voxeljet, commented: “Demand for our products remains at a high level in all regions. Supply chain issues are becoming less critical; accordingly, we are targeting the upper end of our full-year sales guidance for 2023. Everyone at voxeljet is fully focused on making the fourth quarter of this year our best quarterly result ever. Another key priority in this market environment is to preserve cash: we have launched an initiative to reduce costs without jeopardizing our growth targets. This took effect in the third quarter of this year and includes lower OPEX, CapEx and personnel costs. Our goal is to achieve break-even adjusted EBITDA on a full-year basis by 2025 at the latest.”
Revenues from the Systems segment, which focuses on the development, production and sale of 3D printers, increased 25.2% to €3.4 million in the third quarter of 2023 from €2.7 million in last year’s third quarter. The Company sold three new 3D printers in the third quarter of 2023 compared to one new and one used and refurbished 3D printer in last year’s third quarter resulting in significantly higher revenue from the sale of 3D printers.
Systems revenues also include all Systems-related revenues from consumables, spare parts and maintenance. Those Systems-related revenues slightly decreased in the third quarter year-over-year. Systems revenues represented 54.9% of total revenues in the third quarter of 2023 compared to 47.1% in last year’s third quarter.
Revenues from the Services segment, which focuses on the printing of on-demand parts for our customers, decreased 8.2% to €2.8 million in the third quarter of 2023 from €3.0 million in the comparative period of 2022. This was due to lower revenue contributions from the subsidiary voxeljet America Inc. (‘voxeljet America’), the German service center as well as the subsidiary voxeljet China Co. Ltd. (‘voxeljet China’). The decrease reflected a lower market demand in all of our sales regions in the third quarter of 2023, compared to last year’s same period.
The fact that Systems revenues increased while Services revenues declined could also be an indication that more companies, such as foundries and automakers in particular, are internalizing sand binder jetting capabilities.
With that in mind, revenues for the nine months ended September 30, 2023 increased by 11.4% to €19,1 million from €17 million for the prior year period. Systems revenues were €10.5 million for the first nine months of 2023 compared to €7.7 million for the same period last year. The Company sold seven new 3D printers during the first nine months of 2023, compared to four new and two used and refurbished 3D printers during the prior year period. Systems revenues represented 55.6% of total revenue for the nine months ended September 30, 2023 compared to 45.3% for the same period in the prior year.
Services revenues were €8.4 million for the nine months ended September 30, 2023 compared to €9.3 million for the same period last year. Overall decreases from the services centers in Germany and China were negligibly offset by slightly higher revenue contributions from the American service center. Voxeljet sees continuing strong market demand in the Services segment from the Americas region. After a particularly strong fiscal year 2022 in the EMEA region, in 2023 voxeljet witnessed a relative decrease in market demand in this region, but a considerable level of demand, in absolute terms, remained for the nine months ended September 30, 2023.
The company’s revenue guidance for the fourth quarter of 2023 is expected to be in the range of €10 million to €13.5 million. Full year revenue is expected to be in the range of €29 million to €32.5 million (range is refined to the upper end of voxeljet’s earlier guidance). Gross profit margin remains expected to be above 31.5%
The total backlog of 3D printer orders as of September 30, 2023 was 11.7 million, which represents fifteen 3D printers. This compares to a backlog of €10 million representing eleven 3D printers, as of December 31, 2022. As production and delivery of our printers are 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.