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3D Systems Announces Final 2023 Financial Results and Dates for Q1 and Q2 2024 Earnings Releases

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3D Systems (NYSE:DDD) announced its final 2023 financial results and plans to file its Annual Report on Form 10-K after market on August 13, 2024. Key points include:

1. No change in revenue ($488,069,000) but a slight improvement in net loss compared to preliminary results.

2. Significant filing delays and added costs due to extended close activities and audit procedures.

3. Higher G&A expenses for 2024, with external auditor fees and outside services expected to total over $9 million.

4. Plans to release Q1'24 results around August 19, 2024, and Q2'24 results the week of August 26, 2024.

5. Transition of independent audit firm began in Q1 2024, with substantial improvement in operating expenses expected from Q4.

3D Systems (NYSE:DDD) ha annunciato i risultati finanziari finali per il 2023 e i piani per presentare il proprio Rapporto Annuale sul modulo 10-K dopo il mercato il 13 agosto 2024. I punti chiave includono:

1. Nessuna variazione nei ricavi ($488.069.000) ma un lieve miglioramento della perdita netta rispetto ai risultati preliminari.

2. Ritardi significativi nella presentazione e costi aggiuntivi a causa delle attività di chiusura estese e delle procedure di audit.

3. Aumento delle spese generali e amministrative per il 2024, con i costi degli auditor esterni e dei servizi esterni che si prevede supereranno i $9 milioni.

4. Piani per rilasciare i risultati del Q1'24 intorno al 19 agosto 2024 e i risultati del Q2'24 nella settimana del 26 agosto 2024.

5. Transizione della società di audit indipendente iniziata nel Q1 2024, con un significativo miglioramento delle spese operative atteso a partire dal Q4.

3D Systems (NYSE:DDD) anunció sus resultados financieros finales para 2023 y planes para presentar su Informe Anual en el formulario 10-K después del mercado el 13 de agosto de 2024. Los puntos clave incluyen:

1. Sin cambios en los ingresos ($488,069,000) pero una leve mejora en la pérdida neta en comparación con los resultados preliminares.

2. Retrasos significativos en la presentación y costos adicionales debido a actividades de cierre extendidas y procedimientos de auditoría.

3. Aumento de gastos generales y administrativos para 2024, con honorarios de auditores externos y servicios externos que se espera superen los $9 millones.

4. Planes para divulgar los resultados del Q1'24 alrededor del 19 de agosto de 2024 y los resultados del Q2'24 la semana del 26 de agosto de 2024.

5. Transición de la firma de auditoría independiente iniciada en el Q1 2024, con una mejora sustancial en los gastos operativos esperada a partir del Q4.

3D Systems (NYSE:DDD)는 2023년 최종 재무 결과를 발표하고 2024년 8월 13일 시장 종료 후에 10-K 양식의 연례 보고서를 제출할 계획이라고 발표했습니다. 주요 사항은 다음과 같습니다:

1. 수익 변화 없음 ($488,069,000), 그러나 초기 결과에 비해 순손실이 약간 개선되었습니다.

2. 신청 지연 및 추가 비용은 연장된 마감 활동과 감사 절차로 인해 발생했습니다.

3. 2024년 일반 관리비 증가, 외부 감사인 수수료 및 외부 서비스 비용이 $900만 이상이 될 것으로 예상됩니다.

4. Q1'24 결과를 2024년 8월 19일경에 발표할 계획이며, Q2'24 결과는 2024년 8월 26일 주에 발표할 예정입니다.

5. 독립 감사 회사의 전환은 2024년 Q1에 시작되었으며, Q4부터 운영 비용의 상당한 개선이 예상됩니다.

3D Systems (NYSE:DDD) a annoncé ses résultats financiers finaux pour 2023 et prévoit de soumettre son Rapport Annuel sur le formulaire 10-K après la clôture du marché le 13 août 2024. Les points clés incluent :

1. Aucun changement dans les revenus (488 069 000 $), mais une légère amélioration de la perte nette par rapport aux résultats préliminaires.

2. Délai de dépôt significatif et coûts supplémentaires dus aux activités de clôture prolongées et aux procédures d’audit.

3. Augmentation des frais de G&A pour 2024, avec des frais d’auditeurs externes et des services extérieurs qui devraient totaliser plus de 9 millions de dollars.

4. Plans pour publier les résultats du Q1'24 vers le 19 août 2024 et les résultats du Q2'24 la semaine du 26 août 2024.

5. Transition de la société d'audit indépendante débutée au Q1 2024, avec une amélioration substantielle des dépenses opérationnelles attendue à partir du Q4.

3D Systems (NYSE:DDD) gab die endgültigen Finanzdaten für 2023 bekannt und plant, seinen Jahresbericht in Form von 10-K nach Marktschluss am 13. August 2024 einzureichen. Wichtige Punkte sind:

1. Keine Veränderung der Einnahmen ($488.069.000), aber eine leichte Verbesserung des Nettoverlusts im Vergleich zu den vorläufigen Ergebnissen.

2. Signifikante Verzögerungen bei der Einreichung und zusätzliche Kosten aufgrund verlängerter Abschlussarbeiten und Prüfverfahren.

3. Höhere G&A-Kosten für 2024, wobei die Gebühren für externe Prüfer und externe Dienstleistungen voraussichtlich über 9 Millionen Dollar liegen werden.

4. Pläne zur Veröffentlichung der Q1'24 Ergebnisse um den 19. August 2024 und der Q2'24 Ergebnisse in der Woche vom 26. August 2024.

5. Übergang der unabhängigen Wirtschaftsprüfungsgesellschaft begann im Q1 2024, mit erheblichen Einsparungen bei den Betriebskosten, die ab dem Q4 erwartet werden.

Positive
  • No change in reported revenue ($488,069,000) for 2023
  • Slight improvement in net loss compared to preliminary results
  • No restatement of prior years' results required
  • Expects substantial improvement in operating expenses beginning in Q4 2024
Negative
  • Significant filing delays and added costs due to extended close activities and audit procedures
  • Higher G&A expenses for 2024, with external auditor fees and outside services expected to total over $9 million
  • Operating loss of $406,004,000 for the year ended December 31, 2023
  • Net loss attributable to 3D Systems of $362,688,000 for 2023
  • Non-GAAP gross profit margin decreased from 41.1% to 40.6% for 2023

Insights

3D Systems' final 2023 financial results reveal some concerning trends. While revenue remained unchanged at $488.069 million, the company's net loss improved slightly to $362.688 million. The significant delay in filing and increased audit-related costs raise red flags about internal controls and financial management.

The projected increase in G&A expenses for 2024, with an additional $9 million in external auditor fees, will likely impact profitability. However, the expected improvement in Q4 due to the audit firm transition could provide some relief. Investors should closely monitor the upcoming Q1 and Q2 2024 results for signs of operational improvement and cost control measures.

The delayed financial reporting and increased audit costs could negatively impact investor confidence in 3D Systems. The additive manufacturing industry faces challenges and this situation may put 3D Systems at a competitive disadvantage. The lack of revenue growth from 2023 preliminary to final results is concerning, suggesting stagnation in market demand or loss of market share.

However, the transition to a new audit firm and the company's commitment to transparency might help rebuild trust. Investors should watch for the upcoming Q1 and Q2 2024 results to assess whether 3D Systems can regain momentum in the rapidly evolving 3D printing market.

The extended audit procedures and significant filing delays raise serious questions about 3D Systems' internal controls and financial reporting processes. While no restatement of prior years' results was necessary, the reclassifications and adjustments to 2023 results indicate potential weaknesses in financial management.

The transition to a new independent audit firm is a positive step towards improving transparency and reliability. However, the substantial increase in audit-related costs for 2024 suggests underlying complexities that need addressing. Shareholders should scrutinize the company's efforts to enhance its financial reporting systems and governance practices in the coming quarters.

  • Company plans to file its 2023 Annual Report on Form 10-K after market on August 13, 2024
  • Significant filing delays and added costs were experienced due to extended close activities and related audit procedures in connection with the 2023 audit
  • Final 2023 financial results yielded no change to revenue, and slight improvement in net loss, versus preliminary results filed on February 28, 2024
  • No restatement of prior years’ results
  • Consistent with prior disclosures, the planned transition of the company’s independent audit firm began in Q1 of 2024
  • Company plans to release Q1’24 financial results on or about August 19, 2024 and Q2’24 financial results the week of August 26, 2024, followed by a call with investors to discuss results for the first half and outlook for the full year

ROCK HILL, S.C., Aug. 13, 2024 (GLOBE NEWSWIRE) -- 3D Systems (NYSE:DDD) (“the Company”) today announced that it plans to file its Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (the “Form 10-K”) with the Securities and Exchange Commission (the “SEC”) after market.

In connection with the Company’s efforts as it concluded its audit, certain reclassifications and adjustments were made to its fourth quarter and full year 2023 financial results, originally furnished to the SEC on the Company’s Current Report on Form 8-K filed on February 28, 2024. Revisions relate primarily to a reduction in the impairment of goodwill, a decrease in interest income and changes in certain expenses. Supplemental financial statements and GAAP to non-GAAP reconciliations are included in the Appendix. Changes to originally reported information are shown below:

Unaudited  Three Months Ended December 31, 2023 Year Ended December 31, 2023
(in thousands, expect per share data) Preliminary - Previously Filed Final - To Be
Filed
 Preliminary -Previously Filed Final - To Be
Filed
Revenue $114,848  $114,848  $488,069  $488,069 
Gross profit $46,348  $43,957  $198,812  $196,421 
Operating loss $(335,594) $(327,295) $(414,303) $(406,004)
Net loss attributable to 3D Systems Corporation $(300,412) $(292,668) $(370,432) $(362,688)
Diluted loss per share $(2.30) $(2.25) $(2.85) $(2.79)
         
Non-GAAP measures for year-over-year comparisons (1)    
         
Non-GAAP gross profit margin  41.9%  39.8%  41.1%  40.6%
Adjusted EBITDA $(12,260) $(13,993) $(24,525) $(26,258)
Non-GAAP diluted loss per share $(0.11) $(0.13) $(0.26) $(0.28)

(1) See “Presentation of Information in this Press Release” below for a description, and the Appendix for the reconciliation of non-GAAP measurements to the most closely comparable GAAP measure.

The Company also announced that it expects general and administrative (G&A) operating expenses for 2024 to be higher than original estimates, driven by external auditor fees and outside services related to the completion of the 2023 Form 10-K. These fees incurred by the Company, while transitory in nature, are expected to total over $9 million, approximately $7.5 million higher than anticipated in the original operating expense guidance provided for the full year. From a timing standpoint, the Company expects approximately 65% of these cost overruns occurred in Q1, approximately 25% in Q2, with the balance anticipated in Q3. It is important to note that, with the transition of audit responsibilities to a new firm, the Company expects a substantial improvement in operating expenses beginning in Q4.

The Company plans to release its financial results for the first quarter 2024 on or about August 19, 2024 in conjunction with the filing of its Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 with the SEC. In addition, the Company expects to release financial results for the second quarter 2024 during the week of August 26, 2024. Following its second quarter earnings release, the Company will host a conference call and simultaneous webcast to discuss its results for first half 2024 and outlook for the remainder of year.

About 3D Systems

More than 35 years ago, 3D Systems brought the innovation of 3D printing to the manufacturing industry. Today, as the leading additive manufacturing solutions partner, we bring innovation, performance, and reliability to every interaction – empowering our customers to create products and business models never before possible. Thanks to our unique offering of hardware, software, materials, and services, each application-specific solution is powered by the expertise of our application engineers who collaborate with customers to transform how they deliver their products and services. 3D Systems’ solutions address a variety of advanced applications in healthcare and industrial markets such as medical and dental, aerospace & defense, automotive, and durable goods. More information on the Company is available at www.3DSystems.com.

Forward-Looking Statements

Certain statements made in this release that are not statements of historical or current facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from historical results or from any future results or projections expressed or implied by such forward-looking statements. In many cases, forward looking statements can be identified by terms such as “believes,” “belief,” “expects,” “may,” “will,” “estimates,” “intends,” “anticipates” or “plans” or the negative of these terms or other comparable terminology. Forward-looking statements are based upon management’s beliefs, assumptions and current expectations and may include comments as to the Company’s beliefs and expectations as to future events and trends affecting its business and are necessarily subject to uncertainties, many of which are outside the control of the Company. The factors described under the headings “Forward-Looking Statements” and “Risk Factors” in the Company’s periodic filings with the SEC, as well as other factors, could cause actual results to differ materially from those reflected or predicted in forward-looking statements. Although management believes that the expectations reflected in the forward-looking statements are reasonable, forward-looking statements are not, and should not be relied upon as a guarantee of future performance or results, nor will they necessarily prove to be accurate indications of the times at which such performance or results will be achieved. The forward-looking statements included are made only as the date of the statement. 3D Systems undertakes no obligation to update or revise any forward-looking statements made by management or on its behalf, whether as a result of future developments, subsequent events or circumstances or otherwise, except as required by law.

Presentation of Information in this Press Release

3D Systems reports its financial results in accordance with GAAP. Management also reviews and reports certain non-GAAP measures, including: non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP diluted income (loss) per share, and Adjusted EBITDA. These non-GAAP measures exclude certain items that management does not view as part of 3D Systems’ core results as they may be highly variable, may be unusual or infrequent, are difficult to predict and can distort underlying business trends and results. Management believes that the non-GAAP measures provide useful additional insight into underlying business trends and results and provide meaningful information regarding the comparison of period-over-period results. Additionally, management uses the non-GAAP measures for planning, forecasting and evaluating business and financial performance, including allocating resources and evaluating results relative to employee compensation targets. 3D Systems’ non-GAAP measures are not calculated in accordance with or as required by GAAP and may not be calculated in the same manner as similarly titled measures used by other companies. These non-GAAP measures should thus be considered as supplemental in nature and not considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP.

To calculate the non-GAAP measures, 3D Systems excludes the impact of the following items:

  • amortization of intangible assets, a non-cash expense, as 3D Systems’ intangible assets were primarily acquired in connection with business combinations;
  • costs incurred in connection with acquisitions and divestitures, such as legal, consulting and advisory fees;
  • stock-based compensation expenses, a non-cash expense;
  • charges related to restructuring and cost optimization plans, impairment charges, including goodwill, and divestiture gains or losses;
  • certain compensation expense related to the 2021 Volumetric acquisition; and
  • costs, including legal fees, related to significant or unusual litigation matters.

Amortization of intangibles and acquisition and divestiture-related costs are excluded from non-GAAP measures as the timing and magnitude of business combination transactions are not predictable, can vary significantly from period to period and the purchase price allocated to amortizable intangible assets and the related amortization period are unique to each acquisition. Amortization of intangible assets will recur in future periods until such intangible assets have been fully amortized. While intangible assets contribute to the company’s revenue generation, the amortization of intangible assets does not directly relate to the sale of the company’s products or services. Additionally, intangible assets amortization expense typically fluctuates based on the size and timing of the company’s acquisition activity. Accordingly, the company believes excluding the amortization of intangible assets enhances the company’s and investors’ ability to compare the company’s past financial performance with its current performance and to analyze underlying business performance and trends. Although stock-based compensation is a key incentive offered to certain of our employees, the expense is non-cash in nature, and we continue to evaluate our business performance excluding stock-based compensation; therefore, it is excluded from non-GAAP measures. Stock-based compensation expenses will recur in future periods. Charges related to restructuring and cost optimization plans, impairment charges, including goodwill, divestiture gains or losses, and the costs, including legal fees, related to significant or unusual litigation matters are excluded from non-GAAP measures as the frequency and magnitude of these activities may vary widely from period to period. Additionally, impairment charges, including goodwill, are non-cash. Furthermore, the company believes the costs, including legal fees, related to significant or unusual litigation matters are not indicative of our core business' operations. Finally, 3D Systems excludes contingent consideration recorded as compensation expense related to the 2021 Volumetric acquisition from non-GAAP measures as management evaluates financial performance excluding this expense, which is viewed by management as similar to acquisition consideration.

The matters discussed above are tax effected, as applicable, in calculating non-GAAP diluted income (loss) per share.

Adjusted EBITDA, defined as net income, plus income tax (provision) benefit, interest and other income (expense), net, stock-based compensation expense, amortization of intangible assets, depreciation expense, and other non-GAAP adjustments, all as described above, is used by management to evaluate performance and helps measure financial performance period-over-period.

A reconciliation of GAAP to non-GAAP financial measures is provided in the accompanying schedules.

3D Systems does not provide forward-looking guidance for certain measures on a GAAP basis. The company is unable to provide a quantitative reconciliation of forward-looking non-GAAP gross profit margin, Adjusted EBITDA, and non-GAAP operating expense to the most directly comparable forward-looking GAAP measures without unreasonable effort because certain items, including litigation costs, acquisition expenses, stock-based compensation expense, intangible assets amortization expense, restructuring expenses, and goodwill impairment charges are difficult to predict and estimate. These items are inherently uncertain and depend on various factors, many of which are beyond the company’s control, and as such, any associated estimate and its impact on GAAP performance could vary materially.


3D Systems Corporation
Unaudited Consolidated Balance Sheets
December 31, 2023 and December 31, 2022
 
(in thousands, except par value) December 31,
2023
 December 31,
2022
ASSETS   
Current assets:   
Cash and cash equivalents$331,525  $388,134 
Short-term investments    180,603 
Accounts receivable, net of reserves — $3,389 and $3,114 101,497   93,886 
Inventories 152,188   137,832 
Prepaid expenses and other current assets 42,612   33,790 
Total current assets 627,822   834,245 
Property and equipment, net 64,461   58,072 
Intangible assets, net 62,724   90,230 
Goodwill 116,082   385,312 
Operating lease right-of-use assets 58,406   39,502 
Finance lease right-of-use assets 12,174   3,244 
Long-term deferred income tax assets 4,230   7,038 
Other assets 44,761   28,970 
Total assets$990,660  $1,446,613 
LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND EQUITY   
Current liabilities:   
Current operating lease liabilities$9,924  $8,343 
Accounts payable 49,757   53,826 
Accrued and other liabilities 49,460   56,264 
Customer deposits 7,599   6,911 
Deferred revenue 30,448   26,464 
Total current liabilities 147,188   151,808 
Long-term debt, net of deferred financing costs 319,356   449,510 
Long-term operating lease liabilities 56,795   38,499 
Long-term deferred income tax liabilities 5,162   7,631 
Other liabilities 33,400   47,461 
Total liabilities 561,901   694,909 
Commitments and contingencies (Note 23)   
Redeemable non-controlling interest 2,006   1,760 
Stockholders’ equity:   
Common stock, $0.001 par value, authorized 220,000 shares; shares issued 133,619 and 131,207 as of December 31, 2023 and 2022, respectively 134   131 
Additional paid-in capital 1,577,519   1,547,597 
Accumulated deficit (1,106,650)  (743,962)
Accumulated other comprehensive loss (44,250)  (53,822)
Total stockholders’ equity 426,753   749,944 
Total liabilities, redeemable non-controlling interest and stockholders’ equity$990,660  $1,446,613 


3D Systems Corporation
Unaudited Consolidated Statements of Operations
Year Ended December 31, 2023, 2022 and 2021
 
 Year Ended December 31,
(in thousands, except per share amounts) 2023   2022   2021 
Revenue:     
Products$328,731  $395,396  $428,742 
Services 159,338   142,635   186,897 
Total revenue 488,069   538,031   615,639 
Cost of sales:     
Products 203,258   237,386   245,169 
Services 88,390   86,412   106,692 
Total cost of sales 291,648   323,798   351,861 
Gross profit 196,421   214,233   263,778 
Operating expenses:     
Selling, general and administrative 210,172   244,181   227,697 
Research and development 89,466   87,071   69,150 
Impairments of goodwill and intangible assets 302,787       
Total operating expenses 602,425   331,252   296,847 
Loss from operations (406,004)  (117,019)  (33,069)
Interest and other income (expense), net 43,692   (3,790)  352,609 
(Loss) income before income taxes (362,312)  (120,809)  319,540 
Benefit (provision) for income taxes 641   (2,140)  2,512 
Loss on equity method investment, net of income taxes (1,282)      
Net (loss) income before redeemable non-controlling interest (362,953)  (122,949)  322,052 
Less: net loss attributable to redeemable non-controlling interest (265)  (238)   
Net (loss) income attributable to 3D Systems Corporation$(362,688) $(122,711) $322,052 
      
Net (loss) income per common share     
Basic$(2.79) $(0.96) $2.62 
Diluted$(2.79) $(0.96) $2.55 
      
Weighted average shares outstanding:     
Basic 129,944   127,818   122,867 
Diluted 129,944   127,818   126,334 


3D Systems Corporation
Unaudited Consolidated Statements of Operations
Three Months Ended December 31, 2023, 2022 and 2021
 
 Three Months Ended December 31,
(in thousands, except per share amounts) 2023   2022   2021 
Revenue:     
Products$74,763  $94,734  $117,572 
Services 40,085   37,998   33,298 
Total revenue 114,848   132,732   150,870 
Cost of sales:     
Products 49,816   55,541   64,918 
Services 21,075   22,561   19,734 
Total cost of sales 70,891   78,102   84,652 
Gross profit 43,957   54,630   66,218 
Operating expenses:     
Selling, general and administrative 59,549   58,783   50,897 
Research and development 22,513   23,891   19,163 
Impairments of goodwill and intangible assets 289,190       
Total operating expenses 371,252   82,674   70,060 
Loss from operations (327,295)  (28,044)  (3,842)
Interest and other income (expense), net 34,001   1,666   (1,787)
Loss before income taxes (293,294)  (26,378)  (5,629)
Benefit (provision) for income taxes 1,045   771   (571)
Loss on equity method investment, net of income taxes (535)      
Net loss before redeemable non-controlling interest (292,784)  (25,607)  (6,200)
Less: net loss attributable to redeemable non-controlling interest (116)  (54)   
Net loss attributable to 3D Systems Corporation$(292,668) $(25,553) $(6,200)
      
Net loss per share available to 3D Systems Corporation common stockholders     
Basic$(2.25) $(0.20) $(0.05)
Diluted$(2.25) $(0.20) $(0.05)


3D Systems Corporation
Unaudited Consolidated Statements of Cash Flows
 
 Year Ended December 31,
(in thousands) 2023   2022   2021 
Cash flows from operating activities:     
Net (loss) income before redeemable non-controlling interest$(362,953) $(122,949) $322,052 
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:     
Depreciation, amortization and accretion of debt discount 36,053   38,686   34,623 
Stock-based compensation 23,504   42,415   55,153 
Loss on short-term investments 6   3,146    
Non-cash operating lease expense 9,267   6,366   5,681 
Provision for inventory obsolescence and revaluation 6,350   2,586   (2,909)
Loss on hedge accounting de-designation and termination       721 
Provision for bad debts 595   562   232 
Loss (gain) on the disposition of businesses, property, equipment and other assets 6   104   (350,846)
Gain on debt extinguishment (32,181)      
Benefit for deferred income taxes and reserve adjustments (2,412)  (2,518)  (11,679)
Loss on equity method investment 1,282       
Impairments of assets 304,698   4,095   1,676 
Changes in operating accounts:     
Accounts receivable (6,186)  8,144   (11,912)
Inventories (20,555)  (51,082)  7,866 
Prepaid expenses and other current assets (7,961)  8,229   (8,106)
Accounts payable (5,526)  (3,787)  27,159 
Deferred revenue and customer deposits 1,245   (6,947)  (3,325)
Accrued and other liabilities (12,933)  10,702   (12,389)
All other operating activities (12,994)  (7,773)  (5,850)
Net cash (used in) provided by operating activities (80,695)  (70,021)  48,147 
Cash flows from investing activities:     
Purchases of property and equipment (27,183)  (20,907)  (18,791)
Purchases of short-term investments    (384,388)   
Sales and maturities of short-term investments 180,925   200,314    
Proceeds from sale of assets and businesses, net of cash sold 194   325   421,485 
Acquisitions and other investments, net of cash acquired (29,152)  (103,699)  (139,685)
Other investing activities       (2,454)
Net cash provided by (used in) investing activities 124,784   (308,355)  260,555 
Cash flows from financing activities:     
Proceeds from borrowings       460,000 
Debt issuance costs       (13,466)
Repayment of borrowings/long-term debt (100,614)     (21,392)
Purchase of non-controlling interests    (2,300)  (6,300)
Taxes paid related to net-share settlement of equity awards (5,211)  (10,864)  (12,619)
Other financing activities (644)  (651)  (423)
Net cash (used in) provided by financing activities (106,469)  (13,815)  405,800 
Effect of exchange rate changes on cash, cash equivalents and restricted cash 3,516   (5,804)  (9,243)
Net (decrease) increase in cash, cash equivalents and restricted cash (58,864)  (397,995)  705,259 
Cash, cash equivalents and restricted cash at the beginning of the year a 391,975   789,970   84,711 
Cash, cash equivalents and restricted cash at the end of the year a$333,111  $391,975  $789,970 

(a) The amounts for cash and cash equivalents shown above include restricted cash of $119, $114 and $313 as of December 31, 2023, 2022 and 2021, respectively, which are included in prepaid expenses and other current assets. In addition, included in cash and cash equivalents above as of December 31, 2023 and 2022 is $1,467 and $3,727 of restricted cash, which, is included in other non-current assets.

Appendix
3D Systems Corporation
Unaudited Reconciliations of GAAP to Non-GAAP Measures
Three Months Ended December 31, 2023 and 2022.
   
Constant Currency Revenue (4)  
 Three Months Ended December 31,  Constant Currency (1) 
(in thousands)2023 2022 $ Change % Change FX Effect (2) % Change (3)
Healthcare Solutions$51,188 $60,694 $(9,506) (15.7)% $454 (16.4)%
Industrial Solutions 63,660  72,038  (8,378) (11.6)%  1,196 (13.3)%
Total revenue$114,848 $132,732 $(17,884) (13.5)% $1,650 (14.7)%

(1) To assist in the analysis of the Company’s revenue trends, the Company estimated the impact of foreign exchange on year-over-year revenue growth by recasting revenue for the three months ended December 31, 2023 by applying the foreign exchange rates used to translate 2022 non-US functional currency revenue to 2023 non-US functional currency revenue.
(2) Represents the estimated impact on "as reported" revenue due to changes in foreign currency exchange rates
(3) Represents the % increase or decrease in revenue excluding the estimated "FX effect"
(4)Amounts in table may not foot due to rounding

 Year Ended December 31,  Constant Currency (1) 
(in thousands)2023 2022 $ Change % Change FX Effect (2) % Change (3)
Healthcare Solutions$213,216 $260,988 $(47,772) (18.3)% $817 (18.6)%
Industrial Solutions 274,853  277,043  (2,190) (0.8)%  971 (1.1)%
Total revenue$488,069 $538,031 $(49,962) (9.3)% $1,788 (9.6)%

(1) To assist in the analysis of the Company’s revenue trends, the Company estimated the impact of foreign exchange on year-over-year revenue growth by recasting revenue for the year ended December 31, 2023 by applying the foreign exchange rates used to translate 2022 non-US functional currency revenue to 2023 non-US functional currency revenue.
(2) Represents the estimated impact on "as reported" revenue due to changes in foreign currency exchange rates
(3) Represents the % increase or decrease in revenue excluding the estimated "FX effect"
(4)Amounts in table may not foot due to rounding

Gross Profit and Gross Profit Margin (1)
 Three Months Ended December 31,
(in thousands) 2023   2022 
 Gross Profit Gross Profit Margin (2) Gross Profit Gross Profit Margin (2)
GAAP$43,957 38.3% $54,630  41.2%
Amortization expense included in Cost of sales 382    (398)  
Restructuring expense included in Cost of sales 1,427       
Non-GAAP$45,766 39.8% $54,232  40.9%

(1) Amounts in table may not foot due to rounding
(2) Calculated as non-GAAP gross profit as a percentage of total revenue.

 Year Ended December 31,
(in thousands) 2023   2022 
 Gross Profit Gross Profit Margin (2) Gross Profit Gross Profit Margin(2)
GAAP$196,421 40.2% $214,233 39.8%
Amortization expense included in Cost of sales 506    14  
Restructuring expense included in Cost of sales 1,427      
Non-GAAP$198,354 40.6% $214,247 39.8%

(1) Amounts in table may not foot due to rounding
(2) Calculated as non-GAAP gross profit as a percentage of total revenue.

Appendix
3D Systems Corporation
Unaudited Reconciliations of GAAP to Non-GAAP Measures
Three and Twelve Months Ended December 31, 2023 and 2022
 
Net Loss to Adjusted EBITDA (1)
 Three Months Ended December 31, Year Ended December 31,
(in thousands) 2023   2022   2023   2022 
Net loss attributable to 3D Systems Corporation$(292,668) $(25,553) $(362,688) $(122,711)
Interest income, net (3,092)  (2,522)  (16,210)  (6,541)
(Benefit) provision for income taxes (1,045)  (771)  (641)  2,140 
Depreciation expense 5,656   5,104   21,346   21,096 
Amortization expense 2,391   5,207   12,067   15,480 
Stock-based compensation expense 8,361   10,980   23,504   42,489 
Acquisition and divestiture-related expense (1,202)  2,978   (1,070)  12,360 
Legal expense 3,174   (1,418)  8,053   19,062 
Restructuring expense 4,774   381   11,487   733 
Net loss attributable to redeemable non-controlling interest (116)  (54)  (265)  (238)
Loss (income) on equity method investment, net of income taxes 535      1,282    
Goodwill and other assets impairment charges 290,148   3   304,359   18 
Gain on repurchase of debt (32,181)     (32,181)   
Other non-operating expense 1,272   857   4,699   10,331 
Adjusted EBITDA$(13,993) $(4,808) $(26,258) $(5,781)

(1) Amounts in table may not foot due to rounding

Appendix
3D Systems Corporation
Unaudited Reconciliations of GAAP to Non-GAAP Measures
Three and Twelve Months Ended December 31, 2023 and 2022
 
Non-GAAP Diluted Loss per Share (1)(2)
 Three Months Ended December 31, Year Ended December 31,
(in dollars) 2023   2022   2023   2022 
Diluted loss per share$(2.25) $(0.20) $(2.79) $(0.96)
Amortization expense 0.02   0.04   0.09   0.12 
Stock-based compensation expense 0.06   0.09   0.18   0.33 
Acquisition and divestiture-related expense (0.01)  0.02   (0.01)  0.10 
Legal expense 0.03   (0.01)  0.06   0.17 
Restructuring expense 0.04      0.09   0.01 
Goodwill and other assets impairment charges 2.23      2.35    
Gain on repurchase of debt (0.25)     (0.25)   
Non-GAAP diluted loss per share$(0.13) $(0.06) $(0.28) $(0.23)

(1) Amounts in table may not foot due to rounding
(2) Amounts in table are stated per share


FAQ

When will 3D Systems (DDD) file its 2023 Annual Report?

3D Systems plans to file its 2023 Annual Report on Form 10-K after market on August 13, 2024.

What was 3D Systems' (DDD) revenue for 2023?

3D Systems reported revenue of $488,069,000 for the year ended December 31, 2023, unchanged from preliminary results.

How did 3D Systems' (DDD) net loss change in the final 2023 results?

3D Systems' net loss attributable to the company improved slightly to $362,688,000 from the preliminary $370,432,000 for 2023.

When will 3D Systems (DDD) release its Q1 and Q2 2024 financial results?

3D Systems plans to release Q1'24 results around August 19, 2024, and Q2'24 results the week of August 26, 2024.

How much additional G&A expenses does 3D Systems (DDD) expect for 2024?

3D Systems expects additional G&A expenses of over $9 million for 2024, primarily due to external auditor fees and outside services.

3D Systems Corp

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