Protolabs Reports Financial Results for the Second Quarter of 2022

Rhea-AI Summary

Proto Labs reported record revenue of $126.9 million for Q2 2022, up 3.1% from $123.0 million in Q2 2021. GAAP net income was $2.6 million ($0.09 per diluted share) while Non-GAAP net income stood at $12.8 million ($0.46 per diluted share). The company also noted significant growth in Hubs, generating $11.3 million in revenue, a 26.3% increase year-over-year. Gross margin improved to 45.2% from 44.9% in the previous quarter. The conference call for Q2 results and Q3 outlook is scheduled for August 5, 2022.

Positive

• Record revenue of $126.9 million, up 3.1% year-over-year.
• Non-GAAP earnings per share of $0.46, indicating strong profitability.
• Significant growth in Hubs revenue at $11.3 million, a 26.3% increase.

Negative

• GAAP earnings affected by $5.2 million costs from Japan operations closure.

Record Revenue of $126.9 million in the Second Quarter of 2022;

GAAP Earnings Per Share of $0.09, Non-GAAP Earnings Per Share of $0.46

MAPLE PLAIN, Minn.--(BUSINESS WIRE)-- Proto Labs, Inc. (“Protolabs” or “the company”) (NYSE: PRLB), the world’s leading provider of digital manufacturing services, today announced financial results for the second quarter ended June 30, 2022.

Second Quarter 2022 Highlights include:

• Revenue for the second quarter of 2022 was $126.9 million, representing a 3.1 percent increase compared to revenue of $123.0 million in the second quarter of 2021.
• Hubs generated $11.3 million of revenue in the second quarter, representing year-over-year growth of 26.3 percent.
• On a GAAP basis, costs related to the closure of Japan operations were $5.2 million in the quarter. These costs have been excluded from our Non-GAAP results. See “Non-GAAP Financial Measures” below.
• Net income was $2.6 million, or $0.09 per diluted share.
• Non-GAAP net income was $12.8 million, or $0.46 per diluted share.

“Protolabs performed well in the quarter amid continuing supply chain challenges in the broader manufacturing industry and macroeconomic growth concerns,” said Rob Bodor, President and Chief Executive Officer. “We continue to make progress on our 2022 strategic priorities and are focused to execute on the integration of Protolabs and Hubs, bringing together two leading digital manufacturing offers to create the most comprehensive digital manufacturing offer to serve our customers.”

Additional Second Quarter 2022 Highlights include:

• Protolabs served 24,058 unique product developers during the second quarter of 2022.
• Gross margin was 45.2 percent of revenue, compared to 44.9 percent of revenue in the first quarter of 2022.
• Non-GAAP gross margin was 45.9 percent of revenue, compared to 45.7 percent of revenue in the first quarter of 2022.
• EBITDA was $15.1 million, or 11.9 percent of revenue.
• Adjusted EBITDA was $24.6 million, or 19.4 percent of revenue.
• Cash and investments balance was $110.1 million as of June 30, 2022.

“We are pleased with the sequential improvements in our margins in the second quarter,” said Dan Schumacher, Chief Financial Officer. “We continue to focus on executing our strategy through disciplined investments and cost controls while delivering value to our customers and profitable growth to our shareholders.”

Non-GAAP Financial Measures

The company has included non-GAAP revenue growth by region and by service line that excludes the impact of changes in foreign currency exchange rates and revenue earned from our acquisition of Hubs (collectively, “non-GAAP revenue growth”). Management believes these metrics are useful in evaluating the underlying business trends and ongoing operating performance of the company.

The company has included earnings before interest, taxes, depreciation and amortization (“EBITDA”) and EBITDA, adjusted for stock-based compensation expense, unrealized (gain) loss on foreign currency, costs related to the Japan closure activities and transaction costs (collectively, “Adjusted EBITDA”), in this press release to provide investors with additional information regarding the company’s financial results. The company has also included earnings before interest, taxes, depreciation and amortization margin (“EBITDA margin”) and EBITDA margin, adjusted for stock-based compensation expense, unrealized (gain) loss on foreign currency, costs related to the Japan closure activities and transaction costs (collectively, “Adjusted EBITDA margin”), in this press release to provide investors with additional information regarding the company’s financial results.

The company has included non-GAAP gross margin, adjusted for stock-based compensation expense and amortization expense, in this press release to provide investors with additional information regarding the company’s financial results.

The company has included non-GAAP operating margin, adjusted for stock-based compensation expense, amortization expense, costs related to the Japan closure activities and transaction costs (collectively, “non-GAAP operating margin”), in this press release to provide investors with additional information regarding the company’s financial results.

The company has included non-GAAP gross margin excluding Japan, adjusted for stock-based compensation expense and amortization expense in this press release to provide investors with additional information regarding the company’s financial results. The company has included non-GAAP operating margin excluding Japan, adjusted for stock-based compensation expense, amortization expense, costs related to the Japan closure activities and transaction costs (collectively, “non-GAAP operating margin excluding Japan”), in this press release to provide investors with additional information regarding the company’s financial results.

The company has included non-GAAP net income, adjusted for stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency, costs related to Japan closure activities and transaction costs (collectively, “non-GAAP net income”), in this press release to provide investors with additional information regarding the company’s financial results.

The company has provided below reconciliations of GAAP to non-GAAP net income, non-GAAP gross margin, non-GAAP gross margin excluding Japan, non-GAAP operating margin, non-GAAP operating margin excluding Japan, non-GAAP revenue growth by region and by service, and Adjusted EBITDA and Adjusted EBITDA margin, to the most directly comparable measures calculated and presented in accordance with GAAP. These non-GAAP measures are used by the company’s management and board of directors to understand and evaluate operating performance and trends and provide useful measures for period-to-period comparisons of the company’s business. Accordingly, the company believes that these non-GAAP measures provide useful information to investors and others in understanding and evaluating operating results in the same manner as our management and board of directors.

Conference Call

The company has scheduled a conference call to discuss its second quarter 2022 financial results and third quarter 2022 outlook today, August 5, 2022, at 8:30 a.m. EDT. To access the call in the U.S. please dial 877-709-8150 or outside the U.S. dial 201-689-8354 at least five minutes prior to the 8:30 a.m. EDT start time. No participant code is required. A simultaneous webcast of the call and accompanying presentation will be available via the investor relations section of the Protolabs website and the following link: https://edge.media-server.com/mmc/p/bfhv9mwu. A replay will be available for 14 days following the call on the investor relations section of the Protolabs website.

About Protolabs

Protolabs is the world’s leading provider of digital manufacturing services. The e-commerce-based company offers injection molding, CNC machining, 3D printing, and sheet metal fabrication to product developers, engineers, and supply chain teams across the globe. Protolabs serves customers using in-house production capabilities that bring unprecedented speed in tandem with Hubs, a Protolabs Company, which serves customers through its network of premium manufacturing partners. Together, they help companies bring new ideas to market with the fastest and most comprehensive digital manufacturing service in the world. Visit protolabs.com for more information.

Forward-Looking Statements

Statements contained in this press release regarding matters that are not historical or current facts are “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors which may cause the results of Protolabs to be materially different than those expressed or implied in such statements. Certain of these risk factors and others are described in the “Risk Factors” section within reports filed with the SEC. Other unknown or unpredictable factors also could have material adverse effects on Protolabs’ future results. The forward-looking statements included in this press release are made only as of the date hereof. Protolabs cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, Protolabs expressly disclaims any intent or obligation to update any forward-looking statements to reflect subsequent events or circumstances.

Proto Labs, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
				June 30,			December 31,
				2022			2021
				(Unaudited)
	Assets
	Current assets
		Cash and cash equivalents		$	54,666		$	65,929
		Short-term marketable securities			24,379			11,580
		Accounts receivable, net			82,469			80,051
		Inventory			15,051			13,161
		Income taxes receivable			2,627			1,321
		Prepaid expenses and other current assets			11,484			11,450
			Total current assets		190,676			183,492
	Property and equipment, net				260,631			280,346
	Goodwill				390,354			400,610
	Other intangible assets, net				34,026			37,998
	Long-term marketable securities				31,068			14,340
	Operating lease assets				4,037			5,578
	Finance lease assets				1,649			1,898
	Long-term assets held for sale				1,985			-
	Other long-term assets				4,223			4,320
			Total assets	$	918,649		$	928,582
	Liabilities and shareholders' equity
	Current liabilities
		Accounts payable		$	15,642		$	25,364
		Accrued compensation			16,687			13,704
		Accrued liabilities and other			24,011			11,980
		Current operating lease liabilities			2,140			3,298
		Current finance lease liabilities			436			550
			Total current liabilities		58,916			54,896
	Long-term operating lease liabilities				1,886			2,245
	Long-term finance lease liabilities				1,188			1,351
	Long-term deferred tax liabilities				30,177			35,892
	Other long-term liabilities				5,784			5,705
	Shareholders' equity				820,698			828,493
	Total liabilities and shareholders' equity			$	918,649		$	928,582

Proto Labs, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except share and per share amounts)
(Unaudited)
		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2022			2021			2022				2021
	Revenue
	Injection Molding	$	53,355		$	58,168		$	106,753			$	114,527
	CNC Machining		48,222			41,592			94,320				78,295
	3D Printing		19,963			18,170			39,635				35,405
	Sheet Metal		5,160			4,717			9,847				9,936
	Other		202			401			515				1,011
	Total revenue		126,902			123,048			251,070				239,174
	Cost of revenue		69,480			66,423			137,844				127,219
	Gross profit		57,422			56,625			113,226				111,955
	Operating expenses
	Marketing and sales		21,055			21,044			41,641				40,524
	Research and development		9,450			11,060			20,007				23,241
	General and administrative		16,522			8,417			33,293				27,825
	Closure of Japan business		5,194			-			5,194				-
	Total operating expenses		52,221			40,521			100,135				91,590
	Income from operations		5,201			16,104			13,091				20,365
	Other income (loss), net		1			137			(299	)			(176	)
	Income before income taxes		5,202			16,241			12,792				20,189
	Provision for income taxes		2,645			3,326			5,140				3,562
	Net income	$	2,557		$	12,915		$	7,652			$	16,627
	Net income per share:
	Basic	$	0.09		$	0.47		$	0.28			$	0.60
	Diluted	$	0.09		$	0.47		$	0.28			$	0.60
	Shares used to compute net income per share:
	Basic		27,530,739			27,735,732			27,515,583				27,600,684
	Diluted		27,536,823			27,744,870			27,524,019				27,741,464

Proto Labs, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
	Six Months Ended
	June 30,
	2022				2021
Operating activities
Net income	$	7,652			$	16,627
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		20,274				20,127
Stock-based compensation expense		8,428				10,561
Deferred taxes		(5,653	)			419
Changes in fair value of contingent consideration		-				(7,763	)
Impairments related to closure of Japan business		1,792				-
Other		32				269
Changes in operating assets and liabilities		(1,485	)			(19,511	)
Net cash provided by operating activities		31,040				20,729
Investing activities
Purchases of property, equipment and other capital assets		(6,030	)			(23,929	)
Cash used for acquisitions, net of cash acquired		-				(127,413	)
Purchases of marketable securities		(38,882	)			(15,159	)
Proceeds from sales of marketable securities		1,000				47,694
Proceeds from call redemptions and maturities of marketable securities		7,396				13,725
Net cash used in investing activities		(36,516	)			(105,082	)
Financing activities
Proceeds from exercises of stock options and other		2,311				3,838
Purchases of shares withheld for tax obligations		(1,615	)			(4,209	)
Repurchases of common stock		(5,239	)			(1,210	)
Principal repayments of finance lease obligations		(278	)			(275	)
Net cash used in financing activities		(4,821	)			(1,856	)
Effect of exchange rate changes on cash and cash equivalents		(966	)			515
Net decrease in cash and cash equivalents		(11,263	)			(85,694	)
Cash and cash equivalents, beginning of period		65,929				127,603
Cash and cash equivalents, end of period	$	54,666			$	41,909

Proto Labs, Inc.
Reconciliation of GAAP to Non-GAAP Net Income per Share
(In thousands, except share and per share amounts)
(Unaudited)
	Three Months Ended								Six Months Ended
	June 30,								June 30,
	2022				2021				2022				2021
Non-GAAP net income, adjusted for stock-based compensation expense,
amortization expense, unrealized (gain) loss on foreign currency,
costs related to Japan closure activities and transaction costs
GAAP net income	$	2,557			$	12,915			$	7,652			$	16,627
Add back:
Stock-based compensation expense		4,031				4,941				8,428				10,561
Amortization expense		1,527				1,490				3,072				3,033
Unrealized (gain) loss on foreign currency		271				(402	)			360				220
Costs related to Japan closure activities		5,194				-				5,194				-
Transaction costs 1		-				(7,655	)			-				(5,140	)
Total adjustments 2		11,023				(1,626	)			17,054				8,674
Income tax benefits on adjustments 3		(776	)			(575	)			(1,458	)			(3,576	)
Non-GAAP net income	$	12,804			$	10,714			$	23,248			$	21,725
Non-GAAP net income per share:
Basic	$	0.47			$	0.39			$	0.84			$	0.79
Diluted	$	0.46			$	0.39			$	0.84			$	0.78
Shares used to compute non-GAAP net income per share:
Basic		27,530,739				27,735,732				27,515,583				27,600,684
Diluted		27,536,823				27,744,870				27,524,019				27,741,464
1 Transaction costs include direct costs incurred in the Company's acquisition of Hubs, Inc. and the impact of changes in the fair value of acquisition-related contingent consideration obligations.
2 Stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency, costs related to Japan closure activities and transaction costs were included in the following GAAP consolidated statement of operations categories:
	Three Months Ended								Six Months Ended
	June 30,								June 30,
	2022				2021				2022				2021
Cost of revenue	$	870			$	1,011			$	1,799			$	1,988
Marketing and sales		813				929				1,550				1,782
Research and development		471				744				1,100				1,368
General and administrative		3,404				(3,908	)			7,051				3,316
Closure of Japan business		5,194				-				5,194				-
Total operating expenses		9,882				(2,235	)			14,895				6,466
Other (income) expense, net		271				(402	)			360				220
Total adjustments	$	11,023			$	(1,626	)		$	17,054			$	8,674
3 For the three- and six-month periods ended June 30, 2022 and 2021, income tax effects were calculated using the effective tax rate for the relevant jurisdictions. The Company's non-GAAP tax rates differ from its GAAP tax rates due primarily to the mix of activity incurred in domestic and foreign tax jurisdictions and removing effective tax rate benefits from stock-based compensation activity in the quarter.

Proto Labs, Inc.
Reconciliation of GAAP to Non-GAAP Gross Margin
(In thousands)
(Unaudited)
	Three Months Ended								Six Months Ended								Three Months Ended
	June 30,								June 30,								March 31,
	2022				2021				2022				2021				2022				2021
Revenue	$	126,902			$	123,048			$	251,070			$	239,174			$	124,168			$	116,126
Gross Profit		57,422				56,625				113,226				111,955				55,804				55,330
GAAP gross margin		45.2	%			46.0	%			45.1	%			46.8	%			44.9	%			47.6	%
Add back:
Stock-based compensation expense		528				668				1,115				1,303				587				635
Amortization expense		342				343				684				685				342				342
Total adjustments		870				1,011				1,799				1,988				929				977
Non-GAAP gross profit	$	58,292			$	57,636			$	115,025			$	113,943			$	56,733			$	56,307
Non-GAAP gross margin		45.9	%			46.8	%			45.8	%			47.6	%			45.7	%			48.5	%

Proto Labs, Inc.
Reconciliation of GAAP to Non-GAAP Gross Margin Excluding Japan
(In thousands)
(Unaudited)
	Three Months Ended								Six Months Ended
	June 30,								June 30,
	2022				2021				2022				2021
Revenue	$	126,902			$	123,048			$	251,070			$	239,174
Revenue excluding Japan	$	124,046			$	119,999			$	244,128			$	232,501
Gross Profit		57,422				56,625				113,226				111,955
GAAP gross margin		45.2	%			46.0	%			45.1	%			46.8	%
Less: Japan gross profit		1,063				1,125				3,102				2,694
Gross Profit excluding Japan		56,359				55,500				110,124				109,261
GAAP gross margin excluding Japan		45.4	%			46.3	%			45.1	%			47.0	%
Add back:
Stock-based compensation expense		528				668				1,115				1,303
Amortization expense		342				343				684				685
Less:
Japan stock-based compensation expense		22				22				47				45
Japan amortization expense		-				-				-				-
Total adjustments		848				989				1,752				1,943
Non-GAAP gross profit excluding Japan	$	57,207			$	56,489			$	111,876			$	111,204
Non-GAAP gross margin excluding Japan		46.1	%			47.1	%			45.8	%			47.8	%

Proto Labs, Inc.
Reconciliation of GAAP to Non-GAAP Operating Margin
(In thousands)
(Unaudited)
		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2022				2021				2022				2021
	Revenue	$	126,902			$	123,048			$	251,070			$	239,174
	Income from operations		5,201				16,104				13,091				20,365
	GAAP operating margin		4.1	%			13.1	%			5.2	%			8.5	%
	Add back:
	Stock-based compensation expense		4,031				4,941				8,428				10,561
	Amortization expense		1,527				1,490				3,072				3,033
	Transaction costs 1		-				(7,655	)			-				(5,140	)
	Costs related to Japan closure activities		5,194				-				5,194				-
	Total adjustments		10,752				(1,224	)			16,694				8,454
	Non-GAAP income from operations	$	15,953			$	14,880			$	29,785			$	28,819
	Non-GAAP operating margin		12.6	%			12.1	%			11.9	%			12.0	%
	1 Transaction costs include direct costs incurred in the Company's acquisition of Hubs, Inc. and the impact of changes in the fair value of acquisition-related contingent consideration obligations.

Proto Labs, Inc.
Reconciliation of GAAP to Non-GAAP Operating Margin Excluding Japan
(In thousands)
(Unaudited)
		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2022				2021				2022				2021
	Revenue	$	126,902			$	123,048			$	251,070			$	239,174
	Revenue excluding Japan	$	124,046			$	119,999			$	244,128			$	232,501
	Income from operations		5,201				16,104				13,091				20,365
	GAAP operating margin		4.1	%			13.1	%			5.2	%			8.5	%
	Less: Japan income from operations		(542	)			(696	)			4				(654	)
	Income from operations excluding Japan		5,743				16,800				13,087				21,019
	GAAP operating margin excluding Japan		4.6	%			14.0	%			5.4	%			9.0	%
	Add back:
	Stock-based compensation expense		4,031				4,941				8,428				10,561
	Amortization expense		1,527				1,490				3,072				3,033
	Transaction costs 1		-				(7,655	)			-				(5,140	)
	Costs related to Japan closure activities		5,194				-				5,194				-
	Less:
	Japan stock-based compensation expense		147				160				297				303
	Japan amortization expense		-				-				-				-
	Total adjustments		10,605				(1,384	)			16,397				8,151
	Non-GAAP income from operations excluding Japan	$	16,348			$	15,416			$	29,484			$	29,170
	Non-GAAP operating margin excluding Japan		13.2	%			12.8	%			12.1	%			12.5	%
	1 Transaction costs include direct costs incurred in the Company's acquisition of Hubs, Inc. and the impact of changes in the fair value of acquisition-related contingent consideration obligations.

Proto Labs, Inc.
Reconciliation of GAAP Net Income to EBITDA and Adjusted EBITDA
(In thousands)
(Unaudited)
		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2022				2021				2022				2021
	Revenue	$	126,902			$	123,048			$	251,070			$	239,174
	GAAP net income		2,557				12,915				7,652				16,627
	GAAP net income margin		2.0	%			10.5	%			3.0	%			7.0	%
	Add back:
	Amortization expense	$	1,527			$	1,490			$	3,072			$	3,033
	Depreciation expense		8,515				8,578				17,202				17,094
	Interest income, net		(149	)			(65	)			(194	)			(152	)
	Tax expense		2,645				3,326				5,140				3,562
	EBITDA		15,095				26,244				32,872				40,164
	EBITDA Margin		11.9	%			21.3	%			13.1	%			16.8	%
	Add back:
	Stock-based compensation expense		4,031				4,941				8,428				10,561
	Unrealized (gain) loss on foreign currency		271				(402	)			360				220
	Costs related to Japan closure activities		5,194				-				5,194				-
	Transaction costs 1		-				(7,655	)			-				(5,140	)
	Total adjustments		9,496				(3,116	)			13,982				5,641
	Adjusted EBITDA	$	24,591			$	23,128			$	46,854			$	45,805
	Adjusted EBITDA Margin		19.4	%			18.8	%			18.7	%			19.2	%
	1 Transaction costs include direct costs incurred in the Company's acquisition of Hubs, Inc. and the impact of changes in the fair value of acquisition-related contingent consideration obligations.

Proto Labs, Inc.
Comparison of GAAP to Non-GAAP Revenue Growth by Region
(In thousands)
(Unaudited)
			Three Months Ended June 30, 2022													Three Months Ended June 30, 2021
			GAAP			Foreign Currency1			Hubs Acquisition				Non-GAAP			GAAP			% Change3				% Change Organic4
	Revenues
	United States		$	100,655		$	-		$	-			$	100,655		$	95,344		5.6		%		5.6		%
	Europe			23,391			2,225			-				25,616			24,655		(5.1	)			3.9
	Japan			2,856			524			-				3,380			3,049		(6.3	)			10.9
	Total Revenue		$	126,902		$	2,749		$	-			$	129,651		$	123,048		3.1		%		5.4		%
			Six Months Ended June 30, 2022													Six Months Ended June 30, 2021
			GAAP			Foreign Currency1			Hubs Acquisition2				Non-GAAP			GAAP			% Change3				% Change Organic4
	Revenues
	United States		$	196,151		$	-		$	(1,049	)		$	195,102		$	186,397		5.2		%		4.7		%
	Europe			47,977			3,376			(1,279	)			50,074			46,104		4.1				8.6
	Japan			6,942			916			-				7,858			6,673		4.0				17.8
	Total Revenue		$	251,070		$	4,292		$	(2,328	)		$	253,034		$	239,174		5.0		%		5.8		%
	1 Revenue for the three- and six-month periods ended June 30, 2022 has been recalculated using 2021 foreign currency exchange rates in effect during comparable periods to provide information useful in evaluating the underlying business trends excluding the impact of changes in foreign currency exchange rates.
	2 Revenue for the six-month period ended June 30, 2022 has been recalculated to exclude revenue earned from the Company's acquisition of Hubs, Inc. for the period from January 1, 2022 to January 21, 2022 to provide information useful in evaluating the underlying business trends excluding the impact of acquisitions. The Hubs, Inc. acquisition occurred on January 22, 2021 and was included in 2021 revenue after that date.
	3 This column presents the percentage change from GAAP revenue for the three- and six-month periods ended June 30, 2021 to GAAP revenue for the three- and six-month periods ended June 30, 2022.
	4 This column presents the percentage change from GAAP revenue for the three- and six-month periods ended June 30, 2021 to non-GAAP revenue for the three- and six-month periods ended June 30, 2022 (as recalculated using the foreign currency exchange rates in effect during the three-month period ended June 30, 2021, excluding the impact of Hubs, Inc. acquisition) in order to provide a constant-currency comparison.

Proto Labs, Inc.
Comparison of GAAP to Non-GAAP Revenue Growth by Service Line
(In thousands)
(Unaudited)
		Three Months Ended June 30, 2022													Three Months Ended June 30, 2021
		GAAP			Foreign Currency1			Hubs Acquisition				Non-GAAP			GAAP			% Change3				% Change Organic4
Revenues
Injection Molding		$	53,355		$	1,541		$	-			$	54,896		$	58,168		(8.3	)	%		(5.6	)	%
CNC Machining			48,222			717			-				48,939			41,592		15.9				17.7
3D Printing			19,963			490			-				20,453			18,170		9.9				12.6
Sheet Metal			5,160			-			-				5,160			4,717		9.4				9.4
Other			202			1			-				203			401		(49.6	)			(49.4	)
Total Revenue		$	126,902		$	2,749		$	-			$	129,651		$	123,048		3.1		%		5.4		%
		Six Months Ended June 30, 2022													Six Months Ended June 30, 2021
		GAAP			Foreign Currency1			Hubs Acquisition2				Non-GAAP			GAAP			% Change3				% Change Organic4
Revenues
Injection Molding		$	106,753		$	2,425		$	(189	)		$	108,989		$	114,527		(6.8	)	%		(4.8	)	%
CNC Machining			94,320			1,113			(1,637	)			93,796			78,295		20.5				19.8
3D Printing			39,635			750			(408	)			39,977			35,405		11.9				12.9
Sheet Metal			9,847			-			(84	)			9,763			9,936		(0.9	)			(1.7	)
Other			515			4			(10	)			509			1,011		(49.1	)			(49.6	)
Total Revenue		$	251,070		$	4,292		$	(2,328	)		$	253,034		$	239,174		5.0		%		5.8		%
1 Revenue for the three- and six-month periods ended June 30, 2022 has been recalculated using 2021 foreign currency exchange rates in effect during comparable periods to provide information useful in evaluating the underlying business trends excluding the impact of changes in foreign currency exchange rates.
2 Revenue for the six-month period ended June 30, 2022 has been recalculated to exclude revenue earned from the Company's acquisition of Hubs, Inc. for the period from January 1, 2022 to January 21, 2022 to provide information useful in evaluating the underlying business trends excluding the impact of acquisitions. The Hubs, Inc. acquisition occurred on January 22, 2021 and was included in 2021 revenue after that date.
3 This column presents the percentage change from GAAP revenue for the three- and six-month periods ended June 30, 2021 to GAAP revenue for the three- and six-month periods ended June 30, 2022.
4 This column presents the percentage change from GAAP revenue for the three- and six-month periods ended June 30, 2021 to non-GAAP revenue for the three- and six-month periods ended June 30, 2022 (as recalculated using the foreign currency exchange rates in effect during the three-month period ended June 30, 2021, excluding the impact of Hubs, Inc. acquisition) in order to provide a constant-currency comparison.

Proto Labs, Inc.
Product Developer Information
(Unaudited)
					Three Months Ended				Six Months Ended
					June 30,				June 30,
					2022		2021		2022		2021
	Unique product developers and engineers served				24,058		23,253		36,878		35,065

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220805005030/en/

Investor Relations

Protolabs

Ryan Johnsrud, 612-225-4873

Manager – Investor Relations and FP&A

ryan.johnsrud@protolabs.com

Media

Protolabs

Brent Renneke, 763-479-7704

PR & Media Strategist

brent.renneke@protolabs.com

Source: Proto Labs, Inc.

FAQ

What were Proto Labs' earnings results for Q2 2022?

Proto Labs reported Q2 2022 revenue of $126.9 million with GAAP EPS of $0.09 and Non-GAAP EPS of $0.46.

How did Hubs perform in Q2 2022 for Proto Labs?

Hubs generated $11.3 million in revenue for Q2 2022, representing a year-over-year growth of 26.3%.

What is the outlook for Proto Labs after Q2 2022 results?

Proto Labs will discuss its Q3 2022 outlook during the conference call on August 5, 2022.

What was the gross margin for Proto Labs in Q2 2022?

The gross margin for Q2 2022 was 45.2%, an increase from 44.9% in Q1 2022.