プロトラブズの適時開示・決算・その他

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): August 4, 2023

Proto Labs, Inc.

(Exact name of registrant as specified in its charter)

Minnesota

001-35435

41-1939628

(State or other jurisdiction
of incorporation)

(Commission File Number)

(IRS Employer
Identification Number)


5540 Pioneer Creek Drive Maple Plain, Minnesota						55359
(Address of principal executive offices)						(Zip Code)

Registrant’s telephone number, including area code:						(763) 479-3680


Not Applicable
(Former name or former address, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, Par Value $0.001 Per Share	PRLB	New York Stock Exchange

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


			☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

			☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

			☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

			☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02.			Results of Operations and Financial Condition.

On August 4, 2023, Proto Labs, Inc. issued a press release announcing its second quarter 2023 financial results. A copy of the press release is furnished as Exhibit 99.1 to this report and incorporated herein by reference.


Item 9.01.			Financial Statements and Exhibits.

(d)Exhibits


99.1			Press release of Proto Labs, Inc. dated August 4 , 2023
104			Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Proto Labs, Inc.

Date:

August 4, 2023

By:

/s/ Daniel Schumacher

Daniel Schumacher

Chief Financial Officer

EX-99.1 2 prlb-20230804xexx991.htm EX-99.1 Document

Exhibit 99.1

Protolabs Reports Financial Results for the Second Quarter of 2023

Revenue of $122.3 million in the Second Quarter of 2023

Network revenue of $20.2 million; a 79.3% YoY increase

GAAP Loss Per Share of $0.01; Non-GAAP Earnings Per Share of $0.33

MAPLE PLAIN, Minn. – August 4, 2023 – Proto Labs, Inc. (the "Company" or "Protolabs") (NYSE: PRLB), the world’s leading provider of digital manufacturing services, today announced financial results for the second quarter ended June 30, 2023.

Second Quarter 2023 Highlights:

•Revenue for the second quarter of 2023 was $122.3 million, representing a 3.7 percent decrease compared to revenue of $126.9 million in the second quarter of 2022.

•Revenue generated from our digital network powered by Hubs was $20.2 million in the second quarter, representing growth of 79.3 percent over the second quarter of 2022 and 17.6 percent sequential growth compared to the first quarter of 2023.

•Net loss for the second quarter of 2023 was $0.4 million, or $0.01 per diluted share.

•Non-GAAP net income was $8.7 million, or $0.33 per diluted share. See “Non-GAAP Financial Measures” below.

“Our broad customer offer, powered by internal digital factories and network manufacturing partners, allows us to offer customers a differentiated value proposition and serve their varying needs in any economic climate,” said Rob Bodor, President and Chief Executive Officer. “Amidst the continued contraction of manufacturing, Protolabs improved gross and operating margins sequentially while continuing to delight our customers and advance our 2023 strategic initiatives.”

Additional Second Quarter 2023 Highlights:

•Protolabs served 23,377 unique product developers during the quarter.

•The Company repurchased $9.0 million of shares during the quarter.

•Gross margin was 43.4 percent of revenue in the second quarter of 2023.

•Non-GAAP gross margin was 44.1 percent of revenue in the second quarter of 2023, representing a sequential increase of 70 basis points. See “Non-GAAP Financial Measures” below.

•EBITDA was $11.4 million, or 9.3 percent of revenue, in the second quarter of 2023, compared to $15.1 million, or 11.9 percent of revenue, in the second quarter of 2022. See “Non-GAAP Financial Measures” below.

•Adjusted EBITDA was $19.2 million, or 15.7% of revenue, in the second quarter of 2023, compared to $24.6 million, or 19.4% of revenue, in the second quarter of 2022. See “Non-GAAP Financial Measures” below.

•Cash and investments balance was $102.8 million as of June 30, 2023.

“Driven by the current economic climate, through the first half of 2023 demand for our longer lead times and lower-priced offerings has outpaced demand for our quick-turn offer, and we will continue to adapt our operations to align with demand,” said Dan Schumacher, Chief Financial Officer. “We are among the most profitable and positive cash generating digital manufacturers, enabling us to continue to invest in future growth among economic volatility and dynamic customer preferences.”

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 (collectively, “non-GAAP revenue growth”). Management believes these metrics, when viewed in conjunction with the comparable GAP 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 and costs related to the Japan closure activities (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 and costs related to the Japan closure activities (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 and costs related to the closure of Japan (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, and costs related to the Japan closure activities (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 net income, adjusted for stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency and costs related to the closure of Japan (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, 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 2023 financial results and third quarter 2023 outlook today, August 4, 2023 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/ik5odgi6. 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 fastest and most comprehensive digital manufacturing service in the world. Our digital factories produce low-volume parts in days while our digital network of manufacturing partners powered by Hubs unlocks advanced capabilities and volume pricing at higher quantities. The result? One manufacturing source—from prototyping to production—for product developers, engineers, and supply chain teams across the globe. See what's next at protolabs.com.

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.

Source: Proto Labs, Inc.

Investor Relations Contact

Protolabs

Ryan Johnsrud, 612-225-4873

Manager – Investor Relations and FP&A

ryan.johnsrud@protolabs.com

Media Contact

Protolabs

Brent Renneke, 763-479-7704

PR & Media Strategist

brent.renneke@protolabs.com

Proto Labs, Inc.

Condensed Consolidated Balance Sheets

(In thousands)



	June 30, 2023		December 31, 2022
	(Unaudited)
Assets
Current assets
Cash and cash equivalents	$	66,493	$	56,558
Short-term marketable securities	19,945		23,568
Accounts receivable, net	75,034		76,225
Inventory	14,311		13,578
Income taxes receivable	868		4,042
Prepaid expenses and other current assets	8,501		12,597
Total current assets	185,152		186,568

Property and equipment, net	248,614		257,785
Goodwill	273,991		273,991
Other intangible assets, net	28,353		31,250
Long-term marketable securities	16,344		26,419
Operating lease assets	3,084		3,844
Finance lease assets	16,934		17,532
Other long-term assets	4,738		4,779
Total assets	$	777,210	$	802,168

Liabilities and shareholders' equity
Current liabilities
Accounts payable	$	16,474	$	17,356
Accrued compensation	12,486		12,743
Accrued liabilities and other	19,155		22,384
Current operating lease liabilities	1,209		1,561
Current finance lease liabilities	16,549		17,537
Income taxes payable	348		—
Total current liabilities	66,221		71,581

Long-term operating lease liabilities	1,833		2,255
Long-term finance lease liabilities	745		—
Long-term deferred tax liabilities	20,790		26,322
Other long-term liabilities	4,936		4,362

Shareholders' equity	682,685		697,648
Total liabilities and shareholders' equity	$	777,210	$	802,168

Proto Labs, Inc.

Condensed Consolidated Statements of Operations

(In thousands, except share and per share amounts)

(Unaudited)



	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Revenue
Injection Molding	$	48,819	$	53,355	$	100,767	$	106,753
CNC Machining	48,297		48,222		96,401		94,320
3D Printing	21,005		19,963		42,330		39,635
Sheet Metal	3,939		5,160		8,187		9,847
Other Revenue	205		202		439		515
Total Revenue	122,265		126,902		248,124		251,070

Cost of revenue	69,142		69,480		141,225		137,844
Gross profit	53,123		57,422		106,899		113,226

Operating expenses
Marketing and sales	21,730		21,055		44,181		41,641
Research and development	9,865		9,450		20,542		20,007
General and administrative	15,822		16,522		32,655		33,293
Closure of Japan business	98		5,194		164		5,194
Total operating expenses	47,515		52,221		97,542		100,135
Income from operations	5,608		5,201		9,357		13,091
Other (loss) income, net	(3,368)		1		(2,078)		(299)
Income before income taxes	2,240		5,202		7,279		12,792
Provision for income taxes	2,623		2,645		5,003		5,140
Net (loss) income	$	(383)	$	2,557	$	2,276	$	7,652

Net (loss) income per share:
Basic	$	(0.01)	$	0.09	$	0.09	$	0.28
Diluted	$	(0.01)	$	0.09	$	0.09	$	0.28

Shares used to compute net (loss) income per share:
Basic	26,210,478		27,530,739		26,414,467		27,515,583
Diluted	26,210,478		27,536,823		26,445,427		27,524,019

Proto Labs, Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)



	Six Months Ended June 30,
	2023		2022
Operating activities
Net income	$	2,276	$	7,652
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	18,883		20,274
Stock-based compensation expense	7,370		8,428
Deferred taxes	(5,605)		(5,653)
Interest on finance lease obligations	568		-
Loss on foreign currency translation	3,906		-
Impairments related to closure of Japan business	-		1,792
Gain on disposal of property and equipment	(428)		-
Other	215		32
Changes in operating assets and liabilities:	4,682		(1,485)
Net cash provided by operating activities	31,867		31,040

Investing activities
Purchases of property, equipment and other capital assets	(6,829)		(6,030)
Proceeds from sales of property, equipment and other capital assets	623		-
Purchases of marketable securities	-		(38,882)
Proceeds from sales of marketable securities	—		1,000
Proceeds from call redemptions and maturities of marketable securities	14,020		7,396
Net cash provided by (used in) investing activities	7,814		(36,516)

Financing activities
Proceeds from exercises of stock options	1,986		2,311
Purchases of shares withheld for tax obligations	(1,425)		(1,615)
Repurchases of common stock	(30,064)		(5,239)
Principal repayments of finance lease obligations	(163)		(278)
Net cash used in financing activities	(29,666)		(4,821)
Effect of exchange rate changes on cash and cash equivalents	(80)		(966)
Net increase (decrease) in cash and cash equivalents	9,935		(11,263)
Cash and cash equivalents, beginning of period	56,558		65,929
Cash and cash equivalents, end of period	$	66,493	$	54,666

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 June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Non-GAAP net income, adjusted for stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency and costs related to Japan closure activities
GAAP net (loss) income	$	(383)	$	2,557	$	2,276	$	7,652
Add back:
Stock-based compensation expense	3,675		4,031		7,370		8,428
Amortization expense	1,484		1,527		3,010		3,072
Unrealized (gain) loss on foreign currency	187		271		115		360
Costs related to Japan closure activities	4,004		5,194		4,070		5,194
Total adjustments 1	9,350		11,023		14,565		17,054
Income tax benefits on adjustments 2	(296)		(776)		(298)		(1,458)
Non-GAAP net income	$	8,671	$	12,804	$	16,543	$	23,248


Non-GAAP net income per share:
Basic	$	0.33	$	0.47	$	0.63	$	0.84
Diluted	$	0.33	$	0.46	$	0.63	$	0.84

Shares used to compute non-GAAP net income per share:
Basic	26,210,478		27,530,739		26,414,467		27,515,583
Diluted	26,224,562		27,536,823		26,445,427		27,524,019

1Stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency and costs related to Japan closure activities were included in the following GAAP consolidated statement of operations categories:


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022

Cost of revenue	$	803	$	870	$	1,611	$	1,799

Marketing and sales	855		813		1,547		1,550
Research and development	641		471		1,212		1,100
General and administrative	2,861		3,404		6,010		7,051
Closure of Japan business	98		5,194		164		5,194
Total operating expenses	4,455		9,882		8,933		14,895

Other income (loss), net	4,092		271		4,021		360
Total adjustments	$	9,350	$	11,023	$	14,565	$	17,054

2For the three and six months ended June 30, 2023 and 2022, 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 June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Revenue	$	122,265		$	126,902		$	248,124		$	251,070
Gross profit	53,123			57,422			106,899			113,226
GAAP gross margin	43.4		%	45.2		%	43.1		%	45.1		%
Add back:
Stock-based compensation expense	461			528			927			1,115
Amortization expense	342			342			684			684
Total adjustments	803			870			1,611			1,799
Non-GAAP gross profit	$	53,926		$	58,292		$	108,510		$	115,025
Non-GAAP gross margin	44.1		%	45.9		%	43.7		%	45.8		%

Proto Labs, Inc.

Reconciliation of GAAP to Non-GAAP Gross Margin Excluding Japan

(In thousands)

(Unaudited)



	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Revenue	$	122,265		$	126,902		$	248,124		$	251,070
Revenue excluding Japan	$	122,265		$	124,046		$	248,124		$	244,128
Gross profit	53,123			57,422			106,899			113,226
GAAP gross margin	43.4		%	45.2		%	43.1		%	45.1		%
Less: Japan gross profit	-			1,063			-			3,102
Gross Profit excluding Japan	53,123			56,359			106,899			110,124
GAAP gross margin excluding Japan	43.4		%	45.4		%	43.1		%	45.1		%
Add back:
Stock-based compensation expense	461			528			927			1,115
Amortization expense	342			342			684			684
Less:
Japan stock-based compensation expense	-			22			-			47
Japan amortization expense	-			-			-			-
Total adjustments	803			848			1,611			1,752
Non-GAAP gross profit excluding Japan	$	53,926		$	57,207		$	108,510		$	111,876
Non-GAAP gross margin excluding Japan	44.1		%	46.1		%	43.7		%	45.8		%

Proto Labs, Inc.

Reconciliation of GAAP to Non-GAAP Operating Margin

(In thousands)

(Unaudited)



	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Revenue	$	122,265		$	126,902		$	248,124		$	251,070
Income from operations	5,608			5,201			9,357			13,091
GAAP operating margin	4.6		%	4.1		%	3.8		%	5.2		%
Add back:
Stock-based compensation expense	3,675			4,031			7,370			8,428
Amortization expense	1,484			1,527			3,010			3,072
Costs related to Japan closure activities	98			5,194			164			5,194
Total adjustments	5,257			10,752			10,544			16,694
Non-GAAP income from operations	$	10,865		$	15,953		$	19,901		$	29,785
Non-GAAP operating margin	8.9		%	12.6		%	8.0		%	11.9		%

Proto Labs, Inc.

Reconciliation of GAAP to Non-GAAP Operating Margin Excluding Japan

(In thousands)

(Unaudited)



	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Revenue	$	122,265		$	126,902		$	248,124		$	251,070
Revenue excluding Japan	$	122,265		$	124,046		$	248,124		$	244,128
Income from operations	5,608			5,201			9,357			13,091
GAAP operating margin	4.6		%	4.1		%	3.8		%	5.2		%
Less: Japan (loss) income from operations	(128)			(542)			(474)			4
Income from operations excluding Japan	5,736			5,743			9,831			13,087
GAAP operating margin excluding Japan	4.7		%	4.6		%	4.0		%	5.4		%
Add back:
Stock-based compensation expense	3,675			4,031			7,370			8,428
Amortization expense	1,484			1,527			3,010			3,072
Costs related to Japan closure activities	98			5,194			164			5,194
Less:
Japan stock-based compensation expense	7			147			17			297
Japan amortization expense	-			-			-			-
Total adjustments	5,250			10,605			10,527			16,397
Non-GAAP income from operations excluding Japan	$	10,986		$	16,348		$	20,358		$	29,484
Non-GAAP operating margin excluding Japan	9.0		%	13.2		%	8.2		%	12.1		%

Proto Labs, Inc.

Reconciliation of GAAP Net Income to EBITDA and Adjusted EBITDA

(In thousands)

(Unaudited)



	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Revenue	$	122,265		$	126,902		$	248,124		$	251,070
GAAP net (loss) income	(383)			2,557			2,276			7,652
GAAP net (loss) income margin	(0.3		%)	2.0		%	0.9		%	3.0		%
Add back:
Amortization expense	$	1,484		$	1,527		$	3,010		$	3,072
Depreciation expense	8,011			8,515			15,873			17,202
Interest income, net	(372)			(149)			(722)			(194)
Provision for income taxes	2,623			2,645			5,003			5,140
EBITDA	11,363			15,095			25,440			32,872
EBITDA Margin	9.3		%	11.9		%	10.3		%	13.1		%
Add back:
Stock-based compensation expense	3,675			4,031			7,370			8,428
Unrealized (gain) loss on foreign currency	187			271			115			360
Costs related to Japan closure activities	4,004			5,194			4,070			5,194
Total adjustments	7,866			9,496			11,555			13,982
Adjusted EBITDA	$	19,229		$	24,591		$	36,995		$	46,854
Adjusted EBITDA Margin	15.7		%	19.4		%	14.9		%	18.7		%

Proto Labs, Inc.

Comparison of GAAP to Non-GAAP Revenue Growth by Region

(In thousands)

(Unaudited)



	Three Months Ended June 30, 2023						Three Months Ended June 30, 2022		% Change2		% Change Organic3
	GAAP		Foreign Currency1		Non-GAAP		GAAP
Revenues
United States	$	96,321	$	-	$	96,321	$	100,655	(4.3	%)	(4.3	%)
Europe	25,944		512		26,456		23,391		10.9	%	13.1	%
Japan	-		-		-		2,856		(100.0	%)	(100.0	%)
Total revenue	$	122,265	$	512	$	122,777	$	126,902	(3.7	%)	(3.3	%)



	Six Months Ended June 30, 2023						Six Months Ended June 30, 2022		% Change2		% Change Organic3
	GAAP		Foreign Currency1		Non-GAAP		GAAP
Revenues
United States	$	194,067	$	-	$	194,067	$	196,151	(1.1	%)	(1.1	%)
Europe	54,057		2,977		57,034		47,977		12.7	%	18.9	%
Japan	-		-		-		6,942		(100.0	%)	(100.0	%)
Total revenue	$	248,124	$	2,977	$	251,101	$	251,070	(1.2	%)	—	%

1Revenue for the three and six months ended June 30, 2023 has been recalculated using 2022 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.

2This column presents the percentage change from GAAP revenue for the three and six months ended June 30, 2022 to GAAP revenue for the three and six months ended June 30, 2023.

3This column presents the percentage change from GAAP revenue for the three and six months ended June 30, 2022 to non-GAAP revenue for the three and six months ended June 30, 2023 (as recalculated using the foreign currency exchange rates in effect during the three and six months ended June 30, 2022) 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, 2023						Three Months Ended June 30, 2022		% Change2		% Change Organic3
	GAAP		Foreign Currency1		Non-GAAP		GAAP
Revenues
Injection Molding	$	48,819	$	257	$	49,076	$	53,355	(8.5)	%	(8.0)	%
CNC Machining	48,297		125		48,422		48,222		0.2		0.4
3D Printing	21,005		131		21,136		19,963		5.2		5.9
Sheet Metal	3,939		1		3,940		5,160		(23.7)		(23.6)
Other Revenue	205		(2)		203		202		1.5		0.5
Total Revenue	$	122,265	$	512	$	122,777	$	126,902	(3.7	%)	(3.3	%)



	Six Months Ended June 30, 2023						Six Months Ended June 30, 2022		% Change2		% Change Organic3
	GAAP		Foreign Currency1		Non-GAAP		GAAP
Revenues
Injection Molding	$	100,767	$	1,436	$	102,203	$	106,753	(5.6)	%	(4.3)	%
CNC Machining	96,401		860		97,261		94,320		2.2		3.1
3D Printing	42,330		667		42,997		39,635		6.8		8.5
Sheet Metal	8,187		11		8,198		9,847		(16.9)		(16.7)
Other Revenue	439		3		442		515		(14.8)		(14.2)
Total Revenue	$	248,124	$	2,977	$	251,101	$	251,070	(1.2	%)	—	%

2This column presents the percentage change from GAAP revenue for the three and six months ended June 30, 2022 to GAAP revenue for the three and six months ended June 30, 2023.

Proto Labs, Inc.

Product Developer Information

(Unaudited)



	Three months ended June 30,		Six months ended June 30,
	2023	2022	2023	2022
Unique product developers and engineers served	23,377	24,058	35,743	36,878