3D Systems(DDD) - 2023 Q4 - Annual Results

Revenue Performance - Q4 2023 revenue was $114,848, a decrease of 13.5% compared to Q4 2022, primarily due to softness in dental orthodontics and delayed customer capex investments [2]. - Full year 2023 revenue totaled$ 488,069, down 9.3% from $538,031 in 2022, driven by lower sales in dental orthodontics and slower printer hardware sales [3]. - Total revenue for 2023 was$ 488.1 million, a decrease of 9.3% from $538.0 million in 2022 [27]. - Total revenue for Q4 2023 was$ 114,848, a decrease of 13.5% from $132,732 in Q4 2022 [29]. Profitability and Margins - Q4 2023 gross profit margin was 40.4%, while Non-GAAP gross profit margin increased to 41.9% from 40.9% in the prior year [8]. - Gross profit for 2023 was$ 198.8 million, representing a gross profit margin of 40.7%, compared to $214.2 million and 39.8% in 2022 [27]. - GAAP gross profit for 2023 was$ 198,812 thousand, with a gross profit margin of 40.7%, compared to $214,233 thousand and 39.8% in 2022 [35]. - Non-GAAP gross profit for 2023 was$ 200,745 thousand, with a gross profit margin of 41.1%, compared to $214,247 thousand and 39.8% in 2022 [35]. Net Loss and Expenses - The net loss for Q4 2023 was$ 300,412, significantly higher than the loss of $25,553 in Q4 2022, largely due to a non-cash impairment of goodwill [8]. - The net loss attributable to 3D Systems Corporation for 2023 was$ 370.4 million, compared to a net loss of $122.7 million in 2022 [27]. - The net loss attributable to 3D Systems Corporation for Q4 2023 was$ (300,412), compared to a net loss of $(25,553) in Q4 2022 [29]. - Operating expenses surged to$ 613.1 million in 2023, up from $331.3 million in 2022, primarily due to$ 311.3 million in impairment charges [27]. - Operating expenses for Q4 2023 totaled $381,942, significantly higher than$ 82,674 in Q4 2022, primarily due to impairments of goodwill and intangible assets [29]. Cash and Balance Sheet - Cash and cash equivalents as of December 31, 2023, were $331,525, down$ 237,212 from the previous year, primarily due to the repurchase of Convertible Notes [13]. - Cash and cash equivalents decreased to $331.5 million as of December 31, 2023, down from$ 388.1 million a year earlier [25]. - The company reported a cash balance of $333,111 at the end of 2023, down from$ 391,975 at the end of 2022 [30]. - Total assets decreased significantly to $980.2 million in 2023 from$ 1.4 billion in 2022 [25]. - Long-term debt decreased to $319.4 million in 2023, down from$ 449.5 million in 2022 [25]. Future Outlook - For 2024, the company expects revenue guidance of $475 million to$ 505 million, with a Non-GAAP gross profit margin target of 42% to 44% [12]. - The company plans to prioritize restructuring efforts, including headcount reductions and site consolidations, to improve gross margins and achieve positive adjusted EBITDA in 2024 [6]. - Future outlook includes continued focus on product development and market expansion strategies [36]. Segment Performance - Healthcare Solutions revenue decreased by 18.3% to $213,216 in 2023, while Industrial Solutions revenue decreased by 0.8% to$ 274,853 [9]. - Healthcare Solutions revenue for Q4 2023 was $51,188, a decrease of 15.7% from$ 60,694 in Q4 2022 [32]. - Industrial Solutions revenue for Q4 2023 was $63,660, down 11.6% from$ 72,038 in Q4 2022 [32]. Adjusted Metrics - Adjusted EBITDA for Q4 2023 was a loss of $12,260, a decrease of$ 7,452 compared to the same period last year [8]. - Adjusted EBITDA for the year ended 2023 was $(24,525) thousand, compared to$ (5,781) thousand for the year ended 2022 [37]. - Non-GAAP diluted loss per share for Q4 2023 was $(2.30), compared to$ (0.20) for Q4 2022 [39].