Protolabs Registers 7% Revenue Decline In Q4 Amid Macro Headwinds And Supply Chain Crisis

Proto Labs Inc PRLB reported a fourth-quarter revenue decline of 6.5% year-over-year to $115.6 million, beating the consensus of $109.8 million.
Revenue generated from its digital network powered by Hubs was $14.8 million, up 49.6% Y/Y.
Adjusted EPS of $0.26 beat the consensus of $0.21.
Protolabs served 22,205 unique product developers and engineers during the quarter.
Adjusted gross margin decreased by 280 bps to 42.8%.
Adjusted EBITDA margin declined by 550 bps to 12.5%.
Cash and investments balance was $106.5 million.
"In a challenging economic environment, impacted by inflation, slowing growth and continued supply chain challenges, our Protolabs and Hubs teams continued to delight our customers as together we build the most comprehensive digital manufacturing capabilities in the world," said Rob Bodor, President and Chief Executive Officer. "Following the launch of several new offers in 2022 and early 2023, we are well-positioned to extend our market differentiation with quality internal manufacturing at speed and the expansive breadth and depth afforded by our curated network of manufacturing partners."
On Feb. 7, 2023, Protolabs' Board approved a $50 million increase to the existing share repurchase program, bringing the total amount authorized under the program to $250 million.
Price Action: PRLB shares closed lower by 4.34% at $30.43 on Thursday.