Protolabs Sees Softer Start To 2024 Despite Hitting $500M Milestone Revenue In 2023: Details

Proto Labs, Inc. PRLB reported fourth-quarter fiscal 2023 revenue growth of 8.2% year-over-year to $125.05 million, beating the consensus of $122.72 million.

Protolabs Network revenue increased 52% YoY to $22.5 million. The digital manufacturing company posted an adjusted EPS of $0.46, an improvement from $0.26 YoY, beating the consensus of $0.30.

The gross profit increased 14.8% Y/Y to $55.81 million, and the margin expanded by 260 bps to 44.6%. Adjusted gross margin expanded to 45.3% from 42.8% for the quarter.

Adjusted operating income increased 97.1% Y/Y to $14.06 million, and the margin was 11.2%, up from 6.2% a year ago.

Adjusted EBITDA increased 53.8% Y/Y to $22.29 million, and the margin expanded by 530 bps to 17.8%.

Protolabs’ cash flow from operations for the fiscal totaled $73.27 million, compared to $62.09 a year ago. Cash and cash equivalents were $83.79 million as of December 31, 2023.

Protolabs repurchased $44 million in common shares during the year.

Rob Bodor, President and Chief Executive Officer, said, “For the full year, we generated revenue above $500 million for the first time in our 25-year history, while delivering improved earnings, robust cash flow, and substantial capital returned to shareholders.”

1Q Outlook: Protolabs expects to generate revenue between $120 million-$128 million versus $127.7 million consensus and sees Adjusted EPS of $0.26-$0.34 versus $0.34 consensus.

The guidance reflects a softer start to 2024 due to December 2023 and early January 2024 order levels being lower than historical periods.

Price Action: PRLB shares are trading higher by 2.29% at $38.04 on the last check Friday.