3D Systems’ Revenue Exceeds Expectations for 2017
Michael Molitch-Hou posted on March 16, 2018 |
In its latest financial report, 3D Systems’ finances have beat previous year’s projections.

Since the 3D printing bubble of 2014, investors have been hoping that stocks bounce back as the technology realizes its true potential in the industrial space. The recovery has been a slow one, with the two biggest pure 3D-printing players, Stratasys and 3D Systems, remaining stagnant for some time since the bubble burst.

With the release of its 2017 earnings, 3D Systems has, however, beat projections, reporting revenues of $177.3 million for Q4 2017, a year-over-year increase of 6.9 percent. For the full year, the company earned $646.1 million, a 2.1 percent increase from the $633 million earned in 2016. 

Comparative analysis based on 3D Systems’ financial results in the past 12 quarters. (Image courtesy of TenLinks.)
Comparative analysis based on 3D Systems’ financial results in the past 12 quarters. (Image courtesy of TenLinks.)

The largest growth was seen in the Healthcare division, which received heavy focus when its new CEO, Vyomesh Joshi, took over 3D Systems in 2016. Revenues for Healthcare increased 13 percent to $50.4 million year-over-year for the quarter and 18 percent up to $188.7 million for the full year.

On-demand manufacturing revenues rose 10 percent to $26.5 million, while software increased 8 percent to $26 million and material revenues rose 8 percent to $42.8 million for the quarter. For the year, material revenue went up 8 percent as well, up to $168.8 million.

Comparative analysis based on 3D Systems’ financial results in the past 12 quarters. (Image courtesy of TenLinks.)
Comparative analysis based on 3D Systems’ financial results in the past 12 quarters. (Image courtesy of TenLinks.)

Investment in new strategies, IT and R&D saw an increase in operating expenses, 15.7 percent to $91.2 million, and R&D expenses had a 9 percent increase to $23 million. The company has $136.3 million cash on hand, which is a drop from $184.9 million from 2016.

“Continued demand for our production printers and materials reaffirms our belief that our industry is at an inflection point in the transition from prototyping to production,” Joshi said. “We see tremendous market opportunities for 3D production. With focused innovation and execution, we are delivering solutions for key verticals, use case by use case, to drive profitable growth and make 3D production real.”

“We are seeing clear progress in our initiatives to drive operational excellence and establish an appropriate cost structure,” John McMullen, executive vice president and chief financial officer, said. “We still have a lot of work to do, but we are making improvements in our key processes, infrastructure and operations. We expect continued positive cash generation and improved profitability while we make investments in IT, go to market and innovation.”

Joshi explained that his overall strategy has been to revitalize the company vertical by vertical, use case by use case. He’s already begun to demonstrate this with the Healthcare division and, earlier this year, 3D Systems announced the release of a Figure 4 setup specifically targeted toward the dental industry. If the company can extrapolate its success in health care to other verticals, such as aerospace and automotive, its stock may ultimately recover in the long term—as long as the entire economic system doesn’t collapse before then, perhaps in part due to further Wall Street deregulation. Whether or not it will hit the highs of 2014 may be unlikely, barring any Google- or Apple-esque rise in success.

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