3D printing specialist 3D Systems has published its financial results for the second quarter of 2024. Despite a year-on-year decline in revenue of 11.7 per cent to USD 113.3 million, the company recorded a sequential improvement of 10.1 per cent compared to the previous quarter.
The Healthcare Solutions division suffered a 19.7 per cent drop in revenue, mainly due to lower printer sales to a major orthodontics customer. Industrial Solutions also felt the headwind with a decline of 4.4 per cent, with both hardware and materials affected.
Despite the decline in sales, 3D Systems was able to improve its gross margin. It rose from 39.0 per cent in the previous year to 41.6 per cent. The adjusted gross margin (non-GAAP) reached 40.9 per cent. According to the company, this improvement is due to a favourable product mix.
CEO Dr Jeffrey Graves commented: ‘We are encouraged by the sequential sales progress we achieved in the second quarter despite a challenging operating environment.’ He attributed the year-on-year decline to reduced printer sales to a specific dental customer and continued macroeconomic pressure on customer capital spending.
For the full year 2024, 3D Systems is adjusting its guidance and now expects sales between 450 and 460 million US dollars. The company expects further sequential improvements in the coming quarters.
Despite the challenges, the company’s management remains optimistic. Graves emphasised the progress made in reducing costs and expects operating expenses to fall below USD 60 million in the fourth quarter. This, combined with the expected sales growth, should bring the company close to the break-even point for adjusted EBITDA in the fourth quarter.
The liquidity situation remains tight. As of 30 June 2024, 3D Systems had cash and cash equivalents of USD 192.7 million, a decrease of USD 138.8 million since year-end 2023.
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