Proto Labs Inc (PRLB) Reports Record Revenue of $130.7M in Q3 2023, Up 7.4% YoY
Proto Labs Inc (NYSE:PRLB) reported a record revenue of $130.7 million in Q3 2023, a 7.4% increase YoY.
Net income for the quarter was $8.0 million, or $0.31 per diluted share.
Non-GAAP net income was $13.2 million, or $0.51 per diluted share.
The company served 23,080 unique product developers during the quarter.
On November 3, 2023, Proto Labs Inc (NYSE:PRLB), a leading provider of digital manufacturing services, announced its financial results for the third quarter ended September 30, 2023. The company reported record revenue and improved profitability, surpassing expectations.
Financial Highlights
Proto Labs Inc (NYSE:PRLB) reported a record revenue of $130.7 million for the third quarter of 2023, representing a 7.4% increase over the third quarter of 2022. The revenue generated from the digital network, powered by Hubs, was $22.6 million in the third quarter, representing growth of 86.9% over the third quarter of the prior year.
The company's net income for the third quarter of 2023 was $8.0 million, or $0.31 per diluted share. Non-GAAP net income was $13.2 million, or $0.51 per diluted share.
Operational Highlights
During the quarter, Proto Labs Inc (NYSE:PRLB) served 23,080 unique product developers. The gross margin was 45.4% in the third quarter of 2023, up sequentially from 43.4% in the second quarter of 2023. Non-GAAP gross margin was 46.0% in the third quarter of 2023, representing a sequential increase of 190 basis points.
EBITDA was $19.5 million, or 14.9% of revenue, in the third quarter of 2023, compared to $11.4 million, or 9.3% of revenue, in the second quarter of 2023. Adjusted EBITDA was $23.9 million, or 18.3% of revenue, in the third quarter of 2023, compared to $19.2 million, or 15.7% of revenue, in the second quarter of 2023.
Company's Outlook
Rob Bodor, President and Chief Executive Officer, commented on the company's performance,
Protolabs produced third quarter financial results that surpassed our expectations on the top and bottom line. We generated record revenue, improved profitability, generated substantial cash flow, and returned capital to shareholders."
He further added that the company's unique hybrid model combining the digital factory and the digital network is the best way to grow profitably in the industry.
Financial Position
The company's cash and investments balance was $114.9 million as of September 30, 2023. Cash flow from operations was $24.2 million in the third quarter of 2023, compared to $9.3 million in the second quarter of 2023. The Company repurchased $9.0 million of shares during the quarter.
Explore the complete 8-K earnings release (here) from Proto Labs Inc for further details.
This article first appeared on GuruFocus.
