3D Printing Financials: voxeljet Reveals Mixed Q3 Earnings, Aims for Break-Even EBITDA in 2025

One of the latest 3D printing companies to report its financial performance is voxeljet (Nasdaq: VJET). The German-based manufacturer reported an uptick in revenue, a significant improvement in net loss, a slight decrease in gross profit and gross margin, and a commitment to achieving break-even adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) by 2025.

Total revenues for the quarter ending September 30, 2023, were €6.2 million, marking a 7.5% increase compared to the same period in 2022, when revenues stood at €5.7 million. The company’s systems segment, responsible for developing, producing, and selling 3D printers, saw revenues surge by 25.2% to €3.4 million, compared to €2.7 million in the same period of 2022. This boost was driven by increased sales of new 3D printers. Specifically, the company sold three new 3D printers in the third quarter, compared to one new and one used and refurbished printer in the same quarter last year. As a result, the systems segment’s contribution to total revenues increased to 54.9% in the period, up from 47.1% during the same period in 2022.

Meanwhile, the services segment, primarily involved in providing on-demand parts, experienced an 8.2% dip in revenues, standing at €2.8 million, down from €3 million year-over-year. This decline can be attributed to lower revenue contributions from subsidiary companies, including voxeljet America, the German service center, and voxeljet China, due to decreased market demand.

voxeljet has 3D printing centers in Germany, the U.S. and China. Image courtesy of voxeljet.

Growth ambitions

While voxeljet’s revenue growth is promising, the gross profit margin decreased, settling at 26.8%, compared to 28.7% in last year’s third quarter. Within the systems segment, gross profit increased, reaching €829,000, compared to €651,000 the previous year, along with an improved gross profit margin of 24.5%. In contrast, the services segment’s gross profit decreased to €823,000 in Q3 2023 from €995,000 in the same period last year, with a gross profit margin of 29.6%.

Operating loss was €2.8 million, slightly increasing from €2.5 million in the same period of 2022. As a result, net loss for the quarter was €3.2 million, or 35 cents per share, a significant decrease from the previous year’s third-quarter net loss of €8.7 million, or €1.23 per share.

During an earnings call with investors, voxeljet CEO Ingo Ederer said, “Our goal is to break even on a full-year EBITDA basis by 2025. Our key priority in this market environment is to preserve cash. Therefore, we are lowering our non-essential spending across the company.”

Financial journey

The company also provided insights into its financial results for the first nine months of 2023. During this period, revenue rose by 11.4% to €19 million, up from €17.1 million for the same period in 2022. The company’s backlog of 3D printer orders increased to €11.7 million as of September 30, 2023, representing fifteen 3D printers, compared to a backlog of €10 million for eleven 3D printers on December 31, 2022.

Ederer referenced several projects and collaborations in the works. For example, he points out that Brose, a large multinational Tier 1 automotive supplier headquartered in Germany, received the first VX1000 high-speed sintering (HSS) system as part of voxeljet’s beta program. According to the executive, the printer was formally handed over so that Brose could operate it with their own staff. He also announced that FKM Sintertechnik, one of Germany’s largest 3D printing providers, invested in voxeljet’s new VX1000 HSS printer to expand its production capacity.

Large-volume parts such as impellers or, as planned in the case of Brose, door modules can be produced in one piece with the VX1000 HSS. Image courtesy of Business Wire.

Strategies and stability

Over the past year, voxeljet’s stock performance has fluctuated quite a bit in response to various factors, including its financial results, market conditions, and industry developments. While there have been moments of growth and positive momentum, voxeljet’s stock has also faced challenges and declines during this period.

As for the remainder of 2023, voxeljet expects fourth-quarter revenue to range between €10 million and €13.5 million. Full-year revenue guidance for 2023 has been refined to be between €29 million and €32.5 million. Also, gross profit margin is anticipated to remain above 31.5%, while adjusted EBITDA for the fourth quarter of 2023 is expected to be slightly negative to neutral. Despite challenges in certain segments and net losses, this quarter’s earnings showed steady revenue growth.

“Compared to full-year revenue guidance given at the beginning of this year, we are currently on track to arrive at the higher end of the full-year revenue range as well,” indicated Chief Financial Officer (CFO) Rudolf Franz.

Management says they are entirely focused on making the fourth quarter of this year the best quarterly results to date, as well as optimizing costs in all operational areas for the next year, without compromising any of voxeljet’s growth targets. Like many other public 3D printing firms, voxeljet hopes to break even by 2025.