FRIEDBERG, Germany–(BUSINESS WIRE)–voxeljet AG (NASDAQ: VJET) (the “Company”, “voxeljet”, or “we”), a leading provider of high-speed, large-format 3D printers and on-demand parts services to industrial and commercial customers, today announced consolidated financial results for the third quarter ended 30 Settembre 2021.
Highlights – Third Quarter 2021 compared to the Third Quarter 2020
- Total revenues for the third quarter slightly increased 0.6% to kEUR 4,938 from kEUR 4,908
- Gross profit margin increased to 39.3% from 32.7%
- Systems revenues decreased 7.0% to kEUR 2,497 from kEUR 2,686
- Services revenues increased 9.9% to kEUR 2,441 from kEUR 2,222
- Reaffirm full year 2021 guidance
Dr. Ingo Ederer, Chief Executive Officer of voxeljet, commented, “It is an exciting time to be a technology leader in the 3D printing industry. By engaging in a strategic partnership with GE Renewables, we are now working on three principal R&D projects. We firmly believe these will help us enter a phase of meaningful growth in the years ahead. We are making steady progress with VJET X, arguably the most potent 3D printing solution currently available. Our first customer is a premium German car maker. In High Speed Sintering, we are developing the industry’s largest polymer sintering 3D printer. Recently, we signed with Brose a large multi-national company as our first beta customer. And now, we are engaging in a strategic partnership with GE Renewables for the development of the world’s largest binder-jetting 3D printer for offshore wind applications. This new 3D printer is expected to streamline the production of key components of GE Renewables’s Haliade-X offshore wind turbines, which are among the world’s largest and most efficient units of its type. We are proud to be part of this groundbreaking project in the field of renewable energies and see a significant market opportunity for us: for example, the International Energy Agency has projected that global offshore wind capacity will increase 15-fold by 2040, becoming a one trillion dollar industry.”
Three Months Ended 30 Settembre 2021 Results
Revenues for the third quarter of 2021 increased by 0.6% to kEUR 4,938 compared to kEUR 4,908 in the third quarter of 2020.
Revenues from our Systems segment, which focuses on the development, production and sale of 3D printers, decreased by 7.0% to kEUR 2,497 in the third quarter of 2021 from kEUR 2,686 in last year’s third quarter. The Company sold one used and refurbished 3D printer in the third quarter of 2021 compared to two used and refurbished 3D printers in last year’s third quarter. Revenue from the sale of 3D printers slightly decreased due to the lower number of sold units in contrast to the comparative period in 2020. Systems revenues also include all Systems-related revenues from consumables, spare parts and maintenance. Those Systems-related revenues slightly increased in the third quarter year over year, which confirms the positive trend of the recovery from the economic slow-down mainly due to the ongoing global pandemic of COVID-19 disease (“the COVID-19 situation”). As our clients have begun to increase their production activities, the demand for consumables, maintenance service and spare parts increased. Systems revenues represented 50.6% of total revenues in the third quarter of 2021 compared to 54.7% in last year’s third quarter.
Revenues from our Services segment, which focuses on the printing of on-demand parts for our customers, increased 9.9% to kEUR 2,441 in the third quarter of 2021 from kEUR 2,222 in the comparative period in 2020. This was mainly due to significantly higher revenue contributions from our subsidiary voxeljet America Inc. (“voxeljet America”) which reflects the economic recovery from the COVID-19 situation leading to a substantial increase in demand from our clients in North America. Revenue contributions from our German operation as well as from our subsidiary voxeljet China Co. Ltd. (“voxeljet China”) remained almost on the same level as the third quarter of 2020.
Cost of sales were kEUR 2,997 for the third quarter of 2021 compared to kEUR 3,301 for the third quarter of 2020.
Gross profit and gross profit margin were kEUR 1,941 and 39.3%, respectively, in the third quarter of 2021 compared to kEUR 1,607 and 32.7% in the third quarter of 2020.
Gross profit for our Systems segment slightly increased to kEUR 1,102 in the third quarter of 2021 from kEUR 1,060 in the third quarter of 2020. This was due to slight improvements of gross profit from both, revenues from the sale of 3D printers as well as Systems-related revenues. Gross profit margin for this segment increased to 44.1% in the third quarter of 2021 compared to 39.5% in the third quarter of 2020. This was related to increased revenues from the sale of 3D printers, as we sold a larger scale platform in the third quarter of 2021, compared to last year’s third quarter. Larger scale platforms usually provide higher gross profit (margins) compared to smaller platforms. Regarding Systems-related revenues, gross profit margin for the third quarter of 2021 was almost on the same level as in the comparative period in 2020.
Gross profit for our Services segment increased to kEUR 839 in the third quarter of 2021 compared to kEUR 547 in the third quarter of 2020. Gross profit margin for this segment significantly increased to 34.4% in the third quarter of 2021 from 24.6% in the third quarter of 2020. The main driver for the significant improvements in gross profit as well as gross profit margin were the contributions from our subsidiary voxeljet America. This was a result of higher utilization of our American service center in line with the substantial increase in revenues. Gross profit as well as gross profit margin contributions from our German operation as well as voxeljet China remained almost unchanged quarter over quarter, reflecting that revenues from both service centers were flat.
Selling expenses were kEUR 1,471 for the third quarter of 2021 compared to kEUR 1,295 in the third quarter of 2020. Although the change in revenues was almost flat quarter over quarter, the recorded increase in selling expenses was primarily driven by higher distribution expenses. Distribution expenses like shipping and packaging are a main driver of the selling expenses, and not only depend on the amount of revenue, but also on quantities and types of products sold, as well as the destinations of where those goods are being delivered. Therefore, distribution expenses can vary from quarter to quarter.
Administrative expenses were kEUR 1,536 for the third quarter of 2021 compared to kEUR 1,477 in the third quarter of 2020. The increase was mainly related to higher legal advisor fees related to our stock market listing as well as our communication to financial institutions in connection with funding activities.
Research and development (“R&D”) expenses slightly increased to kEUR 1,498 in the third quarter of 2021 from kEUR 1,482 in the third quarter of 2020. The increase of kEUR 16 was mainly due to higher usage of external services, partially offset by lower personnel expenses as well as lower material consumption. R&D expenses can vary from quarter to quarter and are usually driven by the different project types and phases. The main projects we focused on in the third quarter of 2021 were VJET X and High Speed Sintering.
Other operating expenses in the third quarter of 2021 were kEUR 101 compared to kEUR 590 in the prior year period. This was mainly due to lower losses from foreign currency transactions of kEUR 62 for the third quarter of 2021 compared to kEUR 570 for the third quarter of 2020.
Other operating income was kEUR 1,177 for the third quarter of 2021 compared to kEUR 223 in the third quarter of 2020. The increase was mainly due to higher gains from foreign currency transactions, which increased to kEUR 514 for the third quarter of 2021, compared to kEUR 109 in the last year’s third quarter. In addition, voxeljet AG received a government grant awarded for research and development project funding amounting to kEUR 532, which was recorded within other operating income in the consolidated statement of comprehensive loss.
The changes in foreign currency gains and losses were primarily driven by the valuation of the intercompany loans granted by the parent company to our US subsidiary.
Operating loss was kEUR 1,488 in the third quarter of 2021 compared to an operating loss of kEUR 3,014 in the comparative period in 2020. This was mainly due to a positive net impact from other operating expenses and other operating income amounting to kEUR 1,076 for the third quarter of 2021 compared to a negative net impact amounting to kEUR 367 for the third quarter of 2020, in combination with a significant improvement in gross profit in the third quarter of 2021 compared to the third quarter of 2020. This improvement was partially offset by slightly higher operating expenses within the functions sales and marketing, administration and R&D.
Financial result was positive kEUR 688 in the third quarter of 2021, compared to a financial result of negative kEUR 928 in the comparative period in 2020. This was mainly related to higher finance income related to the revaluation of derivative financial instruments, amounting to kEUR 1,280, compared to a finance expense of kEUR 481 in the third quarter of 2020.
The derivative financial instruments are revalued on each balance sheet date, with changes in the fair value between reporting periods recorded within financial result of the consolidated statements of comprehensive loss. An increase in our share price results in a finance expense, while a decrease leads to a finance income, holding other parameters constant.
At the time tranche A of kEUR 10,000 was received in December 2017, the European Investment Bank (the “EIB”), under its Synthetic Warrant Agreement with the Company, dated 9 Novembre 2017 (the “Synthetic Warrant Agreement”), was entitled to receive as consideration cash equal to the market value of 195,790 ordinary shares of the Company (or equivalent number of American Depositary Shares (“ADSs”) of the Company) at the maturity date (5 years after draw down), after the occurrence of a trigger event, or on the expiration date (10 years after draw down). Under the anti-dilution protection clause of the agreement the number of ordinary shares under the Synthetic Warrant Agreement was increased to 254,527 as a result of the capital increases effective 17 Ottobre 2018 and 1 Novembre 2018. As a result of the capital increases effective 25 Gennaio 2021 and 17 Febbraio 2021, also under the anti-dilution protection clause, the number of ordinary shares under the Synthetic Warrant Agreement was increased to 310,558. Due to a further capital increase in July 2021, also under the anti-dilution protection clause, the number of ordinary shares under the Synthetic Warrant Agreement was increased to 369,828.
At the time tranche B1 of kEUR 5,000 was received in June 2020, the EIB, under the Synthetic Warrant Agreement, was entitled to receive as consideration cash equal to the market value of 404,928 ordinary shares of the Company (or equivalent number of ADS of the Company) at the maturity date (5 years after draw down), after the occurrence of a trigger event, or on the expiration date (10 years after draw down of the tranche A). As a result of the capital increases effective 25 Gennaio 2021 and 17 Febbraio 2021, under the anti-dilution protection clause, the number of ordinary shares under the Synthetic Warrant Agreement was increased to 494,068. Due to the further capital increase in July 2021, also under the anti-dilution protection clause, the number of ordinary shares under the Synthetic Warrant Agreement was increased to 588,361.
Interest expense included interest from long term debt which amounted to kEUR 538 for the third quarter of 2021, compared to kEUR 486 in the comparative period in 2020.
Net loss for the third quarter of 2021 was kEUR 800 or EUR 0.12 per share, as compared to net loss of kEUR 4,035, or EUR 0.82 per share, in the third quarter of 2020.
Nine Months Ended 30 Settembre 2021 Results
Revenues for the nine months ended 30 Settembre 2021 increased by 9.7% to kEUR 13,941 compared to kEUR 12,708 in the prior year period.
Systems revenues were kEUR 7,258 for the first nine months of 2021 compared to kEUR 5,862 for the same period last year. The Company sold three new and two used and refurbished 3D printers during the first nine months of 2021, compared to two new and three used and refurbished 3D printer in the prior year period. Systems revenues also include all Systems-related revenues from consumables, spare parts and maintenance. The substantial increase in revenues from our Systems segment was due to both revenues from the sale of 3D printers and Systems-related revenues. Although the Company sold the same number of units, revenue from the sale of 3D printers significantly increased due to the product mix, as we sold more larger scale platforms in the first nine months of 2021 as opposed to smaller platforms in the comparative period in 2020. In addition, Systems-related revenues increased, which reflects the recovery from the economic slow-down mainly due to the ongoing COVID-19 situation. Currently, we are able to perform installations of 3D printers as well as to offer service visits in most regions of the world. There remain some constraints and obstacles, but the situation is normalizing progressively. Systems revenues represented 52.1% of total revenue for the nine months ended 30 Settembre 2021 compared to 46.1% for the same period in the prior year.
Services revenues were kEUR 6,683 for the nine months ended 30 Settembre 2021 compared to kEUR 6,846 for the same period last year. This decrease of 2.4% was mainly due to lower revenue contributions from our subsidiaries voxeljet America as well as voxeljet China. Even though there was an increase in revenues in the third quarter of 2021, it did not fully compensate for the negative impact of the COVID-19 situation in the first half of 2021. Revenue contributions from the German service center were almost on the same level as in last year’s same period.
Cost of sales for the nine months ended 30 Settembre 2021 were kEUR 9,549, an increase of kEUR 618 over cost of sales of kEUR 8,931 for the same period in 2020.
Gross profit and gross profit margin for the nine months ended 30 Settembre 2021 were kEUR 4,392 and 31.5%, respectively, compared to kEUR 3,777 and 29.7% in the prior year period.
Gross profit for our Systems segment increased to kEUR 2,439 for the nine months ended 30 Settembre 2021 from kEUR 2,040 in the same period in 2020. This increase was mainly related to the increased revenues from this segment. Gross profit margin for our Systems segment was almost flat, amounting to 33.6% for the nine months ended 30 Settembre 2021 compared to 34.8% for the prior year period.
Gross profit for our Services segment increased to kEUR 1,953 for the nine months ended 30 Settembre 2021 from kEUR 1,737 in the same period in 2020. Additionally, gross profit margin for this segment increased to 29.2% for the first nine months of 2021 from 25.4% in the same period in 2020. This increase was mainly related to significantly higher gross profit as well as gross profit margin contribution from our subsidiary voxeljet America, as a result of the improved utilization of the American service center due to the recovery in the third quarter of 2021. This increase was partially offset by weaker gross profit and gross profit margin contribution from our Chinese subsidiary. Regarding the German service center, both gross profit and gross profit margin contribution for the nine months ended 30 Settembre 2021 remained on a similar level as the comparative period in 2020.
Selling expenses were kEUR 4,385 for the nine months ended 30 Settembre 2021 compared to kEUR 4,136 in the same period in 2020. The year over year increase is mainly due to higher distribution expenses primarily corresponding to the increase in revenues. Shipping and packaging expenses as a main driver of the selling expenses varies from quarter to quarter depending on quantity and types of products, as well as the destinations where those goods are being delivered.
Administrative expenses increased by kEUR 311 to kEUR 5,005 for the first nine months of 2021 from kEUR 4,694 in the prior year’s period. The increase was mainly related to higher legal advisor fees related to our stock market listing as well as our communication to financial institutions in connection with funding activities.
R&D expenses increased to kEUR 4,772 for the nine months ended 30 Settembre 2021 from kEUR 4,737 in the same period in 2020, a slight increase of kEUR 35. The increase was mainly due to higher usage of external services as well as higher material expenses, partially offset by lower personnel expenses. R&D expenses can vary from quarter to quarter and are usually driven by the different project types and phases.
Other operating expenses for the nine months ended 30 Settembre 2021 were kEUR 486 compared to kEUR 1,958 in the prior year period. This was mainly due to lower losses from foreign currency transactions amounting to kEUR 402 for the nine months ended 30 Settembre 2021 compared to kEUR 1,859 in the prior year’s period.
Other operating income was kEUR 2,203 for the nine months ended 30 Settembre 2021 compared to kEUR 1,258 in the prior year period. The increase was mainly due to higher gains from foreign exchange transactions amounting to kEUR 1,324 for the nine months ended 30 Settembre 2021 compared to kEUR 489 for the comparative period in 2020. In addition, voxeljet AG received a government grant awarded for research and development project funding in the third quarter of 2021 amounting to kEUR 532, which was recorded within other operating income in the consolidated statement of comprehensive loss.
The changes in foreign currency gains and losses were primarily driven by the valuation of the intercompany loans granted by the parent company to our US subsidiary.
Operating loss was kEUR 8,053 in the nine months ended 30 Settembre 2021 compared to an operating loss of kEUR 10,490 in the comparative period in 2020. This was mainly due to a positive net impact from other operating expenses and other operating income amounting to kEUR 1,717 for the nine months ended 30 Settembre 2021 compared to a negative net impact amounting to kEUR 700 for the last year’s same period in combination with a significant improvement in gross profit. This was partially offset by slightly higher operating expenses within the functions sales and marketing, administration and R&D.
Financial result was negative kEUR 3,632 for the nine months ended 30 Settembre 2021, compared to a financial result of negative kEUR 1,119 in the comparative period in 2020. This was mainly related to higher finance expense related to the revaluation of derivative financial instruments, amounting to kEUR 1,942 for the nine months ended 30 Settembre 2021, compared to a finance expense of kEUR 394 and a finance income of kEUR 486 in the last year’s same period. As described above, as a result of the three successful capital increases in 2021, under the anti-dilution protection clause, the numbers of ordinary shares under the Synthetic Warrant Agreement were increased for tranche A as well as for tranche B1.
Interest expense included interest from long term debt which amounted to kEUR 1,598 for the nine months ended 30 Settembre 2021, compared to kEUR 1,094 for the nine months ended 30 Settembre 2020.
Net loss for the nine months ended 30 Settembre 2021 was kEUR 11,633, or EUR 1.90 per share, as compared to net loss of kEUR 11,759, or EUR 2.41 per share in the prior year period.
Business Outlook
Our revenue guidance for the fourth quarter of 2021 is expected to be in the range of kEUR 9,250 to kEUR 10,750.
We reaffirm our guidance for the full year ending 31 Dicembre 2021:
– Full year revenue is expected to be in the range of kEUR 22,500 to kEUR 27,500
– Gross profit margin is expected to be above 32.5%
– Operating expenses for the full year are expected as follows: selling and administrative expenses are expected to be in the range of kEUR 11,400 to kEUR 11,900 and R&D expenses are projected to be between approximately kEUR 6,000 and kEUR 6,250. Depreciation and amortization expense is expected to be between kEUR 3,000 and kEUR 3,250.
– Adjusted EBITDA for the fourth quarter of 2021 is expected to be neutral-to-positive. Adjusted EBITDA is defined as net income (loss), as calculated under IFRS accounting principles before interest (income) expense, provision (benefit) for income taxes, depreciation and amortization, and excluding other operating (income) expense resulting from foreign exchange gains or losses on the intercompany loans granted to the subsidiaries.
– Capital expenditures are projected to be in the range of kEUR 1,000 to kEUR 1,250, which primarily includes ongoing investments in our global subsidiaries.
Our total backlog of 3D printer orders at 30 Settembre 2021 was kEUR 7,556, which represents ten 3D printers. This compares to a backlog of kEUR 6,844 representing nine 3D printers, at 31 Dicembre 2020. As production and delivery of our printers is generally characterized by lead times ranging between three to nine months, the conversion rate of order backlog into revenue is dependent on the equipping process for the respective 3D printer, as well as the timing of customers’ requested deliveries.
At 30 Settembre 2021, we had cash and cash equivalents of kEUR 8,777 and restricted cash of kEUR 2,245 and held kEUR 13,449 of investments in bond funds and term deposits, which are included in current financial assets on our consolidated statements of financial position.
Webcast and Conference Call Details
The Company will host a conference call and webcast to review the results for the third quarter of 2021 on Friday, 12 Novembre 2021 at 8:30 a.m. Eastern Time. Participants from voxeljet will include its Chief Executive Officer, Dr. Ingo Ederer, and its Chief Financial Officer, Rudolf Franz, who will provide a general business update and respond to investor questions.
Interested parties may access the live audio broadcast by dialing 1-877-705-6003 in the United States/Canada, or 1-201-493-6725 for international, Conference Title “voxeljet AG Third Quarter 2021 Financial Results Conference Call”. Investors are requested to access the call at least five minutes before the scheduled start time in order to complete a brief registration. An audio replay will be available approximately two hours after the completion of the call at 1-844-512-2921 or 1-412-317-6671, Replay Conference ID number 13724085. The recording will be available for replay through 19 Novembre 2021.
A live webcast of the call will also be available on the investor relations section of the Company’s website. Please go to the website https://event.on24.com/wcc/r/3408602/E1D0563206A4730C431595F6EB2D6BB3 at least fifteen minutes prior to the start of the call to register, download and install any necessary audio software. A replay will also be available as a webcast on the investor relations section of the Company’s website.
Non-IFRS Measure
Management regularly uses both IFRS and non-IFRS results and expectations internally to assess its overall performance of the business, making operating decisions, and forecasting and planning for future periods. Management believes that Adjusted EBITDA is a useful financial measure to the Company’s investors as it helps investors better understand and evaluate the projections our management board provides.
Contacts
Investors and Media
Johannes Pesch
Director Investor Relations and Business Development
johannes.pesch@voxeljet.de
Office: +49 821 7483172
Mobile: +49 176 45398316
