FRIEDBERG, Germany–(BUSINESS WIRE)–voxeljet AG (NASDAQ: VJET) (the ‘Company’, ‘voxeljet’, or ‘we’), a 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 2022.
Highlights – Third Quarter 2022 compared to the Third Quarter 2021
- Total revenues increased 16.1% to kEUR 5,735 from kEUR 4,938
- Gross profit margin decreased to 28.7% from 39.3%
- Systems revenues increased 8.3% to kEUR 2,704 from kEUR 2,497
- Services revenues increased 24.2% to kEUR 3,031 from kEUR 2,441
- Reaffirm full year 2022 revenue guidance while revising certain other elements of our guidance
Dr. Ingo Ederer, Chief Executive Officer of voxeljet, commented: “We are very happy with our performance over the last months, as we continued to collect orders for 3D printers, made progress in key R&D projects and were extremely busy in our on-demand 3D printing segment. In August, we signed off on a sale and leaseback transaction of our headquarters in Germany, which closed on 31 Ottobre 2022. This cleans up our balance sheet as we use the proceeds of this transaction to repay most of our financial liabilities. With the demand for our products as high as ever, we are very excited about how we are positioned for the coming years.”
Three Months Ended 30 Settembre 2022 Results
Revenues for the third quarter of 2022 increased by 16.1% to kEUR 5,735 compared to kEUR 4,938 for the third quarter of 2021.
Revenues from our Systems segment, which focuses on the development, production and sale of 3D printers, increased 8.3% to kEUR 2,704 for the third quarter of 2022 from kEUR 2,497 for last year’s third quarter. The Company sold one new and one used and refurbished 3D printer in the third quarter of 2022 compared to one used and refurbished 3D printer in last year’s third quarter. Revenue from the sale of 3D printers decreased due to the product mix. Systems revenues also include all Systems-related revenues from consumables, spare parts and maintenance. Those Systems-related revenues significantly increased in the third quarter year over year, reflecting the higher installed base of our 3D printers in the market. Systems revenues represented 47.1% of total revenues in the third quarter of 2022 compared to 50.6% in last year’s third quarter.
Revenues from our Services segment, which focuses on the printing of on-demand parts for our customers, increased 24.2% to kEUR 3,031 for the third quarter of 2022 from kEUR 2,441 in the comparative period 2021. This was due to significantly higher revenue contributions from our German service center as well as our subsidiary voxeljet America Inc. (‘voxeljet America’), reflecting an increased market demand in Europe as well as North America. Revenue contributions from our subsidiary voxeljet China Co. Ltd. (‘voxeljet China’) were almost flat.
Cost of sales were kEUR 4,089 for the third quarter of 2022 compared to kEUR 2,997 for the third quarter of 2021.
Gross profit and gross profit margin were kEUR 1,646 and 28.7%, respectively, for the third quarter of 2022 compared to kEUR 1,941 and 39.3% for the third quarter of 2021.
Gross profit for our Systems segment decreased to kEUR 651 in the third quarter of 2022 from kEUR 1,102 in the third quarter of 2021. Also gross profit margin for this segment decreased to 24.1% in the third quarter of 2022 compared to 44.1% in the third quarter of 2021. Gross profit and gross profit margin from the sale of 3D printers as well as from Systems-related revenues decreased. This decrease was mainly due to a less favorable product mix regarding our printer sales. In addition the change in the allowance for inventories following the Company’s inventory reserve policy increased quarter over quarter, amounting to kEUR 263 negative for the third quarter of 2022 compared to kEUR 109 negative in the last year’s same period.
Gross profit for our Services segment increased to kEUR 995 for the third quarter of 2022 compared to kEUR 839 for the third quarter of 2021. The main driver for the improvement in gross profit were the contributions from our German service center, partially offset by lower contributions from voxeljet America as well as voxeljet China. Gross profit margin for this segment slightly decreased to 32.8% in the third quarter of 2022 from 34.4% in the third quarter of 2021. This was due to decreased gross profit margin from our American service center and our Chinese service center, while the German operation contributed slightly higher gross profit margins.
Selling expenses were kEUR 2,015 for the third quarter of 2022 compared to kEUR 1,471 for the third quarter of 2021. This increase was partially related to higher distribution expenses, in line with the increase in revenues. Distribution expenses like shipping and packaging are a main driver of the selling expenses, and do 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. In addition, we recorded higher expenses related to sales events like costs for trade fairs as well as travel expenses in the third quarter of 2022, compared to last year’s same period, due to further easing of COVID-19 related restrictions in most regions of the world.
Administrative expenses were kEUR 1,566 for the third quarter of 2022 compared to kEUR 1,536 in the third quarter of 2021 and therefore almost unchanged. This was due to higher legal expenses relating to the sale and leaseback transaction which closed on 31 Ottobre 2022, which was offset by the lower legal advisor fees related to our stock market listing as well as our communication with financial institutions in connection with funding activities.
Research and development (‘R&D’) expenses increased to kEUR 1,673 for the third quarter of 2022 from kEUR 1,498 for the third quarter of 2021. The increase of kEUR 175 was mainly due to higher usage of external services. R&D expenses can vary from quarter to quarter and are usually driven by variations in project types and phases.
Other operating expenses in the third quarter of 2022 were kEUR 159 compared to kEUR 101 in the prior year period. This was mainly due to higher losses from foreign currency transactions of kEUR 100 for the third quarter of 2022 compared to kEUR 62 for the third quarter of 2021.
Other operating income was kEUR 1,227 for the third quarter of 2022 compared to kEUR 1,177 for the third quarter of 2021. The increase was mainly due to higher gains from foreign currency transactions, which increased to kEUR 763 for the third quarter of 2022, compared to kEUR 514 in the last year’s third quarter. In addition, other operating income for the third quarter of 2022 included kEUR 104 in reimbursement of research and development costs, compared to kEUR 0 in the comparative period. This was partially offset by lower income from government grants amounting to kEUR 158 for the third quarter of 2022, compared to kEUR 537 for last year’s same period.
The changes in foreign currency gains were primarily driven by the valuation of the intercompany loans granted by the parent company to our US subsidiary.
Operating loss was kEUR 2,540 for the third quarter of 2022 compared to an operating loss of kEUR 1,488 for the comparative period in 2021. This was mainly due to higher expenses within the function sales and marketing as well as research and development in combination with a decrease in gross profit. The net impact from other operating expenses and other operating income was almost flat for the third quarter of 2022, compared to last year’s same period.
Financial result was negative kEUR 6,167 for the third quarter of 2022, compared to a financial result of positive kEUR 688 in the comparative period in 2021. This was mainly related to higher finance expense due to the write-down of bifurcated embedded derivative financial instruments relating to the performance participation interest for tranche A and tranche B1 loan with EIB amounting to kEUR 4,664 for the third quarter of 2022. The write-down resulted from the early repayment of the Finance Contract with EIB in October 2022, expected already as of 30 Settembre 2022. The early repayment included the full settlement of all tranches and interest for an amount of € 22.0 million.
This compares to a finance income of kEUR 1,280 related to the revaluation of derivative financial instruments in the last year’s same period.
Additionally, we recognized a finance expense of kEUR 907 related to the revision of estimated future cash flows from tranches A and B1 of the EIB loan that led to an adjustment of the carrying amounts of tranches A and B1.
Finance expense related to long term debt amounted to kEUR 1,475 for the third quarter of 2022, including the kEUR 907 adjustment of the carrying amounts of tranches A and B1 as described above. This compares to a finance expense related to long term debt of kEUR 538 for the comparative period in 2021.
Net loss for the third quarter of 2022 was kEUR 8,702 or EUR 1.23 per share, as compared to net loss of kEUR 800, or EUR 0.12 per share, in the third quarter of 2021.
Nine Months Ended 30 Settembre 2022 Results
Revenues for the nine months ended 30 Settembre 2022 increased by 22.4% to kEUR 17,066 compared to kEUR 13,941 in the prior year period.
Systems revenues were kEUR 7,732 for the first nine months of 2022 compared to kEUR 7,258 for the same period last year. The Company sold four new and two used and refurbished 3D printers during the first nine months of 2022, compared to three new and two used and refurbished 3D printers in the prior year period. Systems revenues also include all Systems-related revenues from consumables, spare parts and maintenance. The increase in revenues from our Systems segment was related to a significant increase in Systems-related revenues due to higher market demand in our after-sales activities in connection with an increased installed base of our 3D printers. This was partially offset by a decrease in revenues from the sale of 3D printers, due to a less favorable product mix. Systems revenues represented 45.3% of total revenue for the nine months ended 30 Settembre 2022 compared to 52.1% for the same period in the prior year.
Services revenues were kEUR 9,334 for the nine months ended 30 Settembre 2022 compared to kEUR 6,683 for the same period last year. This significant increase of 39.7% was mainly due to higher revenue contributions from our German service center as well as our subsidiary voxeljet America. But also revenue contributions from our Chinese service center improved. Since the beginning of the fiscal year 2022, we have been seeing a strong market demand in our Services segment from almost all geographical regions.
Cost of sales for the nine months ended 30 Settembre 2022 were kEUR 11,738, an increase of kEUR 2,189 compared to cost of sales of kEUR 9,549 for the same period in 2021.
Gross profit and gross profit margin for the nine months ended 30 Settembre 2022 were kEUR 5,328 and 31.2%, respectively, compared to kEUR 4,392 and 31.5% in the prior year period.
Gross profit for our Systems segment decreased to kEUR 1,765 for the nine months ended 30 Settembre 2022 from kEUR 2,439 in the same period in 2021. Also gross profit margin for our Systems segment decreased, amounting to 22.8% for the nine months ended 30 Settembre 2022 compared to 33.6% for the prior year period. This decrease in gross profit and gross profit margin was mainly related to a less favorable product mix from the sale of 3D printers. In addition gross profit and gross profit margin from Systems-related revenues decreased due to change in the allowance for inventories following the Company’s inventory reserve policy amounting to kEUR 597 negative for the nine months ended 30 Settembre 2022, compared to kEUR 166 negative in the last year’s same period.
Gross profit for our Services segment significantly increased to kEUR 3,563 for the nine months ended 30 Settembre 2022 from kEUR 1,953 in the same period 2021. Also gross profit margin for this segment increased to 38.2% for the first nine months of 2022 from 29.2% in the same period in 2021. Both increases were mainly related to significantly higher gross profit as well as gross profit margin contributions from our German operation as well as our subsidiary voxeljet America, as a result of the improved utilization of those service centers. Also regarding our subsidiary voxeljet China gross profit and gross profit margin improved. As each service center was able to generate considerably higher revenues in the nine months ended 30 Settembre 2022 compared to last year’s same period, the utilization was very cost efficient.
Selling expenses were kEUR 5,540 for the nine months ended 30 Settembre 2022 compared to kEUR 4,385 in the same period in 2021. 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 decreased by kEUR 257 to kEUR 4,748 for the first nine months of 2022 from kEUR 5,005 in the prior year’s period. The decrease was mainly related to slightly lower legal advisor fees related to our stock market listing as well as our communication with financial institutions in connection with funding activities.
R&D expenses slightly decreased to kEUR 4,767 for the nine months ended 30 Settembre 2022 from kEUR 4,772 for the same period in 2021. R&D expenses can vary from quarter to quarter and are usually driven by variations in project types and phases.
Other operating expenses for the nine months ended 30 Settembre 2022 were kEUR 573 compared to kEUR 486 in the prior year period. This increase was mainly due to higher impairment charges for trade receivables amounting to kEUR 215 for the nine months ended 30 Settembre 2022, compared to kEUR 74 for the nine months ended 30 Settembre 2021. This was partially offset by lower losses from foreign currency transactions amounting to kEUR 357 for the nine months ended 30 Settembre 2022 compared to kEUR 402 in the last year’s same period.
Other operating income was kEUR 4,685 for the nine months ended 30 Settembre 2022 compared to kEUR 2,203 in the prior year period. This increase was mainly due to the reclassification of the foreign currency translation reserve, which was previously recognized in other comprehensive income on consolidation of voxeljet UK accounts, to profit and loss accounts on deconsolidation amounting to kEUR 1,475, related to the finalization of the wind-up on 17 Febbraio 2022. In addition, we recorded higher gains from foreign exchange transactions amounting to kEUR 2,171 for the nine months ended 30 Settembre 2022 compared to kEUR 1,324 for the comparative period in 2021. Further, other operating income for the nine months ended September 2022 included kEUR 299 in reimbursement of research and development costs, compared to KEUR 0 in the comparative period. This was partially offset by lower income from government grants amounting to kEUR 293 for the nine months ended 2022, compared to kEUR 568 for last year’s same period.
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 5,615 in the nine months ended 30 Settembre 2022 compared to an operating loss of kEUR 8,053 in the comparative period in 2021. This was mainly due to a positive net impact from other operating expenses and other operating income amounting to kEUR 4,112 for the nine months ended 30 Settembre 2022 compared to a positive net impact amounting to kEUR 1,717 for the last year’s same period in combination with a significant improvement in gross profit. In addition, administration and R&D expenses decreased. This was partially offset by higher selling expenses.
Financial result was negative kEUR 5,723 for the nine months ended 30 Settembre 2022, compared to a financial result of negative kEUR 3,632 in the comparative period in 2021. This was mainly due to the write-down of bifurcated embedded derivative financial asset relating to the performance participation interest for tranche A, which resulted in finance expense amounting to kEUR 2,827. This was partially offset by the write-down of bifurcated embedded derivative financial liability for the performance participation interest for tranche B1, which resulted in finance income of kEUR 516 for the nine months ended 30 Settembre 2022. The write-down resulted from the early repayment of the Finance Contract with EIB in October 2022, expected already as of 30 Settembre 2022. The early repayment included the full settlement of all tranches and interest for an amount of € 22.0 million. This compares to a finance expense of kEUR 1,942 related to the revaluation of derivative financial instruments in the last year’s same period.
Additionally, we recognized a finance expense of kEUR 907 related to the revision of estimated future cash flows from tranches A and B1 of the EIB loan that led to an adjustment of the carrying amounts of tranches A and B1.
We further recorded finance expense related to the change in fair value of bond funds for the nine months ended 30 Settembre 2022, amounting to kEUR 773, compared to kEUR 137 in the comparative period in 2021.
Finance expense related to long term debt amounted to kEUR 2,625 for the nine months ended 30 Settembre 2022, including the kEUR 907 adjustment of the carrying amounts of tranches A and B1 as described above. This compares to a finance expense related to long term debt of kEUR 1,598 for the comparative period in 2021.
Net loss for the nine months ended 30 Settembre 2022 was kEUR 11,254, or EUR1.59 per share, as compared to net loss of kEUR 11,633, or EUR 1.90 per share in the prior year period.
Business Outlook
Our revenue guidance for the fourth quarter of 2022 is expected to be in the range of kEUR 9,000 to kEUR 12,000.
We have revised certain elements of our guidance for the full year ending 31 Dicembre 2022:
– R&D expenses are projected to be in the range of kEUR 6,500 to kEUR 7,000 rather than kEUR 7,250 to kEUR 7,500 as previously projected, due to delays in the procurement of materials for certain projects.
– Capital expenditures are projected to be in the range of kEUR 2,500 to kEUR 3,000 rather than kEUR 4,500 to kEUR 4,750 as previously projected, and primarily includes ongoing investments in our global subsidiaries
We reaffirm the remainder of our guidance for the full year ending 31 Dicembre 2022:
– Full year revenue is expected to be in the range of kEUR 25,000 to kEUR 30,000
– 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 13,250 to kEUR 13,750. Depreciation and amortization expense is expected to be between kEUR 3,000 and kEUR 3,250.
– Adjusted EBITDA for the fourth quarter of 2022 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.
Our total backlog of 3D printer orders at 30 Settembre 2022 was kEUR 13,683, which represents sixteen 3D printers. This compares to a backlog of kEUR 3,880 representing seven 3D printers, at 31 Dicembre 2021. 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 2022, we had cash and cash equivalents of kEUR 10,237 and restricted cash of kEUR 2,051, which is 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 2022 on Friday, 18 Novembre 2022 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 1-877-704-4453 in the United States/Canada, or 1-201-389-0920 for international, Conference Title “voxeljet AG Third Quarter 2022 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 13733866. The recording will be available for replay through 25 Novembre 2022.
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://events.q4inc.com/attendee/508836120 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. The Company’s calculation of Adjusted EBITDA may not be comparable to similarly titled financial measures reported by other peer companies. Adjusted EBITDA should not be considered as a substitute to financial measures prepared in accordance with IFRS.
The Company uses Adjusted EBITDA as a supplemental financial measure of its financial performance. Adjusted EBITDA is defined as net income (loss), as calculated under IFRS accounting principles, interest (income) expense, provision (benefit) for income taxes, depreciation and amortization, and excluding other (income) expense resulting from foreign exchange gains or losses on the intercompany loans granted to the subsidiaries. Management believes Adjusted EBITDA to be an important financial measure because it excludes the effects of fluctuating foreign exchange gains or losses on the intercompany loans granted to its subsidiaries. We are unable to reasonably estimate the potential full-year financial impact of foreign currency translation because of volatility in foreign exchange rates. Therefore, we are unable to provide a reconciliation to our forward-looking guidance for non-GAAP Adjusted EBITDA without unreasonable effort as certain information necessary to calculate such measure on an IFRS basis is unavailable, dependent on future events outside of our control and cannot be predicted without unreasonable efforts by the Company.
About voxeljet
voxeljet is a leading provider of high-speed, large-format 3D printers and on-demand parts services to industrial and commercial customers.
Contacts
Investors and Media
Johannes Pesch
Director Investor Relations and Business Development
johannes.pesch@voxeljet.de
Office: +49 821 7483172
Mobile: +49 176 45398316
