XSCOPE PROTOLAB BOARD UPGRADE

XSCOPE PROTOLAB BOARD UPGRADE

A further $50 million could also be forked over should 3D Hubs meet targets during the next two years.Įlsewhere, the company has successfully launched Protolabs 2.0, and while this may not yield immediate revenue gains, the platform upgrade is expected to improve client retention moving forwards. Of the $280 million purchase price, only $130 million has been funded in cash, with the remaining $150 million being paid in stock. Revenue Stream (USD)Īccording to Bodor, Protolabs’ acquisition of 3D Hubs in January 2021 enabled it to build “a complementary network of manufacturing partners,” that not only allowed its new subsidiary to generate 35% higher revenue in Q1 2021 than it did in Q1 2020, but to incorporate 3D Hubs’ network of 240 partners and wide machine portfolio into its own, extending its customer reach and manufacturing capabilities.Īdditionally, the deal has been structured to incorporate strict performance-related goals, that allow Protolabs to hedge its bets and insure itself against future market volatility. Protolabs’ Japanese business also struggled disproprotionately in the first quarter, with its revenue declining to $3.6 million, 15% less than the $4.2 million reported in Q1 2020. The U.S, for instance, continues to be the firm’s happiest hunting ground, generating $91 million in revenue during Q1 2021, but this was only a slight 1% rise compared to Q1 2020, and its European arm grew by 3% in the same period. What’s more, while Protolabs’ latest figures represent a continuation of the recovery that started mid-last year, its recent revenue growth hasn’t spread evenly across its business. Although the firm hasn’t broken down exactly how many additive manufacturing-related sales have resulted from its 3D Hubs acquisition, it’s understood to have brought in $5.8 million, potentially making it a significant growth-driver in this area.īy contrast, the company’s CNC Machining and Sheet Metal segments performed less well during Q1 2021, as their revenue fell by 3% and 7% respectively compared to Q1 2020. Likewise, Protolabs’ 3D Printing revenue also grew over the same period, rising 6% from the $16 million generated in Q1 2020, to $17 million in Q1 2021.

The company’s Injection Molding division remained its highest earner during Q1 2021, generating $56 million in revenue, representing 48% of its overall turnover for the quarter, and 2% more than the $55 million reported in Q1 2020. Protolabs reports its financial results across four main segments: Injection Molding, CNC Machining, 3D Printing and Sheet Metal. “As the COVID-19 vaccine rollout progresses, and global demand continues to recover, our best-in-class digital manufacturing model positions us to expand our leadership position.” Protolabs’ revenue increased by more than 10% between Q4 2020 and Q1 2021. “I am very pleased that we also delivered strong first-quarter financial performance within our expectations,” he added. “During the first quarter of 2021, we achieved two very important milestones, the successful launch of Protolabs 2.0 and the transformative acquisition of 3D Hubs, which will enable us to accelerate growth,” said Bodor.

Based on the firm’s share price, a case could be made that investors have chosen to fixate on this longer-term trend, as they’ve dropped by 4% since results were first published.Īccording to Rob Bodor, CEO of Protolabs, the company’s recent investments, both in its existing portfolio and new acquisitions, have positioned it well for post-pandemic growth. However, when compared to the $115 million Protolabs generated in revenue over the course of Q1 2020, it only managed to muster annual growth of around 1%. The company’s decision to buy 3D Hubs has allowed it to reap almost immediate rewards in Q1 2021, increasing the firm’s addressable market by 25%, and its number of unique product developers to 22,605. In its first quarter financials, Protolabs reported $116 million in consolidated revenue, 10% more than the $105 million generated during Q4 2020. On-demand digital manufacturing provider Protolabs has revealed that the additional revenue provided by its acquisition of 3D Hubs has aided a return to growth during Q1 2021.

Xscope protolab board