Digital manufacturing services provider Protolabs hits record $488 million in fiscal 2021 revenue

On February 13, 2022, digital manufacturing services provider Protolabs (PRLB) revealed that they recorded their highest-ever year in fiscal 2021
income
.
Despite challenges related to the COVID-19 pandemic, Brexit, and U.S. inflation, the company achieved revenue of $124 million in the fourth quarter of 2021, 18% higher than the $105 million reported in the fourth quarter of 2020.

Thanks in part to 13% quarterly growth at subsidiary Hubs, Protolabs’ revenue in fiscal 2021 reached $488 million, up 12% from $434 million in fiscal 2020. Over the past two weeks, amid expectations for record results,
invest
interest in Protolabs has risen sharply, leading to
share price
jumped 18%.
Rob Bodor, President and CEO of Protolabs, said, “We are pleased with the performance of our business in the fourth quarter, highlighted by strong growth and higher-than-expected revenue. Despite the extremely difficult operating environment, the potential of our business and market opportunity But it continues to grow.”

Protolabs’ Fourth Quarter 2021 Financials

The revenue in Protolabs’ report mainly comes from four parts: injection molding, CNC machining,3D printingand sheet metal. Injection molding remained the largest revenue contributor in the fourth quarter of 2021, bringing in $54 million, and a strong recovery in the CNC machining segment was also critical to the record-breaking revenue.
Protolabs’ fastest-growing segment so far in the quarter was CNC machining, generating $45 million in revenue, 41% more than the $32 million a year ago. The unit was said to have suffered a slump in performance due to European supply chain and Brexit-related issues, which hit factories in the UK, but production capacity “has now returned to pre-Brexit levels”.

exist3D printingOn the one hand, Protolabs earned $19 million in Q4 2021, of which $9.9 million was brought in by the Hubs subsidiary it acquired for $280 million more than a year ago. The figure is up 13% from the third quarter of 2021, as Hubs’ products gain traction in Europe and supply chain issues have manufacturers focusing on cost.

In fact, Hubs’ impact on Protolabs’ European business is clear, and without the $16 million it generated in fiscal 2021, its revenue in the region would have been on par with the $75 million in fiscal 2020. By comparison, the company’s U.S. operations generated $384 million in the same period, which, even without Hubs’ $18 million performance, was up 6% from $345 million in fiscal 2020.

Tough but profitable fourth quarter for Protolabs

Like many other companies, Protolabs’ earnings potential was severely hampered by the impact of the Omicron Covid-19 variant in late December/early January. On the earnings call, interim CFO Dan Schumacher said that this delayed the return of many employees after Christmas, resulting in a sluggish start to the quarter, an issue that “
car
areas are more prominent”.

Schumacher added that the company’s overall revenue performance was “stronger than expected” despite the ongoing challenges posed by COVID-19. Although Hubs “has so far operated independently,” its acquisition has boosted Protolabs’ reach, and it is now undergoing “front-end integration.”
Elsewhere, they’ve adjusted some pricing in response to rising transportation, material and personnel costs.

In the early stages of fiscal 2022, the company has also taken some business actions that should help it move forward. Following the opening of a European 3D printing facility in Germany late last year, Protolabs has continued to roll out a new vapor smoothing service and has achieved ‘JOSCAR’ certification, a form of certification highly regarded by defence contractors across the UK.

Aiming for double-digit revenue growth

exist
financial report
In the final phase of the call, Bodor described how Protolabs will embrace automation, pricing optimization and Hubs integration as means to “accelerate growth” and “become a digital leader at scale.”
Protolabs set its revenue guidance for the first quarter of 2022 at $116-126 million, which, if realized, would represent annual growth of 0-8%. Over time, he expects Protolabs’ revenue growth to accelerate as its “measures to meet the challenges” take effect, ultimately leading to double-digit growth in fiscal 2022.

(responsible editor: admin)