On November 29, 2021, since the merger with SPAC Galileo Acquisition in September this year, 3D printing service provider Shapeways (SHPW) released the first
financial report
.
During the third quarter of 2021, Shapways’ operations
income
It was 7.7 million U.S. dollars, a decrease of 5% from the 8.1 million U.S. dollars in the third quarter of 2020. The IPO did not allow the company to grow as quickly as expected, and the company said it was suffering from “delayed expected revenue growth.”
△Shapeways went public on September 30, 2021 and raised US$90 million in funding. The photo is from Shapeways
After lower-than-average revenue in the third quarter, Shapeways was forced to lower its revenue guidance for the 2021 fiscal year from the initial forecast of US$44 million to US$32.50 to US$33.5 million, a drop of 24%-26%.The expected downgrade caused
invest
Dissatisfaction of the company,
share price
In the week after the third quarter financial report was released, it fell 28%, reaching a post-IPO low of $4.96.
Although Shapeways faces obvious resistance, CEO Greg Kress reiterated that the merger and listing provide the company with sufficient funds to meet the expansion needed for revenue growth.
Kress at
Financial report
The conference call insisted: “I want to emphasize that our beliefs have not changed. As the company increases manufacturing capabilities, gains more market share through additional hardware and materials, and develops our proprietary
software
Platform, we have exciting opportunities before us. “
Shapeways 2021 third quarter results
Shapeways chief financial officer Jennifer Walsh (Jennifer Walsh) revealed some more detailed results during the earnings call. Walsh said that the company’s manufacturing business generated $6 million in the third quarter of 2021, accounting for 78% of total revenue, the same as the third quarter of 2020.
△Shapeways is committed to expanding manufacturing capacity, the photo is from Shapeways
In addition, Shapeways provides a platform for store owners to sell products, which brought only $1.7 million in revenue in the third quarter of 2021, a decrease of $400,000 from the third quarter of 2020. They did not attribute the decline in the market to COVID or the delay of the IPO, but to the “lower economics of the customer base” and emphasized that its current goal is “
profit
Higher corporate customers”.
Kress emphasized in the conference call that Shapeways’ gross profit margin increased from 45.7% in the third quarter of 2020 to 47.5% in the third quarter of 2021. However, during the same period, the company’s net loss also increased from US$400,000 to US$15.6 million (mainly due to IPO-related gains), and its year-to-date revenue was US$25 million, which is still lower than that released earlier in 2021. A fiscal year guidance of $44 million.
Expansion continues
Although Shapeways has failed to meet its revenue forecast so far this year, it has still reached several milestones:
● In February, the company revealed that it had 3D printed more than 20 million parts, and also showed some “groundbreaking products.”
● Starting in July 2021, 3D printing patient-specific models for Armor Bionics will be used to obtain more accurate
Medical treatment
Diagnose and plan better
Operation
program.
● In order to meet the expected increase in user demand, the company has also expanded
Desktop Metal
Partnership.
Regarding Shapeways’ prospects for 2022, Kress expressed an optimistic attitude on the earnings call, stating that the company “has
car
and
aviation
aerospace
Establish channels such as high-value markets.” As next year progresses, these efforts will bring rewards.
Kress added: “As we look to the future, we believe that Shapeways’ platform has multiple growth opportunities. We believe that Shapeways is in a good position as customers turn to digital manufacturing to achieve rapid, part production to alleviate the increasingly common supply chain disruption. We are ready to expand materials, markets, and technology through the software as a service we provide.”
Shapeways’ future investment plan
Shapeways’ balance sheet at the end of the third quarter of 2021 showed that with $90.3 million in cash and equivalents, Kress emphasized that the company is considering “supplementary acquisitions” and needs to expand production capacity.
In order to address what he called the higher-value “mid-market” and corporate customers, Kress added that Shapeways needs to start by expanding its internal team, and then begin to determine acquisition targets after gaining “a little bit of appeal.”
In contrast, Shapeways is indeed facing a lot of pressure, the same is3D printingThe service platforms Xometry and Protolabs have achieved good results.
(Editor in charge: admin)
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