Proto Labs Inc. reached new milestones in the third quarter, increasing revenue to a record $23 million in its Hubs digital manufacturing network business, as Protolabs total revenue grew 7.1% to an all-time high $130.7 million, president and CEO Robert Bodor said.
The company’s financial gains reversed recent quarterly declines, as Bodor noted that Protolabs did well in Q3 despite continued softness in manufacturing markets.
“We continue to accelerate innovation for customers with the fastest and most reliable lead times in the industry,” Bodor said on a Q3 earnings call. “The broader economic environment is still uncertain. Manufacturing conditions in the U.S. and Europe remain soft and have not consistently improved throughout 2023.”
Protolabs revenue in Q3
Despite that economic downturn, Protolabs “grew in the quarter, especially in our digital manufacturing network business,” he said.
Bodor added that Protolabs is gaining market share with larger companies and expanding in new markets.
“Recently, a luxury high-end automotive manufacturer selected Protolabs to assist with its first foray into the electric vehicle market,” he said, without naming the manufacturer.
Bodor added that Protolabs worked with vehicle manufacturer’s design firm, Hutchinson, to make prototypes for and electric vehicle battery pack cooling system.
“We rapidly manufactured injection molded parts, which meant stringent project timelines and quality utilizing our speed, reliability and quality,” he said.
Bodor noted that Protolabs’ traditional business over most of its 24-year history has been in manufacturing prototypes of parts that customers use in designing and testing new products. But it is now seeing growing demand for parts that customers use in the production of final products.
Protolabs “is becoming a one-stop shop for custom prototypes and low-volume production,” he said.
Protolabs’ services include:
- Injection molding
- 3D printing
- Sheet metal
- CNC machining
CNC machining is a manufacturing process in which pre-programmed applications dictate the movement of factory tools and machinery. The process enables three-dimensional cutting tasks to be accomplished in a single set of prompts.
Protolabs reported for the third quarter ended June 30:
- 23,800 product developers served by its digital manufacturing.
- Gross profit of $59.28 million, for a gross margin of 45.4%. That’s up from $53.6 million and 44% a year earlier.
- $19.5 million in earnings before interest, tax, depreciation and amortization (EBITDA) or 14.9% of revenue. That’s up from $11.4 million and 9.3%.
- Net income of $7.95 million, up from $3.95 million.
For the nine months ended June 30:
- Revenue of $166.18 million, nearly unchanged from $166.85 million a year earlier.
- Net income of $10.32 million, down from $11.60 million.
Paul Demery is a Digital Commerce 360 contributing editor covering B2B digital commerce technology and strategy. [email protected].
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