NEW YORK - 3D Systems Corporation (NYSE:DDD) reported second-quarter results that missed analyst expectations and lowered its full-year revenue guidance, sending shares down 3.85% in after-hours trading.
The 3D printing company posted a non-GAAP loss of $0.14 per share for Q2, wider than the $0.05 loss analysts were expecting. Revenue came in at $113.3 million, below the consensus estimate of $116.56 million and down 11.7% year-over-year.
"We are encouraged by the sequential revenue progress we delivered during the second quarter despite a challenging operating environment," said Dr. Jeffrey Graves, president and CEO of 3D Systems. "Our top-line improved 10% quarter-over-quarter, reflecting strong performance by our Industrial and Healthcare markets for hardware, materials, and services."
However, the company lowered its full-year 2024 revenue guidance to a range of $450-460 million, down from its previous outlook and below analyst expectations of $474 million.
3D Systems said the year-over-year revenue decline was primarily due to reduced printer sales to a specific dental customer and ongoing macroeconomic pressures on customer capital spending.
The company's gross profit margin improved to 41.6% in Q2 from 39.0% a year ago, which management attributed to favorable product mix.
Looking ahead, 3D Systems expects continued sequential revenue improvements in Q3 and Q4. The company also anticipates exiting the year with normalized non-GAAP operating expenses below $60 million in Q4.
"While conditions remain challenging in the near-term, we have taken considerable actions to derisk our balance sheet since the end of 2023 and believe we are well-positioned with our critical R&D investments to capitalize on a very bright future ahead," Dr. Graves added.
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