3D Systems Corporation Reports 8.8% Revenue Decline and Widened Net Loss in Q3 2024

3D Systems Corporation reported a significant decline in its financial performance for the third quarter of 2024, with total revenue of $112.9 million, down 8.8% from $123.8 million in the same period last year. The decrease was driven by a 9.3% drop in product revenue, which fell to $73.0 million, and a 7.8% decline in service revenue, which totaled $40.0 million. The company's gross profit also decreased to $41.7 million, representing a gross profit margin of 36.9%, down from 44.7% in the prior year. The net loss attributable to 3D Systems Corporation widened to $178.6 million, compared to a loss of $11.7 million in the third quarter of 2023.

The company's financial struggles were exacerbated by substantial asset impairment charges totaling $143.7 million, which included a $101.4 million goodwill impairment related to its Healthcare Solutions segment. This impairment was attributed to a significant decline in the company's stock price and reduced long-term cash flow forecasts. Additionally, the company recorded $31.2 million in impairment charges for intangible assets, $5.9 million for property and equipment, and $5.2 million for right-of-use assets. Operating expenses surged to $222.5 million, driven by increased selling, general, and administrative expenses, which rose by 73.8% to $58.0 million.

Strategically, 3D Systems has been undergoing a restructuring plan initiated in 2023 aimed at improving operational efficiencies. The company has substantially completed its in-sourcing activities and has exited 15 leased facilities as part of its geographic footprint rationalization. The restructuring is expected to yield annualized cost savings between $45 million and $55 million. Furthermore, the company completed the acquisition of Wematter AB, a Swedish 3D printer manufacturer, in July 2023, which is anticipated to enhance its Selective Laser Sintering portfolio.

In terms of operational metrics, 3D Systems reported a decrease in cash and cash equivalents, which fell to $190.0 million from $331.5 million at the end of 2023. The company also experienced a reduction in accounts receivable and inventories, indicating a tightening of working capital. The total number of shares outstanding as of November 21, 2024, was 135,620,168. Looking ahead, 3D Systems anticipates continued challenges due to macroeconomic conditions affecting customer demand and pricing pressures, particularly in its key dental market. The company remains focused on executing its restructuring plan and exploring strategic alternatives for its remaining assets.