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More information on the company is available at Tables Follow 3D Systems CorporationUnaudited Condensed Consolidated Balance SheetsSeptember 30, 2024 and December 31, 2023 (in thousands, except par value) September 30, 2024 December 31, 2023ASSETS Current assets: Cash and cash equivalents$190,005 $331,525 Accounts receivable, net of reserves — $2,137 and $3,389 99,224 101,497 Inventories 134,926 152,188 Prepaid expenses and other current assets 35,858 42,612 Total current assets 460,013 627,822 Property and equipment, net 53,907 64,461 Intangible assets, net 20,961 62,724 Goodwill 14,967 116,082 Operating lease right-of-use assets 49,384 58,406 Finance lease right-of-use assets 9,185 12,174 Long-term deferred income tax assets 4,041 4,230 Other assets 45,818 44,761 Total assets$658,276 $990,660 LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND EQUITY Current liabilities: Current operating lease liabilities$9,628 $9,924 Accounts payable 42,414 49,757 Accrued and other liabilities 44,882 49,460 Customer deposits 8,655 7,599 Deferred revenue 33,336 30,448 Total current liabilities 138,915 147,188 Long-term debt, net of deferred financing costs 211,682 319,356 Long-term operating lease liabilities 51,000 56,795 Long-term deferred income tax liabilities 5,214 5,162 Other liabilities 31,340 33,400 Total liabilities 438,151 561,901 Commitments and contingencies Redeemable non-controlling interest 2,093 2,006 Stockholders’ equity: Common stock, $0.001 par value, authorized 220,000 shares; shares issued 134,826 and 133,619 as of September 30, 2024 and December 31, 2023, respectively 135 134 Additional paid-in capital 1,588,911 1,577,519 Accumulated deficit (1,328,536) (1,106,650)Accumulated other comprehensive loss (42,478) (44,250)Total stockholders’ equity 218,032 426,753 Total liabilities, redeemable non-controlling interest and stockholders’ equity$658,276 $990,660 3D Systems CorporationUnaudited Condensed Consolidated Statements of OperationsThree and Nine Months Ended September 30, 2024 and 2023 Three Months Ended Nine Months Ended(in thousands, except per share amounts)September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023Revenue: Products$72,968 $80,415 $208,752 $253,968 Services 39,972 43,376 120,345 119,253 Total revenue 112,940 123,791 329,097 373,221 Cost of sales: Products 47,533 47,427 129,571 153,442 Services 23,694 21,014 69,793 67,315 Total cost of sales 71,227 68,441 199,364 220,757 Gross profit 41,713 55,350 129,733 152,464 Operating expenses: Selling, general and administrative 57,974 33,355 166,772 150,623 Research and development 20,764 21,982 66,260 66,953 Asset impairment charges 143,733 13,597 143,733 13,597 Total operating expenses 222,471 68,934 376,765 231,173 Loss from operations (180,758) (13,584) (247,032) (78,709)Non-operating income (expense): Foreign exchange loss, net (1,960) (2,202) (774) (3,847)Interest income 1,550 5,841 5,800 15,730 Interest expense (606) (932) (1,944) (2,612)Other (loss) income, net (51) (105) 21,719 420 Total non-operating (loss) income (1,067) 2,602 24,801 9,691 Loss before income taxes (181,825) (10,982) (222,231) (69,018)Benefit (provision) for income taxes 4,343 (174) 2,496 (404)Loss on equity method investment, net of income taxes (1,254) (605) (2,403) (747)Net loss before redeemable non-controlling interest (178,736) (11,761) (222,138) (70,169)Less: net loss attributable to redeemable non-controlling interest (109) (57) (252) (149)Net loss attributable to 3D Systems Corporation$(178,627) $(11,704) $(221,886) $(70,020) Net loss per common share: Basic$(1.35) $(0.09) $(1.69) $(0.54)Diluted$(1.35) $(0.09) $(1.69) $(0.54) Weighted average shares outstanding: Basic 132,235 130,263 131,621 129,780 Diluted 132,235 130,263 131,621 129,780 3D Systems CorporationUnaudited Condensed Consolidated Statements of Cash FlowsNine Months Ended September 30, 2024 and 2023 Nine Months Ended(in thousands)September 30, 2024 September 30, 2023Cash flows from operating activities: Net loss before redeemable non-controlling interest$(222,138) $(70,169)Adjustments to reconcile net loss to net cash used in operating activities: Depreciation, amortization and accretion of debt discount 28,837 27,054 Stock-based compensation 17,339 15,140 Loss on short-term investments — 6 Non-cash operating lease expense 7,370 6,552 Provision for inventory obsolescence 10,332 6,061 Provision for bad debts 148 197 Loss on the disposition of businesses, property, equipment and other assets 1,649 51 Gain on debt extinguishment (21,518) — Provision (benefit) for deferred income taxes and reserve adjustments 451 141 Loss on equity method investment, net of taxes 2,403 747 Asset impairment charges 143,733 14,856 Changes in operating accounts: Accounts receivable 2,594 (11,706)Inventories 5,972 (23,106)Prepaid expenses and other current assets 6,831 (2,790)Accounts payable (7,201) (7,717)Deferred revenue and customer deposits 4,533 1,351 Accrued and other liabilities (9,843) (16,066)All other operating activities (8,601) (12,495)Net cash used in operating activities (37,109) (71,893)Cash flows from investing activities: Purchases of property and equipment (10,798) (20,995)Sales and maturities of short-term investments — 180,925 Proceeds from sale of assets and businesses, net of cash sold 96 — Acquisitions and other investments, net of cash acquired (2,450) (29,241)Net cash (used in) provided by investing activities (13,152) 130,689 Cash flows from financing activities: Repayment of borrowings/long-term debt (87,218) — Taxes paid related to net-share settlement of equity awards (2,526) (4,752)Other financing activities (1,003) (463)Net cash used in financing activities (90,747) (5,215)Effect of exchange rate changes on cash, cash equivalents and restricted cash (530) 1,561 Net (decrease) increase in cash, cash equivalents and restricted cash (141,538) 55,142 Cash, cash equivalents and restricted cash at the beginning of the year (a) 333,111 391,975 Cash, cash equivalents and restricted cash at the end of the period (a)$191,573 $447,117 (a)The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets to the total of such amounts reported in the condensed consolidated statements of cash flows.(in thousands)September 30, 2024 December 31, 2023 September 30, 2023 December 31, 2022Cash and cash equivalents$190,005 $331,525 $445,554 $388,134Restricted cash included in prepaid expenses and other current assets 122 119 118 114Restricted cash included in other assets 1,446 1,467 1,445 3,727Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows$191,573 $333,111 $447,117 $391,975 Amounts included in restricted cash as of September 30, 2024, December 31, 2023 and September 30, 2023 primarily relate to guarantees in the form of a standby letter of credit as security for a long-term real estate lease.
The remaining amounts in restricted cash in all periods presented relate to collateral for letters of credit and bank guarantees. Appendix3D Systems CorporationUnaudited Reconciliations of GAAP to Non-GAAP MeasuresThree and Nine Months Ended September 30, 2024, 2023 Gross Profit and Gross Profit Margin (1) Three Months Ended September 30,(in millions) 2024 2023 Gross Profit Gross Profit Margin Gross Profit Gross Profit MarginGAAP$41.7 36.9% $55.4 44.7%Amortization expense included in Cost of sales 0.3 0.1 Severance accrual adjustment 0.5 — Non-GAAP (2)$42.5 37.6% $55.5 44.8% (1) Amounts in table may not foot due to rounding(2) Calculated as non-GAAP gross profit as a percentage of total revenue Nine Months Ended September 30,(in millions) 2024 2023 Gross Profit Gross Profit Margin Gross Profit Gross Profit MarginGAAP$129.7 39.4% $152.5 40.9%Amortization expense included in Cost of sales 0.8 0.1 Severance accrual adjustment (0.5) — Non-GAAP (2)$130.0 39.5% $152.6 40.9% (1) Amounts in table may not foot due to rounding(2) Calculated as non-GAAP gross profit as a percentage of total revenue Non-GAAP Operating Expense(1) Three Months Ended September 30, Nine Months Ended September 30,(in millions) 2024 2023 2024 2023 Operating expense$222.5 $68.9 $376.8 $231.2 Amortization expense (8.1) (3.1) (12.4) (9.6)Stock-based compensation expense (5.8) 3.1 (17.4) (15.1)Acquisition and divestiture-related expense (0.6) 4.1 (0.8) (0.1)Legal and other expense (2.6) (2.1) (9.2) (4.9)Restructuring expense (0.2) (1.5) (1.4) (6.7)Asset impairment charges (143.7) (13.6) (143.7) (14.2)Non-GAAP operating expense$61.4 $55.8 $191.9 $180.6 (1) Amounts in table may not foot due to rounding Appendix3D Systems CorporationUnaudited Reconciliations of GAAP to Non-GAAP MeasuresThree and Nine Months Ended September 30, 2024, 2023 Net Loss to Adjusted EBITDA (1) Three Months Ended September 30, Nine Months Ended September 30,(in millions) 2024 2023 2024 2023 Net loss attributable to 3D Systems Corporation$(178.6) $(11.7) $(221.9) $(70.0)Interest (income) expense, net (0.9) (4.9) (3.9) (13.1)Provision for income taxes (4.3) 0.2 (2.5) 0.4 Depreciation expense 4.6 5.1 14.5 15.7 Amortization expense 8.4 3.2 13.3 9.7 EBITDA (170.9) (8.2) (200.5) (57.4)Stock-based compensation expense 5.8 (3.1) 17.4 15.1 Acquisition and divestiture-related expense 0.6 (4.1) 0.8 0.1 Legal and other related costs 2.6 2.1 9.2 4.9 Restructuring expense 0.7 1.5 0.8 6.7 Net loss attributable to redeemable non-controlling interest (0.1) (0.1) (0.3) (0.1)Loss on equity method investments, net of tax 1.3 0.6 2.4 0.7 Gain on repurchase of debt — — (21.5) — Asset impairment charges 143.7 13.6 143.7 14.2 Other non-operating expense (income) 2.0 2.3 0.6 3.4 Adjusted EBITDA$(14.3) $4.7 $(47.3) $(12.3) (1) Amounts in table may not foot due to rounding Appendix3D Systems CorporationUnaudited Reconciliations of GAAP to Non-GAAP MeasuresThree and Nine Months Ended September 30, 2024, 2023 Diluted Loss per Share (1) Three Months Ended September 30, Nine Months Ended September 30,(in dollars) 2024 2023 2024 2023 Diluted loss per share$(1.35) $(0.09) $(1.69) $(0.54)Stock-based compensation expense 0.04 (0.02) 0.13 0.12 Amortization expense 0.06 0.02 0.10 0.07 Acquisition and divestiture-related expense — (0.03) 0.01 — Legal expense 0.02 0.02 0.07 0.04 Asset impairment charges 1.09 0.10 1.09 0.11 Restructuring expense 0.01 0.01 0.01 0.05 Gain on repurchase of debt — — (0.16) — Loss on equity method investment and other 0.01 — 0.02 0.01 Non-GAAP diluted loss per share$(0.12) $0.01 $(0.42) $(0.
Third Quarter Highlights (All numbers are unaudited and are presented in millions, except per share amounts or as otherwise noted) Revenue of $112.9 million decreased 9% year-over-year primarily driven by macro weakness in printer sales, partially offset by approximately 10% growth in consumables salesHealthcare Solutions revenue of $55.1 million grew 5% year-over-year, led by strong growth in Dental and Personalized Healthcare solutionsCustomer interest in 3D printing applications continued to gain momentum, with revenues in the Application Innovation Group (AIG) growing over 26% year-to-date versus prior year across industrial marketsQ3'24 gross profit margin of 36.9% and Non-GAAP gross profit margin(1) of 37.6% included a $3 million headwind related to an increase in inventory reserves - if excluded, Non-GAAP gross profit margin was 40.2%Q3'24 net loss of $178.6 million, diluted loss per share of $1.35, which includes $143.7 million associated with the impairment of goodwill and other long-lived assets.
