3D Systems has announced its financial results for the fourth quarter and full-year 2019.
Headline revenue for FY2019 was reported at $629.1 million, down 9 percent from FY2018 which was $687.7 million. 3D system’s Q4 2019 revenue accounted for $164.6 million of the full-year total, a decrease of 9 percent from $177.3 million for Q4 2018.
The fall in revenue has been attributed to a decline in printer sales, caused by a delay in factory metals printing shipments, the timing of large enterprise customer orders and the softer macro industrial environment. However, materials experienced growth in Q4 2019 for 3D Systems.
From the conference call following the results, software was highlighted as a growth opportunity for 3D Systems in 2020, as well as the company’s metal 3D printing platforms. 3D Systems also expects health care to be an area of growth in 2020. Vyomesh Joshi, president and CEO, 3D Systems, explains:
“Now in 2020 we believe we have the right products and solutions, including our planned shipment of factory metals printers in the second quarter, to accelerate the adoption of additive manufacturing technology and drive profitable revenue growth.”
3D systems revenue by division
3D Systems revenue is reported in two divisions: Products and Services. Products comprise the company’s revenue generated by 3D printers and materials, whereas Services include 3D Systems’ healthcare solutions and the company’s general on-demand manufacturing capabilities.
In Q4 2019, Products revenue was reported at $104 million, down 8 percent from Q4 2018, which was $113.1 million. For the full year ended December 31, 2019, Products revenue was reported at $384.6 million. This figure stood at $429.2 million for FY2018’s total revenue for Products, representing a 10.4 percent decline.
Across the Products division for the whole year, 3D Systems reported a 24.3 percent decrease for 3D printer revenue specifically, compared to FY2018. Materials revenue also fell by 0.6 percent between the same periods. Although 3D printer revenue continued to decline in Q4 2019, decreasing by 22.8 percent compared to Q4 2018, materials revenue experienced a 7.3 percent growth.
|Revenue ($ thousands)||Q4 2019||Q4 2018||Variance||%|
Services revenue for Q4 2019 was reported at $60.6 million down 10.4% on Q4 2018’s $67.7 million. For the full year, Services contributed $244.5 million in revenue, whereas in 2018 the figure was at $258.4 million. 3D system’s revenue from on-demand services experienced a 17.2 percent decline in Q4 2019, as well as a decrease of 13.5 percent for FY2019.
|Revenue ($ thousands)||FY2019||FY2018||Variance||%|
Commenting on the performance over the past 12 months, Joshi explains that he is pleased with the growth in materials presented within the figures: “Despite macroeconomic headwinds, I’m pleased with the growth in materials in the second half and our continued focus on cost structure.” For the FY2018 results, Materials creation was listed as a prominent focus for the year ahead in 2019.
Focus on healthcare and software
With an upcoming focus on software and healthcare for 2020, 3D Systems has been engaged in a number of launches and collaborations in relation to both these segments over the last year. The company has been releasing consistent yearly updates for its 3DXpert 3D printing preparation software, with the most recent one arriving during SOLIDWORKS WORLD 2020. In February 2019, 3D Systems also announced a new version for its Geomagic CAD software solution.
In healthcare, 3D Systems recently partnered with Israeli bioprinting material developer CollPlant to provide a technology package for bioprinting tissues and scaffolds. The company also announced a partnership with Antleron, a Belgium-based biotechnology company, to develop regenerative products for personalized patient care in October 2019.
In the conference call, Joshi explained that “Health care continues to be the important area of focus for the company and we expect medical device manufacturing, medical simulators, and professional services in our healthcare business to continue to grow in 2020. We have incredible software assets. And with our new product introductions and go-to-market enhancements, we will start growing software in 2020.”
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Featured image shows new zero-thickness struts fill object with open faces allowing for lower weight and faster printing. Lattice Design Freedom in 3DXpert Version 15. Image via 3D Systems.