Binder jetting technology manufacturer voxeljet (NASDAQ: VJET) posted its earnings report for the year’s second quarter and beat analysts’ forecasts. The Germany-headquartered company said total revenues for the second quarter increased 35.4% to €6.7 million from €4.9 million year-over-year, outperforming the consensus estimate of €5.6 million. As for profitability, voxeljet continues to recognize net losses during the first half of 2022, announcing a loss of €1.8 million, or €0.26 per share. However, this was much better than last year’s second quarter loss, which rounded at €2.5 million, or €0.41 per share, beating analysts’ consensus estimates of (€0.37) by €0.11.
Commenting on the period’s results, CEO Ingo Ederer remarked: “We are very happy with the results for the quarter. We continue to be extremely busy in our on-demand printing segment and won major orders for 3D printing systems over the last months. With the currently signed number of orders for 3D printers, we have already achieved our target for 2022. Now, we are working hard to make the deliveries and installations on time to be able to record revenue for these orders in 2022.”
Ederer, a mechanical engineer who has been with the company for over two decades, highlighted the delays voxeljet is having with suppliers as well as increasing costs, particularly for electrical components. In fact, the cost of sales for this quarter was €4.6 million for the second quarter of 2022, an increase of more than €1 million compared to the cost of sales of €3.5 for the same period in 2021.
Revenue from both systems and services segments increased 35% and 35.8%, respectively. This was mainly due to an increase in the sale of 3D printers and systems-related revenues, as well as significantly higher contributions from voxeljet’s German service center and American subsidiary to its services segments, reflecting an increase in market demand in Europe and North America. Additionally, revenue contributions from the China subsidiary slightly increased, mainly due to growing market penetration in the Asia Pacific sales region, accompanied by a more extensive customer base.
Gross profit and gross profit margin were €2.1 million and 31.3%, respectively, in the second quarter of 2022, compared to €1.4 million and 28.6% in the second quarter of 2021. These increases were driven primarily by the sale of 3D printers, which saw a slight improvement. At the same time, the gross profit margin from systems-related revenues significantly decreased due to the higher valuation allowance for inventories following the company’s inventory reserve policy.
The company explained that its earnings statement was prepared based on a “going concern,” which is deemed reasonable for the time being as voxeljet continues to make payments to keep it operating despite some financial distress. It is considered so since voxeljet has recognized continuous net losses during the first half of 2022, the entire year of 2021, 2020, and 2019 amounting to €2.6 million, €10.6 million, €15.5 million, and €13.9 million, respectively. Also adding to the distress have been the negative cash flows from operating activities in the six months ended June 30, 2022, the full year 2021, 2020, and 2019 of €6.3 million, €6.5 million, €6.6 million, €6.6 million, respectively, mainly due to continuous net losses.
Earlier this month, the company also signed a sales-leaseback agreement with an unaffiliated real estate investor. According to the deal, selling voxeljet’s 135,380 square foot facility in Friedberg, Germany, will generate roughly €26.5 million in gross proceeds, which will help repay its outstanding financial liabilities. In addition, once the sale is finalized, voxeljet will lease the facility for 15 years.
Following the release of its earnings report on August 18, 2022, voxeljet stock opened at $6.47 the next day, returning to the value the shares had earlier this year. From late February through July, voxeljet stock oscillated between $4 and $3; however, like with many other companies, August has been a positive month for voxeljet and the US market in general, an above-average month for stocks.
Unlike other companies in the 3D printing sector, voxeljet remains confident that the next couple of months will drive more sales and revenue and has reaffirmed its guidance for the third quarter of the year, expecting revenue in the range of €5.5 million and €6 million, and between €25 million and €30 million for the entire year. As a result, the gross profit margin for the year is expected at 32.5%, while management anticipates the net income (loss) to be neutral to positive.
It’s difficult to say what the future will be like for many 3D printing companies. In the case of voxeljet, the company has seen its earnings decline in the last few years but forecasts revenue growth for the near future, and its stock has been relatively stable throughout the past year while retaining its market cap at $38.9 million. Although the company remains unprofitable for now, we are eager to see what the following earnings report looks like.
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