Call Start: 08:30 January 1, 0000 9:09 AM ET

Proto Labs, Inc. (NYSE:PRLB)
Q3 2024 Earnings Conference Call
November 01, 2024 08:30 AM ET

Company Participants

Jason Frankman - VP and Corporate Controller
Rob Bodor - President and CEO
Dan Schumacher - CFO

Conference Call Participants

Brian Drab - William Blair
Jim Ricchiuti - Needham & Company
Troy Jensen - Cantor Fitzgerald
Greg Palm - Craig-Hallum Capital

Operator

Greetings. Welcome to Proto Labs Third Quarter 2024 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. As a reminder, this conference is being recorded.

It is now my pleasure to introduce Jason Frankman, Corporate Controller. Thank you. You may begin.

Jason Frankman

Thank you, Sherry, and welcome everyone, to Proto Labs' Third Quarter 2024 Earnings Conference Call. I'm joined today by Rob Bodor, President and Chief Executive Officer; and Dan Schumacher, Chief Financial Officer. This morning, Proto Labs issued a press release announcing its financial results for the third quarter ended September 30, 2024. The release is available on the Company's website. In addition, a prepared slide presentation is available online at the web address provided in our press release.

Our discussion today will include statements relating to future performance and expectations that are or may be considered forward-looking statements and subject to many risks and uncertainties that could cause actual results to differ materially from expectations. Please refer to our earnings press release and recent SEC filings, including our Annual Report on Form 10-K for information on certain risks that could cause actual outcomes to differ materially and adversely from any forward-looking statements made today.

The results and guidance we will discuss include non-GAAP financial measures consistent with our past practice. Please refer to our press release and the accompanying slide presentation at the Investor Relations section of our company website for a complete reconciliation of GAAP to non-GAAP results.

Now I'll turn the call over to Rob Bodor. Rob?

Rob Bodor

Thanks, Jason. Good morning everyone, and thank you for joining our third quarter 2024 earnings call. We had solid execution in the quarter with results coming in above expectations. Despite continued dynamic challenges in the manufacturing sector, our disciplined approach and resilient business model drove solid financial and operational results.

Year-to-date, we've grown non-GAAP earnings per share over 10%. Additionally, in the third quarter, Proto Labs generated its highest quarterly operating cash flow since 2020 before the acquisition of 3D Hubs. This was driven in part by continued gross margin improvements in the Factory and the Network, and is a testament to the profitability of our business model against any macro backdrop, driven by our unique comprehensive fulfillment model.