FRIEDBERG, Germany — (BUSINESS WIRE) — November 16, 2023 — voxeljet AG (NASDAQ: VJET) (the ‘Company’, ‘voxeljet’, or ‘we’), a provider of high-speed, large-format 3D printers and on-demand parts services to industrial and commercial customers, today announced consolidated financial results for the third quarter ended September 30, 2023.

Highlights - Third Quarter 2023 compared to the Third Quarter 2022

• Total revenues for the third quarter increased 7.5% to kEUR 6,167 from kEUR 5,735
• Gross profit margin decreased to 26.8% from 28.7%
• Systems revenues increased 25.2% to kEUR 3,386 from kEUR 2,704
• Services revenues decreased 8.2% to kEUR 2,781 from kEUR 3,031
• Refine in part our full year 2023 guidance, to reflect the upper end of our prior revenue guidance and lowered expenditures

Dr. Ingo Ederer, Chief Executive Officer of voxeljet, commented: “Demand for our products remains at a high level in all regions. Supply chain issues are becoming less critical; accordingly, we are targeting the upper end of our full-year sales guidance for 2023. Everyone at voxeljet is fully focused on making the fourth quarter of this year our best quarterly result ever. Another key priority in this market environment is to preserve cash: we have launched an initiative to reduce costs without jeopardizing our growth targets. This took effect in the third quarter of this year and includes lower OPEX, CapEx and personnel costs. Our goal is to achieve break-even adjusted EBITDA on a full-year basis by 2025 at the latest.”

Three Months Ended September 30, 2023 Results

Revenues for the third quarter of 2023 increased by 7.5% to kEUR 6,167 compared to kEUR 5,735 in the third quarter of 2022.

Revenues from our Systems segment, which focuses on the development, production and sale of 3D printers, increased 25.2% to kEUR 3,386 in the third quarter of 2023 from kEUR 2,704 in last year’s third quarter. The Company sold three new 3D printers in the third quarter of 2023 compared to one new and one used and refurbished 3D printer in last year’s third quarter resulting in significantly higher revenue from the sale of 3D printers. Systems revenues also include all Systems-related revenues from consumables, spare parts and maintenance. Those Systems-related revenues slightly decreased in the third quarter year-over-year. Systems revenues represented 54.9% of total revenues in the third quarter of 2023 compared to 47.1% in last year’s third quarter.

Revenues from our Services segment, which focuses on the printing of on-demand parts for our customers, decreased 8.2% to kEUR 2,781 in the third quarter of 2023 from kEUR 3,031 in the comparative period of 2022. This was due to lower revenue contributions from our subsidiary voxeljet America Inc. (‘voxeljet America’), our German service center as well as our subsidiary voxeljet China Co. Ltd. (‘voxeljet China’). The decrease reflected a lower market demand in all of our sales regions in the third quarter of 2023, compared to last year’s same period.

Cost of sales were kEUR 4,515 for the third quarter of 2023 compared to kEUR 4,089 for the third quarter of 2022.

Gross profit and gross profit margin were kEUR 1,652 and 26.8%, respectively, in the third quarter of 2023 compared to kEUR 1,646 and 28.7%, respectively, in the third quarter of 2022.

Gross profit for our Systems segment increased to kEUR 829 in the third quarter of 2023 from kEUR 651 in the third quarter of 2022. Additionally, gross profit margin for this segment increased to 24.5% in the third quarter of 2023 compared to 24.1% in the third quarter of 2022. Gross profit from the sale of 3D printers increased in line with the increase in revenue, while gross profit margin decreased due to a less favorable product mix. Systems-related revenues gross profit and gross profit margin improved significantly mainly due to lower quarter over quarter expenses from the change in valuation allowance for inventories following the Company’s inventory reserve policy amounting to kEUR 77 negative for the third quarter of 2023 compared to kEUR 263 negative in last year’s same period.

Gross profit for our Services segment decreased to kEUR 823 in the third quarter of 2023 compared to kEUR 995 in the third quarter of 2022. Additionally, gross profit margin for this segment decreased to 29.6% in the third quarter of 2023 from 32.8% in the third quarter of 2022. The main driver for the decline in gross profit, and gross profit margin were lower contributions from our German operation and from our Chinese service center. This was a result of lower utilization of both service centers in line with the substantial decreases in revenues. Gross profit contributions from our American service center decreased related to the decline in revenues, while gross profit margin was almost flat.

Selling expenses were kEUR 1,790 for the third quarter of 2023 compared to kEUR 2,015 in the third quarter of 2022. This decrease was mainly related to lower distribution expenses. Distribution expenses such as shipping and packaging are a main driver of selling expenses, and not only depend on the amount of revenue, but also on quantities and types of products sold and the destinations of where those goods are being delivered. Therefore, distribution expenses can vary noticeably from quarter to quarter.

Administrative expenses were kEUR 1,782 for the third quarter of 2023 compared to kEUR 1,566 in the third quarter of 2022. This increase was mainly related to higher advisor fees related to communication with financial institutions in connection with funding activities.

Research and development (‘R&D’) expenses decreased to kEUR 1,534 in the third quarter of 2023 from kEUR 1,673 in the third quarter of 2022. The decrease of kEUR 139 was mainly due to lower usage of external services, lower material consumption as well as lower personnel expenses. R&D expenses can vary from quarter to quarter and are usually driven by variations in project types and phases.

Other operating expenses in the third quarter of 2023 were kEUR 181 compared to kEUR 159 in the prior year period. This was mainly due to higher losses from foreign currency transactions of kEUR 171 for the third quarter of 2023 compared to kEUR 100 for the third quarter of 2022.

Other operating income was kEUR 837 for the third quarter of 2023 compared to kEUR 1,227 in the third quarter of 2022. The decrease was mainly due to lower gains from foreign currency transactions, which decreased to kEUR 349 for the third quarter of 2023 from kEUR 763 in last year’s third quarter. This was partially offset by higher cost reimbursements for R&D expenses amounting to kEUR 259 for the third quarter of 2023, compared to kEUR 104 for the third quarter of 2022. Furthermore, other operating income included government grants awarded for R&D projects of kEUR 179 (third quarter 2022: kEUR 158).

The changes in foreign currency gains were primarily driven by the valuation of the intercompany loans granted by the parent company to our U.S. subsidiary. The changes in foreign currency losses were mainly driven by the valuation of the promissory note issued to Anzu in January 2023.

Operating loss was kEUR 2,798 in the third quarter of 2023 compared to an operating loss of kEUR 2,540 in the comparative period in 2022. This was mainly due to a lower positive net impact from other operating expenses and other operating income amounting to kEUR 656 for the third quarter of 2023 compared to a positive net impact amounting to kEUR 1,068 for the third quarter of 2022, in combination with higher administrative expenses in the third quarter of 2023 compared to the third quarter of 2022. This was partially offset by lower selling expenses as well as lower research and development expenses, while gross profit was almost flat.