Proto Labs, Inc. has recently released its 10-K report, providing a detailed overview of its financial performance and operations. The company, headquartered in Maple Plain, Minnesota, operates as a digital manufacturer of custom parts in the United States and Europe. Proto Labs offers a range of manufacturing services, including injection molding, computer numerical control machining, three-dimensional printing, and sheet metal fabrication products, catering to developers and engineers who use 3D computer-aided design software to design products across various end-markets.
In its 10-K report, Proto Labs highlighted a decrease in total revenue to $500.9 million in the year ended December 31, 2024, compared to $503.9 million in the previous year. Operating expenses also increased to $203.3 million in 2024 from $193.8 million in 2023, primarily due to costs related to disposal and exit activities in Germany. The company's revenue outside of the United States accounted for approximately 21% of its consolidated revenue in both 2024 and 2023.
Proto Labs operates in a global custom contract manufacturing market, focusing on areas where it can automate the manufacturing process through its digital model and avoid routine, low-margin, high-volume commoditized manufacturing. The company has continually expanded its product lines and enhanced its technology and manufacturing processes to meet the needs of a broader set of customers.
The company's revenue is derived from its Injection Molding, CNC Machining, 3D Printing, and Sheet Metal product lines. It serves a diverse customer base and has focused on increasing revenue by gaining new customers and selling to its existing customer base through various marketing and selling activities.
In 2024, Proto Labs served 51,552 unique customer contacts, a decrease of 3.6% compared to 2023, while its revenue per customer contact grew by 3.1% compared to the previous year. The company's gross profit and gross margin are affected by factors such as its mix of revenue by product line, pricing, sales volume, manufacturing costs, and investments in production capacity.
Proto Labs anticipates continued substantial investments in technology and personnel, resulting in increased operating expenses in the future, particularly in marketing and sales, research and development, and general and administrative expenses.
As a result of these announcements, the company's shares have moved -3.3% on the market, and are now trading at a price of $40.65. Check out the company's full 10-K submission here.
