Proto Labs’ first quarter results were well received by the market, as management pointed to growth in its production manufacturing business and improved customer engagement. CEO Rob Bodor emphasized the company’s progress in shifting from a prototyping-focused model, highlighting that customers using both prototyping and production services grew more than 45% in the last year. Meanwhile, stronger marketing efforts and operational adjustments also contributed to sequential revenue growth, despite ongoing macroeconomic challenges affecting overall demand.
Is now the time to buy PRLB? Find out in our full research report (it’s free).
Proto Labs (PRLB) Q1 CY2025 Highlights:
- Revenue: $126.2 million vs analyst estimates of $123.7 million (1.3% year-on-year decline, 2% beat)
- Adjusted EPS: $0.33 vs analyst estimates of $0.29 (13% beat)
- Adjusted EBITDA: $17.39 million vs analyst estimates of $16.47 million (13.8% margin, 5.6% beat)
- Revenue Guidance for Q2 CY2025 is $128 million at the midpoint, above analyst estimates of $126.4 million
- Adjusted EPS guidance for Q2 CY2025 is $0.34 at the midpoint, above analyst estimates of $0.33
- Operating Margin: 3.6%, down from 5.3% in the same quarter last year
- Market Capitalization: $934.7 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Proto Labs’s Q1 Earnings Call
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Brian Drab (William Blair) inquired about the sustainability of gross margin improvements. CFO Dan Schumacher explained that higher factory volumes drove the gains, but future margins will depend on the mix between network and factory fulfillment.
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Drab (William Blair) also asked if tariffs were causing challenges for the Proto Labs Network. CEO Rob Bodor responded that the network’s flexibility allows real-time adaptation, mitigating tariff impacts and supporting continued growth.
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Greg Palm (Craig-Hallum Capital Group) questioned trends in order growth and customer behavior. Schumacher noted steady improvement in orders, especially within the network, while Bodor added that production offerings are increasingly resonating with customers.
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Troy Jensen (Cantor Fitzgerald) asked whether production growth would favor the factory or network. Bodor and Schumacher clarified that both channels are being utilized for production, with quality standards applied equally across all partners.
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James Ricchiuti (Needham & Company) sought clarity on 3D printing trends and alignment with production strategy. Bodor acknowledged ongoing headwinds in prototyping, but emphasized that production-oriented 3D printing segments are growing within the current portfolio.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be monitoring (1) sustained momentum in production manufacturing, especially in target sectors like aerospace and defense, (2) the company’s ability to maintain customer growth and higher revenue per customer, and (3) trends in gross and operating margins as the mix of network and factory fulfillment shifts. Execution of marketing campaigns and operational efficiency initiatives will also be key indicators of future performance.
Proto Labs currently trades at $39.84, up from $35.81 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
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