FRIEDBERG, Germany — (BUSINESS WIRE) — November 17, 2022 — 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, 2022.

Highlights - Third Quarter 2022 compared to the Third Quarter 2021

• Total revenues increased 16.1% to kEUR 5,735 from kEUR 4,938
• Gross profit margin decreased to 28.7% from 39.3%
• Systems revenues increased 8.3% to kEUR 2,704 from kEUR 2,497
• Services revenues increased 24.2% to kEUR 3,031 from kEUR 2,441
• Reaffirm full year 2022 revenue guidance while revising certain other elements of our guidance

Dr. Ingo Ederer, Chief Executive Officer of voxeljet, commented: “We are very happy with our performance over the last months, as we continued to collect orders for 3D printers, made progress in key R&D projects and were extremely busy in our on-demand 3D printing segment. In August, we signed off on a sale and leaseback transaction of our headquarters in Germany, which closed on October 31, 2022. This cleans up our balance sheet as we use the proceeds of this transaction to repay most of our financial liabilities. With the demand for our products as high as ever, we are very excited about how we are positioned for the coming years.”

Three Months Ended September 30, 2022 Results

Revenues for the third quarter of 2022 increased by 16.1% to kEUR 5,735 compared to kEUR 4,938 for the third quarter of 2021.

Revenues from our Systems segment, which focuses on the development, production and sale of 3D printers, increased 8.3% to kEUR 2,704 for the third quarter of 2022 from kEUR 2,497 for last year’s third quarter. The Company sold one new and one used and refurbished 3D printer in the third quarter of 2022 compared to one used and refurbished 3D printer in last year’s third quarter. Revenue from the sale of 3D printers decreased due to the product mix. Systems revenues also include all Systems-related revenues from consumables, spare parts and maintenance. Those Systems-related revenues significantly increased in the third quarter year over year, reflecting the higher installed base of our 3D printers in the market. Systems revenues represented 47.1% of total revenues in the third quarter of 2022 compared to 50.6% in last year’s third quarter.

Revenues from our Services segment, which focuses on the printing of on-demand parts for our customers, increased 24.2% to kEUR 3,031 for the third quarter of 2022 from kEUR 2,441 in the comparative period 2021. This was due to significantly higher revenue contributions from our German service center as well as our subsidiary voxeljet America Inc. (‘voxeljet America’), reflecting an increased market demand in Europe as well as North America. Revenue contributions from our subsidiary voxeljet China Co. Ltd. (‘voxeljet China’) were almost flat.

Cost of sales were kEUR 4,089 for the third quarter of 2022 compared to kEUR 2,997 for the third quarter of 2021.

Gross profit and gross profit margin were kEUR 1,646 and 28.7%, respectively, for the third quarter of 2022 compared to kEUR 1,941 and 39.3% for the third quarter of 2021.

Gross profit for our Systems segment decreased to kEUR 651 in the third quarter of 2022 from kEUR 1,102 in the third quarter of 2021. Also gross profit margin for this segment decreased to 24.1% in the third quarter of 2022 compared to 44.1% in the third quarter of 2021. Gross profit and gross profit margin from the sale of 3D printers as well as from Systems-related revenues decreased. This decrease was mainly due to a less favorable product mix regarding our printer sales. In addition the change in the allowance for inventories following the Company’s inventory reserve policy increased quarter over quarter, amounting to kEUR 263 negative for the third quarter of 2022 compared to kEUR 109 negative in the last year’s same period.

Gross profit for our Services segment increased to kEUR 995 for the third quarter of 2022 compared to kEUR 839 for the third quarter of 2021. The main driver for the improvement in gross profit were the contributions from our German service center, partially offset by lower contributions from voxeljet America as well as voxeljet China. Gross profit margin for this segment slightly decreased to 32.8% in the third quarter of 2022 from 34.4% in the third quarter of 2021. This was due to decreased gross profit margin from our American service center and our Chinese service center, while the German operation contributed slightly higher gross profit margins.

Selling expenses were kEUR 2,015 for the third quarter of 2022 compared to kEUR 1,471 for the third quarter of 2021. This increase was partially related to higher distribution expenses, in line with the increase in revenues. Distribution expenses like shipping and packaging are a main driver of the selling expenses, and do not only depend on the amount of revenue, but also on quantities and types of products sold, as well as the destinations of where those goods are being delivered. Therefore, distribution expenses can vary from quarter to quarter. In addition, we recorded higher expenses related to sales events like costs for trade fairs as well as travel expenses in the third quarter of 2022, compared to last year’s same period, due to further easing of COVID-19 related restrictions in most regions of the world.

Administrative expenses were kEUR 1,566 for the third quarter of 2022 compared to kEUR 1,536 in the third quarter of 2021 and therefore almost unchanged. This was due to higher legal expenses relating to the sale and leaseback transaction which closed on October 31, 2022, which was offset by the lower legal advisor fees related to our stock market listing as well as our communication with financial institutions in connection with funding activities.

Research and development (‘R&D’) expenses increased to kEUR 1,673 for the third quarter of 2022 from kEUR 1,498 for the third quarter of 2021. The increase of kEUR 175 was mainly due to higher usage of external services. 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 2022 were kEUR 159 compared to kEUR 101 in the prior year period. This was mainly due to higher losses from foreign currency transactions of kEUR 100 for the third quarter of 2022 compared to kEUR 62 for the third quarter of 2021.

Other operating income was kEUR 1,227 for the third quarter of 2022 compared to kEUR 1,177 for the third quarter of 2021. The increase was mainly due to higher gains from foreign currency transactions, which increased to kEUR 763 for the third quarter of 2022, compared to kEUR 514 in the last year’s third quarter. In addition, other operating income for the third quarter of 2022 included kEUR 104 in reimbursement of research and development costs, compared to kEUR 0 in the comparative period. This was partially offset by lower income from government grants amounting to kEUR 158 for the third quarter of 2022, compared to kEUR 537 for last year’s same period.