Voxeljet AG: What Investors Should Know About Its Q1 Results and 2014 Outlook

Newly public voxeljet was the last company in the volatile 3-D printing sector to report first-quarter 2014 earnings.

May 20, 2014 at 6:55PM

Voxeljet (NYSE:VJET) reported first-quarter 2014 earnings after the market closed last Thursday that beat analysts' estimates, and followed up with a conference call on Friday morning. The Germany-based 3-D printing company, which provides high-speed, large format 3-D printers to industrial and commercial customers, is the last company in the highly volatile 3-D printing sector to report first quarter results.

Though shares of voxeljet rose 4% on Friday, I'd not necessarily interpret the rise -- or at least all of it -- as enthusiasm over the company's results. All the 3-D printing stocks were dragged down on Thursday as ExOne significantly missed estimates, and they all bounced back to some degree on Friday. Additionally, shares of voxeljet fell 2.2% in Monday's trading. 

Q1 results
Here are the highlights:

  • Revenue increased 14.7% to 2.7 million euro, or about $3.7 million.
  • Net loss was 0.22 euro ($0.30) per ordinary share, compared to a gain of 0.05 euro ($0.07) per share in the first quarter of 2013. Investors need to keep in mind that voxeljet trades as an American depository share, with one ordinary share = 5 ADSs. So, in ADSs, the company's net loss was .04 euro ($0.06), which handily beat analysts' estimates of -.07 euro. The loss was due to the company's spending on growth initiatives.
  • Service segment revenue rose 20.7% to 1.4 million euro, or about $1.9 million.
  • 3-D printer sales revenue grew 8.9% to 1.3 million euro, or about $1.8 million.
  • Two new 3-D printers were delivered versus one new and one used system in last year's first quarter.
  • Gross profit margin increase to 39.4%, up from 38.2% in the prior year's quarter.
  • 2014 revenue guidance was reaffirmed at 18 million euro-plus, or about $24.8 million-plus, which translates to revenue growth of more than 50%.
  • The company completed the relocation into its German service center, which is twice the size of the former facility.
  • The company opened its first service center in the United States –  just outside Detroit.

I'd not classify these results as either good or poor. In light of ExOne's significant miss the day before voxeljet released its earnings and the struggles within the 3-D printing sector as a whole recently, investors probably breathed a collective sigh of relief at these results. Relatively slow overall growth is at least growth, and the service segment's growth of 20% was solid.

Voxeljet's services business pulled the weight for the company in the quarter from a revenue and earnings standpoint. The gross profit margin for this segment increased to 47.8%, up from 41% in the first quarter of 2013. The company attributed this increase to a favorable product mix.

Gross margin in voxeljet's systems segment decreased to 30.3% from 35.5% in Q1 2013. Given the small amount of revenue we're dealing with, this drop is quite small from a dollar standpoint. One of the two printers sold in the first quarter was to a research institution, which received a discount to the listed price. This contributed to the decrease in gross margin, according to the company. As a policy, voxeljet gives discounts to educational and research institutions.

Looking ahead
Again, voxeljet reiterated that it expected its 2014 revenue to "exceed 18 million euro," or about $24.8 million. This translates to annual growth of more than 50%.

The company had a backlog of six 3-D printers totaling 3.8 million euro, or about $5.2 million, at the end of the first quarter. This compares to a backlog of 2.3 million euros, or $3.2 million, representing four printers at the end of the fourth quarter of 2013.

Foolish final thoughts
Voxeljet neither hit one out of the ballpark nor struck out with its first-quarter results. This is a tiny company -- it sold just two 3-D printers in the quarter, and one of them was sold to a research institution at a discount. It is much too soon to tell whether voxeljet's products and services will gain considerable favor in the marketplace, but I'll be following along as this upstart progresses through its first year as a public company. 

Additionally, investors should keep in mind that voxeljet's stock remains, even after its huge recent drop, the most highly priced stock among all the 3-D printer makers on a price-to-sales basis. 

Will this stock be your next multi-bagger?
Every year, The Motley Fool's chief investment officer hand-picks 1 stock with outstanding potential. But it's not just any run-of-the-mill company. It's a stock perfectly positioned to cash in on one of the upcoming year's most lucrative trends. Last year his pick skyrocketed 134%. And previous top picks have gained upwards of 908%, 1,252% and 1,303% over the subsequent years! Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.

Beth McKenna and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich" rated The Motley Fool as the #1 place online to get smarter about investing.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of fool.com.

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to www.fool.com/beginners, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. It's also featured on several dozen radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at www.fool.com/podcasts.

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.


Compare Brokers