Voxeljet AG Earnings: Q2 Disappoints, but Guidance Remains Unchanged

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

Aug 14, 2014 at 2:05PM

Voxeljet (NYSE:VJET) reported second-quarter 2014 earnings that fell short of analysts' earnings estimates after the market closed on Wednesday, resulting in the stock dropping 7.9% in after-hours trading. The Germany-based 3-D printing company provides large-format 3-D printers and on-demand 3-D printing services to industrial and commercial customers. 

Shares of voxeljet (yes, small "v") will likely be under pressure on Thursday. However, the direction and magnitude of the stock's movements following the earnings release will depend upon information shared during the conference call on Thursday morning. The 3-D printing stocks, in general, are likely to be under pressure on Thursday and perhaps beyond, as industrial-focused ExOne once again fell short of expectations when it released its results just before voxeljet's.

Here are the highlights from voxeljet's report:

  • Revenue increased 30.6% to 2.73 million euro, or about $3.74 million.
  • Net loss increased 58% to 0.38 euro, or about $0.52, per ordinary share. Investors need to keep in mind that voxeljet trades as American depository shares, with one ordinary share = 5 ADSs. So, in ADSs, the company's net loss was 0.076 euro, or about $0.10, greater than the 0.06 euro loss analysts were expecting.
  • Systems (3-D printers, consumables, maintenance, and spare parts) revenue grew 46.2% to 1.2 million euro, or about $1.6 million.
  • Services revenue rose 20% to 1.5 million euro, or about $2.1 million.
  • Two new 3-D printers were delivered versus one new one in the year-ago quarter.
  • Gross profit margin increased to 31.5%, up from 28.7% in the prior-year's quarter.
  • Operating loss increased 145% to 1.4 million euros, or about $1.9 million.
  • 2014 revenue guidance was reaffirmed at 18 million euro-plus, or about $24.6 million-plus, which translates to revenue growth of more than 50%.

Vjet Printer

Source: voxeljet.

As with last quarter, I'd not classify these results as good or poor. Revenue growth of nearly 31% is fairly solid; however, the bar for last year's period is very low, as the company only sold one printer in the second quarter of 2013. Given the company's small size and the fact that it sells very few printers, investors should expect "lumpy" quarterly revenue for a while. The services side continues to chug along nicely -- 20% growth isn't spectacular, but it's steady, and voxeljet's services revenue also grew 20% last quarter.

Voxeljet's services business once again pulled the weight for the quarter from a profitability standpoint. The gross margin for this segment rose to 37.8%, up from 33.6% in the year-ago period. The company attributed this increase to higher revenue related to increased capacity and a favorable product mix. Gross margin in voxeljet's systems segment edged up to 23.8% from 21.4% in Q2 2013.

The company attributed the deeper operating loss vs. the year-ago period to the increased headcount needed for its growth strategy and the costs associated with being a publicly traded company. (Voxeljet went public in Oct. 2013.) 

Looking ahead 
Again, voxeljet reiterated that it expected its 2014 revenue to "exceed 18 million euro," or about $24.6 million. This translates to annual growth of more than 50%.

The company had a backlog of eight 3-D printers totaling 4.3 million euro, or about $5.9 million, at the end of the second quarter. This compares to a backlog of 3.8 million euros, representing six printers, at the end of the first quarter. So, the backlog is looking decent. 

Foolish final thoughts 
Once again, voxeljet neither hit one out of the ballpark nor struck out with its quarterly results. This is a tiny company -- it sold just two 3-D printers in the quarter -- that is new to the public markets. So, it is much too soon to tell whether voxeljet's products and services will gain considerable favor in the marketplace. I'll continue to follow along as this upstart progresses through its first year as a public company.

As to the stock, investors should keep in mind that voxeljet's stock remains the most highly priced stock among all the 3-D printer makers on a price-to-sales basis. 

If you're a believer in investing in megatrends like 3-D printing, don't miss this 
The plastic in your wallet is about to go the way of the typewriter, the VCR, and the 8-track tape player. When it does, a handful of investors could stand to get very rich. A new presentation reveals the full story on why your credit card is about to be worthless -- and highlights one little-known company sitting at the epicenter of an earth-shaking movement. Its stock is up more than 100% over the last year, but it's still early in the game. Click here for full details.

Beth McKenna has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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