3D Systems reported better-than-expected first quarter growth as healthcare demand for 3D printing surged.
The company has focused on expanding its healthcare business as well as industrial use cases. On May 6, 3D Systems said it acquired bioprinting company Allevi to expand its regenerative medicine initiative. The company also acquired software provider Additive Works GmbH to expand its software unit and simulation tools.
Meanwhile, 3D Systems said it will add 50,000 square feet of facility space and application expertise in Denver. The company will also use the space to address increasing demand for patient specific healthcare as well as regulated industrial applications.
Those bets were justified based on 3D Systems' first quarter results. The company reported first quarter revenue of $146.1 million, up 7.7% from a year ago, with earnings of 36 cents a share. Non-GAAP first quarter earnings were 17 cents a share.
Wall Street was expecting 3D Systems to report first quarter revenue of $136.6 million with non-GAAP earnings of 2 cents a share.
The first quarter results were driven by healthcare sales of growth of 39% from a year ago. 3D Systems CEO Dr. Jeffery Graves said the company saw strong demand in both dental and medical applications. The industrial side of business continued to stabilize as economies reopen from the COVID-19 pandemic, but sales were down 11.7% from a year ago.
3D Systems has divested units as well as honed its focus on healthcare and industrial applications. Graves said the plan now is to invest to accelerate growth:
With our solid progress on the initial stages of our transformation plan, we have now increased our focus on the fourth stage of our plan, which is to invest for accelerated growth and profitability in support of our long-term financial goals of sustained double-digit revenue growth, 50% gross profit margins and 20% adjusted-EBITDA margins.