Page 1

PROTOLABS Manufacturing . Accelerated . Protolabs Reports Financial Results for the First Quarter of 2021 May 6 , 2021 First Quarter 2021 Revenue of $ 116.1 million MAPLE PLAIN , Minn .-- ( BUSINESS WIRE ) -- May 6 , 2021-- Proto Labs , Inc. ( NYSE : PRLB ) , the world's largest ecommerce manufacturer and supplier of on - demand prototype and production parts , today announced financial results for the first quarter ended March 31 , 2021 . First Quarter 2021 Highlights include : • Revenue for the first quarter of 2021 was $ 116.1 million , representing a 10.4 percent increase compared to revenue of $ 105.2 million in the fourth quarter of 2020 . • 3D Hubs generated $ 5.8 million of revenue in the period between acquisition close ( January 22 , 2021 ) and the end of the first quarter . • Net income for the first quarter of 2021 was $ 3.7 million , or $ 0.13 per diluted share . • Non - GAAP net income was $ 11.0 million , or $ 0.40 per diluted share . See " Non - GAAP Financial Measures " below . " During the first quarter of 2021 , we achieved two very important milestones , the successful launch of Protolabs 2.0 and the transformative acquisition of 3D Hubs , which will enable us to accelerate growth , " said Rob Bodor , President and Chief Executive Officer . " I am very pleased that we also delivered strong first quarter financial performance within our expectations . As the COVID - 19 vaccine rollout progresses and global demand continues to recover , our best - in - class digital manufacturing model positions us to expand our leadership position . " Additional First Quarter 2021 Highlights include : • Protolabs served 22,605 unique product developers during the year , representing a 24.5 percent increase over the fourth quarter of 2020 . • Gross margin in the first quarter of 2021 was 47.6 percent of revenue ; Non - GAAP gross margin was 48.5 percent of revenue . See " Non - GAAP Financial Measures " below . • EBITDA margin was 12.0 percent of revenue in the first quarter of 2021 ; adjusted EBITDA margin was 19.5 percent of revenue in the first quarter of 2021. See “ Non - GAAP Financial Measures " below . • Cash and investments balance was $ 93.1 million as of March 31 , 2021 . " We managed our financial performance very well in the first quarter through the Protolabs 2.0 systems launch and acquisition of 3D Hubs , " added John Way , Chief Financial Officer . " Our balance sheet remains very healthy with $ 93 million in cash and investments and no debt , providing flexibility and allowing us to continue to invest to serve our customers and drive future growth . " Non - GAAP Financial Measures The company has included non - GAAP revenue growth that excludes the impact of changes in foreign currency exchange rates and revenue earned from our acquisition of 3D Hubs ( collectively , " non - GAAP revenue growth " ) . Management believes these metrics are useful in evaluating the underlying business trends and ongoing operating performance of the company . The company has included earnings before interest , taxes , depreciation and amortization ( " EBITDA " ) and EBITDA , adjusted for stock - based compensation expense , unrealized ( gain ) loss on foreign currency , and transaction costs ( collectively , " Adjusted EBITDA " ) , in this press release to provide investors with additional information regarding the company's financial results . amortization expense , The company has included non - GAAP operating margin , adjusted for stock - based compensation expense , and transaction costs ( collectively , " non - GAAP operating margin " ) , in this press release to provide investors with additional information regarding the company's financial results . The company has included non - GAAP net income , adjusted for stock - based compensation expense , amortization expense , unrealized ( gain ) loss on foreign currency , and transaction costs ( collectively , " non - GAAP net income " ) , in this press release to provide investors with additional information regarding the company's financial results . The company has provided below reconciliations of GAAP to non - GAAP net income , non - GAAP operating margin , non - GAAP revenue growth and Adjusted EBITDA , the most directly comparable measures calculated and presented in accordance with