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PROTOLABS Manufacturing . Accelerated . Protolabs Reports Financial Results for the Third Quarter of 2021 October 28 , 2021 Record Revenue of $ 125.3 million in the Third Quarter of 2021 , an increase of 17 % year - over - year MAPLE PLAIN , Minn .-- ( BUSINESS WIRE ) -- Oct . 28 , 2021-- Proto Labs , Inc. ( NYSE : PRLB ) , the world's leading provider of digital manufacturing services , today announced financial results for the third quarter ended September 30 , 2021 . Third Quarter 2021 Highlights include : • Revenue for the third quarter of 2021 was $ 125.3 million , representing a 16.6 percent increase compared to revenue of $ 107.5 million in the third quarter of 2020 . • Hubs generated $ 8.8 million of revenue in the third quarter . • Net income for the third quarter of 2021 was $ 4.8 million , or $ 0.17 per diluted share . • Non - GAAP net income was $ 9.7 million , or $ 0.35 per diluted share . See “ Non - GAAP Financial Measures " below . " We achieved record revenue in the third quarter amidst a difficult backdrop of global supply chain issues and labor and materials constraints . During the quarter , we also received external recognition of our best - in - class digital manufacturing capabilities as the World Economic Forum announced our induction into their Global Lighthouse Network , recognizing our industry leading efforts to implement Fourth Industrial Revolution technologies , " noted Rob Bodor , President and Chief Executive Officer . " We continue to focus on the long - term market opportunities and invest in the business to serve the evolving needs of our customers . " Additional Third Quarter 2021 Highlights include : • Protolabs served 23,457 unique product developers during the quarter , representing a 24.8 percent increase over the third quarter of 2020 . • Gross margin in the third quarter of 2021 was 44.1 percent of revenue ; Non - GAAP gross margin was 44.9 percent of revenue . See " Non - GAAP Financial Measures " below . • EBITDA margin was 13.7 percent of revenue in the third quarter of 2021 ; adjusted EBITDA margin was 17.1 percent of revenue in the third quarter of 2021. See " Non - GAAP Financial Measures " below . • Cash and investments balance was $ 83.9 million as of September 30 , 2021 . " Our earnings in the third quarter were impacted by post pandemic - related cost inflation , as well as continued investments in our systems and product offering in order to maintain our position as the largest and fastest provider of digital manufacturing services , " added John Way , Chief Financial Officer . " We have a very strong balance sheet with $ 84 million in cash and investments and no debt , allowing us to continue to invest in future growth and return capital to our shareholders . " 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 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 . The company has included non - GAAP operating margin , adjusted for stock - based compensation expense , amortization 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 GAAP . These non - GAAP measures are used by the company's management and board of directors to understand and evaluate