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Shapeways Holdings, Inc. (SHPW)·Q1 2023 Earnings Summary

Executive Summary

  • Q1 2023 revenue grew 8% year over year to $8.2M, but gross margin compressed to 40% (vs. 45% a year ago), widening net loss to $(7.4)M and adjusted EBITDA to $(6.3)M .
  • Management highlighted record SaaS sales bookings and “highest quarter on record” for manufacturer registrations and platform engagement, supporting the software commercialization strategy and enterprise customer focus .
  • Q2 2023 revenue guidance: $8.3M–$8.8M, implying sequential growth; management expects margin improvement and low single-digit quarterly cash burn in 2H 2023 .
  • Potential stock catalysts: accelerating software traction (record bookings) and sequential revenue guide, offset by near-term margin pressure and higher operating losses .

What Went Well and What Went Wrong

What Went Well

  • Record SaaS momentum: “highest quarter on record for manufacturer registrations, platform engagement, and SaaS contract commitments on our MFG platform,” with bookings expected to convert to revenue over the next 12 months .
  • Successful product releases: launched ordering and transaction capabilities, enabling a “seamless and efficient experience,” driving customer acquisition, retention, lifetime value, and record SaaS bookings .
  • Enterprise traction: growing pipeline and multi-year manufacturing contracts in industrial, medical, automotive, aerospace; legacy e-commerce stabilized despite competition .

What Went Wrong

  • Margin compression: gross margin fell to 40% from 45% YoY; gross profit declined to $3.3M from $3.4M due to mix and cost pressures .
  • Losses widened: net loss increased to $(7.4)M vs. $(4.0)M YoY; adjusted EBITDA deteriorated to $(6.3)M vs. $(4.3)M YoY .
  • Cash burn: net cash used in operating activities was $(7.5)M in Q1 2023, reflecting continued investment and scaling; management is “closely managing expenses,” including facility consolidation .

Financial Results

Sequential comparison (Q3 2022 → Q4 2022 → Q1 2023)

MetricQ3 2022Q4 2022Q1 2023
Revenue ($USD Millions)$8.449 $8.705 $8.199
Gross Profit ($USD Millions)$3.691 $3.556 $3.282
Gross Margin %44% 41% 40%
Net Loss ($USD Millions)$(4.550) $(6.960) $(7.403)
Diluted EPS ($USD)$(0.09) $(0.13) $(0.14)
Adjusted EBITDA ($USD Millions)$(4.615) $(5.826) $(6.336)
EBIT (Loss from operations) ($USD Millions)$(6.486) $(7.192) $(7.725)

Year-over-year comparison (Q1 2022 → Q1 2023)

MetricQ1 2022Q1 2023
Revenue ($USD Millions)$7.570 $8.199
Gross Profit ($USD Millions)$3.409 $3.282
Gross Margin %45% 40%
Net (Loss) Income ($USD Millions)$(4.037) $(7.403)
Diluted EPS ($USD)$(0.08) $(0.14)
Adjusted EBITDA ($USD Millions)$(4.303) $(6.336)

KPIs and Liquidity (Balance Sheet Snapshots)

MetricSep 30, 2022Dec 31, 2022Mar 31, 2023
Cash And Equivalents ($USD Millions)$46.941 $30.630 $12.817
Short-term Investments ($USD Millions)— $9.816 $19.733
Accounts Receivable ($USD Millions)$1.941 $1.606 $2.250
Inventory ($USD Millions)$1.242 $1.307 $1.406
Deferred Revenue ($USD Millions)$1.036 $0.972 $1.061
Total Current Assets ($USD Millions)$55.676 $49.753 $42.908

Note: Q1 2023 cash used in operating activities was $(7.505)M; Q1 2022 was $(6.753)M .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($USD Millions)Q2 2023N/A$8.3–$8.8 Introduced (sequential growth)
Gross MarginH1→H2 2023“Pressure in Q1 2023; margin recovery starting Q2 2023” “Anticipated improvement in margins; low single-digit quarterly cash burn in H2 2023” Maintained directional improvement
Cash BurnH2 2023N/ALow single-digit quarterly cash burn targeted Introduced directional target
Operating CostsOngoingN/A“Closely managing expenses; completed consolidation of U.S. facilities in Michigan” Reinforced cost discipline

Earnings Call Themes & Trends

Transcript unavailable due to document retrieval issues; themes reflect prepared press release narratives.

TopicPrevious Mentions (Q3 2022)Previous Mentions (Q4 2022)Current Period (Q1 2023)Trend
Software commercializationIntegrating MFG.com and MakerOS; accelerating OTTO SaaS rollout Focus on commercializing software; expanded product suite Launch of ordering/transaction platform; record SaaS bookings Strengthening
Enterprise manufacturingGrowing pipeline in automotive, medical, aerospace, industrial Expect increasing contribution from enterprise customers Multi-year contracts and pipeline growth; legacy e-commerce stabilized Strengthening
Margin trajectory44% GM; investments pressuring margins near term 41% GM; margin recovery expected starting Q2 2023 40% GM; improvement anticipated later in 2023 Near-term pressure; recovery expected
Cost structure/operationsTransition manufacturing to Livonia, MI for optimization Completed investments; optimization ongoing Facility consolidation completed; ongoing expense management Execution progressing
Liquidity/listing$46.9M cash; sufficient liquidity $40.4M cash+marketable securities ; reverse split planned $32.5M cash+ST investments; sufficient liquidity Liquidity adequate; strategic moves ongoing

Management Commentary

  • “Our first quarter results demonstrate the progress we are making… highest quarter on record for manufacturer registrations, platform engagement, and SaaS contract commitments on our MFG platform.” — Greg Kress, CEO .
  • “We successfully launched ordering and transaction capabilities… leading to record SaaS sales bookings in Q1 2023 which will convert to recognized revenue over the next 12 months.” — Greg Kress .
  • “We are seeing traction in signing new multi-year manufacturing contracts and growing our pipeline with enterprise manufacturing customers… Our increased traction and cost discipline… positions us to achieve our objective of reaching profitability in the second half of 2024.” — Greg Kress .

Q&A Highlights

  • The Q1 2023 earnings call transcript could not be retrieved due to a database inconsistency; as a result, specific Q&A themes and clarifications are unavailable. Call logistics: hosted May 15, 2023 at 5:00 p.m. ET .

Estimates Context

  • Wall Street consensus (S&P Global) for Q1 2023 could not be obtained due to missing mapping for SHPW in the SPGI/CIQ data. As such, comparisons vs. consensus EPS, revenue, and EBITDA are unavailable (S&P Global consensus data unavailable).

Key Takeaways for Investors

  • Sequential setup improved: Q2 revenue guide ($8.3M–$8.8M) implies growth versus Q1, supported by enterprise contracts and software momentum .
  • Software is the emerging driver: record SaaS bookings and new platform capabilities should provide higher-margin revenue over the next 12 months; watch conversion from bookings to recognized revenue .
  • Near-term profitability headwinds persist: gross margin at 40% and higher operating losses reflect scaling costs; monitor the promised margin recovery starting in Q2 and low-single-digit quarterly cash burn in 2H 2023 .
  • Liquidity remains adequate to execute plan: $32.5M combined cash and short-term investments; expense control and facility consolidation are active levers .
  • Enterprise pipeline is a tangible catalyst: multi-year manufacturing contracts in target industries provide visibility; sustained execution could re-rate the margin narrative .
  • Risk balance: competitive pressures and macro cost dynamics continue to impact margins; absent consensus estimates, focus on sequential performance and margin inflection as key trading triggers .
  • Actionable: Position around Q2 margin/revenue inflection; monitor software revenue disclosure granularity and enterprise contract ramp pace in upcoming quarters .
Sources: SHPW Q1 2023 8-K/Press Release and exhibits **[1784851_0001628280-23-018166_shapeways-firstquarter2023.htm:0]** **[1784851_0001628280-23-018166_shapeways-firstquarter2023.htm:1]** **[1784851_0001628280-23-018166_shapeways-firstquarter2023.htm:2]** **[1784851_0001628280-23-018166_shapeways-firstquarter2023.htm:5]** **[1784851_0001628280-23-018166_shapeways-firstquarter2023.htm:6]** **[1784851_0001628280-23-018166_shapeways-firstquarter2023.htm:7]**; Q4 2022 8-K/Press Release **[1784851_0001628280-23-009901_a991-shapewaysxfourthquart.htm:0]** **[1784851_0001628280-23-009901_a991-shapewaysxfourthquart.htm:1]** **[1784851_0001628280-23-009901_a991-shapewaysxfourthquart.htm:2]** **[1784851_0001628280-23-009901_a991-shapewaysxfourthquart.htm:6]** **[1784851_0001628280-23-009901_a991-shapewaysxfourthquart.htm:7]** **[1784851_0001628280-23-009901_a991-shapewaysxfourthquart.htm:8]** **[1784851_0001628280-23-009901_a991-shapewaysxfourthquart.htm:9]**; Q3 2022 8-K/Press Release **[1784851_0001628280-22-029832_shapeways-thirdquarter2022.htm:0]** **[1784851_0001628280-22-029832_shapeways-thirdquarter2022.htm:1]** **[1784851_0001628280-22-029832_shapeways-thirdquarter2022.htm:4]** **[1784851_0001628280-22-029832_shapeways-thirdquarter2022.htm:5]** **[1784851_0001628280-22-029832_shapeways-thirdquarter2022.htm:6]** **[1784851_0001628280-22-029832_shapeways-thirdquarter2022.htm:7]**; Q1 2022 8-K/Press Release **[1784851_0001628280-22-014515_shapeways-firstquarter2022.htm:1]** **[1784851_0001628280-22-014515_shapeways-firstquarter2022.htm:4]** **[1784851_0001628280-22-014515_shapeways-firstquarter2022.htm:5]**.