Non-GAAP Financial Information
In addition to Shapeways’ results determined in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), Shapeways believes that Adjusted EBITDA, a non-U.S. GAAP financial measure, is useful in evaluating its operational performance. Shapeways uses this non-U.S. GAAP financial information to evaluate its ongoing operations and for internal planning and forecasting purposes. Shapeways believes that this non-U.S. GAAP financial information, when reviewed collectively with its U.S. GAAP results, may be helpful to investors in assessing its operating performance.
Shapeways defines Adjusted EBITDA as net loss excluding interest expense, net of interest income, income tax benefit (expense), depreciation and amortization, stock-based compensation, change in fair value of earnout liability, change in fair value of warrant liabilities, restructuring costs, acquisition costs and other (which includes other income and non-operating gains and losses).
Shapeways believes that the use of Adjusted EBITDA provides an additional tool for investors to use in evaluating ongoing operating results and trends because it eliminates the effect of financing and capital expenditures and provides investors with a means to compare its financial measures with those of comparable companies, which may present similar non-U.S. GAAP financial measures to investors. However, you should be aware that when evaluating Adjusted EBITDA Shapeways may incur future expenses similar to those excluded when calculating these measures. In addition, Shapeways’ presentation of these measures should not be construed as an inference that its future results will be unaffected by unusual or non-recurring items.
Because of these limitations, Adjusted EBITDA should not be considered in isolation or as a substitute for performance measures calculated in accordance with U.S. GAAP. Shapeways compensates for these limitations by relying primarily on its U.S. GAAP results and using Adjusted EBITDA on a supplemental basis. You should review the reconciliation of net loss to Adjusted EBITDA below and not rely on any single financial measure to evaluate Shapeways’ business.
SHAPEWAYS HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) |
|||||||
|
March 31, 2023 |
|
December 31, 2022 |
||||
|
(Unaudited) |
|
|
||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
12,817 |
|
|
$ |
30,630 |
|
Restricted cash |
|
140 |
|
|
|
139 |
|
Short-term investments |
|
19,733 |
|
|
|
9,816 |
|
Accounts receivable |
|
2,250 |
|
|
|
1,606 |
|
Inventory |
|
1,406 |
|
|
|
1,307 |
|
Prepaid expenses and other current assets |
|
6,562 |
|
|
|
6,255 |
|
Total current assets |
|
42,908 |
|
|
|
49,753 |
|
| Property and equipment, net |
|
16,492 |
|
|
|
15,627 |
|
| Operating lease, right-of-use assets, net |
|
2,159 |
|
|
|
2,365 |
|
| Goodwill |
|
6,286 |
|
|
|
6,286 |
|
| Intangible assets, net |
|
5,209 |
|
|
|
5,398 |
|
| Security deposits |
|
99 |
|
|
|
99 |
|
| Total assets |
$ |
73,153 |
|
|
$ |
79,528 |
|
| Liabilities and Stockholders’ Equity |
|
|
|
||||
| Current liabilities |
|
|
|
||||
| Accounts payable |
$ |
1,505 |
|
|
$ |
2,354 |
|
| Accrued expenses and other liabilities |
|
6,296 |
|
|
|
5,950 |
|
| Operating lease liabilities, current |
|
708 |
|
|
|
719 |
|
| Finance lease liability, current |
|
49 |
|
|
|
— |
|
| Other financing obligations, current |
|
37 |
|
|
|
— |
|
| Deferred revenue |
|
1,061 |
|
|
|
972 |
|
| Total current liabilities |
|
9,656 |
|
|
|
9,995 |
|
| Operating lease liabilities, net of current portion |
|
1,534 |
|
|
|
1,715 |
|
| Deferred tax liabilities, net |
|
45 |
|
|
|
27 |
|
| Finance lease liability, noncurrent |
|
227 |
|
|
|
— |
|
| Other financing obligations |
|
459 |
|
|
|
— |
|
| Total liabilities |
|
11,921 |
|
|
|
11,737 |
|
| Commitments and contingencies |
|
|
|
||||
| Stockholders’ equity |
|
|
|
||||
| Preferred stock ($0.0001 par value; 10,000,000 shares authorized; none issued or outstanding as of March 31, 2023 and December 31, 2022) |
|
— |
|
|
|
— |
|
| Common stock ($0.0001 par value; 120,000,000 shares authorized; 49,609,167 and 49,445,174 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively) |
|
5 |
|
|
|
5 |
|
| Additional paid-in capital |
|
202,167 |
|
|
|
201,362 |
|
| Accumulated deficit |
|
(140,435 |
) |
|
|
(133,032 |
) |
| Accumulated other comprehensive loss |
|
(505 |
) |
|
|
(544 |
) |
| Total stockholders’ equity |
|
61,232 |
|
|
|
67,791 |
|
| Total liabilities and stockholders’ equity |
$ |
73,153 |
|
|
$ |
79,528 |
|
| SHAPEWAYS HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) (in thousands, except share and per share amounts) |
|||||||
|
|
Three Months Ended March 31, |
||||||
|
|
2023 |
|
2022 |
||||
| Revenue, net |
$ |
8,199 |
|
|
$ |
7,570 |
|
| Cost of revenue |
|
4,917 |
|
|
|
4,161 |
|
| Gross profit |
|
3,282 |
|
|
|
3,409 |
|
| Operating expenses |
|
|
|
||||
| Selling, general and administrative |
|
8,481 |
|
|
|
6,145 |
|
| Research and development |
|
2,526 |
|
|
|
2,065 |
|
| Total operating expenses |
|
11,007 |
|
|
|
8,210 |
|
| Loss from operations |
|
(7,725 |
) |
|
|
(4,801 |
) |
| Other income (expense) |
|
|
|
||||
| Interest income |
|
319 |
|
|
|
1 |
|
| Interest expense |
|
(21 |
) |
|
|
— |
|
| Other income |
|
114 |
|
|
|
1 |
|
| Loss on disposal of assets |
|
(72 |
) |
|
|
— |
|
| Change in fair value of warrant liabilities |
|
— |
|
|
|
762 |
|
| Total other income (expense), net |
|
340 |
|
|
|
764 |
|
| Loss before income tax expense |
|
(7,385 |
) |
|
|
(4,037 |
) |
| Income tax expense |
|
18 |
|
|
|
— |
|
| Net loss |
|
(7,403 |
) |
|
|
(4,037 |
) |
| Net loss per share: |
|
|
|
||||
| Basic |
$ |
(0.14 |
) |
|
$ |
(0.08 |
) |
| Diluted |
$ |
(0.14 |
) |
|
$ |
(0.08 |
) |
| Weighted average common shares outstanding: |
|
|
|
||||
| Basic |
|
53,410,652 |
|
|
|
53,142,447 |
|
| Diluted |
|
53,410,652 |
|
|
|
53,142,447 |
|
| Other comprehensive income (loss) |
|
|
|
||||
| Foreign currency translation adjustment |
|
39 |
|
|
|
(52 |
) |
| Comprehensive loss |
$ |
(7,364 |
) |
|
$ |
(4,089 |
) |
| SHAPEWAYS HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands, except share and per share amounts) |
|||||||
|
|
Three Months Ended March 31, |
||||||
|
|
2023 |
|
2022 |
||||
| Cash flows from operating activities: |
|
|
|
||||
| Net loss |
$ |
(7,403 |
) |
|
$ |
(4,037 |
) |
| Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
||||
| Depreciation and amortization |
|
442 |
|
|
|
182 |
|
| Loss on disposal of assets |
|
72 |
|
|
|
— |
|
| Stock-based compensation expense |
|
805 |
|
|
|
312 |
|
| Non-cash lease expense |
|
252 |
|
|
|
131 |
|
| Deferred income taxes |
|
18 |
|
|
|
— |
|
| Net change in interest receivable on short-term investments |
|
37 |
|
|
|
— |
|
| Change in fair value of warrant liabilities |
|
— |
|
|
|
(762 |
) |
| Change in operating assets and liabilities: |
|
|
|
||||
| Accounts receivable |
|
(643 |
) |
|
|
(134 |
) |
| Inventory |
|
(94 |
) |
|
|
24 |
|
| Prepaid expenses and other assets |
|
(473 |
) |
|
|
(2,567 |
) |
| Accounts payable |
|
(698 |
) |
|
|
(193 |
) |
| Accrued expenses and other liabilities |
|
334 |
|
|
|
851 |
|
| Operating lease liabilities |
|
(243 |
) |
|
|
(154 |
) |
| Deferred revenue |
|
89 |
|
|
|
(406 |
) |
| Net cash used in operating activities |
|
(7,505 |
) |
|
|
(6,753 |
) |
| Cash flows from investing activities: |
|
|
|
||||
| Purchases of property and equipment |
|
(1,032 |
) |
|
|
(8,258 |
) |
| Purchase of short-term investments |
|
(9,769 |
) |
|
|
— |
|
| Net cash used in investing activities |
|
(10,801 |
) |
|
|
(8,258 |
) |
| Cash flows from financing activities: |
|
|
|
||||
| Proceeds received from other finance obligations |
|
493 |
|
|
|
— |
|
| Principal payments on finance leases |
|
(8 |
) |
|
|
— |
|
| Payments on other finance obligations |
|
(5 |
) |
|
|
— |
|
| Proceeds from issuance of common stock |
|
— |
|
|
|
99 |
|
| Net cash provided by financing activities |
|
480 |
|
|
|
99 |
|
| Net change in cash and cash equivalents and restricted cash |
|
(17,826 |
) |
|
|
(14,912 |
) |
| Effect of change in foreign currency exchange rates on cash and cash equivalents and restricted cash |
|
14 |
|
|
|
(74 |
) |
| Cash and cash equivalents and restricted cash at beginning of period |
|
30,769 |
|
|
|
79,819 |
|
| Cash and cash equivalents and restricted cash at end of period |
$ |
12,957 |
|
|
$ |
64,833 |
|
| Supplemental disclosure of cash and non-cash transactions: |
|
|
|
||||
| Cash paid for interest |
$ |
21 |
|
|
$ |
— |
|
| Accrued acquisition of property and equipment |
$ |
79 |
|
|
$ |
— |
|
| SHAPEWAYS HOLDINGS, INC. RECONCILIATION OF GAAP TO NON-GAAP MEASURES For the Three Months Ended March 31, 2023 and 2022 |
||||||||
|
|
|
Three Months Ended March 31, |
||||||
| (Dollars in thousands) |
|
2023 |
|
2022 |
||||
| Net loss |
|
$ |
(7,403 |
) |
|
$ |
(4,037 |
) |
| Interest expense, net |
|
|
(298 |
) |
|
|
— |
|
| Depreciation and amortization |
|
|
442 |
|
|
|
182 |
|
| Stock based compensation |
|
|
805 |
|
|
|
312 |
|
| Change in fair value of warrant liabilities |
|
|
— |
|
|
|
(762 |
) |
| Income tax benefit |
|
|
18 |
|
|
|
— |
|
| Restructuring costs |
|
|
212 |
|
|
|
— |
|
| Other |
|
|
(112 |
) |
|
|
2 |
|
| Adjusted EBITDA |
|
$ |
(6,336 |
) |
|
$ |
(4,303 |
) |
| SHAPEWAYS HOLDINGS, INC. QUARTERLY PERFORMANCE (UNAUDITED) (in thousands) |
|||||||||||||||||||
|
|
Three Months Ended, |
||||||||||||||||||
|
|
March 31, 2022 |
|
June 30, 2022 |
|
September 30,
|
|
December 31,
|
|
March 31, 2023 |
||||||||||
| Revenue |
$ |
7,570 |
|
|
$ |
8,433 |
|
|
$ |
8,449 |
|
|
$ |
8,705 |
|
|
$ |
8,199 |
|
| % YoY Growth |
|
(14 |
)% |
|
|
(5 |
)% |
|
|
9 |
% |
|
|
5 |
% |
|
|
8 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
| Gross Profit |
$ |
3,409 |
|
|
$ |
3,642 |
|
|
$ |
3,691 |
|
|
$ |
3,556 |
|
|
$ |
3,282 |
|
| Gross Margin |
|
45 |
% |
|
|
43 |
% |
|
|
44 |
% |
|
|
41 |
% |
|
|
40 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
| Adjusted EBITDA |
$ |
(4,303 |
) |
|
$ |
(4,270 |
) |
|
$ |
(4,615 |
) |
|
$ |
(5,826 |
) |
|
$ |
(6,336 |
) |
| SHAPEWAYS HOLDINGS, INC. RECONCILIATION OF GAAP TO NON-GAAP MEASURES |
|||||||||||||||||||
|
|
Three Months Ended, |
||||||||||||||||||
| (Dollars in thousands) |
March 31, 2022 |
|
June 30, 2022 |
|
September 30,
|
|
December 31,
|
|
March 31, 2023 |
||||||||||
| Net loss |
$ |
(4,037 |
) |
|
$ |
(4,674 |
) |
|
$ |
(4,550 |
) |
|
$ |
(6,960 |
) |
|
$ |
(7,403 |
) |
| Interest expense, net |
|
— |
|
|
|
(1 |
) |
|
|
(14 |
) |
|
|
(126 |
) |
|
|
(298 |
) |
| Depreciation and amortization |
|
182 |
|
|
|
377 |
|
|
|
473 |
|
|
|
759 |
|
|
|
442 |
|
| Stock based compensation |
|
312 |
|
|
|
457 |
|
|
|
1,207 |
|
|
|
636 |
|
|
|
805 |
|
| Change in fair value of earnout liability |
|
— |
|
|
|
— |
|
|
|
(1,784 |
) |
|
|
(40 |
) |
|
|
— |
|
| Change in fair value of warrant liabilities |
|
(762 |
) |
|
|
(765 |
) |
|
|
(31 |
) |
|
|
(26 |
) |
|
|
— |
|
| Income tax expense (benefit) |
|
— |
|
|
|
(1 |
) |
|
|
3 |
|
|
|
29 |
|
|
|
18 |
|
| Acquisition costs |
|
— |
|
|
|
373 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Restructuring costs |
|
— |
|
|
|
— |
|
|
|
190 |
|
|
|
8 |
|
|
|
212 |
|
| Other |
|
2 |
|
|
|
(36 |
) |
|
|
(109 |
) |
|
|
(106 |
) |
|
|
(112 |
) |
| Adjusted EBITDA |
$ |
(4,303 |
) |
|
$ |
(4,270 |
) |
|
$ |
(4,615 |
) |
|
$ |
(5,826 |
) |
|
$ |
(6,336 |
) |
