FRIEDBERG, Germany — (BUSINESS WIRE) — May 17, 2023 — voxeljet AG (NASDAQ: VJET) (the “Company”, or “voxeljet”), a provider of high-speed, large-format 3D printers and on-demand parts services to industrial and commercial customers, today announced consolidated financial results for the first quarter ended March 31, 2023.

Highlights - First Quarter 2023

• Total revenues for the first quarter increased 29.6% to kEUR 6,015 from kEUR 4,640
• Gross profit margin decreased from 34.3% to 31.9%, while gross profit increased from kEUR 1,591 to kEUR 1,917
• Systems revenues increased 122.8% to kEUR 3,159 from kEUR 1,418
• Services revenues decreased 11.4% to kEUR 2,856 from kEUR 3,222
• Reaffirm full year 2023 guidance

Dr. Ingo Ederer, Chief Executive Officer of voxeljet, commented: “In our on-demand printing Services segment, demand continues to be very robust - both in Europe and the US. This high demand is driven by large production orders, which is very exciting. Based on those high revenues from on-demand printing Services, we expect higher revenues for Systems as customers move from buying parts to running their own 3D printers and producing more cost-effectively.”

First Quarter 2023 Results

Revenues for the first quarter of 2023 increased by 29.6% to kEUR 6,015 compared to kEUR 4,640 in the first quarter of 2022.

Revenues from our Systems segment, which focuses on the development, production and sale of 3D printers, increased 122.8% to kEUR 3,159 in the first quarter of 2023 from kEUR 1,418 in last year’s first quarter. The Company delivered one new 3D printer in the first quarter of 2023, compared to one new printer delivered in last year’s first quarter. Systems revenues also include all Systems-related revenues from consumables, spare parts and maintenance. The increase of revenues from our Systems segment was mainly due to higher revenues from the sale of 3D printers as we sold a larger scale platform in the first quarter of 2023, compared to a smaller scale platform in the comparative period. In addition, Systems-related revenues increased, reflecting the higher installed base of our 3D printers in the market. Systems revenues represented 52.5% of total revenues in the first quarter of 2023 compared to 30.6% in last year’s first quarter.

Revenues from our Services segment, which focuses on the printing of on-demand parts for our customers, decreased 11.4% to kEUR 2,856 in the first quarter of 2023 from kEUR 3,222 in the comparative period of 2022. This was mainly due to lower revenue contributions from our German operation as well as from our subsidiary voxeljet China Co. Ltd (“voxeljet China”). This was partially offset by slightly higher revenue contributions from our subsidiary voxeljet America Inc. (“voxeljet America”).

Cost of sales were kEUR 4,098 for the first quarter of 2023 compared to kEUR 3,049 for the first quarter of 2022.

Gross profit and gross profit margin were kEUR 1,917 and 31.9%, respectively, in the first quarter of 2023 compared to kEUR 1,591 and 34.3%, respectively, in the first quarter of 2022.

Gross profit for our Systems segment increased to kEUR 1,059 in the first quarter of 2023 from kEUR 246 in the first quarter of 2022. This improvement was mainly related to the increase in revenues. Also gross profit margin for this segment increased to 33.5% in the first quarter of 2023 compared to 17.3% in the first quarter of 2022 mainly due to a more favorable product mix, especially regarding the 3D printer sale. The sale of larger scale platforms usually provides higher gross profit (margins) compared to smaller platforms.

Gross profit for our Services segment significantly decreased to kEUR 858 in the first quarter of 2023 compared to kEUR 1,345 in the first quarter of 2022. The gross profit margin for this segment also significantly decreased to 30.0% in the first quarter of 2023 from 41.7% in the first quarter of 2022. Both, the decrease of gross profit as well as gross profit margin were mainly related to the overall decrease in revenues which resulted in a lower utilization of our German and Chinese service centers which was less cost efficient.

Selling expenses increased to kEUR 1,919 for the first quarter of 2023 compared to kEUR 1,637 in the first quarter of 2022, mainly related to higher distribution expenses, in line with the increase in revenues. Expenses such as shipping and packaging vary from quarter to quarter depending on quantity and types of products being sold, as well as the destinations where those goods are being delivered.

Administrative expenses were kEUR 1,507 for the first quarter of 2023 compared to kEUR 1,677 in the first quarter of 2022. The decrease is mainly related to lower legal advisor and regulatory fees related to our stock market listing as well as our communication with financial institutions.

Research and development (“R&D”) expenses increased to kEUR 1,599 in the first quarter of 2023 from kEUR 1,441 in the first quarter of 2022. The increase of kEUR 158 was mainly due to higher personnel expenses, higher usage of external services as well as higher material expenses.

Other operating expenses in the first quarter of 2023 were kEUR 459 compared to kEUR 158 in the prior year period. This was mainly related to higher losses from foreign currency transactions, amounting to kEUR 456 for the first quarter of 2023 compared to kEUR 59 in the last year’s first quarter.

Other operating income was kEUR 736 for the first quarter of 2023 compared to kEUR 2,204 for the first quarter of 2022. The reduction was mainly due to the first quarter 2022 one-off impact from the reclassification of the foreign currency translation reserve, which was previously recognized in other comprehensive income on consolidation of voxeljet UK accounts. This amount was reclassified to profit and loss account on deconsolidation amounting to kEUR 1,475, related to the finalization of the wind-up of voxeljet UK Ltd, our UK subsidiary, on February 17, 2022. In addition, gains from foreign currency transactions decreased from kEUR 433 for the first quarter of 2022 compared to kEUR 159 for the first quarter of 2023. This was partially offset by higher other operating income from reimbursement of research and development costs amounting to kEUR 312 for the first quarter of 2023, compared to kEUR 81 for the comparative period. Moreover, other operating income included kEUR 201 from the receipt of government grants awarded for research and development project funding for the first quarter of 2023 compared to kEUR 45 for the first quarter of 2022.

The changes in foreign currency losses and gains were primarily driven by the valuation of the intercompany loans granted by the parent company to our US subsidiary.

Operating loss was kEUR 2,831 in the first quarter of 2023 compared to an operating loss of kEUR 1,118 in the comparative period in 2022. This was primarily related to the net impact of the quarter over quarter changes in other operating expenses and other operating income, which was kEUR 1,769 negative. In addition, selling expenses as well as research and development expenses increased. This was partially offset by an increase in gross profit and slightly lower administrative expenses.

Financial result was negative kEUR 420 in the first quarter of 2023, compared to a financial result of positive kEUR 351 in the comparative period in 2022. This was mainly due to lower income from revaluation of derivative financial instruments related to the performance participation interest related to the loan received from the European Investment Bank (the ‘EIB’) amounting to kEUR 0 for the first quarter of 2023, compared to kEUR 1,316 for the comparative period in 2022. Those derivative financial instruments were revalued on each balance sheet date, with changes in the fair value between reporting periods recorded within the financial result of the consolidated statements of comprehensive loss. An increase in our share price resulted in a finance expense, while a decrease led to a finance income, holding other parameters constant. In October 2022, the loan granted by EIB including all interest was early settled and consequently the loan as well as the related derivative financial instruments were derecognized.