# EDGAR Filing Document

**Accession Number:** 0001443669
**File Stem:** 0001437749-23-002945
**Filing Date:** 2023-2
**Character Count:** 46069
**Document Hash:** 7c48b8c06db5f96f02633dc94031bdc5
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001437749-23-002945.hdr.sgml**: 20230210

**ACCESSION NUMBER**: 0001437749-23-002945

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 16

**CONFORMED PERIOD OF REPORT**: 20230207

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230210

**DATE AS OF CHANGE**: 20230210

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Proto Labs Inc
- **CENTRAL INDEX KEY:** 0001443669
- **STANDARD INDUSTRIAL CLASSIFICATION:** FABRICATED STRUCTURAL METAL PRODUCTS [3440]
- **IRS NUMBER:** 000000000
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-35435
- **FILM NUMBER:** 23608438

**BUSINESS ADDRESS:**
- **STREET 1:** 5540 Pioneer Creek
- **CITY:** Maple Plain
- **STATE:** MN
- **ZIP:** 55359
- **BUSINESS PHONE:** 763-479-7474

**MAIL ADDRESS:**
- **STREET 1:** 5540 Pioneer Creek
- **CITY:** Maple Plain
- **STATE:** MN
- **ZIP:** 55359

prlb20230206_8k.htm

**UNITED STATES**

 **SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM **8-K**

**CURRENT REPORT**

**PURSUANT TO SECTION 13 OR 15(d) OF**

**THE SECURITIES EXCHANGE ACT OF 1934**

**Date of Report (Date of earliest event reported): **February 7, 2023**

**Proto Labs, Inc.**

(Exact name of registrant as specified in its charter)

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| | | |
|:---|:---|:---|
| Minnesota | 001-35435 | 41-1939628 |
| (State or other jurisdiction<br> of incorporation) | (Commission File Number) | (IRS Employer<br> Identification Number) |

---

---

| | |
|:---|:---|
| 5540 Pioneer Creek Drive<br> Maple Plain, Minnesota | 55359 |
| (Address of principal executive offices) | (Zip Code) |
| Registrant's telephone number, including area code: | (763) 479-3680 |

---

---

| |
|:---|
| Not Applicable |
| (Former name or former address, if changed since last report) |

---

Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| Common Stock, Par Value $0.001 Per Share | PRLB | New York Stock Exchange |

---

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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| | |
|:---|:---|
| **Item 2.02.**  | **Results of Operations and Financial Condition.** |

---

On February 10, 2023, Proto Labs, Inc. (the "Company") issued a press release announcing its fourth quarter and full year 2022 financial results. A copy of the press release is furnished as Exhibit 99.1 to this report and incorporated herein by reference.

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| | |
|:---|:---|
| **Item 7.01.**  | **Regulation FD Disclosure.** |

---

On February 7, 2023, the board of directors of the Company authorized a $50 million increase in the total expenditure authorized pursuant to the Company's program to repurchase shares of the Company's common stock from time to time on the open market or in privately negotiated purchases (the "Share Repurchase Program"). The Share Repurchase Program expires on December 31, 2024 and, following the increase, the total expenditure authorized thereunder is $250 million.

As of December 31, 2022, the Company had repurchased an aggregate dollar value of approximately $117.7 million of its common stock through the Share Repurchase Program, leaving a maximum aggregate dollar value of approximately $132.3 million of the Company's common stock remaining that may be purchased under the Share Repurchase Program following the increase.

The timing and amount of any share repurchases will be determined by the Company's management based on market conditions and other factors. The Company issued a press release announcing these changes to the Share Repurchase Program, a copy of which is furnished as Exhibit 99.1 to this report and incorporated herein by reference.

The information in Item 2.02 and Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any other filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

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| | |
|:---|:---|
| **Item 9.01.**  | **Financial Statements and Exhibits.** |

---

(**d) Exhibits**

---

| | |
|:---|:---|
| 99.1 | [Press release of Proto Labs, Inc. dated February 10, 2023](ex_472197.htm) |

---

---

| | |
|:---|:---|
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

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**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
|  |  | Proto Labs, Inc. | Proto Labs, Inc. |
| Date: | February 10, 2023 | By: | /s/ Daniel Schumacher |
|  |  |  | Daniel Schumacher |
|  |  |  | Chief Financial Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

---

| | |
|:---|:---|
| ![pic1.jpg](pic1.jpg) | ![pic2.jpg](pic2.jpg) |

---

**Protolabs Reports Financial Results for the Fourth Quarter and Full Year 2022**

***Revenue of $115.6 million in the Fourth Quarter of 2022***

***Record Annual Revenue of $488.4 million in 2022***

***Increases share repurchase authorization to $250 million***

**MAPLE PLAIN, Minn.** – **February 10, 2023** – Proto Labs, Inc. (the "Company" or "Protolabs") (NYSE: PRLB), the world's leading provider of digital manufacturing services, today announced financial results for the fourth quarter and full year ended December 31, 2022.

<u>Fourth Quarter 2022 Highlights include</u>:

● Revenue for the fourth quarter of 2022 was $115.6 million, representing a 6.5 percent decrease compared to revenue of $123.6 million in the fourth quarter of 2021.

● Net loss for the fourth quarter of 2022 was $115.1 million, or ($4.24) per diluted share, driven by a goodwill impairment charge of $118.0 million.

● Non-GAAP net income was $7.0 million, or $0.26 per diluted share. See "Non-GAAP Financial Measures" below.

<u>Expanded Share Repurchase Program</u>:

● On February 7, 2023, Protolabs' Board of Directors approved $50 million increase to existing Share Repurchase Program, bringing the total amount authorized under the program to $250 million.

● As of December 31, 2022, the Company has purchased $117.7 million under the program, which expires December 31, 2024.

● With the increased authorization, the Company has $132.3 million remaining to repurchase shares under the expanded program.

"In a challenging economic environment, impacted by inflation, slowing growth and continued supply chain challenges, our Protolabs and Hubs teams continued to delight our customers as together we build the most comprehensive digital manufacturing capabilities in the world," said Rob Bodor, President and Chief Executive Officer. "Following the launch of several new offers in 2022 and early 2023, we are well-positioned to extend our market differentiation with quality internal manufacturing at speed and the expansive breadth and depth afforded by our curated network of manufacturing partners."

<u>Full Year 2022 Highlights include</u>:

● Record annual revenue of $488.4 million in 2022.

● Protolabs served 56,333 unique product developers during the year.

● Gross margin was 44.1 percent of revenue in 2022, compared to 45.6 percent in 2021.

------

● EBITDA margin was (12.2 percent) of revenue in 2022 driven by a fourth quarter goodwill impairment charge of $118.0 million, compared to 16.5 percent in 2021.

● Adjusted EBITDA margin was 17.1 percent of revenue in 2022, compared to 18.3 percent in 2021. See "Non-GAAP Financial Measures" below.

● Net loss for 2022 was $103.5 million, or ($3.77) per diluted share.

● Non-GAAP net income was $41.1 million, or $1.50 per diluted share. See "Non-GAAP Financial Measures" below.

● Cash and investments balance was $106.5 million as of December 31, 2022.

"As we narrow our focus in 2023 on growth of our Injection Molding business and accelerating growth from the integrated Protolabs and Hubs CNC offer, we are managing expenses to enable continued strategic investments which we expect to drive profitable revenue growth," said Dan Schumacher, Chief Financial Officer. "Combined with a healthy financial position and strong cash balance, disciplined cost management will help fuel growth of the business while returning capital to our shareholders."

**Expanded Share Repurchase Program**

Under the expanded $250 million Share Repurchase Program, shares of the Company's common stock may be repurchased periodically, including in the open market or privately negotiated transactions. The actual timing, manner, number, and value of shares repurchased under the program will be determined by management at its discretion and will depend on several factors, including the market price of Proto Labs' common stock, general market and economic conditions, applicable requirements, and other business considerations. The Share Repurchase Program does not obligate the Company to acquire any particular amount of shares of the Company's stock.

**Non-GAAP Financial Measures**

The Company has included non-GAAP revenue growth by region and by service line 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 goodwill impairment charges, stock-based compensation expense, unrealized (gain) loss on foreign currency, costs related to the Japan closure activities 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 also included earnings before interest, taxes, depreciation and amortization margin ("EBITDA margin") and EBITDA margin, adjusted for goodwill impairment charges, stock-based compensation expense, unrealized (gain) loss on foreign currency, costs related to the Japan closure activities and transaction costs (collectively, "Adjusted EBITDA margin"), in this press release to provide investors with additional information regarding the Company's financial results.

The Company has included non-GAAP gross margin, adjusted for stock-based compensation expense and amortization expense 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 goodwill impairment charges, stock-based compensation expense, amortization expense, costs related to the closure of Japan, 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 gross margin excluding Japan, adjusted for stock-based compensation expense and amortization expense in this press release to provide investors with additional information regarding the Company's financial results. The Company has included non-GAAP operating margin excluding Japan, adjusted for goodwill impairment charges, stock-based compensation expense, amortization expense, costs related to the Japan closure activities 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 goodwill impairment charges, stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency, costs related to the closure of Japan, 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 gross margin, non-GAAP gross margin excluding Japan, non-GAAP operating margin, non-GAAP operating margin excluding Japan, non-GAAP revenue growth by region and by service, and Adjusted EBITDA and Adjusted EBITDA margin, 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 operating performance and trends and provide useful measures for period-to-period comparisons of the Company's business. Accordingly, the Company believes that these non-GAAP measures provide useful information to investors and others in understanding and evaluating operating results in the same manner as our management and board of directors.

**Conference Call** 

The Company has scheduled a conference call to discuss its fourth quarter and full year 2022 financial results and first quarter 2023 outlook today, February 10, 2023 at 8:30 a.m. EST. To access the call in the U.S. please dial 877-709-8150 or outside the U.S. dial 201-689-8354 at least five minutes prior to the 8:30 a.m. EST start time. No participant code is required. A simultaneous webcast of the call and accompanying presentation will be available via the investor relations section of the Protolabs website and the following link: <u>https://edge.media-server.com/mmc/p/d3nzbm3z</u>. A replay will be available for 14 days following the call on the investor relations section of the Protolabs website.

**About Protolabs**

------

**Forward-Looking Statements**

Statements contained in this press release regarding matters that are not historical or current facts are "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors which may cause the results of Protolabs to be materially different than those expressed or implied in such statements. Certain of these risk factors and others are described in the "Risk Factors" section within reports filed with the Securities and Exchange Commission. Other unknown or unpredictable factors also could have material adverse effects on Protolabs' future results. The forward-looking statements included in this press release are made only as of the date hereof. Protolabs cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, Protolabs expressly disclaims any intent or obligation to update any forward-looking statements to reflect subsequent events or circumstances.

Source: Proto Labs, Inc.

**Investor Relations Contact**

Protolabs

Ryan Johnsrud, 612-225-4873

Manager – Investor Relations and FP&A

<u>ryan.johnsrud@protolabs.com</u>

**Media Contact**

Protolabs

Brent Renneke, 763-479-7704

PR & Media Strategist

<u>brent.renneke@protolabs.com</u>

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**Proto Labs, Inc.** 

**Condensed Consolidated Balance Sheets** 

**(In thousands)** 

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2022** | **2021** |
|  | **(Unaudited)** |  |
| **Assets** |  |  |
| Current assets |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $56558 | $65929 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term marketable securities | 23568 | 11580 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable, net | 76225 | 80051 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventory | 13578 | 13161 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes receivable | 4042 | 1321 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other current assets | 12597 | 11450 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current assets | 186568 | 183492 |
| Property and equipment, net | 257785 | 280346 |
| Goodwill | 273991 | 400610 |
| Other intangible assets, net | 31250 | 37998 |
| Long-term marketable securities | 26419 | 14340 |
| Operating lease assets | 3844 | 5578 |
| Finance lease assets | 17532 | 1898 |
| Other long-term assets | 4779 | 4320 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | $802168 | $928582 |
| **Liabilities and shareholders' equity** |  |  |
| Current liabilities |  |  |
| Accounts payable | $17356 | $25364 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued compensation | 12743 | 13704 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued liabilities and other | 22384 | 11980 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current operating lease liabilities | 1561 | 3298 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current finance lease liabilities | 17537 | 550 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current liabilities | 71581 | 54896 |
| Long-term operating lease liabilities | 2255 | 2245 |
| Long-term finance lease liabilities |  | 1351 |
| Long-term deferred tax liabilities | 26322 | 35892 |
| Other long-term liabilities | 4362 | 5705 |
| Shareholders' equity | 697648 | 828493 |
| Total liabilities and shareholders' equity | $802168 | $928582 |

---

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**Proto Labs, Inc.** 

**Condensed Consolidated Statements of Operations** 

**(In thousands, except share and per share amounts)** 

**(Unaudited)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Year Ended** |
|  | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| Revenue |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Injection Molding | $44885 | $53905 | $200578 | $226117 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CNC Machining | 46563 | 44858 | 188372 | 166811 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3D Printing | 19530 | 18727 | 78988 | 72721 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sheet Metal | 4432 | 5607 | 19498 | 20397 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 197 | 485 | 962 | 2052 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue | 115607 | 123582 | 488398 | 488098 |
| Cost of revenue | 67000 | 68170 | 272933 | 265407 |
| Gross profit | 48607 | 55412 | 215465 | 222691 |
| Operating expenses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Marketing and sales | 20517 | 20229 | 82752 | 82175 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Research and development | 8906 | 10386 | 38222 | 44241 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative | 17774 | 11747 | 67544 | 55933 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goodwill impairment | 118008 |  | 118008 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Closure of Japan business | 534 |  | 6922 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 165739 | 42362 | 313448 | 182349 |
| (Loss) income from operations | (117132) | 13050 | (97983) | 40342 |
| Other income (expense), net | 429 | (118) | 106 | (158) |
| (Loss) income before income taxes | (116703) | 12932 | (97877) | 40184 |
| Provision for income taxes | (1638) | 1022 | 5585 | 6812 |
| Net (loss) income | $(115065) | $11910 | $(103462) | $33372 |
| Net (loss) income per share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic | $(4.24) | $0.43 | $(3.77) | $1.21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted | $(4.24) | $0.43 | $(3.77) | $1.21 |
| Shares used to compute net (loss) income per share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic | 27136821 | 27555357 | 27409838 | 27617627 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted | 27136821 | 27562694 | 27409838 | 27653099 |

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**Proto Labs, Inc.** 

**Condensed Consolidated Statements of Cash Flows** 

**(In thousands)** 

**(Unaudited)** 

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| | | |
|:---|:---|:---|
|  | **Year Ended** | **Year Ended** |
|  | **December 31,** | **December 31,** |
|  | **2022** | **2021** |
| **Operating activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net (loss) income | $(103462) | $33372 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 39425 | 40488 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation expense | 17545 | 19095 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred taxes | (9499) | 339 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in fair value of contingent consideration |  | (13253) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on impairment of goodwill | 118008 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairments related to closure of Japan business | 2842 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on disposal of property and equipment | (1211) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 35 | 842 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in operating assets and liabilities | (1604) | (25641) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by operating activities | 62079 | 55242 |
| **Investing activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases of property, equipment and other capital assets | (21686) | (34209) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sales of property, equipment and other capital assets | 4108 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash used for acquisitions, net of cash acquired |  | (127413) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases of marketable securities | (46872) | (16159) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sales of marketable securities | 1998 | 64913 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from call redemptions and maturities of marketable securities | 19360 | 18204 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash used in investing activities | (43092) | (94664) |
| **Financing activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from exercises of stock options and other | 3950 | 5862 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases of shares withheld for tax obligations | (1682) | (4225) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repurchases of common stock | (29659) | (23279) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Principal repayments of finance lease obligations | (531) | (552) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other |  | (4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash used in financing activities | (27922) | (22198) |
| Effect of exchange rate changes on cash and cash equivalents | (436) | (54) |
| **Net decrease in cash and cash equivalents** | (9371) | (61674) |
| **Cash and cash equivalents, beginning of period** | 65929 | 127603 |
| **Cash and cash equivalents, end of period** | $56558 | $65929 |

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**Proto Labs, Inc.** 

**Reconciliation of GAAP to Non-GAAP Net Income per Share** 

**(In thousands, except share and per share amounts)** 

**(Unaudited)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Year Ended** |
|  | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| Non-GAAP net (loss) income, adjusted for stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency, goodwill impairment, costs related to Japan closure activities and transaction costs |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; GAAP net (loss) income | $(115065) | $11910 | $(103462) | $33372 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Add back: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation expense | 4210 | 3556 | 17545 | 19095 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization expense | 1514 | 1552 | 6096 | 6153 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized (gain) loss on foreign currency | (490) | 215 | 252 | 556 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goodwill impairment | 118008 |  | 118008 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Costs related to Japan closure activities | 534 |  | 6922 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transaction costs <sup>1</sup> |  | (4705) |  | (10575) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total adjustments <sup>2</sup> | 123776 | 618 | 148823 | 15229 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax benefits on adjustments <sup>3</sup> | (1753) | (1150) | (4271) | (5789) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-GAAP net income | $6958 | $11378 | $41090 | $42812 |
| Non-GAAP net income per share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic | $0.26 | $0.41 | $1.50 | $1.55 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted | $0.26 | $0.41 | $1.50 | $1.55 |
| Shares used to compute non-GAAP net income per share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic | 27136821 | 27555357 | 27409838 | 27617627 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted | 27151991 | 27562694 | 27433257 | 27653099 |

---

<sup>1</sup> Transaction costs include direct costs incurred in the Company's acquisition of Hubs, Inc. and the impact of changes in the fair value of acquisition-related contingent consideration obligations.

<sup>2</sup> Stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency, goodwill impairment, costs related to Japan closure activities and transaction costs were included in the following GAAP consolidated statement of operations categories:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Year Ended** |
|  | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost of revenue | $840 | $990 | $3541 | $3964 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Marketing and sales | 816 | 895 | 3295 | 3736 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Research and development | 488 | 689 | 2190 | 2833 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative | 3580 | (2171) | 14615 | 4140 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goodwill impairment | 118008 |  | 118008 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Closure of Japan business | 534 |  | 6922 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 123426 | (587) | 145030 | 10709 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other (income) expense, net | (490) | 215 | 252 | 556 |
| Total adjustments | $123776 | $618 | $148823 | $15229 |

---

<sup>3</sup> For the three-month and year-ended periods ended December 31, 2022 and 2021, income tax effects were calculated using the effective tax rate for the relevant jurisdictions. The Company's non-GAAP tax rates differ from its GAAP tax rates due primarily to the mix of activity incurred in domestic and foreign tax jurisdictions and removing effective tax rate benefits from stock-based compensation activity in the quarter.

------

**Proto Labs, Inc.**

**Reconciliation of GAAP to Non-GAAP Gross Margin**

**(In thousands)**

**(Unaudited)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Year Ended** | **Three Months Ended** | **Three Months Ended** |
|  | **December 31,** | **December 31,** | **December 31,** | **December 31,** | **September 30,** | **September 30,** |
|  | **2022** | **2021** | **2022** | **2021** | **2022** | **2021** |
| Revenue | $115607 | $123582 | $488398 | $488098 | $121721 | $125342 |
| Gross Profit | 48607 | 55412 | 215465 | 222691 | 53632 | 55324 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; GAAP gross margin | 42.0% | 44.8% | 44.1% | 45.6% | 44.1% | 44.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Add back: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation expense | 498 | 648 | 2172 | 2595 | 560 | 644 |
| Amortization expense | 342 | 342 | 1369 | 1369 | 342 | 342 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total adjustments | 840 | 990 | 3541 | 3964 | 902 | 986 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-GAAP gross profit | $49447 | $56402 | $219006 | $226655 | $54534 | $56310 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-GAAP gross margin | 42.8% | 45.6% | 44.8% | 46.4% | 44.8% | 44.9% |

---

**Proto Labs, Inc.**

**Reconciliation of GAAP to Non-GAAP Gross Margin Excluding Japan**

**(In thousands)**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Year Ended** |
|  | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| Revenue | $115607 | $123582 | $488398 | $488098 |
| Revenue excluding Japan | $115607 | $120074 | $480169 | $474857 |
| Gross Profit | 48607 | 55412 | 215465 | 222691 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; GAAP gross margin | 42.0% | 44.8% | 44.1% | 45.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Japan gross (loss) profit | (93) | 1568 | 3057 | 5413 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross Profit excluding Japan | 48700 | 53844 | 212408 | 217278 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; GAAP gross margin excluding Japan | 42.1% | 44.8% | 44.2% | 45.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Add back: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation expense | 498 | 648 | 2172 | 2595 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization expense | 342 | 342 | 1369 | 1369 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japan stock-based compensation expense |  | 26 | 61 | 96 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japan amortization expense |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total adjustments | 840 | 964 | 3480 | 3868 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-GAAP gross profit excluding Japan | $49540 | $54808 | $215888 | $221146 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-GAAP gross margin excluding Japan | 42.9% | 45.6% | 45.0% | 46.6% |

---

------

**Proto Labs, Inc.**

**Reconciliation of GAAP to Non-GAAP Operating Margin**

**(In thousands)**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Year Ended** |
|  | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| Revenue | $115607 | $123582 | $488398 | $488098 |
| (Loss) income from operations | (117132) | 13050 | (97983) | 40342 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; GAAP operating margin | (101.3)% | 10.6% | (20.1)% | 8.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Add back: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation expense | 4210 | 3556 | 17545 | 19095 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization expense | 1514 | 1552 | 6096 | 6153 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transaction costs <sup>1</sup> |  | (4705) |  | (10575) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goodwill impairment | 118008 |  | 118008 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Costs related to Japan closure activities | 534 |  | 6922 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total adjustments | 124266 | 403 | 148571 | 14673 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-GAAP income from operations | $7134 | $13453 | $50588 | $55015 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-GAAP operating margin | 6.2% | 10.9% | 10.4% | 11.3% |

---

<sup>1</sup> Transaction costs include direct costs incurred in the Company's acquisition of Hubs, Inc. and the impact of changes in the fair value of acquisition-related contingent consideration obligations. <br>    

**Proto Labs, Inc.**

**Reconciliation of GAAP to Non-GAAP Operating Margin Excluding Japan**

**(In thousands)**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Year Ended** |
|  | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| Revenue | $115607 | $123582 | $488398 | $488098 |
| Revenue excluding Japan | $115607 | $120074 | $480169 | $474857 |
| (Loss) income from operations | (117132) | 13050 | (97983) | 40342 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; GAAP operating margin | (101.3)% | 10.6% | (20.1)% | 8.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Japan (loss) income from operations | (594) | 154 | (1424) | (1020) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Loss) income from operations excluding Japan | (116538) | 12896 | (96559) | 41362 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; GAAP operating margin excluding Japan | (100.8)% | 10.7% | (20.1)% | 8.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Add back: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation expense | 4210 | 3556 | 17545 | 19095 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization expense | 1514 | 1552 | 6096 | 6153 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transaction costs <sup>1</sup> |  | (4705) |  | (10575) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goodwill impairment | 118008 |  | 118008 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Costs related to Japan closure activities | 534 |  | 6922 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japan stock-based compensation expense | 20 | 163 | 406 | 626 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japan amortization expense |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total adjustments | 124246 | 240 | 148165 | 14047 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-GAAP income from operations excluding Japan | $7708 | $13136 | $51606 | $55409 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-GAAP operating margin excluding Japan | 6.7% | 10.9% | 10.7% | 11.7% |

---

<sup>1</sup> Transaction costs include direct costs incurred in the Company's acquisition of Hubs, Inc. and the impact of changes in the fair value of acquisition-related contingent consideration obligations. <br>    

------

**Proto Labs, Inc.**

**Reconciliation of GAAP Net Income to EBITDA and Adjusted EBITDA**

**(In thousands)**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Year Ended** |
|  | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| Revenue | $115607 | $123582 | $488398 | $488098 |
| GAAP net (loss) income | (115065) | 11910 | (103462) | 33372 |
| GAAP net (loss) income margin | (99.5)% | 9.6% | (21.2)% | 6.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Add back: |  |  |  |  |
| Amortization expense | $1514 | $1552 | $6096 | $6153 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation expense | 7930 | 8705 | 33329 | 34335 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income, net | (509) | (23) | (968) | (230) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax expense | (1638) | 1022 | 5585 | 6812 |
| EBITDA | (107768) | 23166 | (59420) | 80442 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EBITDA Margin | (93.2)% | 18.7% | (12.2)% | 16.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Add back: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation expense | 4210 | 3556 | 17545 | 19095 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized (gain) loss on foreign currency | (490) | 215 | 252 | 556 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Costs related to Japan closure activities | 534 |  | 6922 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goodwill impairment | 118008 |  | 118008 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transaction costs <sup>1</sup> |  | (4705) |  | (10575) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total adjustments | 122262 | (934) | 142727 | 9076 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjusted EBITDA | $14494 | $22232 | $83307 | $89518 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjusted EBITDA Margin | 12.5% | 18.0% | 17.1% | 18.3% |

---

<sup>1</sup> Transaction costs include direct costs incurred in the Company's acquisition of Hubs, Inc. and the impact of changes in the fair value of acquisition-related contingent consideration obligations. <br>   

------

**Proto Labs, Inc.** 

**Comparison of GAAP to Non-GAAP Revenue Growth by Region** 

**(In thousands)** 

**(Unaudited)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended**<br> **December 31, 2022** | **Three Months Ended**<br> **December 31, 2022** | **Three Months Ended**<br> **December 31, 2022** | **Three Months Ended**<br> **December 31, 2022** | **Three Months Ended**<br> **December 31, 2021** | **%** |  |
|  | **GAAP** | **Foreign Currency<sup>1</sup>** | **Hubs Acquisition** | **Non-GAAP** | **GAAP** | **Change<sup>3</sup>** | **% Change Organic<sup>4</sup>** |
| Revenues |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; United States | $92278 | $- | $- | $92278 | $97934 | (5.8)% | (5.8)% |
| &nbsp;&nbsp;&nbsp; Europe | 23329 | 3216 |  | 26545 | 22140 | 5.4 | 19.9 |
| &nbsp;&nbsp;&nbsp; Japan |  |  |  |  | 3508 | (100.0) | (100.0) |
| &nbsp;&nbsp;&nbsp; Total Revenue | $115607 | $3216 | $- | $118823 | $123582 | (6.5)% | (3.9)% |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Year Ended**<br> **December 31, 2022** | **Year Ended**<br> **December 31, 2022** | **Year Ended**<br> **December 31, 2022** | **Year Ended**<br> **December 31, 2022** | **Year Ended**<br> **December 31, 2021** | **%** |  |
|  | **GAAP** | **Foreign Currency<sup>1</sup>** | **Hubs Acquisition<sup>2</sup>** | **Non-GAAP** | **GAAP** | **Change<sup>3</sup>** | **% Change Organic<sup>4</sup>** |
| Revenues |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; United States | $387399 | $- | $(1049) | $386350 | $384458 | 0.8% | 0.5% |
| &nbsp;&nbsp;&nbsp; Europe | 92770 | 10381 | (1279) | 101872 | 90399 | 2.6 | 12.7 |
| &nbsp;&nbsp;&nbsp; Japan | 8229 | 1226 |  | 9455 | 13241 | (37.9) | (28.6) |
| &nbsp;&nbsp;&nbsp; Total Revenue | $488398 | $11607 | $(2328) | $497677 | $488098 | 0.1% | 2.0% |

---

---

| |
|:---|
| <sup>1</sup> Revenue for the three-month and year-ended periods ended December 31, 2022 has been recalculated using 2021 foreign currency exchange rates in effect during comparable periods to provide information useful in evaluating the underlying business trends excluding the impact of changes in foreign currency exchange rates. |
| <sup>2</sup> Revenue for the year-ended period ended December 31, 2022 has been recalculated to exclude revenue earned from the Company's acquisition of Hubs, Inc. for the period from January 1, 2022 to January 21, 2022 to provide information useful in evaluating the underlying business trends excluding the impact of acquisitions. The Hubs, Inc. acquisition occurred on January 22, 2021 and was included in 2021 revenue after that date. |
| <sup>3</sup> This column presents the percentage change from GAAP revenue for the three-month and year-ended periods ended December 31, 2021 to GAAP revenue for the three-month and year-ended periods ended December 31, 2022. |
| <sup>4</sup> This column presents the percentage change from GAAP revenue for the three-month and year-ended periods ended December 31, 2021 to non-GAAP revenue for the three-month and year-ended periods ended December 31, 2022 (as recalculated using the foreign currency exchange rates in effect during the three-month and year-ended periods ended December 31, 2021, excluding the impact of Hubs, Inc. acquisition) in order to provide a constant-currency comparison. |

---

------

**Proto Labs, Inc.**

**Comparison of GAAP to Non-GAAP Revenue Growth by Service Line**

**(In thousands)**

**(Unaudited)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended**<br> **December 31, 2022** | **Three Months Ended**<br> **December 31, 2022** | **Three Months Ended**<br> **December 31, 2022** | **Three Months Ended**<br> **December 31, 2022** | **Three Months Ended**<br> **December 31, 2021** | **%** |  |
|  | **GAAP** | **Foreign Currency<sup>1</sup>** | **Hubs Acquisition** | **Non-GAAP** | **GAAP** | **Change<sup>3</sup>** | **% Change Organic<sup>4</sup>** |
| Revenues |  |  |  |  |  |  |  |
| Injection Molding | $44885 | $1383 | $- | $46268 | $53905 | (16.7)% | (14.2)% |
| CNC Machining | 46563 | 1083 |  | 47646 | 44858 | 3.8 | 6.2 |
| 3D Printing | 19530 | 726 |  | 20256 | 18727 | 4.3 | 8.2 |
| Sheet Metal | 4432 | 24 |  | 4456 | 5607 | (21.0) | (20.5) |
| Other | 197 |  |  | 197 | 485 | (59.4) | (59.4) |
| Total Revenue | $115607 | $3216 | $- | $118823 | $123582 | (6.5)% | (3.9)% |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Year Ended**<br> **December 31, 2022** | **Year Ended**<br> **December 31, 2022** | **Year Ended**<br> **December 31, 2022** | **Year Ended**<br> **December 31, 2022** | **Year Ended**<br> **December 31, 2021** | **%** |  |
|  | **GAAP** | **Foreign Currency<sup>1</sup>** | **Hubs Acquisition<sup>2</sup>** | **Non-GAAP** | **GAAP** | **Change<sup>3</sup>** | **% Change Organic<sup>4</sup>** |
| Revenues |  |  |  |  |  |  |  |
| Injection Molding | $200578 | $5485 | $(189) | $205874 | $226117 | (11.3)% | (9.0)% |
| CNC Machining | 188372 | 3776 | (1637) | 190511 | 166811 | 12.9 | 14.2 |
| 3D Printing | 78988 | 2279 | (408) | 80859 | 72721 | 8.6 | 11.2 |
| Sheet Metal | 19498 | 63 | (84) | 19477 | 20397 | (4.4) | (4.5) |
| Other | 962 | 4 | (10) | 956 | 2052 | (53.1) | (53.4) |
| Total Revenue | $488398 | $11607 | $(2328) | $497677 | $488098 | 0.1% | 2.0% |

---

---

| |
|:---|
| <sup>1</sup> Revenue for the three-month and year-ended periods ended December 31, 2022 has been recalculated using 2021 foreign currency exchange rates in effect during comparable periods to provide information useful in evaluating the underlying business trends excluding the impact of changes in foreign currency exchange rates. |
| <sup>2</sup> Revenue for the year-ended period ended December 31, 2022 has been recalculated to exclude revenue earned from the Company's acquisition of Hubs, Inc. for the period from January 1, 2022 to January 21, 2022 to provide information useful in evaluating the underlying business trends excluding the impact of acquisitions. The Hubs, Inc. acquisition occurred on January 22, 2021 and was included in 2021 revenue after that date. |
| <sup>3</sup> This column presents the percentage change from GAAP revenue for the three-month and year-ended periods ended December 31, 2021 to GAAP revenue for the three-month and year-ended periods ended December 31, 2022. |
| <sup>4</sup> This column presents the percentage change from GAAP revenue for the three-month and year-ended periods ended December 31, 2021 to non-GAAP revenue for the three-month and year-ended periods ended December 31, 2022 (as recalculated using the foreign currency exchange rates in effect during the three-month and year-ended periods ended December 31, 2021, excluding the impact of Hubs, Inc. acquisition) in order to provide a constant-currency comparison. |

---

------

**Proto Labs, Inc.**

**Product Developer Information**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Year Ended** |
|  | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| Unique product developers and engineers served | 22205 | 23376 | 56333 | 55330 |

---