Balanced and Resilient Revenue Profile
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Presentation of Information
3D Systems reports its financial results in accordance with GAAP. Management also reviews and reports certain non-GAAP measures, including: non-GAAP
revenue, non-GAAP Gross profit, non-GAAP Gross profit margin, non-GAAP SG&A, adjusted EBITDA and adjusted EBITDA Margin. Non-GAAP revenue is
defined in this presentation as reported revenue less revenue from businesses divested in 2021. These non-GAAP measures exclude certain special items
that management does not view as part of 3D Systems' underlying results as they may be highly variable, may be unusual or infrequent, are difficult to
predict and can distort underlying business trends and results. Management believes that the non-GAAP measures provide useful additional insight into
underlying business trends and results and provide a more meaningful comparison of period-over-period results. Additionally, management uses the non-
GAAP measures for planning, forecasting and evaluating business and financial performance, including allocating resources and evaluating results relative
to employee compensation targets. 3D Systems' non-GAAP measures are not calculated in accordance with or as required by GAAP and may not be
calculated the same as similarly titled measures used by other companies. These non-GAAP measures should thus be considered as supplemental in
nature and not considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP.
Adjusted EBITDA, defined as net income, plus income tax (provision)/benefit, interest and other income/(expense), net, stock-based compensation
expense, amortization of intangibles, depreciation expense and other non-recurring and/or non-cash items all as described above, is used by management
to evaluate performance and helps measure financial performance period-over-period.
3D Systems does not provide forward-looking guidance for certain measures on a GAAP basis. The company is unable to provide a quantitative
reconciliation of forward-looking non-GAAP SG&A and Adjusted EBITDA to the most directly comparable forward-looking GAAP measures without
unreasonable effort because certain items, including legal, acquisition expenses, stock-compensation expense, intangible amortization expense,
restructuring expenses, and goodwill impairment, are difficult to predict and estimate. These items are inherently uncertain and depend on various
factors, many of which are beyond the company's control, and as such, any associated estimate and its impact on GAAP performance could vary materially.
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