Proto Labs, Inc. reported a slight decline in total revenue for the fiscal year ending December 31, 2024, with figures reaching $500.9 million, down from $503.9 million in 2023. The company's net income also decreased to $16.6 million, compared to $17.2 million in the previous year. Despite the revenue drop, gross profit increased marginally to $223.2 million, resulting in a gross margin of 44.6%, up from 44.1% in 2023. The decrease in revenue was attributed to a 4.8% decline in injection molding revenue and a 7.7% decrease in sheet metal revenue, which were partially offset by a 4.4% increase in CNC machining revenue.
In terms of operational changes, Proto Labs announced the closure of its prototype injection molding facility in Eschenlohe, Germany, and the discontinuation of Direct Metal Laser Sintering 3D printing services at its Putzbrunn facility. This decision is part of a broader strategy to streamline operations and is expected to be completed by the end of fiscal year 2025. The company also dissolved its Japan operations in December 2023, which had been a part of its international strategy. As of December 31, 2024, Proto Labs employed 2,357 full-time employees, a slight decrease from the previous year, reflecting adjustments made in response to lower operational volumes.
Customer engagement metrics showed a decrease in unique customer contacts, with 51,552 served in 2024, down 3.6% from 53,464 in 2023. However, revenue per customer contact increased by 3.1%, indicating a strategic shift towards securing larger orders from existing customers. The company continues to leverage its digital manufacturing capabilities, which allow for rapid prototyping and on-demand production, catering to the evolving needs of product developers and engineers across various industries.
Looking ahead, Proto Labs remains focused on enhancing its technology and expanding its manufacturing capabilities through its Protolabs Network, which was rebranded from Hubs in January 2024. The company anticipates that ongoing investments in technology and operational efficiencies will position it to better meet customer demands and capitalize on market trends, including the increasing need for customized and rapidly produced parts. Despite the challenges faced in 2024, Proto Labs is optimistic about its growth trajectory and the potential for improved financial performance in the coming years.
About Proto Labs Inc
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