Pent-up demand for custom-manufactured industrial parts available through e-commerce is driving up revenue at Proto Labs Inc., a manufacturer that does a large majority of its sales through its e-commerce site.
The Maple Plain, Minn.-based company reported a 9.4% increase in revenue for the second quarter, as its e-commerce site, ProtoLabs.com, attracted more engineers and developers who purchase its custom-manufactured industrial parts.
“In addition to our revenue growth, we continue to serve a record number of product developers,” Vicki Holt, president and CEO, said on a first quarter conference call with stock analysts last week, according to a transcript from Seeking Alpha. “Our unique product developers served increased 18.8% over the prior year to 16,174.”
Proto Labs, which calls itself an “e-commerce-driven digital manufacturer,” provides several types of custom manufacturing that customers can order online: 3-D printing, which uses digital blueprints to construct items by adding or removing materials layer by layer; additive manufacturing, a form of 3D printing used to add materials to build products; injection molding, a process by which material is forced into a mold to form a product; and CNC, or computer numerical control, a process by which machining or milling tools operate automatically via computer programming. Two years ago, Proto Labs developed an e-commerce site where customers could place orders for all of these manufacturing services, replacing a former set-up that operated separate websites for each service.
For the second quarter ended June 30, Proto Labs, No. 131 in the B2B E-Commerce 300, reported:
- Revenue of $82.04 million, up 9.4% from $74.96 million a year earlier;
- Revenue in the U.S. market of $63.35 million, up 14.5% from $55.32 million;
- Revenue in Europe of $16.131 million, down 6.6% from $17.276 million;
- Revenue in Japan of $2.556 million, up 8.2% from $2.362 million;
- Gross profit of $46.369 million, up 9.8% from $42.246 million, for a gross profit margin of 56.5%, up slightly from 56.4%;
- Net income of $12.086 million, up 13.0% from $10.691 million.
For the six months ended June 30, Proto Labs reported:
- Revenue of $162.207 million, up 9.9% from $147.529 million a year earlier;
- Revenue in the U.S. market of $123.529 million, up 12.5% from $109.791 million;
- Revenue in Europe of $33.130 million, up 0.7% from$32.907 million;
- Revenue in Japan of $5.548 million, up 14.8% from $4.831 million;
- Gross profit of $91.64 million, up 11.9% from $81.90 million;
- Net income of $24.286 million, up 13.7% from $21.353 million.
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