It was truly a mixed year of results for a Minneapolis-based digital manufacturing and ecommerce company.
In the wake of flat top-line results for 2022 but a weak bottom line, Protolabs Inc. posted revenue of $488.4 million in 2022. That’s up only slightly from $488.1 million in 2021. Net loss was $103.4 million versus net profit of $33.37 million in 2021. Protolabs offers injection molding, CNC machining, 3D printing, and sheet metal fabrication to about 50,000 product developers, engineers, and supply chain teams throughout the world.
For the fourth quarter ended Dec. 31, Protolabs revenue was $115.6 million. That’s a 6.5% decrease compared to revenue of $123.6 million in the fourth quarter of 2021. Net loss for Q4 2022 was $115.1 million, driven by a goodwill impairment charge of $118.0 million for closing its operations in Japan.
To turn around sales and profits, Protolabs is narrowing its product focus and adding more digital tools for customers, CEO Rob Bodor told analysts on the year-end earnings call.
“We are narrowing our focus and investments to drive growth in two priority areas: our two largest services, injection molding and our new integrated comprehensive CNC offer that combines the speed and automation of our digital factory with the broad capabilities of our digital network powered by Hubs,” he told analysts. “I am confident that a sharper focus on fewer priorities will allow our organization to succeed in 2023 and ultimately drive greater value for our shareholders.”
Hubs offers digital manufacturing services through an international network of hundreds of manufacturers and also processes orders online. The company acquired Amsterdam-based Hubs in 2021 for $280 million.