Proto Labs (PRLB) Financial Report Summaries

Risks

• We face significant competition and expect to face increasing competition in many aspects of our business, which could cause our operating results to suffer.
• We may not timely and effectively scale and adapt our existing technology, processes and infrastructure to meet the needs of our business.
• Numerous factors may cause us not to maintain the revenue growth that we have historically experienced.
• Interruptions to, or other problems with, our website and interactive user interface, information technology systems, manufacturing processes or other operations could damage our reputation and brand and substantially harm our business and results of operations.
• We store confidential customer information in our systems that, if breached or otherwise subjected to unauthorized access, may harm our reputation or brand or expose us to liability.
• Aspects of our business are subject to privacy, data use and data security regulations, which may impact the way we use data to target customers.
• Global economic conditions may harm our ability to do business, increase our costs and negatively affect our stock price.
• We operate a global business that exposes us to additional risks.
• Climate change, or legal, regulatory or market measures to address climate change, may materially adversely affect our financial condition and business operations.
• If a natural or man-made disaster strikes any of our manufacturing facilities, we will be unable to manufacture our products for a substantial amount of time and our sales will decline.
• Any acquisition, strategic relationship, joint venture or investment could disrupt our business and harm our operating results and financial condition.
• Our success depends on our ability to deliver products and product lines that meet the needs of customers and to effectively respond to changes in our industry.
• Our failure to meet our customers' expectations regarding quick turnaround time would adversely affect our business and results of operations.
• Our failure to meet our customers’ price expectations would adversely affect our business and results of operations.
• Our failure to meet our customers' quality specifications would adversely affect our business and results of operations.
• The strength of our brand is important to our business, and any failure to maintain and enhance our brand would hurt our ability to retain and expand our customer base as well as further penetrate existing customers.
• Our business depends in part on our ability to process a large volume of new part designs from a diverse group of customers and successfully identify significant opportunities for our business based on those submissions.
• The loss of one or more key members of our management team or personnel, or our failure to attract, integrate and retain additional personnel in the future, could harm our business and negatively affect our ability to successfully grow our business.
• If our present single or limited source suppliers become unavailable or inadequate, our customer relationships, results of operations and financial condition may be adversely affected.
• We may not be able to adequately protect or enforce our intellectual property rights, which could impair our competitive position.
• We may be subject to infringement claims.
• Our failure to expand our intellectual property portfolio could adversely affect the growth of our business and results of operations.
• We may be subject to product liability claims, which could result in material expense, diversion of management time and attention and damage to our business, reputation, and brand.
• Government regulation of the Internet and e-commerce is evolving, and unfavorable changes or failure by us to comply with these regulations could substantially harm our business and results of operations.
• Changes in, or interpretation of, tax rules and regulations may impact our effective tax rate and future profitability.
• We may require additional capital to support business growth, and this capital might not be available on acceptable terms, if at all.
• Our operating results and financial condition may fluctuate on a quarterly and annual basis.
• Our business involves the use of hazardous materials, and we and our suppliers must comply with environmental laws and regulations, which can be expensive and restrict how we do business.
• If we are unable to meet quality standards applicable to our manufacturing and quality processes for the parts we manufacture, our business, financial condition or operating results could be harmed.
• We are subject to payment-related risks.
• Our stock price has been and may continue to be volatile.
• If securities or industry analysts publish inaccurate or unfavorable research or reports about our business, our stock price and trading volume could decline.
• Our failure to maintain proper and effective internal controls over financial reporting and otherwise comply with Section 404 of the Sarbanes-Oxley Act or prevent or detect misstatements in our financial statements in the future could harm our business and cause a decrease in our stock price.
• Anti-takeover provisions in our charter documents and Minnesota law might discourage or delay acquisition attempts for us that you might consider favorable.
• We do not expect to pay any cash dividends for the foreseeable future.