Proto Labs (PRLB) 8-K Proto Labs Reports Record Revenue and Net Income for the Second Quarter 2013

Exhibit 99.1

Proto Labs Reports Record Revenue and Net Income for the Second Quarter 2013

Quarterly Revenue Increases 33% Year over Year to $39.7 Million

Quarterly Net Income Increases 67% Year over Year to $8.6 Million

MAPLE PLAIN, Minn.—August 1, 2013—Proto Labs, Inc. (NYSE: PRLB), a leading online and technology-enabled quick-turn manufacturer, today announced its record financial results for the second quarter ended June 30, 2013.

Highlights include:

• Revenue for the second quarter of 2013 increased to a record $39.7 million, 33 percent above revenue of $30.0 million in the second quarter of 2012.

• The record quarterly revenue was achieved through a 22 percent increase in the number of product developers served combined with an increase of 8 percent in spending per product developer.

• Net income for the second quarter of 2013 increased to a record $8.6 million, or $0.33 per diluted share. Non-GAAP net income, excluding the after tax expense of stock compensation, was $9.3 million, or $0.36 per diluted share. See “Non-GAAP Financial Measure” below.

“This past quarter again demonstrates that product developers value our services. Businesses today compete globally and need to use technology to accelerate their new ideas to the market. As the world’s fastest provider of CNC and injection-molded parts using engineering-grade materials and real manufacturing processes, we are well-placed to benefit from this trend and make product developers more successful,” said Proto Labs’ President and CEO Brad Cleveland.

Additional highlights include:

• Gross margin was 62.5 percent of revenue in the second quarter of 2013 compared with 59.1 percent during the same quarter in 2012.

• During the second quarter of 2013, spending on research and development, including the Protoworks initiatives, totaled $2.8 million, or 6.9 percent of revenue. This compares to $2.4 million, or 8.0 percent of revenue during the second quarter of 2012.

• Operating margin was 31.8 percent of revenue during the second quarter of 2013 compared to 24.9 percent in the second quarter of 2012.

• Gross margin in the second quarter exceeded the target model for the third consecutive quarter; and for the fourth consecutive quarter, operating margin also exceeded the target model.

• As measured on a year to date basis, cash generated from operations totaled $19.4 million and expenditures on capital equipment were $6.1 million.

“Our sales and marketing teams dig deeper and wider in our customer base. We are making progress in our R&D efforts to expand the part envelope and services we offer. Our world-wide manufacturing teams stress both productivity and quality and these results are clearly seen in our excellent gross margins. We anticipate that all of these efforts will generate solid growth for our company in future quarters,” concluded Mr. Cleveland.

Non-GAAP Financial Measure

The company has included non-GAAP net income, adjusted for stock-based compensation expense in this press release to provide investors with additional information regarding the company’s financial results. The company has provided below a reconciliation of non-GAAP net income, adjusted for stock-based compensation expense, to net income, the most directly comparable measure calculated and presented in accordance with GAAP. Non-GAAP net income, adjusted for stock-based compensation expense, is used by the company’s management and board of directors to understand and evaluate operating performance and trends and provides a useful measure for period-to-period comparisons of the company’s business. Accordingly, the company believes that non-GAAP net income, adjusted for stock-based compensation expense, provides useful information to investors and others in understanding and evaluating operating results in the same manner as our management and board of directors.

Conference Call

The company has scheduled a conference call to discuss its second quarter financial results today, August 1 at 8:30 a.m. ET. To access the call in the U.S. please dial 877-474-9506. Outside the U.S. please dial 857-244-7559. Use participant code 36641968#. A simultaneous webcast of the call will also be available on the investor relations section of the company’s website atwww.protolabs.com/investors. An audio replay will be available for 14 days following the call on the investor relations website of Proto Lab’s website.

About Proto Labs, Inc.

Proto Labs is a leading online and technology-enabled quick-turn manufacturer of custom parts for prototyping and short-run production. Proto Labs provides “Real Parts, Really Fast” to product developers worldwide. Proto Labs utilizes computer numerical control (CNC) machining and injection molding to manufacture custom parts for our customers. For more information, visit protolabs.com.

Forward-Looking Statements

Statements contained in this press release regarding matters that are not historical or current facts are “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors which may cause the results of Proto Labs to be materially different than those expressed or implied in such statements. Certain of these risk factors and others are described in the “Risk Factors” section within reports filed with the SEC. Other unknown or unpredictable factors also could have material adverse effects on Proto Labs’ future results. The forward-

looking statements included in this press release are made only as of the date hereof. Proto Labs cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, Proto Labs expressly disclaims any intent or obligation to update any forward-looking statements to reflect subsequent events or circumstances.

Contacts:

Investor Relations:

Jack Judd, 763-479-7408

jack.judd@protolabs.com

Media Relations:

Bill Dietrick, 763-479-7664

bill.dietrick@protolabs.com

Proto Labs, Inc.

Condensed Consolidated Balance Sheets

(In thousands)

	June 30, 2013		December 31, 2012
	(Unaudited)
Assets
Current assets
Cash and cash equivalents	$	35,446	$	36,759
Short-term marketable securities		30,330		25,137
Accounts receivable, net		17,529		15,791
Inventory		4,875		4,619
Other current assets		8,461		7,850
Total current assets		96,641		90,156
Property and equipment, net		47,144		45,316
Long-term marketable securities		54,169		36,965
Other long-term assets		246		285
Total assets	$	198,200	$	172,722
Liabilities and shareholders’ equity
Current liabilities
Accounts payable	$	5,712	$	4,758
Accrued compensation		4,372		5,995
Accrued liabilities and other		623		513
Current portion of long-term debt obligations		180		273
Total current liabilities		10,887		11,539
Deferred tax liabilities		3,346		3,346
Long-term debt obligations		241		356
Other long-term liabilities		700		782
Shareholders’ equity		183,026		156,699
Total liabilities and shareholders’ equity	$	198,200	$	172,722

Proto Labs, Inc.

Condensed Consolidated Statements of Operations

(In thousands, except share and per share amounts)

(Unaudited)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2013		2012		2013		2012
Revenues
Protomold	$	27,924	$	21,446	$	54,804	$	43,239
Firstcut		11,825		8,505		22,258		16,682
Total revenues		39,749		29,951		77,062		59,921
Cost of revenues		14,896		12,239		28,930		24,482
Gross profit		24,853		17,712		48,132		35,439
Operating expenses
Marketing and sales		5,550		4,557		10,813		8,998
Research and development		2,751		2,401		5,379		4,061
General and administrative		3,923		3,288		7,917		7,276
Total operating expenses		12,224		10,246		24,109		20,335
Income from operations		12,629		7,466		24,023		15,104
Other income (expense), net		116		173		119		(404	)
Income before income taxes		12,745		7,639		24,142		14,700
Provision for income taxes		4,134		2,493		7,244		4,772
Net income	$	8,611	$	5,146	$	16,898	$	9,928
Net income per share:
Basic	$	0.34	$	0.22	$	0.68	$	0.44
Diluted	$	0.33	$	0.20	$	0.66	$	0.42
Shares used to compute net income per share:
Basic		25,258,932		23,929,886		25,030,283		22,432,415
Diluted		25,850,247		25,280,835		25,627,382		23,743,122

Proto Labs, Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

	Six Months Ended
	June 30,
	2013			2012
Operating activities
Net income	$	16,898		$	9,928
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		3,582			2,768
Stock-based compensation expense		1,736			1,620
Deferred taxes		307			—
Excess tax benefit from stock-based compensation		(5,929	)		—
Amortization of held-to-maturity securities		633			24
Loss on disposal of property and equipment		59			—
Changes in operating assets and liabilities:		2,162			(2,838	)
Net cash provided by operating activities		19,448			11,502
Investing activities
Purchases of property and equipment		(6,069	)		(12,664	)
Purchases of marketable securities		(57,310	)		(34,366	)
Proceeds from maturities of marketable securities		34,280			250
Net cash used in investing activities		(29,099	)		(46,780	)
Financing activities
Proceeds from initial public offering, net of offering costs		—			71,530
Payments on debt		(166	)		(191	)
Proceeds from exercises of warrants and stock options		2,870			37
Excess tax benefit from stock-based compensation		5,929			—
Net cash provided by financing activities		8,633			71,376
Effect of exchange rate changes on cash and cash equivalents		(295	)		153
Net increase (decrease) in cash and cash equivalents		(1,313	)		36,251
Cash and cash equivalents, beginning of period		36,759			8,135
Cash and cash equivalents, end of period	$	35,446		$	44,386

Proto Labs, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measure

(In thousands, except share and per share amounts)

(Unaudited)

	Three Months Ended			Six Months Ended
	June 30, 2013			June 30, 2013
Non-GAAP net income, adjusted for stock-based compensation expense:
GAAP net income	$	8,611		$	16,898
Add back: Stock-based compensation expense
Cost of revenue		73			144
Marketing and sales		151			301
Research and development		181			354
General and administrative		466			937
Total stock-based compensation expense		871			1,736
Less: Tax benefit on stock-based compensation		(202	)		(408	)
Non-GAAP net income	$	9,280		$	18,226
Non-GAAP net income per share:
Basic	$	0.37		$	0.73
Diluted	$	0.36		$	0.71
Shares used to compute non-GAAP net income per share:
Basic		25,258,932			25,030,283
Diluted		25,850,247			25,627,382

Proto Labs, Inc.

Revenue by Geography—Based on Shipping Location

(In thousands)

(Unaudited)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2013		2012		2013		2012
Revenues
Domestic
United States	$	30,106	$	22,905	$	58,254	$	45,080
International
Europe		6,840		5,054		13,304		10,534
Japan		1,317		959		2,666		2,317
United States		1,486		1,033		2,838		1,990
Total international		9,643		7,046		18,808		14,841
Total revenue	$	39,749	$	29,951	$	77,062	$	59,921

Proto Labs, Inc.

Customer Information

(In thousands, except customer amounts)

(Unaudited)

	Six Months Ended June 30,
	2013				2012
	Number of Customers		Revenue ($)		Number of Customers		Revenue ($)
New customers		1,435	$	7,952		1,507	$	7,456
Existing customers		4,644		69,110		3,858		52,465
Total		6,079	$	77,062		5,365	$	59,921

Proto Labs, Inc.

Product Developer Information

(Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
Unique product developers served		6,885		5,625		10,219		8,444

Proto Labs, Inc.

Product Developer Information—Quarterly

(Unaudited)

	Three Months Ended
	Jun. 30, 2013		Mar. 31, 2013		Dec. 31, 2012		Sep. 30, 2012		Jun. 30, 2012		Mar. 31, 2012		Dec. 31, 2011		Sep. 30, 2011		Jun. 30, 2011		Mar. 31, 2011
Unique product developers served		6,885		6,488		6,043		5,928		5,625		5,370		4,785		4,700		4,302		3,903