Proto Labs (PRLB) 10-Q 3 Nov 23 2023 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2023	Oct. 31, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity File Number	001-35435
Entity Registrant Name	Proto Labs, Inc.
Entity Incorporation, State or Country Code	MN
Entity Tax Identification Number	41-1939628
Entity Address, Address Line One	5540 Pioneer Creek Drive
Entity Address, City or Town	Maple Plain
Entity Address, State or Province	MN
Entity Address, Postal Zip Code	55359
City Area Code	763
Local Phone Number	479-3680
Title of 12(b) Security	Common Stock, Par Value $0.001 Per Share
Trading Symbol	PRLB
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		25,785,903
Entity Central Index Key	0001443669
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents	$ 83,496	$ 56,558
Short-term marketable securities	19,204	23,568
Accounts receivable, net of allowance for doubtful accounts of $2,665 and $1,706 as of September 30, 2023, and December 31, 2022, respectively	78,395	76,225
Inventory	13,803	13,578
Income taxes receivable	891	4,042
Prepaid expenses and other current assets	8,722	12,597
Total current assets	204,511	186,568
Property and equipment, net	243,022	257,785
Goodwill	273,991	273,991
Other intangible assets, net	26,668	31,250
Long-term marketable securities	12,212	26,419
Operating lease assets	2,737	3,844
Finance lease assets	16,763	17,532
Other long-term assets	4,341	4,779
Total assets	784,245	802,168
Current liabilities
Accounts payable	17,922	17,356
Accrued compensation	16,337	12,743
Accrued liabilities and other	21,027	22,384
Current operating lease liabilities	1,568	1,561
Current finance lease liabilities	16,630	17,537
Income taxes payable	1,144	0
Total current liabilities	74,628	71,581
Long-term operating lease liabilities	1,545	2,255
Long-term finance lease liabilities	671	0
Long-term deferred tax liabilities	17,138	26,322
Other long-term liabilities	5,341	4,362
Total liabilities	99,323	104,520
Shareholders' equity
Preferred stock, $0.001 par value, authorized 10,000,000 shares; issued and outstanding 0 shares as of each of September 30, 2023, and December 31, 2022	0	0
Common stock, $0.001 par value, authorized 150,000,000 shares; issued and outstanding 25,785,903 and 26,888,425 shares as of September 30, 2023, and December 31, 2022, respectively	26	27
Additional paid-in capital	463,908	473,740
Retained earnings	251,276	258,236
Accumulated other comprehensive loss	(30,288)	(34,355)
Total shareholders' equity	684,922	697,648
Total liabilities and shareholders' equity	$ 784,245	$ 802,168

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Allowance for credit loss, current	$ 2,665	$ 1,706
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized (in shares)	10,000,000	10,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	150,000,000	150,000,000
Common stock, issued (in shares)	25,785,903	26,888,425
Common stock, outstanding (in shares)	25,785,903	26,888,425

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Statements of Operations:
Revenue	$ 130,705	$ 121,721	$ 378,829	$ 372,791
Cost of revenue	71,423	68,089	212,648	205,933
Gross profit	59,282	53,632	166,181	166,858
Operating expenses
Marketing and sales	21,682	20,594	65,863	62,235
Research and development	10,105	9,309	30,647	29,316
General and administrative	17,058	16,477	49,713	49,770
Closure of Japan business	22	1,194	186	6,388
Total operating expenses	48,867	47,574	146,409	147,709
Income from operations	10,415	6,058	19,772	19,149
Other income (loss), net	320	(24)	(1,758)	(323)
Income before income taxes	10,735	6,034	18,014	18,826
Provision for income taxes	2,781	2,083	7,784	7,223
Net income	$ 7,954	$ 3,951	$ 10,230	$ 11,603
Net income per share:
Basic (in dollars per share)	$ 0.31	$ 0.14	$ 0.39	$ 0.42
Diluted (in dollars per share)	$ 0.31	$ 0.14	$ 0.39	$ 0.42
Shares used to compute net income per share:
Basic (in shares)	26,023,830	27,505,097	26,296,304	27,512,057
Diluted (in shares)	26,028,456	27,508,217	26,327,606	27,522,734
Comprehensive Income (Loss) (net of tax)
Comprehensive income (loss)	$ 6,887	$ (6,924)	$ 14,297	$ (18,604)

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Loss
Beginning balance (in shares) at Dec. 31, 2021		27,465,945
Beginning balance at Dec. 31, 2021	$ 828,493	$ 28	$ 468,548	$ 376,734	$ (16,817)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common shares issued on exercise of options and other, net of shares withheld for tax obligations (in shares)		27,716
Common shares issued on exercise of options and other, net of shares withheld for tax obligations	(462)		(462)
Stock-based compensation expense	4,397		4,397
Net income	5,095			5,095
Other comprehensive income (loss)
Foreign currency translation adjustment	(4,972)				(4,972)
Net unrealized gains (losses) on investments in securities	(516)				(516)
Comprehensive income	(393)
Ending balance (in shares) at Mar. 31, 2022		27,493,661
Ending balance at Mar. 31, 2022	832,035	$ 28	472,483	381,829	(22,305)
Beginning balance (in shares) at Dec. 31, 2021		27,465,945
Beginning balance at Dec. 31, 2021	828,493	$ 28	468,548	376,734	(16,817)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	11,603
Other comprehensive income (loss)
Comprehensive income	(18,604)
Ending balance (in shares) at Sep. 30, 2022		27,326,750
Ending balance at Sep. 30, 2022	810,846	$ 28	477,107	380,735	(47,024)
Beginning balance (in shares) at Mar. 31, 2022		27,493,661
Beginning balance at Mar. 31, 2022	832,035	$ 28	472,483	381,829	(22,305)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common shares issued on exercise of options and other, net of shares withheld for tax obligations (in shares)		122,705
Common shares issued on exercise of options and other, net of shares withheld for tax obligations	1,158		1,158
Stock-based compensation expense	4,031		4,031
Repurchases of common stock and other (in shares)		(113,266)
Repurchases of common stock and other	(5,239)		(1,932)	(3,307)
Net income	2,557			2,557
Other comprehensive income (loss)
Foreign currency translation adjustment	(13,515)				(13,515)
Net unrealized gains (losses) on investments in securities	(329)				(329)
Comprehensive income	(11,287)
Ending balance (in shares) at Jun. 30, 2022		27,503,100
Ending balance at Jun. 30, 2022	820,698	$ 28	475,740	381,079	(36,149)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common shares issued on exercise of options and other, net of shares withheld for tax obligations (in shares)		31,150
Common shares issued on exercise of options and other, net of shares withheld for tax obligations	0		0
Stock-based compensation expense	4,907		4,907
Repurchases of common stock and other (in shares)		(207,500)
Repurchases of common stock and other	(7,835)		(3,540)	(4,295)
Net income	3,951			3,951
Other comprehensive income (loss)
Foreign currency translation adjustment	(10,287)				(10,287)
Net unrealized gains (losses) on investments in securities	(588)				(588)
Comprehensive income	(6,924)
Ending balance (in shares) at Sep. 30, 2022		27,326,750
Ending balance at Sep. 30, 2022	$ 810,846	$ 28	477,107	380,735	(47,024)
Beginning balance (in shares) at Dec. 31, 2022	26,888,425	26,888,425
Beginning balance at Dec. 31, 2022	$ 697,648	$ 27	473,740	258,236	(34,355)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common shares issued on exercise of options and other, net of shares withheld for tax obligations (in shares)		26,798
Common shares issued on exercise of options and other, net of shares withheld for tax obligations	(401)		(401)
Stock-based compensation expense	3,695		3,695
Repurchases of common stock and other (in shares)		(712,500)
Repurchases of common stock and other	(21,325)	$ (1)	(11,849)	(9,475)
Net income	2,659			2,659
Other comprehensive income (loss)
Foreign currency translation adjustment	527				527
Net unrealized gains (losses) on investments in securities	334				334
Comprehensive income	3,520
Ending balance (in shares) at Mar. 31, 2023		26,202,723
Ending balance at Mar. 31, 2023	$ 683,137	$ 26	465,185	251,420	(33,494)
Beginning balance (in shares) at Dec. 31, 2022	26,888,425	26,888,425
Beginning balance at Dec. 31, 2022	$ 697,648	$ 27	473,740	258,236	(34,355)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	10,230
Other comprehensive income (loss)
Comprehensive income	$ 14,297
Ending balance (in shares) at Sep. 30, 2023	25,785,903	25,785,903
Ending balance at Sep. 30, 2023	$ 684,922	$ 26	463,908	251,276	(30,288)
Beginning balance (in shares) at Mar. 31, 2023		26,202,723
Beginning balance at Mar. 31, 2023	683,137	$ 26	465,185	251,420	(33,494)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common shares issued on exercise of options and other, net of shares withheld for tax obligations (in shares)		169,229
Common shares issued on exercise of options and other, net of shares withheld for tax obligations	962		962
Stock-based compensation expense	3,675		3,675
Repurchases of common stock and other (in shares)		(276,518)
Repurchases of common stock and other	(8,979)		(4,872)	(4,107)
Net income	(383)			(383)
Other comprehensive income (loss)
Foreign currency translation adjustment	4,254				4,254
Net unrealized gains (losses) on investments in securities	19				19
Comprehensive income	3,890
Ending balance (in shares) at Jun. 30, 2023		26,095,434
Ending balance at Jun. 30, 2023	682,685	$ 26	464,950	246,930	(29,221)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common shares issued on exercise of options and other, net of shares withheld for tax obligations (in shares)		1,037
Common shares issued on exercise of options and other, net of shares withheld for tax obligations	(11)		(11)
Stock-based compensation expense	4,441		4,441
Repurchases of common stock and other (in shares)		(310,568)
Repurchases of common stock and other	(9,080)		(5,472)	(3,608)
Net income	7,954			7,954
Other comprehensive income (loss)
Foreign currency translation adjustment	(1,307)				(1,307)
Net unrealized gains (losses) on investments in securities	240				240
Comprehensive income	$ 6,887
Ending balance (in shares) at Sep. 30, 2023	25,785,903	25,785,903
Ending balance at Sep. 30, 2023	$ 684,922	$ 26	$ 463,908	$ 251,276	$ (30,288)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Operating activities
Net income	$ 10,230	$ 11,603
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	28,213	29,981
Stock-based compensation expense	11,811	13,335
Deferred taxes	(9,197)	(8,920)
Interest on finance lease obligations	859	0
Loss on foreign currency translation	3,906	0
Impairments related to closure of Japan business	0	2,842
Gain on disposal of property and equipment	(498)	(1,174)
Other	122	11
Changes in operating assets and liabilities:
Accounts receivable	(3,058)	(3,909)
Inventories	(150)	(1,613)
Prepaid expenses and other	4,127	(920)
Income taxes	4,693	670
Accounts payable	746	1,292
Accrued liabilities and other	4,242	8,366
Net cash provided by operating activities	56,046	51,564
Investing activities
Purchases of property, equipment and other capital assets	(9,935)	(16,414)
Proceeds from sales of property, equipment and other capital assets	693	3,227
Purchases of marketable securities	0	(45,872)
Proceeds from sales of marketable securities	0	1,998
Proceeds from call redemptions and maturities of marketable securities	19,115	13,696
Net cash provided by (used in) investing activities	9,873	(43,365)
Financing activities
Proceeds from exercises of stock options	1,986	2,311
Purchases of shares withheld for tax obligations	(1,436)	(1,615)
Repurchases of common stock	(39,053)	(13,074)
Principal repayments of finance lease obligations	(234)	(417)
Net cash used in financing activities	(38,737)	(12,795)
Effect of exchange rate changes on cash and cash equivalents	(244)	(1,972)
Net increase (decrease) in cash and cash equivalents	26,938	(6,568)
Cash and cash equivalents, beginning of period	56,558	65,929
Cash and cash equivalents, end of period	$ 83,496	$ 59,361

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The unaudited interim Consolidated Financial Statements of Proto Labs, Inc. (Protolabs, the Company, we, us or our) have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X . In the opinion of management, the accompanying financial statements reflect all adjustments necessary for a fair presentation of the Company’s statements of financial position, results of operations and cash flows for the periods presented. Except as otherwise disclosed herein, these adjustments consist of normal, recurring items. Operating results for interim periods are not necessarily indicative of results that may be expected for the fiscal year as a whole. The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and the related disclosures at the date of the financial statements and during the reporting period. Actual results could materially differ from these estimates. For further information, refer to the audited Consolidated Financial Statements and Notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the Securities and Exchange Commission (SEC) on February 21, 2023 . The accompanying Consolidated Balance Sheet as of December 31, 2022 was derived from the audited Consolidated Financial Statements but does not include all disclosures required by U.S. GAAP for a full set of financial statements. This Quarterly Report on Form 10-Q should be read in conjunction with the Company’s Consolidated Financial Statements and Notes included in the Company's Annual Report on Form 10-K filed on February 21, 2023 as referenced above.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
Recent Accounting Pronouncements	Recent Accounting PronouncementsThe Company did not recently adopt any accounting pronouncements that had a material impact on the Company's Consolidated Financial Statements. There are no pending accounting pronouncements that are expected to have a material impact on the Company's Consolidated Financial Statements.

Net Income per Common Share

Net Income per Common Share	9 Months Ended
	Sep. 30, 2023
Earnings Per Share [Abstract]
Net Income per Common Share	Net Income per Common Share Basic net income per share is computed based on the weighted-average number of common shares outstanding. Diluted net income per share is computed based on the weighted-average number of common shares outstanding, increased by the number of additional shares that would have been outstanding had potentially dilutive common shares been issued and reduced by the number of shares the Company could have repurchased from the proceeds from issuance of the potentially dilutive shares. Potentially dilutive shares of common stock include stock options and other stock-based awards granted under stock-based compensation plans and shares committed to be purchased under the employee stock purchase plan. Performance stock units are excluded from the calculation of dilutive potential common shares until the performance conditions have been satisfied. Anti-dilutive options were excluded from the calculation of diluted weighted average shares outstanding and were 393,592 and 210,443 for the three months ended September 30, 2023 and 2022 , respectively, and 372,353 and 202,901 for the nine months ended September 30, 2023 and 2022, respectively. The table below sets forth the computation of basic and diluted net (loss) income per share: Three Months Ended Nine Months Ended (in thousands, except share and per share amounts) 2023 2022 2023 2022 Net income $ 7,954 $ 3,951 $ 10,230 $ 11,603 Basic - weighted-average shares outstanding: 26,023,830 27,505,097 26,296,304 27,512,057 Effect of dilutive securities: Employee stock options and other 4,626 3,120 31,302 10,677 Diluted - weighted-average shares outstanding: 26,028,456 27,508,217 26,327,606 27,522,734 Net (loss) income per share: Basic $ 0.31 $ 0.14 $ 0.39 $ 0.42 Diluted $ 0.31 $ 0.14 $ 0.39 $ 0.42

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	9 Months Ended
	Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets There were no changes in the carrying amount of goodwill during the three and nine months ended September 30, 2023. Intangible assets other than goodwill at September 30, 2023 and December 31, 2022 were as follows: September 30, 2023 December 31, 2022 Useful Weighted Average (in thousands) Gross Accumulated Net Gross Accumulated Net Intangible assets with finite lives: Marketing assets $ 930 $ (876) $ 54 $ 930 $ (806) $ 124 10.0 0.6 Non-compete agreement 825 (569) 256 828 (487) 341 2.0 - 5.0 1.6 Software technology 13,229 (7,410) 5,819 13,229 (6,383) 6,846 10.0 4.3 Software platform 25,902 (5,928) 19,974 26,054 (4,337) 21,717 12.0 9.3 Tradenames 348 (312) 36 350 (227) 123 3.0 0.3 Customer relationships 12,185 (11,656) 529 12,197 (10,098) 2,099 3.0 - 9.0 0.2 Total intangible assets $ 53,419 $ (26,751) $ 26,668 $ 53,588 $ (22,338) $ 31,250 Intangible assets allocated to the acquired Hubs entities consisted of intangible assets of €11.6 million in Europe and $16.6 million in the United States as of the date of the acquisition. The Euro denominated intangible assets are translated at the end of each period using the current exchange rates resulting in a foreign currency translation adjustment that is recorded as a component of Other Comprehensive Income. Foreign currency losses related to intangible assets were $1.9 million and $1.7 million as of September 30, 2023 and December 31, 2022, respectively. Amortization expense for intangible assets was $1.5 million for each of the three months ended September 30, 2023 and 2022 and $4.5 million and $4.6 million for the nine months ended September 30, 2023 and 2022, respectively. Estimated aggregated amortization expense based on the current carrying value of the amortizable intangible assets and current exchange rates is as follows: (in thousands) Estimated Amortization Expense Remaining 2023 $ 1,432 2024 3,713 2025 3,619 2026 3,518 2027 3,509 Thereafter 10,877 Total estimated amortization expense $ 26,668

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Accounting Standards Codification, Fair Value Measuremen t (ASC 820), defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that requires classification based on observable and unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company's assets and liabilities that are required to be measured or disclosed at fair value on a recurring basis include cash and cash equivalents and marketable securities. The Company’s cash consists of bank deposits and cash equivalents consist primarily of money market mutual funds. The Company determines the fair value of these investments using Level 1 inputs. The Company's marketable securities consist of short-term and long-term agency, municipal, corporate and other debt securities. Fair value for the corporate debt securities is primarily determined based on quoted market prices (Level 1). Fair values for the U.S. municipal securities, U.S. government agency securities, certificates of deposit and U.S. treasury securities are primarily determined using dealer quotes or quoted market prices for similar securities (Level 2). The following table summarizes financial assets as of September 30, 2023 and December 31, 2022 measured at fair value on a recurring basis: September 30, 2023 December 31, 2022 (in thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Financial Assets: Cash $ 77,307 $ - $ - $ 38,862 $ - $ - Money market mutual fund 6,189 - - 17,696 - - Marketable securities 3,965 27,451 - 9,881 40,106 - Total $ 87,461 $ 27,451 $ - $ 66,439 $ 40,106 $ -

Marketable Securities

Marketable Securities	9 Months Ended
	Sep. 30, 2023
Investments, Debt and Equity Securities [Abstract]
Marketable Securities	Marketable Securities The Company invests in short-term and long-term agency, municipal, corporate and other debt securities. The securities are categorized as available-for-sale and are recorded at fair value. The following table summarizes information regarding the Company’s short-term and long-term marketable securities as of September 30, 2023 and December 31, 2022: September 30, 2023 (in thousands) Cost Unrealized Gains Unrealized Losses Fair Value U.S. municipal securities $ 8,629 $ - $ (209) $ 8,420 Corporate debt securities 2,530 - (54) 2,476 U.S. government agency securities 20,793 - (520) 20,273 Certificates of deposit/time deposits 249 - (2) 247 Total marketable securities $ 32,201 $ - $ (785) $ 31,416 December 31, 2022 (in thousands) Cost Unrealized Gains Unrealized Losses Fair Value U.S. municipal securities $ 15,574 $ - $ (417) $ 15,157 Corporate debt securities 9,578 - (205) 9,373 U.S. government agency securities 25,275 - (750) 24,525 Certificates of deposit/time deposits 939 - (7) 932 Total marketable securities $ 51,366 $ - $ (1,379) $ 49,987 Fair values for the corporate debt securities are primarily determined based on quoted market prices (Level 1). Fair values for the U.S. municipal securities, U.S. government agency securities, certificates of deposit and U.S. treasury securities are primarily determined using dealer quotes or quoted market prices for similar securities (Level 2). Classification of marketable securities as current or non-current is based upon the security’s maturity date as of the date of these financial statements. The September 30, 2023 balance of available-for-sale debt securities by contractual maturity is shown in the following table at fair value. Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties. (in thousands) September 30, Due in one year or less $ 19,204 Due after one year through five years 12,212 Total marketable securities $ 31,416

Inventory

Inventory	9 Months Ended
	Sep. 30, 2023
Inventory Disclosure [Abstract]
Inventory	Inventory Inventory consists primarily of raw materials, which are recorded at the lower of cost and net realizable value using the standard cost method, which approximates first-in, first-out (FIFO) cost. The Company periodically reviews its inventory for slow-moving, damaged and discontinued items and provides allowances to reduce such items identified to their recoverable amounts. The Company’s inventory consisted of the following as of the dates indicated: (in thousands) September 30, December 31, Total inventory $ 14,435 $ 13,965 Allowance for obsolescence (632) (387) Inventory, net of allowance $ 13,803 $ 13,578

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation Under the Company’s 2012 Long-Term Incentive Plan, as amended (the 2012 Plan), the Company had the ability to grant stock options, stock appreciation rights (SARs), restricted stock, restricted stock units, other stock-based awards and cash incentive awards through February 23, 2022 . On July 8, 2022 , the board of directors approved the Proto Labs, Inc. 2022 Long-Term Incentive Plan (the 2022 Plan), which was approved by the Company's shareholders at a Special Meeting of Shareholders on August 29, 2022 . No awards were granted from February 23, 2022 to August 29, 2022 . Awards outstanding under the 2012 Plan as of August 29, 2022 will continue to be subject to the terms of the 2012 Plan, but if those awards subsequently expire, are forfeited or cancelled or are settled in cash, the shares subject to those awards will become available for awards under the 2022 Plan. Under the 2022 Plan, the Company has the ability to grant stock options, stock appreciation rights (SARs), restricted stock, restricted stock units, other stock-based awards and cash incentive awards. Awards under the 2022 Plan have a maximum term of ten years from the date of grant. The compensation committee may provide that the vesting or payment of any award will be subject to the attainment of specified performance measures in addition to the satisfaction of any continued service requirements and the compensation committee will determine whether such measures have been achieved. The per-share exercise price of stock options and SARs granted under the 2022 Plan generally may not be less than the fair market value of a share of our common stock on the date of the grant. Employee Stock Purchase Plan The Company’s 2012 Employee Stock Purchase Plan (ESPP) allows eligible employees to purchase a variable number of shares of the Company’s common stock each offering period at a discount through payroll deductions of up to 15 percent of their eligible compensation, subject to plan limitations. The ESPP provides for six-month offering periods with a single purchase period ending May 15 and November 15, respectively. At the end of each offering period, employees are able to purchase shares at 85 percent of the lower of the fair market value of the Company’s common stock on the first trading day of the offering period or on the last trading day of the offering period. Stock-Based Compensation Expense Stock-based compensation expense was $4.4 million and $4.9 million for the three months ended September 30, 2023 and 2022, respectively, and $11.8 million and $13.3 million for the nine months ended September 30, 2023 and 2022. Stock Options The following table summarizes stock option activity during the nine months ended September 30, 2023: Stock Options Weighted- Options outstanding at December 31, 2022 263,992 $ 79.07 Granted 186,804 33.36 Exercised - - Forfeited (46,619) 63.57 Expired (15,848) 55.67 Options outstanding at September 30, 2023 388,329 $ 59.90 Exercisable at September 30, 2023 121,083 $ 90.88 The outstanding options generally have a term of ten years. For employees, options granted become exercisable ratably over the vesting period, which is generally a period of four years, beginning on the first anniversary of the grant date, subject to the employee’s continuing service to the Company. The weighted-average grant date fair value of options that were granted during the nine months ended September 30, 2023 was $16.36. The following table provides the assumptions used in the Black-Scholes pricing model valuation of options during the nine months ended September 30, 2023 and 2022: Nine Months Ended September 30, 2023 2022 Risk-free interest rate 3.55% - 4.55% 1.94% - 3.40% Expected life (years) 2.00 - 6.25 6.25 Expected volatility 49.23% - 55.92% 45.95% - 46.03% Expected dividend yield 0% 0% As of September 30, 2023, there was $4.5 million of unrecognized compensation expense related to unvested stock options, which is expected to be recognized over a weighted-average period of 2.6 years. Restricted Stock Restricted stock awards are share-settled awards and restrictions lapse ratably over the vesting period, which is generally a period from three The following table summarizes restricted stock activity during the nine months ended September 30, 2023: Restricted Weighted- Restricted stock at December 31, 2022 478,596 $ 70.36 Granted 410,682 32.46 Restrictions lapsed (137,053) 79.61 Forfeited (78,769) 65.65 Restricted stock at September 30, 2023 673,456 $ 45.83 As of September 30, 2023, there was $22.0 million of unrecognized compensation expense related to non-vested restricted stock, which is expected to be recognized over a weighted-average period of 2.7 years. Performance Stock Performance stock units (PSUs) are expressed in terms of a target number of PSUs, with anywhere between 0 percent and 200 percent of that target number capable of being earned and vesting at the end of a three-year performance period depending on the Company’s performance in the final year of the performance period and the award recipient’s continued employment. Certain PSUs granted by the Company in 2021 are based on performance conditions and the related compensation cost is based on the probability that the performance conditions will be achieved. The Company’s PSUs granted in 2020, 2022, 2023 and certain PSUs granted in 2021 are based on market conditions and the related compensation cost is based on the fair value at grant date calculated using a Monte Carlo pricing model. The following table summarizes performance stock activity during the nine months ended September 30, 2023: Performance Weighted- Performance stock at December 31, 2022 35,802 $ 77.91 Granted 71,295 57.79 Restrictions lapsed - - Performance change - - Forfeited - - Performance stock at September 30, 2023 107,097 $ 74.08 The following table provides the assumptions used in the Monte Carlo pricing model valuation of PSUs during the nine months ended September 30, 2023 and 2022: Nine Months Ended 2023 2022 Risk-free interest rate 4.35% 1.76% - 3.40% Expected life (years) 2.88 2.34 - 2.87 Expected volatility 58.00% 53.50% - 53.60% Expected dividend yield 0% 0% As of September 30, 2023, there was $4.8 million of unrecognized compensation expense related to non-vested performance stock, which is expected to be recognized over a weighted-average period of 2.0 years. Employee Stock Purchase Plan The following table presents the assumptions used to estimate the fair value of the ESPP during the nine months ended September 30, 2023 and 2022: Nine Months Ended 2023 2022 Risk-free interest rate 4.60 - 4.82% 0.17 - 2.06% Expected life (months) 6.00 6.00 Expected volatility 47.38 - 67.84% 47.05 - 53.44% Expected dividend yield 0% 0%

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	9 Months Ended
	Sep. 30, 2023
Regulated Operations [Abstract]
Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss) Other comprehensive income (loss) is comprised of foreign currency translation adjustments and net unrealized gains (losses) on investments in securities. During the nine months ended September 30, 2023 we recognized a $3.9 million foreign currency translation loss from the substantial completion on the closure of our Japan business. The following table presents the changes in accumulated other comprehensive income (loss) balances during the three and nine months ended September 30, 2023 and 2022: Three Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 Balance at beginning of period $ (29,221) $ (36,149) $ (34,355) $ (16,817) Foreign currency translation adjustments Other comprehensive income (loss) before reclassifications (1,307) (10,287) (432) (28,774) Amounts reclassified from accumulated other comprehensive loss - - 3,906 - Net current-period other comprehensive income (loss) (1,307) (10,287) 3,474 (28,774) Net unrealized gains (losses) on investments in securities Other comprehensive income (loss) before reclassifications 240 (588) 593 (1,433) Amounts reclassified from accumulated other comprehensive loss - - - - Net current-period other comprehensive income (loss) 240 (588) 593 (1,433) Balance at end of period $ (30,288) $ (47,024) $ (30,288) $ (47,024)

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company is subject to income tax in multiple jurisdictions and the use of estimates is required to determine the provision for income taxes. For the three months ended September 30, 2023 and 2022, the Company recorded an income tax provision of $2.8 million and $2.1 million, respectively. For the nine months ended September 30, 2023 and 2022, the Company recorded an income tax provision of $7.8 million and $7.2 million, respectively. The income tax provision is based on the estimated annual effective tax rate for the year applied to pre-tax income. The effective income tax rate for the three months ended September 30, 2023 was 25.9 percent compared to 34.5 percent in the same period of the prior year. The effective tax rate decreased by 8.6 percent for the three months ended September 30, 2023 when compared to the same period in 2022, primarily due to a decrease in losses in jurisdictions that are not eligible for tax benefits due to valuation allowances. Th e effective income tax rate for the nine months ended September 30, 2023 was 43.2 percent compared to 38.4 percent in the same period of the prior year. The effective tax rate increased by 4.8 percent for the nine months ended September 30, 2023 when compared to the same period in 2022, primarily due to the tax impact of the foreign currency translation loss from the substantial completion on the closure of our Japan business. The effective income tax rate for the three and nine months ended September 30, 2023 differs from the U.S. federal statutory rate of 21.0 percent due to various factors, including operating in multiple state and foreign jurisdictions and tax credits for which the Company qualifies.

Segment Reporting

Segment Reporting	9 Months Ended
	Sep. 30, 2023
Segment Reporting [Abstract]
Segment Reporting	Segment Reporting The Company’s reportable segments are based on the internal reporting used by the Company’s Chief Executive Officer, who is the chief operating decision maker (CODM), to assess operating performance and make decisions about the allocation of resources. The Corporate Unallocated and Japan category includes non-reportable segments, as well as research and development and general and administrative costs, that the Company does not allocate directly to its operating segments. Intercompany transactions primarily relate to intercontinental activity and have been eliminated and are excluded from the reported amounts. The difference between income from operations and pre-tax income relates to foreign currency-related gains and losses and interest income on cash balances and investments, which are not allocated to business segments. Revenue and income from operations by reportable segment for the three and nine months ended September 30, 2023 and 2022 were as follows: Three Months Ended Nine Months Ended (dollars in thousands) 2023 2022 2023 2022 Revenue: United States $ 103,940 $ 98,970 $ 298,007 $ 295,121 Europe 26,765 21,464 80,822 69,441 Japan - 1,287 - 8,229 Total revenue $ 130,705 $ 121,721 $ 378,829 $ 372,791 Three Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 Income (Loss) from Operations: United States $ 27,178 $ 25,293 $ 69,713 $ 73,984 Europe (3,006) (3,581) (8,870) (7,509) Corporate Unallocated and Japan (13,757) (15,654) (41,071) (47,326) Total Income from Operations $ 10,415 $ 6,058 $ 19,772 $ 19,149 Total long-lived assets at September 30, 2023 and December 31, 2022 were as follows: (in thousands) September 30, December 31, Total long-lived assets: United States $ 190,927 $ 203,816 Europe 52,095 53,835 Japan - 134 Total Long-lived Assets $ 243,022 $ 257,785 Revenue by product line for the three and nine months ended September 30, 2023 and 2022 were as follows: Three Months Ended Nine Months Ended (dollars in thousands) 2023 2022 2023 2022 Revenue: Injection Molding $ 51,688 $ 48,940 $ 152,455 $ 155,693 CNC Machining 52,916 47,489 149,317 141,809 3D Printing 21,622 19,823 63,952 59,458 Sheet Metal 4,291 5,219 12,478 15,066 Other Revenue 188 250 627 765 Total Revenue $ 130,705 $ 121,721 $ 378,829 $ 372,791

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure
Net income	$ 7,954	$ (383)	$ 2,659	$ 3,951	$ 2,557	$ 5,095	$ 10,230	$ 11,603

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Net Income per Common Share (Ta

Net Income per Common Share (Tables)	9 Months Ended
	Sep. 30, 2023
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The table below sets forth the computation of basic and diluted net (loss) income per share: Three Months Ended Nine Months Ended (in thousands, except share and per share amounts) 2023 2022 2023 2022 Net income $ 7,954 $ 3,951 $ 10,230 $ 11,603 Basic - weighted-average shares outstanding: 26,023,830 27,505,097 26,296,304 27,512,057 Effect of dilutive securities: Employee stock options and other 4,626 3,120 31,302 10,677 Diluted - weighted-average shares outstanding: 26,028,456 27,508,217 26,327,606 27,522,734 Net (loss) income per share: Basic $ 0.31 $ 0.14 $ 0.39 $ 0.42 Diluted $ 0.31 $ 0.14 $ 0.39 $ 0.42

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived Intangible Assets	Intangible assets other than goodwill at September 30, 2023 and December 31, 2022 were as follows: September 30, 2023 December 31, 2022 Useful Weighted Average (in thousands) Gross Accumulated Net Gross Accumulated Net Intangible assets with finite lives: Marketing assets $ 930 $ (876) $ 54 $ 930 $ (806) $ 124 10.0 0.6 Non-compete agreement 825 (569) 256 828 (487) 341 2.0 - 5.0 1.6 Software technology 13,229 (7,410) 5,819 13,229 (6,383) 6,846 10.0 4.3 Software platform 25,902 (5,928) 19,974 26,054 (4,337) 21,717 12.0 9.3 Tradenames 348 (312) 36 350 (227) 123 3.0 0.3 Customer relationships 12,185 (11,656) 529 12,197 (10,098) 2,099 3.0 - 9.0 0.2 Total intangible assets $ 53,419 $ (26,751) $ 26,668 $ 53,588 $ (22,338) $ 31,250
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	Estimated aggregated amortization expense based on the current carrying value of the amortizable intangible assets and current exchange rates is as follows: (in thousands) Estimated Amortization Expense Remaining 2023 $ 1,432 2024 3,713 2025 3,619 2026 3,518 2027 3,509 Thereafter 10,877 Total estimated amortization expense $ 26,668

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2023
Fair Value Disclosures [Abstract]
Fair Value, Assets Measured on Recurring Basis	The following table summarizes financial assets as of September 30, 2023 and December 31, 2022 measured at fair value on a recurring basis: September 30, 2023 December 31, 2022 (in thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Financial Assets: Cash $ 77,307 $ - $ - $ 38,862 $ - $ - Money market mutual fund 6,189 - - 17,696 - - Marketable securities 3,965 27,451 - 9,881 40,106 - Total $ 87,461 $ 27,451 $ - $ 66,439 $ 40,106 $ -

Marketable Securities (Tables)

Marketable Securities (Tables)	9 Months Ended
	Sep. 30, 2023
Investments, Debt and Equity Securities [Abstract]
Debt Securities, Available-for-Sale	The following table summarizes information regarding the Company’s short-term and long-term marketable securities as of September 30, 2023 and December 31, 2022: September 30, 2023 (in thousands) Cost Unrealized Gains Unrealized Losses Fair Value U.S. municipal securities $ 8,629 $ - $ (209) $ 8,420 Corporate debt securities 2,530 - (54) 2,476 U.S. government agency securities 20,793 - (520) 20,273 Certificates of deposit/time deposits 249 - (2) 247 Total marketable securities $ 32,201 $ - $ (785) $ 31,416 December 31, 2022 (in thousands) Cost Unrealized Gains Unrealized Losses Fair Value U.S. municipal securities $ 15,574 $ - $ (417) $ 15,157 Corporate debt securities 9,578 - (205) 9,373 U.S. government agency securities 25,275 - (750) 24,525 Certificates of deposit/time deposits 939 - (7) 932 Total marketable securities $ 51,366 $ - $ (1,379) $ 49,987
Investments Classified by Contractual Maturity Date	The September 30, 2023 balance of available-for-sale debt securities by contractual maturity is shown in the following table at fair value. Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties. (in thousands) September 30, Due in one year or less $ 19,204 Due after one year through five years 12,212 Total marketable securities $ 31,416

Inventory (Tables)

Inventory (Tables)	9 Months Ended
	Sep. 30, 2023
Inventory Disclosure [Abstract]
Schedule of Inventory, Current	The Company’s inventory consisted of the following as of the dates indicated: (in thousands) September 30, December 31, Total inventory $ 14,435 $ 13,965 Allowance for obsolescence (632) (387) Inventory, net of allowance $ 13,803 $ 13,578

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]
Share-Based Payment Arrangement, Option, Activity	The following table summarizes stock option activity during the nine months ended September 30, 2023: Stock Options Weighted- Options outstanding at December 31, 2022 263,992 $ 79.07 Granted 186,804 33.36 Exercised - - Forfeited (46,619) 63.57 Expired (15,848) 55.67 Options outstanding at September 30, 2023 388,329 $ 59.90 Exercisable at September 30, 2023 121,083 $ 90.88
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions	The following table provides the assumptions used in the Black-Scholes pricing model valuation of options during the nine months ended September 30, 2023 and 2022: Nine Months Ended September 30, 2023 2022 Risk-free interest rate 3.55% - 4.55% 1.94% - 3.40% Expected life (years) 2.00 - 6.25 6.25 Expected volatility 49.23% - 55.92% 45.95% - 46.03% Expected dividend yield 0% 0%
Share-Based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity	The following table summarizes restricted stock activity during the nine months ended September 30, 2023: Restricted Weighted- Restricted stock at December 31, 2022 478,596 $ 70.36 Granted 410,682 32.46 Restrictions lapsed (137,053) 79.61 Forfeited (78,769) 65.65 Restricted stock at September 30, 2023 673,456 $ 45.83
Schedule of Nonvested Performance-Based Units Activity	The following table summarizes performance stock activity during the nine months ended September 30, 2023: Performance Weighted- Performance stock at December 31, 2022 35,802 $ 77.91 Granted 71,295 57.79 Restrictions lapsed - - Performance change - - Forfeited - - Performance stock at September 30, 2023 107,097 $ 74.08
Schedule of Share-based Payment Award, Awards Other Than Stock Options, Valuation Assumptions	The following table provides the assumptions used in the Monte Carlo pricing model valuation of PSUs during the nine months ended September 30, 2023 and 2022: Nine Months Ended 2023 2022 Risk-free interest rate 4.35% 1.76% - 3.40% Expected life (years) 2.88 2.34 - 2.87 Expected volatility 58.00% 53.50% - 53.60% Expected dividend yield 0% 0%
Schedule of Share-Based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions	The following table presents the assumptions used to estimate the fair value of the ESPP during the nine months ended September 30, 2023 and 2022: Nine Months Ended 2023 2022 Risk-free interest rate 4.60 - 4.82% 0.17 - 2.06% Expected life (months) 6.00 6.00 Expected volatility 47.38 - 67.84% 47.05 - 53.44% Expected dividend yield 0% 0%

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) (Tables)	9 Months Ended
	Sep. 30, 2023
Regulated Operations [Abstract]
Comprehensive Income (Loss)	The following table presents the changes in accumulated other comprehensive income (loss) balances during the three and nine months ended September 30, 2023 and 2022: Three Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 Balance at beginning of period $ (29,221) $ (36,149) $ (34,355) $ (16,817) Foreign currency translation adjustments Other comprehensive income (loss) before reclassifications (1,307) (10,287) (432) (28,774) Amounts reclassified from accumulated other comprehensive loss - - 3,906 - Net current-period other comprehensive income (loss) (1,307) (10,287) 3,474 (28,774) Net unrealized gains (losses) on investments in securities Other comprehensive income (loss) before reclassifications 240 (588) 593 (1,433) Amounts reclassified from accumulated other comprehensive loss - - - - Net current-period other comprehensive income (loss) 240 (588) 593 (1,433) Balance at end of period $ (30,288) $ (47,024) $ (30,288) $ (47,024)

Segment Reporting (Tables)

Segment Reporting (Tables)	9 Months Ended
	Sep. 30, 2023
Segment Reporting [Abstract]
Revenue from External Customers by Geographic Areas	Revenue and income from operations by reportable segment for the three and nine months ended September 30, 2023 and 2022 were as follows: Three Months Ended Nine Months Ended (dollars in thousands) 2023 2022 2023 2022 Revenue: United States $ 103,940 $ 98,970 $ 298,007 $ 295,121 Europe 26,765 21,464 80,822 69,441 Japan - 1,287 - 8,229 Total revenue $ 130,705 $ 121,721 $ 378,829 $ 372,791
Income from Operations by Geographic Area	Three Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 Income (Loss) from Operations: United States $ 27,178 $ 25,293 $ 69,713 $ 73,984 Europe (3,006) (3,581) (8,870) (7,509) Corporate Unallocated and Japan (13,757) (15,654) (41,071) (47,326) Total Income from Operations $ 10,415 $ 6,058 $ 19,772 $ 19,149
Long-Lived Assets by Geographic Areas	Total long-lived assets at September 30, 2023 and December 31, 2022 were as follows: (in thousands) September 30, December 31, Total long-lived assets: United States $ 190,927 $ 203,816 Europe 52,095 53,835 Japan - 134 Total Long-lived Assets $ 243,022 $ 257,785
Disaggregation of Revenue	Revenue by product line for the three and nine months ended September 30, 2023 and 2022 were as follows: Three Months Ended Nine Months Ended (dollars in thousands) 2023 2022 2023 2022 Revenue: Injection Molding $ 51,688 $ 48,940 $ 152,455 $ 155,693 CNC Machining 52,916 47,489 149,317 141,809 3D Printing 21,622 19,823 63,952 59,458 Sheet Metal 4,291 5,219 12,478 15,066 Other Revenue 188 250 627 765 Total Revenue $ 130,705 $ 121,721 $ 378,829 $ 372,791

Net Income per Common Share - N

Net Income per Common Share - Narrative (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Earnings Per Share [Abstract]
Anti-dilutive options excluded from calculation of diluted weighted average shares outstanding (in shares)	393,592	210,443	372,353	202,901

Net Income per Common Share -Sc

Net Income per Common Share -Schedule of Computation Of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Earnings Per Share [Abstract]
Net income	$ 7,954	$ (383)	$ 2,659	$ 3,951	$ 2,557	$ 5,095	$ 10,230	$ 11,603
Basic - weighted-average shares outstanding (in shares)	26,023,830			27,505,097			26,296,304	27,512,057
Effect of dilutive securities:
Employee stock options and other (in shares)	4,626			3,120			31,302	10,677
Diluted - weighted-average shares outstanding (in shares)	26,028,456			27,508,217			26,327,606	27,522,734
Net (loss) income per share:
Basic (in dollars per share)	$ 0.31			$ 0.14			$ 0.39	$ 0.42
Diluted (in dollars per share)	$ 0.31			$ 0.14			$ 0.39	$ 0.42
Anti-dilutive options excluded from calculation of diluted weighted average shares outstanding (in shares)	393,592			210,443			372,353	202,901

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets - Schedule of Intangible Assets Other Than Goodwill (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Acquired Finite-Lived Intangible Assets [Line Items]
Gross	$ 53,419	$ 53,588
Accumulated Amortization	(26,751)	(22,338)
Net	26,668	31,250
Marketing assets
Acquired Finite-Lived Intangible Assets [Line Items]
Gross	930	930
Accumulated Amortization	(876)	(806)
Net	$ 54	124
Useful Life (in years)	10 years
Weighted Average Useful Life Remaining (in years)	7 months 6 days
Non-compete agreement
Acquired Finite-Lived Intangible Assets [Line Items]
Gross	$ 825	828
Accumulated Amortization	(569)	(487)
Net	$ 256	341
Weighted Average Useful Life Remaining (in years)	1 year 7 months 6 days
Non-compete agreement | Minimum
Acquired Finite-Lived Intangible Assets [Line Items]
Useful Life (in years)	2 years
Non-compete agreement | Maximum
Acquired Finite-Lived Intangible Assets [Line Items]
Useful Life (in years)	5 years
Software technology
Acquired Finite-Lived Intangible Assets [Line Items]
Gross	$ 13,229	13,229
Accumulated Amortization	(7,410)	(6,383)
Net	$ 5,819	6,846
Useful Life (in years)	10 years
Weighted Average Useful Life Remaining (in years)	4 years 3 months 18 days
Software platform
Acquired Finite-Lived Intangible Assets [Line Items]
Gross	$ 25,902	26,054
Accumulated Amortization	(5,928)	(4,337)
Net	$ 19,974	21,717
Useful Life (in years)	12 years
Weighted Average Useful Life Remaining (in years)	9 years 3 months 18 days
Tradenames
Acquired Finite-Lived Intangible Assets [Line Items]
Gross	$ 348	350
Accumulated Amortization	(312)	(227)
Net	$ 36	123
Useful Life (in years)	3 years
Weighted Average Useful Life Remaining (in years)	3 months 18 days
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Gross	$ 12,185	12,197
Accumulated Amortization	(11,656)	(10,098)
Net	$ 529	$ 2,099
Weighted Average Useful Life Remaining (in years)	2 months 12 days
Customer relationships | Minimum
Acquired Finite-Lived Intangible Assets [Line Items]
Useful Life (in years)	3 years
Customer relationships | Maximum
Acquired Finite-Lived Intangible Assets [Line Items]
Useful Life (in years)	9 years

Goodwill and Other Intangible_4

Goodwill and Other Intangible Assets - Narrative (Details) € in Millions, $ in Millions			3 Months Ended		9 Months Ended		12 Months Ended
	Jan. 22, 2021 EUR (€)	Jan. 22, 2021 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]
Foreign currency losses					$ 1.9		$ 1.7
Amortization expense for intangible assets			$ 1.5	$ 1.5	$ 4.5	$ 4.6
UNITED STATES | Acquired 3D Hubs
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired		$ 16.6
Europe | Acquired 3D Hubs
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired | €	€ 11.6

Goodwill and Other Intangible_5

Goodwill and Other Intangible Assets - Future Amortization Expense (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Remaining 2023	$ 1,432
2024	3,713
2025	3,619
2026	3,518
2027	3,509
Thereafter	10,877
Net	$ 26,668	$ 31,250

Fair Value Measurements - Finan

Fair Value Measurements - Financial Assets Measured At Fair Value On A Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Financial Assets:
Debt securities, available-for-sale	$ 31,416	$ 49,987
Level 1 | Fair Value, Recurring
Financial Assets:
Debt securities, available-for-sale	3,965	9,881
Total	87,461	66,439
Level 2 | Fair Value, Recurring
Financial Assets:
Debt securities, available-for-sale	27,451	40,106
Total	27,451	40,106
Level 3 | Fair Value, Recurring
Financial Assets:
Debt securities, available-for-sale	0	0
Total	0	0
Cash | Level 1 | Fair Value, Recurring
Financial Assets:
Cash and cash equivalents	77,307	38,862
Cash | Level 2 | Fair Value, Recurring
Financial Assets:
Cash and cash equivalents	0	0
Cash | Level 3 | Fair Value, Recurring
Financial Assets:
Cash and cash equivalents	0	0
Money market mutual fund | Level 1 | Fair Value, Recurring
Financial Assets:
Cash and cash equivalents	6,189	17,696
Money market mutual fund | Level 2 | Fair Value, Recurring
Financial Assets:
Cash and cash equivalents	0	0
Money market mutual fund | Level 3 | Fair Value, Recurring
Financial Assets:
Cash and cash equivalents	$ 0	$ 0

Marketable Securities - Short-T

Marketable Securities - Short-Term and Long-Term Marketable Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Debt Securities, Available-for-Sale [Line Items]
Cost	$ 32,201	$ 51,366
Unrealized Gains	0	0
Unrealized Losses	(785)	(1,379)
Fair Value	31,416	49,987
U.S. municipal securities
Debt Securities, Available-for-Sale [Line Items]
Cost	8,629	15,574
Unrealized Gains	0	0
Unrealized Losses	(209)	(417)
Fair Value	8,420	15,157
Corporate debt securities
Debt Securities, Available-for-Sale [Line Items]
Cost	2,530	9,578
Unrealized Gains	0	0
Unrealized Losses	(54)	(205)
Fair Value	2,476	9,373
U.S. government agency securities
Debt Securities, Available-for-Sale [Line Items]
Cost	20,793	25,275
Unrealized Gains	0	0
Unrealized Losses	(520)	(750)
Fair Value	20,273	24,525
Certificates of deposit/time deposits
Debt Securities, Available-for-Sale [Line Items]
Cost	249	939
Unrealized Gains	0	0
Unrealized Losses	(2)	(7)
Fair Value	$ 247	$ 932

Marketable Securities - Maturit

Marketable Securities - Maturities of Available-For-Sale Debt Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Debt Securities, Available-for-Sale, Fair Value, Fiscal Year Maturity [Abstract]
Due in one year or less	$ 19,204
Due after one year through five years	12,212
Total marketable securities	$ 31,416	$ 49,987

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Total inventory	$ 14,435	$ 13,965
Allowance for obsolescence	(632)	(387)
Inventory, net of allowance	$ 13,803	$ 13,578

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Aug. 29, 2022	Sep. 30, 2023	Sep. 30, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based compensation expense	$ 4.4	$ 4.9		$ 11.8	$ 13.3
Stock-based award, weighted-average grant date fair value (in dollars per share)				$ 16.36
ESPP
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Discount from market price (in percent)				15%
Offering period (in months)				6 months
Purchase price of common stock (in percent)				85%
Stock Options
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based award, term (in years)				10 years
Stock-based award, vesting period (in years)				4 years
Stock based award, unrecognized compensation expense	4.5			$ 4.5
Stock based award, unrecognized compensation expense, period for recognition (in years)				2 years 7 months 6 days
Restricted Stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Awards granted in period (in shares)				410,682
Stock based award, unrecognized compensation expense	22			$ 22
Stock based award, unrecognized compensation expense, period for recognition (in years)				2 years 8 months 12 days
Restricted Stock | Minimum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based award, vesting period (in years)				3 years
Restricted Stock | Maximum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based award, vesting period (in years)				4 years
Performance Shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Awards granted in period (in shares)				71,295
Stock-based award, vesting period (in years)				3 years
Stock based award, unrecognized compensation expense	$ 4.8			$ 4.8
Stock based award, unrecognized compensation expense, period for recognition (in years)				2 years
Percentage of target, capable of being earned and vesting, lower limit	0%			0%
Percentage of target, capable of being earned and vesting, upper limit	200%			200%
Long-Term Incentive Plan 2012
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Awards granted in period (in shares)			0
Stock-based award, term (in years)				10 years

Stock-Based Compensation - Opti

Stock-Based Compensation - Option Activity (Details)	9 Months Ended
	Sep. 30, 2023 $ / shares shares
Stock Options
Options outstanding, beginning balance (in shares) | shares	263,992
Granted (in shares) | shares	186,804
Exercised (in shares) | shares	0
Forfeited (in shares) | shares	(46,619)
Expired (in shares) | shares	(15,848)
Options outstanding, ending balance (in shares) | shares	388,329
Weighted- Average Exercise Price
Options outstanding, beginning balance, weighted-average exercise price (in dollars per share) | $ / shares	$ 79.07
Granted, weighted-average exercise price (in dollars per share) | $ / shares	33.36
Exercised, weighted-average exercise price (in dollars per share) | $ / shares	0
Forfeited, weighted-average exercise price (in dollars per share) | $ / shares	63.57
Expired, weighted-average exercise price (in dollars per share) | $ / shares	55.67
Options outstanding, ending balance, weighted-average exercise price (in dollars per share) | $ / shares	$ 59.90
Additional Disclosures
Option exercisable (in shares) | shares	121,083
Options exercisable, weighted-average exercise price (in dollars per share) | $ / shares	$ 90.88

Stock-Based Compensation - Weig

Stock-Based Compensation - Weighted Average Assumptions (Details)	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Employee Stock Purchase Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected life (years)	6 years	6 years
Expected dividend yield	0%	0%
Stock Options
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected life (years)		6 years 3 months
Expected dividend yield	0%	0%
Performance Shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Risk-free interest rate	4.35%
Expected life (years)	2 years 10 months 17 days
Expected volatility	58%
Expected dividend yield	0%	0%
Minimum | Employee Stock Purchase Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Risk-free interest rate	4.60%	0.17%
Expected volatility	47.38%	47.05%
Minimum | Stock Options
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Risk-free interest rate	3.55%	1.94%
Expected life (years)	2 years
Expected volatility	49.23%	45.95%
Minimum | Performance Shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Risk-free interest rate		1.76%
Expected life (years)		2 years 4 months 2 days
Expected volatility		53.50%
Maximum | Employee Stock Purchase Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Risk-free interest rate	4.82%	2.06%
Expected volatility	67.84%	53.44%
Maximum | Stock Options
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Risk-free interest rate	4.55%	3.40%
Expected life (years)	6 years 3 months
Expected volatility	55.92%	46.03%
Maximum | Performance Shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Risk-free interest rate		3.40%
Expected life (years)		2 years 10 months 13 days
Expected volatility		53.60%

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock Activity (Details)	9 Months Ended
	Sep. 30, 2023 $ / shares shares
Restricted Stock
Stock
Beginning balance (in shares) | shares	478,596
Granted (in shares) | shares	410,682
Restrictions lapsed (in shares) | shares	(137,053)
Forfeited (in shares) | shares	(78,769)
Ending balance (in shares) | shares	673,456
Weighted- Average Grant Date Fair Value Per Share
Beginning balance, weighted-average grant date fair value (in dollars per share) | $ / shares	$ 70.36
Granted, weighted-average grant date fair value (in dollars per share) | $ / shares	32.46
Restrictions lapsed, weighted-average grant date fair value (in dollars per share) | $ / shares	79.61
Forfeited, weighted-average grant date fair value (in dollars per share) | $ / shares	65.65
Ending balance, weighted-average grant date fair value (in dollars per share) | $ / shares	$ 45.83
Performance Shares
Stock
Beginning balance (in shares) | shares	35,802
Granted (in shares) | shares	71,295
Restrictions lapsed (in shares) | shares	0
Performance change (in shares) | shares	0
Forfeited (in shares) | shares	0
Ending balance (in shares) | shares	107,097
Weighted- Average Grant Date Fair Value Per Share
Beginning balance, weighted-average grant date fair value (in dollars per share) | $ / shares	$ 77.91
Granted, weighted-average grant date fair value (in dollars per share) | $ / shares	57.79
Restrictions lapsed, weighted-average grant date fair value (in dollars per share) | $ / shares	0
Performance change, weighted-average grant date fair value (in dollars per share) | $ / shares	0
Forfeited, weighted-average grant date fair value (in dollars per share) | $ / shares	0
Ending balance, weighted-average grant date fair value (in dollars per share) | $ / shares	$ 74.08

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Foreign currency translation adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified from accumulated other comprehensive loss	$ 0	$ 0	$ 3,906	$ 0

Accumulated Other Comprehensi_4

Accumulated Other Comprehensive Income (Loss) - Changes In Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ 682,685	$ 820,698	$ 697,648	$ 828,493
Ending balance	684,922	810,846	684,922	810,846
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(29,221)	(36,149)	(34,355)	(16,817)
Ending balance	(30,288)	(47,024)	(30,288)	(47,024)
Foreign currency translation adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss) before reclassifications	(1,307)	(10,287)	(432)	(28,774)
Amounts reclassified from accumulated other comprehensive loss	0	0	3,906	0
Net current-period other comprehensive income (loss)	(1,307)	(10,287)	3,474	(28,774)
Net unrealized gains (losses) on investments in securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss) before reclassifications	240	(588)	593	(1,433)
Amounts reclassified from accumulated other comprehensive loss	0	0	0	0
Net current-period other comprehensive income (loss)	$ 240	$ (588)	$ 593	$ (1,433)

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 2,781	$ 2,083	$ 7,784	$ 7,223
Effective income tax rate (in percent)	25.90%	34.50%	43.20%	38.40%
Effective income tax rate, increase (decrease) during period (in percent)	(8.60%)		4.80%
Federal statutory rate (in percent)	21%		21%
Unrecognized tax benefits	$ 3,900		$ 3,900		$ 3,200

Segment Reporting - Revenue by

Segment Reporting - Revenue by Geographic Areas (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Segment Reporting Information [Line Items]
Total revenue	$ 130,705	$ 121,721	$ 378,829	$ 372,791
Operating Segments
Segment Reporting Information [Line Items]
Total revenue	130,705	121,721	378,829	372,791
Operating Segments | United States
Segment Reporting Information [Line Items]
Total revenue	103,940	98,970	298,007	295,121
Operating Segments | Europe
Segment Reporting Information [Line Items]
Total revenue	26,765	21,464	80,822	69,441
Operating Segments | Japan
Segment Reporting Information [Line Items]
Total revenue	$ 0	$ 1,287	$ 0	$ 8,229

Segment Reporting - Income From

Segment Reporting - Income From Operation by Geographic Areas (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Segment Reporting Information [Line Items]
Total Income from Operations	$ 10,415	$ 6,058	$ 19,772	$ 19,149
Operating Segments
Segment Reporting Information [Line Items]
Total Income from Operations	10,415	6,058	19,772	19,149
Operating Segments | United States
Segment Reporting Information [Line Items]
Total Income from Operations	27,178	25,293	69,713	73,984
Operating Segments | Europe
Segment Reporting Information [Line Items]
Total Income from Operations	(3,006)	(3,581)	(8,870)	(7,509)
Operating Segments | Corporate Unallocated and Japan
Segment Reporting Information [Line Items]
Total Income from Operations	$ (13,757)	$ (15,654)	$ (41,071)	$ (47,326)

Segment Reporting - Long-Lived

Segment Reporting - Long-Lived Assets by Geographic Areas (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Segment Reporting Information [Line Items]
Total Long-lived Assets	$ 243,022	$ 257,785
Operating Segments
Segment Reporting Information [Line Items]
Total Long-lived Assets	243,022	257,785
Operating Segments | United States
Segment Reporting Information [Line Items]
Total Long-lived Assets	190,927	203,816
Operating Segments | Europe
Segment Reporting Information [Line Items]
Total Long-lived Assets	52,095	53,835
Operating Segments | Japan
Segment Reporting Information [Line Items]
Total Long-lived Assets	$ 0	$ 134

Segment Reporting - Disaggregat

Segment Reporting - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Segment Reporting Information [Line Items]
Total revenue	$ 130,705	$ 121,721	$ 378,829	$ 372,791
Injection Molding
Segment Reporting Information [Line Items]
Total revenue	51,688	48,940	152,455	155,693
CNC Machining
Segment Reporting Information [Line Items]
Total revenue	52,916	47,489	149,317	141,809
3D Printing
Segment Reporting Information [Line Items]
Total revenue	21,622	19,823	63,952	59,458
Sheet Metal
Segment Reporting Information [Line Items]
Total revenue	4,291	5,219	12,478	15,066
Other Revenue
Segment Reporting Information [Line Items]
Total revenue	$ 188	$ 250	$ 627	$ 765