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proto labs: why this ipo doubled

by:QY Precision      2019-10-11
Proto Labs (NYSE:PRLB)
It went public in late February and issued shares at $16, closing at $29 on the first day.
The stock is currently trading at about $33.
While Proto Labs may not be as sexy as Zynga or Yelp, it certainly has the next
The generation method of the business.
The company is basically reinventing the short board with Internet technology and innovation.
Operating prototype business.
The motto of the prototype lab is \"the real part, very fast.
\"As the success of companies like Apple has seen, product development requires tremendous speed and quality.
The best way to do this is to get a physical prototype of the parts and components.
3D design is not enough for successful product development.
\"We do most of our business with our customers through the Internet,\" said Brad Cleveland, CEO of Proto Labs . \".
\"We are trying to automate the process and eliminate the need for expensive labor.
\"Customers will first upload their 3D CAD files on the Proto Labs website, which will analyze the requirements and provide price quotes.
The system is smart enough to suggest better manufacturing methods and design modifications.
This process usually takes only a few minutes.
If the customer accepts the bid, then the Proto Labs system will create the product using the CNC machine.
This will cut the material into a specific shape and do the injection molding.
So what are the barriers to entry?
According to Cleveland, this is a common problem in his IPO roadshow.
We have 100 people.
Years of software technology, \"he said.
\"But a company does throw these questions to 10 to 20 programmers at MIT.
What makes us different is that we have more than 13 years working directly with our customers to make the system better.
We are constantly iterating.
\"In addition, software engineers at Proto labs work next door to the manufacturing plant.
There is no doubt that this is a major driver in improving the development process.
The company has been growing rapidly.
Revenue soared from $2007 to $35 in 2011.
$9 million to $98.
Operating income reached $26 at 9 million.
9 million last year.
It looks like the company is just catching the surface of the market opportunity.
According to research by Jon Pedi, there are 5 people in total.
By the end of 2009, 3D CAD software users reached 3 million.
Most of them may be developing products for a wide range of categories such as medical, electronic and mechanical.
Tom Taulliruns runs the investment blog IPOPlaybook, a website dedicated to the hottest news and rumors about the initial public offering.
He is also the author of the complete M & A Manual, everything about short selling and everything about goods.
Follow him on @ ttaulli\'s Twitter.
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