Key Financial Measures and Trends

? expanding the breadth and scope of our products by adding more sizes and

? the introduction of our 3D Printing product line through our acquisition of

? expanding 3D Printing to Europe through our acquisition of Alphaform in 2015?

? the introduction of our Sheet Metal product line through our acquisition of

? providing customers with on-demand access to a global network of premium

Cost of Revenue, Gross Profit and Gross Margin

Operating expenses consist of marketing and sales, research and development and general and administrative expenses. Personnel-related costs are the most significant component in each of these categories.

Stock-based compensation expense included in the statements of operations data above for the three and six months ended June 30, 2022 and 2021 were as follows:

Comparison of Three Months Ended June 30, 2022 and 2021

Revenue by reportable segment and the related changes for the three months ended June 30, 2022 and 2021 were as follows:

Revenue by product line and the related changes for the three months ended June 30, 2022 and 2021 were as follows:

Cost of Revenue, Gross Profit and Gross Margin

Operating Expenses, Other Income (Loss), net and Provision for Income Taxes

Changes in fair value of contingent consideration. We had no contingent consideration liabilities recorded during 2022. The change in fair value of contingent consideration associated with the acquisition of Hubs was $7.8 million during the three months ended June 30, 2021.

Comparison of Six Months Ended June 30, 2022 and 2021

Revenue by reportable segment and the related changes for the six months ended June 30, 2022 and 2021 were as follows:

Revenue by product line and the related changes for the six months ended June 30, 2022 and 2021 were as follows:

By product line, our revenue increase was driven by a 20.5% increase in CNC Machining revenue and an 11.9% increase in 3D Printing revenue, which was partially offset by a 6.8% decrease in Injection Molding revenue, a 0.9% decrease in Sheet Metal revenue and a 49.1% decrease in Other Revenue, in each case for the six months ended June 30, 2022 compared to the same period in 2021.

Cost of Revenue, Gross Profit and Gross Margin

Operating Expenses, Other Income (Loss), net and Provision for Income Taxes

Changes in fair value of contingent consideration. We had no contingent consideration liabilities recorded during 2022. The change in fair value of contingent consideration associated with the acquisition of Hubs was $7.8 million during the six months ended June 30, 2021.

The following table summarizes our cash flows during the six months ended June 30, 2022 and 2021:

Cash Flows from Operating Activities

Cash Flows from Investing Activities

Cash Flows from Financing Activities

Critical Accounting Policies and Use of Estimates

For information on recent accounting pronouncements, see Note 2 to the Consolidated Financial Statements appearing in Part I, Item 1 in this Quarterly Report on Form 10-Q.

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