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

During the three months ended March 31, 2022, we served 23,492 unique product developers and engineers who purchased our products through our web-based customer interface, an increase of 3.9% over the same period in 2021.

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 months ended March 31, 2022 and 2021 were as follows:

Stock options, restricted stock and performance stock $ 4,006

Comparison of Three Months Ended March 31, 2022 and 2021

Revenue by reportable segment and the related changes for the three months ended March 31, 2022 and 2021 were as follows:

Revenue by product line and the related changes for the three months ended March 31, 2022 and 2021 were as follows:

Cost of Revenue, Gross Profit and Gross Margin

Gross Profit and Gross Margin. Gross profit increased from $55.3 million in the three months ended March 31, 2021 to $55.8 million in the three months ended March 31, 2022. Gross margin decreased from 47.6% in the three months ended March 31, 2021 to 44.9% in the three months ended March 31, 2022, primarily due to labor and materials cost inflation and the mix of revenue.

Operating Expenses, Other Income, net and Provision for Income Taxes

The following table summarizes our cash flows during the three months ended March 31, 2022 and 2021:

Cash Flows from Operating Activities

Cash Flows from Investing Activities

Cash used in investing activities was $25.8 million during the three months ended March 31, 2022, consisting of $22.7 million for net purchases of marketable securities and $3.1 million for the purchases of property, equipment and other capital assets.

Cash used in investing activities was $90.1 million during the three months ended March 31, 2021, consisting of $127.7 million in cash used for acquisitions, net of cash acquired and $6.5 million for the purchases of property, equipment and other capital assets, which were partially offset by $44.1 million for net proceeds from investments in marketable securities.

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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