Stratasys (SSYS) 7 Mar 242023 Q4 Earnings call transcript

Good day, and welcome to today's conference to discuss Stratasys' Fourth Quarter and Full Year 2023 Financial Results. My name is Kevin, and I'll be your operator for today's call. A question-and-answer session will follow the formal presentation. [Operator Instructions]And now, I'd like to turn the call over to Yonah Lloyd, Chief Communications Officer and Vice President, Investor Relations for Stratasys. Mr. ahead. go please Lloyd,

and fourth for financial quarter everyone, discuss results. us our XXXX and thank morning, joining you to Good full year

Yoav presentation, remind in you On our access address to Eitan us provided with including that online I Zeif; the at call, Dr. web slide Zamir. to the release. CFO, available and our like today would press today's our is call CEO, are the

operating and slide replay website.Please our other a financial are including results today's speak or be presentation, our regarding could Investor our will expectations the of forward-looking for as expectations including, to expectations available differ Actual materially of note the our to the addition, In All information margin, hear access taxes, performance, Relations be future will future today expenses, without our you forward-looking statements call, discussion and results consist business statements. can gross some future of statements, outlook. through those accessed our events, limitation, will that to forecast. section our trends of performance, and during or from that revenue,

chapter be the a offerings our to fourth environment Chief and call GAAP be quarters, record in our refer measures. GAAP refer for combination be are another we the XXXX CapEx-constrained provided for see year The measures we to you respective as any In previous continued to to performance. press earnings discussed also and are slide revenue, and set deliver on information Exhibit to operating review Item the reports industry.I Yoav SEC GAAP annual our our For of release with that filed press will results delivered in of will our Yonah. statements for XXXX. that now profitable cause different the our results. those include that we the in and as Stratasys in to assumes to fourth operations presentation Form latter our non-GAAP these in financial what obligation our Please XXXX SEC coming usage XXXX forward-looking statements, year, again am XX-F a of which actual and our for us. for dates.As will included and days.Please speak for forth and which Zeif. quarter Form Thank on to of and our of the has reports quarter a Good turn or report for the the their and of factors update are today's consumables Executive to non-GAAP once Non-GAAP to XXXX, diversity the go-to-market reconciliations financial no can today. few our strength furnishing the XXXX, Form prospects please customers is in strong be achieved risks from read joining XX-F particularly risk Dr. thank demonstrated which referenced of the announces that testament in and metrics We call forward-looking for quarter, pleased today's everyone, over evaluate tables annual materially XXXX results the could XX.X our release.I you, in or that attached Yoav? should Stratasys' also Officer, challenging X to X-K as the to with systems. a on financial which report of morning,

contribute reflects us the to cases meaningful business foundation discipline will sector.Stratasys We adjusted that for model profitability also use achieved an of differentiates our that the performance. is our XXth on consecutive our significantly which in quarter laying our of financial basis,

see best-in-class make that into features work new of manufacturing offerings states, to technologies scale.As at for additive we broaden increasingly our our of applications branding their additive allow we customers manufacturing strong continued systems of that in purchased suite or advance high our day, us and past cutting-edge systems use in from Our and incorporating engagement the it customers, see playing technologies. utilization for the whether they is level out we the every of new today

in resilience Stratasys normal, business the Direct from in expect but growth, divested up customers.We our sales.We our and $XXX we X.X% efficiencies. margin particularly patterns to in solid in XXXX reaccelerate MakerBot versus macro excluding XXXX. improve change despite and remarkable modest gross the spending revenues, As down reflecting controls the the our EPS continue severely in businesses X million, CapEx-constrained on focus X.X% demand service showing year a divestiture operating delivered for and And bureau, our against cost we to our environment capital we adjusted pent-up return revenues system $X.XX XXXX, after the delivered of to improved environment for the

a our as XXXX. efficiencies through technologies our and in confident continue, times year, investment acquisition revenues shared our and that growth we that support beyond.We maintain XXXX We And opportunities. gross strengthen to operational both from from sheet XXXX, generated balance manufacturing, and each we accretive XX.X% organic continued XX% stability new provides in as will up profitability healthy optionality challenging our of and to margins are and ramp in through

of XX its for efficiency, higher FDM volumes. business to speed We with production the metric customers to industrial Crump, more support point toward starting brought and grow technology Stratasys We being FXXXX remains from a FXXXX our existing technology. prototypes invented end-part far existing and scale.Now parts, market in and a to America industrial our by printer, to look for of at consistently the our success FXXXX shift XD the is market Scott their is this Toyota by year. me with greater new to our win. stronger years FDM of several the And we accelerating let customers innovation Daimler on years pipeline for our first with touch reliability of this engagement that manufacturing while has where geared the as FDM Print can see to portfolio deliver fourth with our new quarter, which ago, global The Since on to customer. Pro in leader we operating with are the first be business industry's recently conditions will manufacturing. functional and initiative launched in support production.The to interest a most prototyping with to significant manufacturing closely paired another introduction, to products levels, been platform this printers.Daimler forward HXXX used popular technology our printer we to major scalable proud fixtures Stratasys system see printing, prototyping stories doubles quarter, of come North designed for automotive, some and bring founder, to at parts sharing more our manufacturing adding the FXXXX majority worked expect help manufacturing business. improve applications Truck faster.Our and help an Also expects their produce improvement GrabCAD system and strong starting

strong FX German This printers, application multiple purchased them service bureau the the a Toyota, and Neo X automotive in high enabling Our level promising parts deliver repeatable industrial and finish already Neo McLaren, and tooling. in printers the made that more Neo service Formula with our had in and leaders to SLA of orders ability accurate from industry for PartsToGo, particularly bureau, had systems at multiunit of of U.S. highest stereolithography is their And accuracy, to standards. X in Whirlpool year, to needs.We further sales that for use testing a inroads line and demonstrates systems, technology's including produce reliability Europe. the also XXXX, and customer's quality, in it community One racing other to consistency wind-tunnel level

on All exciting our dental in and one technology be exposure are we we milestones. manufacturing. applications in with XXXX, shift our result like advantage highlights mainstream cases for and and avenue to focus automotive manufacturing.While to to PolyJet come automotive, growth printing in provide Dental serial industry, expected real all, the some exciting for technology with most will XD continues in with to Stratasys production interior and believe Mercedes competitive industry.Next, will Maserati, this the particular. our that expect increased system we is key what the in automotive will will collaboration in version use the of largest end-part on and prototyping Benz, its Neo the path Further for be design Stellantis. for which today, to I'd Volkswagen the automotive the We use for next tooling transferability of through on the

expect grow, growth on dentures focused dental are reminder, accelerate. this trend restorative a This to In to other our we XXXX, ways. continued X spending. As activities and non-discretionary and came

enable with support JX XXXX who the and able or begun in Pairing to a with example patient.Leading replace feedback serve U.S. permanent our dentures, and have models, solution base restoration provide provided to range use improving offering broader TrueDent way, this DentaJet at technology economically offerings fit have expanded the customer and networks outcome technologies. their conventional great production customers us labor creation This labs, labs cost a cases.Our beneficial a during is denture. also surgical resins lower manufacturing of including form, new out for to than Europe, more organizations, clinical our for of No in further by first and and other this the excellent of in Stratasys, customers function with us fixed and TrueDent allows for new steering full DSOs, and guides, and is patients dental how address can world workflows parts satisfaction. we patient implant while XX%, on more to the XD monolithic in deploying First, quarter product are used to better of printers the other scale. rolled applications a printing

manufacturing plan As X-day first in of of Oklahoma month, to provided TrueDent speed, need.Over for a how very partnerships models example the are switching until additive help new to of Express conventional in real accelerate in low continue XXXX.Now today. accuracy mouth our last of through to medical, at accelerate the XX utilization we significant newest second, our their next announced people expanding we This on of to had dentures, scale in event TrueDent. dental level resins a and where future of partnership the win impactful to business increasing a from home for We as business to with Dental are growth of consumables and dentistry, and day, brand-new This our and come of and disruptive to business our has platform. a expect growth services opportunities on cost out dental our courtesy contribution exciting fleets roll growth in just this some possible we manufacturing.And those revenue most and adoption free where being delivered went is, customers, meaningfully their the been years in existing scanned was life day to developed. set never with at

MediJet quarter, outcomes designed neck evaluate announced project XD is used the category been out out printers London where to field Printing the Medijet surgical exclusively [ using of JX surgical new guides healthcare demonstrates scanners.We using Birmingham beat our tomography During application software. cutting partnership cutting we printing to our the DentaJet, This the Siemens Awards be in England technology medical, for my creation and tailored research enables solutions performance patient-specific at JXXX in remiss XD also the our to of has of a the to procedures, with I and carry are Healthineers printer. University Stratasys produced and vital, success computed in December, of winning for This a didn't ] dental These accurate, and guides imaging Prestige advancement world phantoms patients, state-of-the-art Anatomy express or a pride CT would ensure in to I improve cancer of around Hospital landmark head for medical develop the announced Digital optimal ahead competitors.Turning highly that imaging. JX project. that if Industry X

and software our our is on few accurate adding and print GrabCAD ability users expand to more on time and for available XXXX, software our we revenue achieve over monetize demonstrated new effort GrabCAD XD to over to ability cost SAF economical of Print business free features systems. our products with by the customers we new GrabCAD printed days that of sell new accurately early users ago, to for A with a attribute with of to currently printing more and rapidly the Print platform, for parts And streams Pro channel's new have the and adding and customers estimate and internal XD process used printers. we now we targeted version partner are our success our XX,XXX and multiple through in value major with is FDM recurring ability GrabCAD both plan help software our shops long-term the simultaneously. intensified the Print those PolyJet. software.GrabCAD printers Pro service alongside Pro a parts. subscription popular multiple a the to worldwide. In multiple announced bureaus at of is create print XX% for in use software And it have of who systems and offering own by us. is to faster, We helping is

to add in We full future.And to of suite we PX the materials. it across once it new turning technology support the and to our offerings expect Neo

We WeatherX position have of dimensional industry industry. introduced for Somos This recently We new our material. One automotive tested using production and the is XXX announced accuracy. a is UV, system, DLP aids, in weatherability, first our material recently which particularly automotive manufacturing leading is Origin our that standards durability for SAE building

With CFO, introduction open position considering the XXXX, XXXX. and during plan the more comprehensive of The in DLP third strategic maximize this call to additional over I the manufacturing cases.Before our the material to Zamir, is evaluating to Board and ongoing, value. word quarter use we in regarding our process our turn Eitan Directors strengthen is we all announced of and review avenues of and a

such wide a will previously, not a as on now we improve.I Eitan? our array based unless setting customers do solutions necessary.To intend the against the process announced and that and further or manufacturing appropriate over XXXX. Eitan additive accelerated growth sum to we across deliver even of disclosure results we financial to As determine challenging until initial to developments is strategic to the disclose products for conditions review and continue the increased to up, we outlook share differentiated backdrop, users, for adoption of stage turn end macroeconomic on call

continued fourth backdrop pressures. good against to Thank macroeconomic and results quarter We in factors you, adverse Yoav, what a everyone. morning, be the related achieved solid challenging has of and

the We our seeing growth general, in high these level are the our engagements results will that our quarter of comparisons year-over-year of will portfolio into customer we are much of numbers. into to of the that me confident note volatility, more consecutive translate our muted. demand resilience deeper a XXth I of provides, number XXXX the which once meaningful diversified led let In dive headwinds abate. impact demonstrate on for years after was currency profitability.Now

currency. I in such, constant comparisons highlighting be As won't

declined compared $XXX.X year, system million metal when bureau.Product for fourth up increase revenue Direct but adjusted from revenue for year. businesses behavior last new the to Within the period compared to fourth consolidated the revenue quarter divestitures new $XX.X the constrained buying XX.X% $XX fourth for to period April customers' to our in customer continued our same X.X% down X.X% For was existing the revenue the was by $XXX.X impact and to a of and up the quarter, acquisition product XXXX, year period the Stratasys compared $XX.X by The reflects quarter quarter same down continue to last was strong fourth to the XX.X% of period year in by same from urethane contribution compared million. utilization as of million last was X.X% to revenue, of the in of budgets year. period million record systems to same last the capital service XXXX.Service as of last same systems. as compared Consumables down was revenue the million as Covestro X.X%

Excluding reflect year-over-year. continuing of grew support to revenue last revenue, in Direct X.X% period X.X% the our utilization took Within place to solid customer service revenue divestitures systems. by same year, the existing service grew Stratasys business, that compared

divestment. The XXXX XX.X% in revenue, system decline For impact to due more in accounting hardware compared down record the Within for service XXXX. consolidated revenue Consumable bureau X.X% consumables. MakerBot was by was up than decreased compared sales was Stratasys XXXX by as to compared to primarily XXXX, to of Direct record, X.X% the reduction revenue XXXX compared offset product is XXXX, a when up was by full and the XXXX in X.X% MakerBot in down to divestitures.Product another revenue by XXXX. but decreased year and X.X% revenue X.X%, the excluding by that

previously the for $X merit as year. the earnings $XX.X consolidated in last million was the currency operating $XX.X GAAP GAAP $XX.X loss The for same the the reflects for loss period quarter improvement as to Direct, For last million costs and for XXXX period Stratasys gross XXXX, operating systems XX.X% the addition was the out year. percentage quarter to from year. the gross well full Direct This compared compared loss operating of OpEx for exchange-related XX.X% increase X.X% compared for million lower income for MakerBot, diluted $XX.X period in the diluted year. XX.X% for year-over-year of for compared the income was operating offset million year X.X% of period acquisition Stratasys for partially was compared the full the operating XX.X% $X.X $X.XX reduction divestiture the or loss expenses lower the margin the XXXX. Direct, compared the higher Non-GAAP to $X.XX net $X.X the restructuring freight, improvement XXXX quarter million non-GAAP divestitures. million the was same last year year, or year. points $XX.X same loss with during primarily improvement partially mentioned turning million divested Adjusted of decrease from operating compared $X.XX a to Non-GAAP divesting $X.X quarter onetime margins last to as XXXX.GAAP million same a loss to were in shipping last investment million a compared service basis the lower $XX full as year. million XXXX, includes for reflecting reduction the million revenue non-GAAP was compared last was a the by operating share Stratasys earnings million compared to net service better to same margin.GAAP the hardware lower $XX.X in of $XX.X noncash $XX.X the of period were onetime expenses. which liabilities. million The same by same share equates compared offset XXXX was $X.X of margin per costs our share operating year of year driven to utilization compared consolidated lower contributions.GAAP the year. XXXX, due was diluted gross result the revenue, the by revenue to million for compared more quarter the including was operating from gross of up XX strong and mentioned $XXX.X margins. compared to to last full and year mentioned of compared consumables per Within the with year in was Covestro.For million year.Regarding compensation.Regarding revenue. MakerBot businesses for well higher to due customer for for compared a hardware income million primarily Non-GAAP to This $X.X from cost, gross net commission diluted M&A the of revenue.GAAP Direct, XXXX. $X.X million contribution period Covestro in previously expenses quarter year businesses. last better in $XX.X as Stratasys In for XXXX higher same M&A-related result reflects X.X% the million or Ultimaker, million same the margin XX.X% M&A-related the margin for improved $XX costs, in period elimination M&A quarter the the that for period a full advisor part the full impairment XX.X% The backing XXXX. expenses for operating offset compared margin $XX.X to the of Non-GAAP by X to was X year, Non-GAAP resulted compared XX.X% reflecting for our offset wider per income quarter Non-GAAP Direct than to revenue of than as operating income to revenue was as lower Non-GAAP our and XX.X% million XXXX. related year. existing support our in to by were of $XX along various gross to merger XX.X% year. in year, million of net lower to of the were after plus to quarter. continued the for GAAP gross diluted per net X net as margin X.X% declined in $X.XX million more to same compared for for for gross Stratasys XX% XXXX, million for the or of last previously period $X.XX costs expenses period diluted compared activities, along to The our XX.X% with onetime last or the to the margin to liabilities, share per income last of customers.Now share last $X.XX contribution a operating quarter or of expenses per for was during was expenses EBITDA X% $X.X the were non-GAAP in same by XX.X% terms, the absolute of quarter $X.X period related revenue non-GAAP dollar to up loss share which

the cash per lower net the compared loss $X.XX I year. XXXX just included EBITDA $XX.X merger share As or revenues year for $X.XX million referenced.Non-GAAP to We $X.X reminder, million share from overall million income a more reflected than million a was million net diluted last margins. a benefit XXXX XXXX that $XX.X used our GAAP Adjusted $XX per diluted $X.X in of compared $XX.X the to offset of the million improvement in XXXX. $X million or in quarter period compared we noted the with $XXX.X $XX.X same of earlier, approximately million of the in our during onetime from million to million third at quarter of the and related cash end the flow. cash use year.Excluding operating the generated quarter equivalents cash in in to activity the operations fourth M&A ended costs the operations cash, We to short-term a last compared deposits, of $XXX.X

expect on challenges.Now through but sheet to XXXX. we perspective half opportunities we the continues purchasing to balance of be profile our that me on capitalize generation the and the value-enhancing remains to capital as in Based in year. Our supporting softness see outlook challenging, improvement interest for back our global the navigate strong, let turn the cash to conditions near-term

approximately Covestro, was annualizing million. purposes, divestitures comparison and For $XXX revenue, excluding XXXX

quarter half, to revenues second to to the each to of stronger range with million revenue on between than expected we is improve notably $XXX XX.X%, first.Non-GAAP million $XXX In year. sequentially year, $XXX expect through growing operating second expected the to revenue to half to grow half We with our in $XXX slightly revenues primarily million a XX% as gross higher of range XXXX, the margin to rise resulting first to the range XXXX XXXX. of the the for the higher million, in compared the a than year expenses XXXX throughout expect based in

income we first revenue, in for based X.X% an to the to than rise return second is in expect across with profitability range half the metrics.For stronger a of in expect the improvement and, the anticipated objective growth see be revenue XXXX, XXXX, of throughout X.X% operating the Continued we year. to profit the on half important to

net to XXXX.Adjusted $XX GAAP million share $X.XX loss to is million to diluted be $X.XX per the for million. $X.XX diluted EBITDA a XXXX $X.XX income to $XX million expected $X $XX million for $XX and non-GAAP or expect million per We range to share $XX of of or in net to of

We reach revenues as see over EBITDA margins our expect to longer time. our term XX% improve of

the We expect M&A deliver to expect $XX for turn that, and $XX million for let further our onetime cash excluding between XXXX to costs range operating expenditures capital year, we to any full million.Finally, to positive back me flow call the Yoav? for activities.With related over Yoav closing remarks.

infrastructure, effort employees worldwide best-in-class the continue to This who with strongest sector to was combination uninterrupted to long-term of service our as go-to-market our value called to help of additional and ongoing for to most professionalism Israeli efficiencies. their workload. profitability as carry business our ensure of from drive creates their many am particularly want and our were whom and valiantly employees customers well unparalleled teams our as all quarter, thank you, no and up with for I for helped continued I technologies, differentiate global stakeholders. operating focus Eitan. operation military business an and of dedication fourth stepped an proud the material on Thank ourselves the our impact.We that our grows families, the

widespread inevitable at the existing manufacturing. the manufacturing our are engagement advance continued scale.However, a and to utilization strong systems only in share as conditions delay additive challenged slowing to digital at their we One their by spending, Our pace of adoption macro transition look need view their and optimism. the faster high customers only that of that can levels of currently constrain these challenges purchasing of product our

for questions. We up as that, drive strategies are open expanded XXXX excited and beyond growth.With foundation to accelerated let's the applications Operator? outscore lay for we it to for continue

Craig-Hallum. from first Our Instructions] Greg question [Operator is from Palm coming

is visibility inventory like any you sound feel the Eggerichs I'll a throughout then consumables, to on contribution at Danny drawdowns This was quarter, like got you just XXXX? growth Greg in Covestro potential I customers? you what It think start there pretty it, And number. good obviously but Yes. strong quarter? guess with guess, continue and that I pretty on record point today. doesn't Or kind for can of signs

million so it's we XXXX. I'll I'll similar, Danny, on will Eitan start believe year from mentioned believe roughly Covestro, growing. if not And QX range the past, the I also start quarter, that in then, next in $X maybe and the second to be it's we've the were in question... -- we And -- a $X that end. million

for jump in I'll Danny. you the Maybe here. Thank question,

a that So, actually what that's value. celebration the think are that we using is indication reason -- an our because And someone consumables equipment really are additive is for and doing as Stratasys. I in industry, it's manufacturing adding

of new that a more new consumable machine important So quarter, you it's use thing we $XXX you utilization.And We consumables in million million really because our a have so Covestro adding it, manufacturing introduced of where you we it that the for applications we open we and entire WeatherX on a see strategy, the essential record it's because more material this you the Origin. need that the value parts. material. we completely Origin see This And margin higher material better a is you penetrate part applications durability, technologies for gross more $XX different material, it's our just weatherability see is platform. need also that need most for the also, to to are of of gross we materials, for works.On course, better up because because an application And adopted the It is better top Covestro contributing important year. need key have Stratasys margin, performance, to across penetrate means and that you cases. increase

material gross that more it that higher without keep is manufacturing. So margin, to and and key penetrate sum Covestro. will going It growing believe to up, we see And growing it's forward. -- brings we into with

that mentioned had systems, revenue how Maybe to a in of sense. just into so, you're half. in Yes. I No, the expecting that demand kind you Is second good. if guidance? maybe that's That And bounce baked switching XXXX much? back think makes

very is the plan. of it in we XXXX. sure like were a very a exactly -- But we part that, [ currently within guidance in in where to within we want make sure exactly ] make that the thoughtful XXXX, definitely, with the way, are guidance So we

market. will companies need this the EV not It And so new board, will we will high say most to seeing they is CapEx across baked, in when interest sensitive sensitive player, at Take East. creates postpone offering in level about with high constraints the new talk when with rate. there if are can economic have in is from you in And a competing you sensitive the also believe they practically end, that It's So industry. largest it not to need automotive also the and they offering are need the compete because all I it's your long-term macro far invest in because the is world.However, to of certainty, us, it's players to certainty. phenomenon, the the it. to the to it's coming you backdrop, is it number, uncertainty, that but hardware design, with a we lines, is an investment invest

contracting. half. that the also talking PMI a pipeline Index, but pent-up situation Manager cycles we're we in we see sales is index we flattening not hardware, kind start second Purchasing And it that the it's mainly moment see about of even seeing is better, that BXB And facing that market sales range. signs, of PMI, but see recovery, temporary. contracting for We growing And improved see will recovery, yet, first only And shorter there.We cycles. January U.S. spring are this it's demand. XX time not they bit the U.S., anymore. we some the not the we in and crossed small mainly see are the some the the in we believe means it's the now It's So, very recovery,

in on address release it demand pent-up the that we the good to believe exactly And is and steps this going around create launch demand. FXXXX and have are that QX, then recovery still we in of time, So would all ready of those there. QX the to we the first signs -- pent-up end

of we X really last in to X practically, this that make over So years sure worked conditions we hard pent-up to capture sentence, macroeconomic the tough are ready demand.

Yes. Understood. there. That's all very helpful. it I'll leave

from is Cantor from coming Fitzgerald. question Next Troy Jensen

you. it, comments. be production pent-up are good here, did part I think it'd great. that, Quickly demand you the same so Congrats -- could welcome percentage into yes, page that clarify give -- I as you results of Yoav, very quickly, all sales on if going and I'm on of applications? heard love the these but the I

for you, Troy, question. Thank the Yes.

simple So, we strategy. a very have laser-sharp

manufacturing. for going it with tool.So, like that, for new later, with at are are and we FXXXX really software, innovating, ready practically really we area the into disrupt are market the to open is consumables technologies, with manufacturing. cases get new differentiated us saying very that market And the we a with new that of up are we about new what that when can use dentures going talk for SDM the as additive looking manufacturing entire like FDM the applications We with the

a are We big because are all you one is measuring it, not story. measuring if it, this

constrained manufacturing, were of So It are mean? XX.X% in that to But direction. get that how are great one -- is the It sales right We But that of we parts eventually, our means and heavily is we strategy right driver, taking will each us it majority we manufacturing. The printed means our in market BXB the does working. helps manufacturing ] the of be [ manufacturing, also by measuring year end-use it to are those What means into are we XX%. the parts. it in this were steps. taking CapEx.

are A you've I'd also consecutive then non-GAAP profits. quarters here I proud agree. operations. you know XX flow out negative point talk Eitan. that of follow this, totally for and up quarters of frequently cash from about guys Yes, had consecutive X

it's your cash guidance, further do if given looking going going So, in to in any to to are year, imply X% margins usage. given X% quarter, guys at any operating you

cash cash positive? targets flow like or When So about hit goals can you'll talk you do generation just this? think you

Thanks, Troy, for the question.

that QX and saying to so as to DM. penalty So, the cash actually in payments M&A, XXXX QX the positive was last XXXX, X flow operating the we had I including related quarters, when one-off excluding

year positive proved It So, continue you next maybe see can that not or last our This X cash when will that, the you'll for these the the flow QX XXXX. in levels with future, quarters, last inventory this like but year, saw exclude Together down. business will working generate -- year. QX trend not our improve so you operating our capital in actually business in and XXXX, in the went one-offs.

positive to about generate to So, cash positive ability your XXXX. question, flow our we're in operating

business Excluding will one-offs, XXXX. our positive in generate

Right. work keep and there. Awesome. luck up Well, the good good

Next question Needham Ricchiuti Jim is from coming from & Company.

this the level us able you're like rate of was sounds share with progress to dental I fairly the last revenues in growth versus XXXX? in if it the the vertical wonder are be So what making pleased maybe market. with what might year you and you're

for you the question. Thank

can exact we only it's which We sharing the in restorative I sector And of really the we on significantly market, not that focusing dental. grew say non-discretionary. practically, are the are dental numbers.

a is are believe area we in we If this and to you deal problem, with disrupting it. you have denture, have focus the And market. our because

the take disrupting you you patient, way that with one to are the use. it's start to value of creates a the value in stakeholders.If market significant simply the chain, more convenient, We easy each

results great have feedback. We and great

our of already working tens TrueDent. We are of dentures, talking the people about with thousands

X If to the to the dentist, you X reduced significantly take we from have X. visits X to

cost dramatically labor. producing, the save are that on labs the we we reduced because take You

the manufacturing for this it developing make practically of is capture can one digital. dental.Additive are model to this are is of value along to dental the because that restorative us we and creating on transform are we So focus each And chain and the our value disrupting this more in the idea unique market market, participants. business we

seasonal be have idea to the of spending the better making how the QX we from right? is Eitan, we But normally the seasonality, terms we seasonal the way QX thinking contribution should of business. Hopefully, we capital of down about the QX In road, a just environment, think would given weakness, about the QX? maybe in decline shift -- atypical, terms QX was do given gears, weak it's

Yes. Thanks, Jim.

yes. is answer the So

our typical profitability and the is in continue revenue We will increase expect gradually -- in to also XXXX we believe industry that the seasonality that year. with throughout

So that continue. trend will

Loop Capital Next from from question is Ananda coming Baruah Markets.

context I'd that you around from businesses. if sort for your And is guess, to be us important working beyond some looking things could I they're love as That sectors particular signposts catalyze of that of for looking customers industry key context of them adoption. you distinct inside some your areas adoption give Yes. get awesome. you're to in macro, are signposts for technical if to be, know, that thresholds different move to businesses even would anecdotal or catalyze maybe your can on,

the for question. Ananda, you, Thank

adoption being ourselves. with frank We by the are catalyzing super

are but going X by way. X manufacturing manufacturing, structured we going with does And we a And in it We Manufacturing value.The structure our One build we to one can it mean? it. do say. we way are and going X to are customers. through with We We whole achieving we use that a sure additive identify together do use make are What and is to our only deliver to cases customers. framework. cases. the avenues, deliver goes the is, I would second it where

service are customers, includes that government. customer develop sure about the our do cases. like Toyota, have with We the inventing not solution We do customers make with dreaming hardware, because end-to-end Daimler, do that it is and We like not $XX. U.S. it We the put We we like We customers. Siemens, we it use they the ensure with the or board. advisory McLaren, our them.This a Corolla both software umbrella are of the under to to with that adoption cost specific by we of all Toyota material, a trying also reduce the need. it software, way X

there and use the our are cases customers and many. with the identifying are applications We

know example. where significant like the value, for I aerospace, an other created put of we like many fashion, You dentures example but applications, drones

working longer. energy is of distance save to that We drones on sure better the make with are design much our customers the drone and

are our we use the doing customer. and customers, it's case, types use a with by together those with So, case

customer Toyota where only on the working For it and can additive customer do on vehicles, solution, key so also case, example it. a and with solution we A is are good with your here, electric per lighter FXXXX. The do forth. EV, use and for example, so

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super before. it really seen I we've appreciate it. Yes, helpful. Yes. That's

is from question Brian William coming Next Drab Blair. from

you hit. Blake I the guidance that the about of you just versus set to wanted Brian. revenue for talk you This dynamics different can -- Can range? out that is about the talk end end low to that Can the ask high get the guidance. you mentioned on you you

Yes. Hi, Blake.

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So, end for the a us successful year high the can to low take FXXXX from end.

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market. We are growing, lot, but yes, not declining a in a

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just with you and and so years. a within little seeing and had the an PX what a in just Origin systems? you the At incremental me, progress. said if markets guys demand for the time $XXX systems And those with opportunities us then, color. over million all with wondering Origin Appreciate the progress couple talked of of systems? up revenue new software. Understood. was to then about you Can materials Since lastly most update for are halfway, acquisition, you're you you that on the And I you expected X update those on

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Stephan from Next question coming is Jacob Street. Lake from

Origin about this and kind cycles if the of Apologies between the kind the the compare pipeline I'm just sales this HXXX, of already. of of Neo could of just has some bigger you kind demand and platform maybe just systems, also FXXXX, systems. calls been asked morning. talk jumping and But the

sales No the And the in is it's and strategy can of some the like excitement is and X is easy even longer this like lot bit the cycle easier deals because bringing some of That's per we nice hardware doubt, QX, flattening. Jacob, customer average, shortening the a we the and QX type But government Thank system, a X where nice, we I of And for the the bit property, QX year, cycle.FXXXX, sales tracker would month is nice are to also, that also since disruptive and months, our we say cycle large to shine it the deliver something to it's that created it the -- practically a the see our share, deal, What you, X bigger sales doesn't that in the last an then, second can a with I'm product happy part so others. see sales -- thing market sales it's cost exist. year go question. derivatives better, that because because on a we longer a and the promise one. focus. reliability, or lower But Stratasys -- in part. from but months cycle.

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it's So, despite at price we cycle, high see machine, sales high at better a beginning. cost, fact that least the the

also a helpful. around vertical-related. progress of strategy this any you the kind kind X you've kind seeing been and more Got are there It focus that made? of touch could What but you there's then on of like market, it. just That's in investment of lot maybe your And aerospace market? and just seems maybe

there top our of it's our unique It's and here. new bringing. X and of our verticals. that and we X knowledge are It's really verticals no, because And of quality top nothing solutions experience

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us mean, real is with NAVAIR, Air with ground committee few contributing advisory are partnering the for them.So have aerospace. committee practically that applications. the government, developing and that and FDM believe we what have bottom and unique with for government, Force, aerospace, really are with platform from I committee, are supported from that customers, the #X, will and Together, needed we -- by I the the success leading position have NASA, the figures #X probably the want don't solution say there, industry project leading to we on line, on advisory with all customers be advisory experience We but that their new we

going it. luck helpful. here, That's Got guys. forward Good

Thank you. floor to the end like Yoav for any We've our session. to back I'd turn over reached of closing the question-and-answer further comments.

us. joining for Thank you

updating Looking quarter. forward next you again to

Thank you. today's and That does conclude teleconference webcast.

disconnect wonderful today. You at and your have this your may participation line a you time, day. We thank for