Stratasys (SSYS) 13 Nov 242024 Q3 Earnings call transcript

Greetings, and welcome to the Stratasys Q3 2024 Earnings Conference Call and Webcast. [Operator Instructions] As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Yonah Lloyd, Chief Communications Officer and VP of Investor Relations. Please go ahead, sir.

Good morning, everyone, and thank you for joining us to discuss our 2024 third quarter financial results.

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

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

cause speak information to respective the along could which or or current additional assumes referenced no throughout operational updated company. Stratasys a be on statements, on the SEC forward-looking quarterly filed material update that as to the X-K Please dates. Form discussed factors that also of year, developments any statements forth basis XXXX materially risk results furnished provide and for SEC the or XXXX please throughout Stratasys' our the reports are and financial on company's report details. refer refer obligation risks annual forward-looking their to information for that set concerning those and actual annual the operating Form in Reports report regarding in For with year. from our to different to XX-F with to results furnished

will reconciliations provided turn performance. read our to in call to the call in Yoav? Officer, and our Executive our GAAP slide non-GAAP to measures The financial Zeif. combination Yoav today's quarters, financial GAAP are press in Non-GAAP metrics over evaluate now should As in our Dr. will be presentation non-GAAP and measures. today's with include previous GAAP Chief tables release. I

Good actions were thank align with today's morning, better we joining our for we decisive the taking shared quarter, everyone, market. Yonah. you, that to realities Thank business you us. and of Last

Importantly, agile, beyond we these cycle. to turn remain the benefit strong financially the actions, well-positioned and in from eventual

committed of our where financial plan, have are We to defense, the costs removing streamlining for opportunity see on targets devices particularly most largest focus applications to dental. execution company in manufacturing medical across the the transformed and and industry growth, the automotive, the by business we and aerospace,

XD generated it a For where highly both recently regarded launched from for example, is in innovation, dental has to manufacturing when and the and us across fit expand proven floor groundbreaking solution standard our multiple most dentures. its cost is industries. In our market method, our presence excitement technological expected to factory in disruption FXXXX, the already comes TrueDent help printing is

revenue in specialized will gain margin coming the is the which traction, our to software we suite increased believe of Additionally, years. drive offerings high starting

target not in are also and our early growth the key most of Our the the in greatest stage overall manufacturing, they for industries just adoption. potential demonstrate additive turn opinion, significant but

take must share we sustained manner, now While we already have to that that pleased we a appreciate put and we benefits. realize that the time, in in starting we are to will place deliver on are initiatives it

minor we adjusted incurred an per only Following as losses conditions in XX half first share, this market quarters persisted of year. positive the adjusted further, basis earnings on of challenging

execute quickly this demonstrate an of third adjusted any apart. a in that and to continues action ability an Stratasys recovery market These comprehensive a result set we results point, undertaking, the basis quarter. as to without to on Now, transformative return tailwind to of attribute profitability our our the team's

me bit the into quarter. third a Now, results dive for our deeper let

similar the accelerating in demonstrate our its model; improved by to in utilization. This growth our to sheet. our quarter continues through from from a our and applications. driven to the row transition X business our eighth deliver Our revenue balance of FDM was consumables sales, primarily fundamental the were technology margins recurring maintain quarter, revenue second strength to underscores consumables of takeaways: key manufacturing We prototyping and able and a resilience ability robust year-over-year to stability recurring customers

product design manufacturing customers optimize through increasingly enhance furthering believe, to operational we to with additive as with education enablement our leverage difference, tandem their upcoming to customers innovations. We utilize enhance of and investment, focus cost and big and other manufacturing on As presence fully workflow additive in our processes. our efficiency, will our traditional customer make benefits well-positioned understanding expand solutions how are a

from down targeted ongoing greater end and for spectrum. Through mobility, on across are laying of inevitably solutions we leg the to for industries benefit investment lower risks, users, centers growth, strategy Our long-term disciplined value driving across subside. materials efficiency focused development, chain Stratasys' sustainability key technology emerging costs for a in supply next approach addressing Those coupled trends. in once the and manufacturing cycles onshoring and with the a current foundation non-stop target mega innovation shareholder include that and materials, high growth new customization, knowledge workflow drive

and the product number of we new achieved third milestones During a quarter, introductions.

print class. continue the significantly superior premier delivers downtime, the in flagship, drive We making its in Show industry high-quality, demand FXXXX repeatability, Chicago accuracy. durable Technology which to speeds thermoplastic in for the International offering and FXXXX for with we with it reduces at Designed Manufacturing industrial delivers new parts September. performance, It leading showcased platform, faster our unmatched

are companies with and manufacturers. shipping generate and for FXXXX commercial to customers, already along order industrial aerospace to interest continue the and and We automotive, leading defense sectors, system key across

Origin along with third the our the new launched post-processing we Origin system. printer During quarter, X Cure

deliver. for A growing great subset a focus our short this the primary helps our the additive manufacturing with target this customers quality and on many runs. While TE particular as of sectors. such technology is this runs our what of technology are solution who for and and one for on customers, focus us, in opportunities costs are serve manufacturing can expanding This production compelling Connectivity injection-molding high example automotive where the other the industry is for for is scale, line of aerospace, connectors, production at demand

bureaus and casting and other Build We to casting, with XD and also developed the speeds, and high-quality launched print investment demanding the Build SLA patterns production the in NeoXXX designed master of Neo Processor printers. significantly our accelerate delivers printing NeoXXX Processor for to in unique collaboration The Stratasys' aerospace enhanced industries. Neo a investment Materialise, for XX% solution for streamlining manufacturers processing service faster file up workflow the

of our September, repurchase Given our value returning million plan, on have already we share Directors shareholders, $XX a to execute. approved focus started which in Board to

the sustainable provide implemented sheet, unveiled a last strategic steps critical recently. have we shareholders moment take maintaining taking a We including ensure have balance our unlock strong market and On to to across leadership initiatives like additional additional certain quarter's are and while value plan to to seeking assets. I'd value, cycles. to reinforce industry monetize that profitability to details a on designed call, maximizing we committed high value

on current resilient dynamics operational objectives: These costs implementation cash model Our accelerating more a profits XX%; adoption measures our a action generates with aim that workforce plan barriers. through eliminating on flow. centers realigning customer market X our create consistently and to of and reduction critical positive by business focus intensifying

a plan Our implementation moment. Eitan margins operating the as discuss pace, in the restructuring of will of by evidenced is that ahead in improvement

spending quarter to track a the highest on the also with first conditions, generating designed of million build business achieve during These savings, enhancing a align are us ready We stay returns. to cost costs in while downturns, respond solutions. $XX while to our current growth materials and strategy cash our focus next long-term go-to-market and help when of year, annual starting products, software quickly to being in agile actions target are profitable on customer

we increased last XXXX, delivering our we call. on in Importantly, cash committed are flow discussed profitability that and to

to will expressed accurately ] We subside, access more high you, once are capital Eitan. the to reflect demand our that headwinds confident to spare customer current solutions. Over [ spending renewed for

Thank you, everyone. morning, Yoav, and good

resilience quarter pressure our control cost growth on as another revenues. consumable we yet in improved and actions thanks This sales bottom for peers of year. our These as increase of delivered than line our model, operating faster to the key part sector team in relative quarter year-over-year to profit us results as our were to and of profitability margins fast differentiator expectation on in progress the initiatives, anticipated enabling gross the our well demonstrated despite a year-over-year

the me numbers. Now of our let get into details

the the to same capital third the quarter $XXX to $XXX.X persistent to in $XXX.X equipment period in Product quarter, was revenue last spending. in in million improvement due the period softness million, was off revenue compared revenue year. revenue, consolidated compared last $XX.X For period million revenue million product Within in compared same quarter the from in the year. Consumables $XX.X third XXXX, grew the second sequential was quarter, same year. million, system to $XX.X yet same X% compared million we $XX.X the produced million last to to a

mentioned, year-over-year this of As Yoav our is growth. quarter eighth straight

rates the Our demand support that be utilized. Service revenue, that sales signals including the Stratasys off year. for same despite $XX.X the we was to Within compared robust. It's service compared foreseeable million Absent same was remain consumables challenging systems more installed to sales than $XX.X revenue well we base consumable weakness to hardware revenue, future backdrop X.X%. the customer continue consistently divestitures, of period to ability Direct, continues important grow up be in sold bit year. to utilization as last to X.X% period million, have the resilient expect last service despite the to was revenue note recent in the a

costs, from same the of XX.X% related primarily professional the related to prospective primarily proxy last acquisitions, XX.X% contest million and last announced the quarter, in period the to the benefits GAAP last to period improvement fees. Non-GAAP Stratasys revenue expenses $XX.X lower were quarter, margins. million were million, to operating offer, was costs highest to operating year, were Non-GAAP same and the expanded the QX XX.X% to Direct gross due gross for the improvement since to compared for to $XXX.X to Non-GAAP year The last versus period the XX.X% turning consumables higher expenses margin period the at quarter, to year. of margins $XX.X part in early to to tender and mix for hostile mergers initiatives last year, expenses and potential same quarter. saving for million, margin period period was Now also lower by divestitures. GAAP due a during against grew the expenses during same compared defense compared employee-related same cost it's XX.X% gross compared including due last in prior year. greater The and driven a XXXX. for $XX.X compared operating XX.X% year.

the income operating per Regarding $X.X was operating last EBITDA diluted per per compared our share lower Non-GAAP was for gross margin million year. Adjusted lower for quarter last net GAAP improved income to in share, was offset $X.X quarter of earnings, loss compared diluted loss period of $XX.X $X.XX the net year. year. million the $XX.X period compared $X.XX $XX.X million was for income $X.X net for quarter, last year. $X.X The a diluted the or of $X.XX same million million same for same million for the period $X.XX or costs. GAAP loss was same the somewhat overall $XX.X last the operating compared per of change revenue, quarter share Non-GAAP in consolidated quarter million, reflects loss a share, to the same diluted for the or loss period last compared $X.X million by or the million, to for to year. $X.X to period and employee-related net the the million

second million with and as the our also quarter compared short-term million the cash, million in this the cash end operating quarter quarter, our to cash quarter we We during in utilization positive. $X.X cash compared used of We $XXX.X operations equivalents our cash deposits, remained last to at year. ended $XX.X same $XXX in the million the quarter flow the improved of third during only year. Year-to-date,

Our in opportunities. on balance and improve expected sheet the quarter to ability this remained value-enhancing fourth year impact to is accelerates of strengthening as of our strong saving beyond, measures our the act and cost

Now to for our let turn me outlook XXXX.

full XXXX are range $XXX $XXX reiterating that year our between expectation to revenue We million million. will

a on forecast. From XX.X%. to now gross raising We XX% are be XXXX profit the and higher to we margins expect year in perspective, our what call, a slightly than we margin last of range full shared

million. $XXX our $XXX million expect range operating we expenses XXXX, between to For to

margin. With We to net EBITDA operating $XX to to income we $X.XX to the and over $X.XX providing for $XX of operating margins $XXX And turn full X.X% $X.XX million GAAP conditions, leverage outlook, $XX that, million back for or business, are to million slightly even to million we was growth range in diluted X% between expected compared is if the we could $X.X $X we $X.XX. Adjusted per range the to share, margin remarks. year. there expect to closing generate year. the the anticipate call business loss non-GAAP if at million EBITDA to not for expenditures to can revenue me Yoav to $XX XXXX formal to of let or while least reach And Capital to XXXX. million year. are on Yoav's the We achieve to even to EBITDA XX% the net in revenue a taking we to between X.X% given point would million for million $XX current the of non-GAAP be actions expect growth, align moderate are the range a expected no

streamlined you, initiatives our the since of have to implementation use company Thank to the cases. operations, most effective end second the quarter, of tightened transform our compelling and Eitan. the focus improved key margins With we

our and adoption customers users. their education their enabling go-to-market are more We enhanced manufacturing easily of for with to ramp system additive better engagement

are preserving with to in outperform to company software the sheet. we taken, And years our that are for increased we in when We returns. consumables, our and on ahead. we manufacturing balance has decades. laser-focused leader actions extend profitability capital additive systems, a poised delivering market-leading leadership Stratasys spending have the strong while been repositioned With have the

a in setting use our to shareholders. With point expanded solutions. are significant up Our the systems return cycle, that, we turbulent open let's for expand Through our for Operator? profitability of for questions. and to customers continue this and their creation growth, it the stage value

first Our Instructions] from [Operator Needham question coming Ricchiuti Company. Jim from is &

at a look -- suggest implied for So the guidance is kind guidance sequentially, I a breakeven up to EPS if quarter. breakeven revenue QX, your seems which of

some seen pullback you some in question my OpEx, I where nice some a factors? other Or something are trade so, then or have maybe And improvement? margins expense is, anticipating And quick there else obviously in gross is higher we've show follow-up.

the for Thanks, question. Jim,

to model year. help me let full QX think and to So you the maybe everyone how and

from probably saw, get XXXX you annual $X.XX QX you positive we've When deduct you of range $X.XX months updated in positive X EPS QX to $X.XX EPS As $X.XX. and only. the to EPS, is annual to that take to the for the a that first the you

not the I'm sure about So math.

I -- Okay. Yes. apologize. clarifying. [ for had It's ] may I mistake. have my just you Thank some bad

No, no.

but sure. that and QX. to announced be restructuring, translated the significantly me, savings, by it For that tells EPS we level positively okay benefit QX is QX that's highlight will But it start impacted change is actually, the to the is last into relatively if We high said in that exactly quarter. to this going

Follow-up still I to wouldn't market to question kind of case is sequentially -- you're be how going the next improvement fact wondering any know. showing new about beyond --look, that QX that the be standpoint? QX. in uncertain, some specific from I But is thinking start guidance to just not that, there's from you're year-over-year yes, to year? a just early improvement reason might -- But year-on-year the QX. QX, Obviously, normal to Just the QX, seasonality be that know relates you giving any there in year-over-year the showed the we

Thanks, Jim.

over of million to continue you seasonality, the strong as quarters most the as is -- last the partially guidance QX million for the to take a -- industry years. and from the you X you when noted. actual that my is actually basically, derivative has answer, the So This as between and $XXX for [ the you full and is ], us -- QX noted, on revenue, $XXX been

first say It's guiding, how early look about XXXX. of but So we're yet it's we like, and too XXXX of it's the see, a a to course, half seasonality. not that pipeline would

Cantor is today from coming from question Fitzgerald. Next Troy Jensen

cuts good good on here. Congrats cost the results and

So sequential the year-over-year you've of X know first guys, of a declined row, I from kind year-over-year only the down the But kind basis, we're growth and of consumables, has it's consecutive X had on rate say on growth to -- XX% just all, on of great I'd quarters. kind been a in X%. quarters at

get kind here kind consumables? concerns to just negative to single-digit So going back any that Or can growth you about of going us QX? talk in in what's of of high

the Thank for question. you

I differentiates think Stratasys. is this something that

a very in supported that revenue first look of large trend, we a that a this we all, helps which solid, recurring And growing those at fact especially consume equipment we fact we and and is to thing a is year-over-year. revenue faster. the grows One solid challenging installed solid more, reflection are the that base, stream. and And higher have can have sure, We I for it's are to it us, high-end that installed very the it support it is this If the of more consumable, base utilization, is that and we times. model, is growing year-over-year, manufacturing see also selling are fact by going manufacturing, going year-over-year-over-year. growth

but committed putting always this And is regularly. it material system than very So are an be growth. new And Quarter-by-quarter could we consume trend. system. new year-over-year are lumpy, for out more a will healthy old we

already of the top materials. this have the largest fact materials Every that ongoing of part business. is we of have we portfolio on the more So quarter

That's fair.

round reductions. second just X Curious, a Or continuation a new of another months Okay. guys initiative? was workforce said All this was week, the I what last question. then there kind of this believe was of you right. And ago?

plan, reduced don't one leaving there one had We recruiting, but are we we move. Maybe workforce, regular restructuring. not. we course terms cash of and And business in financially position, in restructuring, the put finished we than of And, did I some the one executed ongoing ahead although of us people that it. which already you but of was know. there are it expected. course, it We commercially, and a for in position us great of didn't we plan both QX, better quarter helps

is Palm coming Greg question from from Craig-Hallum. Next

interest -- we've better XX, this just maybe the in start policy don't sort to months where little at in on got rates, and where environment some all the that of stuff policy you is broader results importance your sort those? give sort -- of bit the order to And I all with if come just the rank, to thinking had least even pipeline? talked I'm get more a of an confidence manufacturing here. cycle, way on softer Maybe this of demand does you've or about. of going better of kind guess pent-up about back this that Any down, see curious manufacturing, Congrats of rates what some certainty Just going uncertainty, inflation, thoughts sort that that flush we've last I'm kind you of maybe XX XXXX? just can of through thinking I activity, into

question. for Thank great question. the you So,

technologies. capital high have what reality. urgency about don't all customers facing. we new in environment, it's is In And said, current invest you cost the that's innovative are macroenvironment. This As the our to

] So of [ main lights doubt. issue, the there significant like utilization our are and there no macro machines. equipment the our But still, the out is

mega but trends capturing are is more sure quarter this about -- positive for and more believe benefit as use mega that make we ready we this in years, is now portfolio trends And to customers. be them. on the we it best our strengthen industry to the focused needed turn quarter will the are we important see talking for already come. And mentioned, a will this the is what we you the that time but we cycle, and So are there. technology when from And same after the

about talking need resilient and agile supply chain. for are We the

talking environment. new We the are with especially about onshoring, now geopolitical

is new with We are medical huge and talking mobility thing, our localization manufacturing, dental. Dental for of customization, trends, especially [indiscernible] especially venture. a us in

about are We the level interest overall are Those digitalization is trends there of manufacturing. mega what no of talking matter the rate.

it's change, only when believe matter ready we we will will -- a to need be just the time, believe I of and So turn. market

proven use We use are traditional investing that is we proven to the I'm additive, better increase know a one. especially where cases. use solution, the our use education, of to when And than I enablement, in increase mean cases, our saying case technologies

have We it in is no have a now because great the mainly customers in ROI, adopt the macroenvironment. And but we to from aerospace, there of examples, automotive appetite many tooling.

$XX his tooling have we machines, He player spend player. the And you ask addressable North we with our they market. additive? to of automotive that much is to is And tooling an XX% what has tooling in a now For we Only machines, has said them when tens X%. tens And how are less additive, billion our and X%. our American of overall customer than know potential example, of of is XX%. are but talking going we

macro upside, So believe a I have upside. macro actually, better a in tremendous we'll when an condition, --

could just gross I guidance of I margin specifically. think If the helpful. appreciate That's the us Yes. conservatism. a appreciate, shift on gears guess it. Got lot I I

much the flat think revenue margin just obviously, benefit from for a that gross implied up maybe of down to you QX levels is bit than I margin higher to guide year on for means the what be and little gross restructuring. put going

relative it guess, I Or to mix issue a So just QX? conservatism? is a there more on is

question. Thank you for the

to on our why to based more That's than to is total all, QX. it. in achieve slightly ability So have at in gross we the forecast, but -- plan be QX. between XX.X%, first full we the to be sell QX We margin, will XX% year confidence hardware expect of higher the going -- least the guidance

the mix. will point, you your So mentioned impact that, that to

this are to excited ability the in grow very we hardware However, environment. about

matter margin. so mix. improving since a margin quarter step-by-step the and of that in last XX.X% years. the We're strong, the all you restructuring it see that few with margin gross last the almost other we moving record gross general, it the and quarters, from it's believe is is to The a for X gross and the our and the for and stable, we had almost can our near -- increasing we this we're in things with that highest will And that So continue improve increase is QX, XXXX, future. doing,

Okay. Yes, it's I guess of last of started a just maybe of of already you pace you've back I I of and your I'm heard sort good what point. to one, thoughts hear say that usage And buying the around And stock? Did kind just kind clarification. authorization? curious a thought that.

we started in you QX But securing and balance of and find between be that the reporting and position. part we've process. the we results. QX of the as started shares our will purchase going Sure. your gradually, purchase the process. They're do right to update shares of cash to to we question, course, We've part of our, financial But

question next Drab Blair. William Brian Instructions] from from [Operator coming Our is

those made I on a how but year you second the in of more the than going? said the that sell second don't on the update rollout you're half to think of hoping on is the I any know few quarter, you comments us can half? XXXX, first if you

solution. starting users. hear delivers And a it's well. FXXXX. is superior customers, our platform, our words, well, Thank going performance industrial going from it industrial the with you, definitely, whole Brian This in it question. and X the for It's we In flagship for

we sold we So variety markets. a -- to have shipped of

be others. and a one, Nissan segment. because Toyota, highly And Systems, The of delivers want like because professional, of it, a on others first those flywheel they are any effect a the stay machine buying customers for machine adopt speed very when customers will this definitely, this And other double trigger competitive. to machine are there BAE many trusted kind and it's

So going it's well.

very keep in nice and investing and are optimistic a we expanding have we platform. and backlog, this pipeline We

And been you. very the mean, now. the and election but months. that around for one potential Thank other question Okay. then have just for clearly, are I and outcome results the recent, tariffs, discussions ongoing

some you discussions -- just think of curious you moves opportunity making onshoring how of the So customers you might actually in these have customers what any with about And U.S. where help see and and of Stratasys? scenario? you maybe of to the a focus end I'm manufacturing wheels had on this in that markets for kind are benefit motion kind

question. decoupling additive trends from Thank now, a And mentioned that strengthening even it's onshoring. manufacturing, into from Those support not But doubt latest mega of already this the share I to trends. in CEOs this for has I year ago, China. offer discussing clear impact you. that X a getting that conference results is the about It Great tailwind I I want guess And the politics, this in and No participated now. us. that localized there just anything don't didn't of and U.S.-China is relationship. I it I'm to the topic. what mega -- clear was customers

optimistic. we yes, are So

Capital. Jacob Next from Street Lake question Stephan is coming from

maybe, to maybe obviously, of you your And ask qualitatively and similar that one macro Neo HXXX? guess, the But a bit X last reported in just your kind how seeing of X quantify newer I'm a kind in question help cuts I or trends of acquisition are since little there's competitors. different change of we've the you had an I'll broader also rate in way. been and Origin of us, some lines you curious, contrast the with maybe product could maybe demand administration.

the not had on is leads that than which I the demand depends you leads interest. we the takes is the would a is decision. there. the is before In would even problem problem or past The for more have the say engagement more the to we cycle. have use sales the leads, unbelievable. the downturn, The we case. much some I In the question. cases, in It and make -- technology or customers some say more thank country cases, and

to now here adopt urgency no capital. and is there new invest said, I As technologies

always So -- what there. pent-up said, is we demand demand the the that's

So...

it. Got

We the was the trends one very One changes. that that mentioned the in market, sustainable the I'll industry pushed being focusing that's example. was process those our in excess and we customers, it's market, out is mature what there of fact give the economic supply plus are and believe manufacturing, atmosphere. not healthy. and X is an a other doing. the changes And election additive and you to companies mega which important the more now what you of on an is are many important It's as and and

on We are automotive. focused

So in customers difficult already highest prove parts going that the there, producers matter we'll with use we it's we use are only tunnel, of we time these more our Formula the our technology where or the racing And automotive a manufacturing. the to the mass cases car racing. of and for from mass or are And customers. cases short-run open proven to we'll when automotive production. you up and Once prove advantage shift it requirements, wind XX% example, the this, end-use than that of X point most motor Formula to X for the like have customers focus

this only feel significant $XX seeing can of a any kind million you now any of without initiative. maybe of restructuring and into where you appreciate on additional the ahead that. well Okay. just other layoffs? it's that to Or you'll it, I costs the kind change few like And are the all But out months then maybe color make? is tracking additional the switching do -- areas expectations, you're you take

question. Thanks, Jacob, for the

restructuring there significant all, of on first we're monitor other also always savings. very And tightly our [ So the headcount-related a plan costs. but and efficiency ] has are savings, focused

quarter's last also a on mentioned change was this is or update. earnings we restructuring plan call, -- the driven strategic this by As

we year are projects are annualized beginning ceased completing the million next shut and longer there very expect We whereas we're market. said And non-headcount our or different that savings of certain to promised on achieve are $XX related, areas. that are that's no that we only that and So these of impact focused cost we of fully at There part the canceled. strategy locations. the why the down

materialized flow helps promised us confidence and EPS important. Significant is cash to financial position why have QX. the than It flow will deliver That QX. impact will significant to translated in will expected. plan. to those in commercial us quarter course, last savings cash that on savings realized the be a of XXXX, will market. we profitability the better to ahead which is That's in be shift to we're positive mentioned, -- are significant already you the once ability in and QX, of As And best which in in we put

the quickly savings that annualized once As we also translated into that achieved, to revenue EBITDA, and million $XX if get of the will assuming is double-digit quarter, critical X% very are ] level. revenue the last EBITDA, is level of could And change meaningful and us that course, mentioned there for be for us earlier [ increase, very and which will in no market.

question coming from is Markets. today Next from Valero Capital Alex Loop

savings. cost follow-up quick results. Congrats the have annual I on on actually the a

that is mentioned of year. guys you target believe like you of your question call by previous end I mentioned you you're reduction So earnings this the guess of my headcount -- I plan. ahead XX% have a in

there can So like of year? sort -- I percent how for this But left that. much understand on remark any give you like is any

you, Thank Alek.

it of $XX closing a no few all, the few a is that again, earlier, plan, what are is examples. of out about to are that to -- company saving part cost maybe other related. generates So other first optimization, other examples out million there significant So strategy. of $XX of There many acquired I the not the are headcount This few projects global But years. target, elaborate again, in And that Again, savings. okay? last want non-headcount a little few significant there only the are emphasize, it's that as bit mentioned are million be headcount. longer portion our But and a I'll -- businesses locations. does a I of of We're mean initiatives certain the is related. ahead part focused

which bigger, this and came QX, much So proud call. That's and of confidence we've call, on QX annualized to of part restructuring. of high mentioned able course, to quarter of generate quickly EPS some means proud to annual to of be achieve significant That's execute have execute announced on very XXth the already month earnings to ahead of it's we're second experienced August very savings achieve that that the and portion the much to level in after when we're companies effort, of we but something those the on part why we of plan it the say I in course, that saving. announced small that as what lot target QX, the our of are many with you've a only actually earnings X we we and ability plan, still we about a earlier. more the certain are announced ability quite

super helpful. That's Yes.

that and Just look next it for a like maybe here. beyond? as key a guys follow-up, up moving you we change quick into Can for, to a few should out bit milestones quarter say TrueDent

That's a great question.

are when TrueDent We and dentists, from are very amazed proud It's unique in do. we going what solution. we can are are so -- you our they that meeting

as the spearhead with feel reduce X. or the anecdote, number And to from patients restorative can new you this still comfortable visits with more the to Just customer X the is dentures. will of of dental. dentist Practically, the X the an

the monoblock one, most We and best first the are aesthetic the the in market. dentures

restructuring. Those performed. have. to X for talking to teams need that the have we look to a things and also want what By the is teams. It's they way, thank record we want penetration. regional penetration the are when axes X [ But execution thank clinics, are you I So I milestone, our ] at to our I'm the that about the This doing.

that this important North is U.S. we will EMEA it to take and one and from APAC, So America, milestone soon. very

the in day. solution aesthetic the step-by-step, The -- second all that's moving labs, and credibility leading on with dentists, showing see are we are getting better thing time about translucency. and what creating it every and to talking terms and about that the we we And It's and you doing. education the starting is And U.S. Europe. are better it's the with by will institutions of when penetrating solution. the And we way, are improving

the present being also adopt which regions, world, the to that biggest going it we the having see XXX,XXX is getting clinics, expect in top in dentures. Germany. And in and IDS from many show are institutions bodies to more then giving the in different We dental March, -- dentists -- more like -- participants being late to credentials show credibility or

the up for with and just is in short, more we in as for through to clinics regions the credentials. opening are more army. But example, the we example, interaction For go have new to government, This the -- example. an we certification, get

it. Appreciate

Next... Yes, proceed. please

Go ahead.

ahead. go question... next Our

Sorry, thing. one more

So this is about dentures. our

for is a defense. government will segment case use growing. and important super and keep is growing Another us This

unfortunately, say, ]. may keeps Some going but it [

strong are We very there.

aerospace and the of are that see us in leader opening applications as defense, We strong in terms in and and you milestones of well. new put are in we front up there it will defense,

question next is follow-up from Jim a Company. Our from & Needham Ricchiuti

going I question on, I'm touched think, the to ask. actually You've

signs you're some at least in where of dental. to what respect of highlighting, think, -- seeing by I with recovery, you're seeing sound the Just encouraged you some early you're

conversely, optimistic if aerospace more [ You systems seeing end But verticals, I'm customers why that markets, on I maybe other investment standpoint, in translate where And recovery? into know might you see and a get an more defense. ] of just to still seeing -- the sense are seem cautious? little a already that's signs don't to your automotive, bit you're maybe be more of clearly where, trying some are from demand. you

aerospace, in say would and dental government automotive I tooling, and this defense, order, medical.

any the changes Geographically, saw demand -- in Helpful. quarter? demand trends any you Okay. that in

EMEA moved a it currently, market. it But in APAC. started really. Not Like it's really, hardware and not soft the U.S., to then

maybe one And final I could slip if one in. Okay.

seem you I'm over next be with area we some is progress nice this -- year? think wondering, out the there revenue any of GrabCAD about look Pro. as to to the way Just seeing in Print the contribution business

put software a that's Jim, of efforts a lot around good solution. We question. our

promising, And coming revenue rate mentioned, is very granular data and significantly. gross growing of. out of the big proud it. of around course, when very just progress very increasing. will with the the you the is is it remind software attachment highest different provide is we're I'll promising, everyone It's As and the and becomes we're The more excited that streams. very margin trend but about enough, revenue, we

Eitan? I, may me specific. -- be even Let even me be Let more

And our nice the for revenues because a lock-in in there customers know, to you premium way are the recurring selling GrabCAD. you thing are and We Pro more you have selling and that software sales. solutions with And software. as is features relationship the growth the the And we a year-over-year is more direct mainly are those great of push long-term and customers. GrabCAD,

and Streamline a We have There Print is demand. Pro Pro.

how thing, they you week, your we me, selling this great players?" me, it are put meet every software point When wow, other software. And "Can every proof have OEM good the a on nice We a ask more. I for quarter. is is many customers great software like, solution. And was our

Thank you.

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

Thank you for joining us.

quarter. updating to next forward again you Looking

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

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