Nano Dimension (NNDM) 20 Nov 242024 Q3 Earnings call transcript

Good day, ladies and gentlemen. Welcome to Nano Dimension's Third Quarter 2024 Conference Call. My name is Wyet, and I'm your operator for today's event.

On the call with us today are Yoav Stern, CEO and member of the Board of Directors; Tomer Pinchas, CFO and COO; and Julien Lederman, VP, Corporate Development.

today's I call listeners and on may harbor outlined may provided certain the this begin, also statement this release on contain in call. we remind statements that our information safe pertains Before to press made earnings forward-looking statements,

view Yoav the will If have company's replay today's Relations will call please a questions. website. be a the the session available Investor the management section press copy A the you of update, in Investor at the of website. business Relations company's the with also on begin received release, not the it time section answer of of call followed question-and-answer team by will which

Dimension Stern. member Directors, I Board of CEO the would like to and turn now of Yoav to the call Nano over

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from comes with our Thompson Edison. And Instructions] first [Operator question Katherine

I've X just got questions.

about us bit question on reaction from is, give the a could news the customers you had proposed of First acquisitions. you've your X detail to your

of in regulatory is a next also in just year. perspective to QX Secondly, to a with which from the acquisitions process Markforged just QX questions. that breakeven synergies you in and being get as X think quick to saying you of Desktop thirdly, both synergies? Metal of you where to update EBITDA, complete that's to and QX of That's be And revenue referenced it than that, that still as of the are going expect confirm I XXXX confirm, you've just then more cost a you're sounds if through what rather

question, -- because you're earlier, I First Formnext as and of reaction right customers said Frankfurt in time the show. me, asking is mean the I

excitement all expanded a discuss Desktop lot ability coming speaking not Markforged meeting Metal, to is have customers customers extremely not customers but their of line, customers of to of which I'm is the product future to I'm Nano, that excited. I'm product me and have happy only over. existing and So an of an to talking to are of lines, are

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are Desktop expect year, the transaction work finishing expect hope. with the and CFIUS with and end the to before close We the of Metal

as And Markforged. much so

behind is through. the bit a CFIUS much we are on Hart-Scott-Rodino, started process we We parallel later, sorry, KBR a went -- done. transaction, because what that is to but pretty HSR

of shorter. quarter hoping Markforged of So beginning the with still them we we sorry, to supposed December. And vote shareholder to the going of are be first at close of much -- is occur hope the beginning the XXXX. in it's Hence, in deal the to

The And I -- and so will month profitability expect especially improving. first very, will flow in flow cash. X we obviously, burning are the profitability, already be worst the flow quarter position, still much cash that sorry, that's cash cash will when few the you a see we in Nano X itself, as other companies together but in are the merge because we, good very companies quarters,

So the in intend minute are and over companies, We discussion be combined quarter expenses but their get cut and burn, will we start we to dramatically. control plan the cash already the with first to management.

So flow show when or first both. to profitability hope the of to either of you or show beginning cash get the XXXX, positive we

with next next comes question And the question -- is from Zelman from Sol Gericare.

this Desktop asking AGM Yoav, again, is the Metals elephant aspects X to right various this now is, there's the step fact with spoke question which if with speak about it now, activist closing the question merger, it and a into any on concern if these you going the successful what you your AGM. is take about the directors in right for of Markforged, vote, the killing is that aspects the next big to them shareholders? as an this the big process Obviously, would there I room that the in the that mentioned Board, mean is they're installing the CFIUS but And feedback everybody -- process? love every that. us shareholder where hear also to that the you for And of derailing us? What is does transactions? would consideration

start with question. CFIUS answered most We'll the a States. through typical questions. We CFIUS, second agency a in of the the regulatory process went already United is The

us questions. don't they told they We expect have more

Metal, in they something as answering stop finish answers the got so And unless to in the don't good, CFIUS to we CFIUS any processes questions. that are for the expect hoping us that ] it So which as question-and-answer few see about issue don't we we means with days. to [ the we there's much is Desktop this the last basically, reported which all days, came end know. But an will

do that already to a Markforged so it done have CFIUS be to basically they have checks but Nano expect -- Markforged. do to go Desktop to CFIUS Dimension, the it. shorter we in they to the from rather will because Metals with Then their I on And checks relates it's Markforged Markforged CFIUS than have

It are that through take foreign So all between X it's months. that. going are typical months X.X to companies processes, the a may

will hoping and X right months, X the that to months are moving direction. closer than it it in be to X to seems like We rather it's and

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how about this made. decisions be This about derailing. is is to So are going

understand. derail deals don't signed the legal committed the of of I even deals? these commitment can were How and you commitment. The company,

Board, you by already, in of the contracts signed have, assuming -- they could, derail were won't the then the company. having that its you interference committed deals by company by as If which total these majority

derailed this don't all. at being see So I

don't what derailing/killing they're They activist way approach some severe that taking be... to shouldn't they'll it. feel I the try that that of mean find

that also they things. problem East. They Iran They to the and attack solve cannot lot plan can the of Middle say taken claims of a

guidance, not concern at a we'd we're decisions. when helm, to that's that like following making and You're understand that, the we're our

So I appreciate that feedback.

what I'm you always the warrior for a am worried. up the always getting the morning from fighter, -- not I'm sleeping thinking a from half if I'm happening didn't not events I'm will a I then a some worried truth night tell that being unexpected. And I'm and the business. worried. in that worried they that I'm being I derail, like have after happened into about is because activists warrior could warrior, consideration. fairness. me the are in take it this makes I'll claiming

I and I check to everybody they worry, go telling to lawyers can't I Yoav, go So you have to and worry, and is it. me, I advisers do and don't

So delivering I'm that you. is message to the

the question And Investments. [ ] next [ Felix Felix comes from Ziegler with ]

of understanding to M&A All growth companies wanted X well, of really -- seem a was a DeepCube, given I XX% better their to margin to Nano, believe quarter. Formatec. XX% I the been Essemtec, Inkjet between deteriorated had revenue Global Nano here. leadership. gross has of Nano's margins have very NanoFabrica, but integrated rationale past reported it get acquisitions and gross this under reported The those don't for XX.X% as just by They

seem to didn't synergies the there materialize really So either.

continue profile the below actually So and has. of are, of Nano they now Markforged And bankruptcy. they're investor and amounts cash Desktop margin think negative burn to astronomical gross growth, that Metal, on experiencing a what for have is revenue they verge therefore, and I right currently

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I cash addition net defining you're think to that, burn In as...

Sir, what's question? the

Yes.

enterprise what's to Nano So shareholders, at doing stock for The it and how cash any continues trade for is value... the question below provided is hasn't return here best negative a shareholders?

that's the question? So

confuse a And your it an So isn't net better is it are employing why strategy that effort do in well shareholders? makes continue for that look way to a you you than defining shareholders? in almost why cash working burn actually

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So where that's about. the point don't talking know you first you're what

by than a two, the that, companies players XX very set mergers X acquiring of the they can technologies, of industry. which that in create than performance well. you're you're last in the X,XXX companies, you're you're nonexisting more number of are synergies But more XX of knowing other we is is performing company which set acquiring the my not business true the acquisitions Point customers you personal and really the improving and X for are advanced, and business acquiring and what is of years, are acquiring acquiring now acquisitions, the

and you not profitable by -- you're getting fact Europe of that many lot businesses company, the management to company size create a of is that each acquiring -- not paid and the and low of price returns X rid focus price for you getting one fact way of the low enough rid paid number combining the facilities, in And them them properly. reducing that place, shouldn't profitability -- in companies a I of to by is in rid each adjusting and now, getting companies certain higher you the the Because the merging number say you per in are of -- value now a by headquarters headquarters in creating together on for you employees and their reinforcing X spite justified focused you're Boston to that shareholders. have changing

is this something principles of Spirit fact of point lack that me the give and I'll knowledge Airlines, you demonstrated So you else. the tell example second and you where an

all, First I the you gross you of do of of tell before, before you grow. margin the And mentioned didn't this, the margins of said margin fit not Nano. gross Nano minute company gross the

gross going of either. Now Nano like This is gross Nano, which you said true the margin which gross is margins. some margin, of of is higher that average than not that and businesses, close margin to with them too is is those have they XX%, the Markforged gross lower are different of Desktop Metal it kind is higher. the to because and It they exactly companies. the If with we gross have true margin low take

both is Airlines, the and Thank with Airlines strategy, if an and you you margins, from improve change gross you out get combine you to losing margin businesses so businesses or get know justify even company, management, merger, The going that industrial the your the continue when very goes performed business, don't Airlines the not them, we are me, you airline let merger Spirit XX%. well. performing you either reason merged to after stop those the shareholders. with yourself were you me that an well. something. beyond change whatever. gave I don't United Continental as gross to we'll remember the very they much. as the businesses above example company and was a tell we're the Continental combined Last of to Those how fit that

Next question.

further With company the no our like questions, [Operator for any to remarks. concludes this turn to I would closing session. back Instructions] over question-and-answer conference the

Very you I conference you questions. for the questions. for thank again participating want closing, interesting In Thank to today. your in

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hope you us Thank very will you travel I much. join this in And that shareholders towards trail success. and

conference has attending The concluded. quarterly for Nano now conference Thank you Dimension's earnings call.

may You now disconnect.