Markforged Holding (MKFG) 6 Mar 232022 Q4 Earnings call transcript

Greetings, and welcome to the Markforged's Fourth Quarter 2022 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Austin Bohlig, Director of Investor Relations. Thank you, Austin.

You may begin.

afternoon. Good Director of Bohlig, Holding Investor of Austin Markforged Relations Corporation. I'm fiscal our results fourth to year quarter Welcome and XXXX conference call.

We in our Mark Schwartz. market the CEO, Shai results release President our is discussing me after CFO, and call With close will issued today. and the our Terem; earnings be press on announced

are the estimates Before statements started, to like be be Harbor I'd we uncertainties forward-looking and materially. the Markforged Litigation will historical call other actual during revise are Private XXXX to except forward-looking contained are statements statements. statements. statements differ and Reform These XXXX. views this remind that this making results by made to to statements, intention provisions March of or Act any fact not which as deemed get to call represent risks material that could required X, should Safe Any that law, everyone include subject pursuant in that Securities to cause of and management forward-looking statements obligation, or as be disclaims management's of today, update of

investors.markforged.com. Also, schedule results non-GAAP close the a course There's financial versus to reconciliation can also issued which during today, our refer our certain at measures. of on today's call, non-GAAP press in website, currently the market available GAAP release showing we'll after found be

call turn the over to of Shai now Markforged. and I'll President Terem, CEO

on for everyone, us you, our XXXX thank and joining Austin, you, earnings QX Thank call.

our our metal more our Throughout to with worldwide saw of and the the profitability. on using floor keeping And Forge composite grow Digital factory ended share we met we earnings a despite mission manufacturers quarterly their on solve for demand environment. operating controls, continue cost solutions. the record critical combinations us and more We target year our revenues path effective strong as advanced per challenging to XXXX, applications metal with

we as continue in target to gain our markets. our differentiator be long a powerful fundamentals business of further term The momentum

supply chain industrial for of Additionally, production. been their need chains through a manufacturers shortened supply catalyst point has disruption growth as

I the make us gas the example a address in Digital Digital Works. vision to A couldn't industry. Dixie market available to more the harnessing great user flexible be to customer more achieve excited the resilient about edge $XX by opportunity globally and today. our billion using Texas innovation Forge solution Forge of competitive of Iron is to and oil the The an based manufacturing

too the an a make o-ring, clock. to a less better that to designed part their engineering since around and expensive. Instead, parts using quarter of supplier in version would on-site their needed producing Dixie their and expensive made X Markforged expanded When price Texas XX printers XX critical then they products the change, of have printer our fleet the

Metal Dixie need with how solution. solution of now advantage expanded their for CNCs. can Markforged, And early of Based industrial further example using with competitive with the success manufacturers. our critical at producing are a on This X instead our a production even great is steel point be onshoring of traditional parts

our with mentality customers by macroeconomic wait-and-see the manufacturing uncertainty. a feel still are we said, who that With concerned

have we see growth we lineup. product to yet such, As of potential realize as our the full what

still the up cost world will cycle, once we're base growth to bottleneck While to the have path we and we actions this our gets in required already taken and that of profitability. accelerate, are our ensure out confident open will the our adjust

burn. million and pipeline in two in effect to operational in our have XXXX, a structure the R&D. after resulting increased million quarter acquisitions Since our XXXX, reduced taken of decline And XXXX. $XX the second $XX out expect Notably, leverage of we M&A through in over in completed while million our cash giving nearly innovation investing our $XX cost we costs we

regions and Americas, the XX% our are EMEA the year-over-year. near fourth growing growth XX% in purchased and APAC in strategy in with term executed in APAC of revenues as we both the delayed we EMEA on result a macro decisions in experiencing uncertainty of quarter While XXXX,

that growth years Americas, in outside benefits We onshoring these return both our In taking anticipate will regions and again to model are come. in of to we go-to-market anticipate growth achieve the to accelerate actions the optimize of XXXX. the the to

meaningful FXXX our made materially through addressable XXXX, profitable a In towards We the for expanded the of Digital introduction Metal. Teton acquisitions market Simulation and achieving we organically growth. inorganically progress and of

growth operational that and we are in enhanced offering via from to couple to confident get We cost next product the accelerated strong until profitability. build will leverage continue our see we years, of control

manufacturers we high XXXX, for began production ready solution resistance. and industrial of requiring composite largest strength commercializing In the temperature parts our FXXX,

As we our FXXX the expectations. for mentioned previously, has demand exceeded

its multisystem customers. In multiple from for year fact, of in first availability, we general FXXX received the orders

ramp We to continue the levels FXXX of meet XXXX. capacity expected demand in to

a short in resulted of gross our target. in cost were of demand This while robust, margins But FXXX we decrease QX. our was shortfall

expect QX next and in improvements XXXX and We throughout year. to cost our reach cost target the production in intend

our strategy products our to expect beyond. acquiring market executed and expand on XXXX we successfully addressable in M&A in opportunity that We with two XXXX companies

a will removing critical The adoption. manufacturing to confidence enabled first, barrier meet have Simulation applications, additive certain Tetan a mission that manufacturers specification key part to greater their in

a positive our Digital We trial free part integrated has date registrants a been software with and feature and into of our QX. Forge to our customers for in out from the customers to response Simulation as in The rolled all known simulated the thousands production. to beta technology of prior

of component simulation launch subscription we QX to offer to offering expect SaaS We this in a that plan year. a tiered as

Metal In of lower part. high use and use speed high to CC size per precise per to up into production end up X,XXX metal parts and liters term the QX production the Digital volume a hour for XXXX doubles previous the growth which to XX addressable second throughput model market expands compared of to launch and build long closing QX metal to acquisition, plan our ensure cost we Our key XXXX, parts, TXXXX, strategy.

growth to manufactures edge has chains open XXXX a great from for comes cutting solution to the surgical Initial Markforged their customer parts markets manufacturers metal how systems. and Serial life make in Distalmotion, production we beyond. our are robotic of example from solution new been life is procedures. for is revenue our medical to real expect based digital company our is changing in of in device this a reaction us. needed positive gives used flexibility supply that that jetting This break solution A our customer line and metal our Swiss example contribute binder medical great

Manufacturing has changed.

manufacturers innovation the as Forge to our balance inflection business deliver fundamentals. on manufacturing we at to use execute solutions our profitable by confident and and point strong in our the flexible Supported Digital resilient strategy more towards sheet continue pipeline, robust are shore. feel our and We for growth

Mark for I over call our the will to the more turn remainder now of who With the offer our that, year. and on Schwartz, details CFO, performance guidance financial

Shai. Thanks,

to reflect results note well for results full comments quarter our financial for Please turn year the my that the as and year our fourth Let's non-GAAP fiscal XXXX. and guidance outlook. as of our XXXX,

to to our press release, with afternoon commentary. assist our reference, non-GAAP my GAAP issued earnings reconciliation includes posted our your Investor and to this Relations website For earlier

quarter $XX.X XXXX. with the of revenue compared revenue was Gross the quarter million quarter the XX% of to quarter fourth for $XX.X XXXX, For fourth in million million profit XXXX $XX.X fourth increased $XX.X compared the million for XXXX. fourth to

we XXXX. compared for to result, the of gross a the XX.X% As fourth achieved a fourth margin quarter profit for XX.X% quarter XXXX

development were expenses XXXX quarter quarter fourth fourth the to $XX.X million in compared $XX.X in increased with the expenses XXXX. in $X.X million $XX.X fourth the for Operating Research million quarter XXXX. XXXX fourth and to compared the million quarter

or per average XXXX shares shares. share based fourth was for $XX.X the for on quarter outstanding weighted $X.XX of loss XXX.X million Net quarter the million our

compared our For APAC to increased the growing revenue $XX.X for year the revenue hardware, and and services growth for EMEA and experienced the million compared million fiscal with We XX% across XX% as year to the full fiscal XXXX. regions year XXXX. respectively of with XX% year XXXX, consumables $XXX

will XXXX $XX.X profit year to reflecting prior million year. $XX.X XXXX, for gross in the We machinery sustain year our million serving critical maintenance, XX.X% cost of production. part the a automation, for we to margins and in fiscal gross a focus control For and on demanding margin our compared markets believe, result and as our compared repair XXXX gross mission strong profit and was fiscal XX.X% operations

our year For were XXXX, operating fiscal million. expenses $XXX.X

to we our product time thus Our product remain Forge research our in release to our teams innovation to were expenses in $XX.X our value up compared system of strategy platform Digital million as ramped market. XXXX market software development, R&D our increasing consistent or with addressable We commitment new with development committed through our material, accelerate and of with increasing the million to XXXX, additional customers. every $XX.X

the XXXX, or our average shares per share For million outstanding year shares. XXX.X fiscal on $X.XX million loss $XX.X net based our was of weighted

our onto guidance, be $XXX revenues $XXX year range the within anticipate XXXX million. we Now to fiscal million to of

economic this continuation macro challenges. cannot environment, and predict guidance the a existing the we assumes uncertainties As of global

As our range expected will in non-GAAP with gross exert expense to our disciplines fiscal be expenses XXXX gross continue to expect XXXX. I margin year leverage to strong mentioned of show we to the before, XX% we in over margins The XX%. sustainable operating be

XXXX, impact for of a as a in million acquisitions year. the expenses $XX non-GAAP resulting loss the including We completed percentage expect full two in revenue to range the we $XX decline to in million operating of our the operating of

range EPS Finally, to for loss year the to in $X.XX we share. expect non-GAAP per be $X.XX the full results a of

his in of acquisitions Since our $XX cost after removed Shai giving of XXXX. remarks, in completed mentioned we to the quarter two approximately the effect As million have earlier structure second XXXX,

first not a are our and M&A. from focus and important rationalize on most customer realizing prioritization However, priorities our expenses our our moats to cost rigorous operational synergies result through realigning We facing operating a regularly through controls the activities, these leverage of of teams initiatives. simply cost innovation

Further XX% working potential our in to from approximately capital higher $XX instruments. added by XXXX, cash profit and expect our on realized yields improvements and reduce increased This and we or activities cash million annual inventory excluding any short-term be gross through burn, $XX will reductions, revenues, million. M&A equivalents to

that and balance to go-to-market of supports innovation infrastructure approximately cash We with million equivalents invested objectives to investments. and create our We and XXXX, end growth. short-term a for XXXX long-term in $XXX and an heavily in XXXX, profitable expect

of believe our product plans controls. cost particularly given roadmap, We continue to innovation disciplined and achievable the are our strength portfolio our

future. for We are the excited

concludes please That prepared our questions. up open today. for remarks Operator, the call

Instructions] Thank you. [Operator

Craig Our first Capital from Please Greg with your Palm question. Group. question Hallum with is proceed

you what guess large. quite a I'm geographic was across Yes. with various just Good actual in the bit which questions disparity more if the detail little for the on the EMEA, real can starting just was off I curious everybody. standout? saw go taking Thanks here. afternoon, you the specifically geographies, quarter,

Sure.

So see winter as down. we during prices SMO shared, than still to I we in -- and that Greg, recession. once actually that the went would the in sensitivity manufacturing we clear EMEA, I there think think But U.S. view energy the other manufacture inflation the

into Our customers came back work.

We I also helped. changes there there leadership, also good very we entire a growth which had think the some portfolio. across on the saw And good product

a after usually the in all say, it's And I a would in business good all, in Maybe growth the worldwide. it's we've I But think year Australia. world. very I them, there the rest growth for of as decreasing I seen usual. still think what slight, think APAC,

APAC for thanks I'll were good and will And anyway add little we these to XXXX. a the both and regions unplanned of question. internally Greg, anticipate growth for that achieve again QX. in us EMEA in bit,

in in and automation APAC, seeing in success automotive. factory we're Specifically

board. see in I it's We the and cetera. automation et think defense in in more less EMEA, it automotive, across or

curious whether the interest of helpful. the that's sense That's shipments the just comment terms FXXX, any that geographically market seeing year? I'm on back but have of And ties specific of where And do last guess this can whether be somewhat you I existing geographic question, customers, by the end you're versus breakdown to you in maybe into vertical? or most new

for route, demand and very materials as a product more it's even FX strong expected. beginning which with Yes, think FXXX. differentiated, U.S. Yes, demand add a because better would see still feel we to say And believer win the continue the even that this it. are we I still has some just very I orders. the we multisystem see big than strong is especially capabilities that into with sometimes we in unique

And of those orders in just multi system orders the to were to, those terms be you initial that clear were follow-ons? multi-unit or alluded

Follow-ons.

moved expected the year. it's even production some And within because fairly was are proven into aerospace applications, higher positively but surprised process level the to So that's see that why longer, certification fast. we little we mainly bit a we into going it cases be first

So this a is with price bit positive why the little here. we're

will of I Best it there. Okay. Makes sense. leave luck. Thanks.

Thanks, Greg.

Greg. you, Thank

you. Thank

next Cross Please Suisse. with question Our from Shannon Credit proceed with your is question.

is conservatism guide? maybe revenue expecting much for discuss Hi. Shannon sales what have improve? is and will follow-up. Are And get better? of Ashley you in play Are things Lessen today. of sort you I This saw how before on into out cycles could quarter a a you your Mark, assuming fourth lengthening baked then you

Yes.

for I the think uncertainty in - our reflects the question. the we're thanks market It guidance, Ashley seeing today.

share you seeing. heard see in us if we about could think an past. But want with you've the to the talk economy improves, in what certainly all outlook. I So we're this improvement our We

today market. seeing the we're what in reflects this so And

guidance Okay, mean, But for year, just surprised through coming better that is understood. Supply should for and margin walk down yes. down. the gross I could somewhat 'XX, in slightly. the takes chain be input costs you're gross And guiding margin full getting and then is puts you for

consider the normal surprise, a So we do for it new just way which what's XX% the to can good, high should still bit but you the get back lower XX% then Or you forward? think what by Thanks. is than just was the XX% were expecting? And offset? we going

Ashley. Thanks, Yes.

reality maybe this the seeing uncertainty. again, amidst that I'll today think, I reflects we're your the second answer question first. macro

XX% the we've as previously. said gross term long target margins into So expectation to returning range continues be our and

that So of us. changed. changed it has It's hasn't timing the that for

of be remarks, in FXXX terms FXXX, and mentioned contributor It year, we X before cost inputs a out. us. a where take point That our the And about on margin expect for to for percentage of his margin in to on was the the flatten the we've about talked another impact think outputs gross year target against in to resulted so that. it significant again, Shai prepared will I gross FXXX or

than lengthy supply to machine relieved. in coming the pressures supply and in continue we see does beginning you while -- it loosening more up, part to throughout line. We're machine chain to think coming I need are in to the freight still delivery costs down, to maybe challenges of freight a particular warehousing back continue order only a But -- beginning have been it certainly down seeing be while one has a chain, of that out. delay push of variety

So it is still a challenge.

be continue We persist better expect to on sure chain. in these to XXXX challenges to supply getting the absolutely

you. Thank Okay.

you. Thank

with Our next your question. with Brian question proceed is from Please Drab William Blair.

taking Hi. questions. Thanks my for

aiming EPS? specifically XXXX to profitability me basis we're Is just clear but in profitable be remind an just for said think the first about profitability, on next talking that we the of more is can couple or what target you So on still EBITDA are you of that end years, I it there? and

Yes.

moving not of we're that before said we've off Brian. So statement,

to committed reaching end breakeven by of XXXX. the we're So

be would in we the for of for for full opportunity I believe, us an future year not that fourth to Certainly is expect quarter. the for profitable think quarter years. but 'XX, the we us,

So that the continues headed. we're to direction be

we the time. had about cost talk place. Again, all good controls it We've in

continue of target. to like came changes to in can environment public. since For feel meet through we manage some the we macro quarters And number now, any significant really we that

more then then running supply XX% the just from with about FXXX. here 'XX the company the into 'XX Okay. XX% gross a of gross of could trying margin to understand we the chain, the And sources then expecting margin improvement the at going and cost of you're little originally goal just can like talk it's in where was and bit and come

bridge could If now. is this from you expectation cetera? at FXXX, or or XX XX% much that to of kind for XX original XX level just How year chain, how the supply we're et much level

our these you sheet. see them. normalized that bit the can product the time point solution heavier they in Brian, thanks would I industrial a for more think more, And real product do need. as the perspective to Shai, are our say, this help and is customers we can more, question. until Look, expensive. on moving are production that portfolio, upstream our on heavy I is of into we from - And get little are And new from balance takes cost it introduction more solutions heavier and to the of

we so, already little see we the a longer than And light. expected, FX but money is the bit

And can for just that solution X,XXX very, a But the of for binder hour, margin million action do XX% now that the solution $X.X PXXXX, parts, ensure impact took we believe metal right we we is both fast have which are also them, back it's are to see that will think suggested do in some to with as jetting there. the very launching behind you over go we new per a we Mark the I gross up during scenes XXXX. working already XXXX. to plus product

maybe support you more give I'll in Shai's Brian, more data - two points Hi, concrete comments. of

answer and cost So of yes, pressures a and we that of delta of chain XX%, seeing. think I question equally the and divide between to that terms XXXX, X% improvements supply in XX% expect inflationary maybe And FXXX on we're you - that combination your almost between can FXXX. specifically,

it's global the as We act are But to more headwind some than chain modestly pressure and there that continue will continuing if be will pressures supply to expect previously. a will. it still even

in see prepared be of our we flat due we slightly QX about to year maybe to QX, in that lower expecting talk this didn't down QX. revenues to typically an this in remarks, As our margins example but we're

sort trough, our is be XX% that, having XX% gross of you this significant. the XXXX to QX, beyond. to is then and that we said the cost below improved sequentially previous this but often As will business into translate know, improvements QX expect and margins throughout in seasonality

helpful. Okay, thanks That's both very of you.

Thanks, Brian.

Thank you, Brian.

Thank you.

Troy Street with proceed Capital Markets. Lake Please is question next from Our your question. Jensen with

congrats good fourth gentlemen, here? on the Hi quarter

Thanks, Troy.

Troy. Hi,

Hey as Two always metals how qualified the carbon I'm sales, talk X little all so Metal metals been? that also? tie I at Shai, channel Metal to I here, selling mean, platform are reinforced but has this company Can a want you maybe currently specifically. or want has bit Metal channel kind your successful XX, and about you products? I you to into metal thought the - of Digital how Mark fiber, is ask the effective Digital of on the about the

say would as our to I And usually discussed in Sure, replace metal are we on focus we production, Troy, parts. is industrial trying industrial before. production,

we need these of composites through very with high to strength, or be high they them cannot steel, composites. replace very parts, some with that you especially of Some and temperatures if have to advanced will metal advanced go get

advanced in the our Of still is solution this majority composites. of today

with our maturity So volume in portfolio, of as customers solve a increase solution metal to still hundreds the of metal production and thousands very, part of is metal advanced side able especially to composites. our most into application talk it. the it we our with still you are when And parts. we see high intend problem can we PXXXX, very with from it, about or come of and important But

that kind to produce processing. way, be after need of work you or precise need very very, in for with post minor and very still a That reliable fancy to

because, our metal. is is very And a it's solution. are right solution, composites into very best metal sometimes element sometimes we advanced going floor, important. the of still So, big the manufacturing very, It's

it that but your Metal its you or just Hi, too I you does with Shai, on me, work see partners? new furnace had didn't slides, Digital investor own remind can

print, technology work on and printing the is some partners the et that produce and We the currently with center the of the and develop the before pocket. the powder, work and front. of for We preparation after cetera,

the on Okay, materials FXXX. are perfect. just platform? Then switching two follow-up qualified gears currently to a that it on just Is

more have that. than we No,

the materials. of have We Onyx some

ULTEM. the have We

continuous We have to continue And more Fiber. materials. we will add

specifically high-temp in something outside ULTEM? guess, I of guess, I

that the You we but with hard FXXX chamber will a you, releasing and the allow because can potential. of new to a did me not tell materials has stop it's and into you please lot I share -

of So will time them some be high materials.

Okay. Good luck guys. Understood.

Troy. Thanks,

Thank so much, Troy. you

Thank you.

from with is Citigroup. Suva Our your with next proceed Please question Jim question.

extra you with expedite On you. that, you mentioned you end like said was margin gross the understand had product with believe were FXXX? the reworking some was associated the secondary Can prepared that for market, Thank shipping the the to it rollout your what you to parts like was installations us or in shortage or market had or were was and acceptances challenges help the or why comments, it or Or challenges market? I you go scalpel FXXX. to

Thanks the Yes. for question.

in using introduction, until scale, takes it because cost parts, building usual which get the don't stabilize of And you And was to batches. think more still a even in there's to bidding usually through the the supply you why just big efficiency, to more combination see scale definitely first, XXXX, and for smaller produce XXXX. we I you in wars, challenge. the get new had parts. the don't you we pay than think through that, the beginning and lot get a and the chain go than up batches, time I expect product the smaller But the that's product

majority light that see into perspective. But XXXX. that's it, the the of think I say, So we I going would from already

Yes.

add to more bit, And for a thanks question. Just the little that, color Jim. to maybe

expected. We square we mentioned middle is $XX. somewhat, of I a that think to should and but us year were degree $XXX number one, greater part we than last hit cost this inflation us tempered paying

absolutely that nowhere but back come our we're costs yet. of near on target down, is material Some

production at those the for of through you certain reach little to And buying when to a procurement that material all cost next point before cycle. materials have further, you're lower on you a bleed bit cost, materials a

those inflation we then late through The due where to yet but our be months this we're both it want be. over time second XX efficient labor there. get need the in the last to some yet. going labor. Isn't to is year. cases, year we were to And as as in increased cost of of there's thinking we has path it's And take And last to as forward us not labor

you. then on I'm guidance, does I to in PXXXX, the inefficiencies the question rollout the margin rollout deck and to the reason the ramp FXXX look slide the rollout it of as is include expected? of as the wondering And ahead can as for number that. just your is about the a full expected similar about of just kind we Thank year we rollout that -- monitor asked it XX Or it so have and smoother out XXXX sales it PXXXX? rolls

yes, be anticipating product also should lower that for be your that to the because in both are unit So would I question early we on. are volumes ways us it answer expected similar, expect smoother but to

materials think different we for product little rollouts. will that I So just do be procure for how bit a than we other

that well just giving slight as expectations community of Is about I'm last investor guidance being as with Great. sure quarterly details, appreciate. more you're I'm more I year is, it helping kind kind able chain it. curious will aligned to how the better see full see calibrate guidance. or investing you the my of giving And due supply additional to which better change be of question visibility,

Thanks, Jim. Yes.

that undertaking we're the and you've innings. annual still both really and in to and continue term be on journey I focused heard talk Shai the long us term, this about So even early long we

and little we've of on a the our think color quarter. bit annual on your plan intent focus point, So year. is forward gross other and areas to really some I given go to we and on maybe on the our margin But focus

current further. beyond, then plus we that XX% I about a XXXX this take gross to getting and of we a step mentioned back maybe I'll When think think year margin.

think plus also to that growth. XX% we year-over-year will We back get

past from supply level we're -- about our that seeking marketplace. as increasingly outlook. increasingly to manufacturers the paradigm with chains customers, uncertainty in see the interest we excited but shared seeking seeing in just shift the only of more reliable as to resilient, well as and products, we've current said, the new the this get Given be demand existing from not We we've more we're want very this we products

And mentioned part Great. is, my XXXX. last profitability you

I year. the the you said breakeven EPS? Or clear, think EBITDA is XXXX, 'XX comment? adjusted define breakeven on And or fully of you operating full how income do end an to be actually not that or

We'll for full look year. QX the that not as at

correct. looking a As at basis. you it said, that's on And we're non-GAAP

Thank Great. appreciated. for much you so That's the details.

Yes. Jim. Thanks,

Thank you.

Thank you.

is Our Dilts proceed Noelle Stifel. question. next Please with question from with your

Good guys. afternoon. Hi

Hi, Noelle.

like sort Thanks. about toward as cash managing thinking that additional move as hand-in-hand. Hi, year? flow you're or expected to you you cash kind of And balance EBITDA move sort But sort trends in the your I recognize will and of through you're give you'd how thoughts where any how the of guidance XXXX? thinking on can about us the of be of we look the end

Noelle, thank for you question. So the

back with think we're it. see, confident the as I think and the the And very I of to are don't build fundamentals. about think we they solution. resilience for still all are the And can changing maybe better you more coming into even needs manufacturing part we insurance

to there the I took right around of that, And on still adjustment yes, to in this 'XX know is With uncertainty we believe this we cash looking of materially year. very before with Mark that shared as strong before. you during reduce we before, burn point the will some inflation from ensure sheet. we're can already cost the that the recession. as comments get We the together breakeven see And shared that to basis end a discussed we balance

currently million versus year about [XXX], about finishing burn expecting year So million $XXX this about we this if year. we're are $XX rate with last

portfolio. this product in continue So of the we it's able cash will once new the with the be growth significant our to burn meet will we potential full believe reduction and

you're anything And on whether Okay, front or investments? prioritizing investments, of your just any excited software that's the highlight in how then of on materials of sort you terms for can R&D sort of hardware sort great. 'XX, Thanks. terms thoughts about in of Thanks. priorities things we're

Sure. Thank This you much. great a so question. is

see can And the to I more so, or investment. doubled, innovation. than outcome you of years you than the of a And we're as more even our own it, that. strong last pipeline think, two So take M&A R&D we over it is very if

can publicly to the launching a the pipeline already almost it service we intend simulation it's beginning. we we our believe probably can model PXXXX and innovation release But product R&D, our putting assume starting So and if a size the before new in tier more see that only with every customers. year is into portfolio launching you into you with product and we software that And accelerating. invest shared year. we are And

coming. it's So

So when and have we every move are. very XXXX. for we the real help to really point year manufacturing in on coming our what our to need to of About production very, we ability wherever are customers, see excited this they

much. very Thanks

Noelle. you, Thank

are back you. for questions no Thank at to floor Shai hand time. over this further to the I'd There like closing Terem comments. any

great us forward everyone a Thank very you for joining year. and looking much to

conference. today's concludes This

lines You you at Thank time. participation. this for your disconnect your may