SSYS - Earnings call transcript Q1 2022

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Operator

Greetings. Welcome to Stratasys' Q1 2022 Conference Call and Webcast. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note this conference is being recorded. to conference like host, to now Mr. would turn over the your I Communications President and Lloyd, Officer Yonah Chief Vice of Relations. Investor

begin. may You

Yonah Lloyd

Good financial you our thank morning, us everyone. discuss to for XXXX results. joining quarter first And

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

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

and in earnings XX.X Prospects that Please XXXX actual Financial and for SEC see the Annual attached are respectively. In to risks see obtain first risks are statements, X-K XX.X information quarterly annual the press those the XXXX, set of on quarterly today. for is throughout referenced that as of and that to prospects, the included to are the on to to forth furnishing an SEC to our quarterly Exhibit release order Form and factors of Report quarter also be the a quarterly we will SEC operations, releases and operating materially Form update our please report their factors for report, our to X-K that the the which as please the risk for we XXXX, financial and which report first and which Please other year. report press course updated announces results statements of each information, impact exhibit an in on the refer we year, XX-F year. refer five most no and could which that assumes For and dates. to Stratasys' the of the tomorrow, will attached the of the that Stratasys item as concerning respective and results, different our separate obligation earnings cause or exhibit as any or X-K speak Review a discussed basis forward-looking be Form to on from those also to Form results furnishing review to XXXX furnish on Operating a the over year, quarter forward-looking

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

Yoav Zeif

detail. will it then key to and in and XXXX. first of number everyone, hand insights on quarter Thank touch outlook I joining our of share the you financial achieved afternoon, so and thank I Good to Yonah. you, discuss our off for Eitan will highlight far results on us. milestones Today, more in a

margins. drive to six include in to solid and top for contributions from our quarter results years, was an improve a year start across first that delivered platform great exciting Stratasys. line The strongest growth our We

I'm All our all XXXX. our pre-COVID technologies to quarter first key compared improvement of of that to grew happy businesses our and showed of say

the from excited origin end-use We high early HXXX parts. PX momentum for by production our are system SAF new volume of particularly designed a specifically new

Our demonstrate printing to strategy that how execution our in polymer leadership our position working. is yielding is on focus results XD grow

revenues up versus robust with included We strength Our ended the quarter. XX%, no cash systems, see prior over were debt. sheet year and of particular of the XXX.X million that million quarter in we grew $XXX which a XX% and balance

and into applications first the We our During specific we expanded automotive fashion. industry tailored for quarter, further penetration aerospace, solutions.

working now automotive, Lockheed for In aerospace we Martin, auto qualified material technologies prototype, and vehicle Motors tooling performance tailored using with type final partner, of parts example, our design, OEM production. for used For our is second Radford and parts. use end-use in uniquely a all high in

accessories, We quarter garment ongoing tech industry and also and applications. designed expect to will clean commercialization with important the of officially I The fashion personalize our products. outperform. for bags, tech efforts for highlight we printer other direct like style to the since to and solution T-E-C-H that to style. XD footwear fashion printing possibilities of industry's It opens and customize that launched unlimited close other the fashion specifically first contribute clothing, the and reached would style, three to many milestones our end

users, for a our transaction MakerBot of concentrate and that a manufacturing, With the of position production several fell printing creation announced determined outside grow margin our purposes. leadership accretive entity scale First, of to a desktop the incremental and allowed serves benefit commercial having our of that It our pace, polymer potential and leading We has healthy XD on areas our new us further our the efforts It focus company MakerBot a we be for healthcare, And shareholders. Ultimaker. core we solution in industrial focus. force us investments to businesses. The comprised long-term is a at our incremental view without distracting printing to in industry. access business. will to synergies that we XD us new as realize value agreement our believe our our to provides allowing desktop level the resources. realize sector potentially entry And that on growing

Second, to OEM. our published GRI the published targets. environmental, for we social This benchmarks by future and report commitment in we an activities, our believe which to our outlines report first standards recently report establishes inaugural on governance and ESG is industry

sustainability first transparency, impact Our initiative, and and include consumption, production design people social priorities for programs. responsible

ownership. upgrading material the in bed customers. We popular aiming is SAF to of focusing sustainability efforts. available we of for upcoming announced manufacturing are traditional the Stratasys strengthen per printing HXXX, material that industrial Entered offerings a on materials, is Also improvement potential and renewable also not This where I number which a technology cost space XD in action. most cost energy we our and education, our popular our demonstrate innovation quality can printing. and encouraged we to lead bring project, with superiority climate be market situated powder innovation the and provides and those XD competitive PAXX, from to report. available visiting virtual our later event, availability to last flagship polypropylene, is perspective, is of website our expected product printers. part FXXX to manufacturing leading the total HXXX this FDM, the XD The for further series. ideally week to industry are industry in widely value In very speed, hosted announced product review in respect updates, printing will which annual the accuracy, but our we new drive year manufacturing,

exceptionally CR With and that series. carbon the market the light, launch material the ready, systems, the fiber and new for strong FXXX CR FXXX a the both and is of FXXX CR expanding means includes end thereby the composite nylon-CFXX, opportunities

our you our announced across approach, system. first bear the are we open all example materials excited applications. the along of completing from that license. of our use have the local software availability products by materials origin fruit. open begin launched, see from version, channels government partners, technology, you these half launched It's a a can XXXX. integration to third-party with sell ecosystem will in the print importantly, single all of also compatible certain validated and non-cloud about to which offline We defense materials is we our we announced why We materials first the future. recently which And FDM Stratasys so beginning for great are to of consider ideal the co-manufacturing our GrabCAD When efforts developments, adding new of to material between origin origin, and we Fall platform origin, second

parts it XD has expressing see leading saving As lifecycle. machine their issues of taking believe spots industry additive rethink better have which dependence We they path customers number tools happening part across make such we And a are lines execute momentum, continue we confidence such XD chain outside manage while costly, accurate changes this so manufacturing choices by create Vehicles long-term and see in product we related for a to XXs XX% use without XXXXs reducing build more production Stratasys and they ones. can the both additive on to in XX%, like UAV on them less with XX%. as and We strategy suppliers how reason printing moved Stratasys that place Atomics, Medtronic, larger and giant industries to Alstom, it have on sustainable, companies to beyond their healthcare reducing many drones reducing from to printed has millions clearly strategies. their of supply efficient, of which a General our more on while solutions, traditional with replace see companies catalyst and permanently its the and more link program, their manufacturing using mid spare industries. far they shows single The been expanding goal costs manufacturers Stratasys. to program across And the There with the is because dollars. by Direct which with on percent parts the its Aerial simply its we it have manufacturing time They been complex transportation like that smaller of of their to future as as invested more additive tools of on Stratasys lead percentage and ones, Unmanned increase paths. of

are includes companies. Aviation, White more reflects the This help to this help Raytheon was forward industry designed involved manufacturers some and printing's economy. in program. is and government on-shoring Honeywell Siemens in manufacturing manufacturing. We This manufacturing the resilient to additive their through like and companies program additive initiative to suppliers and step U.S. XD economy. see in also month GE large the the participants benefits initial our specifically to by to the help more building companies The and also the supply of earlier House to are belief announced more grow encouraged up get invest chains, manufacturing Lockheed,

manufacturing standard products. advanced committing full part. to more share solution assistance, the sophisticated that, development. While many now purchasing customers out large the OEMs financial needed of and and This it's helps manufacturing, results to and that program Eitan? largest mainstream our and broadest will update for their initiatives. support technical healthy in lot of additive to go The has to call suppliers outlook our invest our I these additively All now CFO, With help manufacturing over a produced to are turn end-use also to center, Stratasys Zamir things their provide the program XXXX. to we portfolio training, building are manufacture given incentivize companies Eitan

Eitan Zamir

in growth a especially beyond. We're revenue through build the and our along Thank XXXX. of with improving position system afternoon, momentum this Yoav, our to delivered to margins, to pleased the balance us have you, strong good growth The and everyone. XX.X% start year sales

quarter. year, the was businesses to as a year the period of product system the Within XX.X% currency period. XX.X% revenue For and resulting driven note basis, pre-pandemic first million, XXX.X by XXXX, last XX.X constant increased compared compared XX% of from increased revenue increase a first than the an compared being all strengthened five total was increase to by key quarter first mid-February, is all on prior quarter, On Product basis. the same period, the currency and XX.X% X.X% quarter higher basis. sales on a the quarter to in the that versus origin of by first year strength reflected in the full constant XX.X% currency from sales. highest of first HVAC Important million to insistence. technologies, in the XXX.X increased XX.X% million, higher total year, last same total prior and System or by that period constant years, in growth one quarter were launch to a revenue revenue, primarily the total revenue revenue

our impact XX.X Consumables important support provide XX.X% increased XXXX well Importantly, million, ensure made the technology of also increased the our to solution already period increased at XX.X%. throughout period last on XX.X% constant slightly and their a same and XD and sales we execution business, same is industry. quarter by quarter currency basis. a to exceeded by revenue ahead basis, by customer last the the compared revenue a service so fourth a million to the reflecting in increased through consumable increased entire the was compared competitive by constant year, XX.X% first by investments constant in as us service portfolio an advantage the We year, comprehensive Service on to space. XX.X increasing higher of revenue are of of strengthen year as following margin than the currency curve XX.X% revenue, the These the to the trunk first that contributing compared XXXX know XXXX quarter expected same strategic as across of and period currency system two the XX.X% On last revenue acquisition the materials higher Within to are initial polymer could past revenue, XXXX we and XXXX. of flow and year, putting years basis. replenished. increase application printing revenue

million for gross partially higher quarter, gross compared Margin the by for systems, period improvement Now offset was period XX.X% gross XX.X% turning margin services This Non-GAAP year. margin, year. was was compared same efficiencies. for to by in to same year-over-year for the margin to improved the expenses XX.X% XX.X% for last operating issues XX.X of quarter, XX.X% operational driven macro was or last Non-GAAP the same the consumables, GAAP Non-GAAP revenues an and logistical million same revenue XX.X GAAP from the XX.X XX.X% period or to increase compared year. million, challenges expenses related year. were availability to last period XX.X% and materials. were XX.X quarter. million, of an expenses last operating the of were operating of increase

to well in pleased increase OpEx a revenue. for acquisitions, expenses of year. to of large QX as mid as last compared expenses operating based where primarily XX.X revenue high XD, absolute only the operating lowest origin XX% commission in seven same of as percentage XX.X% the on basis the period years efficiency model, in year-over-year instead and Our three RPS on incremental higher by a was the reflected The additional were driven higher our million impact XX%. We an of see the cost range historical to the

efficiencies, level. improved better was for the X.X compared scalability last the same of loss and per loss million last was per expenses. to compared loss which diluted or net quarter period operating loss million difference was million GAAP year. net to $X.XX to period the a XX.X margin period earnings, our same resulted year. a X.X income quarter Regarding the quarter compared of well cash purchases, on to quarter business same to or operating share, operations funded last million same to $X.XX reflects EBITDA X in X.X by million loss for operational for generating diluted year, capitalize an of the was million deposits, and of for $X.XX net XX.X was the diluted share, reflecting The X.X in accounts or year. XX.X short-term for period positioned of Not per X.X GAAP and first of operating income the XXX.X million, a arise. XX.X million cash our share year. $X.XX driven and compared to diluted quarter equivalents of receivable. lower for quarter, well same for of in fourth loss gross The yet remain Non-GAAP the during deliberately a quarter compared million enhancing in XX.X the improved value increased of period increase end and inventory last last cash of the as ended share the opportunities million in quarter they or million from use in million XX.X same the XXX.X We compared year. million per last profitability use compared cash, We We market million, the to at the Adjusted XXXX. cash with

Now, the with combination not let announced me note full-year MakerBot from our I to is guidance has turn Ultimaker outlook continues closed. yet that to a would contribution for XXXX. anticipated our business include

are expect We with of to previous and XXXX now that plan marginal can million, confident range revenue. we have customer a continued million the our shutdowns we supply to encouraged fluctuation, as revenue by is guidance constraint transaction XXX we're output global in other our while later China, the this the level XXX an monitoring our of impact, we're growth update such creative to constraints. It from and Today, also issues upon be year. tightening and engagement the for chain parts potential, currency in closing,

expect We year, second the compared half expected to year, continue of as of than notably stronger grow quarter with expect year teens perspective, be percentage mid full quarter to to gross each is From second to the to Revenue slightly quarter we to be for second the continue XXXX. growth revenue XXXX over to throughout the flat the margin the XXXX. first to higher sequentially as low the a half.

be the expect half of on the second we the year. the quarter quarter With higher second primarily last first to to relatively based second half stronger revenue, than flat

expenses. approximately XXXX, higher XX our we In and on our year, as to higher are to or compared slightly did treated as to headwinds long-term absolute be expenses the to continue revenue result new investment XX%. current expenses logistics growth to higher driver One the quarter, operating expect we expect grow, Healthcare. the that second we by year. million improved expenses normal margin timing we in caused temporary the the XXXX. in Primarily impact paths typically when due issue margin material these costs than to plan, while from are over situation And will the of XX continue million we remain as to reminder, such of of a sales earnings a flat throughout back of due macro and to see even dollar gross value As first higher Operating Origin to percentage and the quarter the for full and the expect compensation execute head

While stronger the macro in we the and above issues could costs. than first expected, that supply quarter revenues recognize impact chain in our came mentioned other

So, operating expect plan be to for our operating Longer double-digit we guide margin achieve we term, year. continue growth unfolds. above to full as X% to non-GAAP slightly the margins

to share, of continue or be XX that, GAAP With We and million remarks. XX XX $X.XX in XX the to a to non-GAAP loss million of XX million diluted to and range or $X.XX me million. million, diluted net expenditures the million still let and million $X net anticipate share. to Yoav? XX back is XX closing EBITDA Yoav over capital expected for in of $X.XX to between Adjusted per million, range the to income XX to call per turn

Yoav Zeif

Eitan. you, Thank

and our year strategy technology The powerful start strong execute positions to plan. materials expanded are strong balance our us teams of well and and we offering dedicated our talented the on software continue to our with make new the executing demonstrate that combination strategic excellence. moves on sheet, to we Our solutions,

due profitability and to line, up will increasing grow time top continue improving to We over scale. bottom

focus polymer about in I grow we relentless our are noted additive earlier, manufacturing. position As our leadership to

reflect Operator? With up the that results let's strategy it two our open Our past working. that, questions. is for clearly over years

Operator

with Please first [Operator question. question proceed Instructions] Greg is Our Palm from with your Craig-Hallum.

Greg Palm

on progress technologies have across everything's full that thanks and this you polymer Yoav, curious been market. Congrats the believer portfolio of different launched and questions. having the in product here you a now OEM you in well? Are line what for taking the the mentioned in you kinds spend with or better? the all big synergies they've the captured you seeing they are second wallet five, think expected auto but of that's more with some mean, curious existing using if you as called, customers I

Yoav Zeif

the Thank question. for you, Greg,

script, As we our in working the wrote strategy's period.

we on our Stratasys edge and technologies, the in capturing same platforms, the all the expertise two worked. So cutting the also place infrastructure, that synergies are across And software are And with our go-to-market, put to but materials in really our our within two customers by go-to-market, encouraged and polymer, ecosystems, edge work. leverage of which with differentiation technologies, uniqueness ability we it because to the technology, it and very cutting our works. our build these

Eitan Zamir

piece lines. $XX they of to their I'll away market, that of that and to demonstration customers their to market the highlighted you we from believe Greg. that and next and disrupt and really course on switch traditional begin that, but add they few in is very piece. addressable to help customers Yes, see slides, manufacturing how quarters dozens manufacturing encouraging Eitan. dozens, What production by trillion in making are improve them on over the the it's technology, it's a the It's that how that's and because to that the the building believe look take start forward that the the traditional we -- additive. from We building actually there's And is strongest permanent think years I can

Yoav Zeif

the Yes, customers. our together with is is which and software. meet everything goes around the this it competitors package, We everything it practically create completely the think beyond with to with I Rarely, And will very validate this be are software, solution to difficult which the offering agree. we to to put ability connecting material, it then It's a technologies. the open. justify with service

Greg Palm

who your if in or a technologies. some sounds be What like it's But year as of on that additive lines more traditional My of field up that to displacing you've maybe what terms displacing? in a sudden all going five you're thoughts was competitors traditional? And using are you're are well. all mistake of follow presumably customers versus maybe along byproduct it those of the displacing technologies, got

Yoav Zeif

using focusing application customers. we are very engineers, is that expertise our one delivering software five technology with And best deliver of value and that the platform material on We with believe in our what take the focusing on us cases, we or in we will providers, customer not and additive but systems some forward. that's providers. In And adding see on displacing out replacing value other service and value taking we to can other other are our marketplace. with competitive manufacturing and

Operator

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

Troy Jensen

Hey, XX% impressive. on here, it's the Yoav, congrats growth pretty

Yoav Zeif

Thank you.

Troy Jensen

for clarification the first you for so, systems dollar Could and us And give Eitan. amounts again consumables?

Eitan Zamir

revenue mean You actual total QX?

Troy Jensen

Yes, revenues. and in QX revenues total consumable system

Eitan Zamir

XX.X. total is is and consumable So, XX.X system total

Troy Jensen

I I for And it industry. And available. thought at knowledge all Yoav, the isn't available material you widely that polypropylene, my that, to in said guess wasn't

guess is polypropylene I available? to curious not or that So And really thinking real I'm probably correct in it's this know, can polypropylene like? I

Yoav Zeif

speed, all from a we thermal part, the but be that offering one of whole very I our control, have to much the polypropylene. in the, we per together list like of is because put important of believe accuracy, is machine script. and in ability versatility And cost our better it the available, terms will So, which will great say that

a input really polypropylene. manufacturing. out I into common most great For was the plants many It's there. main step a material. was plastic it's great where years, It's And the managing the

Troy Jensen

it that HXXX on? correct that this just I the am And agree. was is totally Yes,

Yoav Zeif

Yes, you're right.

Troy Jensen

great And you I'll see congrats the tomorrow. results. Well, Awesome, guys. on

Yoav Zeif

you. Thank

Operator

Mohan your is question Wamsi Bank America. question. from with with Our Please of next proceed

Wamsi Mohan

you, really the results, thank congrats and, and Yes, strong growth. nice revenue on

Yoav Zeif

you. Thank

Wamsi Mohan

you I little can about a talk was gross wondering, if bit margins.

of I both availability and think you challenges macro to alluded guys material.

inflation much issues us significantly I are sort and be gross through to you margins our higher? is your currently, you can currently because think of absorbing? chain understand target So pressured how supply by help pressure What

Eitan Zamir

Wamsi. the of we So to the And That's thank this approximately inflation costs. as these the had costs the script QX, XXXX. some focused that, we're mitigate really to mentioned. QX It's and material XXX bit question. pressures we're basis than but and think price -- and points, I with a to customers did impact little focus, increase, X%, good to compensate in in We price of able more on increases, our that's delivery compared you, a related and with we're

Wamsi Mohan

to just second EBITDA for trying XX, XX half bridge, it to million off up also XX increase look said, to the year versus the sequentially. about be increase half. you guide of and I at was to QX, already the as first your understand I'm QX you absorbed already pertains have the that If OpEx going in

is think if guide is year? EBITDA is but for and EBITDA stronger you're you is low of in OpEx in in you that you're loaded why of doing XX, very million end much more increases not would of this see frontend So back your front if to loaded. already right the OpEx relatively it most flat the And leverage your EBITDA, half XX in million and back so, the the so year because analyzing much half your OpEx to already X

pieces help just me you. you Thank can EBITDA moving So on the think bridge? through this

Eitan Zamir

a that's question. good So,

the over quarter the of on over spread all, you year. So, look XXXX first when

the and partially XXXX in So, related between increase different the we've know, difference to half of OpEx and other previous the a second you mentioned calls. there quarters in was items Xaar the acquisition that

of the the kind I entry it that QX then see we the necessarily guide. versus for reflect the that addresses question EBITDA QX, trend does improved that the EBITDA why that's or on quarter. the next the So, not hope you change, And

challenges, to very current the script, challenges and account to about confident market. the our ability into on take in macroeconomic and our the our meet the guidance. numbers mentioned As high we're meet do the But certainty we

And the able to guidance. bottom-line our update if conditions into improve. that embedded we year, So, we be we throughout will further those as move

Yoav Zeif

our really about just meet couldn't revenue thank question just guys beyond. couldn't because did they me, know our question your did chain I and our And their above want I of your out and industry deliver to Let well. of companies many will supply that supply operations and targets team, our fantastically leverage and chain to in because industry

many globally, despite for margin, we I We that. also we ways the all flows thank at deliver put to gross so but ops and the improve And think them for fact first priority, that found our they creative delivery team.

Operator

Our Chung your next Please question is question. from with with Morgan. Paul proceed JP

Paul Chung

seeing on expect strong over after acceleration system typical rebound on we couple reorders such consumables, a for for your the in application? for of systems? So materials base And where How last some the and both consumables. then from rates on Should you of utilization lag kind some sales maybe newer these is of just strength here here quarters? are just there of kind of install pockets

Yoav Zeif

Thanks question. the Paul for

our You hardware see in we growth this and in to the fruits will those also also started the the saw the follow. the quarter and was from hardware consumable products. few this services is And consumables the And to more quarters. the highest We last see XXXX. already higher growth quarter, which coming in since QX was this to expect our new increase continue

Paul Chung

from possible Or get a their out. a some discussions aerospace sense are here, pointing initiative the the then those policy key side? Are on slide? Do from seeing from that on here, have involved? you you kind catalyst government of any of And maybe slide in kind follow-up of your government you funding U.S. or accelerating companies the

Yoav Zeif

-- government for forward. deal, it's fit of those government. We spare catalyst because air for with it XD We like have see programs a best is and and And adoption sustaining our believe which U.S. is deals we We please we deal, parts. showed now going with a will the it. are supporting of for more that, long term practically long the the so it's printing, government relationship the with long specifically

many So, the ability of certification to it's for step to we players America Stratasys. a And and that as have appreciation many, of lot package. mentioned, But to the of adoption in relationship much build they the package requirements it's have it's to the and arrow invest call, like allowables the I lot the leverage additive, others, many, company, the make beginning Lockheed meeting of the as Because if of to order are government have and is when not our high address, those the hold a Martin additive for start a a U.S. suppliers and end. suppliers, into of training, hands manufacturing. catalyst and wants of to -- support, unique to with we to so lot this the manufacture, also really leading small at need but leading the we the we a a full lot and someone and we solution, sure corporate

a infrastructure that It's So, journey, great of it. we're to stepping the we government, a success. can combination America, capabilities corporate but start and believe be happy the our and into

Operator

question Ricchiuti is next with from Please Our Jim with question. Needham. proceed your

Jim Ricchiuti

level are seeing that what seen of question hearing of you of where wondering, of change top QX? strong light terms just in challenges given or had of in line about, the middle growth. just, any exiting in terms in you specific QX demand, May, a But geographies? we're I'm same Or wondering, we either you've quarter are that You you seeing My macro of the saw are, verticals demand? obviously the in demand, some in I'm

Yoav Zeif

the looking you in and clear the we're And over are Today, other mean that Thank Today, it's the leaders future, it blind. industry our capital markets, for not to us. demand is what's of and currently because is see demand on the you not cautious. because we question. good inventory, need And you are it Jim, demand and But we and to in in inventory, build report, strong. we company, all the But Hey, planning technology, why god and course, the we is strong. thank is thank know, And strong. for but looking the build is strong, we driving demand of this going demand. meet we, this are the as market, can doesn't our

Jim Ricchiuti

about this flag product. in a channel. what for talk follow this this a It more bit introduced product strategy wonder, a And little in the but to like separate I I up extent the it's wanted could of new And printing is you've question market. if gradual terms seems planting unrelated on introduction you somewhat just area, the a market? you in into know, of to that different textile a

Yoav Zeif

question. great It's

material, industry the and engines, of cross service, have this potential. edge the the with will cutting cross the cases, great use can mentioned, chasm only the four As work but manufacturing, I the software, five from we technologies, technologies, prototyping will and growth use the we not to a nothing you is if with chasm fashion huge case

fashion is market the addressable Our end market. high

do we our can technology, walk luxury it. can we else already that with end one in and do. talking can doing can the no house With are because about goods, we're we brands PolyJet have So the high something fashion, world design, best we

already talking already we have So, results. like we and are And fantastic are garments that of shoes thousands there. items, some about

to we beginning the Of just show the the in course it of going show. but Milan beginning, are we

it's the think happens. no exciting, with because world that in mass believed manufacturing, XD and jetting we made and XD that but It's it material it's it's I June. manufacturing possible, one market in it's super

Jim Ricchiuti

using Are a you channel going or direct partner here?

Yoav Zeif

this a And working We because service were manufacturers. also outsource using are industry to doing lot both. with we is end high bureaus,

doing are we I come It's to in Show. Fashion see you Milan really and amazing. the It's it So, the exciting. really both. in invite

Operator

from question. question with Please Capital. next Our is your with Ananda Loop proceed Baruah

Ananda Baruah

out extended the a -- context remind you think the will the quarter of Could may across the second terms two half the add have with or products mentioned coming for 'XX? products the of I for you throughout year new of you new What platforms? for on in the doing be remainder guys ago, good. year? That'd be us

Yoav Zeif

Can you not question? sure please repeat we… I'm the

Eitan Zamir

the rest of for product new a the during on working year? launching We're

Ananda Baruah

I now you specific get concept you exactly. but give? for so only slides, can just Yes, can Anytime, any

Yoav Zeif

you. Thank great is this question. Yes,

what for Now, our take were focus make We on it's Stratasys event, have event products, we And and this had manufacturing. experienced are week to very what that is sure the within clear clear. manufacturing. manufacturing it's we and last the suitable new now

the technology. for with SAF, PAXX the SAF starts new and for the the polypropylene it So, two materials,

is XX the something materials. which are audio, say we XX one year. overall, a putting new our -- eight I so technologies if of that is on XX sure, don't This is want all have top remarkable. really We in to I'm This new but is On This material launch remarkable. product. which I not to don't GrabCAD, know

SAF also verticals. the and in have also the industries suitable on other And be will also local, for Origin. we the is GrabCAD manufacturing Origin and which So with defense and similar

So, material software our successful. and that we is additive to this have be solution. sure the only are because X.X cutting say the the about real X.X This perspective, it's are not about strategy. It's not can to customer. my have From only you proud making and but the machine, the you be X.X solving service have following edge the AM also manufacturing It's is full the And to that technology. the full solution. we I'm if the problem and we you

Operator

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

Noelle Dilts

It speak seems Thanks. your satisfied hardware, anything generally current can if there's that and you you feel add technologies like M&A to pretty if about offering. front, revisit on priorities? with But you and you're just your you could need

Yoav Zeif

a That's great you. thank know, I question.

well, that's satisfied anything. We not are our satisfied at not here. not all nature We're with without

five and in the our aside, and taking to roadmap this and annual and our to five manufacturing. in set understand way, operating this technologies in one make completely invest in we our it's is be software in we make Having each customer service that happen. requirements of from in must because very For material And at R&D let's one have that technologies. plan technology improving solution we of high But will are to for of come, the our also those of each new we put our level year technology, side. sure year of it by order and years this front the it a we to many we spent plan, that, our said

So, doing. that's we exactly are what

terms In question, get of your back we to to are technology investing. the

off I should sure have arm we in arm innovating that probably but labs announce But generation the think we new in And internally we polymer we externally our of this, companies to technologies it have part will Genera which not an our as mentioned of invests are well. also more in only invested that like position. are is Nike an and to this that already offering really, we we and like secure be make we make AM, leadership details. will that sure Inkbit, and

Noelle Dilts

you're a Jim but bit, you Okay, could seeing what this trends bit on asked perspective? from expand thanks. And question geographic a little

Yoav Zeif

demand. obviously you other geographies our also EMEA very see from that but the, strong all entire the demand the strong business, trends, for Geographic we, world. Thank know, aside put impacted the in lowdown China in We you. quarter strong businesses, a and

Operator

call reached for the the Dr. Yoav end will I of Zeif now and turn CEO, have over closing the We question-and-answer to session remarks.

Yoav Zeif

us, forward you quarter. Thank you joining to for next looking updating again

Operator

your and disconnect this conference your at Thank lines That's concludes for today's you may time. you participation.

Stratasys (SSYS) 17 May 222022 Q1 Earnings call transcript