SSYS - Earnings call transcript Q4 2024

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Operator

Greetings, and welcome to the Stratasys Q4 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, CCO and VP of Investor Relations. Yonah, please go ahead.

Yonah Lloyd

Good morning, everyone, and thank you for joining us to discuss our 2024 fourth quarter and full year 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

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

of that X SEC year, update is as the of days. today. Stratasys operating the the XX.X year statements information, for any and with coming XXXX review For to assumes earnings cause release respective a actual XXXX. please no speak be X-K XX-F our XXXX, as forth we furnishing XXXX, are risk and annual to that Item to and will Exhibit those SEC press financial on Please quarter their which Please XX-F and the attached the forward-looking are or dates. which the XXXX XXXX obligation of to risks report and in filed be the fourth which also on for XXXX as refer on see annual included our our that report from within Form also for factors reports few announces Form in statements, the which to Stratasys' refer to Form could or materially set referenced forward-looking prospects for different discussed results for

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

Yoav Zeif

macro steps Good Yonah. joining company team. the everyone, headwinds, industry-wide you, our further profit our due size and us. XXXX, thank early strengthen demonstrating leadership manufacturing. Despite our forefront cash effectiveness morning, for additive at and and to to position Thank key resilience of In was our of commitment you to model and recent our the we successfully, took XXXX and right of enhance challenges flow the operating several and executed the deliver

our with ones center shared be to full-scale production. on around compelling strategy also the that We laser-focused most you applications, particularly

As we we XX% we from in share XX% started up revenues XX% manufacturing, XXXX tracking XXXX. our over just and each from year, up XXXX, from generated when in of in

efficiencies. point where customers value engines These a majority part effectively. ability will through is We to additive drive revenue end derived expect be year to margin solutions resulted the customer X.X% that the focus of our basis from controls being constraints. This will offering in and measurable is challenging adjusted our levels growth cost enable continued strength to best-in-class time. scale by trust expanded reflected operations grow are The every our percentage to solutions of this our year manufacturing that our their deliver our see XX.X%, the business manufacturing. year to divestment, the yet environment XXX capital off operating and our for on continued engagement profit And over after strong points prolonged revenues despite of our for gross backing spending the reflecting in out

$XX.X We result that efficiencies Importantly, and coming fourth years. of EBITDA, a we higher profitability ease, X.X% adjusted $X.XX our in adjusted confident sustainably the margin operational delivered when remain will million capital in in quarter, EPS. the spending constraint

balance that to strength brings continue investing Fortissimo forward $XXX.X of in growth no equivalent will that Managing maintain Partner, in more welcoming and look Capital, Fortissimo's provide and to upcoming to bolstered Stratasys sheet innovation-driven acquisition Founder We Cohen, stability second of a This in be which by opportunities. accretive support investments $XXX years XX healthy At by organic Yuval than million to and our This cash is our experience. both successful Board through investment million targeted who time, the close quarter. and optionality debt. we financial join and will

and Now at scale. is the world's for let most by capabilities our technology and recent enhance deposition of quarter update. the more And technology. to some trademark production the fourth continue and modeling, Stratasys its under me touch Fused on XD Stratasys innovate commercialized invented FDM we printing popular

example, to quarter, large-scale [ filament while to X.Xx, eliminating an a key FDM up us customer by our our in production to uptime the deliver. end-to-end FDC customers fourth As conditions efficiency launched storage breakthrough maintain for for Stratasys' in system filament cabinet printer to continuous that manufacturing we ] printing represents for materials, moisture-related a patented uses operation dryer, designed the Fortus grind addition technology and increasing that systems defect. These consumable asked a have solution our is of

we our We capabilities Air protection. polycarbonate-ESD, an our needs partners the expand to address our parts, we fixtures have for options. These layer FDM's electrostatic to materials electronic and target enabler have color and for Ultem with uptick already result. critical addresses that manufacturing, height that in new defense sales capabilities significant materials specialized a seen enhanced and launched spare continue Force material particularly tools XXXX applications. to manufacture are discharge as a material in expanded And We U.S. requiring

to molding AM, including materials, material automotive a tooling. manufacturing solution, than exemplifies precision Forward production-grade various injection Additionally, components new for PX positioning This across molding-quality to have new flow our commitment injection we platform, validating adapters. XX by Origin PX applications deliver to for designed DLP more added from specifically

research and transforming FXXXX, addition and technologies. center previously of several particularly excited conventional its at wide effectiveness announced to multiple of the XD the including include through Its Origin NeoXXX, ArcelorMittal, steel versatility agreement business, European parts represents SAF years. the contributor significantly stronger to software design. and Since success for Germany our in demonstrate and system announcing FXXX, We to announced largest customer traditional our Andy printers, Based well. significant that world's and under fleet solutions the produced of We it win appointed highlight systems, into we FDM in models to Stratasys XX racing array Chief our tooling, of FXXX, One aid where XX. This expanded in bringing over versus come Aerospace, a to has capabilities provider XXXX, partnership where Officer. saving business has of design to also trends. its XX% solutions EMEA environment, critical by official manufacturer. further line of accelerating the NASCAR. FDM a company additive makes partners in component XD printing roughly achieved key our time penetration traditional have to Andreas are adoption capabilities APAC Revenue drive methods. Switching Their unattainable a quickly one to leadership with method. And additive NASCAR now and printing office, and our success, exclusive customer will update. GrabCAD manufacturing use establishing was they creation of with manufacturing XE it to their machining of produce customer Head our is of in sector, extended will technologies of center as Automotive, set manufacturing lead tooling XE of help traditional Langfeld reductions Stratasys allow enhanced named parts, more much EOS, we were the in system. In and of managed as for his at with XD This promotion production continue support the its multi-year into for more from he of the the recently a a prototyping, electro-optic been of dedicated further leader Stratasys the tools position and I'm

will go-to-market and on As ecosystem. and customer to With in Andy help role, satisfaction accelerating build of and forward long-term position further to our Andy further retention ensure strategy this our look adoption the reseller our CRO, we enhance with global the solutions. our widespread strengthening partnership

lower is that Now now TrueDent the X Dental. available for as nearly in customers were production denture labs resin expected business, billion that Mark with We dental deliver clinicians switching strong Europe accuracy anatomical outcome enhance of calibration XD-printed Medical pathologies, year. And accurately we imaging the this results and announced Healthineers, early medical anatomy our and scanners, unprecedented replicate and onboarding recently model the diagnostics, By TrueDent high-quality by resin opportunity is is and already with in patients sale a solution joint offering phantoms accurate costs. ensuring be Interest Class improve which anatomy. can and scalable, conducted efficient device. CT demonstrated set for imaging TrueDent of medical the to committed replicate CE research to of patient-specific across hospitals which XXXX. in for Siemens performance Europe, human a $X.X to centers to the is many to and more excited

strengthen excited our to software. offering to to Turning some product and innovation. that demonstrate significant commitment developments I'm our share

solutions up, plan. Our and software forward medical exciting our and customer racing of data, of high-speed software This some to our efficient step streamlines And new to from advancement and as our a reinforce support providing in to note most are sum space IoT cases all services. GrabCAD the environments XD pleased the improve of our ecosystem represents the operations a interactions that and under accurate their travel demanding digitizing again, are for customer across unified core our platform comprehensive uptime unforgiving utilization use we auto to our GrabCAD and printers, predictive maintenance solution by now most transformative entire technologies. provider. To customers suite a of most help print real-time approach state-of-the-art more in supports major conditions and end-to-end is software position techniques. X time This

accelerated initial a and production results share to macroeconomic The adoption manufacturing XXXX. call on penetrate to as at financial deliver stage to over conditions customers continue the we of growth to as Eitan? further will turn products our solutions slowly applications additive the for to for now and differentiated We outlook based is set return improve. I Eitan scale.

Eitan Zamir

Thank you, everyone. Yoav, and good morning,

Our against macroeconomic of results factors reflect and adverse fourth the backdrop related ongoing pressures. solid quarter execution

abate. growth engagements we translate customer strong, once headwinds meaningful will believe Our and into remain

reminder, fourth the the in initiative effect primarily a took last quarter. year cost-saving As we announced

of XXXX. impact these the we on basis. As our quarter cycle, offering and results the the both demonstrate our review enabling an quarterly us annual annualized more initiatives results results, flow our to future resilience expectations the fourth for of indicative general, cash raise and throughout are In diversified profitability provides the

Now dive into me numbers. let deeper the

flat For by fourth quarter X.X% period period the capital same last relatively year, year. year. fourth revenue $XX.X products million, same million $XX.X was the XXXX, behaviors of $XXX.X the declining revenue was systems as the $XX.X X.X% in the Within year. impact support last to million to compared compared off fourth year. Within for down to quarter, last period quarter same to same consolidated Product to period to in last $XX relatively revenue, to compared period million as the buying of revenue, for last last the in to $XX.X fourth the was revenue constrained flat slightly, revenue in customer compared to continue customer Service million revenue X.X% down was was service fell same period compared same compared budgets X.X% quarter $XXX.X year. revenue the new million, the million system. Consumable

$XXX.X X.X% was revenue $XXX.X revenue consolidated to million XXXX. compared $XXX XXXX. compared Consumables the to decline XXXX, year million was in million Service divestments, Within revenue out was XXXX million, XXXX. to to revenue full system was $XXX.X in the up $XXX.X Bureau in million to $XXX million in After XXXX. million For X.X% in to backing Stratasys revenue XXXX the Direct product million in compared XXXX X.X%. Product compared in declined $XXX.X revenue, $XXX.X

We XXXX increase expect XXXX. in revenue over to consumables

support compared to XXXX. backing Service compared service full million divestment, XXXX, Bureau $XXX.X XXXX $XXX.X the For customer was XXXX. flat Direct revenue out million, the revenue was year-over-year. was service service year XXXX in of After Stratasys in Within revenue, revenue to flat

the were our in quarter during period operating to GAAP to margin was was margin operating cost and improvement $XX.X the associated the gross period gross year realized benefited quarter cost Non-GAAP margin gross for full nonrecurring GAAP half in XX.X% Now of XXXX, XX.X% primarily we year announced operating million the to gross driven for quarter expenses improved, turning year. Non-GAAP expenses XX.X% margin margins. for The the for as period same same gross to full was margin basis efficiency gross that XX.X% fourth margin saving XX.X% to the XX.X% of from XX.X% year. Non-GAAP for result as XXXX the to compared of compared efforts. of for cost of measures restructuring quarter period effort. to were saving was for full financial fourth million the GAAP year period was compared cost which initiative. revaluation operational of were for last XXXX. saving same the during last last quarter efficiency million the for same result a $XX.X the improvement operating the to to of decreasing for last quarter compared the XX.X% year year. of second for year the compared in year-over-year by XX.X% period million operational same plan XXX last the saving effect to same a revenue the the in we reduced in compared The in with $XX.X year, points XX.X% improved quarter non-GAAP and expenses $XX.X compared gross XXXX. Non-GAAP the XXXX. as last the gain result expenses GAAP the

in XXXX. For the as due XXXX operating to terms, operating of absolute primarily XX.X% as full measures plan. In revenue restructuring $XX.X in non-GAAP were non-GAAP our year, cost-saving the in lower in dollar due were to compared to expenses lower XX.X% expenses XXXX, XXXX compared revenue to from part million

of the consolidated operating the Non-GAAP operating nonrecurring $X.X year, million the quarter compared our to Regarding same XXXX. the to income for for income earnings fourth was of GAAP that operating reduced $X.X last million loss gain quarter was for for period operating in primarily GAAP quarter. the quarter compared million $X.X revaluation the due expenses for $X.XX net a the $XX was compared share million revenue same to cost year. the reflects $X.XX percentage diluted last net for period as share the the quarter $X $XX.X or OpEx period same of million diluted for increase lower by driven the year. a million or per savings. GAAP of The per to loss loss last

$X.XX EBITDA $X.X $XX.X we This or compared in margins the the or investment quarter in took million last or diluted share impairment $XX.X share compared $X.X $X.XX fourth X.X% quarter of share the non-cash During income net for our loss the the period quarter. XXXX. a $X.XX a X.X% to to quarter, last $X.X compared charge net to Non-GAAP of EBITDA the year. Adjusted million was per income larger same quarter the GAAP year. period Ultimaker, of equates in to million million for cause net million for per a in related same per in to diluted key was

compared income $XXX.X share Non-GAAP XXXX. GAAP compared fourth a in reflecting operating consolidated million for $X.X million the or share year. million XXXX. in diluted million the due a our our This was loss of we margin was GAAP for last share realizing or improvement to for $XXX.X diluted operating a was in or during more improvement year last for $X.XX we $XX.X $XX.X diluted equates net per improvement $X.X X% working free earnings XXXX. to net compared margin. We quarter of to $X.X in to the measures compared year per to loss X.X% the to improvement Adjusted operations diluted our in as benefit to cost-saving or from in quarter Non-GAAP non-GAAP XXXX of year. XXXX The revenues million per share of in compared the capital, was operations last $X.XX for to loss for $XX.X year. This Regarding year in plan. to year million operating restructuring $X.XX million the million, $X.X in loss the in cash XXXX. million income EBITDA from $X.XX the million generated full positive million was XXXX, $XX compared net compared quarter. $XX was our from in than that fully cash use same million offset expect flow of resulted lower further cash and the per $X.X

$XX.X generated in million using operations cash For of to the year, $X.X of XXXX. cash million we from compared full

During $XXX.X the million of $XX share, approximately capacity $XXX average $X.X at equivalent end stock $X quarter, quarter we in quarter of of with a our approximately price per cash, had share cost an repurchase million on year-end. We of for of deposits the We the shares short-term and repurchased ended cash XXX,XXX authorization XXXX. at million. to remaining million compared the third at

cash on and interest Our strong, capitalize opportunities. supporting remain profile balance generation to sheet our value-enhancing

As sheet to set further from enhanced with are Yoav $XXX prospective balance mentioned, million a Fortissimo. and strong position cash our be investment

Now equipment global for to the outlook in based expectation our that XXXX purchasing the will me let capital softness continue. on turn

XXXX resulting revenues first. to the compared each of million range second $XXX with the in of in in expect the the $XXX growing revenue to to as million, We year, a higher quarter sequentially year half be revenues through

to XXXX, in range revenue between rise XXXX a to year. Non-GAAP operating We with primarily stronger expect to throughout the on million to XX.X% first the than half rest and second million. $XXX the margin the based to non-GAAP expect $XXX In year. our in softest expected for we on to expected XX.X%, the gross basis a expenses half be profile first relative of the revenue is range quarter the of have the margin

improvement the important Continued is for XXXX, objective profitability across expect we growth profit metric. see in and an to

to range to the the X% For revenue throughout rise in XXXX, operating we than X% in margins anticipated first half the of of half expect stronger revenue, on non-GAAP based the year. be the second with

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

We range million XXXX $XX and our to between million. capital for expect $XX expenditures

Finally, in levels we than flow to cash the over and turn call to that, expect operating XXXX, Yoav? deliver back me at improved higher let free closing Yoav remarks. for XXXX. With

Yoav Zeif

Thank you, Eitan.

to met Before global a increased in I professionalism, our continues our dedication strong The to many personally excitement across to few key most resounding we of for over work message businesses move the take certainly team. once engagement expected lifted. is our use of the solutions. moment customers have is I hard to and industries additive drive constraints spending that want questions, acknowledge months. last manufacturing Their their and customer are

We operating at excitement and expansion ramp all significant shows deliver follow. corresponding trade of and capabilities, question our There solution leverage that enthusiasm exceptional and and largest the margin and also is will the when see growth their and feel our no event. industry

growth future. difficult the for eases. quickly phase additive We positioned step ability for maintaining to the capital the while into the we of believe are but innovation sacrificing taken and as necessary emerges, to resources business scale lead today manufacturing right-size that next the for as today, and spending to have well without R&D We

for questions. up that, We and for for are Stratasys. With XXXX all let's beyond it Operator? open what excited

Operator

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

Greg Palm

modeling color kind helpful. given seeing but marketplace, on little a on the detail looks little then the of would sounds cadence just there of kind It the you more going kind in year? Maybe us can bit you're of from bit more out revenue feedback standpoint more everything be building how sequentially, just of a with what And customer that of on? help like a kind any

Yoav Zeif

because question everything downturn this looks case you time great. a in thank That's our super are for and of important a you Greg, in Hi, customers. industry dark we is But the a the question asked. not period with and our

requirements those Florida, the we corporate manufacturing, we the leaders advisory weeks X we a a in industry capital companies, basics additive that additive deliver. value customer because them. as ago, top And an had and additive are forgetting in the of only in manufacturing board in market, the world, XX and proposition forgetting are are the of Just of can as there

parts, and improve example, and For world supply mix, special and geometries assembly additive of volume, uncertainty trade especially can a do and it sustainability, low only resiliency, geopolitical consolidation chain the ensure of wars. personalization, high parts, tension in of

high manufacturing that So capital world expenditure the so long-term on digitization focusing this the the we constraint industry. digital and we are will interest will process the forget will be benefit rate entire that of and manufacture,

talking So your to reliability, doing, more of with to and accuracy, when customers, question, are cost us, enable OE, focus back ownership total equipment, of engineers we they use are you to the what our our on saying the additive. are effectiveness

very the time, great feel happy with our I'm we going over optimistic. solution. see So But us there of I are has our The constraints. feedback. out FXXXX customers short-term and Yes,

more sell to in expect We XXXX.

by about way, or downturn be It it even the will industry the in reach mid term. expand of to long this new We are nothing has within same a gradual the sites. expect term to customers, period, those our but we because short

Greg Palm

Yes.

the rate gross margin for are 'XX second run guide And then in, wondering the tariffs? 'XX. obviously, of I'm of Okay. the either impacts relates It for in lower building headwinds to logistics from terms -- as or specifically, in or the That's gross it half what relative margin it negative a implies year, to helpful. you

was a assumptions what your are? can So of just if built-in give curious us you bit I little

Eitan Zamir

Eitan. Thanks, Greg, It's question. for the

quite improvement year first think -- is in that margin margin for That's general, to grow you XXXX many business enable years. actual us of all, for and compared further. XXX of basis was start the to saying for gross to and I'll point Stratasys gross and which an So last the also, industry, solid to very also invest which in us XXXX I grow our a XX.X%, was follow

Now as with I'll things. concerned as XXXX, few say far it's a

then margin similar for First gross of XXXX, very we different it's in mix level a all, kept of the things. but

of and the in the business and business in We in course, production. growing invest, the continue to

On be the introduced still solid, product, And the other hand, the that margin. are there was about of that in but will some XXXX. we savings think XXXX. you is part year. already be when as see, will maybe XXXX future. a some from Yoav? restructuring savings the XXXX, come But will Many within very gross in promising very very XX% can good significant continue throughout last plan of -- about to tariff, in you sequentially the XXXX, achieved, And there course, XX% overall, improve word the that level, of it which the The mix quarter-by-quarter quarter for impact and

Yoav Zeif

and other sides think One the customers. X to is tariff impacts how the is has our us it it. I one So how impacts it

terms us, in are it's secured -- thank we say a are long won't time planning. Vast time but a of God, doing we is for I In of zone. majority what of

immune. in quite is U.S. are Most we the of being FDM our So produced

our of the is our and And U.S. largest has FDM So which largest agreement. trade it no on most has the it. is it Israel, is impact business no And tariff region. in rest production, a of -- our has free

at customers. And regarding looking good our in we So the a tariff. I'm are shape

tariff, if here a the you us see and country you other -- is On the because huge opportunity. how machine near bring the what's to tariff, produce the don't for no matter this you the global side, level of onshore we specific the customers, a opportunity pay which the

is Just a our to a have actually in uncertainty with and they and also tariffs the a customer, interest I to customers. and handle they of the large uncertainties, supply the ago, see from are an was port see chain coming operator, broken a week potential week logistic ago, large this they how the geopolitical creating capabilities the tension, additive impact and --

Greg Palm

I be a to will seems It month Yes. next it forward RAPID. at like seeing there, it look opportunity? all could you big leave

Operator

William Next question Drab from is from Blair. coming Brian

Tyler Hutin

for here Brian. Tyler is This

I about? Just recent to but you're revenue follow-up. And a U.S., to think wanted -- any there then anything note I'll know divestitures FX headwinds in there for starting organic mostly anticipated have that is off, to the we or growth XXXX? I Are exposed should know

Yoav Zeif

of SDM So a businesses, is nothing relatively divested the than XXXX, inorganic as that small there as of Stratasys in middle divestments as Direct of other concerned impact or Businesses one the model. you far the with it's we significant

Europe. operating countries side, business course, have on FX we some the And Euro have of would On impact. throughout do like XXXX, in also that And based the how behave Israel. we're in

dollar. most think I However, in and U.S. discussed that we normally, not part we we've past, this exposure are the on significant significant currencies the hedge a of our

is impact small. relatively the So

Tyler Hutin

from you in denture could And And XXXX you is billion. total other differentiates market? the competitors? on opportunity additive Okay. the in today? capture the That's market global basis, correct? TAM provide a $X.X said this you your what estimate then you your share of slide, more will And by And how

Yoav Zeif

for question. you, the Thank Tyler,

$X large our organic really a the we already lot being the billion be very large have that dentures another able, of particularly believe optimistic. So to printing solution in like very will like now disrupting knows and because to billion solution to billion the you and still And of the but we back patients our innovating leader And industry, how new X terms And feel the so time one for market. over that We proud we today are large gradual models fitting, in solution, together a because it's completely We don't to new come of ahead in the believe it to a ahead And it's with to are and are of TAM dental adopt the dentists penetrate next competition dentist we which additive. practically, with denture that are honest, industry Americas. And the terms meetings, will which X moves and ability to are of very aesthetic, solution, companies. the be very of is some dentures, signed here as it. need business of lost $X.X denture that, denture, plans and money. denture Europe coming a we dental in we're large a low we very also the see inorganic year, it's with the are and between price position an in with adoption industry we model monoblock to entire several a transform high the $X the several denture, with already to industry with XD is that be we high-end technology. how simple we ahead create of core coming

Operator

Our Cantor next from Jensen Troy Fitzgerald. question is coming from

Troy Jensen

Congrats on fourth quarter results. the

So but the I Eitan, base been -- the you, guess maybe, sequential guess they've you're into are consumables also consecutively And installed more consecutive right, here as been down year-over-year, systems growing, a on has X% for basis. quarters down shipping X I customers.

why about just quarters? and touch X So can they've consecutive you declined consumables

Eitan Zamir

Sure.

call, the rate. quarterly what outlier. expect year more we're in earnings last see about we we addressed announced year future that of the And the higher does the actually million will we're range discussed think QX to reflect, a that $X.X XXXX that that And We think XXXX number similar the and when year think discussions of the I in -- XXXX, run quarter. by lower also was run as of the I and as I full we that that higher of analysts than XXXX. after Actually, average saying was year to your a QX start But for into be the are higher full we represent XXXX, the than to already year. last be that back kind today. with full always I'll rate. question, maybe track -- than levels XXXX from expect on not already of not an months see full throughout does consumable year, was So a quarters average I QX for it It than it the consider X the on we that's XXXX.

utilization increasing, consumable have overall to compared expect we to we do So do XXXX see XXXX. and higher

Troy Jensen

this And And decline? just $XX investments? sequentially. also What's Eitan, it that? is any $XX you, down Is I $XX long-term you talked million million that Perfect. talk to that the just in for the about there all Great. about, million loss want financial Is the instruments? equity was reason for investments, is

Eitan Zamir

was one of our divested equity our the remember, that to Ultimaker. this related and not to in focus production. and years as that end largely strategic We to ago, is on -- decision manufacturing low So mass play we investment X.X to business part item you on and --

that So to But we course, in share an not that. but we and -- we control. business our do take have a that's that more situation, than of that's some what did, perspective, accounting from it's that's nothing

Troy Jensen

Okay. things But all is million, there just other Or the equity in Ultimaker? there? that $XX in is

Eitan Zamir

$XX see you million? Where do

Troy Jensen

category? investment long-term the balance sheet, your in And

Eitan Zamir

are to is That's -- whether each them these but want relevant, very we so similar or more minority others that position doing, quite decide investment, become are invest one involved see we opportunities we what portion, And to we not. many small you increase when it with. our of are and a interesting in

Troy Jensen

Got you.

just this more you all decent acquisition for capital raising Okay. you profitable obviously, equity, balance you're not guys and So targets, And and financials? a are it's talk then Yoav, can sheet. have about

mean, So you what most? hardware, software, materials, I interests

Yoav Zeif

strategy. very clear we a more announce Whatever value we'll shareholder and a strategy, have

and and because cash and the after It $X.X doesn't the we of it flow, demonstrated QX way, savings. of of in sign -- vote in best there they flow. start committed really that a remember, last HX, those it's Stratasys XX.X% lockup, out confidence a profitability also We to of -- In invest in are million very and by from opportunities we committing and to which and a on committed significant They EBITDA, a X.X% with of operator a are technology delivered -- tough end are well-established margin, of there And proud the capture were premium committed decided our year and investors. to Stratasys. all the is we opportunities we industry. them, innovation successful at Fortissimo. cash to exist we We

and put want to opportunities our next savings secured we it have you are an see it. year-over-year. there, will my see we few back company are are should strong a and We manufacturing growing in and to wait keep you profitability. model. just we and because million sees a there now where to consistent capabilities you growth business to. growth, we and And normal, execution of a slowly, $XX this years. Really, learned top in we committed see And you opportunities. to money We look your sector are in the the where market of industry I guidance, there money this in that out to over with need is that you at And know our the investor guidance, plenty put about but combine you we the operator measure-by-measure, industry. And will the to said, then capture you performer in better that lot order revenues in last and those year, And come opportunities

had widespread diligence the the have We due industry. to opportunity across

of more value support the So know on the who our there, which in favorable them out in we one lot days. of better are you And a these good and understanding and will are right market our assets create short-term long-term what's going target of also to the have shareholders and strategy the prices long-term.

the we printing we the of do sheet So and use revenue, have proven abilities overall when capabilities, that and balance on case strong right now Stratasys the focused solution, manufacturing the you with profitable strategy with with Fortissimo and operational a and to what XD is know the the we model money. have plan recurring with the combine

Operator

from next is Needham from & coming Jim Ricchiuti Our question Company.

James Ricchiuti

about Most does could the you confidence more one and be from on bit in? to of to And little viewing talk if sounds your new a sounds conditions. want cautious way market markets put verticals them, market like of or maybe geographies? don't my Dental XXXX. benefits mouth you're offset that questions continued you just challenging been but on you're like obviously you assuming might that more It but products? want And have which I the perhaps words answered, I being have in follow-up It

Yoav Zeif

is cycle. And we reality, cautious. market. the what There the but a This is are it's Yes, ups a only see we soft cycles. are and in downs

down softness now is XXXX, the And it, the XD the I it the are the and value our okay? to there, But market. quite thing. guidance, have getting is the Then most printing of visibility. confidence This good have important know period. of into fundamental a as in we proposition we but We customers of said, pipeline consideration in takes

such So this over pipeline XX top see engagement. Florida they -- we with customer visibility. from executives solution. from came to example. We an a top to looking just in world have Even what is us us XX the XX from corporates the our are all tell downturn, and sit

is there So an engagement there.

also improving offering We our are constantly.

best for the value is adopters, the of next. there our the I profitable state tailwind, Dental and believe As are vertical is business. a additive example tailwind type world, and geopolitical additive. is this vertical is because stable geopolitical proposition basic that's dynamics, it's be looking -- enhanced industry situation and very And it with uncertainty, because the with new for political a a for of question. this new of of what's this great a world. on state will kind a will this now year, great of the you all highly with us, lot concerned the give will support and XXXX we new because And are Definitely, the and current of environment because you early Defense entire it now. budget great for okay? Now Aerospace in value Defense and of of in world we there. Europe for stability about Then said, the dentures, And material This -- of But and be we kind of a Aerospace solution is the believe see great world, in part is on also the focus And focus a again, skyrocketing. there we about it's and the software, product. the more

parts. tooling opportunity. It's Aerospace in and leader and those $XX the are we tooling, a the about also -- X: and spare Then market, Defense leader have And in aerospace is dental. tooling. it's a defense, are are the would I billion We say huge we which

James Ricchiuti

a do the second confidence and Thanks Or that second assuming in you have pipeline of relatively some the we actually for folks you're about talk you that see half? lot that good visibility about color. about way talk you When you you half, are viewing first improvement environment? the half, like gives just visibility macro

Yoav Zeif

we have pipeline. believe in But will both. We because -- it's the sales the Things be The better have pipeline, and will cycle. we So stages in of unknown also pipeline, uncertainty. the less this macro have we be clearer. probabilities next of a and is

we double also crystal the entire build last will Stratasys. But don't will we'll important current If get in that's and is not they way the shape. for cycle, we the the And for we'll a back ball. our guidance, what with cycle flat in have the with we if sales sales knows? sales increased years, solid the way visibility are good cycle and the self, probably But industry Over We have be them X.X and we be shape. and revenues. the company. normal, a That's reduce better good also to build strong that who

our environment. commitment challenging achieved we So a in

EBITDA a model, We have really performance unheard a also improved of our what year. strong for in with industry market. with expect we in That's business soft next

completely what manufacture. it's will to at story. different because a to will once minute, sector be back the Then for think normal happen you a the end, manufacturing Now need

Operator

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

Ananda Baruah

or whole prominently this thought continues AI factory this that's guess it? picture on Gen Is on more does hurt help one, it would an solid idea if the to Just early if here. popped that and be Does you it guys automation idea AI, it? neutral? continues have get does it conversations that, manifest, that could. on have results to months, I factories any production like that. XX up I increasingly, that as your -- have manifest the were love that context propagated around how last bigger Does thoughts what if and your over Congrats to about this, that businesses? just that about impact extent To with a the had

Yoav Zeif

Thank also company question. acquired ] developing is us. an for essential Ananda, are [ AI. you, for for Riven wishes AI that called We a the and the

the build is We already it, the deviation example. only and practically anticipate you have a big correct correct of printing. of scan a we you put the you one deviation and product before database, printing parts, and this back, the it that can But it

we whole working have additive we are will be And AI. of on Riven, group to also big focusing the at are And has somehow We the that taking and Based on set of I printing people digital believe it. because AI that a transition on build manufacturing, manufacturing. transition picture, step to we looking through cases XD analog a are go use manufacturing within in the a from versatile. manufacturing back essential

build AI can manage are We file file. working the can AI a with and file. the

with with because our and board. our have this a in focus them. it. you an important from new we in use discussed that cases, we What the I'll all whole this see AI example, And we the we is this on And predictive there of feature of give list, can in -- X we much machine investing because have integral And it maintenance want of this the are easier. are is AI? that like for important -- advisory a have and customers, an to IoT with we customer on we that thing just amazingly we they will we manufacturing goes So transition do we an AI It's do one the part make data working launched tools well The of script. few future the future. are it. platform.

our and we here. line, working AI-centric have system to together. them doubt. enable customer support adopt course, to But with Of Bottom additive, are no production strongly will not it I I share digital manufacturing will additive

Ananda Baruah

includes detail. of the as increased manufacturing for the well? that that that thanks and includes, robotics And processes use And

Yoav Zeif

arm is robot whole because and Yes you so. robots -- the replacement need it them most with of end are FDM. versatile assume of XD and with by with or of I be us way, we change printing, functionality a and industry the doing robot, the to the mainly to of significant customer

Operator

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

Yoav Zeif

you. thank So

Before visit RAPID thanking April invite everybody, at Detroit. in show to that the I to us want everybody is in online

and demonstrate We customers there. be will very of important will our solutions there also many

they do can So from customers about what think hear you firsthand our Stratasys.

So thank you for us. joining

Looking forward to updating next you quarter. again

Operator

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

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

Stratasys (SSYS) 5 Mar 252024 Q4 Earnings call transcript