NNDM - Earnings call transcript Q1 2024

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Operator

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

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

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

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

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

Yoav Stern

And Betsy. afternoon, much, Thank day the to good very you morning, Good good good day. everybody. of middle

later. are first release, from news to presentation and I'm into you. not interesting We before going possible it speak can so of as much reflection the will speak more read you you and as today hopefully would the some for it to I the your time questions, for lead read quarter about we read and going to it able what's give And toward after. you XXXX or be

To Reshaping because we was ] model very eventually just focusing emphasizing on of and it initiative us a organic acquisitions, fitting or either or on a fitting total [ growth basically than we totally quarter ], embarked direction the great start was to with the had Initiative, last quarter. which EBITDA cetera. just line. which adjusting important towards the Rather started profits And with, et it Nano [ business profitability, positive, internal a growth top

line By way, top Difficulty]. line [Technical first. is course, top the the Of the

Operator

reconnect. while our with speakers. lost wait me, Pardon we've it appears we connection Please

Yoav Stern

where just I technology dropped -- there And if everything. Gap] spite according dropped We guess went another I'm was. our important off to quarter continue or I know questions, presentation. sorry, where that profitability I -- off. is perfect not in [Audio ladies up get but to I'll from is improving adjust Initiative. trying to had of Okay. gentlemen, Nano and will I'm back. we amazing you don't of an Reshaping I'll something We be

important major RF, New radio everybody electronics. AME, the another doesn't is customers partnering application that with in it us manufacturing is for know, for of is additive this frequency. one factor This quarter.

We are Agency. concept lot the of it. that new Western of have to to fence. use Defense proof is wanting repeat customers it sales A We in

have electronics. in We new advanced customers

the names of obviously the -- does Some you here, not appear defense, name appear.

in leaders X have the We industry. space new

This sales kind guess we a defense that of contractor. a You this small part the quarter. repeat of to is can is and -- have sales industry of just repeat what defense achievements

customers advance as just in with with it. not that center. to we're AI AI we're as do mostly the Because enough we we accuracy install long capability their our to with they machine, for and to machines But requested Innovation R&D. it revenue in competitive achievements our be business, our AI DeepCube technology to and to the AI while what we a develop profit and reached money or to we starting an ever by itself, actually is how a for make business it bought doing using competing and a developing them securing are industrial the not and that have where them services products we and industry is have related advantage maintenance. intended in starting investing us potentially for us,

partner, paste On Fiery this a it important spreading, solutions, competitive in digital a comparing our with achievement. also XXX% of by robotics printing is additive the speed it we and announced important very mounting, highly and And solution to & not Esko for one-stop We edge competition. it's digital become used factor important of for is to less electronics shop side, software. our just solder is we beside mostly component the very, robotics used, increased

The mentioned is reshaping numbers, about all nano that I before obviously.

you slide. of XX%. XXX% XX% XXXX, left percentage the from side look -- XX% of margins, the XXXX, the from on to we our the had gross actual a have with compounded we expansion reflection annual XX Since starting back If growth. Since

margin gross grew Our X.Xx. by

that $X at ahead ahead Our quarterly without by million quarter acquisitions. And to operating expenses will about to quarter, assuming in breakeven, on of a from was most to proud the million in XXXX. moving point we are XXXX the still were we comparing the basis our be of the cash are as company burn and a so close reduction to and reduced QX a reduced this X/X important is that $XX is year-end, the of is point

accurate. Last very XXXX well one the is blue left The the It situation. graph. least, situation the actually following. last, and before reflected combined in and industry The industry side, of to you but leaders EBIT, not be X this is EBITDA combined shows or revenue industry profit by the the

I wouldn't that better but businesses. be manifestation business business and years is XXXX, to over is the actually an positive profit it's it years. a otherwise, X years that a of strategies grew a to and say in This X.X revenue grew million ago, combined negative. destroyed deeply poor is indication, $XXX models right growing, the the will grew, billion from from situation ago, name. On combined The $X.X market but shrunk X.X good

to would because demand which those money they're which making manufacturing market parts, all existing strategy have it buying is cheaply us, providers, the of in that the our all reasons. analysis which different say, and we And the we using for is change the capital Meanwhile, suppliers, by supplying somebody including our demand machines just to additive are multiple there. which of It's additive means of industry, industry. do. right. X and from to I service A, are in do the to practical best it we C, consolidation B, the of have to intend theory our we try because the what ability effectuate running not this have is

$X to that recommended to the our and you value a the Now listened, share activity. have year between us do it's shares has this be successful. buyback a -- of much of to and we XX% some to not ago reduced for proven $X We below share X.X more for by count inventory we We program cash last but the share. least, bought

you're the of which beyond $X.X a buying even promising buying above at the we acquisitions, share discussing today If over that and excellent of $X.XX we at it. beyond the a business Nano the and cash share, are share value discount not considering million regarding spoke a $X.XX, is and performance about of a just what

when share program in see every below opportunity, I mentioned lower certain be", the think is problem is people the it problem at people you the a So cash. should as by see share I that share certain don't past, think in other "being I've still a and than cash, and the have far, a below lot yet opportunity like opportunity. performance in that's with the of the companies price

line. So this is bottom my

would At open point, for session Betsy, this the answers. questions to up I and like

Operator

Instructions] today The Cantor question from Fitzgerald. first [Operator comes Troy with Jensen

Troy Jensen

look like want -- picture sectors break your additive other Quick or the I'd for you, it kind it, of your how exposure. just I additive I you QX of revenues, Yoav. bit a down XXXX could be bigger at between curious, you're in? if little total robotics if to much and of just or you get

Yoav Stern

additive, additive from -- additive of half half micro, about was and half additive sorry, mechanical, manufacturing all including bit electronics manufacturing a less electronics, than polymers, special than kinds, polymers. from including It

Troy Jensen

correctly. had think guys [ the announcement ever All I and Yoav, $XX.XX you ], But Stratasys been right. also, since. you I for have I Perfect. remember then extremely it's appreciate the guys offer it. if And for quiet $XX.XX,

wonder cycle if could got you Stratasys kind can one start. you this question Tomer. consolidation I give -- update us And any then So on think more for is there when of I

Yoav Stern

in nervous. we our Stratasys that I to convince be the to kids of doing me remind I very quiet reason remember the is of bad we not to good reason This -- well. are and quiet year, friendly when a manage to were because you, did are because not that The used with shareholders speak year well, intensive, when are with we we each partners And my strategic us. largest room, the are that believe last we're discussion. have not Yes, quiet, get things. about obviously, we is is other, course, contrary we quiet for as we you the XX%. continuing discussions we Stratasys it very of and and we are a solution competing industry, we very know It's know what are they

boat. So we rock kept the on we a proceed. that to Yoav, Yoavs friendly the a out to are don't how we're prices of And Eventually, potential we the Yoav but then, lot. to a obviously, It's the and cooperate. you done talking now know giving want offer reason the changed is the have up discussion right since and basis X are not very in

Troy Jensen

Okay. you know. breakeven if here? just Yes, to a cede guys me of what sense have that's and But And could great I'll let level kind need Tomer, that revenue you to I you just lastly, with you of planned floor. the will restructuring give do -- think all hit the

Tomer Pinchas

towards plan reach So to XXXX. XXXX, end breakeven our half the of is of basically, second

going are year, to our XX%. similar XX% planned business grow to we Assuming by to as this

half XXXX of will be second breakeven. The

Operator

Thompson question The Edison. next comes with from Katherine

Katherine Thompson

questions I'll questions. X the ask to want Just quickly get out.

Or might buybacks customer Secondly, have at for is the cost months to so? thirdly, and done over that that's moment Nano expect demand dependent characterize First, you've should partly seeing on steady we're so that a to there so? share changed after kind the what could now similar base pace doing the price. last can the Is of be the reshaping cut? state just program. cost or you share more how that more cost? kind I of of X to last understand the level or we quarter you QX over see guess at I And

Yoav Stern

and Okay. that. you thank Excellent for questions,

we demand to by verticals. about to to -- me Customer compared X start to Let first we to X X one. selling QX, the X are sell

the typical way, a on the very tell and Europe. other electronics weakness by in is but defense for a don't demand Israel demand, Europe it market In by general very, in maybe because conflicts So the in side, States, obviously the demand customer field, In United that, the bit do. Customer is obviously, the I conflicts can we the to because market, active, in war of vertical. the instance, the areas. Europe, of you do, mostly Israel, the feel in we itself. in in German we

in is basis is it going including to The all investing to a is we asset Or buying periphery. on going profiles from cut buy on So quality and how a R&D demand. by And on value second the the it's to return and are verticals, we in on purchase. much Is what including allocate institutions, to reduced the obviously, quarter in And less other in your is purchase it not immediate the in X improve Share number different the the to QX? of because and cash. the our answer X It's And feel buy, very more? the And research the to slow to that X, It's return. basis sorry, bit the little stay? the question, question. longer-term be medical, the general quick than and change a affecting sheet than balance the marginal basis down, it shares. higher as definitely. the is of R&D as you investing acquisitions -- -- result but is right to we cost is The first at We you're allocation. feel shares see it's a what on acquisitions believe shares quarters be academics, return on going and main investment going capital of in definitely. Last More buying a and business. shares cost going don't come, the in company's now shares. is in return the you on about next our much

So take ahead us. alternative on is basis. what a we're going to the It depends decision a it's always quarterly of

in As the is pretty I now, acquisition asset using future, mentioned bubbly. allocation accordingly. before, according and The right we're to we see the immediate it trail what

Operator

]. The Zelman question ] from [ with Saul Jericho comes next [

Unknown Analyst

in for the And presentation. off quarter especially great continue may see way, the everything Israel. is starting Yoav, and with and you that on strong going that to thank excellent

Our touched I didn't The from prayers its question. but the gentlemen gentlemen, get you. are name, on Cantor with I apologize my Fitzgerald,

traders just I'd look do trade, call when You at, see got rate, performance with is recalculate you on underperforming thesis, trade but off have you out to look let's reverse that you thesis within when it it, investors, touch more, cut answer, investment I to underperforming this question easy you to or often. When your that the your is guess draw like at portfolio. which quite

specifically I on back believe where is on in, relevant pulling believe, position? previous on anymore. this based Or underperforming. we portfolio. very like XXXX looking example, at don't it at in now the and For offer your based of I losses looking their that Are potentially recent at cutting our results, your offer? offer the Stratasys that then they end on the are continuing back from we in looks It's are they're

Yoav Stern

divest year as as losses is strategic to We're it, our not intend be not strategic of in now. going potential that future. bit months we has believe mentioned a XX% investment, a investment point believe ago, -- management, we a And a our true leader a didn't have discussion and with ago, It's sell. a for year of course, this management sharing number leads purchased to have him long to a close investment high offer competing don't not a that The getting ago -- with anything as to we is on we this bit market. vision, continuing we the that that them investment, now getting cut one. Point probably and discussion trade the we're too good it, the our strategic number Stratasys is But little the on more have investor their we is a I've few point, a cynical, an without its market today. we're lose two, I before, a cooperation. to actually. to we we're didn't looking -- it from is business without of At on definitely and -- lot investment they investment. with to than When said sorry, into

Unknown Analyst

has for question. quick that that it a Nano a Just negative Do position? maintaining feel you having -- overhang

Yoav Stern

Sorry, understand didn't I you.

Unknown Analyst

any position that reassessment maintaining Does not serious having maintaining overhang Nano -- Dimension. or for negative that have

Yoav Stern

give is this that in way example. an only The the funny accounting position the you day maintaining quarter, No. If affecting a the thing rules. because is in me and last of of

X-day If obviously, went Both Stratasys a the quarter how say, profit affect but have are we flow, not quarter, XX%. R&D. affect the day the went the by Let's in doesn't of our by a that cash last doesn't will doesn't the anything than I XX%, our doesn't accounting indicative It proceed. business, of down the share another of will doesn't other we how shares affect that's up the do It It loss, in work. have huge it affect affect it how profit. acquisition. training, rules I loss. huge and

Unknown Analyst

a much that Stratasys one consideration together and you're that -- in you is very there doing I'd in plays Thank that the with sharing par on that love out. team. to how this see for reassessment

Operator

session. to remarks. turn [Operator Instructions]. Stern concludes like for our I back any the question-and-answer over conference to This would closing Yoav

Yoav Stern

the us Thank and this questions. without to of the a to very everyone. how today by the mind intention place, strategy say saying look you come think Thank over situation the last summarize as everybody your conclusion in for relates and and I anything will Okay. years me is point. that our the situation I'll I to and Dimension you having described X yourself peculiar at your you Nano to at industry today, said very a you during around much, very the something peculiar meeting in by

you partners. for thank being I thinking Goodbye. our us very about and So much

Operator

now for presentation. has Thank today's conference you The attending concluded.

You may now disconnect.

Nano Dimension (NNDM) 3 Jun 242024 Q1 Earnings call transcript