SHPW - Earnings call transcript Q4 2021 | Shapeways Holdings, Inc.

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Operator

Good day and welcome to the Shapeways Fourth Quarter 2021 Earnings Conference Call. All participants will be in a listen only mode. [Operator Instructions] Please note this event is being recorded. I will now like to turn the conference over to Ms. Nikki Sacks. ahead. go Please Ma'am

Nikki Sacks

prepared to earnings welcome in quarter year follow and listen-only Greetings At Shapeways this XXXX the will session call. A are time end mode. and question-and-answer fourth remarks. all a participants

As recorded. this a conference reminder, being is

like started, Any deemed pursuant XXXX. call will Securities this contained remind everyone include the Laws of of to Federal Litigation forward-looking forward-looking statements Provisions Reform call which Safe are Before be I'd in that statements statements. made making we of to get Securities meaning that of Harbor are during this Private historical that the management Act fact, to within statements not statements should be the be

and financial quarter performance, the to current and or results for could those place Our based various XXXX, opportunity of material that financial you operating regarding statements, should forward-looking on cause assumptions. undue without anticipated those future uncertainties limitation from not projected first reliance results risks including these growth actual and upon implied statements. materially Accordingly, statements statements. involve is statements forward-looking These and expected estimates market by strategy, our business differ

broadcast non-GAAP close and in GAAP release the in this results with Form There's conference reconciliation can call including press required provided uncertainties shapeways.com. March our the available issued business, except only Also, to today's please the website XXXX. forward-looking found on we’ll during our today, which measures. statements. law at year our the see XXst, after any the a for or XX-K obligations For of company's annual certain of update description the call, currently XXXX. versus XXst, be market Company's revise information showing The as risks course today, refer schedule filings, SEC non-GAAP by to financial Shapeways on S associated the report ended describes to December speaks

Officer; would now Jennifer to and Walsh, Q&A Kress, the Levy, And over Chief turn available call to for Miko are today, Executive is I also Officer; like Chief Greg? Officer. the On Greg Greg. call Financial Revenue Chief

Greg Kress

Thank strategic year to discuss fourth our our was joining everyone. Shapeways’ an priorities. and quarter September afternoon, became results us the on XXXX year-end business XXXX. and you as we XXXX, XXth, a exciting Good traded for and for combination publicly completed company us for

customer a drive to additive manufacturing expand execute our strategic demand we are Shapeways and to to well-positioned continued digital additive broad industrial utilize hundred continue manufacturing XX needs. Significantly, technologies manufacturing We and a grade materials finishes, is us adapt and built new of customers. solutions our our is as flexibility and quality, high in scale to hardware platform We large, financial to make by Further range additive plan by a to with which technologies agnostic approximately on manufacturing to powered software. to long-term garden we our a out as a We our our make providing roll strategic to market quickly service. software broadening allows manufacturing the capabilities. our on growth leader purpose manufacturing innovations. strategy flexible proprietary accessible growing market and and manufacturing industry. provide materials, fast We currently investments continue and shifts

materials million X XX digital a million hundred platform parts and Over to manufacturing finishes customers have in XXX over in the approximately and delivered in the we have class years, best countries. built over

including to has end which supports powered and for process, the part by planning, manufacturing proprietary and end Our success our manufacturing analysis, supporting customers. production automating orders, software, pre-production, been our

execute to high advance low pandemic, on at customers. mix for the strategy competencies our including challenges, core volume scale some production of our brought XXXX the continue and While we delivering

prior year, above in of revenues X% last our call. full-year provided delivered on guidance we XXXX, and million quarters’ For slightly increase a $XX.X representing

We from by to points XXX prior our GAAP expanded top basis year, XX% profit margins also and grew of the XX.X%. gross margin tier gross by gross margins

As have growth. ahead, levers we for we look multiple

our and capturing and growth of scalable which software. investment leverage long highly and committed term with important across to remain platform As our We share making align our years expanding we plan. investments, strategic market

During the our allow initiatives, growth each progress made upcoming date fourth believe these accelerate quarters. and in will quarter to XXXX, in to key we of us on we've which

quarter machines composites, material capabilities. we continue to XXXX, we XXXX quarter additive and First, across of the Desktop manufacturing a expansion date new we the year. wood up global metals, eight three To our of our play our have fourth and Metal expand capabilities. the in role initiatives machines polymers expand digital of in casting end elastomers, footprint and In will the and of utilizing began offerings the first rollout implementing significant to anticipate the additive and applications. growth begun by These of and printers

technologies, market market remains our manufacturing to and we our more on important revenue wallet initially new of chain impact investment component anticipate an leverage an increase capabilities, we and with online by the a will share margins, new we come As they increased our typical but of our Additive is penetration. manufacturing can small them in our customers capture software the supply have launch from be capabilities to of as source. capacity, the expect overall and digital manufacturing and increasing create

making we're our to expansion. market in progress Second, go

that enterprise customer had market business and our added business continue team As we serve. new and and recently focus we we on five increasing been a Shapeways a sales will opportunities, professionals. have middle have self-service have development historically we to loyal been base and large

our market end markets, segment. accelerate a high to opportunity automotive industrial, key for of needs and in new times we our with these inbound technology in pleased date also orders into believe particular, utilize force, The we're and market demanding increased fill go sales typical with medical, longer verticals we strategy our our in sales and parts build our continuation business and an performance have adoption OEM. as but wins. positioned out offering many our well of new with and we and align expect including see view take our to middle this a To hardware to to use aerospace pipeline. closing We geographies. potential material and investment sales we our In strategy growing our with new printer opportunity objective However, expand team are XXXX, see compelling to been talking the have to we customers OEMs than sales,

about increased markets. we accelerated sales with revenue into envision that customers from were We to by of expanding prior new continue to see But an team, come XX% our XXXX. repeat acquired growth

growth The that platform is built software. Shapeways of element differentiating factor. our strategy we've third is The

and We economics are solution. to we with shelf same types off the reap that of an offer to beginning software that including manufacturers, efficiency benefits enjoy, to better the

able digitize a their processes. rolled product brand and We phase In XXXX, purpose for built simpler, manufacturers manufacturers the production. printing are and not software that Otto, under target small pricing the are our market particularly grade capital software are necessary platform medium optimal help traditional fit, publicly invest customers our The of to offering and use a confident that accelerate that digital for fourth can SaaS XD Otto case. with to flexible faster, to sized industrial to path time the able is platform manufacturers, and we SaaS their the more traditional investments provides manufacturing to small be the by out of fully gain and to to make and digitize quarter transformation the mid-size first needs. feedback on never manufacturing leverage are going businesses our their can that

will We expect additional of out over and expanded to years, end-to-end capabilities digitize to which manufacturing software this next roll additional include two phases processes. functionality ordering the

As XXXX, us we market plan capture strategic share. and make expand we continue on will to and our help move investments execute through growth the to our

We the approaching see believe and towards solutions. the of digitization adoption overall point to well manufacturing this digital continue market to We positioned an believe of is is manufacturing, in demand. inflection we Shapeways capture it shifting

our the developed quality years. last and deliver have have and roadmap the initiatives XX customers come our to to us new pipeline, We develop accelerate strong over expect innovative a high solutions help

also already strategy software investments, the combination strategic the continued we expect targeted manufacturing rollout additive and base. along planned will and only We but capacity of increase capture wallet. with the would acquisition acquisitions also not looking offering share at more installed manufacturing capabilities our of of our capabilities our Through an to with our are complimentary that add reach execution of

thank always the our and to Shapeways As all want I stakeholders and support. investors, their our for of entire trust team,

we that discuss as will the plan more digital detail. place and expand our confident have in leader We our position share and to now in manufacturing. Jennifer further in strategic market right results a financial are capture

Jennifer Walsh

an update our recap and position. a Thanks, full XXXX quarter sheet year performance give the of Greg. fourth and provide balance I'll on

with which For was to a increase spending. guidance our in X% customers revenues million, slightly our above XXXX, continued their as delivered we XX.X existing

website. For offsetting XXXX approximately their a services to customers, direct year-over-year. X% an e-commerce sell accounted million, shop of where this utilizing for model revenue provides platform selects XX% specifications, or Shapeways Shapeways Slightly for for of that additive the directly was increase to revenue sales, and the provide where marketplace the we their was products owners to customer sales, manufacturing XX.X who

in X.X For down X.X revenue and revenue million X.X the fourth X% accounted was was XX% of million sales In XXXX, year to the period. marketplace that prior year-over-year. for million about or quarter, compared

focus growth middle market aspect sales enterprise and towards prioritizing and cycles, this business. our growing As we which spend longer to are have have the resources our shifted opportunities, we of

for by And XXX quarter XXX quarter and GAAP year to margin full improvement Our year by prior saw fourth basis to the both the basis with XX.X%. year increasing the gross fourth points the points over XX.X%.

ramp quarter, We year. expenses new our in our year. $X.X in even deliver and were tier was company. last Full to to $X.X implement are becoming year and include corporate loss in a technologies. for to loss X.X million gross to adjusted margins on efforts a $XX.X These compared adjusted was top development million expenses publicly the of to X.X other to other last million related quarter prior compared EBITDA traded $XX.X of as results future million to growth an expenses pleased year. business spend a increase compared higher spending audit marketing a personnel, more of drive million and SG&A prior X.X were full-year of X.X Fourth continue the we a And the million year. gain million million for fourth compared SG&A growth, EBITDA loss and to

in increase an based had also compensation. We stock

Turning balance to sheet. our

and quarter us net including December strategic purchasing our The acquisitions. balance and XXst, sheet to the strength increased new our a proceeds out cash the XXXX, transaction our of fund of initiatives, $XX.X totaled sales positions growth As from reflecting make building million targeted during hardware XXXX, fourth and into investment equivalence team strategic potentially our to business cash combination. towards and

As pressures, we some there continues unease. potential inflationary including geopolitical supply look chain ahead, and be to macro uncertainty, challenges,

more discussed. we roll are strategies broadly the Additionally, out that beginning Greg to just

As will be we at full-year such, time. not providing this guidance

However, million and we $X.X In optimistic XXXX, our to revenue $X.X the million. company anticipates progress. between are first about quarter be the of

In as addition limited see materials, impact so far, forward we buys have the executed an we had we could pressures trajectory. depending on on seen but inflationary continued

year the back successfully prepared will our plan. This in hardware our remain a in of both we execute position initiatives continued an in half some our With strategic machines, resources that ourselves ahead, our of rollout on new and continue gross to Metal the investments software and and see for as anticipate remarks. years we confident our we we our ramp product, development in to the growth business long-term on ramp, investment increase our near-term market in sales margins. Otto go of Desktop the completes up impact As

We for questions. will now the open call Operator?

Operator

with Group. first the And Instructions] Greg Palm come [Operator Craig-Hallum from question will Capital

Danny Eggerichs

that just This equipment, good start guess Congrats you getting? how I maybe year the to end Greg are come metals early seeing side. Eggerichs the traction customers using new some of has both? and I been to is on Have customers will for feedback the start that you're based polymer tape on guys. today. of just deploying know what wondering Desktop it's been the kind Danny of on I early Metal and stages utilize existing

Greg Kress

Yeah, into ramp continued great. in facility with capacity Well, with our thanks and the desktop the then that Eindhoven Island capabilities QX, have and City metal for the joining we started our question's call today both QX, Long to and metal manufacturing in facility. we

a few with that both tech product started We also we that look line complimented and and metal. and machine at capacity envision types car the the different product line to wood with

what to that capacity orders the we deliver just think to in the first process. to for way up And somewhat were see optimize good say There's able say, a that or new now bringing really is brand product bit but because the have slower. a again, really And the of and there this too have making some what across lines. couple make so the to we I all have typically learning we those we those We customers. machines high because entered with how seen early our of, wanted limited it's so sure technology. sense we're a was right still really we we've investment quality is we comprehensive that process get when I launch build have quite to speed that to consumed market learning a I quarters, should products would are machines started get to that far And

a you very, with but applications big very push we would necessarily And so across between, know, we for And for learn those that right we I just see started through us And very started. to slow us through products. a to consider QX more getting of specific expect are with it, what rest think didn't that, still and to the there's I customers lot I do ready traction year ensure the there. after is

Danny Eggerichs

the those in That guess, commentary kind that Yep. terms on gave quantify there and margin or year? I investments you're that the kind how I moving exactly to that expecting, the that whether there, makes does all pressures of I the what it. appreciate there, is impact, Got of to that mean? that guess sense. commentary, way QX from any throughout moves in Is coming you of

Greg Kress

able you'll a there's, brand Yeah, is launch until that's be optimize technology, see new fully to going a, what to not ultimately we machine we're gross margin. when utilized, that asset or is that

we plan, we brand so gross time. a and percentage plan allow is our technology new build margin do and in first And our in the forecast we over accordingly when we depress what for and allow to it launch capacity

really it do model down control fast how cost it. we comes ramping well as how so And we and to things are our

do we implications tightly control can do So margin that of the the what you'll see us we rollout so manage it. technologies if is gross

year, our And get through think until of to assumptions a aren't of better kind so once to about talk guidance we capacity in the really able able we stable position throughout beginning pressures half provide see the lot right of be in with year. now to we that this we've some I being see any we'll the be a technology. that would But we validated once rest of utilized new more the of that,

Danny Eggerichs

may expecting end on far one underperformed going Maybe that just so it. and now, with kind you last markets geographies in me, one world into quarter the of or from Got any specific everything outperformed QX. right were or what this

Greg Kress

probably facing. marketplace Ultimately the are as has they’re much coming price that customers implications most And by driven we of customers, these lot things COVID, our Ukraine, from customers. occurring in put has these love conflict think I on probably you you are customers, things on you that's happening more lot sensitive this the pressure in all as and, the still going those world. ultimately Yeah, more pressure those a a consumer see ultimately, know, of know,

with those think that we're right I lot with on a hard these again, businesses efforts to know we of some really But services market a less working a are lot market. customers, they strong dealing value of sales there. are on our those that additive and the that and pressure see we happening in reactive the are And enterprise refocus we those have associated manufacturing so maybe have And are pressures really of to product that because things focusing now. customers fit

to excited on that So a I'm to we're And the associated we next it. date. progress to about really focus with I'm And strong to what's continue the several and happy quarters. building over see come pipeline

Operator

question Jensen come Troy go Please from with Street The will ahead, sir. Lake next Capital.

Troy Jensen

back back what for for during to can you about color you you year Quick, give in any I The XX million going if guys XXXX. range guidance, number is year you the think this full guess, Greg go like. any And on process, full either look revenues Jennifer. or us, talked

Greg Kress

any Yes. Thanks until in reluctant joining. give guidance really assumptions Troy still for to the validated have we forward One, we're we've our model. that

that the had think of original There projection provided. X things we back. a couple X I we that take impact One a timing transaction our to months. was delayed step that is

is pushed a lot definitely that And so out. funding of

over also to a out as couple And push revenue well. push so you're out going that see quarters

The raise that a of raise money could of amount XXX% total did wanted. didn't second what raise have. of we We the money. a thing we We're that putting but is to we didn't we amount work, conservable

cost for inorganic there's And that. two lot go us And perspective on accelerate that But our now our are an right that there things traction not so making and to additive that certifications is to us technologies M&A lot do we of of organically, to one portfolio. good initiatives we opportunity a gaining in what those of lot and business do and from we in as the we're want four effective and look help number. opportunity sure definitely the materials the on strategic in way that's a that finishes at consolidation only expansion, invest impact we're a manufacturing a for focused very but go

really and that for been good opportunities complimentary strategy. that we've spending so And to inorganic a time of could looking be lot energy

business, here. self-service good our is thing that strategy we've traction focused out on second we and are beyond go-to-market The building made

enterprise so dividends. think will a But we in built validate to professionals. close things how the business this than to and different need first our to deals, far that traditional one, self-service year. it these We the strategy of deals take that long more full-time because one validate that this have an are pay is larger They've of is five assumptions the incredible are process does in actually pipeline half we those these development need I and model,

The is customer of manufacturing focused thing really looking methods really those we're wallet. capturing at third more and on traditional share

needs, them how at know so existing and but base metal, And we with they're looking because molding getting have our customer injection we needs, those else. and support those sheet CNC can done somewhere they

a we've support to that. and supply is the on which end we service lot our our us utilizing front for sense then far of it's the find once gained fourth we help the small a And so guidance focus really then software able business. the that go better And software. to a been I yes, be of and under chain have want And showing the kind X so we'll on initiatives. assumptions those four In we that, rollouts. across insight to of Phase and consider we but deployed and and the software, of development brand in QX validate with traction we the potential, see working And monetizing again, last think for focusing Otto, good manufacturers quarter, ordering good

Troy Jensen

but the kind specifically more? conviction You going auto here. ramping visibility of for ramp inflection it that? about us second Well. Is it numbers, -- is or talking inflection you're about a a What the don't Greg, have second Is full-year a in new to how half give drive on half your to second technologies? additive half. a

Greg Kress

could we're that four comes any drive all I initiatives, those to of on And point think four and us. inflection initiatives for of down those it pushing

we do as kind those of think each want necessary you'll one ramp we success to much have associated more most down assumption, as possible. of those the the look where that it And it, as kind scale a is their lot own of forward. seeing with as each of what see I and of validate we're and and double think allow I to adjust one

Troy Jensen

for questions here Jennifer. Couple

sequentially on $X.X what guidance that or was million to or me the XXXX basis SG&A throughout is a So just give quarter. quarterly you OpEx you Will on in can basis? full-year expect any

Jennifer Walsh

looking guidance. forward giving not we're Again,

I is investing. we will going SG&A think, where be, indicator of mentioned, a QX as decent Greg to be are but

going in we're resources G&A people hiring making So operating investments to marketing be and and spend. additional sales

anticipate year. So SG&A that ramp do I throughout will the expenses

Troy Jensen

R&D, Sequentially, you and here? same the you same investments of on expect question think given would ramps the

Jennifer Walsh

the I do grow, expect at clip. same R&D but not

So again, We're as But see investing bigger versus think product R&D. engineers and there increases hiring you'll people. I actually in we're well. SG&A

Troy Jensen

I visibility look maybe And look what or all could more right? to I you at what going this put number mean think look you we the a Or like year a for and what all is think gross the need models for, little under would margins, than on do? got year publish you quarter? the QX So, for like margins bit like to

Jennifer Walsh

we're but similar Again, something year last very XX% last year giving in and we around not guidance, QX between seeing was what and saw XX%. forward looking We're QX.

But So technologies I continue the do -- execute new think pressure buy to throughout I ramp as in we'll Greg to I versus anticipate year. see again, we if don't mentioned, build and mean it plummet. don't there strategies I some potentially

I we might dramatic points couple see of think declines but again, a of there, not changes. we'll,

Operator

Jim next Ricchiuti will from The come with Needham & question Company.

Jim Ricchiuti

give you for direct sales can and sales the us the quarter? marketplace Jennifer,

Jennifer Walsh

a of there. is couple XX/XX, or here take about business and our points give generally So,

use that can estimate quarter. you rough So the against

Jim Ricchiuti

you? for didn't You QX, think did. I gave it you

Jennifer Walsh

was fourth actually it year it about quarter, around I the was was was about XX/XX. XX/XX. it In It think there. But or right

a that's think for QX. reasonal I estimate So

Jim Ricchiuti

the marketplace? pretty in quarter, at we QX, much the of we're breakdown end so The, think do the how versus about Okay. direct

Jennifer Walsh

expect couple wouldn't proportion would dramatically versus terms of the proportion. we more wouldn't to higher little marketplace. anticipate it But we've mentioned, But a being higher a direct a I decline different not a direct us points in be but XX/XX dramatically in marketplace, with from -- again, seen different versus I -- might of it as I again, direct in higher be of business. different, marketplace slightly versus

Jim Ricchiuti

Okay.

you're you excited think pipeline when little What out about what a some QX? you're I of deals. these you're how as of judging in be sound what understand close, the give terms and you You -- seeing color you pursuing larger about us as but enterprise talked we seeing -- look predict can't about I which really you in QX -- through on your that there, we these verticals talked might can Greg, progress into bit area more

Greg Kress

Yeah. Thank you.

I What a and resource think in us a validating more aligns and is specific of focused development that's hiring it assumptions in the each place. across geographies the went testing we lot with with business of great more kind a We a specific verticals we is seen to we've we've as question. strategy very put an technical and talent what of -- so one of And far help them. bring on seen basically outside traction support sale.

move much been larger past, and the lucky have utilizing to we had in that lot that Shapeways And help and to pipelines really users us generated. enterprise utilize the and And level go ultimately the able coming And what because customers there's be know, we've good with holistically had these medical, able that to is, to services. to we've us seen Shapeways. our opportunities. think speaks as business on a I we've verticals, of being you been aerospace very industrial it need into customers more self-service utilize the technical

multiyear know, is deals. think key I are They're at, time take you levels to they moving close. of thing targets the they looking and there

of looking much those strategic we're transactions bigger, with types so more customers. at And

that that is continuing I as see and lot. we're we've encouraging into it that far, QX. look think we're so learning a so to we expand team the And developed And to pipeline

that them, promise. we'll And think right to think the validate verticals down But to and quickly are working I continue need showing what's that assumptions some I so double we we it's but signs, what the all key most showing very there's and as move on validate.

Jim Ricchiuti

you're And confidence deals that larger these half more some to business, you'll talk a in of enterprise about? second that in you ramp, when be you close assuming so about a this talking position are

Greg Kress

expect fully I would Yeah, so.

that know, ongoing think us associated have have enough that revenue proven like, model. ongoing those sales again and I some, orders for with the up and closed to we associated them fully you are not stand we've out But with them. say

And the those on we'll so closing to back what in we'll and see and of more to the start more themselves we to and be see And more compound year. capacity those, and and is of more expect supply expect utilize that chain.

Jim Ricchiuti

you're area. looks it like some this adding additional to in be going And headcount

Greg Kress

Yes.

ramping to are and those side technical, be on specifically user more resources application able support around We marketing business support teams. development help to the resources go the those resources

Jim Ricchiuti

So that? looking if not in color expenses but QX the How Is half? second do and to on provide there and necessarily in -- into about specifics, how expense beyond begin think looking just levels we we QX for the general. about anything thinking should be scale -- any you could

Greg Kress

Yes.

clip I that think forward think I And provided same grow, will to I grow to right. how to will and measure pacing. QX at be the think give they'll we're to question looking guidance but a earlier, going I not Jennifer expenses expenses, that the say on we're answer of they're the continue but good reluctant

I forward looking in in so you count. as which something purposes, modeling we investment I think same continued pace maybe did But guys are guys plan your for you And QX. could put not in in it's head at think the as

Operator

Stifel. The go come Noelle next from Please with ahead. Dilts question will

Noelle Dilts

feedback first you're just, traction sort hoping software? early as that have or kind that been launched first with of now you quarter, any of adjustments you that gaining kind some in I that the getting the Thanks. was So making of you Otto you're and could move forward

Greg Kress

And Noelle. great a That's for thanks thanks. No, joining. question,

was rollout, Phase small service allowed launched utilize First, a that our do And QX we strategy, this fashion. services with our manufacturing just what software to in to offer in and additive recap manufacturers of targeted label didn't is it them our what white Otto today. really our and X

we scenes. margin be with And was interest. So requires discounted providing able make to And by a And manufacturing they’d software a but at own through what platform. the far amount It and really seen more self-service we access so services the on under to and that the model we've need generate make to fulfilled is tremendous brand of the be they're a lot their Shapeways orders offer been outbound those to software it X. able -- on -- a scale, that their process. sale. and is behind customers it able brand we're rep we've when to additive them There actually to to their facilitate markup able own sales gross look

what revenue a year, into jump back And you'll did lot get to is drive from all an that and of QX to validated of what bit of assumptions associated started, I'd that how in little broader -- get any half expanding the different to time utilizing a And we the see before QX. I bit on we to the customer as look and with well. to -- that so really over is trying manufacturing customers flows kind of the actually revenue And real accelerate usability, they're process its much service onboarding base again, minimize and we as And Shapeway. you in to then fast them things onboarded little way. some like get to a spend throughout

made. between progress that two will interesting those I about able we'll end of think And have think to there's be the of between excited end year. you say the with the the but that so between the things now learn And share we year, we've to things, that and and a I of now I'm lot I lot a

Noelle Dilts

Okay.

my on that So touched second kind of question.

of answered of it table on of path which about I year. be like is sort this you SaaS that's see you're half. for thinking still sort going a was start kind revenues think do something to that sounds which generating to you and the back it, the And

Greg Kress

Yes it will.

Noelle Dilts

on kind sort And then if of business force, change, on thumb, when adding revenue, development, those adding folks, rule start investments? to any the thoughts generating just any a the period it's folks generating in general, and terms really think those business adding do of of typically development you don't know about I how but sales payback to

Greg Kress

think But started hiring QX, quarter I reps, investments bonus proving out that I in are we be like to will it's say sales Yeah, payback and finish right still time now. trying what their ones hard a out hiring obviously, on we're out structure. a specifically is mid period close to those

out test And the of the off orders process sales tend that to approved close validation is work in orders been out through supplier lot that able they've working process of we been so they've sales build and close. And the And some able fully the we with bat. close those is that right and and we go to through handful to the create, a process. way pipeline initial And test they and become a to QX. more a were I've been impressed the really able team

now. of And a think three that over process orders, QX, months, so next those of right we're with associated of in validating I that very the timeline and it'll middle lot to the be then the kind because

able out our I I those we off based of excited think the methodically then this and sales we're to very proves think I'm we're easier, this I that out be sign. so showing a think I the going bit are so that we've steps of far taken right But making. And progress will questions And that through the we'll as little about at building based force. look say, ROI answer some that,

Noelle Dilts

that bit you're of printing? facing question expand on risk Thanks. a complete, last commodity able little is, into buying any -- materials, of you know but with then sort mentioned how the pre-buying for you input given what's materials thinking prices how to And you potential about maybe higher were some much going prices, I could

Greg Kress

and just there's do stock being at part use. each we associated stock up don't that need we some much forward-looking around not We technology want to of on said, With being It's sitting too model. that to Typically business -- material. we our have put use. don't stock that

cause I it. with in the model the machine, so And each individual look do associated or that you portion a the is at that model model of individual cause material percentage think if cost

a we so be raw costs model, that don't material aware that being up that in said, could going slight that our down pressures impact implications and will margins business. model And adjustments picture. flow to machine the the keep the in I portion market. but if labor gross a is of on at have capacity, there we should specifically price expect time, With as COGS be fully And small mind that that that over look in across eventually price through dramatic overhead

Operator

to go session. closing for Greg question Kress turn remarks. to would back Mr. Please like any our concludes the ahead. This answer I over and conference

Greg Kress

you. thank Yeah,

taking and providing time at everybody off, entire We forward us. call to you joining great coming just more progress the behalf I Shapeways appreciate and We're myself thank First months. join the team. to Shapeways next Thank over support. everyone's for all the of the making updates here want look to on I you for

Operator

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

You disconnect. may now

Shapeways (SHPWQ) 31 Mar 222021 Q4 Earnings call transcript