SHPW - Earnings call 3 2023 | Shapeways Holdings, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings, and welcome to Shapeways Third Quarter 2023 Earnings Call. [Operator Instructions] As a reminder, the conference is being recorded.

Before we get started, I'd like to remind everyone that management will be making statements during this call that include forward-looking statements within the meaning of federal securities laws, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements contained in this call that are not statements of historical facts should be deemed to be forward-looking statements.

All forward-looking statements, including, without limitation, statements regarding our business strategy, future financial and operating performance, projected financial results for the fourth quarter of 2023, timing or results of any strategic transactions or future cost-cutting measures, impact of recent acquisitions, new offerings and market opportunity are based upon current estimates and various assumptions. risks materially that implied from forward-looking material results cause by involve statements. differ to those statements and could uncertainties actual these These anticipated or reliance should these place you undue Accordingly, statements. not on

required see today, Form non-GAAP conference the The found statements. risks date There information call, XX, the measure. XX, by course the on currently associated press business, our results filings, be is law, For before descriptions call the we to during today's financial Shapeways versus update to disclaims the report non-GAAP is quarter broadcast or available and SEC on of company's open, in a quarterly which revise of which issued EBITDA, XXXX. this speaks can for XXXX. a Also, with our release forward-looking only reconciliation provided uncertainties obligation, November refer our schedule market in please XX-Q as shapeways.com. adjusted except to company's September website, including ended GAAP the any showing

call today are Financial Officer; Chief Greg? Recchi, I'd to the And over Chief Kress, now call Alberto to Officer. and like Executive Greg. turn Greg the On

Gregory Kress

financial joining our financial CFO, discuss plans. will then our Recchi, us and Thanks Third our Quarter begin for Shapeways results by quarter XXXX outlook quarter. will I everyone. afternoon, initiatives and Good update, business results Alberto and for on progress the growth and to key strategic providing fourth third a discuss

continued grow and revenue. software third quarter, to we enterprise In execute to strategy our the manufacturing

inflection take software. platform well manufacturing combines And digital is opportunity opportunity high-quality, manufacturing and on-demand We overall adoption solutions. shifting of that positioned this of our of proprietary digitization array the flexible, advantage point believe Shapeways market that we the with that industries due unchanged. market to are of we an purpose-built remains across for to conviction in Our is approaching an manufacturing towards believe

to regards the our enterprise are traction progress with customers. We our with manufacturing increasing and software by encouraged business

operating remain cost plan disciplined we our our continued we have execute and Additionally, to and refine prudent as structure.

as new business traction Our increased and improved scaling value materials, of late lifetime which such expansion commitments, launched MFG remain retention, as is in customer encouraged software our initiatives and acquisition, expected, SaaS growing was by contract QX. we

MFG believe proposition compelling are save on by our material them we Through materials, costs. we providing value a helping to raw customers

recognized $X.X have year-to-date, XX% of prior We million revenues year software up from period.

order a to to provide product software critical shift manufacturing allowing scale end-to-end software digital Our manufacturing manufacturers, to leverage in to and productivity. for increase them their business tool

Turning to enterprise our manufacturing sales.

customer million these to anticipate our expected support revenue commitment and and new long-term end production increase in market transportation programs and in by to to to approximately that manufacturers volume the manufacturers continue We agreements for $X enterprise with affirms focus our next the of investments -- benefits multiyear accelerating annualized partnering leading to from up Tier We quarters. secured and production. ramp X coming with year. OEM proficiency This towards QX the middle automotive X in seeing opportunities

from of In XXX our providing same share stable, grew compared XX% X saw on customers operations, our year a wallet our increase with the initiatives. to revenue customers for last and top projects remain self-service, the good from continue We revenues existing period to of year. sales growth e-commerce this multiyear months first our foundation

backdrop are rational a seeing regards optimistic business. competitive our with more are that e-commerce we We to

cycle macroeconomic initiated of encouraged remain our and quarter. we elongated the in business measures in of also sales we in the a While number uncertainty, momentum near-term cost the by light reduction

and a expenditures. reduction discretionary in a force new noncritical in completed in in operating This capital included a reduction XXXX; hires; reduction October and

alternatives strategic the alternatives sale other strategic working portion we combination, transactions. a also of company. have limitation, a business may asset of strategic capital include, a with available a without advisers and the addition, considering company's to or material been merger, Potential In raise, the a

We have any details have share. and not made additional any not time, at do any to potential decisions regarding transaction, this

to investors for and our financial entire detail. like results the our Shapeways support. team, our thank ongoing will our would their in discuss I customers, stakeholders now more Alberto all

Alberto Recchi

Thanks, and year provide enterprise guidance and X into fourth Greg. quarter, delays third give shipment was prior the third update flat $X.X revenue to from a fourth I'll provide the for on sheet related In of due quarter contracted balance from the third our the guidance quarter. million performance, customers. million about an worth of slightly recap quarter the quarter XXXX with revenue to our below position $X.X

We saw from marketplace sales and lower partially enterprise growth sales in offset by self-service. software and

quarter Our third to XX% the quarter the XXX compared grew third to in XX% basis gross margins XXXX, of but the sequentially about quarter points. were by in compared second

to more consolidation of shift to and we growth mix manufacturing software continue printing price new shipping change our time to recently partially contribution over by margin ramping offset We of realizing see expansion increases. sales, U.S. higher deliver a the as well operation higher-margin optimization the We solid due softer technologies, gross our from costs, benefits margin cost as the as and was and anticipate plan. from the non-XD deployed primarily year-over-year

SG&A year, primarily write-off $X.X and not were million EBITDA the will compared professional equipment. million increased associated our that quarter of $X.X of million a to with utilized in operation prior a third reflecting the loss million, and for in prepaid $XX services fees adjusted year. be the in last equipment such certain to of $X third compared Third a expenses quarter was of loss quarter

completed reduction of $X.X our realizing to employees, force as recently a cost OpEx, head savings subsequent including which As end. including have we count of alignment Greg We was in XX% million initiatives, cost anticipate a quarter annualized our implemented of result reorganization. in mentioned, approximately

balance sheet. our to Turning

September of marketable equivalents and our XXXX, As XX, million. $XX.X totaled cash cash, securities

and proactively our burn liquidity. remain cash million approximately the prudent in and improving cash further $X on we During monitoring quarter, while focused deployed our we

the revenue for range XXXX, million. $X.X we anticipate in the quarter of fourth ahead, million be of $XX to to Looking

open will call Operator? prepared now With and we questions. remarks, the this, completed we for our

Operator

[Operator Instructions] Palm Greg The Craig-Hallum. with first today comes from question

Danny Eggerichs

Greg This Eggerichs terms more on with of terms is your for at throughout how like maybe seeing of enterprise today. it in then of kind start I'd what demand, broadly some progressed in of the kind to the Danny maybe pushouts, some of just of and customers. you're quarter,

level get in into customers $XXX,XXX pushed said given the budgets? their thought you some that there others you think QX. any your of hit around in managing that risk I just QX? those, What's And and maybe confidence in maybe that XXXX, to do fact, that QX from QX year-end would hit is

Gregory Kress

Yes. the would in Thanks, seeing and good side, a from Danny. perspective traction. on One, question. good I really thanks still we're demand sales one, for joining say,

Our to we customers, going and on build on are only enterprise I we wallet. strategy of but strong expanding customers new out their brought continue pipeline. not And we is working. the supporting are customers, also a And feel bringing have that

So that on manufacturing quite side. we're good feeling the about

a To related already your point from of that QX, pushed shipped. to QX lot the is that revenue into

quality to acceptance that it thing of it's just are or enterprise-level or potentially I move different like. making the think finding one through fast reviewing they the that be off whatever steps historically quickly. be, we with in of a think signing as on we the check control customers or are is, that quite as I order we're thought process process, that might happen of And less in we able we'd whether would

step X it or take get to And customer us a them step. to to a so week up or and we from may may reach to set out review to back that

And we're where as end the more continue closing But better are strong, the think get we from same we to so day, and win that better at feel of we'll I like orders the orders I customer at it base. go. the

there. expansion of the really wallet So is

the we -- end then think already. we're the really making we of see will goes, year And progress but actually I strong really, how

quite we're So the feeling that we're guidance about for setting good QX.

Danny Eggerichs

quick I you've a more sense. that have if That higher outlook of cost some and of Maybe new one. macro taken gross there. if initiatives of kind absorption, I of assume you the the software margin can previously contribution, you less makes consistent fixed maybe then also just maybe kind hit but on cost it. in environment, guess Got the the

think kind of I to gross get margin how you that mid-XXs, the about guess in should we got next back low anything Can you So to quarters? couple of there?

Gregory Kress

of of in Yes. a to From our getting the further we price sight back see perspective, There's line market. opportunity that. to for lot

kind reversed the of that of some seen more from the And space things pressures, the of about those of of a e-commerce price. on specifically one of we've while talked past is is in decisions we've you've have what the channels. in think lot some maintained competitors our that the price I

reap that optimize with of manufacturing cost so the gross the more and back basis. And volumes same coming to into volume business, and margin us more more from more our allows production

And our of the higher line significant scale. then revenue allows, sight so impact continues gross becomes And amount as mix. margin continuing. we to that to a again, disproportionate And see software and obviously, that more much more of that to

in of And direction. that so the line yes, continuing right to see sight move we to

Operator

comes question The Company. Jim Instructions] Needham [Operator from with Ricchiuti next &

James Ricchiuti

that in you you shipping expecting last order think had anticipated customer seeing? from ship? enterprise this part Or you're been a Did of that to in there you're of call, piece ship the order that mentioned that some that in ship slippage that to ongoing I business of QX. in was expecting is an

Gregory Kress

question. we of in exact in order for part ship QX I was joining. additional that thanks, Well, an into Jim, from appreciate did customer. orders that that QX order referenced same And that didn't back in ship actually, QX. QX, the Yes, the

ship And but back QX in that the in did we referenced so order QX. yes, -- out

James Ricchiuti

it. generated, may first joined of I the the detail, in the said little a provided about QX? bit Can your Got over enterprise you does from this that of that. have like gave call if apologize believe customers? I you may a what, -- little look but late, what year, I And half half in revenues you I you think you --

Gregory Kress

enterprise don't that. ready my give number that customers. in top but we see you. up head, did -- have didn't again, for we for But XX% mention what remarks I was our with the that can for those that prepared months like the we No, growth of follow revenue script off X think And the first we always our in our I year-over-year did

we to grow. that see continuing base So are customer

about X X we've line months. it's a that we solve that And then may our we've we're But really some year-over-year pressure, e-commerce the over of the last and revenue stabilized seeing lot to channels had actually although that time. on pressure talked over

side. but business manufacturing continue, manufacturing pretty customers, growth see so most our least from stabilize And of enterprise we'll consistently, seeing our and on at we're that coming the

James Ricchiuti

moving seeing some But there's obviously, as parts here, And how if cost you've you're actions it. market the and in with cash the some looking some sense give wondering you Got can of you're at burn what the in taken. to us QX. I'm

Gregory Kress

Yes.

goal focusing is really cash that basis. way top Our make progress reducing growth. burn on to that is one, continue that And on the quarterly doing a we're line to by on: driving

And forecast good have that so guidance for think in we have sight that revenue we pretty the to of QX. the I line we and set place

improvement from some but providing not value-added and base. we're just customer there's Continued gross price in to of margin, opportunity only to services our a that also lot mix,

want we our And optimize to then last, OpEx. to continue

we sure aligned our there's on the the the business lines changes so is areas our it was make reduction October, much where closely focused in we business when showing board of best trying we to pretty projects can the seeing so across making up made to structure cost really those that of operating tightened as the that it the right? to around sure revenue in as And expense and most are ROI. progress, weren't some And

to do forward. And so we'll continue ultimately, moving that

improvement continued quarter-by-quarter burn in a on see cash should our we So basis.

James Ricchiuti

those Greg? certain you they made were that in And the reductions focused organization where areas, across

Gregory Kress

They much were across pretty the organization.

delivering at ultimately, functions. lot commercial so I least strong to of didn't strong results results are make expectations functions think our commercial we far And to functions a on impact individual the or X impacted we -- because pipelines. X it meeting with today

so that And we had that of working returning we much most weren't as on resources months over hoped been as for. the say, had XX the maybe support last,

rules. tightening of so lot those up started we And a

Operator

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

Gregory Kress

just joining thank for to I wanted today. everyone us

executing on we in the a focus on see continue of We strategy, and opportunity business. of to front our lot

We to continue go, updates will we joining provide and for but to us as thanks soon. we'll you today, talk

Operator

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

now may You disconnect.

Shapeways (SHPWQ) 14 Nov 232023 Q3 Earnings call transcript