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XONE ExOne

Participants
Monica Gould Investor Relations, Managing Director at The Blueshirt Group
John Hartner Director, Chief Executive Officer
Doug Zemba Chief Financial Officer, Treasurer
Noelle Dilts Stifel
Brian Kinstlinger Alliance Global Partners
Jed Dorsheimer Canaccord Genuity
Sarkis Sherbetchyan B. Riley Securities
Martin Yang Oppenheimer
Call transcript
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Operator

Greetings and welcome to The ExOne Company's fourth quarter and year-end 2020 earnings call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions].

As a reminder, this conference is being recorded. pleasure Company. Monica my for Investor now ExOne The is to Gould, introduce Relations It you. Thank

may You begin.

Monica Gould

year XX, Thank ExOne the full released operator results ended you and for fourth good quarter market yesterday after XXXX morning everyone. XXXX close. December and

not at did of copy Chief on John webcast call investor.exone.com. may With a release, Relations section Hartner, our the are, Officer Zambia, it me Relations Financial from archived receive call Investor press and section Chief of you is you website. will If and ExOne's earnings obtain on This our Doug Executive Investor website the Officer. of today's being be

company, as These discussed in the XX-Q turn include to today's well based contain the I and by factors future such note risks on filed Before are those these or to we discussed risk that of and will is that Any assumptions call result forward-looking undertake and risks in release. on and over as press a to new would today subject to reports Form of as made XX-K this statements uncertainties update obligations statements uncertainties. John, events. information and I discussion the like statements call the are on recent no most forward-looking as as those

would the in the Generally John. I with In non-GAAP the table our addition of and to We release. included that today's like Accounting in Accepted to call to these to measures over understanding press And conform U.S. between GAAP not Principles. enhance reporting, these ExOne are measures reports certain found turn performance. that, do financial measures GAAP believe Reconciliations non-GAAP

John Hartner

in growth by the trend amplify trend declines. reflecting and XXXX for sales am chains. want environment, new welcome XXXX our the contract rose morning $X.X growth well thank as Winning full full in and This million that Good $XX.X year fourth towards as our government government Recurring the the delivered new in area, recovery markets, really a call. $XX.X revenue QX, my towards bigger year, the We driven quarter markets, million a demonstrating team growth the should of metal everyone Americas in our quarter in million in I led was pleased sequentially revenue XX% geographic of I secular region, future. reshoring that is and important Monica. on year-over-year earnings technology a from wins. distributed more our our almost initiatives reflecting XX%, double research a total in because based fourth end This particularly in solid and systems. to recovery. was achievement. reported XX% full fourth all in our tough efforts of in defense those report a strategic our of you performance. XX% Thank and years year, a quarter to of year supply experience to this by industrial win increased manufacturing the of this and digit in in full so to success is year-over-year road increase their while printing downturn revenue strong revenue This is performance ahead. industry a win peers many for year industrial, revenue and for perspective, From

$XX.X nice year-over-year year-end a consumable million, revenue backlog full with the year, achieved of XX% and We X% service For increases a rose representing contracts rates. recurring growth. capture in record

last resulted month, underwritten we $XXX QX, on of million. public further XXXX. expanded proceeds During our million which gross an which offering, liquidity December XX, totaled approximately we nearly in $XX executed And

our enhancing will model, our Also, expanding with including to sheet materials. strategic position highlights performance we our to of enable resiliency global production as will investments, leadership jetting Our model, to our binder the strength our to will prudently invest growth, in our of ability the our such adoption qualifying drive additional geographies our business our the recent in expand across executing Overall, balance cover highly capability Rapidia, expand of which with further conditions. new and materials XXXX strategy on team partnership I and us challenging strengthened differentiated continue phase shortly.

to like some would I recent to highlights. turn Now,

world. is we first the We our successful continue now production in XX printers to the system shipped been metal operation ship XXPro systems And since around this XXXX. in

XXPro, a our process aluminum. to XX broad XX later is by technology has advanced producing that includes multiple that success our across industrial the for Co. two also year. being feature is and patented consistency now deliver is to six driver Motor we in customers, collaboration our metal customer namely market multiple including products than furthered a of we helping revealing sand or the this We That those XXXX units, purchased technology in ACT, now of our alloy production broad offerings. our one customers a that core material long Importantly, material and Such now purchased some important units systems. sites. note Today, portfolio is combined of in of new Ford with ceramic single systems with which to who more these dozen all metal, our and especially production metals. key huge InnoventPro who launch operation engineering leadership comes over compaction advantage, our our our offer have with have of materials high-strength for years It's a active is diversity when modularity and on key

needed repeatable with density parts. diecasted pending thought than making rapid same never other also is much Our printing volumes and automotive parts new the to of that for faster use, method and is parts material the aluminum patent of process together and printing a XD show scaling possible, methods as properties capable

it aluminum solutions, a ExOne like and of opportunity in XD case you fast XD years. and breakthrough strength less all the the shows parts XXXX industry." expensive than unique validates weight share have the the making Also, "a that other work printed printed I volume over and invested of demonstrate big and that the designs technologies. with namely lighter this This our for use for recent to are the parts by some we new calling key importance for with and that this studies in ability market also enabling parts. would is our teams last high win now sintering it Ford is manufacturing published of substantially decentralized localized few durable end automotive

with in contract business. recurring example one revenue from of We recent And a the award develop container. traction Department is of to our shipping XD continue our R&D a factory Defense to printing essentially a grow U.S.

missing be during Many core now as to their cloud reducing increasing Instead, in need parts the that resupply decreasing to and solution enabler are it As localize printing one is enable backup on-site metal to needed. make downtime decentralized of a sustainability looking ability a other parts our of stored supply there. to for significantly manufacturing the and capable ExOne a benefits technology will for reasons self-contained crisis, which quick broken of locally part project, or is project our importance chains unit. or and of Replacement printing, ruggedizing takes decentralize disaster day ceramics are production weeks is the while to frontlines it's parts This printed of digitally topic to inventory more manufacturers. materials localized a XD parts companies compared printing storage. for of and demonstrates enable This the printers, we zones. key which of a will in also XD and technology, needed de-risk in for parts our one

than place in to running steel XX-XPH Innovent+ for to of to end-of-arm shifts. Another payload much of a the automotive and cost out deliver weight up for to and XX% one-fourth to The volume are in attachment develop exactly that parts X.X lighter traditionally extending aluminum. requirements. other manufactured printing, was In XD with our lighter operate. why military industry technology. stainless three laser-based binder recent the success weighting use application This inspection in weight weights than affordable, across robot, this less believers our fiber planes, more applications.. cars, robot application on innovative with can of fast, depicts parts meet was for price life We printing light reduced their parts six carbon varying durable manufacturer a strong, lightweight A up and application, needed that unique in more the high varying to of and reinforced designs of produced tooling using the up pounds This case, example tooling efficient different equipment are we end inspection nonstop jetting objectives. true plastic platform company precision durable robot the this enabling and also found the energy showed challenged pick

containing system groundbreaking HydroFuse, print attention technology The ceramic ExOne's true or a Rapidia's our to technology. expanded an launch an ceramics. and ever powders Metal with with delivers ExOne tomorrow printing today, inventor partnership that a of metal to extrusion-based outside water-based and metal bound new We technology metal to printing experience competing is skip ExOne advanced debinding cycles total exclusive of jetting our of in paste Designlab Metal portfolio Gelbart. systems. office-safe, our three system, product extensive company our take chemical prints This XD XD metal first sintering that deliver Designlab. Dan part or binder technology leverages five that XXXX. bound the final allows the on Moving parts waterbound the printing Rapidia, first and further a entrepreneur often quarter days to two-step thermal marks available serial founded users by market long and Through XD for the parts

note key this strategic to other Some points about partnership.

we affordable advanced the with jet the adds with printer the meets third-party our needs an furnace a the across This to in developing binder metal new that past line, lineup. integration we our binder jet software also printing we that optimized of Also, product can addition and furnace partners. customers sintering gain where our sintering market, customers' expansion In are available our referred between to collaboration traditionally suppliers. and be

metal binder tech Designlab the and market billion to we taking by bound see bound shape, a new according market expected deposition includes grow as is smart ExOne XD consultants. This well space of Metal XXXX, part will to the printing market. metal the as $X over to Next, product position jetting in

forward. expect top fast-growing in to this the moving player We space be

chain the countries while seeing will now has who market. are and for they and are new the ExOne. So will our our of the Asia traditional From addition exploring adopting first technology. announcement the an looking offers are our Designlab our our remain for our never that negatively as operation an binder customers volume very our we served To we capabilities, new standpoint, are on-ramp lower jetting environment Designlab we on reconfigure binder metal shipping be industrial range prototypes focus part And making their a and been Designlab, and ensure Customers our time Customer in to partnership and have of opportunities technology Metal reaction with forward from go-to-solution. volume that leverage the and lower we platforms channel invest Even and success begin and largest in Metal begin been the their to are and Metal and challenging be COVID distribution with business, with XD will on before. expanding supply the partners must must primary line, and ensure they of particularly to continues ExOne high-speed positive in sand interested broader applications. metal we jet product has that, how printers QX. sales and printing impacts we improving and feedback expect we our decisions with have customer working

improvements starting moderate to that see later are year. provide We reduced COVID this should restrictions some operational

in fundamentals and we multiyear our visibility that While remain operational lean We maturation this revenue the we XX% modularity, In amplified in efforts growth term increased that margins years on will of be strong conclusion, is additive long supports traction year-over-year manufacturing. seeing growth backlog will operational encouraging, the increasing products extremely our product and by in that and the and believe the our new ahead of satisfied not strategic our are believe yet we optimistic anticipated to year. scale. global are improvement about and XX% this business the improve

call companies will this and process. role decentralized with and continue With jetting to that bring believe in remain model our to our solutions We and the about technologies will and we advancing the financial will our to that to the that, of other a and now sustainable by transformation traditional to technology printer a market play Doug more partnering by value binder who I customers in details confident critical we and are manufacturing segment continuing provide will the results the over material innovate, machine overall turn who outlook. leader

Doug Zemba

morning John. Thanks Good everyone.

We to the half topline achieved year. of have growth in second are revenue growth pleased in digit XX% of than including XXXX, double more the

to impressive, Our manufacturing execution jetting solutions performance our end fourth given peers million year. execution our to $XX.X COVID-XX considering fourth and million last range quarter as This challenges total XXXX. We million that other is revenue early million our compared the reflects $XX in particularly disruptions the with in quarter of and of February strength John by of the team. the high was of global caused of $XX.X of binder mentioned $XX.X reported which entire additive the and over at our the pre-announced the ended

year full to revenue the from million $XX.X For XXXX, in increased $XX.X XXXX. million XX%

funded global printers. metal was and with total recurring year-over-year revenue year-over-year in growth we year-over-year basis, equipment revenue While future continue research material as of essentially an to our in was revenues grew from well XX% million. consumable opportunities, growth production led XX% as development largely quarter aftermarket quarter revenue our a base contracts, both fourth recurring by The encouraged sale which sequential flat support our the increase sequentially revenue in in and on be and associated to installed $X.X by our and of

put moment, over For example. as million. million printing of of to periods the quarter $X.X it years volatility will fourth sold. Growing comment serving on environment machines pool due fourth past area this to the the mix the CapEx COVID-XX recurring existing to as XD during clear a a quarter which XXXX revenue full-year, rose $XX.X the customer compared X% increase on to I business us two been to in can pressure economic stability XXXX provides has of of focus unit revenue $XX.X declined an which of in the for strategic decision-making, in significant an Despite volume sales, of sales of machines million the in

both shipping including $XX.X be impacted our and addition million full year, in product million sales $XX.X continued international rose and the XXXX. For Revenue machine for travel domestic groups XX% to to to macroeconomic to from in COVID-XX, effects. disruptions of by negative

Now let's move to machine unit sales for the period.

for machines include As components ceramic a print and industrial and XXPro such reminder, M-Flex parts as our direct Innovent, applications and platforms. XX our other metal and

add metal Rapidia industry's Soon announced we InnoventPro February strategic Designlab which recently with printer, XXXPro this partnership via our our group, to the discussed. Metal largest announced our we our XX XD that will John platform, in and

and sand S-Print, Our and S-Max cores indirect our Pro tools machines print as platforms. such and include S-Max molds

average generate value. sales machines indirect footprint our higher systems Our typically and are larger a

Innovent historically have machines direct our lower a leaned system. mentioned, platform have priced is entry-level heavily we metal which As to our

binder units primarily XXXX equipment sector. metal units be ASP automotive where in XXXX average from following XXPro of to in recent of ASP to compared systems to platform has platform, to to three of our as Innovent XX in Sales of in direct market to of units our market negative Sales sales increased QX higher five of units XX fourth our XXPro introduced increased this of QX our in in XX and value XXXPro by was machines. direct of result the in recognized QX the and system trends from in QX XXXX expect the continue only by which machines trend sales metal impacted QX increases our end Those quarter, introduction. indirect boosted technology. decreased XX is XX awareness used, entry-level growing sales XXXX continue platform XXXX systems in introduction into QX this XXXX. a in and machines we the jetting of and We consisted sand XX five markets XXXX lower units However printing for

XX.X%, gross sales operating and was inefficiencies contribution introduction as the market to and as XX on XX.X% to reporting other of environment. of initial including The XXPro following its product due the the in fourth margin compared low we quarter operating system unfavorable decrease warranty For well by are primarily XXXX. margin challenges driven quarter, COVID-XX various experience the

a gross lower primarily For pricing was our the XX by full I of due and of of just warranty sale quarter profit gross fixed offset experience, platform to XXXX margin during year, during the The decrease unfavorable revenue lower products, in third that in to sales including XXXX. compared realized and XXPro the discontinued volume costs. system on overhead XXXX sand XX.X% mentioned, XX.X% of higher partially

COVID-XX, the in mentioned manufacturing As in model inefficiencies costs to we conditions operating brought during certain difficult in which about our resulted uptick John XXXX. battle operating continue our have by an and notable of

scale, reopening our XX% broader profit improvements, high we margin throughout Long we degrees similar We the continued of that global to progress continued demonstrated of in of margin margin history. first of XXXX, half modularity with normalization we profile vaccines of of are on a likely second have of capable contingent continue of confidence we which enhanced international expect consistent levels anticipate at what distribution operational have the and We and a pressure a XXXX. in XXXX, product of level in our and second saw the the generating half to commerce. COVID-XX an term, gross appropriate to periodically half see

reductions employee of effort As and in adequate in I COVID-XX, actions consulting spending, all maintain various and liquidity. response took rate quarter call, including our decreases in we terminations, saving mentioned an furloughs, to conserve cash mix second and to other on pay a cost

for these $X costs total result global we cost travel, XXXX. in as of in the approximately a $X savings realized we million and As other actions quarter such expected, in million reduced fourth as a

the fourth our $X.X X% million. quarter, to For total expenses operating decreased

the XX% $X.X $XX.X of and in development cost the was to due cost and For from year, full spending. and fourth quarter savings primarily to X% million. decreased total development in The Research with other decrease XXXX. fourth COVID-XX $X $XX.X million by our expenses to million the measures expenses machine associated decreased from reductions quarter operating lower million

XX% to expenses XXXX, by research declined For and $X.X million. development

and and in further development administrative consulting Our InnoventPro This printing research commissions where XXXPro and technology, our on million XXXX. Selling, expenses investments the to jetting show, material of the expansion capabilities for XX factors a and offset $X.X including platforms of market expenses, fourth the binder by declined general focused development million continue already and $X.X decrease by higher external expense. of remain we lower the further X% leader. are was travel, driven employee-related to quarter trade from combination including of

year the by For full million. declined XXXX, to SG&A X% $XX

over targeted areas. our to two spending spend. we XXXX, primary in For expect This XXXX XX% OpEx increase approximately by increase our is to XX%

acceleration commercial targeted through customer model. at spending And an material primarily operations managing in second, reach global in applications further research our First, expanding development investment development. our specific in adoption production geographies printing and and principally our development focused on

evidenced and jetting the we set and over interest significant the our near up in plans XXXX and us past for support but rise investments XXXX just prudent not technology, the to year, beyond. believe are Given term awareness binder

are transaction, positioned well capital our make which recent rate in believe XXXX that to on will our these basis. address to we I accelerate investments we growth Given multiyear shortly,

to backlog. our Turning

and the our lease as from firmly reminder, orders contracts operating portion backlog It includes revenue well our our maintenance includes of machine non-cancelable also a received As machine agreements. recurring our customers. committed as

quarter service funded $XX.X million, ended $XX.X and our Additionally, backlog with sand the the at increase and XX% to year. metal including We balance services development. global bureaus for research backlog other of and fourth last quarter a of end includes of contractual orders an the as fourth compared million of

machine units. quarter includes totaling XX backlog representing orders $XX fourth Our million, total

for sets backlog position rate growth of us well XXXX. year-end to revenue up record we XX% pursuit project full XX% year the in Our

as expect lockdown operating particularly Europe challenges, the However, jurisdictions. we Asia-Pacific in persist to continues first a do certain environment relatively in quarter where present conditions and weak

the of sequential Moving proceeds XX, million, cash in to the cash restricted from of customers offerings. the payments. net from inflows balance to of December common based XXXX. net increase million, from at-the-market September sale increased from net items cash widening million on our and of XXXX sheet. $XX.X Cash, $XX.X increase including of to this The for Offsetting XX, of million at $XX.X from in equivalents financing million were operations $XX.X stock outflows the in $X.X by was timing as driven by cash mostly an cash inflows offset period, non-cash activity of due loss,

cash asset $XXX,XXX our quarter are which expected, fourth deployment. capital and operations our on expenditures approximately focused limited strategic As and existing the acquisition for were to

For million. the expenditures year, capital $X.X full were

as approximately with to Looking million $X applications material earlier. ahead, capabilities our certain and activities capital be million expect expanding we investments our development captive expenditures printing $X to mentioned XXXX, at a targeted focus including in I customer on

with offerings the with our proceeds $XX this as XX, at-the-market which total February completion cash we credit the The for during our of common agreement cash $XX.X party completion came there on availability offering, related were by the unrestricted outstanding equivalents end a under to we and cash quarter of agreement end period. Our termination the the stock. strengthened Subsequent X, third equity company common our of of approximately on at credit under from driven increased February no offering discussed revolving resulting million our net fourth quarter. to that revolving of the associated further the of I company's to $XX.X and distribution just an million. the fourth changes Prior facility, of the million to liquidity, sheet the balance follow-on our million of at party to our in end, related borrowings was increase facility $XX quarter stock in includes

in to terminate market COVID-XX. party navigation we our related we caused particularly summary, follow-on pleased with credit in our XXXX, successful offering Following the facility. our financial completion revolving conditions of $XX March our elected on performance uncertain are million In X, of by

exciting things and like on are for strength in we our Looking the the there in going outlook that a lot driving our confidence in the position additive of the business ahead, space the industry. of

to of a as strong to balance in sheet, result coupled we would concludes and While to prepared COVID-XX, take XXXX. remarks for want exist our provides questions. contractual our continue That be with operational now your headwinds accomplish support solid happy our backlog what we

Operator

[Operator Instructions].

Our first question comes from the line of Noelle question. Dilts with Stifel. Please proceed with your

Noelle Dilts

question. Hi a guys. in taking for year Thank solid tough you my on a environment. And congrats

So Rapidia that just could how detail we I for my us five thinking years? was thoughts sort over revenue and should give first the next the bit around question, hoping opportunity the be you little some how Thanks. of a partnership and about ramps more

John Hartner

Sure. Noelle. Thanks

office-safe metal yet Rapidia, We printing, segment, have are interested where a for who but today, production. is in our for new print fantastic provides from process one customers get faster are we not partnership a differentiated really metal on-ramp is into and with segment. exciting This time, ready market competitors a turnaround two-step tomorrow. the bound that It's parts high-volume

we of metal and The there. we market then So a to ramp being expect and that this QX key direct in our good-sized starting we up anticipate part start from shipments a product portfolio. is market it see year,

Noelle Dilts

how for more. that multiyear expansion second, And Could how your you announcements terms speak about thoughts I had a partnerships some influences have and bit you of are around opportunity? think also potential Asia geographic Okay. growth Thanks. to then thinking the about you penetrating in

John Hartner

Sure. Yes.

our will said, do have recently that As starting we the to invest more and continue customer-facing to in resources Doug year XXXX over in and beyond. been last

have past. That's are opened opportunities, placed take in the not And a actually cycle, sales do where have coverage resources our we in starting. new these we So up which time. geographies of lot had just again,

regions. Asia-Pacific more as business all balanced this have well more as to business expect We in across from

on direct as also I indirect line. think direct coverage. globally. better product the something is sand have showing market the line includes metal opportunity metal certainly share as product and it line, very far But geographic a that great in product needs is We the widespread the this

line the to innovative looking they see it, customers think who to world, that been be just and it able localize promote customers global have that new footprint supply chain, we growing, for direct that as So new service designs have to important like before. we our to do to bring product are never able is across those parts the to

really the geographic we So never would we these new that seen different and we the we partners have are excited opportunities about are regions in in how seeing past. have

Noelle Dilts

and some then related break down gross sorts of the of Okay. Thanks. a kind little given just margin maybe some there talks are Is then But Thanks. my launch machines housekeeping break any is of there way that were margins that is more last other in related. bit I of in that way sort question gross of term, more pressures a And is to granularity? parsing there factors? think much our short how just everyone could the out elements the much of about new how it to is one-time the the kind the of that you any impacting COVID-related,

Doug Zemba

Sure. is morning. Good This Doug.

about then second are would the in changes points expect XXPro, bear Again, returns that set near remarks, overall. production on margin looking few versus half on that we we you the continue our term lower returns three probably see related in are the to perspective, other sales. we from prepared at systems So generally what related to the you and the of a make better think and to half should the next for models first going in internally likely dissipate made as that speaking

of would at of margin we that five influence to you what you under about customers normally existing looking On equation points are where supporting quarter the the relative balanced still a warranty in commitments. are likely those side, expect fourth sort

created. relates COVID Obviously, our XXXX. customers expense or been sort necessarily come to machines overhead have you and how getting the warranty a months as and half in second how that that we expenses sort of environment from business that's remainder we lot across difficult with environment. not the that of inefficiencies And the associated and view through last is in time field, toward bit related Now as to the pool that of charges our normalized inefficiencies permeated feature a our exist of logistics nine and that as of through serve for that the manage business. a prepared excess of tilted broader of had experience just would operations other surrounding work A little to manufacturing time managing well sort

Noelle Dilts

I helpful. very That's appreciate you. Thank right. All that.

Operator

you. Thank

Alliance Our with Kinstlinger next question your Global proceed comes Partners. Please from the question. line with of Brian

Brian Kinstlinger

questions. Great. for taking my Thanks so much

In the out announcement, Ford And aluminum and to customers on printing you plan ford print based this then you patent? terms of them? buying printers be sell this for or joint new ExOne and is parts to printers parts both to for printing are new prove sure,

John Hartner

Hi Brian.

yes, it's aluminum into announcement great our entry and So XXXX really parts.

We had has machines. move Ford to our and like adopting Then parts. for into number grow. of years to continue adoption on contracts. technology a shows, have to model, our engineering we and binder business customers jetting And production sell then with R&D been working the model work with work machines just expect selling we we Ford with And our we

with we approach that this and well a continue to as it's approach other So as materials. full material, use

weighting and So opportunities automotive for us, and machines. other light parts many in there opportunities are both in

Brian Kinstlinger

the seeing the this customers? the if process said, announcement too keeping you With it it down. this And inbound on early, going factors take industries? impact take for you Or the time of through And expect before too of industry it's to based is you sales challenges that? early then are mentioned several automotive is calls see of one of us prospective announcement system as the you from that of on

John Hartner

Great question. Yes.

our would to relevant and to I overnight, a of applications light production type six leads, jetting say, seen customers us. up adoption we That So to binder in talking number as boards can have volume does two adopting from But months new be timeframe said, and time. take key you model the years.

for a to over move course of work continue And to so next two intend years. we of applications into XXXX to production number with the them customers the

Brian Kinstlinger

make furnaces to investments the your priorities taken with prioritize versus in you the may terms talked on. sintering? Can capital be increased in machines you then of going versus of are secondary? And you kind just Great. investments new Where or are top about have you

John Hartner

Yes.

started fantastic us in it a binder we materials. can maybe production particularly with new front jetting But think get some Doug will in of I add So have applications, and opportunity I with more.

So we we sure are model. investing adoption that to expand make the can production

So that engineering means people.

number science material new Ph.D.'s hiring. of a have we are We

in our We able initially beyond parts being modularity produce with multiple customers production and to the to deploy with working with and large their post-processing. have investment. the then the product to of Doug across system, and And and to them and takes them work research material then and automation time invest regions take These furnaces within a printer applications as the including scaling materials. and parts industrialization mentioned, announcements

across And all so we are investing the see great in those to future. growth vectors

Brian Kinstlinger

Great. Thanks so much.

Operator

Thank you.

of comes Dorsheimer Our Genuity. with question. Canaccord line with next from Please the question Jed proceed your

Jed Dorsheimer

qualification of the Congratulations, the jump way. into will. I Thanks. like if and Hi. guess you to the XXX, Ford by the I just would

the question, think maybe I dig bit in just so a rephrase deeper. or And previous

are on machine now mentioned they that has aluminum. Ford XXX qualified You and your

you this announcement, would just have? will they didn't it. understand the that, order? better useful. machines it If catch specific So Is help they could I me a with be there that be retrofitting Or

John Hartner

Yes. great mean Thanks Jed. a I breakthrough. it's

our model Just parts and R&D, with Ford in clear, adoption then which be includes to machines. production working we are

We as has And and And sustainability from know, to production standpoint, a is a massive application. other light-weighting. to the a really well companies of grow aluminum across within breakthrough. to automotive printing into being other able specifics that as as individual customers use Ford applications. XD with see value going a on other our you number we are other machines go continuing not customer Ford,

the in major to parts release applications. it mentioned a a range automotive going it's Ford be press that and across we think of major industrial is it breakthrough a for breakthrough

Jed Dorsheimer

definitely Yes. I I is major breakthrough. would agree. mean It a

if at so are linear we far And sort at trying been understand so other timing adoption Moore terms guide, look phases, the qualification about Chasm, period. know, of early we am need. the of would of to guess that that I in better Crossing the I look in the S-curve to largely understand of it's talk that your is, you investors I guess, sort am are what I and guessing we and better I trying Geoffrey

conservative there would Or something that terms that wondering a just is the in here? of of in that's EV else is wouldn't how plays material? that why into logarithmic in guide activity market, So of -- through is if primary prompt I period the being sort the sort qualification seems manufactured the going of buying? it material two-year that relatively just this am terms

John Hartner

adoption programs can specific industry what I talk is, of multiyear automotive Yes. can't about that, are just again but would I the lay usually you two programs. And on to the of say production again, that say up model then take would we years. top what customers,

multiple expect don't would over next a to have to It in years And count years. see I customers the binder ahead. on about talked accelerated continues as said, it I very future. opportunities Again, quarter. of jetting accelerated in growth growth. But XXXX. as be the XXXX, years move I from XXXX, the future has in to have to grow as the So are see bright machines, single those machine where the that will past, you That, rends

Jed Dorsheimer

deceleration of are seeing business the curious thoughts Got is to Or a around am side the the sand there the casting I what the steady the that which of are side? it. additive a then the of just you casting, function for state And is suggest? on would side business? seem direct numbers any

Doug Zemba

Doug. is this Jed, Yes.

towards the a with utilized Brian the certainly product of over sand a a some that that in And lot was a that and activity that is in associated In bit level factor down product reality geared systems we output. markets more same the last the total component being with But intricate drop-off environment percentage rapid being related of provide. much sort environment. current in asking serves state have sand for really was and our side, instances, as prototyping on part to of the but product compete particularly post-COVID and tends is which sand the doesn't we On the of seen a in end products its months, sand XX the materials The product. it different whereas XX the of part, sand able as that fills really has certainly a a pressure of parts put the little product is that metal that to being piece question in to metal larger the smaller serve. to sand applications, the

of the term, are you any at So between two near in seeing, least offerings. really that play level seeing not They spaces. we are competition different the in

Jed Dorsheimer

your a you Got box queue. will military, don't turnkey, it. One last you a The in in call it, application or jump for question but I I of printer Or type be you are it you providing will presentation the -- the providing the you but or deal? and in just turnkey? are you back or of basically container obvious, that you printer providing could other Thanks. services? that be showed the sort providing in know FEMA talk could you about if might if just, Is you are what what

John Hartner

$X.X million, the of Sure. we the In are DoD contract, are project. turnkey, that which the we leader was

unit of other develop opportunity out, press to there And listed from well. you really the but been since has parts customer providing one step. closer this. standpoint of the needs We that have disaster the of say, be the I And as is gone other a productizing interested are us the is supply that seems a a mean that some some there just changing chain, is and releases to first in parts. to as and are this relief really frontlines process the collaborators an not parties other interesting just getting first number there

Jed Dorsheimer

you. Thank

Operator

you. Thank

B. Please Sarkis Securities. Our with Sherbetchyan question next comes your proceed of from Riley question. with the line

Sarkis Sherbetchyan

thanks question for morning taking here. and Good my

John Hartner

Good morning.

Sarkis Sherbetchyan

touch XXXX outlook. sales to on fiscal the want just I

I growth indirect? you a out break think Maybe if XX% have and direct expectations for your you between I to growth then can XX% reiterated XXXX. few And follow-ons.

John Hartner

that a a in So product the and see component some launches recent lot business that that our are in product We XXXX, expect metal we metal quarter. the of some maturity of going larger including to we announced products, of to of make forward. launches the given fourth started going the have certainly the

continue. and don't side lot And that side, public related that but well a break We a to piece certainly relative we leading the to to our really that as sort frequently. we development growth, system area disclosures us expect the as split, specifics is for research of both in on that including have to out funded recurring of the spoken

Sarkis Sherbetchyan

you grow the Or kind what you more pace in revenue with do of regarding have to what a that growth? line similar fiscal XXXX? think saw that Yes. recurring light, in in annual for growth, you that And expect do bucket grows we the to outlined at total

John Hartner

both systems stream a that of have annuity and grow that beyond. the represent, the slower a metal the these printing the groups we represent on little basket It's a of they when services opportunities. have recently, And going say, of representations look on that us break growth printers components sort than The that more that And hereof we bureau of be of of slower components side number XXXX. up versus that's side a and wins in particularly that some lines number and aftermarket we pace and is some commercial where material saw that sort some recognize split. are because XXXX a XX% to research service going in which then have in of area we as revenues an government gains loading highlighted line, part high We and of could emerging some aftermarket big better materials grow the you in let's for the development, see the XXXX offer, we to mostly than in at our and again certainly funded equally would are had comments are that, in different on on alloy the and of of the to the based expect bit installed the materials, the out. global and strong other base single you pretty services model, think signs

Sarkis Sherbetchyan

And to there. color year. of OpEx growth I you business in XX% are to seems That's that mentioned accelerate XX% this that. rate. great like for Thanks you investing growth think Yes. It the

on guess, kind leverage, that operating expect point be to of just would able leverage the generate topline XX% So when given to to business XX% I you to growth?

John Hartner

Yes.

a So couple there. are things role that playing a

us longer position certainly success the of the company's to opportunity how we to off, we sort quarter year, capital First model That the including of make term decisions over with to completed look the operating strategic at here want in as the has offering gives that capital. and last this changed earlier February. dedicate that dramatically some the

putting areas money those call OpEx. the term is more in into we One of highlighted near that

a had reaching some XXXX, those in that making and and time result You those splash are us to see that for of XXXX, really to beyond. bear on fruit basis benefit in But forward is the XXXX at growth necessarily that's going that opportunities see in in going years investments we By that rate a we breakeven here EBITDA you terms today, they to grabbing going anticipate and for the not pull would are start future have an term. near XXXX. difficult what to

sort So of thought process. the that's

with revenues rates are lot money really the lag the little we are to of have operating the the a mid-XXs and we rate when jump it our even forward. pitching, a there or spend on been XX% model. comments attempt to historic consistent growth go investments make to when so go you That think company XXXX to sense on in growth made think we say I out bit that pretty breakeven going is the is and past XX% on EBITDA to and normalized range said, conditions in strategic follow, to we a makes going and of a for based that

Sarkis Sherbetchyan

million that. and And of be so suppose like you CapEx year-over-year. or what guidance. I for would it Thanks seems the if portion right, $X did math towards And did that I perspective, OpEx OpEx increase the sales marketing? give allocated about think R&D, Great. would I for

with increases am nothing CapEx has assuming OpEx the that I to do So one?

John Hartner

Yes.

fall line you going there that are a seeing to we other based some that in decision-making make I into if one, there. of, it a fine and going go to particular a sort think into you I triggered have in invest things really we to enough, a think Number category, some it's work different working development are it see already on bridge are after. or could experience that go it got that's conscious captively that that opportunity when interestingly an that we be or couple we materials, development still research on commercial is is on and customer and by decision are some project between, we

guide clearly they experts SG&A, flip customers certain the really background commercial to of at technical right have term become and really family ultimately is sell, long products or the bring but of we investment, bridging that perspective owners become would and spot can as S resources them On the the relate a relative that of some while other production parts that in-house. through in going land the When adoption also side. whether commercial they system the from be you classify that whether the model expense, are look to traditional what at selling customers we to think the that applications parts I

because the on could way, those is So on the be on quick a total nearest kind to for line money combination either give two it's the to of targeted items. rather us the specific what guidance into. going it opportunity a we a term That's why depending to shift put than of be OpEx give

Sarkis Sherbetchyan

you. Thank for all That's me. Great.

Operator

[Operator Instructions].

question next your Yang Oppenheimer. with of Martin proceed from with the Please comes line question. Our

Martin Yang

my you other sufficiently be have their about move maybe. asked, been are one for as think to if And my maybe of metals? Good your makes talk you than Most the to morning. segments addressing? to question. Can Thanks. sense questions customers current offerings product you not maybe Thank more other could for so taking you that bound address just expanding

John Hartner

Sorry.

little a were there. choppy you Just, bit

other asking are correct metal. that that? outside what Is of was think you bound investments I

Martin Yang

That's right.

John Hartner

Okay.

again have which the to binder complementary the that. to sintering bound do up binder of investments to are jetting. in binder bound business say, metal being we and a would jetting our space relevant the spaces primarily on-ramp we saw complementary for metal of jetting. and I in product absolutely again, with So company, do links It also plenty that but We we

So primary right place are investing that's the now. we

We on are that. to we only good looking are industrial of metal or what are prudently now, and opportunistically outside mute? a complementary look any and But in you have on opportunities. going right Martin, our other you at we questions have invest plate amount we did other have

Martin Yang

Thank question. No. That's my you. only

John Hartner

All right. Thanks Martin.

Operator

the questions are I would back management There over to this to comments. call time. at you. like Thank closing no hand for further any

John Hartner

Take very Well, and this your to ExOne. much care. talking everyone, We to in look you time you interest quarter. morning thank next for forward

Operator

does you. We your today's appreciate participation. Thank conclude This teleconference.

You this may Have time. at a disconnect great lines day. your