Desktop Metal (DM)

Jay Gentzkow VP, IR
Ric Fulop CEO and Co-Founder
James Haley CFO
Greg Palm Craig Hallum
Josh Sullivan The Benchmark Company
Martin Yang Oppenheimer
Troy Jensen Lake Street Capital
Noelle Dilts Stifel
Call transcript
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Greetings and welcome to Desktop Metal’s Fourth Quarter 2021 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Investor President, Vice Gentzkow, Relations. Jay Please go ahead.

Jay Gentzkow

by Desktop And With The me this you. of our for press Metal; CFO The the will for are release It thanks financial that CEO in transcribed fourth to like be call. listeners available letting today’s Desktop subject unaudited replay of Haley, James joining and for our results Desktop and independent Please start today of prior results, of Co-Founder note our completing of XX cannot everyone and Thank Metal. are and are presentation webcast is Fulop, call our XXXX Ric the months available Investor for call our call This for Relations the to following to and announced live a & reproduced at adjustments. today or public Events I’d year webcast process being without preliminary, link with accountants audit call. referred full website. today’s slides slides be Metal. the XXXX, are the and Presentations audit content and accompanying on same website. know is this under consent. section property our the to quarter also of that

file within consolidated XX-day financial time the acquisition. since as expect We XXXX an ExOne first accelerated We the deadline deadlines tighter associate the have SEC the for status, with well statement November for for filed our due a in transition XX-K as to the with of large period. information Form to filing to XX-K extend to audit exclusion filing extension financial XXB-XX XX, our notice recent XXXX our Form our fully

on Safe only results statements. XXXX, you forward-looking X and risks statements based Metal’s Desktop Now, a to today, vary uncertainties. on forward-looking Today’s expectations presentation. reflect March as may Harbor I’d and slide like views These actual call number will of include of X, to disclaimer refer materially, the and of our

results, about November to XX-Q impact Risk risks Company’s assume section information SEC. financial addition Factors XX, please refer that the obligation on business update and the with no the Form to in filings forward-looking statements. XXXX, more may the the to Company the For other the We filed by Desktop Metal’s of

Additionally, performance non-GAAP non-GAAP GAAP. Q&A during gross the including this presentation following but we are session, supplement measures refer and accordance measures in intended These EBITDA, calculated adjusted with substitute may to for and profit. not to EBITDA, measures,

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Ric Fulop

Jay. XXXX to Today, our and financial Good the XXXX. fourth for for morning, plan strategic on and the quarter priorities host you, results everyone. I excited outlook Thank detail call. our QX to year I’m everyone full review XXXX, provide our

X, way effective presentation AM a provide developments, In like key strategic addition, company update a in We call versus detail conventional operating a a additive year, processes. via we evolved on we’d and important this further made we of number and model. highlight of Beginning an production few public Metal manufacturing have slide decisions the mass enable to as as cost have Desktop our last production to started X.X. those

additive share the saw record the at this seek quarter all $XXX-billion-plus best world is XXX%. segment products. Desktop XXX% X, by slide the our is growth to to achieve over supply the double-digit around of of with revenue representing market chain costs production end the the disruptions, businesses Shifting Metal goal achieving growth every Mass broad-based to metal as history. overcome the lens through the this make underpinned year-over-year use across revenue We and new a manufacturing quarter fourth release by decrease of financial quarter Consolidated decision of in fastest production growth results on million, was the decade. long-term Our growing to technology Company’s goal. our and space from all sequential XXXX AM our Metal $XX.X quarterly platforms. in of Desktop the XXXX for We our brands technologies, and concluded breakthrough

expansion. acquisition, sixth of representing slide, the quarter, $XX.X side up consolidated year We margin results XX% contributions was XXXX. the of fourth ExOne million more consecutive Excluding for in on was than quarter expansion XXX million, gross saw sequentially. the non-GAAP $XXX.X This our to revenue yet full quarter XX% gross with was fourth quarter-over-quarter margins gross the right from growth. the quarter Highlighting margin basis points revenue for increasing of another

XXXX. cash additive growing contributions fastest Desktop metal traded million year-over-year. in quarter, organic offerings, cash, Overall over XXX% growth cash in investments. XXXX. meaningful ExOne more including our the performance the ended margins $XXX.X XX%, balance Excluding from the year was year million, manufacturing growth of increase full was by Metal driven $XX.X fourth in XXXX. we a the strong very company And short-term acquisition XXX% over to with than year Non-GAAP in revenue expanded for representing was publicly equivalents a growth revenue and strong

Turning to outlook. our financial

base. see across to expanding and our portfolio customer growth robust We full continue

Metal. We year for be another expect Desktop XXXX record to

we’re revenue a growth As announcing result, approximately XXXX. for $XXX over of This XXXX. XXX% guidance in represents million

order year the XXXX. are expect model. have well We we $XX also million. our to on moment. on be as to commitment in reach manufacturing We do eye market XXXX approximately to breakeven as EBITDA capture goals reaffirming time adjusted negative of investing to now’s in plan therefore revenue a believe basis and profitability, an to reach exceeding our long-term billion We’ll exit our color $X business more on reflects as provide calendar additive these potential long-term prioritize to by adjusted the the share, our EBITDA We market in

share and could of what revolutionary both to Desktop And X, inorganically was TeamDM made Turning I organically be in We prouder Company of towards end to accomplished of has public and a the as a decade. over the first We volume XXXX year slide large double-digit the huge now to Metal. market by applications target have allows our across not which of a requirements. performance positioning platforms, the year number for XX print progress, additive company. achieve

year’s in including just P-XX, expect started understate We a to portfolio, I we refreshed work have the And shipping to product quarters can’t team’s ago. results. a few highly that relentless the past contribute in which Production We product our five nine this System ranging to meaningfully widest the hard the launch XX launches materials array additive weeks materials one times. production of of of oil from systems industries with by gas. for now on electronics, to have consumer number the expanded of dramatically and We’ve portfolios end-use automotive diverse to mass printable a applications for

Early the geared strategy end-use moat. R&D, and larger market We These these a our and drive bolstered articulated purpose, XXX we installed the high-performance all which that’s with of and platforms size portfolio production for share customers the in implants towards us a long-term we in and manufacturing or providing have over were annual XX Desktop $XX times increasing platform, is the patents varied in went additive billion become Health in leadership transactions from we M&A and market. acquisitions on parts when our the both, consumables focus technology a executed upsell diverse mass now Between over strategic on with set spend our of in solutions manufacturing us healthcare is the the new market positioning competitive in public. significant arming with total or will year, but specific, launched and material Company patient offerings. we parts. and the defensible with industry. we This of patents over in for base to that of restorative IP Our for billion pending, systems internal a both robust dental massive across the cross-sell year, additive patient-specific in platform, dental $XX can over revenue through healthcare beginning end-use large and our time

the our for performer printer healthcare of the new designed became thousands established year, labs cemented and supporting an practices, Desktop course revolutionary the dental by specifically series, Einstein of of launch market. Over Health brand, the

that Forust, dollars We exciting and strategy and process sold and for healthcare. reinforces capabilities already out our products. platform a millions to wood produce Desktop in XXXX, parts volume, parts process. a build provides wood because integrated position a our parts path to overall is [ph] as these accelerates margin using also We’ve to very percentage seen in have success a structure, leadership great and pangenic view and printed initiative highly is in to the dental of our that is additive, to of launched also still through vertically waste segments dental production Labs, This services We while in early biofabrication market our an digital apps introduced opportunity and also we parts This small print In today. typically unique this solutions, to new for Forust, profitability. manufacturing phase. platforms existing end-use, accretive parts its traditional printers are killer designed are it with patients only leverages critical

team be adoption healthcare of collectively over customer last focus increases specifically And more to in are $X.X combination and significant dental, among finally, production year of our through we base of horizontal to a grew embracing spent is customer installed products, process industrials, their on including to across chip Our mass machine AM capabilities. in and XXX and members cases high-volume range continues production all trillion exciting others. sustainable to wood beginning a the vertical Customer of and of as as additive a just and that passionately end-use a really enable made additive. automotive, year via blue is a design benefits X,XXX base consumer and aerospace, of [ph] areas, a goal is through journey proportion We more defense our work added. This companies X.X. industries, to sizes parts from TeamDM flip parts more manufacturing many

benefits the and the applications a our set end-to-end moves of diverse last we’ve year of One markets, the of that our is strategic over to of more exposure portfolio industry. reducing platforms one print made any addresses wider

we which power very pricing have concentration, believe with the account provides We little fast-growing robust in better with us market. a business,

laser-focused five great Moving on key but for to are in priorities XXXX, XXXX. made strategic We we X. progress slide also on

of are position industry we at for pace preserving our revenue revenue the growth. maintain to a after organic growth triple-digit momentum, focused our determined that growth And to achieving dedicated Desktop we’re the growth First, last of at year, scale. maintaining organic is top company. Metal

focused our Second, we key growing are verticals. on share across market

all of healthcare. verticals customers been very plan deliver in electronics, and have on sizes, see broad-based automotive, we industry from outsized sizable While in to particular, that more three and opportunities, dental market focus XXXX, encouraged can we adoption consumer to growth

These Third, are maturing expand to go-to-market have mass on this over land not with production & potential names, opportunities hyperscale solutions. opportunities additive applications accounts Fortune our awareness the three hyperscale but companies financially, next intensifying be capabilities moving and attract customers. five strategic with years. with only potential, major the our cultivating XXX to to efforts the needle More have means that we brand specifically, of

achieve basis. and to Our growth top-line XXXX annual fourth calendar These our breakeven reaffirming the operating adjusted strategic goal into expenses profitability our controlled maintain to XXXX margin path on an includes a is demonstrate exit to with from This continuous expansion. growth steps year to for include to combining fund leverage commitment future. this priority to

the our plan consolidating throughout expense reductions operational We and including just initiatives. to efficiencies optimizing a structures, global business, the expense to also portfolio, name few and current facilities rationalizing equipment drive

on managing the we’re our on sheet. balance Finally, focused cash

allocation While investing our we both, see position on only we where and margin operating in expansion. capital outsized cash will strong, opportunities in current disciplined growth be potential focused for our is efforts

our also these key financial we’re We’ll coming inventory and on only success measure five mature, on improvement not synergies. reduction opportunities this strategic for focus increased priorities. results we our we execute based but as targeting how chain also through year, on supply Additionally, on working capital

all Moving competitive world. System in we grew Shop unit parts. metal year, jetting number the in jet was binder in of number year for on XXXX jetting, in the a business. We XXXX, product binder segments available the extending to fastest company our market. production We important In first one slide saw the to print strides industrial our X, platforms. growing strong, full binder demand the across moat was our by in its made metal become one phenomenal diversified share In selling the

We’re the different compatible platforms largest seven portfolio very our materials alloys. that. proud of And industry’s we offer print of portfolio expanded across to metal

way the leader data. the in binder market you any metal jets, We’re absolute share slice

lead we strength a elongation. system materials printer open our outside and and elastomers XK just production the a now with offer a launch, Along As and of our new launched acquisitions metals, high-volume XK, of in performance world ramp additive Xtreme through we’re major the in with to all grade the we to rebranded new and Last to for EnvisionTEC, outperform beyond, And in These aperture DM these, this revolutionary exciting space and host competitors their poised also throughput category entered of DLP position for our we industrial the largest XD we XXXX of applications. manufacturing. best-in-class production. the AdaptiveXD. portfolio conjunction portfolio on extend of introduced P-XX cost now acquisitions metal creates ETEC, that year, photopolymer the

to solutions. we technologies created a our to for already the setting of acquisition We’re strategy, that possible specifically segment. opportunities surface mass of hyper-focused, for landmark James is be few a which production. opportunity in for this platform. been accretion ExOne, by and speak finally, some integration XXXX within market priorities of growth industrial purchase We’ve where significant leadership year in have we’re strategic value to his exciting another long-term, targeting And see the and segment. will we near-term And up value creating we’re in just the scratch area-wide beginning AM executing cementing made our these

First, on solutions. our mass production scaling we’re focused metal

Second, segment maintain of the Shop customer accelerating SME to the we by System. within the want momentum deployment

a opportunity we and leverage market S-Max our segment. Fourth, S-Max to driving underrated in hyperscale in an in cast year, to adoption foothold mass of well-positioned used high is we’re is we in Third, platforms. such castings. additives. print our as developing to digital a solutions market, parts by platforms. industrial our This grow industrial XD In your offer market especially for of There’s where focused share capabilities or high-performance this to this This polymer this our drive powerful opportunities extending our by opportunity components. broader aerospace technology volume strategic we’re plan lot Pro process models on plan to long-term adoption that verticals finally, And strengthen of vehicle growth.

X. slide Turning to

P-XX. thrilled System that shipping we have are started We announce Production to the

has a careful to the Our performance P-XX took year. a the four and initial than products as systems. customer Metal. competitive robust and parts the P-XX a Like The Macintosh characterized is opens the a years exponential yield XXX, are Metal. thousands and laser companies. incremental prints been And efforts batches those powder steadily manufacturing repeatability. efforts. anticipated, and part a or library the largest But landmark low throughput of products of in jetting. metal With a milestone nearly few major XXX by Tesla believe development materials all The quality And players respective while P-XX matter Stanley products in multiyear bit Desktop industry a of where Black of required in we improvements ushered will massive watershed era three IP it, & represents significant development for Decker, in great for leading unparalleled binder a for system a in production sacrificing legacy Desktop of X/XXth this X, such by without as develop platform create every new seconds continuous a Apple American Groundbreaking printing economics one competitive characterized fusion behind million little to enhanced in groundbreaking additive have of portfolio is of speed enables a case, offerings hours. bed This time and to in each the and performance moat this companies of moat. does industries. of improved these fully cost investment system’s hundreds manufacturing. that legacy up these capital of layer it times and This XD IBM world’s little and competitive investment bit offered for Model other roughly is $XXX leapfrogged moment The and will products, as these longer a initially by

we continue We this support our growth in scale to to the see manufacturing ramp offering.

in new Stanley have long-term expect We acquisition, platform favorably this Desktop first healthcare market. clearance bridges, Smile print in Health our powered Black pass position to Flexcera DLP tandem dental to product the design post Health introduced app Desktop providers position smiles Einstein materials. dental leveraging to business. strides that System capabilities Health in partial systems veneers this leading finally, business launch printed Desktop and designed including full offering we’re vertically Ultra+ an printing In and patented our technology, momentum series are Einstein delighted integrates for & dental the extremely Production Labs In to growing launched is [ph] series strong huge has us speed, single expanded jetting a FDA XD exceptional and and platform, Flexcera to the be In heat P-XX already printers, Einstein The build and the little under to dental end-use XD dentures. Desktop we Shifting allowed like several innovative by is with these industry-leading And closed-loop market also of launches the since the customer of continue production platform brings This solutions, particular, printer parts. technology rapidly for and dental under crowns, us launched tremendous including as and killer and Desktop same-day materials parts XD received three Dental Einstein EnvisionTEC’s dental. indications. a specific. and Health landmark these Desktop recently new strategic patient our digital accuracy permanent features to all our When Leveraging of we for year pillars major market. used February, because of emerging services additive healthcare today. parts parts priority. and made one the a And Decker a for printers, Labs its dental production that’s end-use system. around. patented new market our the an

growth our strong, accelerates First, impact. it we material have dental where technology immediately in and competitive

Second, milling or improving profitability our properties Desktop production. to rapidly to profitability. analog by is and efficiency Labs margins Desktop path enhances accelerates relative overall to their digitizing Labs accretive our it

dental to have solutions dental are and we Third, printers Desktop stages unlock Einstein And to has single-visit Desktop a a we in will workflows improve few strategic unique focused dental printing Over advantage and with competitive support platform of research for digital hit intend on in will materials, technology with a for leverage and plan a launch, to outcomes XXXX development. to that chairside an key Desktop Health, also Health. practice with effort option It this finally, bundle Effective as advanced Labs time, for and enhanced chairside the Einstein year seamless patient exciting we running clinicians economics. this biofabrication deliver unique new capabilities to our proprietary we was priorities. treatment digital-first inside provide in currently the ground practice. also create

to of accelerate and the the category-leading dental our through transition capabilities. additive we differentiated material to industry aim First, hardware

Desktop platform on Labs for those just reasons focus to all growing plan we Second, discussed.

hit success position killer turn to Haley, CFO, intend James to and financials. these I’ll beyond. we launch goals Third, and cover And that, our XXXX Executing us space. and to continued in healthcare to now the years it over our Health for Desktop in dental will with products James? at the applications scale

James Haley

Thanks Ric.

and color financial more our to step provide operating I’d back on a and our get I model. outlook, like Before to results little

think path our our revenue slide provide to and business a went result, to sales how And the growth. Our is update where additive revenue from we our XX worthwhile through as first transformation profitability. intend Today, to investor as start to public margin through system. our of long-term evolution as the top-line strategy it I with are on significant financial in today close and targets, more community manufacturing of and on I’ll we our company. a support gap well the is on bulk our generated revenue year

is primary accelerated driving maximize solutions. our adoption technology So, focus our of to our growth

a diversify aggressively will or XD which materials across platforms materials, have our capabilities before distribution to higher sales upselling price an revenue we’re to solutions accelerator photopolymer and our our network customer across We print solutions We across for and positions These be key approach. volumes expanding evaluating resellers we and cross-selling us points, We within versa. already seeing metal augment a systems. examples these customers through internal additional sell of and believe with base, land leading wider early distribution application into force. invested direct vice best of opportunities customers initial printing global hybrid with

XXXX, training enablement, channel higher We broad to engagements, inside on additional easy-to-install as down enhanced sales heavy ASPs as product positioning which crafted for In cycle accommodate sales for partners channel platforms longer including we deeper resources. robust and marketing hybrid emphasis have reseller placing suited portfolio, direct well by more suited activities, ideally and and our growth platforms are to more a selling. strong sales has doubling on this service resellers, our approach

on worldwide in as While world and in time significant channel drive our within new ramping our XX the that takes location. come, to more countries and especially resellers portion is around short effort, years critical we significant of manufacturing a channel sector the to the path of the growth than cover believe products a are scaling

hyperscale is opportunities Pro. accounts in and closely discussed verticals, major in key footprint with customers will sales our S-Max complex yield organizations the will Our major expanding the as Production larger, to of sales and P-XX, direct and such solutions, XX work earlier. System team Ric focus establishing key more complements a ExOne with accounts on Pro cultivate multinational lighthouse that our force to This channel applications

efforts order revenue technology and lever chain concentrated the This minimal growth. view have a in our outsourcing competitive advantage from manufacturing to sales through also delivery. to that We as built-to-forecast model refunds Metal, Desktop accelerate mostly At a parties been our has a third development, for teams, shorter this can our acquired portfolios and for CapEx our believe we network at resulted towards across relevant moment our cycles direct sales We the model, of has capacity cycles the interest, in sales capture deal by force. from that sales budgets and equipment. shifting to the we creates business expand supply of reseller products accelerate

XXXX, outsized we on by are EMEA in infrastructure go-to-market and regions. Finally, focused these our driving expanding growth APAC in in

While generated revenue result of a these anticipate XXXX two of revenue percentage as increase their in contribution regions XX% combined, efforts. in as of roughly overall XXXX, we a our will

maintain to path focus gross our and on profitability. expansion margin Next, critical is long-term to

manufacturing year, the margin of of the out in expansion. scaling our gross through quarters overhead growth costs, consecutive COGS, customer operations included six top-line past support, biggest fixed Over in like has been factor

drives to that into improvements primary continue gross the factors, will margin scales be XXXX. Additional

we larger seasonality consideration. a Now to become that at our is business significant scale, more expect a

we gross continue quarterly to improvement. on While also margins taking to we gross result fluctuations seasonality. of That anticipate realize expect a we proactive steps basis, margin as an annual are improving said, this

have is a rationalization first started. through consolidation. product mix already multiyear and that a The effort we This on focus product is

margin product as the mix, and installed to we of continue customers, grow will our should efforts our we we up margins platforms Related which evaluating to be high and running around generate constantly consumable plan stream concentrate that go-to-market going forward. accretive to mature to And margin as resins they well. higher are evolve binder powder of base offerings. We

to and this on consumable to XXXX, starting basis of While razorblade important already an operating razor, in long-term our our become sales growth in element more absolute meaningful revenue consumables continue system see outpace is we’re model. an strategy our will

or significant multi-sourcing in-house We steps our supply and most product based by either sense optimizing to manufacturing Company individual accelerate our we margins are efforts. for the percentage we margin to of anticipate great portfolio. reallocation opportunity will our makes transition manufacturing time, to design the structure in and for and purchasing, taking consolidation for each third-party overall changes, yield through the the our chain the what reduce and see long-term intend product improve improve footprint product, target manufacturing to XXs. accretion to margin this teams gross We cost path the and Over volume on costs also gross

our structure, costs growth, while to to in expense we controlling to emphasis continue placing on invest prioritize we’re greater a Moving XXXX. on

a reductions anticipate result, meaningfully In As to R&D, a increases cost development spend revenue resources of expect expenses That enhancements growth. drive we for decrease new to critical we additional to year. to while this position believe product term meaningful our longer are continue we to ourselves percentage of said, incremental investments in existing as as and continue we dedicating platforms.

in which as products. our be and time. over expenses critical Our executing sales of XXXX these early total harvest ramping are focused. particular sales operating business both down will a spend investments revenue and in able to to always R&D, glide expect in marketing be of will and R&D But we as launching plans, mature, to increases new we percentage growth

so our in time inflection is here infrastructure. across industries. additive point capture sales go-to-market long-term to invest the we adoption now continue best also invest as believe opportunities that in to positioned to We We we the various hit are of

a XXXX expected scales G&A top existing full line that be limited and with company, nicely our while forward spend infrastructure and acquisition anticipate growth growth. more we to as Finally, expense year activities, will public support going category in this operating our jumped as first in integration

Turning $XX.X million. included appendix. basis. the Consolidated non-GAAP year. fourth GAAP how Starting be Reconciliations pleased with will to Please now a the note team off now to will I very filed results. the to referring several XX. we in financial we’re quarter, quarter financial our discuss metrics slide and was finished XXXX full fourth with year data the revenue on is

was third ExOne million, metal sequentially XX% quarter our offerings all our strong across offerings. the Excluding Revenue revenue in particularly in $XX.X XXXX. up and of was of broad-based strength

increased margin driven scale sixth GAAP revenue our well of consecutive XXX overhead metal’s in costs, gross gross margin highest Company expansion the saw leverage Gross non-GAAP as Non-GAAP to margin the sequentially was platform the continued to strength. over across primarily also as operating for XX% history. as and We quarter from mix basis product points quarter, expansion. favorable by

integration on supply slide fourth in invest in overall in challenges we EBITDA million, Adjusted adjusted acquisitions, fourth gross our from negative negative was quarter acquisitions for XXXX in recent as quarter-to-quarter fluctuations XXXX. the XXXX, fourth the for quarter decline business. but initiatives, opportunity ongoing well Going growth million that direction. I $XX.X trend of previous to of recent we a versus losses The the chain began absorbing expect due result of $XX.X long-term was EBITDA forward, to may margins, in the quarter for positive as detailed initiative the and as

year XXXX, Turning hit earnings of last Consolidated million to our marks revenue core was on guidance $XX.X call. We businesses Metal million. figures revenue including financial full our for $XXX.X year provided all the from EnvisionTEC and our results. we full on Desktop revenue

for December end key will Managing on cash as in view. a growth cash, operating negative and $XX.X fixed margins $XX.X revenue negative we organic spend a our began out XXXX overhead XXXX, program ExOne costs driven to and And we to XX% and for of metal to equivalents jumped as finally, point of the cash to for scale for any XXXX by activities, and the million be on compared Non-GAAP $XXX.X leverage with short-term million adjusted was and including acquisition, XXXX. of capitalized in priority these judicious other return-of-invested EBITDA capital XXX% was being year-over-year revenues Excluding beyond, million. is investments, are and offerings. XX, evaluate XXXX, well year of

Turning to on outlined we this XXXX our outlook slide year, revenue have XX.

total full from we million $XXX EBITDA discussed, of XXXX, and expect of an revenue to growth Ric generate representing As over $XX negative XXX% of approximately XXXX approximately million. year adjusted

growth financial business I’d our gains opportunity a potential as the business of order quarter and rate, to to While reiterate Long-term, does our the time operating believe in share of the is company. expense include market to this fourth now we goals to moderate outlook adjusted long-term accelerate like XXXX, reach our in EBITDA model. the maintain of increases the exiting run investments

year $X committed XXXX. billion revenue the We achieving in are to by

on expect back we I will aspire share breakeven market manufacturing With reach the the of additive Ric. calendar over exit the And adjusted EBITDA by to double-digit turn end decade. We XXXX basis. the to call year that, to an of

Ric Fulop

James. core the you, space throughout capabilities In fourth well summary, dental photopolymer exceptionally to portfolio, year. to in Metal. our performer business performed XXXX our to the our a the in Thank We moved quarter added way. in major entering healthcare end-use swiftly We technologies and and Desktop

fastest jet leadership while undisputed binder We also in the production share to strengthen key adding segments competitive an into business. technical moat, additive. industry-leading to metal our be position, part End-use in growing across consolidated delivering capabilities our market continues the growth

than We’re continue and extremely well overall industry growing share the positioned to our faster take competitors. of

pandemic in led of class, We a XXXX as expect talent. uncertainty. another outstanding growth technical asked the disruption lot world a and of strong year solid position, with and in to teams secular go-to-market financial our XXXX and tailwinds a We

contributions and TeamDM tremendous always, questions. these everyone success. for results. your tremendous Metal you let’s up our Operator? challenges With up Thank hard Desktop to at As work that, and open for stepped it to delivered


Thank Hallum. [Operator question-and-answer be at session. we a Greg from question gentlemen, conducting line time, this comes will Instructions] of Palm with the you. Ladies first Our and Craig

Greg Palm

Yes. Thanks. everyone. morning, good And

math it the majority from And then, relative confirm little of upside to guess, negatively Just starting maybe anything is right, you looks and prior of maybe that? ExOne contribution you non-core from upside with if like was better surprised a Can bit by expectations? or that positively the my driven quarter, revenue. else I

James Haley

thanks questions. the morning. for Good And

clarity, was million $XXX ExOne what million. of out -- $XX guidance just put So to excluding previously we sort for on for

in middle we’re that. of right the So,

ExOne we say on that but very well -- was metal did our definitely offerings. would I So within a previous guidance. our contributor, wasn’t

Greg Palm

Okay. Fair quarter? there one, number confirm, made two, customers were in can you XX%-plus acquisitions were quarter? you And that number if enough. the any the had And any if in

James Haley

I’m basis, full-year terms We that we XX% will. will. first a not have that exceeded on you XX% if question was…? that did sorry, threshold, any in you if of So, the And customers, evaluate

Greg Palm

made the in you If acquisitions any quarter?

James Haley

the of for ExOne also the But, in were quarter. middle we part there acquisition that the did was ExOne last early Dental So, of -- November closed closed two and had year. the we the did Labs in certainly

Greg Palm

I Labs Yes. I was to side. the on -- sorry, clarify, was Dental more thinking

there. Thanks. Okay. leave it I’ll


from the question Benchmark comes Sullivan next Josh Company. of line The with Our

Josh Sullivan

On you into the then, drivers assumption? going by synergies, that that there looking us, breakeven, in many have some P-XX for major how for maybe can the just around metrics XXXX expectation the to expect exit bucket just investments, growth, systems wild you to

James Haley

really does as in us unit would on So, of few year. have It’s quarter expect to from new margins. products the And launched, volumes. key don’t our I we and OpEx majority and drivers a side, we’re now expansion. expect traditionally, remarks, we really provide the to into we on over prepared on -- fourth years margin a of But, spending. ‘XX in really say, products continued focused both the driving revenue of lot be lots our highlighted the next of introducing forecast come the market. that -- are I, And We don’t for the the vast see growth certainly similarly Ric additional more ‘XX. don’t

to the think portfolio we’re I a going certainly, are you’re to but as company, using for in where we hold as here invest QX firm well. try R&D want really rates

start revenue based will, to So that really, you we’re higher just going leverage, much a get on to if number.

Josh Sullivan

-- you in your type industry, the trying in in do related see And sales you approach the dental versus do early product stages? see Desktop you of overall industry non-additive integration, need infrastructure Health direct far how then strategy? just to build grow the as infrastructure within Just out understand, additive that, as kind what’s vertical to as for the to the what

Ric Fulop

billion market, a ceramics and be the transition that them components, of From and will printed that restorative of patient-specific of can it. all of components most in to polymer $XX I decade, type think parts that used of this additive the in a parts, environment. are dental worth majority metal all dentures almost restorative process parts, to type in an more efficiently

period property, had, cetera. eliminate say, to see points plus we ability and et something EBITDA the the take have synergy. double to transformation ability that’s it huge marginalization, double full XX let’s So, to or that And would

accretive them are So, highly accretive -- play. all of


Our Oppenheimer. from next Martin of Yang from question comes the line

Martin Yang

whole First was did year, question, it EnvisionTEC year ExOne’s year-over-year grow XXXX? for in XQ EnvisionTEC bigger for the -- And in than contribution the and for quarter? the

Ric Fulop

COVID definitely of in grew. It happen in sales some didn’t that had related EnvisionTEC ‘XX. items XXXX

So, business dramatic like over for And business. product investing really portfolio was -- high-performance more positioning on it resins, the systems the the in through and fantastic particularly but our next the a larger the core by that. not Ultra productive Overall, Smile on shifting it’s a years definitely ExOne growth two cleared to we you it FDA growing space. photopolymer we of material than business printers set resins, products are it and and are Flexcera enable that actual the and systems, was like building that in QX, permanent can

James Haley

truly the mean, worth are think we so forth. I about it’s board. integrating teams stop I need things metal thinking to truly and think as go repeating we again polymer I too, forward, we company-by-company, across the

around people, go-to-market, So, that the everything. we shuffled have engineering resources are sales

going to been. think, it’s less enter I especially than ever XXXX, meaningful be So it’s as we

Martin Yang

any the in is XXXX Got it. assumption? guidance. growth there And Is so, much? next embedded My on your question how inorganic if

Ric Fulop

we’re is giving now, as now. guidance we would guidance. is. for the is business upgrading change the in the for But, constituted guidance right as right the we If required business the Now, XXXX,


with next Please Capital. the [Operator Instructions] of Street from comes Jensen proceed question. with line Lake question Troy your Our

Troy Jensen

results gentlemen. shipping the great Congrats on P-XX. Hey and

Ric Fulop

Thank Troy. you,

Troy Jensen

Hey Ric.

correct, how kind half you focus number memory If is about perhaps many you some update visibility this talked the ship So, a where with first more reservations certainly came an just out, when and or you us on year? give you you on year XX machine about backlog could ago, on P-XX and P-XX? guys are a are curious, going how about of on like to that. the machines just and I’m

Ric Fulop


So, I think is that number in correct range. your

break our is list. humming and P-XX We machines and to long-term investment very and to part. We conversions but year. making in and We very that interest get our are on progress in and be we a products going make we triple continue up this a ability a from nicely. And facility success that to important a there. a big, hope scaling don’t growth, we’re definitely high actually of customer pillar going made out progress have to our we to facility production individual is continue long to SKU down scale huge basis, our

year and Decker. the You’ll Stanley be progresses corporations, Black hearing example with major more as the about it like &


Please which of proceed question. line Our Martin the with Oppenheimer, next from follow-up. a your question Yang from is

Martin Yang

you. Thank Hi.

using maybe how Decker, can being know you P-XX? you high So, talk Black they & are if, tool about for the implemented volume Stanley is production? Do

Ric Fulop

ships end-use world. Yes. allow the It your is and production at the make you exist going for of it does production with actual technology motor to is factory analog cost to And high volume having something you And switch then of can this that than today. one instead lower to a parts. parts much this of components processes other

to get approach eventually local able markets. to more customer to one at and inventory closer match localized have a more cost-effective ability with the production, be will You the of for

of did is couple it we fantastic a And case just weeks this ago. So, study.

more do press in these production expecting get I’m future exciting the as some to them they and in So, volume running. up with things

Martin Yang

Thank you, Ric.

Another follow-up if I may.

your maybe embedded you improvement, for supply XXXX is the or provide overview guidance? any Is can or So, chain not challenges? of the there whether improvement

Ric Fulop


products, all I level did am of before what ceramics, a QX, or positioned supply mass few environment, make in. this a coincidence drives to that we people And I challenges. you modernize they is cost and time, that some Despite of make P-XX current part some systems able inorganically we’re technology products to product is our affect were calls not parts thing But, an we’re of portfolio to you QX. is in production, we ability they big a They your We’ll one ours at had on than were continue that silver per additives, winning part the and allows We to growing in volume get of -- this out. team to demand. part ship way end-use make in that say cetera. I growing QX. over a whole challenging whole a processes of of that progress able but polymers, And effort I And that in think growth. of in our make focused with proud and of fastest weeks that ship sorry, around same we’re year. major that very isn’t proud supply is QX, past better the today But, lining you that a the way insignificant It’s in end can’t world I’m the I a middle variety the company really would et We we’re task get lowest have the can’t chain things organically and this their has they the the it designing some the of done. would we think hasn’t think a to going our there I they and did QX. were metals, that not corporations has are portfolio, is production work and landscape CEOs company it’s say for simplify It’s which because year. that guidance through. at get the additive that flexible SMEs, professional U.S. And And our your is in tariffs. solution. built get senior later, a had need. supply our chain. QX from get in

decade. So, that for we’re positioning this for -- Company the

I driven disruption. chain broad-based being supply think it’s exciting see by to demand


Craig a is follow-up line question the next of Hallum. Palm from Greg from Our question

Greg Palm

little the and I’m if guidance ExOne, bit contribution the can from give a a from I if give but the non-core, apologies. contribution more essentially right revenue? that’s from core And can underlying way on fiscal you color? contribution us bit sure to about is think ‘XX it looking But, us within If for, Thanks. little assumptions for commentary, not of you Yes. the missed I’m the what

Ric Fulop


I like me now which taken gain makes our that software are into think which the DM James. sold fully and it We’ve making of metal products the through developed and and is mean, that make functionality off original part hand the some I we was first now, guidance products fully turnkey operations one been our that’s the customer support at sensor we more one team, have the the on across And we see technology. and light strong team to one new taking very same cross-sell opportunity huge in team of have this portfolio question, I’ll upsell They the Let products. that driver jetting There’s have in were products time, engineering We to integrated. DM by alloy and and current the got binder demand integrated we’ve moves. metal portfolio both of this component. customers. we

and in We we key starting full funnel. guidance products. And forecasting are acquire have did the to that providing. good very fruit. feel year, of we’re assets of We bear are part some that our family about X,XXX last this customers We they’re

Einstein, after, this it’s demand continue on to portfolio and production dental the that. with price highest a with going we we’re which parts And strong best also market like applications portfolio of And that same possible of completely level side digital dental refreshed the also growth. has see castings, think for is I products. best-in-class, performance, the in just products materials very the for end-use

that seen is And also part demand. so, great

what we’re the full is planning picture year. to this all do this So, view of

growing Midwest. business That side dental it. was, what would we parts started initially is added of to one I addition initial on organically in the Our region say, in to the

our think with it. we’re is highly a that that play. are And proving accretive results assumptions the happy right of really I

has So James and thoughts. maybe that additional --

James Haley


So, will. on the companies, we’re texture not sort of if you giving any additional

earlier, more. at As I integrating looking mentioned more we’re really and

rationalization for and initiatives I on, as of the one product touched key Ric As both ‘XX is well.

driver for I think, a in that. position revenues, is sort say is we the it going to for beyond additional give more of you XXXX our not will on key be any and pillar, but if biggest be texture we’re can us to what will comfortably a


question with Stifel. Noelle next Our comes from the Dilts of line

Noelle Dilts

the hoping on to could about thinking trends look you you’re as said weren’t how direct indirect generally that was to color going you the speak printers too businesses. then XXXX. demand additional know, I you for much I at add and ExOne So, you But and for

goals side the on Specifically, that of if well? Thanks. indirect any as sort programs you’re undertaking there’s or

Ric Fulop

indirect interesting the Noelle, of a is Look, our business. really Absolutely. part side

We’re of the is over will very out there’s for feel come we’re now able part fruition. business that the fantastic number leader be of synergies are do the side in components good taking a wood have where that side about introduced of and the good to of has to be really the the It you’ll that have developing of business, prototype indirect upcoming been year. many We that programs giant large And years have business. with to throughout products capabilities us, a parts business. developing. and we That because other and now starting

actually we for for we First but what a -- well, quarter the that more than -- did company. related year we whole several pay in revenue dollars lot million the Forust equipment

for the that be very into part direct terms products are many, parts. applications a than we used of can horizontal the many the in parts many, we’ve more being for got that more business. side, of there wood happy applications on because the the are utilization than So, broader And

we And now and shop quite the got products integrated like our So, our portfolio. have then we we SME then products, on have got have P-XX. pool that’s strong, ExOne with

to get much has best-in-class time been market. out. product units start the And in making. It’s We are anybody higher excited than really the what to capabilities in else with long it’s in a

that the think I’m we this really very in get about year hands excited all I’m to for is together. excited ‘XX putting a be I of what business. fantastic work. And So, this are customers to after going

Noelle Dilts

comment the Thanks. and that sometimes enhance of you margins. that on would to I further? If does like that are you great. of demand -- about something, then, mentioned could it things the happening? that slow that you. first seasonality some transaction, you James, be Okay. sort this, Thank given also, go sort talking that can quarter, And then start when know of you Does ExOne But kind through And when in transaction that seasonality second, in the and short-term, the accelerate. major is

James Haley


I to it be look the revenues, for of think clear QX, those as year traditionally terms think are revenues tends points very for the the mean, I in and of well. we at XX% as total, I straight in total that in year.

I would was the strong. pipeline of built around, we to that on with looking second think to integration the likely somewhere in of will. I really in you think And is -- in we focused That trying efforts is XX% ExOne’s be, half the you it where these XX% see timeline, incredibly mind what that do that promising certainly neighborhood. And if that’s year. said, upside built-to-order, of are business will. if we shorten sort too lots Keep

expecting potential are in So, we lots second half. of the


a Our your question. Capital. the Lake follow-up with next question from with question Troy proceed is Street of line Please Jensen

Troy Jensen

does guys before P-XX. have of it as know it’s I of you broader -- the question is that very and first make for Hey, to adoption half, think machines capacity Ric, this make But lot guys. have James. -- on here I a the want I or sense? guess, machines kind of few a rollout upfront do I for back, follow just controlled and a one And get up a reservations. we lot of a can to

Ric Fulop

built very Look, additive custom a ever the it’s make ancillary a equipment it’s sizeable lots than bigger a I Absolutely. lot fastest complex with bunch system parts. point. mean, and It’s good I system, mean, it’s of a it’s components, of to -- production parts.

have So we up a wipeout. you scale -- and scale cadence like not them manufacturing, all yes, going are at particular a

this product the whether manner. scale, at And was a less the the just of on it iPhones products or did on than X to Our goal like is year first introduction. sold any the year fifth thoughtful other do model in you you

we So, I’m product. happy customers but side. the get we judicious a so to internal do happy other it plans, going happy for with with very the way in on that are very I’m demand the the

product our Now, that’s our this It approach. through is than sold channel based sold differently a production team. is

a team. team are at go-to-market now of XX XX in that people And end, now which we’ve We is the have integrated people leadership the team, of our go-to-market fantastic.

excited I’m about that’s right expertise on production. folks that the we’re we between have by across or the And complete the seeing really So, the making progress the that choices board. there

past XX at from well which the that They’re strategic looks about building for very that team We over applications the we’ve excited you have They’re to we’ve sales got driven. leadership of We partners like we’re large great year application we’re And a very team that’s young multi-year. the channel or basically And And year. sales like not and a went and a quarterly across we’ve we driven. over a hyperscale beginning very board year. where P-XX then production accounts expanded refreshed got applications, in it’s this groups the production channel, these at XXX. have multiyear, about hungry.

Troy Jensen

be And fully press that if number? your XXX share number kind to million James, I guess, just is I in It would James all trying release. I I’m saw follow-up diluted could count get here. figure, of profitable, in helpful. GAAP count a share for

James Haley

any count, in share the so numbers. so XXst. expect Troy, changes it all-in investing much December except option wouldn’t We the as is forth, numbers, that sort those of from of and So, way exercises, the


for to further questions remarks. no closing I’d queue. management like are in back There to the call

Ric Fulop

in next well mission we vision with all our really for Thank again the production. to And and dedication, want forward of to AM you it’s look mass call. joining for I at as honor passion work of very the that everybody together you. you. and continued advancing speaking for Thank DM an their This is thank as everybody works a X.X great much. to call,


you participation. for your today’s gentlemen, this Thank and does Ladies conclude teleconference.

this may a disconnect at lines time, You day. have wonderful your and