Desktop Metal Inc (DM) 2023 Q3 法說會逐字稿

Greetings and welcome to Desktop Metal's third-quarter 2023 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.

歡迎參加 Desktop Metal 2023 年第三季財報電話會議。 （操作員指示）謹此提醒，本次會議正在錄製中。

I would now like to turn the conference over to your host, Mr. Michael Jordan, Vice President, Finance and Treasury. Please go ahead.

現在我想將會議交給東道主、財務和財政部副總裁邁克爾·喬丹先生。請繼續。

Good afternoon and thank you for joining today's call. With me today are Ric Fulop, Founder and CEO, Desktop Metal; and Jason Cole, CFO, Desktop Metal. Please note our financial results press release and presentation slides referred to on this call are available under the Events & Presentations section of our Investor Relations website. This call is also being webcast live with the link at the same site. The webcast and accompanying slides will be available for replay for 12 months following this call. The content of today's call is the property of Desktop Metal and cannot be reproduced or transcribed without prior consent.

下午好，感謝您參加今天的電話會議。今天與我在一起的有 Desktop Metal 創辦人兼執行長 Ric Fulop； Jason Cole，Desktop Metal 財務長。請注意，本次電話會議中提到的財務業績新聞稿和簡報投影片可在我們投資者關係網站的活動和簡報部分找到。該電話會議也透過同一網站上的連結進行網路直播。網路廣播和隨附的幻燈片將在本次電話會議後 12 個月內重播。今天通話的內容屬於 Desktop Metal 的財產，未經事先同意不得複製或轉錄。

Before we begin, I'll refer you to our safe harbor disclaimer on slide 3 of the presentation. As a reminder, today's call will include forward-looking statements. These forward-looking statements reflect Desktop Metal's views and expectations only as of today, November 9, 2023, and actual results may vary materially based on a number of risks and uncertainties. For more information about the risks that may impact us our metals business and financial results, please refer to the Risk Factors sections on Form 10-Q in addition to the company's other filings with the SEC. We assume no obligation to update or revise the forward-looking statements.

在開始之前，我將向您介紹簡報投影片 3 上的安全港免責聲明。提醒一下，今天的電話會議將包含前瞻性陳述。這些前瞻性陳述僅反映 Desktop Metal 截至今天（2023 年 11 月 9 日）的觀點和預期，實際結果可能會因許多風險和不確定因素而產生重大差異。有關可能影響我們的金屬業務和財務業績的風險的更多信息，請參閱表格 10-Q 上的風險因素部分以及公司向 SEC 提交的其他文件。我們不承擔更新或修改前瞻性陳述的義務。

Additionally, during the presentation and following Q&A session, you may refer to our results on a non-GAAP basis. Non-GAAP measures are intended to supplement, but not substitute for performance measures calculated in accordance with GAAP. Our financial results release contains the financial and other quantitative information to be discussed today as well as a reconciliation of the GAAP to non-GAAP measures.

此外，在演示和隨後的問答環節中，您可以參考我們基於非公認會計原則的結果。非 GAAP 衡量標準旨在補充而非取代根據 GAAP 計算的績效衡量標準。我們的財務業績發布包含今天要討論的財務和其他定量信息，以及 GAAP 與非 GAAP 指標的調節表。

And I'll now turn the call over to Ric.

我現在將把電話轉給里克。

Thank you, Michael. Welcome to our third-quarter 2023 financial results call. I'd like to start my remarks today by acknowledging that this was a disappointing quarter for Desktop Metal and also for the entire additive manufacturing industry. While we were dissatisfied with our top-line revenue performance in the midst of this challenging period, I'm incredibly proud of the progress that team DM has made in executing our $100 million of annualized cost reductions announced in June of 2022. We're actually ahead of plan with that effort, and I hope you will take note of the meaningful EBITDA progress that we've delivered as we work to ensure a strong foundation for the future.

謝謝你，麥可。歡迎參加我們的 2023 年第三季財務業績電話會議。我想在今天的演講開始時承認，對於 Desktop Metal 以及整個增材製造業來說，這是一個令人失望的季度。雖然我們對這段充滿挑戰的時期的營收表現並不滿意，但我對 DM 團隊在執行 2022 年 6 月宣布的 1 億美元年度成本削減方面取得的進展感到無比自豪。透過這項努力，我們實際上提前了計劃，我希望您能注意到我們在努力確保為未來奠定堅實基礎的過程中所取得的有意義的EBITDA 進展。

I want to be clear today. Desktop Metal continues to take aggressive steps to ensure we have sufficient capital to navigate this challenging period. And there are strong, positive currents running through our results today. As you know, our quarter was overshadowed to some extent by our pending merger with Stratasys, which was terminated in late September. Unfortunately, the timing of the announcement around the Stratasys vote created delays in closing several large deals with major customers. Most of these deals are now closed and will be part of Q4, which we expect to be a very strong quarter. But we believe in the merits of that specific combination, we remain highly confident in our position as a stand-alone business and the strong foundation we're building as we strategically cut costs and continue to intensify our focus on operational excellence.

我今天想澄清一下。 Desktop Metal 繼續採取積極措施，確保我們有足夠的資金來度過這段充滿挑戰的時期。我們今天的業績充滿了強勁、積極的潮流。如您所知，我們的季度在一定程度上因與 Stratasys 的合併而蒙上陰影，該合併已於 9 月底終止。不幸的是，Stratasys 投票的公告時機導致了與主要客戶完成幾筆大型交易的延遲。大多數交易現已完成，並將成為第四季度的一部分，我們預計第四季度將是一個非常強勁的季度。但我們相信這種特定組合的優點，我們對我們作為獨立企業的地位以及我們在戰略性削減成本並繼續加強對卓越運營的關注時所建立的堅實基礎仍然充滿信心。

For Q3 2023, we reported total revenue of $42.8 million, which compares to $47.1 million in the prior-year period. Softer revenue stems from a deemphasis of certain less profitable non-core business lines and lower than expected system sales as higher interest rates and tighter capital environment delays some customer purchases of equipment combined with several deals coming out of the third quarter and moving into the fourth quarter of the year.

2023 年第三季度，我們報告的總收入為 4,280 萬美元，而去年同期為 4,710 萬美元。收入疲軟源於對某些利潤較低的非核心業務線的不再重視，以及由於利率上升和資本環境收緊推遲了一些客戶購買設備的時間，以及從第三季度進入第四季度的幾筆交易，系統銷售額低於預期一年中的一個季度。

Our adjusted EBITDA was a loss of $20.5 million, an improvement of 27% year over year compared to a loss of $28.2 million in the third quarter of 2022, demonstrating the benefits of our strategic efforts despite a tighter demand environment for system sales. This outcome was a direct result of several factors, including production site consolidations, improved gross margins as a result of favorable mix of services and consumables during the period, along with a reduction in operating expenses year over year. While the cuts we've made have been dramatic, we've also done our best to strategically balance them to protect innovation and growth and effort that requires constant vigilance.

我們的調整後EBITDA 為虧損2,050 萬美元，與2022 年第三季的虧損2,820 萬美元相比，年增27%，這證明了儘管系統銷售需求環境趨緊，但我們的策略努力所帶來的好處。這一結果是多種因素的直接結果，包括生產基地整合、期內服務和消耗品的有利組合帶來的毛利率提高以及營運費用逐年減少。雖然我們所做的削減是巨大的，但我們也盡了最大努力在戰略上平衡它們，以保護需要時刻保持警惕的創新、成長和努力。

Since we became public, we've greatly expanded our portfolio and diversification. We've subsequently work to integrate our business units, enhance efficiency, and remove cost across the company. Our path forward is clear: to focus on high-growth product categories in our portfolio, to drive incremental top line while continuing to pursue efficiency and profitability.

自從我們上市以來，我們大大擴大了我們的投資組合和多元化。隨後，我們致力於整合我們的業務部門，提高效率，並降低整個公司的成本。我們的前進道路很明確：專注於我們產品組合中的高成長產品類別，推動營收增量，同時繼續追求效率和獲利能力。

To that end, there are several aspects of our business that will enable success on these major important strategic objectives, including: first, as additive manufacturing continues to transition from prototyping to mass production applications is projected to grow to $100 billion industry by the end of the decade.

為此，我們業務的幾個方面將有助於成功實現這些重大戰略目標，包括：首先，隨著增材製造繼續從原型製造向大規模生產應用過渡，預計到2020 年底，該行業將增長到1000 億美元的規模。十年。

Second, Desktop Metal is uniquely positioned to benefit from this expanding market as it holds a leading proprietary technology focused on mass production solutions. We hold the leading market share position in binder jetting, which customers like BMW are using for mass production of critical components and a leading position in healthcare applications with our DLP technology across a wide range of materials and end users. Broadly speaking, our expansive and growing library of materials across the categories of metals, polymer, ceramics, and biocompatible materials are enabling Desktop Metal customers to create value through solutions, which address our highest opportunity challenges, and we'll walk through some of those examples today.

其次，Desktop Metal 擁有獨特的優勢，可以從這個不斷擴大的市場中受益，因為它擁有專注於大規模生產解決方案的領先專有技術。我們在黏合劑噴射領域佔據領先的市場份額，BMW等客戶正在使用黏合劑噴射來大規模生產關鍵零件，並且憑藉我們的DLP 技術在各種材料和最終用戶的醫療保健應用中佔據領先地位。從廣義上講，我們涵蓋金屬、聚合物、陶瓷和生物相容性材料類別的廣泛且不斷增長的材料庫使桌面金屬客戶能夠透過解決方案創造價值，從而解決我們面臨的最高機會挑戰，我們將介紹其中的一些今天的例子。

Third, we're poised to benefit and are already beginning to see the results of an expanded global installed base that is using additive manufacturing equipment for real production. Utilization of our products at our customers is increasing, as evidenced by the growth of recurring revenue streams despite a challenging market. Our recurring revenue has grown by 34% from $37 million in the first three quarters of 2022 to $49 million (sic - please see press release, "$49.2 million") in the first three quarters of 2023.

第三，我們已經做好了受益的準備，並且已經開始看到使用積層製造設備進行實際生產的全球安裝基礎擴大的結果。儘管市場充滿挑戰，但經常性收入流的成長證明了我們的客戶對我們產品的利用率不斷增加。我們的經常性收入從 2022 年前三個季度的 3700 萬美元增長到 2023 年前三個季度的 4900 萬美元（原文如此，請參閱新聞稿“4920 萬美元”），增長了 34%。

And lastly, we're well underway to rightsizing our cost structure and improving our operational efficiency. We're ahead of plan on executing this $100 million annualized cost reductions announced in 2022. And we'll continue to identify additional opportunities to refine our portfolio and operations to further enhance our operating leverage driving towards profitability on an adjusted EBITDA basis in fourth quarter of 2023.

最後，我們正在順利調整成本結構並提高營運效率。我們提前執行了 2022 年宣布的 1 億美元年度成本削減計劃。我們將繼續尋找其他機會來完善我們的投資組合和運營，以進一步增強我們的營運槓桿，推動第四季度調整後 EBITDA 實現盈利。2023年。

Our goal is to be cash flow positive in 2024 on the cash that we have. We have lowered our operating expenses for six consecutive quarters, a key driver on our path to adjusted EBITDA profitability. Taken together in the short term, we're laser focused on driving good profitability on the cash that we have, which will place Desktop Metal on a strong footing to capitalize in this secular opportunity as the market returns to grow.

我們的目標是在 2024 年利用我們擁有的現金實現正現金流。我們連續六個季度降低了營運費用，這是我們實現調整後 EBITDA 獲利能力的關鍵驅動力。總的來說，我們的短期目標是利用我們擁有的現金來實現良好的獲利能力，這將為 Desktop Metal 奠定堅實的基礎，以便隨著市場恢復成長，抓住這一長期機會。

Starting now to our recent business highlights. The third quarter saw continued expansion of major super fleet customers, including Honeywell and Baker Hughes in major companies like Northrop that have now grown into the global leaders in 3D-printed optical components using our machines. Companies at [camp town] now operate one of the largest super fleets of binder jet systems for printed castings in North America as well as powder metallurgy, super fleet customers like DSB and FreeFORM in major automotive customers like BMW, which are now the largest super fleet operator of Exerial systems. By the end of the year, they'll have six operational Exerial binder jet systems that can continuously print 12 build boxes with a size of 2.2 meters each to mass produce parts for their six-cylinder engines. We have some great videos from DSB and BMW that highlight this growing deployments, and I encourage you to watch them.

現在開始我們最近的業務亮點。第三季度，主要超級車隊客戶持續擴張，其中包括諾斯羅普等大公司的霍尼韋爾和貝克休斯，這些公司現已成長為使用我們的機器進行 3D 列印光學元件的全球領導者。 [camp Town] 的公司現在經營著北美最大的印刷鑄件黏合劑噴射系統超級車隊之一以及粉末冶金、寶馬等主要汽車客戶中的 DSB 和 FreeFORM 等超級車隊客戶，寶馬現在是最大的超級車隊Exerial系統的車隊營運商。到今年年底，他們將擁有六套可運行的 Exerial 黏合劑噴射系統，可以連續列印 12 個尺寸為 2.2 公尺的成型箱，以批量生產其六缸引擎的零件。我們有一些來自 DSB 和 BMW 的精彩視頻，重點介紹了這種不斷增長的部署，我鼓勵您觀看這些視頻。

Our sales pipeline in binder jet continues to grow with a strong pace, which gives us confidence in our growth opportunity over the next year.

我們的黏合劑噴射銷售管道持續強勁成長，這讓我們對明年的成長機會充滿信心。

On the healthcare front, we received European clearance for the market-leading Flexcera Smile Ultra+ materials, which greatly expand our market opportunity for this product line. And we've had a successful launch of our new 3D-Bioplotter print technology or bio fabrication of brass in our medical device.

在醫療保健方面，我們獲得了市場領先的 Flexcera Smile Ultra+ 材料的歐洲許可，這大大擴展了我們該產品線的市場機會。我們已經成功推出了新的 3D-Bioplotter 列印技術或醫療設備中的黃銅生物製造技術。

For now the 3D printing industry isn't doing one of the toughest periods I've seen, but I'm confident we'll see a return to growth because our sales funnel continues to build. So this lengthening of the cycle should have a countercyclical effect as customers plan for Q4 and the rest of the upcoming year. I believe Desktop Metal stands out in a positive way from some of our peers during this uncertain time.

目前，3D 列印產業並沒有經歷我所見過的最艱難的時期之一，但我相信我們會看到成長的回歸，因為我們的銷售漏斗不斷建立。因此，隨著客戶規劃第四季和來年剩餘時間，這種週期的延長應該會產生反週期效應。我相信，在這個不確定的時期，Desktop Metal 從我們的一些同行中脫穎而出。

For starters, we were extremely proactive in cutting costs when we saw challenges on the horizon. We're also led by a team of seasoned 3D printing leaders brought together from several acquired companies that bring stability and experience to our leadership team. Finally, we're a team of true additive manufacturing believers, and we have dedication in driving this industry forward.

首先，當我們看到即將出現的挑戰時，我們非常積極主動地削減成本。我們還由經驗豐富的 3D 列印領導團隊領導，他們來自多家被收購的公司，這為我們的領導團隊帶來了穩定性和經驗。最後，我們是一支由真正的積層製造信徒組成的團隊，我們致力於推動這個產業的發展。

In conclusion, we finally have clear line of sight to profitability, and Desktop Metal is confident in a promising future with clear focus on high-growth product categories and operational efficiencies. We're well prepared to benefit as the industry returns to growth showcased by proprietary technology, diverse materials library, high-speed production solutions, and a growing global installed base. Despite softer revenue in the third quarter, our recurring revenue streams continue to perform very well, contributing to positive shift in adjusted EBITDA, a path towards reaching breakeven in the fourth quarter of 2023. And this sets Desktop Metal on a solid foundation to capitalize on the long-term trend of at-scale 3D printing in manufacturing.

總而言之，我們終於對獲利有了清晰的認識，Desktop Metal 對美好的未來充滿信心，並明確關注高成長的產品類別和營運效率。隨著專有技術、多樣化材料庫、高速生產解決方案和不斷增長的全球安裝基礎所展示的產業恢復成長，我們已做好充分準備，從中受益。儘管第三季營收疲軟，但我們的經常性收入流持續表現良好，有助於調整後EBITDA 的積極轉變，這是在2023 年第四季實現盈虧平衡的道路。這為Desktop Metal 奠定了堅實的基礎，可以充分利用大規模 3D 列印在製造業的長期趨勢。

And with that, I'll turn it over to our CFO, Jason Cole. Jason?

接下來，我會將其交給我們的財務長傑森·科爾 (Jason Cole)。傑森？

Thanks, Ric. I'll begin on slide 15 with highlights of our financial performance for the third quarter of 2023. A reminder that we will be referring to several financial metrics on a non-GAAP basis, and a reconciliation to GAAP data is included in the filed appendix.

謝謝，里克。我將從投影片 15 開始，重點介紹我們 2023 年第三季的財務表現。提醒一下，我們將參考非 GAAP 基礎上的多項財務指標，並在提交的附錄中包含與 GAAP 資料的對帳。

Consolidated revenue for the third quarter of 2023 was $42.8 million, down 9.2% from $47.1 million in the third quarter of 2022. The decline in year-over-year revenue was led by weaker product sales, partially linked to ongoing efforts to deemphasize product lines with lower-quality growth prospects in addition to lengthening sales cycles. As we've mentioned previously, we have narrowed our product sales focus as we've streamlined costs, prioritizing growth potential, and/or stronger margin opportunities.

2023 年第三季的合併收入為 4,280 萬美元，比 2022 年第三季的 4,710 萬美元下降 9.2%。營收年減的原因是產品銷售疲軟，部分原因是持續淡化產品線的努力除了銷售週期延長外，成長前景品質也較低。正如我們之前提到的，我們縮小了產品銷售重點，因為我們精簡了成本，優先考慮成長潛力和/或更強勁的利潤機會。

Higher-margin recurring revenue streams increased year over year, which was offset by decreases in other parts of the business. Desktop Metal's product and services have been effectively and consistently validated by our customers as they create solutions to real business challenges and generate meaningful and rapid return on investment. We have historically closed a significant amount of sales transactions at the end of each quarter. And in 3Q, we found several deals slip into October. These deals were included in and made up a substantial portion of our third-quarter internal projections, which we now expect to be completed in the fourth quarter.

利潤率較高的經常性收入流逐年增加，但被其他業務部門的下降所抵消。 Desktop Metal 的產品和服務已得到客戶的有效且一致的驗證，因為他們為實際業務挑戰提供了解決方案，並產生了有意義且快速的投資回報。歷史上，我們在每個季度末完成了大量銷售交易。在第三季度，我們發現有幾筆交易滑到了 10 月。這些交易已包含在我們第三季內部預測中並構成了很大一部分，我們現在預計將在第四季度完成。

While the third quarter was below our expectations, we remain confident that we will finish the year strong even as sales cycles have lengthened. Non-GAAP gross margins improved by more than 190 basis points to 21.9% for the third quarter of 2023. The improvement was driven by sustained progress in our cost reduction initiatives across multiple quarters, and these were partially offset by a one-time settlement with the supplier.

儘管第三季的業績低於我們的預期，但我們仍然有信心，即使銷售週期延長，我們也將強勁地結束今年。 2023 年第三季度，非GAAP 毛利率提高了190 個基點以上，達到21.9%。這項改善是由於我們多個季度的成本削減計劃持續取得進展，但這些改善被與公司的一次性和解所部分抵銷。供應商。

On slide 16, you can see how our cost savings, which began in June of 2022, have improved our margin performance over certain revenue levels. We have made meaningful reductions in our fixed cost base as a result of which we are able to achieve higher gross margins at current and future revenue levels. We are now focused on are higher growth and higher-margin parts of the business.

在投影片 16 上，您可以看到我們自 2022 年 6 月開始的成本節約如何提高了我們在特定收入水平上的利潤表現。我們已經大幅削減了固定成本基礎，因此我們能夠在當前和未來的收入水平上實現更高的毛利率。我們現在專注於業務的更高成長和更高利潤部分。

Seasonal revenue strength, along with meaningful cost savings, gives us confidence in our gross margin potential. Moving forward, we remain confident that we will be able to achieve non-GAAP gross margins above 30% in 4Q '23 and in 2024, even on modest revenue growth.

季節性收入強勁以及有意義的成本節省使我們對毛利率潛力充滿信心。展望未來，我們仍然有信心，即使收入成長不大，我們也能夠在 23 年第四季和 2024 年實現非 GAAP 毛利率超過 30%。

Moving on to the next slide. In the third quarter of 2023, our non-GAAP operating expenses were $33.2 million, down 20.1% as compared to $41.5 million in the third quarter of 2022. Operating expenses have been meaningfully reduced across all categories, including stock-based compensation. Non-GAAP operating expenses were down 4.2% sequentially compared to $34.6 million in the previous quarter.

轉到下一張投影片。 2023 年第三季度，我們的非 GAAP 營運費用為 3,320 萬美元，比 2022 年第三季的 4,150 萬美元下降 20.1%。所有類別的營運費用都大幅減少，包括基於股票的薪酬。非 GAAP 營運支出較上一季的 3,460 萬美元較上季下降 4.2%。

Since 1Q '22, we have lowered our quarterly non-GAAP OpEx by $18.8 million quarterly, or approximately $75 million annualized. This represents a 36% reduction in non-GAAP OpEx over this period. We are pleased with our progress on this front. And importantly, we are not done.

自 22 年第一季以來，我們已將季度非 GAAP 營運支出降低了 1,880 萬美元，年化約 7,500 萬美元。這意味著在此期間非 GAAP 營運支出減少了 36%。我們對這方面取得的進展感到高興。重要的是，我們還沒有完成。

While we have areas where incremental investment will help our business grow, we are executing these investment pivots selectively and expect to see continued operating leverage improvement through the fourth quarter of this year and into 2024. We believe that the trend of expanding operating leverage will continue, and we will benefit from our cost cutting efforts, disciplined spending, and top-line growth. This in turn is driving us to the path of profitability and generating positive cash flows.

雖然我們在某些​​領域進行增量投資將有助於我們的業務成長，但我們正在選擇性地執行這些投資重點，並預計從今年第四季到2024 年，營運槓桿率將持續改善。我們相信，營運槓桿率擴大的趨勢將持續下去，我們將受益於我們的成本削減努力、嚴格的支出和營收成長。這反過來又推動我們走上獲利之路並產生正現金流。

Our cost cutting efforts are insulating our business as we resize spend levels. We expect to continue the trend of lowering our expense structure throughout the remainder of the year. And our progress to date gives us confidence in our ability to execute reductions should the environment of weaken demand become more protracted.

當我們調整支出水準時，我們削減成本的努力正在保護我們的業務。我們預計今年剩餘時間將繼續保持降低費用結構的趨勢。迄今為止的進展讓我們相信，如果需求疲軟的環境變得更加持久，我們有能力執行削減措施。

Looking at the next slide. Adjusted EBITDA for the third quarter of 2023 was negative $20.5 million, an improvement of 27% (sic - please see slide 18, "27.3%") compared to a $28.2 million loss from third quarter of 2022. We are on track to achieve our base case of being adjusted EBITDA profitable in the fourth quarter of this year. Despite top-line weakness, progress to date on cost reductions makes us confident that our best performance is ahead of us in terms of adjusted EBITDA.

看下一張投影片。 2023 年第三季調整後EBITDA 為負2050 萬美元，與2022 年第三季的2820 萬美元虧損相比，提高了27%（原文如此- 請參見幻燈片18，「27.3%」）。我們有望實現我們的目標調整後的 EBITDA 在今年第四季實現盈利的基本情況。儘管營收疲軟，但迄今為止在成本削減方面取得的進展讓我們相信，就調整後 EBITDA 而言，我們的最佳業績即將到來。

Our funding is robust with $108.2 million in cash, cash equivalents, and short-term investments at the end of third quarter 2023 compared to $127.6 million to close 2Q 2023. Our net cash reduction of approximately $19.4 million in Q3 was the lowest since going public, excluding 2Q 2022 when we last raised cash. We are improving on and optimizing cash spend progressively through recent quarters and expect to continue to do so.

截至2023 年第三季末，我們的資金強勁，現金、現金等價物及短期投資為1.082 億美元，而截至2023 年第二季末為1.276 億美元。第三季我們的淨現金減少約1,940 萬美元，是上市以來的最低水平，不包括我們上次籌集現金的 2022 年第二季。最近幾個季度，我們正在逐步改進和優化現金支出，並預計將繼續這樣做。

We have trimmed our operating cash flow consumption to $21.4 million in third quarter of 2023, down 46% compared to $39.7 million consumed from operations in the third quarter of 2022. As a point of reference, this quarter's cash consumption from operations was down 62% when compared to $56.3 million consumed in the first quarter of 2022, the last full quarter of results before commencing our cost reductions.

我們已將2023 年第三季的營運現金流消耗削減至2,140 萬美元，與2022 年第三季營運消耗的3,970 萬美元相比下降了46%。作為參考，本季營運現金流消耗下降了62 %與 2022 年第一季消耗的 5,630 萬美元相比，這是我們開始削減成本之前的最後一個完整季度的結果。

Lastly, we finished the quarter with $107.2 million in inventory after investing $15.5 million during the quarter, and we are well-positioned to execute on expected fourth-quarter demand. We are committed to optimizing inventory management, monetizing inventory, and improving cash flow and working capital in 2024.

最後，在本季投資 1,550 萬美元後，本季末我們的庫存為 1.072 億美元，我們有能力滿足第四季的預期需求。我們致力於在 2024 年優化庫存管理、庫存貨幣化、改善現金流和營運資金。

Finally, moving to our financial outlook on slide 19 (sic - slide 20). Against a backdrop of macro and industry-wide headwinds from the beginning of this year, we adjusted our guidance ranges of revenue and adjusted EBITDA. We anticipate generating revenue in the range of $50 million to $70 million for the fourth quarter of 2023, representing revenue of $187 million to $207 million for the full year of 2023. This guidance is based on our expectation of certain transactions closing during the fourth quarter and the overall weaker macroeconomic backdrop. We expect the momentum in the improvement of adjusted EBITDA to continue into the fourth quarter of 2023 and beyond.

最後，轉向投影片 19 上的財務展望（原文如此 - 投影片 20）。今年以來，在宏觀和全行業不利的背景下，我們調整了收入指引範圍並調整了EBITDA。我們預計2023 年第四季的營收將在5,000 萬美元至7,000 萬美元之間，即2023 年全年營收將達到1.87 億美元至2.07 億美元。本指引基於我們對第四季完成的某些交易的預期以及整體疲弱的宏觀經濟背景。我們預計調整後 EBITDA 的改善動能將持續到 2023 年第四季及以後。

For fourth quarter 2023, we expect adjusted EBITDA to be negative $10 million to positive $10 million, implying adjusted EBITDA of negative $70 million to negative $50 million for the full year of 2023.

對於 2023 年第四季度，我們預計調整後 EBITDA 為負 1,000 萬美元至正 1,000 萬美元，這意味著 2023 年全年調整後 EBITDA 為負 7,000 萬美元至負 5,000 萬美元。

With that, we will take some questions. Operator?

接下來，我們將回答一些問題。操作員？

(Operator Instructions) Greg Palm with Craig-Hallum Capital Group.

（操作員說明）Greg Palm 與 Craig-Hallum Capital Group。

Hey. Hi, good morning, everyone. Thanks for taking the questions here. I wanted to start with a little bit on the quarter. In the guide, you talked about how some orders slip into October. I just wanted to confirm that did those get booked as revenue already in just in terms of your overall visibility rates at this point, the Q4 guidance range on a revenue line, $20 million pretty wide range. So whereas visibility right now, what enables you to get just sort of the top end of the range? What would be the bottom end and sort of what's the base case, right in the middle, if we could get a little bit more detail on that.

嘿。嗨，大家早安。感謝您在這裡提出問題。我想從本季的一些情況開始。在指南中，您談到了一些訂單如何滑入十月。我只是想確認一下，就目前的整體可見度而言，這些收入是否已經被登記為收入，收入線上的第四季度指導範圍是 2000 萬美元，範圍相當廣泛。那麼，儘管現在的可見性，是什麼讓您能夠獲得該範圍的高端？如果我們能獲得更多細節，那麼底端是什麼，基本情況是什麼，就在中間。

Yeah. Thanks, Greg. This is Jason. I think you're right, that is a wide range. I think, year to date, the business has not performed the way we expected it to. We opened the year understanding it was a weak backdrop. We had signals in our opportunity pipeline that said that could turn the middle of the year, and that has not happened. The signaling for the wide ranges, we put some degree of conservatism around that. We desperately do not want to perform outside of the guidance range here for fourth quarter. So we put it wide to make sure that we can hit it, I'd say, the bottom end of that range is very conservative. I think, when we talk base case, we're talking midpoint. And we believe we have the demand to deliver in the top half of that range. But we have some conservatism in there, and that's the essence of the $20 million range that talked about.

是的。謝謝，格雷格。這是傑森。我認為你是對的，範圍很廣。我認為，今年迄今為止，該業務的表現並未達到我們的預期。我們年初就知道這是一個疲軟的背景。我們的機會管道中有訊號表明這可能會在年中發生，但這並沒有發生。對於大範圍的訊號，我們對此採取了一定程度的保守主義。我們非常不想在第四季度的表現超出指導範圍。所以我們把它放寬以確保我們能夠達到它，我想說，這個範圍的下限是非常保守的。我認為，當我們談論基本情況時，我們談論的是中點。我們相信我們有能力交付該範圍的上半部。但我們也有一些保守主義，這就是我們所討論的 2000 萬美元範圍的本質。

Understood. And is it -- yeah, go ahead.

明白了。是嗎——是的，繼續吧。

I think, where you can see the world kind of performing with our peers in the market. And a lot of them have had surprises on the top line in this year. The public companies that are at some meaningful scale. So I think it's hard to tell if you call this a temporary blip in the additive space that people get accustomed to maybe higher interest rates and in the current environment in, but we do see a lot of opportunity in our file gets larger. So as that sale cycle brings back to a normal window, then you should see acceleration.

我認為，在那裡你可以看到世界與我們的同行在市場上的表現。其中許多人今年的營收都給人們帶來了驚喜。具有一定規模的上市公司。因此，我認為很難說這是否是人們習慣於更高利率和當前環境的附加空間中的暫時現象，但我們確實看到我們文件中的許多機會變得更大。因此，當銷售週期恢復到正常視窗時，您應該會看到加速。

Yes. Understood. And is there a maybe kind of a common denominator in terms of the sort of the weakness that you've seen throughout the year, whether it's by end-market type of customer, whether it's those that are financing transaction versus those that are not. I'm just trying to get a sense of kind of what you're maybe looking out there from a macro perspective that might help at least stabilize things at some point here in the near term?

是的。明白了。就您全年看到的弱點而言，是否存在某種共同點，無論是終端市場類型的客戶，還是融資交易的客戶還是非融資交易的客戶。我只是想從宏觀角度了解您可能會看到什麼，這可能至少有助於在短期內某個時候穩定局勢？

I mean, I think it's hard to put it into a single factor. A lot of stuff has gone -- has been a surprise this year. And there's been a lot of drama in our industry. I think of all the public companies, I think three of them have had basically don't have a CFO right now. And fortunately, we have a great one. But you see there's been a slowdown in our in our industry. I think is temporary. This is a growth industry, and I think we do see the demand and the customer interest, but there's periods of times when you've had that sort of a pause. And we also saw quite a bit of concern from many customers that are making million-dollar decisions that were just wondering what's going to happen after we terminated our deal with Stratasys, and they were just wondering in that delayed some deals that happen towards the last week of Q3. So that delayed a number of deals are now -- most of them are now closed. So hopefully, we move on and now we have a clear window to execute over the next 12 months and get this business back on the growth path and make customers successful.

我的意思是，我認為很難將其歸類為單一因素。很多東西都消失了——今年真是個驚喜。我們的行業發生了很多戲劇性的事情。我想到所有的上市公司，我認為其中三個現在基本上沒有財務長。幸運的是，我們有一個很棒的。但你會發現我們的產業正在放緩。我認為是暫時的。這是一個不斷增長的行業，我認為我們確實看到了需求和客戶的興趣，但有時你會遇到這種停頓。我們也看到許多客戶非常擔心，他們正在做出數百萬美元的決定，他們只是想知道我們終止與 Stratasys 的交易後會發生什麼，他們只是想知道推遲了去年發生的一些交易第三季度的一周。因此，許多交易現在被推遲了——其中大多數現在已經完成。因此，希望我們能繼續前進，現在我們有一個明確的窗口可以在未來 12 個月內執行，讓該業務重回成長道路並讓客戶取得成功。

Okay. And maybe just last question. You've talked about some big projects in a couple of verticals, automotive and consumer electronics, specifically. Any update on those -- to those remain on track.

好的。也許只是最後一個問題。您談到了幾個垂直領域的一些大型項目，特別是汽車和消費性電子產品。任何關於這些的更新——那些都保持在正軌上。

Yeah, they do. We continue to make progress across the board in a number of the area. Like all major projects, things always take a little bit longer, but we continue to make progress in this area. I think those are going to be major markets for our technology in the long run.

是的，他們確實這麼做了。我們繼續在許多領域取得全面進展。與所有重大專案一樣，事情總是需要更長的時間，但我們在這一領域不斷取得進展。我認為從長遠來看，這些將成為我們技術的主要市場。

Okay.

好的。

Let me add one thing to Ric's comments because I think it's important and we mentioned in the prepared remarks as well. The consumables and services recurring revenue streams performing the way they are, I think, is of a bullish undertone here. I think, while we have had some purchase decisions on products delayed, we are seeing the utilization of our systems that are in place rising. And I think that is a trend. It's the kind of the razorblade thing we've talked about in past calls, and so we're encouraged by that.

讓我在 Ric 的評論中添加一件事，因為我認為這很重要，我們也在準備好的評論中提到。我認為，消費品和服務的經常性收入流的表現是看漲的。我認為，雖然我們對產品的一些購買決定被推遲，但我們看到現有系統的利用率正在上升。我認為這是一種趨勢。這就是我們在過去的電話中討論過的剃須刀片的事情，所以我們對此感到鼓舞。

Yes. Thanks for commenting that out again. Okay, I will leave it there. Thanks.

是的。感謝您再次發表評論。好的，我會把它留在那裡。謝謝。

Awesome. Wonderful. Well, we keep making great progress on titanium and many other areas. Great to have a P50 quarter this quarter with our friends at FreeFORM and many other things to come in this area.

驚人的。精彩的。嗯，我們在鈦和許多其他領域不斷取得巨大進展。很高興本季與 FreeFORM 的朋友們一起推出 P50 季度，以及即將在該領域推出的許多其他產品。

So thanks again for listening, and thanks to all of our employees that worked very hard to drive additive into mass production, in our investors for believing our vision, and look forward to next quarter.

因此，再次感謝您的聆聽，感謝我們所有努力推動增材製造批量生產的員工，感謝我們的投資者相信我們的願景，並期待下個季度。

Thank you. That concludes our question-and-answer session. Mr. Fulop, did you have any further comments?

謝謝。我們的問答環節到此結束。 Fulop先生，您還有什麼意見嗎？

No, we're good.

不，我們很好。

Thank you. That concludes our conference call today. Thank you for your participation. You may now disconnect your lines.

謝謝。我們今天的電話會議到此結束。感謝您的參與。現在您可以斷開線路。