Markforged Holding Corp (MKFG) 2023 Q1 法說會逐字稿

Hello, and welcome to the Markforged first quarter 2023 earnings conference call and webcast. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to turn the call over to Austin Bohlig, Director of Investor Relations. Please go ahead, Austin.

您好，歡迎參加 Markforged 2023 年第一季度收益電話會議和網絡廣播。 （操作員指示）謹此提醒，本次會議正在錄製中。現在我很高興將電話轉給投資者關係總監 Austin Bohlig。請繼續，奧斯汀。

Good afternoon. I'm Austin Bohlig, Director of Investor Relations of Markforged Holding Corporation. Welcome to our first quarter of 2023 results conference call. We will be discussing the results announced in our earnings press release issued after market close today. With me on the call is our President and CEO, Shai Terem; and our CFO, Mark Schwartz.

下午好。我是 Austin Bohlig，Markforged Holding Corporation 投資者關係總監。歡迎參加我們的 2023 年第一季度業績電話會議。我們將討論今天收盤後發布的收益新聞稿中公佈的結果。與我一起參加電話會議的是我們的總裁兼首席執行官 Shai Terem；以及我們的首席財務官馬克·施瓦茨 (Mark Schwartz)。

Before we get started, I'd like to remind everyone that management will be making statements during this call that include estimates and other forward-looking statements, which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.

在我們開始之前，我想提醒大家，管理層將在這次電話會議中發表聲明，其中包括估計和其他前瞻性聲明，這些聲明是根據 1995 年《私人證券訴訟改革法案》的安全港條款做出的。

Any statements contained in this call that are not statements of historical facts should be deemed to be forward-looking statements. These statements represent management's views as of today, May 11, 2023, and are subject to material risks and uncertainties that could cause actual results to differ materially. Markforged disclaims any intention or obligation, except as required by law to update or revise forward-looking statements.

本次電話會議中包含的任何非歷史事實陳述的陳述均應被視為前瞻性陳述。這些陳述代表了截至今天（2023 年 5 月 11 日）管理層的觀點，並受到重大風險和不確定性的影響，可能導致實際結果出現重大差異。除法律要求更新或修改前瞻性陳述外，Markforged 不承擔任何意圖或義務。

Also, during the course of today's call, we refer to certain non-GAAP financial measures. There is a reconciliation schedule showing GAAP versus non-GAAP results currently available in our press release issued after market close today, which can also be found on our website at investors.markforged.com.

此外，在今天的電話會議中，我們提到了某些非公認會計準則財務指標。我們今天收盤後發布的新聞稿中提供了顯示 GAAP 與非 GAAP 結果的核對錶，也可以在我們的網站 Investors.markforged.com 上找到。

I'll now turn the call over to Shai Terem, President and CEO of Markforged.

現在我將把電話轉給 Markforged 總裁兼首席執行官 Shai Terem。

Thank you, Austin. Thank you, everyone for joining us on our Q1 2023 earnings call. We have started the year strong with yet another record first quarter revenues and the largest pipeline in our company's history. We've shared our strategy before through our product innovation, go-to-market and financial efficiency gains, and infrastructure build-out. We believe our Q1 revenue and our gross margin results in particular are a reflection of strong execution of our strategy, and an early indicator of the meaningful opportunity for Markforged in the coming quarters.

謝謝你，奧斯汀。感謝大家參加我們的 2023 年第一季度財報電話會議。我們以強勁的勢頭開啟了新的一年，第一季度收入再創新高，管道數量創公司歷史之最。我們之前已經通過產品創新、上市和財務效率提升以及基礎設施建設分享了我們的戰略。我們相信，我們第一季度的收入和毛利率結果尤其反映了我們戰略的強勁執行，也是 Markforged 在未來幾個季度獲得有意義機會的早期指標。

Demand for the Digital Forge grew across all geographies in Q1, as increasing number of manufacturers are choosing our metal and composite solutions to solve mission-critical metal applications at the point of need. It's especially great to see strong pipeline build-up in the Americas, which is our biggest region and can support our planned growth. The incremental improvements we've made to our FX20 cost structure, coupled with our strong operating expense controls, enabled us to make our Q1 EPS target.

第一季度，隨著越來越多的製造商選擇我們的金屬和復合材料解決方案來解決關鍵任務金屬應用的需求，第一季度所有地區對數字鍛造的需求都在增長。特別高興的是看到美洲的管道建設強勁，這是我們最大的地區，可以支持我們計劃的增長。我們對 FX20 成本結構進行的逐步改進，加上我們強有力的運營費用控制，使我們能夠實現第一季度每股收益目標。

As we spoke before, a couple of macro trends in manufacturing are helping us to fuel demand for our digital Forge platform. The first, manufacturers across the globe are focused on creating more resilient and flexible production by investing in solutions that derisk their supply chain. The second is it increased focus on digital transformation and industrial automation. We believe our platform is uniquely positioned to address the $40 billion market opportunity available to us on the manufacturing floor today.

正如我們之前所說，製造業的一些宏觀趨勢正在幫助我們刺激對數字 Forge 平台的需求。首先，全球製造商致力於通過投資消除供應鏈風險的解決方案來創造更具彈性和靈活性的生產。二是更加關注數字化轉型和工業自動化。我們相信，我們的平台具有獨特的優勢，可以滿足當今製造車間提供的 400 億美元的市場機會。

Our customers tell us that Digital Forge is the perfect tool for their manufacturing floor and accelerates introduction of new and replacement parts. For example, our customer Rapid Robotics provide automation tools through robotics as a service offering to manufacturers to automate production sales. With a fleet which grew over time to 10 Markforged printers, Rapid Robotics produces on-site custom grippers and end factors for their robotic arm, saving in some cases months of production cycles to improve overall performance.

我們的客戶告訴我們，Digital Forge 是他們製造車間的完美工具，可加速新零件和替換零件的推出。例如，我們的客戶 Rapid Robotics 通過機器人即服務向製造商提供自動化工具，以實現生產銷售自動化。隨著時間的推移，Rapid Robotics 的機隊數量已增至 10 台 Markforged 打印機，Rapid Robotics 為其機械臂生產現場定制夾具和末端元件，在某些情況下節省了數月的生產週期，從而提高了整體性能。

Another example in Arizona is our customer Handwrytten, which develops robots to autonomously create personalized handwritten notes that stand out with a personal touch. Handwrytten uses the fleet of five Markforged printers for intuitive robotic design and faster production times. We have enough customers applying advance robotics to increase production.

亞利桑那州的另一個例子是我們的客戶 Handwrytten，該公司開發機器人來自動創建個性化手寫筆記，以個人風格脫穎而出。 Handwrytten 使用五台 Markforged 打印機來實現直觀的機器人設計和更快的生產時間。我們有足夠多的客戶應用先進的機器人技術來提高產量。

Athena 3D manufacturing, who operate in a service bureau that produces critical parts for auto manufacturers and develop the system capable of true lights-out manufacturing by automating the processes of starting print and removing parts with robotic arms. This automation has enabled them to double output and achieve a 40% increase in utilization of the digital technology suite.

Athena 3D 製造公司在一家為汽車製造商生產關鍵零部件的服務局運營，並通過自動化開始打印和用機械臂移除零部件的過程來開發能夠真正實現無人值守製造的系統。這種自動化使他們的產量翻了一番，數字技術套件的利用率提高了 40%。

I encourage you to check out the video we have uploaded to our YouTube channel showing these robots in action, truly amazing. Manufacturers seek production great solutions for the factors of revenue for the FX20 continue to exceed our expectations, and the pipeline of new orders continues to grow. Entering 2023, our focus was improving the cost of producing the FX20.

我鼓勵您觀看我們上傳到 YouTube 頻道的視頻，該視頻展示了這些機器人的實際操作，確實令人驚嘆。製造商尋求生產出色的解決方案，FX20 的收入因素繼續超出我們的預期，並且新訂單的渠道持續增長。進入 2023 年，我們的重點是提高 FX20 的生產成本。

Thanks to the diligent work by our engineering and operation teams, the cost to produce FX20 are declining, which is helping to drive sequential gross margin expansion. We expect FX20 production cost to continue to decline throughout this year, which will support our objectives to meet our historical gross margin rate. With the ability to bring large, heightened, resistant parts, the aerospace market is a key target for FX20, and we are pleased with our early traction and strong interest.

由於我們的工程和運營團隊的辛勤工作，FX20的生產成本正在下降，這有助於推動毛利率的環比擴張。我們預計 FX20 的生產成本今年將繼續下降，這將支持我們實現歷史毛利率目標。由於能夠生產大型、加高、耐用的零件，航空航天市場成為 FX20 的主要目標，我們對我們的早期牽引力和強烈興趣感到高興。

We are already scaling with customers utilizing the FX20 for maintenance, repair, and operations or MRO applications. What is extremely encouraging is the interest we are seeing in utilizing the FX20 to produce and use parts that go into the production of new aircraft. While these have lengthy development cycle, we are already seeing aerospace companies begin to spec the Digital Forge into their next gen aircrafts.

我們已經與客戶合作，利用 FX20 進行維護、維修和運營或 MRO 應用。非常令人鼓舞的是，我們看到人們對利用 FX20 生產和使用用於生產新飛機的零件產生了興趣。雖然這些技術的開發週期很長，但我們已經看到航空航天公司開始將數字鍛造技術應用到他們的下一代飛機中。

For example, US-based Hermeus is working with the US Air Force and NASA on a multi-year plan to radically accelerate air travel by developing a Mach 5 aircraft capable of commercial flights. Early in the development process, they began using our X5 and have recently added an FX20 to their fleet to produce the types of advanced composite parts required to achieve hypersonic passenger flights. By adopting our technology early in the product lifecycle, we are helping to enable next-gen air travel and planting the seeds for future growth.

例如，總部位於美國的 Hermeus 正在與美國空軍和 NASA 合作制定一項多年計劃，通過開發能夠進行商業飛行的 5 馬赫飛機來從根本上加速航空旅行。在開發過程的早期，他們開始使用我們的 X5，最近又在其機隊中添加了 FX20，以生產實現高超音速客運飛行所需的先進複合材料零件。通過在產品生命週期的早期採用我們的技術，我們正在幫助實現下一代航空旅行，並為未來的增長播下種子。

At the end of Q1, we moved into our new global headquarter in Waltham, just outside of Boston. With this new state-of-the-art R&D lab, and we can already feel the excitement that comes from collaborating in-person every day and believe this move will drive even more operational efficiencies over time. We remain laser-sharp focused on margin expansion and driving profitable growth. We're particularly encouraged by the sequential improvement in gross margin, which exceeded 49% in the first quarter. We are committed to reaching profitability without needing to raise additional capital.

第一季度末，我們搬進了位於波士頓郊外沃爾瑟姆的新全球總部。有了這個新的最先進的研發實驗室，我們已經可以感受到每天面對面合作所帶來的興奮，並相信隨著時間的推移，這一舉措將進一步提高運營效率。我們仍然高度關注利潤擴張和推動利潤增長。我們尤其對毛利率的連續改善感到鼓舞，第一季度毛利率超過 49%。我們致力於在不需要籌集額外資金的情況下實現盈利。

Manufacturing is changing significantly, and we are well positioned to benefit from the full potential of this inflection point. Given our upcoming new product introductions, growing pipeline, and healthy margins, we're even more confident in our ability to achieve this objective.

製造業正在發生巨大變化，我們處於有利位置，可以從這一拐點的全部潛力中受益。鑑於我們即將推出的新產品、不斷增長的產品線以及可觀的利潤率，我們對實現這一目標的能力更加充滿信心。

As you have probably seen in our announcement earlier today, this will be our last earnings call with Mark as our CFO. I want to thank Mark for his service to Markforged and helping us on our journey from a private startup to a public company. For me, personally, Mark has been a great partner. He will continue to support us for the next few months while we search for our next CFO.

正如您可能在我們今天早些時候的公告中看到的那樣，這將是馬克擔任首席財務官的最後一次財報電話會議。我要感謝 Mark 為 Markforged 提供的服務，並幫助我們完成從私營初創公司到上市公司的旅程。對我個人來說，馬克是一位很棒的合作夥伴。在接下來的幾個月裡，當我們尋找下一任首席財務官時，他將繼續支持我們。

For continuity, Assaf Zipori, our previous CFO and current Head of Strategy and Corporate Development, who has been with us for the past 3.5 years, will assume the role on an interim basis. Mark is not leaving us just yet, but we wish him well on his next project.

為了保持連續性，我們的前首席財務官、現任戰略和企業發展主管 Assaf Zipori 將臨時擔任這一職務，他在過去 3.5 年裡一直在我們工作。馬克還沒有離開我們，但我們祝愿他的下一個項目一切順利。

With that, I now turn the call over to Mark Schwartz, our CFO, who will offer more details on our financial performance and guidance for the remainder of the year.

現在，我將電話轉給我們的首席財務官馬克·施瓦茨 (Mark Schwartz)，他將提供有關我們今年剩餘時間的財務業績和指導的更多詳細信息。

Thanks, Shai. Let's turn to our financial results for the first quarter of 2023. Please note that my comments reflect our non-GAAP results and outlook. For your reference, our earnings press release issued earlier this afternoon and posted to our Investor Relations website, includes our GAAP to non-GAAP reconciliation to assist with my commentary. Revenue increased 10.2% to $24.1 million for the first quarter of 2023 compared with revenues of $21.9 million for the first quarter of 2022.

謝謝，謝。讓我們來看看 2023 年第一季度的財務業績。請注意，我的評論反映了我們的非 GAAP 業績和前景。供您參考，我們今天下午早些時候發布並發佈在投資者關係網站上的收益新聞稿，其中包括我們的 GAAP 與非 GAAP 調節表，以協助我的評論。 2023 年第一季度收入增長 10.2%，達到 2410 萬美元，而 2022 年第一季度收入為 2190 萬美元。

Gross profit in Q1 was $11.9 million compared to $11.7 million for the first quarter of 2022. As a result, we generated a gross profit margin of 49.3% compared to 53.6% in the first quarter of 2022. On a year-over-year comparison basis, our Q1 gross margin was impacted by increases in freight and logistics costs, as well as by the added component material and labor costs associated with ramping up FX20 commercial production. That said, on a sequential basis, our gross margins expanded by 180 basis points versus Q4 of 2022. Our product mix has shifted toward higher-margin products and improved FX20 production costs.

第一季度的毛利潤為 1190 萬美元，而 2022 年第一季度為 1170 萬美元。因此，我們的毛利率為 49.3%，而 2022 年第一季度為 53.6%。在此基礎上，我們第一季度的毛利率受到貨運和物流成本增加以及與 FX20 商業生產增加相關的零部件材料和勞動力成本的影響。也就是說，與 2022 年第四季度相比，我們的毛利率環比增長了 180 個基點。我們的產品組合已轉向利潤率更高的產品，並改善了 FX20 生產成本。

Our operating expenses were $26.7 million for the first quarter of 2023 compared to $26.4 million for the first quarter of 2022, even accounting for the increased operating expenses associated with the absorption of two acquisitions last year. On a sequential basis, operating expenses were down 9% from Q4 of 2022, reflecting our commitment to containing costs. Net loss for the first quarter of 2023 was $13.3 million or $0.07 per share based on our weighted average shares outstanding for the quarter of 195.6 million.

2023 年第一季度我們的運營費用為 2670 萬美元，而 2022 年第一季度為 2640 萬美元，即使考慮到去年吸收兩項收購帶來的運營費用增加。與 2022 年第四季度相比，運營費用環比下降 9%，體現了我們控製成本的承諾。根據我們該季度已發行股票的加權平均數 1.956 億股計算，2023 年第一季度的淨虧損為 1,330 萬美元，即每股 0.07 美元。

Now onto our guidance. We were pleased with our results for Q1 and the start of the year. Our revenue guidance continues to reflect the uncertain macro environment. And we reiterate anticipated revenues for the year can be within the range of $101 million to $110 million. We expect fiscal year 2023 non-GAAP gross margin to be in the range of 47% to 49%. We were encouraged with the progress we made with our gross margin in Q1. And we are confident that longer, they will continue to improve towards historical levels.

現在進入我們的指導。我們對第一季度和年初的業績感到滿意。我們的收入指引繼續反映不確定的宏觀環境。我們重申今年的預期收入可能在 1.01 億美元至 1.1 億美元之間。我們預計 2023 財年非 GAAP 毛利率將在 47% 至 49% 之間。我們對第一季度毛利率取得的進展感到鼓舞。我們相信，在更長的時間內，它們將繼續向歷史水平提高。

The disciplines we exerted over our operating expenses in Q1 will continue as we progress through 2023. We expect operating expenses to decline as a percentage of our revenues, resulting in a non-GAAP operating loss in the range of $55 million to $58 million for the year. This translates into non-GAAP EPS results for the full year to be a loss in the range of $0.27 to $0.29 per share. We executed on our strategy to lower our quarterly cash burn, with cash flow from operations decreasing $3.7 million or approximately 20% from the first quarter of 2022 the first quarter of 2023.

隨著 2023 年的進展，我們在第一季度對運營支出實施的紀律將繼續下去。我們預計運營支出佔收入的比例將下降，導致非 GAAP 運營虧損在 5500 萬至 5800 萬美元之間。年。這意味著全年非公認會計原則每股收益為每股虧損 0.27 美元至 0.29 美元。我們執行了降低季度現金消耗的戰略，與 2022 年第一季度相比，2023 年第一季度運營現金流減少了 370 萬美元，即約 20%。

As we have previously stated, we expect to reduce our operating cash burn in 2023 to under $50 million, a decrease of $32 million or 39% as compared to 2022. This will be realized through higher revenues and margin expansion, continued inventory reductions and working capital improvements, and increased yields on our cash and equivalents and short-term instruments. We expect to end 2023 with the balance of approximately $120 million in cash and equivalents and short-term investments.

正如我們之前所說，我們預計 2023 年的運營現金消耗將減少至 5000 萬美元以下，比 2022 年減少 3200 萬美元，即 39%。這將通過更高的收入和利潤率擴張、持續的庫存減少和工作來實現。資本改善以及現金及等價物和短期工具的收益率增加。我們預計到 2023 年底，現金及等價物和短期投資的餘額約為 1.2 億美元。

We are encouraged with our Q1 results. We believe they are a reflection that our strategy and strong execution are working, and an early indicator for us of the opportunity coming in future quarters. And further, we continue to believe we have the infrastructure in place that supports our long-term innovation and go-to market objectives for profitable growth without the need to raise additional capital.

我們對第一季度的業績感到鼓舞。我們相信，它們反映了我們的戰略和強有力的執行力正在發揮作用，也是我們未來幾個季度出現機會的早期指標。此外，我們仍然相信我們擁有適當的基礎設施，可以支持我們的長期創新和進入市場目標，實現盈利增長，而無需籌集額外資金。

Finally, I want to thank Shai, and the entire team at Markforged for their collaboration and support over the past years. It has been my honor and pleasure to work side by side with this group of passionate people, focused on providing manufacturers a flexible and resilient platform to produce mission critical parts at the point of need. It is the right time to step aside and be a fan and champion for the very bright future of this company.

最後，我要感謝 Shai 和 Markforged 的​​整個團隊在過去幾年中的合作和支持。我很榮幸也很高興與這群充滿熱情的人們並肩工作，專注於為製造商提供一個靈活且有彈性的平台，以便在需要時生產關鍵任務零件。現在是時候退到一邊，成為這家公司光明未來的粉絲和擁護者了。

That concludes our prepared remarks today. Operator, please open up the call for questions.

我們今天準備好的發言到此結束。接線員，請撥打電話詢問問題。

(Operator Instructions)

（操作員說明）

Troy Jensen, Lake Street Capital Markets.

特洛伊·詹森，湖街資本市場。

Hey, gentlemen. Congrats on the nice results here.

嘿，先生們。恭喜這裡取得的好成績。

Thanks, Troy.

謝謝，特洛伊。

Hey, quick -- Shai, for you. FX 20, I guess it'd be -- really curious on ULTEM. I guess I don't know if I've seen parts produced out from the FX20 that's got all parts of continuous carbon fiber in it. So, this traction that you're talking about specifically in aerospace, can you just let us know for larger Onyx parts or is it the traction with ULTEM?

嘿，快點——Shai，給你。 FX 20，我想是——對 ULTEM 非常好奇。我想我不知道我是否見過 FX20 生產的零件全部都是連續碳纖維的。那麼，您所談論的這種牽引力是專門針對航空航天領域的，您能否告訴我們較大的 Onyx 零件的牽引力，還是 ULTEM 的牽引力？

I think it's there for both. And definitely, the ULTEM is very interesting for the aerospace companies. There's no doubt there's more complexity in parts that involve ULTEM and continued fiber, but we do see some of them out there. But we are very pleased with the FX20 result, it's really increasing significantly.

我認為兩者都有。毫無疑問，ULTEM 對於航空航天公司來說非常有趣。毫無疑問，涉及 ULTEM 和連續纖維的零件更加複雜，但我們確實看到了其中的一些。但我們對 FX20 的結果非常滿意，它確實在顯著增長。

Yes. Perfect. And Mark, for you, just on gross margins. You're already above the high end of the range for the year. So can you talk about sequentially what's going to forces that down to below 49%?

是的。完美的。馬克，對你來說，只是毛利率。您已經超出了今年範圍的高端。那麼您能否依次談談什麼因素會迫使這一比例降至 49% 以下？

Yeah, I think it's really a reflection, Troy, the lack of visibility we have into the market. And there's just -- there continues to be some macro pressures that we're feeling. We had a great quarter, but it wasn't an easy quarter. So, as we look into the future, we don't want to get ahead of ourselves here.

是的，我認為這確實反映了特洛伊，我們缺乏對市場的了解。我們仍然感受到一些宏觀壓力。我們度過了一個很棒的季度，但這並不是一個輕鬆的季度。因此，當我們展望未來時，我們不想在這裡超前。

And we feel really good about the trajectory we're on. As I said in the prepared remarks, I think our first quarter results and particularly on the gross margin side, they are a reflection that what we're doing is working. And we see ourselves returning to historical levels. But just after the first quarter out of the gate, we're not prepared to change our guidance. And really that's a reflection of the visibility.

我們對目前的發展軌跡感覺非常好。正如我在準備好的發言中所說，我認為我們第一季度的業績，特別是毛利率方面，反映了我們正在做的事情正在發揮作用。我們看到自己回到了歷史水平。但就在第一季度結束後，我們不准備改變我們的指導。這確實反映了可見性。

Perfect, understood. And then maybe, last one for Shai. Just PX100, can you give us an update your thoughts on the number of units you can ship this year? When does that become a meaningful fleet?

完美，明白了。也許，最後一個是給 Shai 的。就 PX100 而言，您能告訴我們您對今年可以發貨的單位數量的最新想法嗎？什麼時候才能成為一支有意義的艦隊？

As you saw in RAPID, we brought it the first time to the US, and there's a lot of traction around it, a lot of demand building up, good background I think also. I hope we're going to start shipping systems in Q3 this year. I think this year still relatively to the size of the business. I don't see it as a very big impact, but they are definitely growing materially. We see very, very impressive demand from automotive, from a luxury goods, consumer electronics, and medical industries that we've not seen before.

正如您在 RAPID 中看到的那樣，我們第一次將其帶到美國，它周圍有很大的吸引力，大量的需求正在增加，我認為也有很好的背景。我希望我們能在今年第三季度啟動運輸系統。我覺得今年的業務規模還是比較大的。我不認為這是一個很大的影響，但它們確實在實質性增長。我們看到汽車、奢侈品、消費電子產品和醫療行業的需求非常非常可觀，這是我們以前從未見過的。

Right. Understood. Mark, good luck with the golf game. Thank you, guys. Keep up the good work.

正確的。明白了。馬克，祝你高爾夫比賽好運。感謝你們。保持良好的工作。

Thanks, Troy.

謝謝，特洛伊。

Thank you, Troy.

謝謝你，特洛伊。

Greg Palm, Craig-Hallum.

格雷格·帕爾姆，克雷格·哈勒姆。

Yeah, thanks. Congrats on the good results here. It is well -- I am just kind of broadly speaking, curious if you could just kind of give us more of an update on what you're seeing out there, demand-wise. Couple of your peers talked about pushouts and delays in customer purchase decisions. But your quarter came in quite a bit better. So just curious what you're seeing out there.

是的，謝謝。在此恭喜取得好成績。很好——我只是從廣義上講，很好奇您能否向我們提供更多有關您所看到的需求方面的最新信息。您的一些同行談到了客戶購買決策的推遲和延遲。但你的季度業績要好得多。所以只是好奇你在那裡看到了什麼。

Yeah, thank you. We definitely see demand building up significantly stronger than a year ago. And the pipeline is significantly bigger, with that we also see some delay in decision making. So, the conversion rate is little bit slower, because of capital now is a big issue, especially for small businesses. But as you saw the results, I think speak for themselves, we're able to grow still in this environment. And I hope the situation will continue to improve, and we still have a good year ahead of us.

是的，謝謝。我們確實看到需求明顯強於一年前。而且管道要大得多，因此我們也看到決策存在一些延遲。所以，轉換速度有點慢，因為現在資金是一個大問題，特別是對於小企業來說。但正如你所看到的結果，我認為不言而喻，我們能夠在這種環境中繼續成長。我希望情況會繼續改善，我們仍然會有美好的一年。

Yes, understood. I'm having a difficult time tying out the gross margin commentary. So, I guess I'm going to take a stab at a question as well. I guess I get the lack of visibility, but the full year revenue guide assumes higher levels of revenue throughout the year.

是的，明白了。我很難對毛利率做出評論。所以，我想我也將嘗試回答一個問題。我想我缺乏可見性，但全年收入指南假設全年收入水平較高。

And I think, Shai, you talked about in the prepared commentary specifically around FX20 production costs continuing to come down throughout the year. So, I appreciate the conservatism, but ''m having a hard time tying out the gross margin in Q1, which was quite a bit better than expectations and the potential that actually comes down throughout the year, just given the tailwinds I just talked about.

我認為，Shai，您在準備好的評論中特別談到了 FX20 生產成本全年持續下降的情況。因此，我很欣賞這種保守主義，但我很難確定第一季度的毛利率，這比預期要好很多，考慮到我剛才談到的有利因素，全年的毛利率實際上會下降。 。

Yeah. Thanks, Greg. I think there's a number of factors, as you can imagine, that go into it. Just as an example, as you bring on a new product and there are some engineering changes that are incorporated, new suppliers that are incorporated, you end up with materials that you cannot use in production, and that impacts gross margin.

是的。謝謝，格雷格。我認為，正如你可以想像的那樣，其中有很多因素。舉個例子，當您推出新產品並納入一些工程變更、納入新供應商時，您最終會得到無法在生產中使用的材料，這會影響毛利率。

we have got a new product. And as it is being distributed out in the field, we have to think about our warranties, and reserves, and provisions, et cetera for that. So it is more complex than simply the cost of production, although, that's a very important part of it, as you highlighted. But I think for us, we feel like we are on a great trajectory.

我們有一個新產品。當它在現場分發時，我們必須考慮我們的保證、儲備和規定等等。因此，它比簡單的生產成本更複雜，儘管正如您所強調的，這是其中非常重要的一部分。但我認為對我們來說，我們感覺自己正走在一條偉大的軌道上。

And I think you are asking the right question. We feel very positive about the direction our gross margin is moving. But having said that, there is still this lack of full visibility or at least the return of visibility levels we had a few years ago. And as a result, we are just not prepared to make any changes to our guidance just yet.

我認為你問的是正確的問題。我們對毛利率的變化方向感到非常樂觀。但話雖如此，仍然缺乏充分的可見性，或者至少沒有恢復到幾年前的可見性水平。因此，我們還沒有準備好對我們的指導進行任何改變。

Okay. No, that makes that makes sense. And then can you just remind us, in lumped this the FX20 production costs within the other various supply chain related impacts on gross margin that you suffered last year. Maybe just remind us, quantify how much that was? And then I guess at what point do you think those headwinds will be fully recouped or mostly recouped, fully understanding that there is a lack of visibility at this point. But what is your current thought there?

好的。不，這是有道理的。然後您能否提醒我們，將 FX20 生產成本與您去年遭受的其他各種供應鏈相關的毛利率影響相結合。也許只是提醒我們，量化一下那是多少？然後我猜你認為這些不利因素在什麼時候會完全彌補或大部分彌補，充分理解目前缺乏可見性。但你目前的想法是什麼？

So, about two or three quarters ago, I think we did quantify it when maybe our gross margin on a year-over-year basis was down about 8%. And we have talked about where that 8% comes from. And roughly half of it, if I recall, was from the FX20, and the other half of it, we were seeing from general supply chain challenges, price increases, one-off parts that were costing us 3x or 5x more than we previously paid for it.

因此，大約兩三個季度前，我認為我們確實對其進行了量化，當時我們的毛利率可能同比下降了約 8%。我們已經討論過這 8% 是從哪裡來的。如果我沒記錯的話，其中大約一半來自 FX20，另一半是我們從一般供應鏈挑戰、價格上漲、一次性零件成本中看到的，這些零件的成本是我們之前支付的 3 倍或 5 倍為了它。

Some of that is definitely making its way out of the system. Supply chain is improving, there is no question. it is not back to where it was, but it is improving. The FX20 is not where we need it to be from the targets we have set. But it is also improving. And so I would say we are still probably 5% or 6% away from where we expect to be, and that is probably still equally attributed to the supply chain more broadly and to the FX20.

其中一些肯定會從系統中消失。供應鏈正在改善，這是毫無疑問的。它沒有回到原來的狀態，但正在改善。 FX20 沒有達到我們設定的目標。但它也在改善。因此，我想說，我們距離預期目標仍有 5% 或 6% 的差距，這可能仍然同樣歸因於更廣泛的供應鍊和 FX20。

But just on the timeline specifically, I mean, do you think that most of that can be recouped at some point next year?

但就具體的時間表而言，我的意思是，您認為其中大部分可以在明年的某個時候收回嗎？

I think the FX20 for certain will be-- should be out of the system by the time we are having a call like this in a year from now. The supply chain is a little bit more challenging to predict timewise. But I think it is fair to say next year sometime that should be behind us.

我認為當一年後我們接到這樣的電話時，FX20 肯定會從系統中消失。供應鏈的時間預測更具挑戰性。但我認為可以公平地說，明年的某個時候，這一切就已經過去了。

Okay, perfect. I will leave it there. Thanks.

好的，完美。我會把它留在那裡。謝謝。

Thanks, Greg.

謝謝，格雷格。

Thank you, Greg.

謝謝你，格雷格。

Shannon Cross, Credit Suisse.

香農·克羅斯，瑞士信貸。

Thank you very much for taking my question. I am wondering, looking at your numbers, the recurring revenue as a percent of total has increased significantly. So ''m just curious, what factors would you point to behind that?

非常感謝您回答我的問題。我想知道，看看你們的數字，經常性收入佔總收入的百分比顯著增加。所以我很好奇，你認為這背後有哪些因素？

So, as you can see the return revenue have a split between the material consumption and the success that we have. I think probably-- more recently probably on the materials side, of course, but we also-- I think we discussed about this before, we launch a new subscription plan. So, we believe that will also have contribution going forward. So, we definitely see that the recurring revenue will continue to increase over time.

因此，正如您所看到的，退貨收入在材料消耗和我們所取得的成功之間劃分。我想可能——當然，最近可能是在材料方面，但我們也——我想我們之前討論過這個問題，我們推出了一個新的訂閱計劃。因此，我們相信未來也會做出貢獻。因此，我們肯定會看到經常性收入將隨著時間的推移而繼續增加。

I would also say, Shannon, -- it's Mark, that the [tremor] of this model and that software and services is more stable. It is reflected in the Q1 results, because while hardware is down seasonally, those other areas are not down nearly as much. And there is that sort of quarter-over-quarter stability. And as a result, for the first quarter, you see that being a higher percentage of revenues.

我還要說，香農，我是馬克，這種模式的[顫抖]以及軟件和服務更加穩定。這反映在第一季度的業績中，因為雖然硬件季節性下降，但其他領域的下降幅度卻沒有那麼大。並且存在這種季度環比的穩定性。因此，在第一季度，您會發現這佔收入的比例更高。

Got it. And then I am curious, how should we think about if you layer on top what you're doing from a subscription standpoint in your software business? Like I mean, I know it's going to take time, but how should we think about the potential for contribution there, as you shift to more paid software?

知道了。然後我很好奇，如果您從軟件業務的訂閱角度來看，我們應該如何考慮您正在做的事情？就像我的意思是，我知道這需要時間，但是當您轉向更多付費軟件時，我們應該如何考慮那裡的貢獻潛力？

I think there are two elements to it. One is the new subscription plan, which is a little bit more expensive, but gives more value to our customers. So that will, of course, have a positive impact on our earnings. But also, the other side of it is that we continue to push bigger system that have significant bigger consumption, and say, significantly bigger success plan. And that will also have another very positive impact on the recurring revenue as we continue to grow the fleets of the bigger systems.

我認為有兩個要素。一是新的訂閱計劃，價格稍貴一些，但為我們的客戶帶來了更多價值。因此，這當然會對我們的收入產生積極影響。但另一方面，我們繼續推動更大的系統，這些系統具有更大的消耗，也就是說，更大的成功計劃。隨著我們繼續擴大更大系統的機隊，這也將對經常性收入產生另一個非常積極的影響。

Okay. That's helpful. And then can you talk a bit about strength in Europe, what you're seeing, and maybe talk geographically anymore into the extent that you can get granular in terms of verticals in that? I mean, I'm just kind of curious, as a follow-up to one of the prior questions, just anything about who's buying, and where are they buying, and what are they interested in? Thank you.

好的。這很有幫助。然後你能談談歐洲的實力，你所看到的，也許還能再從地理角度談談，以便你能在垂直領域得到更細緻的了解？我的意思是，我只是有點好奇，作為之前問題之一的後續問題，我想知道有關誰在購買、他們在哪裡購買以及他們對什麼感興趣的任何信息？謝謝。

So, as you can see, we were very fortunate to be able to grow across all region and across all segments this quarter year-over-year, which is great. I think the main reason is probably that we are razor-sharp focused on manufacturing. We're trying to be the best tool for the manufacturing floor for our customers, and for machine builders that need to put very strong and accurate parts into their machines. And there is, in my view, an inflection points in the manufacturing in general, manufacturers are looking for more resilient supply chains. Smartwatch can be part of the solution.

因此，正如您所看到的，我們非常幸運能夠在本季度在所有地區和所有細分市場實現同比增長，這非常棒。我認為主要原因可能是我們非常專注於製造。我們正在努力成為客戶和需要將非常堅固和精確的零件放入機器中的機器製造商的製造車間的最佳工具。在我看來，製造業總體上存在一個拐點，製造商正在尋找更具彈性的供應鏈。智能手錶可以成為解決方案的一部分。

And I think this is where we see the highest growth. With a more and more solution being put into my second floor, we see more and more solutions that go into parts that are eventually part of another product. And we start to have great success. And some of our customers, for example, with binder jetting, already have part going into car. With FX 20, we see more and more parts going into aircraft. so, I think, because we focus on the manufacturing side of stuff and really enabling our customers to build resiliency into their product and into their supply chain, this is where we see the growth.

我認為這是我們看到增長最快的地方。隨著越來越多的解決方案被放入我的二樓，我們看到越來越多的解決方案進入最終成為另一個產品一部分的部分。我們開始取得巨大的成功。例如，我們的一些客戶通過粘合劑噴射，已經將零件用於汽車。通過 FX 20，我們看到越來越多的零件進入飛機。因此，我認為，因為我們專注於產品的製造方面，並真正使我們的客戶能夠在他們的產品和供應鏈中建立彈性，所以這就是我們看到增長的地方。

I would add to that, Shannon, that we mentioned it before, but we added a very strong leader in AMEA over the last maybe three quarters now. And as we have pushed out decision making and autonomy at a certain level to the edge into the region, we're seeing the results of that now three quarters later. We have very strong leadership, a very collaborative group, a very passionate group of folks in AMEA that are running that business. So, it's been a really important aspect of the growth.

Shannon，我想補充一點，我們之前提到過，但在過去的三個季度裡，我們在 AMEA 中增加了一位非常強大的領導者。隨著我們在一定程度上將決策權和自治權推向了該地區的邊緣，我們現在看到了三個季度後的結果。我們擁有非常強大的領導層、一個非常協作的團隊、一群非常熱情的 AMEA 人員來運營該業務。所以，這是增長的一個非常重要的方面。

Great. Thank you very much. And good luck, Mark.

偉大的。非常感謝。祝你好運，馬克。

Thank you, Shannon.

謝謝你，香農。

Thank you, Shannon.

謝謝你，香農。

Brian Drab, William Blair.

布萊恩·德拉布、威廉·布萊爾。

Hey, thank you. So, in the sequential gross margin improvement from fourth quarter to first quarter, what was the biggest factor? Is it the FX20 manufacturing cost coming down or supply chain or what was the single biggest factor?

嘿，謝謝你。那麼，從第四季度到第一季度的毛利率環比改善，最大的因素是什麼？是 FX20 製造成本下降還是供應鏈下降，或者最大的因素是什麼？

It's up related to the FX20, Brian, in two areas. One is the pure cost of production is coming down. And secondarily, I mentioned it briefly in one of the earlier questions, but there's fewer and fewer engineering changes. And so, there's less material that is not being used, and doesn't need to be written off as obsolete material as part of that product family. So, it's both of those, but it's -- the increase in gross margin is largely related to FX 20.

Brian，它在兩個方面與 FX20 相關。一是純粹的生產成本正在下降。其次，我在之前的一個問題中簡要提到過這一點，但工程更改越來越少。因此，未使用的材料較少，並且不需要作為該產品系列的一部分作為過時材料註銷。所以，兩者都是，但毛利率的增長很大程度上與 FX 20 有關。

Okay. I guess more just a comment rather than a question. Honestly, I'm with Greg, I'm more confused than Greg about the gross margin guidance, because the midpoint of the guidance implies 47.5% after you just had a great quarter of around 49%. I mean, so second, third, fourth quarter that you have to average 47.5% to hit the midpoint of the guidance.

好的。我想更多的是評論而不是問題。老實說，我同意格雷格的觀點，我比格雷格更困惑毛利率指導，因為指導的中點意味著 47.5%，而你剛剛經歷了 49% 左右的出色季度。我的意思是，第二、第三、第四季度你必須平均達到 47.5% 才能達到指導的中點。

I'm surprised you're not seeing a high end of the range or something like that, even because it's just confusing, given the it's the seasonally weakest quarter, you're making great improvements in the FX20 manufacturing costs, the supply chain is getting better. You're expecting volume improvement throughout the year. So that's not -- I feel like we're going to leave this call not really understanding where like the boogie man is hiding here or something.

我很驚訝你沒有看到該範圍的高端或類似的東西，即使它只是令人困惑，考慮到這是季節性最弱的季度，你在 FX20 製造成本方面取得了巨大的進步，供應鍊是越來越好。您預計全年銷量都會有所改善。所以這不是——我覺得我們在結束這次通話時並沒有真正了解布吉人藏在這里或其他什麼地方。

It just feels -- makes me feel uneasy that we don't -- it just doesn't make sense, it's leaving us a little bit of an uneasy feeling. I don't know if there's any other clarity you can provide around that, though, because we've already asked it three times.

只是感覺——讓我感到不安，但我們沒有——這沒有意義，它讓我們有一點不安的感覺。不過，我不知道您是否可以對此提供任何其他說明，因為我們已經問過三次了。

Yes. Well, I think you asked it a little bit differently, Brian, and I can appreciate that. We're not trying to be obtuse here at all. I think the -- realistically we just don't have and our visibility to get confidence in maybe raising that. But you asked it slightly differently, and maybe we can address that.

是的。好吧，我認為你的問題有點不同，布萊恩，我可以理解這一點。我們並不是想變得遲鈍。我認為——實際上，我們只是沒有能力和知名度來獲得提高這一點的信心。但你的問題略有不同，也許我們可以解決這個問題。

When we created our guidance, we looked at sort of where that midpoint was. And now after the first quarter and based on the cost cutting initiatives where we see the FX20, I would say, we still feel good within that range, but maybe we do feel better at the higher end of that range, Brian. We're not at all saying that that you should expect something, there's no bogeyman out there. There's nothing that you should expect that's going to weigh this down, but we just don't feel comfortable enough yet to raise it.

當我們創建指導時，我們著眼於中間點在哪裡。現在，在第一季度之後，基於我們看到 FX20 的成本削減舉措，我想說，我們在這個範圍內仍然感覺良好，但也許我們在該範圍的高端感覺更好，布萊恩。我們並不是說你應該期待什麼，那裡沒有妖怪。你應該期望沒有什麼會壓低這一點，但我們只是覺得還沒有足夠的勇氣提出它。

Okay. All right. I'll follow up more later. I think that's the first time I ever said, boogieman on earnings calls --

好的。好的。稍後我會進一步跟進。我想這是我第一次在財報電話會議上說“布吉曼”——

I am sure it's the first time I've ever said it.

我確信這是我第一次這麼說。

I don't think I've ever said it personally. All right. Good luck, Mark. Take care.

我想我個人從來沒有說過這樣的話。好的。祝你好運，馬克。小心。

Thank you, Brian.

謝謝你，布萊恩。

Thank you.

謝謝。

Jared Maymon, Berenberg.

賈里德·梅蒙，貝倫貝格。

Hi, guys. Thanks for taking the questions. First of all --

嗨，大家好。感謝您提出問題。首先 -

Hey, Jared.

嘿，賈里德。

Thanks. First one is just on the revenue guide. So, I guess if we kind of look at what you guys are saying here, so impressive demand from automotive, and aerospace, and defense. Shai, I think if I'm not misquoting, you said the pipeline is significantly larger than it was last year. I know you guys have also talked about some of the data insights that you have. You obviously get a lot of data back from the systems that are in the field.

謝謝。第一個只是收入指南。所以，我想如果我們看看你們在這裡所說的話，汽車、航空航天和國防的需求如此巨大。 Shai，我想如果我沒有引錯的話，你說管道比去年大得多。我知道你們也談到了一些數據見解。顯然，您從現場系統中獲得了大量數據。

So I guess just when I look at the guidance, in Q1, you guys are already fairly close to a level of revenue where, on a run rate basis, you're kind of closing in on the low end of the guidance. So I guess I'm just trying to understand is when we look at your assumptions, are you guys kind of assuming that there's an edge to recession, and there are some orders canceled or pushed out, and if that doesn't come to fruition, then maybe there's some upside or is there something you're seeing in utilization that's concerning, anything else that you can tell us there?

因此，我想當我查看第一季度的指導時，你們已經相當接近收入水平，在運行率的基礎上，你們有點接近指導的低端。所以我想我只是想了解一下，當我們查看你們的假設時，你們是否假設存在衰退的邊緣，並且有一些訂單被取消或推遲，如果這沒有實現，那麼也許有一些好處，或者您在利用率方面看到了一些令人擔憂的事情，您還有什麼可以告訴我們的嗎？

Yeah. Maybe I'll start, Jared, and Shai can add more color. But I think you hit it on the head there, the way you couch that. So when we thought about the year, earlier this year and we laid that in our March earnings call, we had baked into that revenue guidance and all of our guidance, a level of uncertainty that perhaps we weren't going to have smooth sailing throughout the year.

是的。也許我會開始，Jared，Shai 可以添加更多色彩。但我認為你的表達方式擊中了你的要害。因此，當我們考慮這一年時，今年早些時候，我們在三月份的財報電話會議上提出，我們已經考慮了收入指導和我們所有的指導，一定程度的不確定性也許我們不會一帆風順。那一年。

I think most economists and others are probably a little bit more positive today than they were two or three months ago about the rest of the year. We're feeling that as well. But again, just given that we don't have the visibility, we had a few years ago, we're being a little cautious, and suggesting that one quarter end isn't the time to sort of stray from our current talking points around this. And we'd like to see more data before we do that.

我認為大多數經濟學家和其他人今天對今年剩餘時間的看法可能比兩三個月前更加積極。我們也有這樣的感覺。但同樣，鑑於我們沒有幾年前的可見性，我們有點謹慎，並建議一個季度末不是偏離我們當前討論要點的時候這。在此之前我們希望看到更多數據。

I think exactly as Mark described that it was a good quarter. It's a good start. We feel a little bit more positive, but uncertainty in the macro still remains, in lower level, but still remains. So we want to wait another quarter before we change anything if at all.

我認為正如馬克所描述的那樣，這是一個很好的季度。這是一個好的開始。我們的感覺有點積極，但宏觀的不確定性仍然存在，處於較低水平，但仍然存在。因此，我們想再等一個季度，然後再進行任何更改（如果有的話）。

And then just following up on kind of the second part, which was the data question. I guess just kind of thinking about the second quarter, you guys, I assume, have some visibility from that backlog order book? And then, you've obviously got strong visibility from the data that you guys receive from the customers. I'm just curious anything that you're seeing on utilization data that leads you to believe that consumable purchases as a percentage of sales could be up next quarter, or anything that could provide some gross margin tailwinds, even just in the near-term, Q1 to Q2?

然後跟進第二部分，即數據問題。我想想想第二季度，我想你們從積壓訂單簿中有一些可見性？然後，您顯然從客戶那裡收到的數據中獲得了很強的可見性。我只是好奇你在利用率數據上看到的任何東西，這些數據會讓你相信下個季度消耗品採購佔銷售額的百分比可能會上升，或者任何可以提供一些毛利率順風車的東西，即使只是在短期內，Q1 到 Q2？

No, I don't think that those are necessarily related data points. You know, one thing brought up by an earlier question around the percentage of our revenue coming from consumables and services being a bit higher this quarter than perhaps the last few quarters, and that's all around the stability of that revenue stream in our business. But revenue stream doesn't necessarily have a significantly higher gross margin. As we've always said, the gross margin of our hardware as a standalone is a good gross margin. It's a healthy, sustainable gross margin business. So, I wouldn't read too much into that, Jared.

不，我認為這些不一定是相關的數據點。您知道，之前的一個問題提出了一件事，即本季度我們來自消耗品和服務的收入百分比可能比過去幾個季度要高一些，而這一切都與我們業務中收入流的穩定性有關。但收入來源並不一定具有顯著更高的毛利率。正如我們一直說的，我們的硬件作為獨立產品的毛利率是一個不錯的毛利率。這是一項健康、可持續的毛利率業務。所以，我不會對此做太多解讀，賈里德。

Loud and clear. Thanks, guys.

響亮而清晰。多謝你們。

Thank you.

謝謝。

Thank you, Jared.

謝謝你，賈里德。

Thank you. We reached end of our question-and-answer session. I'd like to turn the floor back over for any further or closing comments.

謝謝。我們的問答環節結束了。我想重新發言以徵求進一步的意見或結束意見。

Thank you very much, everyone for joining us for our first quarter results, and looking forward to see you in our next earnings.

非常感謝大家關注我們第一季度的業績，並期待在我們的下一份財報中見到您。

Thank you. That does conclude today's teleconference and webcast. You may disconnect your line at this time and have a wonderful day. We thank you for your participation today.

謝謝。今天的電話會議和網絡廣播到此結束。此時您可以斷開線路並度過美好的一天。我們感謝您今天的參與。