Markforged Holding Corp (MKFG) 2023 Q3 法說會逐字稿

Greetings and welcome to the Markforged third-quarter 2023 earnings conference call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow formal presentation. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Austin Bohlig, Director of Investor Relations. Thank you. You may begin.

歡迎參加 Markforged 2023 年第三季財報電話會議。此時，所有參與者都處於只聽模式。正式演講之後將進行簡短的問答環節。 （操作員指示）謹此提醒，本次會議正在錄製中。現在我很高興向您介紹主持人，投資者關係總監 Austin Bohlig。謝謝。你可以開始了。

Good afternoon. I'm Austin Bohlig, Director of Investor Relations of Markforged Holding Corporation. Welcome to our third-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 acting CFO, Assaf Zipori.

午安.我是 Austin Bohlig，Markforged Holding Corporation 投資者關係總監。歡迎參加我們的 2023 年第三季業績電話會議。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執行長 Shai Terem；以及我們的代理財務長 Assaf Zipori。

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. 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, November 13, 2023, and are subject to material risks and uncertainties that could cause actual results to differ materially.

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。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 11 月 13 日）管理階層的觀點，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。

Markforged disclaims any intention or obligation, except as required by law, to update or revise forward-looking statements. Also, during the course of today's call, we refer to certain non-GAAP financial measures. There's 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. I'll now turn the call over to Shai Terem, President and CEO of Markforged.

除法律要求外，Markforged 不承擔任何更新或修改前瞻性聲明的意圖或義務。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。現在我將把電話轉給 Markforged 總裁兼執行長 Shai Terem。

Thank you, Austin, and thank you, everyone, for joining us on our Q3 2023 earnings call. For the medium to long-term opportunity for Markforged to help manufacturers reduce costs and strengthen supply chain resiliency remains intact. We were disappointed with our third-quarter results with top-line of $20 million. The current macroeconomic uncertainty and increasing interest rates and the material impact on our ability to close deals in the last two weeks of the quarter.

謝謝 Austin，也謝謝大家參加我們的 2023 年第三季財報電話會議。從中長期來看，Markforged 幫助製造商降低成本和增強供應鏈彈性的機會仍然完好無損。我們對第三季 2000 萬美元的業績感到失望。當前宏觀經濟的不確定性和不斷上升的利率以及對我們在本季度最後兩週完成交易的能力的重大影響。

As we shared on our October 23 press release, we have also updated our full-year 2023 outlook to reflect our current view. At our Investor Day in mid-September, we still believe our 2023 targets are attainable, but macroeconomic headwinds dramatically accelerated in the final weeks of the quarter. And we saw delays in several large deals that we had expected to close. As we progress into the fourth quarter, we believe that the persistent high cost of capital and uncertainty in the macro-environment will continue through strict capital investment in the short-term.

正如我們在 10 月 23 日的新聞稿中分享的那樣，我們還更新了 2023 年全年展望，以反映我們當前的觀點。在 9 月中旬的投資者日上，我們仍然相信 2023 年的目標是可以實現的，但宏觀經濟逆風在本季的最後幾週急劇加速。我們預計完成的幾筆大型交易出現了延誤。隨著進入第四季度，我們認為短期內透過嚴格的資本投資，資本成本持續高企和宏觀環境的不確定性仍將持續。

In light of these headwinds, we remain laser focused on our path to profitability and have accelerated cost reduction efforts to align our operating expenses to match anticipated near-term demand. These efforts supported our ability to reduce our cash burn in the third quarter to $10 million and end of quarter cash balance of $126 million. Today, in addition, we are announcing a restructuring initiative that we believe will improve operating efficiencies and strengthen our balance sheet resiliency even further, but without compromising on our ability to innovate and grow to profitability. This initiative, coupled with other cost reduction efforts, is expected to deliver operating cost savings of approximately $9 million to $12 million in 2024, driven by an approximate 10% headcount reduction.

鑑於這些不利因素，我們仍然專注於獲利之路，並加快了降低成本的努力，以調整我們的營運費用，以滿足預期的近期需求。這些努力支持我們將第三季的現金消耗減少至 1,000 萬美元，季末現金餘額減少至 1.26 億美元。此外，今天我們還宣布了一項重組計劃，我們相信該計劃將提高營運效率並進一步增強我們的資產負債表彈性，但不會損害我們的創新和盈利能力。該措施與其他降低成本的措施相結合，預計在員工人數減少約 10% 的推動下，到 2024 年將節省約 900 萬至 1,200 萬美元的營運成本。

With that, we remain confident in our long-term growth trajectory. The fundamentals, driving manufacturers to reduce cost and seek more resilient and flexible supply chain remain. And as we heard directly from our customers Ford, Vestas Wind System, [is at] Triumph Aerospace, Musashi Auto Parts, Daimler, and Automation [R&D] at our Investor Day, the Digital Forge provides a powerful platform for achieving these goals. This strengthens our conviction that as macroeconomic uncertainty clears, Markforged is well positioned for strong growth.

因此，我們對長期成長軌跡仍然充滿信心。推動製造商降低成本並尋求更具彈性和靈活性的供應鏈的基本面仍然存在。正如我們在投資者日直接從客戶福特、維斯塔斯風能係統、凱旋航空航太、武藏汽車零件、戴姆勒和自動化[研發]那裡聽到的那樣，Digital Forge 為實現這些目標提供了一個強大的平台。這增強了我們的信念，隨著宏觀經濟不確定性的消除，Markforged 已做好強勁成長的準備。

To expand on one of these examples, Musashi Auto Parts, a leading manufacturer of a differential gear and assemblies, has gained substantial benefit from its investment in the Digital Forge. Musashi began by printing gripper and other industrial end effectors using our Mark Two and Metal X printers in their Michigan facility. Over 80% cost savings and significant operational efficiencies achieved, led Musashi to expand their macro deployments to three additional facilities across the globe. Musashi now uses Digital Forge for over 40 different manufacturing applications. With over 34 facilities worldwide, were excited about further expansion opportunities with Musashi.

為了擴展其中一個範例，差速器齒輪和組件的領先製造商 Musashi Auto Parts 從其對 Digital Forge 的投資中獲得了巨大利益。 Musashi 首先在其密西根工廠使用我們的 Mark Two 和 Metal X 印表機列印夾具和其他工業末端執行器。節省了 80% 以上的成本並實現了顯著的營運效率，促使 Musashi 將其宏觀部署擴展到全球另外三個設施。 Musashi 現在將 Digital Forge 用於 40 多種不同的製造應用。 Musashi 在全球擁有超過 34 家工廠，我們對進一步擴張的機會感到興奮。

In Q3, we achieved another critical milestone towards the future of distributed manufacturing, with the launch of the Digital Source. Digital Source is an on-demand parts platform for the licensing and 3D printing of manufacturer-certified parts when and where they are needed, without the cost or hassle of physical inventory. When our focus in 2024 is building out the platform, we believe the opportunity for high margin revenue stream will be a growth catalyst in the years to come. As we are already seeing early signs of excitement from customers will help us expand Markforged solution into their own customer base.

在第三季度，隨著數位來源的推出，我們實現了分散式製造未來的另一個重要里程碑。 Digital Source 是一個按需零件平台，可在需要的時間和地點對製造商認證的零件進行授權和 3D 列印，而無需產生實體庫存的成本或麻煩。當我們 2024 年的重點是建立平台時，我們相信高利潤收入流的機會將成為未來幾年的成長催化劑。我們已經看到客戶興奮的早期跡象，這將幫助我們將 Markforged 解決方案擴展到他們自己的客戶群。

One of our early digital stores and doctors is VMS, especially the manufacture of complex sandblasting machine with over 200 installations worldwide. Each of the net machines features 60 printed components, which are typically replaced every three to four months. When the machines are running at full capacity, with each resource, VMS customers can print replacement components on-site the moment a failure or a wear is detected, minimizing downtime, as well as shipping and inventory costs.

我們早期的數位商店和醫生之一是 VMS，特別是複雜噴砂機的製造商，在全球擁有 200 多台安裝。每台網路機器都有 60 個印刷組件，通常每三到四個月更換一次。當機器以每種資源滿載運作時，VMS 客戶可以在偵測到故障或磨損時現場列印替換組件，從而最大限度地減少停機時間以及運輸和庫存成本。

Continuing our track record of innovation, Markforged announced two new product last week at Formnext. The FX10 is Markforge's next generation composite 3D printer for the factory floor. Building on the precision and reliability of the X7, but nearly twice as large and twice as fast as its predecessor. FX10 is built to supercharge manufacturing productivity and profitability.

繼續我們的創新記錄，Markforged 上週在 Formnext 上宣布了兩款新產品。 FX10 是 Markforge 的下一代工廠車間複合 3D 列印機。以 X7 的精度和可靠性為基礎，但其尺寸和速度幾乎是其前身的兩倍。 FX10 旨在提高製造生產力和獲利能力。

The excitement in our booth around this product was beyond words. We are already building a backlog of orders, as the balance between value and price to our customers is extremely attractive, even under challenging cost of capital times. In addition, we also announced Vega, an ultra high performance carbon fiber filled PEKK material for 3D printing aerospace part. Vega is highly compatible with carbon fiber reinforcements, unlocking aluminum strength part for aerospace applications and high value tooling.

我們的展位上對該產品的興奮之情難以言表。我們已經積壓了訂單，因為即使在資本成本充滿挑戰的情況下，價值和價格之間的平衡對我們的客戶也極具吸引力。此外，我們還推出了Vega，一種用於3D列印航空航太零件的超高性能碳纖維填充PEKK材料。 Vega 與碳纖維增強材料高度相容，為航空應用和高價值模具解鎖鋁強度部件。

Our aerospace FX20 customers visiting Formnext, were highly impressed and eagerly waiting for first shipments. Both these new innovations are complementary to the Digital Forge and further increased our addressable market by helping our customers solve more application and deliver strong accurate parts on the factory floor. So under current macroeconomics environment, it's challenging, especially after coming back from Formnext next week. We strongly believe that the FX10, FX20, the PX100, and the Digital Source, on top of our legacy solution, are meeting critical industry needs to strengthen manufacturing resiliency and supply chain.

我們的航空航太 FX20 客戶造訪 Formnext，留下了深刻的印象，並熱切地等待首批發貨。這兩項新的創新都是對 Digital Forge 的補充，並透過幫助我們的客戶解決更多應用並在工廠車間提供強大而精確的零件，進一步擴大了我們的潛在市場。所以在當前的宏觀經濟環境下，這是具有挑戰性的，尤其是下週從Formnext回來之後。我們堅信，在我們的傳統解決方案之上，FX10、FX20、PX100 和數位來源能夠滿足增強製造彈性和供應鏈的關鍵產業需求。

There is clearly pent-up demand, which is waiting for new platforms to start shipping. I am very proud of the one team effort of the last few years to reach these critical innovation milestones that will position the company for long-term success. With strong cost controls in place and a sharp focus on achieving profitability, we believe our future is bright. With that, I'll now turn the call over to Assaf Zipori, our Acting CFO. who will offer more details on our financial performance and guidance for the remainder of the year.

顯然存在著被壓抑的需求，正在等待新平台開始出貨。我對過去幾年的團隊努力達到這些關鍵的創新里程碑感到非常自豪，這將使公司長期成功。憑藉強大的成本控制和對實現盈利的高度重視，我們相信我們的未來是光明的。現在，我將把電話轉給我們的代理財務長 Assaf Zipori。誰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資訊。

Thank you, Shai, and good evening, everyone. I will be covering our financial results for the third 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 to our investor relations website includes our GAAP and non-GAAP reconciliation to assist with my commentary. So let's begin.

謝謝你，Shai，大家晚上好。我將介紹我們 2023 年第三季的財務業績。請注意，我的評論反映了我們的非 GAAP 業績和前景。供您參考，今天下午早些時候在我們的投資者關係網站上發布的收益新聞稿包括我們的 GAAP 和非 GAAP 調整表，以協助我的評論。那麼就讓我們開始吧。

In line with our preliminary announced results, revenue for Q3 was $20.1 million compared to $25.2 million in the third quarter of 2022. The revenue decline was driven by stronger than expected macroeconomic headwinds that delayed orders towards the end of the quarter. Revenue for the first nine months of 2023 was $69.6 million compared to $71.3 million in the first nine months of 2022. In spite of the lower sales volume, gross profit margin for the quarter was 46.9% compared to 49.2% in the third quarter of 2022.

根據我們初步公佈的業績，第三季的營收為 2,010 萬美元，而 2022 年第三季的營收為 2,520 萬美元。營收下降的原因是宏觀經濟逆風強於預期，導致訂單延後到季末。 2023 年前9 個月的收入為6,960 萬美元，而2022 年前9 個月的收入為7,130 萬美元。儘管銷量較低，但該季度的毛利率為46.9%，而2022 年第三季為49.2 % 。

Gross margins were also impacted by the continued ramp of the FX20 production, which is expected to continue until May 2024. Our operating expenses were $24.9 million for the third quarter of 2023, down from $28.5 million in the third quarter of 2022. This improvement in operating expenses is a result of our continued efforts to reduce operating expenses in our commitment to incremental efficiency. The net loss for the third quarter of 2023 was $13.8 million or a loss of $0.07 per share, based on our weighted average shares outstanding for the quarter of $197.4 million.

毛利率也受到 FX20 產量持續增加的影響，預計這種情況將持續到 2024 年 5 月。2023 年第三季我們的營運費用為 2,490 萬美元，低於 2022 年第三季的 2,850 萬美元。營運費用是我們在致力於提高效率的過程中不斷努力降低營運費用的結果。根據我們該季度已發行股票的加權平均數 1.974 億美元計算，2023 年第三季的淨虧損為 1,380 萬美元，即每股虧損 0.07 美元。

Our net cash used in operating activities in the first nine months of 2023 decreased by $25.3 million, or approximately 39%, from the first nine months of 2022. Our cash, cash equivalents, and short-term investments were $126 million as of September 30, 2023, down from $136 million at the close of second quarter 2023. We expect our cash utilization to continue to decrease with time as a result of higher revenue, continued focus on OpEx management, and working capital efficiency. Now moving on to our guidance.

2023 年前9 個月，我們用於經營活動的淨現金比2022 年前9 個月減少了2,530 萬美元，約 39%。截至9 月30 日，我們的現金、現金等價物和短期投資為1.26億美元，低於 2023 年第二季末的 1.36 億美元。我們預計，由於收入增加、持續專注於營運支出管理和營運資本效率，我們的現金利用率將隨著時間的推移繼續下降。現在繼續我們的指導。

The uncertain macro environment and relatively high cost of capital have weight on our customers' purchasing behavior more than expected. Therefore, we are maintaining our revised revenue guidance of $90 million to $95 million. We expect gross margins to be within the range of 47% to 48%, still within the range of our previous guidance. As previously communicated, we are committed to balance between revenue and expenses.

不確定的宏觀環境和相對較高的資金成本對顧客購買行為的影響超出預期。因此，我們維持修訂後的 9,000 萬至 9,500 萬美元收入指引。我們預計毛利率將在 47% 至 48% 之間，仍在我們先前的指導範圍內。正如之前所傳達的，我們致力於實現收入和支出之間的平衡。

As such, we have recently announced the restructuring initiative, that, together with other cost reduction efforts, are expected to generate annualized OpEx cost reduction of $9 million to $12 million in 2024, based on our 2023 OpEx range of approximately $104 million. Furthermore, we remain committed to continuously optimize our cash utilization. Our operating loss for the year is expected to be within the range of $59 million to $61 million, including a one-time restructuring cost of approximately $900,000. EPS loss per share is expected to be between $0.26 and $0.28, including restructuring costs.

因此，我們最近宣布了重組計劃，與其他成本削減措施一起，預計到 2024 年，基於我們 2023 年約 1.04 億美元的營運支出範圍，年化營運支出成本將減少 900 萬至 1,200 萬美元。此外，我們仍然致力於不斷優化現金利用率。我們今年的營運虧損預計在 5,900 萬美元至 6,100 萬美元之間，其中包括約 90 萬美元的一次性重組成本。預計每股 EPS 虧損在 0.26 美元至 0.28 美元之間，其中包括重組成本。

With our recent product introductions and the excitement that it has generated, we are confident in our ability to grow and increase our market share in 2024 and beyond. Furthermore, we are confident that the cost reduction measures, which we have taken together with our growth trajectory, keep us on a path for profitability. That concludes our prepared remarks today. Let's please open up the call for questions.

憑藉我們最近推出的產品及其所帶來的興奮，我們對 2024 年及以後發展和增加市場份額的能力充滿信心。此外，我們相信，我們採取的成本削減措施以及我們的成長軌跡將使我們走上獲利之路。我們今天準備好的演講到此結束。讓我們打開提問電話。

(Operator Instructions) Greg Palm, Craig Hallum Capital Group.

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

Yeah, thanks for taking the questions. Just starting off with what you saw end of quarter. I'm just curious if you can give us a little bit more color on whether: A, you were relying on several large orders that didn't close, whether it was certain end customers or end verticals that you saw the most weakness? Maybe just a little bit more detail on what drove the end of quarter weakness. And just to be clear, did some of those orders that get delayed have those closed here in Q4 or are those still getting pushed?

是的，感謝您提出問題。從您在季度末看到的情況開始。我只是好奇您能否給我們更多資訊：A，您是否依賴幾個未完成的大訂單，您認為最弱點是否是某些最終客戶或最終垂直行業？也許只是更詳細地說明導致季度末疲軟的原因。需要明確的是，一些被延遲的訂單是否已在第四季度關閉，或者仍然被推遲？

Thank you, Greg. And yes, so as we indicated previously, some of the large deals that we're expecting to close in the end of the quarter unfortunately got delayed, mainly due to the macro uncertainty, I would say, and mainly in APAC and the Americas, as you can see from the detailed performances. A fair question, some of them already closed in Q4, but a bigger portion of them got delayed into 2024. And it was fairly large deals that were fully funded and we were expecting them to close, based on the knowledge that we had.

謝謝你，格雷格。是的，正如我們之前指出的，我們預計在本季度末完成的一些大型交易不幸地被推遲了，這主要是由於宏觀不確定性，我想說，主要是在亞太地區和美洲，從詳細的表演中可以看出。這是一個公平的問題，其中一些交易已經在第四季度完成，但其中很大一部分被推遲到2024 年。這是相當大的交易，資金充足，根據我們所掌握的知識，我們預計它們會關閉。

But the owners and the decision makers decided in the last second to pull out due to the sentiment and the uncertainty on the macro-environment, and they ask to wait until the next quarter or even 2024. With that, as you can see, we came back from Formnext, which was fairly successful. So we have started to build the confidence back.

但由於市場情緒和宏觀環境的不確定性，業主和決策者在最後一秒決定退出，他們要求等到下個季度甚至2024年。這樣，正如你所看到的，我們從 Formnext 回來，相當成功。所以我們已經開始重建信心。

Got it. Okay. And one item that maybe stood out to us was consumables. I wouldn't think of consumables as having nearly the same kind of magnitude, volatility and that was a lot lower, both on a year-over-year and a sequential basis. So what drove that? How much of that was based on the other phenomenon you saw? And going forward, just in terms of usage rates of the installed base out there, are you seeing a significant difference in recent months versus where we've been trending before?

知道了。好的。對我們來說最突出的一項可能是消耗品。我不認為消費品幾乎具有相同的幅度和波動性，而且無論是同比還是環比都要低得多。那麼是什麼推動了這一點呢？其中有多少是基於你看到的其他現象？展望未來，就已安裝基礎的使用率而言，您是否發現最近幾個月與我們先前的趨勢有顯著差異？

Thank you. I think there are two points around that. The first one, is usually when our customers buy from us printers, they immediately also buy materials. So when there is significant drop in the purchasing of printers, with that. comes a point in time of reduction of the purchases of materials.

謝謝。我認為有兩點。第一個，通常當我們的客戶向我們購買印表機時，他們也會立即購買材料。因此，當印表機的購買量大幅下降時，就會出現這種情況。到了減少材料採購的時間點。

The second, which I think for your question, we do not see a drop in utilization. And but as you know, we are fairly still a small company. So at point of time, could move a few pallets right or left with our channel partners that you will sell the materials through them. And as such, it was a point of time, we already see a recovery right after the end of the quarter and utilization stay in the right direction. So we don't have any concerns on that front.

第二個，我認為對於你的問題，我們沒有看到利用率下降。但如您所知，我們仍然是一家小公司。因此，在某個時間點，可以與我們的通路合作夥伴向右或向左移動一些托盤，您將透過他們銷售材料。因此，在這個時間點上，我們已經看到季度末後的復甦，並且利用率保持在正確的方向。所以我們在這方面沒有任何擔憂。

Understood. I will get back in the queue. Best of luck. Thanks.

明白了。我會回到隊列中。祝你好運。謝謝。

Thank you, Greg.

謝謝你，格雷格。

Jacob Stephan, Lake Street Capital Markets.

雅各史蒂芬，湖街資本市場。

Hey, guys, thanks for taking my questions. Maybe I'll just touch on the restructuring initiative a little bit. Could you help us think about what percentage of the $9 million to $12 million comes out of the model and how that lays out over 2024?

嘿，夥計們，謝謝你回答我的問題。也許我會稍微談談重組計劃。您能否幫助我們思考 900 萬至 1200 萬美元中來自該模型的百分比以及 2024 年的情況如何？

So yes, thanks for the question. So we are looking at a reduction of, say, $9 million to $12 million from a run rate of $104 million approximately in OpEx. The reduction is going to be across across the board and we're across all departments, without any compromise on our ability to grow and innovate. So it's across all departments, and we are well positioned positions and encouraged with the outlook for 2024.

所以是的，謝謝你的提問。因此，我們正在考慮將營運支出從大約 1.04 億美元的運行費用減少 900 萬美元到 1200 萬美元。裁員將是全面性的，涉及所有部門，而不會影響我們的發展和創新能力。所有部門都如此，我們處於有利位置，並對 2024 年的前景感到鼓舞。

Okay. And maybe I could just get a better sense on the quarterly, I guess, impact of that? I mean, are we thinking Q1 as we see the majority of the $9 million to $12 million in Q2, Q3, Q4 steps down together with, I guess (multiple speakers) --.

好的。也許我可以更了解其對季度的影響？我的意思是，我們是否在考慮第一季度，因為我們看到第二季度、第三季度、第四季度的900 萬至1200 萬美元中的大部分都會下降，我猜（多個發言者） ——。

Yeah, of course. When you look at the numbers, so basically the bottom line is that the OpEx run rate will be between $92 million and $95 million annually, it should kick in in Q1 2024. And obviously, there's a certain level of fluctuation between the Q's, given the events that we have in sales marketing and so on. But the annual run rate would be $92 million and $95 million.

嗯，當然咯。當你查看這些數字時，基本上底線是每年的營運支出將在9,200 萬美元到9,500 萬美元之間，它應該在2024 年第一季開始生效。顯然，考慮到Q 之間存在一定程度的波動，我們在銷售行銷等方面的活動。但年運行費將分別為 9,200 萬美元和 9,500 萬美元。

Okay, got it. And I just wanted to touch on the services. Revenue was up 33% year-over -year. Could you just touch on the strength? What you're seeing in the services business results? Is that Blacksmith? Is that Digital Forge?

好，知道了。我只想談談服務。營收年增 33%。能簡單談談力量嗎？您在服務業務表現中看到了什麼？那是鐵匠嗎？那是數位熔爐嗎？

Yeah. Jacob, if you remember about a year ago, we talked about changing our service model to subscription and adding to it the tools around software with simulation and the automated inspection. And we're starting to see the fruits of it. So we are starting to see higher level of attach rate right out of the box when people are buying the printers, but also a higher level of renewal rate. And I think that's worth turning to kick in. So we did some revisions to this more than a year ago we announced it and now we're starting to see the fruits of it.

是的。雅各布，如果你還記得大約一年前，我們討論過將我們的服務模式改為訂閱，並向其添加圍繞軟體的工具，包括模擬和自動檢查。我們開始看到它的成果。因此，當人們購買印表機時，我們開始看到更高水準的開箱即用率，而且也看到更高水準的續訂率。我認為這值得介入。所以我們在一年前宣布了這一點，對此進行了一些修改，現在我們開始看到它的成果。

Okay. I think that's all the questions I had. Best of luck going forward here, guys. Great seeing you last week.

好的。我想這就是我的所有問題。祝大家好運。很高興上週見到你。

Thank you, Jacob.

謝謝你，雅各。

(Operator Instructions) Brian Drab, William Blair.

（操作員說明）Brian Drab、William Blair。

Hi, guys, good evening. This is Blake Keating on for Brian. If I could just ask, can you guys provide some additional details about the FX10 backlog you guys mentioned in the prepared remarks? Are these existing customers looking to upgrade from the X7 or add to the fleet? Or is it new customers who are beginning to use 3D printing?

嗨，夥計們，晚上好。這是布萊恩的布萊克·基廷。我想問一下，你們能否提供一些有關你們在準備好的評論中提到的 FX10 積壓訂單的更多詳細資訊？這些現有客戶是否希望從 X7 升級或加入車隊？還是開始使用3D列印的新客戶？

Thank you for your question. It's actually both. We are just coming back from Formnext, and if you can see videos of the event, it was very, very impressive and encouraging. Right after we launched it, we had hundreds of potential prospects reaching out into the printer trying to touch it in. So we currently see backlog of existing customers, but also new customers, which are really interested in this solution.

謝謝你的問題。實際上兩者都是。我們剛從 Formnext 回來，如果您能看到活動的視頻，那將是非常非常令人印象深刻和鼓舞人心的。在我們推出它之後，就有數百名潛在客戶接觸到印表機，試圖接觸它。因此，我們目前看到積壓的現有客戶，但也有新客戶，他們對此解決方案非常感興趣。

We're already looking on dozens of orders. What's really nice about this printer that it's building up on the legacy X7, the reliability of the solution, but also the price points. So the price point here is around $100,000, which is a very good, sweet spot to our channel partners, but also to our customers, especially in times like this with a very strict cost of capital environment. A sub $100,000 solution can easily top the bar, for example, much better than the FX20 in times like this.

我們已經在尋找數十個訂單。這款印表機的真正優點在於它是在傳統 X7 的基礎上構建的、解決方案的可靠性以及價格點。因此，這裡的價格點約為 10 萬美元，這對我們的通路合作夥伴和我們的客戶來說都是一個非常好的甜蜜點，特別是在資本成本環境非常嚴格的時期。例如，低於 100,000 美元的解決方案可以輕鬆超越標準，在這樣的時期比 FX20 好得多。

Understood. Appreciate the color. And then just building on that, do you anticipate the launch of the Digital Source that could cannibalize some of these new demand from the new customers that you're seeing for newer products like the FX10, PX100, or FX 20?

明白了。欣賞顏色。在此基礎上，您是否預期數位來源的推出可能會蠶食新客戶對 FX10、PX100 或 FX 20 等新產品的新需求？

It's actually exactly the opposite. The Digital Source was launched successfully. And actually last weekend, Formnext, we officially started the GA. We see a lot of traction from the big OEMs that are looking into these solution. And what we've seen for the first step is that these big OEMs are pushing our solution into their supply chain or into their customer base. So what we actually see in reality is an increased adoption of our Digital Source of the printers and materials and software and not the cannibalization of it. It's actually very impressive.

事實上恰恰相反。數位源成功上線。事實上，上週末，Formnext，我們正式開始了 GA。我們看到大型原始設備製造商對這些解決方案的關注度很高。我們首先看到的是，這些大型 OEM 正在將我們的解決方案推入他們的供應鏈或客戶群。因此，我們在現實中實際看到的是印表機、材料和軟體的數位來源越來越多地被採用，而不是對其進行蠶食。這實際上非常令人印象深刻。

Understood. And then just lastly, I know you guys have mentioned that you expect, you're encouraged by what you're seeing so far for 2024. But can you provide additional detail on how we should think about growth in 2024? You touched how you're going to balance revenue growth and profitability but is there any more focus with the macro where it is on profitability or how should we think about that?

明白了。最後，我知道你們已經提到，你們對 2024 年迄今所看到的情況感到鼓舞。但是你們能否提供更多細節，說明我們應該如何考慮 2024 年的成長？您談到如何平衡收入成長和獲利能力，但宏觀上是否還有更多關注獲利能力的問題，或者我們應該如何考慮這一點？

Yes. So I would say the macro uncertainties are still out there and we cannot control them. With that, especially coming out of Formnext, we are coming with a very strong product portfolio, which is complementary to our legacy product portfolio. And we really believe that we can still grow even in tough environment, and especially, because some of the new products are in the right the price point. So we believe we're in the right direction, but the final will be decided by the macroenvironment and how it clears up.

是的。所以我想說，宏觀不確定性仍然存在，我們無法控制。有了這個，特別是從 Formnext 出來的，我們將擁有非常強大的產品組合，這是我們傳統產品組合的補充。我們堅信，即使在艱難的環境中，我們仍然可以成長，特別是因為一些新產品的價格合適。所以我們相信我們的方向是正確的，但最終的結果將取決於宏觀環境及其如何改善。

Got it. I'll pass it along. Thank you.

知道了。我會把它傳遞下去。謝謝。

Thank you.

謝謝。

Thank you. Ladies and gentlemen, there are no further questions at this time. I'll hand floor back to management for closing remarks.

謝謝。女士們、先生們，目前沒有其他問題了。我將把發言交還給管理階層以供結束語。

Thank you very much, everyone, for joining us on our call and looking forward to seeing you in our next quarter. Thank you.

非常感謝大家參加我們的電話會議，並期待在下個季度見到您。謝謝。

Thank you. This concludes today's conference. All parties may disconnect. Have a good day.

謝謝。今天的會議到此結束。所有各方都可以斷開連接。祝你有美好的一天。