Proto Labs Inc (PRLB) 2023 Q4 法說會逐字稿

Greetings. Welcome to Protolabs' fourth-quarter and fiscal year 2023 earnings call. (Operator Instructions) Please note that this conference is being recorded.

問候。歡迎參加 Protolabs 第四季和 2023 財年財報電話會議。（操作員說明）請注意，本次會議正在錄製中。

At this time, I'll now turn the conference over to Jason Frankman, Vice President and Corporate Controller. Mr. Frankman, you may begin.

現在，我將把會議交給副總裁兼公司財務總監 Jason Frankman。弗蘭克曼先生，您可以開始了。

Thank you, Rob, and welcome, everyone, to Protolabs' fourth-quarter and full-year 2023 earnings conference call. I'm joined today by Rob Bodor, President and Chief Executive Officer; and Dan Schumacher, Chief Financial Officer.

謝謝 Rob，歡迎大家參加 Protolabs 的第四季和 2023 年全年財報電話會議。今天，總裁兼執行長 Rob Bodor 也加入了我的行列。和財務長丹·舒馬赫。

This morning, Protolabs issued a press release announcing its financial results for the fourth quarter and full year ended December 31, 2023. The release is available on the company's website. In addition, a prepared slide presentation is available online at the web address provided in our press release.

今天上午，Protolabs 發布新聞稿，公佈了截至 2023 年 12 月 31 日的第四季度和全年財務業績。該新聞稿可在該公司網站上取得。此外，還可以透過我們新聞稿中提供的網址線上取得準備好的幻燈片簡報。

Our discussion today will include statements relating to future performance and expectations that are, or may be considered, forward-looking statements and subject to many risks and uncertainties that could cause actual results to differ materially from expectations. Please refer to our earnings press release and recent SEC filings, including our annual report on Form 10-K, for information on certain risks that could cause actual outcomes to differ materially and adversely from any forward-looking statements made today.

我們今天的討論將包括與未來績效和預期相關的陳述，這些陳述是或可能被視為前瞻性陳述，並受到許多風險和不確定性的影響，可能導致實際結果與預期有重大差異。請參閱我們的收益新聞稿和最近向 SEC 提交的文件，包括我們的 10-K 表格年度報告，以了解可能導致實際結果與今天所做的任何前瞻性聲明產生重大不利差異的某些風險的資訊。

The results and guidance we will discuss include non-GAAP financial measures consistent with our past practice. Please refer to our press release and the accompanying slide presentation at the Investor Relations section of our company website for a complete reconciliation of GAAP to non-GAAP results.

我們將討論的結果和指導包括與我們過去的做法一致的非公認會計準則財務指標。請參閱我們公司網站投資者關係部分的新聞稿和隨附的幻燈片演示，以了解 GAAP 與非 GAAP 業績的完整對照。

Now, I'll turn the call over to Rob Bodor. Rob?

現在，我將把電話轉給 Rob Bodor。搶？

Thanks, Jason. Good morning, everyone, and thank you for joining our fourth-quarter and full-year 2023 earnings call. We continued to execute well on our priorities through the fourth quarter, resulting in a record year and strong financial and operational results. For the full-year 2023, we generated revenue above $500 million for the first time in Protolabs' 25-year history, while delivering improved earnings, robust cash flow, and returning substantial capital to shareholders.

謝謝，傑森。大家早安，感謝您參加我們的 2023 年第四季和全年財報電話會議。我們在第四季度繼續出色地執行我們的優先事項，取得了創紀錄的一年和強勁的財務和營運業績。2023 年全年，我們的營收在 Protolabs 25 年歷史上首次超過 5 億美元，同時實現了更高的收益、強勁的現金流，並向股東返還了大量資本。

Every day at Protolabs, we're guided by our mission, which is to empower the world's most innovative companies to bring their new ideas to market by offering the fastest and most comprehensive digital manufacturing service. We manufacture high-quality, custom, complex parts for the next generation of innovative solutions to the world's challenges.

在 Protolabs 的每一天，我們都以我們的使命為指導，即透過提供最快、最全面的數位製造服務，幫助世界上最具創新力的公司將他們的新想法推向市場。我們為應對世界挑戰的下一代創新解決方案製造高品質、客製化、複雜的零件。

I'll now share a few examples of how we enable customers to accelerate innovation across pioneering industries. First, I want to share two examples from the electric vehicle industry, which is a growing sector of our business.

現在，我將分享一些範例，說明我們如何幫助客戶加速開拓產業的創新。首先，我想分享電動車產業的兩個例子，這是我們業務中不斷成長的領域。

Protolabs been heavily involved in creating a more sustainable future through the electrification of vehicles with various customers. One prominent EV manufacturer has been a Protolabs factory customer for years, as our reliable and rapid lead times help them move fast and bridge supply chain challenges as they introduce new vehicles and options. This customer recently received their first order fulfilled through our manufacturing partner network, which we rebranded from Hubs to Protolabs Network in January.

Protolabs 與各種客戶一起積極參與透過車輛電氣化創造更永續的未來。一家著名的電動車製造商多年來一直是 Protolabs 工廠客戶，因為我們可靠且快速的交貨時間幫助他們在推出新車輛和選項時快速行動並克服供應鏈挑戰。該客戶最近收到了透過我們的製造合作夥伴網路完成的第一筆訂單，我們於 1 月將其從 Hubs 更名為 Protolabs Network。

Protolabs Network manufactured quality-injection molded prototype parts, which were beyond our factory's capabilities due to their size and complexity. As EV manufacturers have very different development and supply chain requirements than traditional auto manufacturers, the flexibility of our combined offerings provides the agility and adaptability that EV manufacturers need. We are incredibly excited to continue our work with this customer and help create a more sustainable future through emissions-free vehicles.

Protolabs Network 製造了高品質的注塑原型零件，但由於其尺寸和複雜性，這些零件超出了我們工廠的能力。由於電動車製造商的開發和供應鏈要求與傳統汽車製造商截然不同，因此我們組合產品的靈活性提供了電動車製造商所需的敏捷性和適應性。我們非常高興能夠繼續與該客戶合作，透過無排放車輛幫助創造更永續的未來。

In addition to electric cars, our advanced digital manufacturing capabilities also support innovation in the electric aerospace industry. Kinetix, a company that has developed an electric motor for commercial regional jets and narrow-body aircraft, leveraged our manufacturing precision and speed to have a new complex metal component manufactured. This part was 3D printed in our digital factory due to its complex design that maximizes surface area and improves the power to weight ratio. Our services allow Kinetix to accelerate innovation in aircraft motors.

除了電動車之外，我們先進的數位化製造能力還支持電動航空航太產業的創新。Kinetix 是一家為商用支線噴射機和窄體飛機開發電動馬達的公司，利用我們的製造精度和速度製造了一種新的複雜金屬零件。該部件是在我們的數位工廠中 3D 列印的，因為其複雜的設計可以最大化表面積並提高功率重量比。我們的服務使 Kinetix 能夠加速飛機馬達的創新。

Protolabs is also involved in rapid innovation in the commercial space exploration sector, where speed to market is critical. Our ability to quickly provide high-quality precision parts through comprehensive manufacturing services allows companies like Space Inventor to develop satellite systems and advance aerospace technology. Space Inventor turn to Protolabs in order to meet stringent project time ines.

Protolabs 也參與商業太空探索領域的快速創新，在該領域，上市速度至關重要。我們能夠透過全面的製造服務快速提供高品質的精密零件，使 Space Inventor 等公司能夠開發衛星系統並推進航空航天技術。為了滿足嚴格的專案時間要求，Space Inventor 求助於 Protolabs。

We manufacture several CNC machine components for structural elements and complex brackets in a variety of specialized materials for their satellites. Crucially, with our industry-leading turnaround times, we rapidly manufactured and delivered quality components while significantly expediting Space Inventor's design process.

我們為衛星的結構元件和複雜支架製造多種CNC工具機零件，並採用各種專用材料。至關重要的是，憑藉著業界領先的周轉時間，我們快速製造和交付了優質組件，同時顯著加快了 Space Inventor 的設計流程。

One final example to highlight today comes from the agricultural machinery industry. Protolabs recently worked with a leading equipment manufacturer that drives sustainable progress in agriculture. This customer had an unexpected delay arise at an existing supplier. When supply chain disruptions arise, Protolabs always has capacity available to ensure customers can continue to innovate. We provided quality, cost-efficient, CNC machine components through both the factory and the network. Protolabs' speed and comprehensive offering allowed this customer to meet scheduled phase gates and keep a critical program on track. These are just four short examples of the innovations we get to accelerate every day in exciting industries, which positively impact the world.

今天要強調的最後一個例子來自農業機械產業。Protolabs 最近與一家領先的設備製造商合作，推動農業永續發展。該客戶的現有供應商出現意外延誤。當供應鏈中斷時，Protolabs 始終有可用的能力來確保客戶能夠繼續創新。我們透過工廠和網路提供優質、經濟高效的CNC工具機組件。Protolabs 的速度和全面的產品使該客戶能夠滿足預定的階段要求，並使關鍵項目保持在正軌上。這些只是我們每天在令人興奮的行業中加速創新的四個簡短例子，這些創新對世界產生了積極影響。

We served over 53,000 customers in 2023 and empowered customer innovations in many different applications. I'm proud to say that, in 2023, we contributed to the greater good while successfully executing against our business priorities.

2023 年，我們為超過 53,000 家客戶提供服務，並為客戶在許多不同應用中的創新提供支援。我很自豪地說，2023 年，我們在成功執行業務優先事項的同時，也為更大的利益做出了貢獻。

2023 was a success for Protolabs. We confirmed that our strategy to combine the factory and network offers is the right one, demonstrated by 70% growth in Protolabs Network and continued customer adoption of the combined offer. In the presence of a challenging global manufacturing demand environment that experienced contraction throughout the year, our comprehensive offering enabled Protolabs to take share in our market.

2023 年對 Protolabs 來說是成功的一年。我們確認，我們將工廠和網路產品組合起來的策略是正確的，Protolabs 網路 70% 的成長以及客戶對組合產品的持續採用就證明了這一點。在全球製造需求環境充滿挑戰且全年都在萎縮的情況下，我們全面的產品使 Protolabs 能夠在我們的市場中佔據份額。

Our leadership team executed on our strategic objectives, and I'm proud of what we accomplished. As you'll recall, we entered 2023 with two priority areas: first, to narrow our focus to drive revenue growth in our two largest services, injection molding and CNC machining; and second, to improve shareholder value through increased profitability. I am pleased to report that we successfully delivered on both of those priorities.

我們的領導團隊執行了我們的策略目標，我為我們所取得的成就感到自豪。您可能還記得，進入 2023 年，我們有兩個優先領域：首先，縮小我們的重點，推動我們最大的兩項服務（注塑成型和 CNC 加工）的收入成長；其次，透過提高獲利能力來提高股東價值。我很高興地報告，我們成功地實現了這兩個優先事項。

On our fourth-quarter earnings call one year ago, we stated that we expected year-over-year growth in injection molding for the full year. We met our goal of achieving injection molding growth in 2023, driven by the value we provide as a single-source injection molded parts supplier, winning larger orders with strategic customers. Investments in digital quality, competitive pricing, and consultative design services have contributed to success with larger production-oriented orders.

在一年前的第四季財報電話會議上，我們表示預計全年註塑業務將年增。在我們作為單一來源注塑零件供應商提供的價值的推動下，我們實現了 2023 年實現注塑成長的目標，贏得了策略客戶的更大訂單。對數位品質、有競爭力的價格和諮詢設計服務的投資有助於更大的生產導向訂單的成功。

Collectively, these investments have been key to transforming our injection molding business, allowing Protolabs to serve as a true strategic partner for our customers. In addition, we continue to win more injection molding orders where our customers benefit from combined factory and network [fulfillment].

總的來說，這些投資對於我們的注塑業務轉型至關重要，使 Protolabs 能夠成為我們客戶的真正策略夥伴。此外，我們繼續贏得更多注塑訂單，我們的客戶受益於工廠和網路的結合[履行]。

In our other priority growth area, CNC machining, we successfully unlocked greater growth potential through the most complete and comprehensive offer in the industry. CNC machining revenue fulfilled by the Protolabs Network grew 80% in 2023. Customers took advantage of the combined offer, leveraging lower prices at longer lead times, improved tolerances, broader finishing options, and larger and more complex part designs through the Protolabs Network. We also invested to expand our CNC offer in the digital factory, launching scaled plating and anodizing at our best-in-class lead times. Finally, in 2023, we drove shareholder value through improved profitability and returning capital to shareholders.

在我們的另一個優先成長領域，數控加工，我們透過業內最完整、最全面的產品和服務成功釋放了更大的成長潛力。2023 年，Protolabs 網路實現的 CNC 加工收入成長了 80%。客戶充分利用了合併後的產品，透過 Protolabs 網路以更低的價格、更長的交貨時間、改進的公差、更廣泛的精加工選項以及更大、更複雜的零件設計。我們還投資擴大了數位化工廠的 CNC 產品範圍，以一流的交貨時間推出了規模化電鍍和陽極氧化服務。最後，到 2023 年，我們透過提高獲利能力和向股東返還資本來推動股東價值。

Protolabs differentiated business model generated significant profitability and cash flow throughout the year. Both factory and network gross margins improved year over year, and 2023 non-GAAP earnings per share grew 6% over 2022. We generated $73 million in cash from operations, the highest in our industry. And we paid back 97% of our free cash flow to shareholders through $44 million in share repurchases. Our strong execution on the strategic priorities set out at the beginning of 2023 provides a robust foundation for continued success in 2024.

Protolabs 的差異化業務模式全年產生了顯著的獲利能力和現金流。工廠和網路毛利率均較去年同期提高，2023 年非 GAAP 每股收益較 2022 年增長 6%。我們從營運中獲得了 7300 萬美元的現金，是業內最高的。我們透過 4,400 萬美元的股票回購向股東返還了 97% 的自由現金流。我們對 2023 年初制定的策略重點的有力執行為 2024 年的持續成功奠定了堅實的基礎。

This year, we expect to grow revenue. To do so, our 2024 priority areas are as follows. First, we will strive to increase revenue per customer by growing the number of customers using the combined factory and network offer; and second, we'll drive larger orders in all services. Success in these priority areas will lead to improved financial performance and continued shareholder value creation.

今年，我們預計收入會增加。為此，我們 2024 年的優先領域如下。首先，我們將透過使用工廠和網路結合的產品來增加客戶數量，並努力增加每位客戶的收入；其次，我們將在所有服務領域推動更大的訂單。這些優先領域的成功將改善財務表現並持續創造股東價值。

Specifically, we're focused on driving growth in users of the combined offer, which will drive revenue through both the factory and the network. This number increased substantially in 2023, and I expect significant growth in 2024. Our go-to-market teams are aligned and well-equipped to promote and sell the combined offer to existing and new customers.

具體來說，我們專注於推動合併產品的用戶成長，這將透過工廠和網路增加收入。這個數字在 2023 年大幅增加，我預計 2024 年也會大幅成長。我們的行銷團隊團結一致且裝備精良，可以向現有客戶和新客戶推廣和銷售組合產品。

Next, our emphasis on driving larger orders through both the factory and the network includes a shift from prototyping to production, which is a larger overall market. Specifically for injection molding, which has the highest revenue per customer of our four services, we will focus on satisfying the needs of the production customer. With its lower-priced, longer lead time offer, the Protolabs Network generates higher average order value than the factory, and we will expand on these larger orders through the network in 2024.

接下來，我們強調透過工廠和網路推動更大的訂單，包括從原型設計轉向生產，這是一個更大的整體市場。特別是注塑成型，在我們的四項服務中，每位客戶的收入最高，我們將專注於滿足生產客戶的需求。憑藉價格更低、交貨時間更長的優勢，Protolabs 網路產生的平均訂單價值高於工廠，我們將在 2024 年透過這個網路擴大這些更大的訂單。

These areas of emphasis highlight the importance of increasing customer share of wallet. Since our initial public offering in 2012, our primary focus was to add new customers while continuing to serve our existing customers in their times of need. While this is still important, our focus with the combined offer is to go deeper with larger strategic customers and serve more of their custom parts needs as a true prototype-to-production, single-source supplier.

這些重點領域凸顯了增加客戶錢包份額的重要性。自 2012 年首次公開募股以來，我們的主要重點是增加新客戶，同時繼續在現有客戶需要時為其提供服務。雖然這仍然很重要，但我們對合併後的產品的重點是與更大的策略客戶進行更深入的合作，並作為真正的原型到生產的單一來源供應商，滿足他們更多的客製化零件需求。

In 2024, we will also continue to invest in our most important internal resource: our people. Protolabs' employees enabled us to continue revolutionizing manufacturing and accelerating innovation. Protolabs is a great place to work and we will improve the employee experience through continued investments in areas like talent acquisition, training and development, and total rewards.

2024 年，我們也將繼續投資於我們最重要的內部資源：我們的員工。Protolabs 的員工使我們能夠繼續革新製造並加速創新。Protolabs 是一個很棒的工作場所，我們將透過在人才招募、培訓和發展以及整體獎勵等領域的持續投資來改善員工體驗。

Just a few weeks ago at our annual kickoff meeting, we introduced a fully refreshed set of company values for the first time in over 10 years to help guide us into the future. We look forward to doing more for and investing in our amazing talent at Protolabs this year and beyond.

就在幾週前的年度啟動會議上，我們十多年來首次推出了一套全新的公司價值觀，以幫助引導我們走向未來。我們期待今年及以後為 Protolabs 的優秀人才做更多的事情和投資。

We are encouraged by our strong finish to 2023 and believe we have the right strategy and priorities in place for continued success. Resilient execution in 2023 enabled us to meet our commitments and take share in the market despite headwinds from manufacturing contraction. We remain focused on becoming the strategic partner to the world's innovators, maintaining our industry-leading financial model, and increasing value for our shareholders.

我們對 2023 年的強勁表現感到鼓舞，並相信我們已經制定了正確的策略和優先事項，可以繼續取得成功。儘管面臨製造業收縮的不利影響，2023 年的彈性執行使我們能夠履行承諾並佔領市場份額。我們仍然致力於成為世界創新者的策略夥伴，保持業界領先的財務模式，並為股東增加價值。

I want to thank our more than 2,400 employees for delivering excellent 2023 results and positioning the company for success and value creation in 2024 and beyond. Thank you for your continued commitment to Protolabs.

我要感謝我們的 2,400 多名員工在 2023 年取得了出色的業績，並為公司在 2024 年及以後的成功和價值創造奠定了基礎。感謝您對 Protolabs 的持續承諾。

Dan will now provide a fourth-quarter and full-year financial information as well as our outlook for the first quarter of 2024. Dan?

Dan 現在將提供第四季度和全年的財務資訊以及我們對 2024 年第一季的展望。擔？

Thanks, Rob, and good morning, everyone. Our financial results begin on slide 13 of the slide presentation. Looking first at fourth-quarter performance, revenue of $125 million grew 7.2% year over year in constant currencies. Protolabs Network revenue was $22.5 million in the quarter, up 49% in constant currencies.

謝謝羅布，大家早安。我們的財務表現從幻燈片簡報的第 13 張投影片開始。首先看第四季的業績，以固定匯率計算，營收為 1.25 億美元，年增 7.2%。Protolabs Network 本季營收為 2,250 萬美元，以固定匯率計算成長 49%。

Looking at revenue by service on slide 15. Fourth-quarter injection molding revenue grew approximately 14% year over year in constant currencies as we saw an increase in larger parts orders. CNC machining grew 4% year over year in constant currencies, driven by continued growth through Protolabs Network.

請參閱投影片 15 中按服務劃分的收入。由於我們看到較大零件訂單的增加，以固定匯率計算，第四季度注塑收入年增約 14%。在 Protolabs Network 持續成長的推動下，以固定匯率計算，CNC 加工年增 4%。

Fourth-quarter 3D printing revenue grew 3% year over year in constant currencies. Sheet metal revenue declined 8% year over year in constant currencies. Fourth-quarter non-GAAP gross margin decreased 70 basis points sequentially to 45.3%, primarily due to lower factory volume. Fourth-quarter Protolabs Network non-GAAP gross margin was 33.6% compared to 33.7% in the third quarter. Fourth-quarter non-GAAP diluted net income per share was $0.46.

以固定匯率計算，第四季 3D 列印收入年增 3%。以固定匯率計算，鈑金收入年減 8%。第四季非 GAAP 毛利率季減 70 個基點至 45.3%，主要是因為工廠產量下降。第四季 Protolabs Network 非 GAAP 毛利率為 33.6%，第三季為 33.7%。第四季非 GAAP 攤薄後每股淨利為 0.46 美元。

Adjusted EPS came in higher than our guidance midpoint of $0.30 for several reasons. First, higher-than-expected volume. Revenue came in at the top end of our guidance range. Next, gross margin exceeded our expectations in the fourth quarter due largely to stronger-than-anticipated revenues in injection molding, one of our higher-margin services. Lastly, our fourth-quarter selling, general, and administrative expenses were below forecast, driven partially by lower incentive compensation.

基於多種原因，調整後每股收益高於我們 0.30 美元的指導中位數。首先，成交量高於預期。收入處於我們指導範圍的上限。其次，第四季的毛利率超出了我們的預期，這主要是由於注塑成型（我們利潤率較高的服務之一）的收入強於預期。最後，我們第四季的銷售、一般和管理費用低於預期，部分原因是激勵薪資下降。

Turning to cash flow and balance sheet highlights on slide 16. Cash flow from operations was $17.2 million, and we repurchased $4.9 million of common shares in the fourth quarter. On December 31, 2023, we had $110.8 million of cash and investments on our balance sheet and zero debt.

轉向投影片 16 上的現金流量和資產負債表要點。營運現金流為 1,720 萬美元，我們在第四季回購了 490 萬美元的普通股。截至 2023 年 12 月 31 日，我們的資產負債表上有 1.108 億美元的現金和投資，債務為零。

Now let's look at some of these results for the full year, which begin on slide 18. Total revenue increased 5% over 2022 in constant currencies and excluding Japan. At $504 million, total revenue surpassed $500 million for the first time in our history. Both factory and network gross margins increased year over year. However, total company GAAP gross margins were flat at 44.1% due to a higher mix of network revenue.

現在讓我們來看看全年的一些結果（從幻燈片 18 開始）。以固定匯率計算（不包括日本），總收入比 2022 年增加了 5%。總收入達 5.04 億美元，史上首次超過 5 億美元。工廠和網路毛利率均較去年同期成長。然而，由於網路收入組合較高，該公司 GAAP 總毛利率持平於 44.1%。

2023 Protolabs Network revenue of $82.6 million grew 69% year over year in constant currencies, and network gross margin for the full year was 30.6% compared to 25.8% in 2022. We served 53,464 customer contacts in 2023, and revenue per contact increased 9% over 2022. 2023 non-GAAP earnings per share increased 6% to $1.59, and we generated $83.2 million in adjusted EBITDA. Cash generated from operations in 2023 was $73.3 million, up from $62.1 million in 2022. Our business model generates industry-leading cash flows, allowing us to invest in organic growth and return capital to shareholders. During 2023, we paid 97% of our free cash flows to shareholders through share repurchases.

2023 年 Protolabs 網路營收為 8,260 萬美元，以固定匯率計算年增 69%，全年網路毛利率為 30.6%，而 2022 年為 25.8%。2023 年，我們為 53,464 個客戶聯絡人提供服務，每個聯絡人的收入比 2022 年增長了 9%。2023 年非 GAAP 每股收益增長 6%，達到 1.59 美元，調整後 EBITDA 為 8,320 萬美元。2023 年營運產生的現金為 7,330 萬美元，高於 2022 年的 6,210 萬美元。我們的商業模式產生業界領先的現金流，使我們能夠投資於有機成長並向股東返還資本。2023年，我們透過股票回購向股東支付了97%的自由現金流。

Turning now to forward-looking guidance. We will continue to guide on a quarterly basis due to the quick-turn nature of our business and continued macroeconomic uncertainty. Our guidance for the first quarter of 2024 is outlined on slide 23. We expect to generate first-quarter 2024 revenue between $120 million and $128 million. This guidance reflects a softer start to 2024 due to December and early January order levels being lower than historical periods. However, recent performance has been more in line with historical trends, and our guidance assumes that will continue through the end of March. We expect foreign currency to have between a $500,000 and $1 million favorable impact on revenue compared to the first quarter of 2023.

現在轉向前瞻性指導。由於我們業務的快速變化性質和持續的宏觀經濟不確定性，我們將繼續按季度提供指導。投影片 23 概述了我們對 2024 年第一季的指導。我們預計 2024 年第一季的營收將在 1.2 億至 1.28 億美元之間。該指引反映了由於 12 月和 1 月初的訂單水準低於歷史時期，2024 年開局較為疲軟。然而，最近的表現更符合歷史趨勢，我們的指導假設這種情況將持續到三月底。與 2023 年第一季相比，我們預計外幣將對收入產生 50 萬至 100 萬美元的有利影響。

Moving to earnings guidance. We anticipate non-GAAP add-backs in the first quarter to include stock-based compensation expense of approximately $4.5 million and amortization expense of $1 million. We currently estimate a non-GAAP effective tax rate of 21%, plus or minus 50 basis points in the first quarter. In summary, we expect first-quarter non-GAAP earnings per share between $0.26 and $0.34.

轉向盈利指引。我們預計第一季的非 GAAP 追加費用包括約 450 萬美元的股票薪資費用和 100 萬美元的攤銷費用。我們目前估計第一季的非 GAAP 有效稅率為 21%，上下浮動 50 個基點。總而言之，我們預計第一季非 GAAP 每股盈餘將在 0.26 美元至 0.34 美元之間。

That concludes our prepared remarks. Operator?

我們準備好的演講到此結束。操作員？

(Operator Instructions) Brian Drab, William Blair.

（操作員說明）Brian Drab、William Blair。

Good morning. Congratulations on a really solid year in a tough environment. So first, just -- there's no significance, really, in the terminology change, is there, from -- now you're using customer contacts, and previously [unique] product developers, engineers served. I guess it's just being more efficient with words, or is there any wealth in those terms?

早安.恭喜您在艱難的環境中度過了堅實的一年。因此，首先，術語的變化實際上沒有任何意義，從現在開始，您正在使用客戶聯絡人，以及以前[獨特的]產品開發人員、工程師的服務。我想這只是用言語更有效，或者這些術語有什麼財富嗎？

Thank you for the question. I think what we're looking to signal is that what we're seeing is while, in the past, our customers were primarily engineers and product designers, given that our business was primarily a prototyping business, you can see that a lot of our growth in '23 came from increasing production and customers using us more deeply for higher volumes and taking the prototyping business that they've been used to using us for and converting that into production, staying with us through the product lifecycle. And so we just found that naming all our customers product designers is probably not correct anymore, right? So that's why we made that change.

感謝你的提問。我認為我們想要傳達的信號是，我們所看到的是，在過去，我們的客戶主要是工程師和產品設計師，考慮到我們的業務主要是原型設計業務，你可以看到我們的許多23年的成長來自於產量的增加以及客戶更深入地使用我們來獲得更高的產量，並將他們習慣於使用我們的原型製作業務轉化為生產，並在整個產品生命週期中與我們在一起。所以我們發現為所有客戶命名為產品設計師可能不再正確了，對吧？這就是我們做出這項改變的原因。

Yeah, that makes sense, and that's a good segue into my next question is that when you look at the revenue per contact, this year is up 10%, and I guess that's mainly attributable to your success going deeper with these enterprises -- going deeper with the big customers in doing more production work. Is that a trend, I guess, that we should continue? As you're looking into 2024 now, do you expect that you can grow that revenue per contact substantially again in 2024?

是的，這是有道理的，這是我的下一個問題的一個很好的延續，當你查看每次聯繫的收入時，今年增長了10%，我想這主要歸功於你與這些企業深入合作的成功 -與大客戶深入合作，做更多的生產工作。我想我們應該繼續這種趨勢嗎？當您現在展望 2024 年時，您是否預期 2024 年每次聯繫的收入能夠再次大幅成長？

Yes, absolutely. I'm very pleased with our increase in revenue per customer in 2023. I think it's a strong indication of the success of our strategy, and I want to recognize the work of our sales and marketing teams in terms of how they've engaged with our customers to make sure that they're aware of our broader capabilities in terms of production, right? The investments that we've made into expanding our offering, both in the factory and in the network now allow us to work with our customers outside of prototyping.

是的，一點沒錯。我對 2023 年每位客戶收入的成長感到非常滿意。我認為這有力地表明了我們策略的成功，我想認可我們的銷售和行銷團隊的工作，他們如何與客戶互動，以確保他們了解我們在以下方面更廣泛的能力：生產條件，對嗎？我們在工廠和網路中擴大產品範圍的投資現在使我們能夠在原型設計之外與客戶合作。

We served 53,000 customers last year and our customers are used to partnering with us and relying on us for their prototypes. And now we can transition those prototyping work into production work, and we're starting to see good traction in that. So we will continue to report average revenue per customer and are driving to increase that number.

去年，我們為 53,000 名客戶提供了服務，我們的客戶習慣與我們合作並依賴我們提供原型。現在我們可以將這些原型製作工作轉變為生產工作，並且我們開始看到這方面的良好勢頭。因此，我們將繼續報告每位客戶的平均收入，並努力增加這個數字。

Okay, great. And then I just want to be really clear on this or make sure that I'm clear on it. You said in the guidance that you're assuming -- I think what you're saying is that you saw the typical seasonal softness in December and January, and your guidance assumes that you don't see the typical seasonal uptick in March. You're kind of assuming that that seasonal softness persists through the first quarter. Am I understanding that right?

好的，太好了。然後我只想明確這一點或確保我對此很清楚。您在指導中說，您假設 - 我認為您所說的是，您在 12 月和 1 月看到了典型的季節性疲軟，而您的指導假設您在 3 月沒有看到典型的季節性上升。您有點假設季節性疲軟會持續整個第一季。我這樣理解對嗎？

Brian, this is Dan. Thanks for the question. Let me reframe. So we saw a lower than historical levels starting, like, mid December and then that persisted into January. And so things did not pick up at the same historical time. It was later than usual, but we're happy with where the levels are now, both from an order and a quoting perspective, and the guidance assumes that that will be at those levels through the quarter.

布萊恩，這是丹。謝謝你的提問。讓我重新構想一下。因此，我們看到從 12 月中旬開始低於歷史水平，然後一直持續到 1 月。因此，事情並沒有在同一歷史時期發生。雖然比平常晚了，但從訂單和報價的角度來看，我們對現在的水平感到滿意，並且該指導假設整個季度都將保持在這些水平。

So you saw a December that was lower than typical?

那麼您看到 12 月的氣溫低於正常嗎？

Second, second half of December, and I don't know -- Brian, we're talking to customers. A lot of them work away for a longer period of time than historical, both within Europe and the US. I don't know if that had something to do with the timing of the holidays, where they were from their budgets, right, as they close the year and started the new year, but it was lower than -- we normally see a seasonal dip, but that dip was lower than what it had been in prior years.

第二，12 月下半月，我不知道——布萊恩，我們正在與客戶交談。無論是在歐洲還是在美國，他們中的許多人工作的時間都比歷史上更長。我不知道這是否與假期的時間有關，他們的預算在哪裡，對吧，當他們結束這一年並開始新的一年時，但它比我們通常看到的季節性要低下降，但下降幅度低於前幾年。

And now we're back [on track].

現在我們回來了[步入正軌]。

Okay, okay. And then just in closing for me, I just want to say, at the beginning of the year, when we were talking about growing the injection molding business for the full year, and you've just done $45 million in injection molding in the fourth quarter. I think a lot of people were skeptical. So congrats on achieving that goal. It seems like a stretch goal at the time. But I'll talk to you more later. Thank you.

好吧好吧。And then just in closing for me, I just want to say, at the beginning of the year, when we were talking about growing the injection molding business for the full year, and you've just done $45 million in injection molding in the fourth四分之一.我想很多人都持懷疑態度。祝賀您實現了這一目標。當時這似乎是個延伸目標。但我稍後會再和你談談。謝謝。

Jim Ricchiuti, Needham & Co.

吉姆‧里基烏蒂 (Jim Ricchiuti)，李約瑟公司

I just want to go back to the way Q4 started off. You talked about some slowing in activity in the early part of October and then clearly things picked up. And I'm just wondering, as you're shifting more toward production-oriented business, it sounds like you're seeing some -- almost similar trends in the current quarter. Is there any change in the linearity of the quarter with respect to what you're doing on the production side of the business?

我只想回到第四季開始時的樣子。您談到十月初活動放緩，但隨後情況明顯改善。我只是想知道，隨著您更多地轉向以生產為導向的業務，聽起來您在本季度看到了一些幾乎類似的趨勢。相對於您在業務生產方面所做的工作，本季的線性是否有任何變化？

Jim, this is Dan. Let me walk you through what we were seeing. When I talked on the last quarter call, what we were seeing was softness, specifically in CNC is what I pointed out. But in the fourth quarter, as you could see from the results, we had a really strong injection molding orders and larger orders in the quarter. As we closed out the quarter, as I was just talking to Brian about, that holiday dip was lower than it normally had been and then it was slower to kind of rebound into January.

吉姆，這是丹。讓我帶您了解我們所看到的情況。當我在上個季度的電話會議上發言時，我們看到的是疲軟，特別是我指出的 CNC 領域。但在第四季度，正如您從結果中看到的那樣，我們的注塑訂單非常強勁，並且該季度的訂單量更大。當我們結束本季時，正如我剛剛與布萊恩談論的那樣，假期下降幅度低於正常水平，然後到一月份反彈的速度較慢。

In terms of seasonality and what we're seeing, for sure, as we get some of these larger orders coming in, that can disrupt maybe what some of the seasonal trends are as we see strength in that area.

就季節性和我們所看到的情況而言，當然，當我們收到一些較大的訂單時，這可能會擾亂一些季節性趨勢，因為我們看到該領域的實力。

Let me flip it over to Rob to talk a little bit about what we're seeing in those production orders.

讓我把它轉給 Rob，談談我們在這些生產訂單中看到的情況。

Thanks, Dan. And Jim, I'm pleased with our performance in Q4 overall with the growth we saw there and in 2023 as a whole. And I'm particularly glad that we could have that kind of performance in the presence of contraction in the manufacturing sector. I think we attribute it to our ability to have done more production work with our customers across all of our services and seeing that growth.

謝謝，丹。Jim，我對我們在第四季度的整體表現以及我們在該季度和 2023 年整體上看到的成長感到滿意。我特別高興的是，在製造業出現收縮的情況下，我們仍能達到這樣的表現。我認為我們將其歸因於我們在所有服務中與客戶一起完成更多生產工作並看到這種增長的能力。

But in particular, in injection molding. I think that's really been successful for us, with more and more of our customers to be able to do those larger orders. And as I look forward, I expect that we will have more and more of those larger orders, and that will help to create more of that consistency as we look at the business going forward.

但特別是在註塑成型領域。我認為這對我們來說確實是成功的，越來越多的客戶能夠完成更大的訂單。展望未來，我預計我們將擁有越來越多的大訂單，這將有助於在我們展望未來業務時創造更多的一致性。

The other thing I'm struck by, Rob, is I feel like this is the strongest growth you've shown in the US for some time. And I assume that's what you're describing is driving to accelerating growth in the US, which frankly, over the last year or so has been -- the growth rate's been somewhat tepid and it picked up quite a bit, it seems like, in the US.

羅布，令我震驚的另一件事是，我覺得這是一段時間以來您在美國表現出的最強勁的增長。我認為這就是你所描述的推動美國經濟加速成長的因素，坦白說，在過去一年左右的時間裡，成長率一直有些不溫不火，但似乎在美國。

Yes, I'm very pleased with the fact that we're getting traction with our customers as a result of this strategy.

是的，我很高興我們透過這項策略贏得了客戶的青睞。

Which of these production -- last question for me, but when you think about what you're trying to do in terms of driving more production business through the company, through the network, where are you seeing the most traction in terms of verticals? You highlighted some use cases. I'm just thinking, in general, if any one market vertical is more receptive to this?

對我來說，最後一個問題是這些製作中的哪一個，但是當您考慮透過公司、透過網路推動更多製作業務時，您會嘗試做什麼，您在垂直領域中看到的最大吸引力在哪裡？您強調了一些用例。我只是在想，總的來說，是否有任何一個垂直市場更容易接受這一點？

In the fourth quarter, we saw strength with aerospace and with automotive kind of per some of the examples that I shared in the use cases in the prepared remarks and [medical continued to grow for us].

在第四季度，根據我在準備好的評論和用例中分享的一些範例，我們看到了航空航天和汽車領域的優勢。[我們的醫療持續成長]。

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

（操作員指示）Greg Palm，Craig-Hallum Capital。

I'll offer my congratulations as well to a good end to the year. I'm curious, as we think about the guide for Q1 and specifically sort of the bridge from Q4 to Q1, revenue at the midpoint flat to down a little bit, but profitability, whether it's EPS or applied EBITDA, down pretty substantially from Q4. So can you just maybe help us understand. Is that higher OpEx? Is that lower margins? Maybe some of the puts and takes associated with that.

我也將祝賀您今年圓滿成功。我很好奇，當我們考慮第一季的指南時，特別是從第四季度到第一季度的橋樑時，收入中點持平甚至略有下降，但盈利能力，無論是每股收益還是應用EBITDA，都比第四季大幅下降。那你能幫助我們理解嗎？營運支出更高嗎？是不是利潤率比較低？也許一些與此相關的看跌期權和拿單。

Yeah, Greg. Thanks for the question. So a couple of things are going on quarter over quarter. One, we do expect gross margin to come down quarter over quarter. There's a couple of reasons for that. First, we expect to have a higher mix of the network business in the first quarter compared to the fourth quarter. When I talked about that blip that impacted the factory business more, that's softening at the end of December, start of January, impacted the factory business more than it impacted the network business. So we're going to have a headwind from a mix perspective.

是的，格雷格。謝謝你的提問。因此，每個季度都會發生一些事情。第一，我們確實預期毛利率將逐季下降。這有幾個原因。首先，我們預期第一季的網路業務組合將比第四季更高。當我談到對工廠業務影響更大的短暫現象時，12 月底、1 月初情況有所緩解，對工廠業務的影響大於對網路業務的影響。因此，從混合角度來看，我們將面臨逆風。

Second, you mentioned it, the volume, we expect, the volume at the midpoint, to be down quarter over quarter because of that softness we saw. In addition, because the factory business is going to be a little bit softer, their margins are going to be a little bit lower from fourth to first quarter because of not having as much volume to absorb those costs.

其次，您提到過，由於我們看到的疲軟，我們預計中點的交易量將逐季下降。此外，由於工廠業務將稍微疲軟，從第四季度到第一季度，他們的利潤率將略有下降，因為沒有足夠的銷售量來吸收這些成本。

And then last, SG&A will be up quarter over quarter. We have some timing things as we started out the year. Some of those are accounting [issues], dealing with incentive comp in terms of payroll, tax accruals, vacation accruals, those type of things, as well as increased investment in the network as it grows. Those things create a headwind quarter over quarter in SG&A.

最後，SG&A 將季增。年初時我們有一些時間安排。其中一些是會計[問題]，處理工資、應計稅收、應計假期等方面的激勵補償，以及隨著網路的發展而增加的投資。這些因素在銷售、管理及管理費用（SG&A）方面造成了季度性的不利影響。

That is helpful color. And Rob, I think I heard you mention in the prepared that you do expect revenue growth on a year-over-year basis. I'm not sure if I missed it, but I didn't hear any commentary on whether you think that profitability, whether it's EPS or EBITDA, will also grow on a year-over-year basis. So do you care to comment on that?

這是有用的顏色。羅布，我想我聽到你在準備中提到你確實預計收入會同比增長。我不確定我是否錯過了，但我沒有聽到任何關於您是否認為盈利能力（無論是每股收益還是息稅折舊攤銷前利潤）也會同比增長的評論。那麼你願意對此發表評論嗎？

Sure, yeah, thank you. So yeah, we're coming off of a strong year, in which we grew despite challenging economic conditions. With contraction in the manufacturing sector, we were able to take share last year. I'm very pleased with that, and we expect to do that again in 2024?.

當然，是的，謝謝。所以，是的，我們剛剛度過了強勁的一年，儘管經濟狀況充滿挑戰，但我們仍然實現了成長。隨著製造業的收縮，我們去年能夠佔據份額。我對此感到非常滿意，我們希望在 2024 年再次做到這一點？

I'll let Dan talk -- on the revenue side, I'll let Dan respond regarding the [gift].

我會讓丹談談——在收入方面，我會讓丹就收入方面做出回應[禮物]。

When I talk about on the call in terms of how 2023 played out, we had improved the gross margin, both in the factory and in the network. From a factory perspective, we're deploying more and more automation into our factory. We have more robotics that are going on within our factory that allow us to vary our labor as volume comes through. On the network side, we also improved our margin in 2023, and that's through improvements in our AI-enabled pricing algorithms that we have within the network.

當我在電話會議上談到 2023 年的表現時，我們的工廠和網路的毛利率都有所提高。從工廠的角度來看，我們正在工廠部署越來越多的自動化設備。我們工廠內正在使用更多的機器人，使我們能夠隨著產量的增加而改變我們的勞動力。在網路方面，我們也透過改進網路中支援人工智慧的定價演算法，在 2023 年提高了利潤率。

We expect to do that in a similar basis, Greg, next year. So there's more automation we can bring into the factory. We have more productivity projects in the factory to make them more efficient. And we also expect on the network side that we're going to continue to work on those AI algorithms to continue to maximize the margin we have in this environment.

格雷格，我們預計明年也會以類似的方式做到這一點。因此，我們可以在工廠中引入更多自動化設備。我們在工廠裡有更多的生產力項目來提高他們的效率。我們也期望在網路方面，我們將繼續研究這些人工智慧演算法，以繼續最大限度地提高我們在這種環境下的利潤。

Now that being said, if you noticed last year, our overall margin, it was flat. So we do expect the network to grow more than what the factory is in 2024. And depending on how that plays out will kind of tell us if our margins are going to stay flat or not. So we're driving to offer the solution to the customer that they want in this period of time. And we feel, the business model, that is the best way for us to grow, but that may have some impact on margin as we go through 2024.

話雖這麼說，如果你注意到去年我們的整體利潤率持平。因此，我們確實預期 2024 年網路的成長速度將超過工廠的成長速度。取決於具體情況如何，我們的利潤率是否會保持不變。因此，我們正在努力為客戶提供他們在這段時間內想要的解決方案。我們認為，商業模式是我們成長的最佳方式，但這可能會對 2024 年的利潤率產生一些影響。

Okay, understood. And then lastly, as it relates to this broader strategic initiative, what kind of data or metrics are you tracking that gives you some sort of sense for the success of this combined offering and the strategy associated with that? I mean, like what's more important? Is it growing new customers? Is it growing wallet share with existing accounts? How do you view that?

好的，明白了。最後，由於它與這項更廣泛的策略計劃相關，您正在追蹤哪些數據或指標，可以讓您對這項組合產品以及與之相關的策略的成功有某種意義？我的意思是，例如什麼比較重要？是否在增加新客戶？現有帳戶的錢包份額是否在增加？您對此有何看法？

Great question. So of course, we want to grow both our new customers and our existing customers. And we've got initiatives in place, and our salespeople are focused and our marketing 2teams really on driving both of those. But what I would say from a existing customer standpoint is we've got the largest customer base in our industry. Last year, we served 53,000 customers from individual entrepreneurs to the Fortune 500. Within the Fortune 500, we served 85% of the companies in our target industries.

很好的問題。因此，我們當然希望增加新客戶和現有客戶。我們已經採取了適當的舉措，我們的銷售人員和我們的行銷團隊都專注於推動這兩個目標。但從現有客戶的角度來看，我想說的是，我們擁有業界最大的客戶群。去年，我們為從個人企業家到財富 500 強的 53,000 名客戶提供了服務。在財富 500 強中，我們服務了目標產業 85% 的公司。

And so we've got a great customer base of innovative customers. I think there's a tremendous opportunity for us to grow and expand within our existing customer base. Our customers are used to relying on us for their prototyping. They've been telling us for years that they'd love to use us more. And we just haven't had offers in the past. We've now put together between investments in the factory and the network offerings that serve them for production, that allow them to go from prototype through production through end of life, that allows them to use us for quantity one or quantity million.

因此，我們擁有龐大的創新客戶群。我認為我們有巨大的機會在現有的客戶群中成長和擴大。我們的客戶習慣於依賴我們進行原型設計。多年來，他們一直告訴我們，他們願意更多地使用我們。我們過去沒有收到過報價。我們現在已經將對工廠的投資和為他們的生產提供服務的網路產品結合在一起，使他們能夠從原型到生產直至生命週期結束，這使他們能夠使用我們的數量為一或百萬。

We haven't had that capability in the past, and I think there's just tremendous opportunity for us to grow with our existing customers. And so what we're measuring to make sure that we're on top of that, maybe talk about the number of our customers, we talked about average revenue per customer. We also talked about tracking the number of customers that are using the combined offerings, buying from both the factory and the network.

我們過去沒有這種能力，我認為我們有巨大的機會與現有客戶一起成長。因此，我們正在衡量以確保我們掌握這一點，也許談論我們的客戶數量，我們談論每個客戶的平均收入。我們還討論了追蹤使用組合產品、從工廠和網路購買的客戶數量。

And there's a number of other things kind of internally that we look at to make sure that we're making this progress, but I'm quite pleased with the progress that we showed last year along these lines.

我們內部也考慮了許多其他事情，以確保我們取得進展，但我對我們去年在這些方面取得的進展感到非常滿意。

At some point, some of those KPIs associated with a number of customers using either or both of the services? Is that something that you might start disclosing?

在某些時候，其中一些 KPI 與使用其中一種或兩種服務的許多客戶相關？您可能會開始披露這一點嗎？

Yes, Greg, the answer is yes. I think in this industry, in this space, being able to serve a customer more, get more of their wallet share of our existing customers is going to generate a more profitable business long term rather than having to continue to chase a new customer every year. Of course, we're still going to grow new customers. We're doing that, but for sure, in the future, we will share some of these metrics.

是的，格雷格，答案是肯定的。我認為，在這個行業、這個領域，能夠為客戶提供更多服務，從現有客戶中獲得更多錢包份額，從長遠來看將產生更有利可圖的業務，而不是每年繼續追逐新客戶。當然，我們仍然會發展新客戶。我們正在這樣做，但可以肯定的是，將來我們將分享其中一些指標。

Thank you. We've reached the end of our question-and-answer session. This will also conclude today's conference. You may disconnect your lines at this time. We thank you for your participation, and have a wonderful day.

謝謝。我們的問答環節已經結束。今天的會議也將結束。此時您可以斷開線路。我們感謝您的參與，祝您有美好的一天。