Proto Labs Inc (PRLB) 2024 Q3 法說會逐字稿

Greetings. Welcome to Proto Labs third quarter, 2024 earnings call. At this time, all participants are in listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad as a reminder, this conference is being recorded. It is now my pleasure to introduce Jason Frankman corporate controller. Thank you. You may begin.

問候。歡迎參加 Proto Labs 2024 年第三季財報電話會議。此時，所有參與者都處於只聽模式。正式演講後將舉行問答環節。如果有人在會議期間需要操作員協助，請按電話鍵盤上的星號零作為提醒，本次會議正在錄音。現在我很高興向大家介紹傑森‧法蘭克曼公司財務總監。謝謝。你可以開始了。

Thank you, Sherry and welcome everyone to Proto Labs. Third quarter, 2024 earnings conference call. I'm joined today by Robert Bodor, President and Chief Executive Officer and Daniel Schumacher, Chief Financial Officer.

謝謝你，Sherry，歡迎大家來到 Proto Labs。2024 年第三季財報電話會議。今天，總裁兼執行長羅伯特·博多爾 (Robert Bodor) 和財務長丹尼爾·舒馬赫 (Daniel Schumacher) 也加入了我的行列。

This morning, Proto Labs issued a press release announcing its financial results for the third quarter ended September 30, 2024. 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，Proto Labs 發布新聞稿，公佈了截至 2024 年 9 月 30 日的第三季財務業績。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提交給證券交易委員會的文件，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任何前瞻性陳述產生重大不利差異的某些風險的資訊。今天。

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 Robert Bodor.

現在我將把電話轉給羅伯特·博多爾。

Thanks Jason, good morning everyone. And thank you for joining our third quarter, 2024 earnings call.

謝謝傑森，大家早安。感謝您參加我們的 2024 年第三季財報電話會議。

We had solid execution in the quarter with results coming in above expectations.

本季我們的執行力強勁，結果超乎預期。

Despite continued dynamic challenges in the manufacturing sector, our disciplined approach and resilient business model drove solid financial and operational results year-to-date. We've grown non-GAAP earnings per share over 10%.

儘管製造業面臨持續的動態挑戰，但我們嚴謹的方法和富有彈性的業務模式今年迄今推動了穩健的財務和營運績效。我們的非 GAAP 每股收益成長了 10% 以上。

Additionally, in the third quarter, Pro labs generated its highest quarterly operating cash flow since 2020 before the acquisition of 3D hubs. This was driven in part by continued gross margin improvements in the factory and the network and is a testament to the profitability of our business model against any macro fact drop driven by our unique comprehensive fulfillment model.

此外，在第三季度，Pro labs 產生了自 2020 年收購 3D hubs 以來最高的季度營運現金流。這在一定程度上是由於工廠和網路的毛利率持續改善所推動的，這證明了我們的業務模式在面對由我們獨特的綜合履行模式驅動的任何宏觀事實下降的情況下的盈利能力。

However, our revenue growth is flat year-to-date and I believe we can accelerate our growth by continuing to invest in our priorities and execute our strategy under the realigned organizational structure.

然而，我們的收入成長今年迄今持平，我相信我們可以透過繼續投資於我們的優先事項並在重新調整的組織結構下執行我們的策略來加速我們的成長。

As a reminder, last quarter, we announced a realignment, separating regional go to market teams from a new global fulfillment organization in order to focus our regional teams on our customers to drive growth and to enable global efficiency and fulfillment.

提醒一下，上個季度，我們宣布了一項重組，將區域上市團隊與新的全球履行組織分開，以便我們的區域團隊將重點放在客戶身上，以推動成長並實現全球效率和履行。

Before expanding on the progress made across our realigned structure. I'd like to first cover our strategic priorities.

在擴展我們重新調整的結構所取得的進展之前。我想先介紹一下我們的戰略重點。

We have made substantial progress on our 2024 priorities today. As previously mentioned, increasing the number of customers using our comprehensive services across factory and network is critical to our growth strategy.

今天，我們在 2024 年優先事項上取得了實質進展。如前所述，增加使用我們跨工廠和網路的綜合服務的客戶數量對於我們的成長策略至關重要。

In the last 12 months, the number of customers using the combined offer grew 35% year over year.

在過去 12 個月中，使用合併優惠的客戶數量年增 35%。

We are still in the early stages of exposing the full combined offer to customers and there is a huge growth opportunity for prolapse.

我們仍處於向客戶展示完整組合產品的早期階段，並且存在巨大的成長機會。

Our other main priority for the year is to increase revenue per customer contact.

我們今年的另一個主要優先事項是增加每次客戶聯繫的收入。

We've made great strides here as well. Year-to-date revenue per customer contact is up 5%. Demonstrating progress on our shift toward higher value production orders.

我們在這裡也取得了長足的進步。年初至今，每次客戶聯繫帶來的收入成長了 5%。展示我們向更高價值生產訂單轉變的進展。

Let me now bring this progress to light through the following recent examples of how customers in leading industries with high requirement needs are using proto labs for production.

現在，讓我透過以下最近的範例來展示這一進展，這些範例展示了具有高要求的領先產業的客戶如何使用原型實驗室進行生產。

The first example comes from a world class clean energy customer that went to market earlier this year with a fully integrated solar and battery system for labs manufactured and assembled multiple parts in the factory to assist the customer's production.

第一個例子來自一家世界級的清潔能源客戶，該客戶於今年稍早進入市場，提供了一個完全整合的太陽能和電池系統，供實驗室製造和組裝多個零件，以協助客戶的生產。

Our world class manufacturing lead times and complete assembly help the customer ramp more efficiently than ever. That's just one way that we win in production.

我們世界一流的製造交貨時間和完整的組裝幫助客戶比以往更有效地提升產能。這只是我們在生產中獲勝的一種方式。

In another recent case, a high profile medical instrumentation customer relied on pro labs to solve a key need in their supply chain, low to mid volume injection molding production parts.

在最近的另一個案例中，一個知名醫療儀器客戶依靠專業實驗室來解決其供應鏈中的關鍵需求，即中小批量注塑生產零件。

In this customer's case, we have had a strong relationship for many years supporting early prototypes through 3D printing.

在該客戶的案例中，我們多年來一直保持著牢固的關係，透過 3D 列印支援早期原型。

Our recent expanded focus on quality and increased inspection capabilities allowed us to win production business with this customer and they were able to benefit from our quality and speed to keep their new product launch time line intact.

我們最近擴大了對品質的關注並增強了檢驗能力，使我們能夠贏得該客戶的生產業務，他們能夠從我們的品質和速度中受益，以保持新產品上市時間的完好。

These examples illustrate how our established brand and position in prototyping enable us to grow in production with our existing customers.

這些例子說明了我們在原型製作方面的既定品牌和地位如何使我們能夠與現有客戶一起實現生產成長。

I also want to highlight our recent collaboration with Harley Davidson factory racing which we detailed in a press release at the end of September.

我還想強調一下我們最近與哈雷戴維森工廠賽車的合作，我們在 9 月底的新聞稿中詳細介紹了這項合作。

Harley's engineering team utilizes proto labs, digital manufacturing services to manufacture critical components for their racing motorcycles. In a few days after a Sunday race, the team has a week to prototype test, learn iterate manufacture and replace critical parts using specialty materials all before the next race. The following weekend, this continuous improvement enabled by protolabs. Rapid manufacturing has resulted in significant year over year improvements in race times and podium damages.

哈雷的工程團隊利用原型實驗室和數位製造服務來製造賽車摩托車的關鍵零件。週日比賽結束後的幾天內，車隊有一周的時間進行原型測試、學習迭代製造並在下一場比賽之前使用特殊材料更換關鍵部件。接下來的周末，原型實驗室實現了這項持續改進。快速製造使得比賽時間和頒獎台損壞情況逐年顯著改善。

Harley Davidson factory racing has not only leveraged PROTO labs for quick turn parts but also our global network of manufacturing partners for larger and more complex parts.

哈雷戴維森工廠賽車不僅利用原型實驗室來生產快速轉動零件，還利用我們的全球製造合作夥伴網路來生產更大、更複雜的零件。

These examples demonstrate the power of proto labs to enable our customers to drive innovation, accelerate time to market and improve performance throughout the prototype to production cycle.

這些範例展示了原型實驗室的力量，使我們的客戶能夠推動創新、加快上市時間並提高整個原型到生產週期的效能。

Now, I'd like to provide an update on the realigned organizational structure with regional go to market teams now solely focused on revenue generation.

現在，我想提供有關重新調整的組織結構的最新信息，其中區域進入市場團隊現在只專注於創造收入。

The newly created global operations organization is tasked with fulfilling customer part orders by a factory and network in the most efficient manner.

新創建的全球營運組織的任務是透過工廠和網路以最有效的方式履行客戶零件訂單。

We continue to refine our portfolio fulfillment options to optimize consolidated gross margin at times. This means leveraging our own unique manufacturing capabilities through the factory and at others, it involves network partners.

我們不斷完善我們的投資組合履行選項，以有時優化綜合毛利率。這意味著透過工廠和其他地方利用我們自己獨特的製造能力，它涉及網路合作夥伴。

Since our announcement last quarter, the global organization has already begun to find ways to improve fulfillment of customer orders.

自從上個季度宣布以來，這家全球組織已經開始尋找改善客戶訂單履行的方法。

Specifically, we will leverage our global operations to better fulfill customer orders for metal additive parts and some injection molded parts in Europe accordingly. In October, we announced portfolio reshaping decisions to streamline our operational efficiency.

具體來說，我們將利用我們的全球業務來更好地滿足歐洲金屬增材零件和一些注塑零件的客戶訂單。十月，我們宣布了投資組合重塑決定，以提高營運效率。

We will close our prototype injection molding facility in Germany, and we will discontinue direct metal laser centering or DMLS manufacturing services through our factory operation in Europe.

我們將關閉我們在德國的原型注塑工廠，並且我們將停止透過我們在歐洲的工廠運作的直接金屬雷射定心或 DMLS 製造服務。

We remain fully committed to continue offering all our manufacturing services to customers across Europe including injection molding and metal 3D printing through other existing factory and network fulfillment options.

我們仍然完全致力於透過其他現有工廠和網路履行選項繼續為歐洲客戶提供所有製造服務，包括注塑和金屬 3D 列印。

The only change is in how these services are fulfilled. Consistent with the realignment to a new global fulfillment strategy.

唯一的變化是這些服務的實現方式。與新的全球履行策略的調整保持一致。

This decision was not taken lightly. And I want to take a moment to thank all impacted employees for their commitment to proto labs and to serving our customers.

這個決定並不是輕易做出的。我想花點時間感謝所有受影響的員工對原型實驗室和服務客戶的承諾。

The closure, the closure and discontinuation are in no way, a reflection of their efforts.

關閉、關閉和終止絕不是他們努力的反映。

We will provide transition services to those impacted.

我們將為受影響的人提供過渡服務。

We truly wish them all the best looking ahead. We believe these decisions will improve operational and fulfillment efficiency while bringing the full capabilities of our global operations footprint to our customers.

我們衷心祝福他們未來一切順利。我們相信這些決策將提高營運和履行效率，同時為客戶帶來我們全球營運足跡的全部能力。

We are acting with urgency to capitalize on our unique ability to meet customer needs, accelerate our growth and continue to drive industry leading profitability and cash flows.

我們正在緊急行動，利用我們獨特的能力來滿足客戶需求，加速我們的成長，並繼續推動業界領先的獲利能力和現金流。

In summary, we posted solid third quarter results while continuing to manage through ongoing manufacturing sector challenges, we remain committed to accelerating our growth as highlighted by the actions we initiated at the end of the second quarter to reorganize our internal structure.

總之，我們公佈了穩健的第三季業績，同時繼續應對製造業持續面臨的挑戰，我們仍然致力於加速成長，正如我們在第二季末採取的重組內部結構的行動所強調的那樣。

We continue to win in production as I illustrate a few examples of customers using pro labs for high requirement and use parts that continued shift will better position the company for growth and value creation. Over the long term, we are the clear profit and cash flow leader in the industry and are committed to executing on our priorities and increasing value for shareholders.

我們繼續在生產中獲勝，我舉例說明了一些客戶使用專業實驗室來滿足高要求的例子，並使用持續轉變的零件，這些零件將更好地定位公司的成長和價值創造。從長遠來看，我們是行業中明顯的利潤和現金流領導者，並致力於執行我們的優先事項並為股東增加價值。

I want to thank our entire pro labs team for the tireless efforts to best serve our customers and execute accordingly. I'll now hand it over to Daniel to cover our financials in detail. As well as our outlook for the fourth quarter.

我要感謝我們整個專業實驗室團隊的不懈努力，為我們的客戶提供最好的服務並相應地執行。現在我將把它交給丹尼爾來詳細介紹我們的財務狀況。以及我們對第四季的展望。

Yes.

是的。

Thanks, Rob.

謝謝，羅布。

Our financial results begin on page 8 of the slide presentation.

我們的財務表現從投影片簡報的第 8 頁開始。

Third quarter revenue was $125.6 million representing a 4% decline from the record revenue we achieved in the third quarter of last year.

第三季營收為 1.256 億美元，比去年第三季創紀錄的營收下降 4%。

Revenue was flat sequentially and slightly above our guidance range as order rates picked up more than anticipated through August and September turning to revenue by service on slide 12rd quarter, injection molding revenue declined 10% year over year in constant currencies. As we saw weakness in the industrial and consumer electronics verticals to drive growth and molding. We continue to invest in production capabilities and our new regional go to market teams are making production business a priority.

收入環比持平，略高於我們的指導範圍，因為 8 月和 9 月的訂單率增長超過預期，第 12 季的服務收入轉為服務收入，按固定匯率計算，注塑收入同比下降 10%。正如我們所看到的，工業和消費電子垂直領域的疲軟推動了成長和成型。我們繼續投資於生產能力，我們新的區域行銷團隊正在將生產業務作為優先事項。

CNC machining was flat year over year in constant currencies. We saw strong growth in our network C&C business.

以固定匯率計算，CNC加工較去年同期持平。我們的網路 C&C 業務強勁成長。

Third quarter, 3d printing revenue declined 1% year over year in constant currencies and sheet metal revenue declined 13% year over year, we served 22,511 customer contacts in the third quarter.

第三季度，以固定匯率計算，3D 列印收入年減 1%，鈑金收入年減 13%，第三季度我們為 22,511 名客戶聯絡人提供服務。

Revenue per customer contact declined 1% year over year. Largely due to due to the decline in injection molding revenue. Our highest value per order service as rob discussed growing revenue per customer is a long term priority of ours. Yet there may be bumpiness from quarter to quarter as we shift to more production work in that respect, year-to-date revenue per customer is up 5% over 2023 third quarter, consolidated non-GAAP gross margin increased 50 basis points. Sequentially to 46.2% with improvements in both the factory and the network factory gross margin was 49% in the third quarter. Up sequentially from 48.8% driven by continued automation improvements and excellent work by our plant management teams to align staffing with volumes portal labs. Network gross margin was 35% up from 32.8% in the second quarter. Driven by our AI powered pricing and sourcing algorithms year-to-date non-GAAP. Gross margin is 45.8% up 130 basis points compared to the first three quarters of 2023.

每次客戶聯繫的收入年減 1%。很大程度是由於注塑收入下降所致。正如羅伯所討論的那樣，我們的每訂單服務的最高價值是增加每個客戶的收入是我們的長期優先事項。然而，隨著我們在這方面轉向更多的生產工作，每季的營收可能會比 2023 年第三季成長 5%，綜合非 GAAP 毛利率成長 50 個基點。隨著工廠和網路工廠毛利率的提高，第三季毛利率達到 46.2%，達到 49%。由於持續的自動化改進以及我們工廠管理團隊在人員配置與批量門戶實驗室的協調方面所做的出色工作，這一比例較上一季度的 48.8% 有所上升。網路毛利率由第二季的 32.8% 上升至 35%。由我們的人工智慧驅動的定價和採購演算法驅動，今年迄今的非公認會計準則。毛利率為45.8%，較2023年前三季成長130個基點。

We are very pleased with our gross margin improvement. A testament to both our hard working employees and our resilient profitable business model. No other company in the digital manufacturing services space can match the margin profile of our combined factory and network model.

我們對毛利率的改善感到非常滿意。這證明了我們辛勤工作的員工和我們富有彈性的獲利商業模式。數位製造服務領域中沒有其他公司可以與我們工廠和網路相結合的模型的利潤狀況相媲美。

Third quarter non-GAAP operating expenses declined $1.8 million compared to the second quarter of 2024.

與 2024 年第二季相比，第三季非 GAAP 營運費用減少了 180 萬美元。

As a percent of revenue, non-GAAP operating expenses decreased to 35.3% from 36.8% in the prior quarter. Driven primarily by lower incentive compensation.

非 GAAP 營運費用佔收入的百分比從上一季的 36.8% 下降至 35.3%。主要是因為激勵性薪酬較低所致。

In summary, third quarter, non-GAAP earnings per share were $0.47 up $0.9 sequentially on flat revenue growth.

總而言之，第三季非 GAAP 每股盈餘為 0.47 美元，比上一季成長 0.9 美元，營收成長持平。

As Rob mentioned earlier, year-to-date adjusted EPS is up over 10% year over year on flat revenue, we will continue to invest our profits to drive future growth through our priority areas. Further enabled by the previously addressed realignment, transitioning to cash flow and balance sheet highlights on slide 11 cash flow from operations was $24.8 million. Our highest quarterly figure since 2020 prior to the acquisition of 3D hubs, as I say on every earnings call, our business model generates industry leading cash flows allowing us to invest in organic growth and return capital to shareholders. To that end. We repurchased $19 million of common shares in the third quarter.

正如 Rob 之前提到的，年初至今調整後每股收益同比增長超過 10%，收入持平，我們將繼續投資利潤，透過我們的優先領域推動未來成長。透過先前提到的調整，過渡到現金流量和資產負債表亮點（幻燈片 11 中的營運現金流量為 2,480 萬美元）進一步推動了這一點。這是自2020 年收購3D hub 之前以來最高的季度數字，正如我在每次財報電話會議上所說，我們的業務模式產生了行業領先的現金流，使我們能夠投資於有機增長並向股東返還資本。為此。我們在第三季回購了 1,900 萬美元的普通股。

On September 30th, 2024, we had $117.6 million of cash and investments on the balance sheet and zero debt.

2024 年 9 月 30 日，我們的資產負債表上有 1.176 億美元的現金和投資，債務為零。

Our outlook for the fourth quarter of 2024 is outlined on slide 13, we expect to generate revenue between $115 and $123 million.

我們對 2024 年第四季的展望如幻燈片 13 所示，我們預計將產生 115 至 1.23 億美元的收入。

This guidance incorporates order and revenue trends through the first four weeks of the fourth quarter.

該指南納入了第四季度前四週的訂單和收入趨勢。

Further, a sequential revenue decline in the fourth quarter is normal seasonality in our business due to fewer working days and lower orders during the holiday season.

此外，由於假期期間工作日減少和訂單減少，第四季度收入環比下降是我們業務的正常季節性。

We expect foreign currency to have an approximately $1 million favorable impact on revenue compared to the fourth quarter of 2023.

與 2023 年第四季相比，我們預計外幣將對收入產生約 100 萬美元的有利影響。

Moving to earnings guidance, we anticipate non-GAAP add backs in the fourth quarter to include stock based compensation expense of approximately $4.4 million. Germany closure expenses of $4 million and amortization expense of $900,000.

轉向盈利指引，我們預計第四季度的非公認會計原則加回將包括約 440 萬美元的基於股票的補償費用。德國關閉費用為 400 萬美元，攤提費用為 90 萬美元。

We currently estimate a non-GAAP effective tax rate of 20% plus or minus 50 basis points. In summary, we expect fourth quarter non-GAAP earnings per share between 28 and $0.36.

我們目前估計非 GAAP 有效稅率為 20% 加減 50 個基點。總而言之，我們預計第四季非 GAAP 每股盈餘將在 28 美元至 0.36 美元之間。

That includes our prepared remarks.

這包括我們準備好的發言。

Sherry. Please open the line for questions.

雪莉酒。請打開提問專線。

Thank you. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two. If you would like to remove your question from the queue for participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question is from Brian Drab William Blair & Company. Please proceed.

謝謝。如果您想提問，請按電話鍵盤上的星號一。確認音將表示您的線路已在問題佇列中。您可以按星二號。如果您想從使用揚聲器裝置的參與者群組中刪除您的問題，可能需要在按星號鍵之前拿起聽筒。我們的第一個問題來自布萊恩·德拉布·威廉·布萊爾公司。請繼續。

Hi, good morning, good morning.

嗨，早上好，早安。

Hey Dan. Hey rep. I just wanted to start a gross margin. So yeah, the gross margin pretty solid and, and you know, higher than it's been in a while. You know, where, where do you expect to be able to sustain that? And, and how do you like? How do you see the fourth quarter in terms of gross margin? And, and then I'm, I'm also in asking this question looking at the network, you know, which is of course, you know, somewhat lower gross margin. And it looks like growth, there're decelerated some. So I'm just wondering if you, if you're seeing maybe, you know, a convergence in the growth rates of eventually here in, in the overall business between the network and the factory and maybe you don't have this, this headwind in terms of gross margin from the faster growth in the, in the on the network side.

嘿丹。嘿代表。我只是想開始計算毛利率。所以，是的，毛利率相當穩定，而且你知道，比一段時間以來的水平還要高。你知道，你期望在哪裡、哪裡能夠維持這種狀態嗎？還有，你覺得怎麼樣？您如何看待第四季的毛利率？然後，我也在看網路問這個問題，你知道，這當然是毛利率較低的。看起來增長，但也有一些放緩。所以我只是想知道，如果你看到，你知道，網路和工廠之間的整體業務最終的成長率是否會趨同，也許你沒有這個，這個毛利率方面的逆風來自於網路方面的較快成長。

Yeah, let me, Brian, I think there's two questions in there. I think one is related to gross margin and what's about the growth from the network? I'll take the gross margin first. Yeah, what I would tell you is the gross margin percent improved, as I said, both in the factory and the network. And so, you know, in terms of the network, gross margins as we've talked about before, you know, we're experiencing gross margins that, that are above, you know, the range that we've given and, you know, we're really happy with our sourcing algorithms and, and, and how we're able to use that model to drive more profitability through that area. Now, you know, we've been in, you know, a state in which manufacturing continues to contract. You know, we're keeping our range at that 25 to 30%. Even though it's, it's, it's at 35% but I don't expect conditions to change much, you know, quarter over quarter and would expect that we're going to be above the range on network gross margins in the fourth quarter as it relates to the factory improvements. You know, we're, you know, we continue to add automation to, to a factory side of our business. And you know, we're doing a better job in terms of magic managing labor costs as that goes through. So, you know, there's improvement there as well. So I I know you kind of alluded to, is it, is there a mix in which the, you know, the network may be not growing as high as it was last year? You know, there, there may be some aspect to that, but if you look at the core, both the network gross margins and the factory gross margins are.

是的，布萊恩，我想這裡有兩個問題。我認為其中一個與毛利率有關，網路的成長又如何？我先看一下毛利率。是的，我要告訴你的是，正如我所說，工廠和網路的毛利率都有所提高。所以，你知道，就網路而言，我們之前討論過的毛利率，你知道，我們的毛利率高於我們給出的範圍，而且，你我們知道，我們對我們的採購演算法以及我們如何能夠使用該模型來提高該領域的盈利能力感到非常滿意。現在，你知道，我們一直處於製造業持續收縮的狀態。您知道，我們將範圍保持在 25% 到 30%。儘管它是，它是，它是 35%，但我預計情況不會發生太大變化，你知道，逐季度變化，並且預計我們第四季度的網絡毛利率將高於範圍，因為與工廠改進有關。你知道，我們繼續在工廠業務中增加自動化。你知道，隨著這個過程的進行，我們在神奇地管理勞動成本方面做得更好了。所以，你知道，那裡也有改進。所以我知道你有提到過，是不是，網路的成長速度可能沒有去年那麼快？你知道，可能有一些方面，但是如果你看核心的話，網路毛利率和工廠毛利率都是。

Proving.

證明。

Now, Rob, did you want to take the question on network growth?

現在，羅布，您想回答有關網路成長的問題嗎？

Yeah, certainly. Thank you, Ryan, for the question. So, yeah, yeah, I think, you know, look. So, in Q3 of last year, we saw absolutely stupendous growth in the network, right? North of 80% on, you know, on the year over year comparison, you know, we grew network 11% in, in the third quarter this year building upon that. And we did that in the context of a difficult macro. I think I read the report, we're now at 22 consecutive months of contraction in manufacturing. And so, I'm, you know, I'm pleased with it. I'm very confident that we can grow the network even higher. You know, in the future and fully expect that and that work is going to continue to be a strong growth engine for our business and we're seeing customers adopting it, right. I mean, we had 35% growth year over year in customers adopting our comprehensive offer, buying more of the network. So, I'm pleased with that and do expect it will continue to be a strong growth engine for us.

是的，當然。謝謝瑞安提出的問題。所以，是的，是的，我想，你知道，看。那麼，在去年第三季度，我們看到了網路絕對驚人的成長，對嗎？在此基礎上，今年第三季我們的網路成長了 80%，年增了 11%。我們是在困難的宏觀背景下做到這一點的。我想我讀過這份報告，我們現在製造業連續 22 個月萎縮。所以，我，你知道，我對此很滿意。我非常有信心我們可以將網路發展得更高。您知道，在未來，我們完全期望這項工作將繼續成為我們業務的強大成長引擎，我們看到客戶正在採用它，對吧。我的意思是，採用我們全面產品、購買更多網路的客戶數量年增了 35%。因此，我對此感到滿意，並希望它將繼續成為我們強大的成長引擎。

But one more thing, Brian, that was in your question that did not cover on growth margin. We do, we do expect gross margin to come down quarter over quarter as we go into the holiday season, we're a little more inefficient with our labor as we're using contractors and such and the volume ends up being a little more uneven as you go through that holiday period. So we would expect the gross margin to come down just Q3 to Q4.

但布萊恩，你的問題中還有一件事沒有涉及成長率。我們確實預計，隨著假期的到來，毛利率會逐季下降，由於我們使用承包商等，我們的勞動力效率有點低下，而且數量最終會更加不均勻當你經歷那個假期時。因此，我們預計第三季至第四季的毛利率將下降。

Right? Okay. And that's what I figured. I mean, obviously that's typical in the fourth quarter free. Yeah.

正確的？好的。這就是我的想法。我的意思是，顯然這在第四季度的免費比賽中是典型的。是的。

It's typical.

這是典型的。

Right? Rob on the blend of, you know, the idea that you're getting more people using the blend of the services. You know, what, where, what can you tell me about where that stands now in terms of like is still very early in that opportunity, right? Is it a low single digit percentage of the customer contacts that are using both.

正確的？Rob 的想法是讓更多的人使用混合服務。你知道，什麼，在哪裡，你能告訴我現在的情況嗎？使用這兩種方式的客戶聯絡人的百分比是否較低？

Services?

服務？

Yeah, we're still in early innings with this. Absolutely. So I see it as a, as a really big continued growth opportunity for our business, but I'm quite pleased to see the rate of adoption that we're getting, in terms of customers buying a comprehensive offer and also more and more customers using us for production and bringing value. You know, to them, like in the examples that I shared in the prepared remarks. But, but yeah, overall we're still in the early innings, I would consider, you know, less than 5% of customers.

是的，我們仍處於早期階段。絕對地。因此，我認為這對我們的業務來說是一個非常大的持續成長機會，但我很高興看到我們的採用率，即客戶購買全面的產品以及越來越多的客戶利用我們進行生產並創造價值。你知道，對他們來說，就像我在準備好的發言中分享的例子一樣。但是，但是，是的，總的來說，我們仍處於早期階段，我認為，你知道，只有不到 5% 的客戶。

So there's a lot of opportunity for us to penetrate and that's what our go to market teams are focused on.

因此，我們有很多滲透的機會，這就是我們的市場團隊所關注的重點。

Okay, great. And then maybe I'll just ask one more and then pass it on. You touched on it in the prepared remarks. You know, I think that the increased inspection capabilities that, you know, I've talked to you guys a lot about, and, and see the capabilities in the, in the facility and it's impressive. You know, that seems like that's a key strategic, initiative that you have and, and it's making a difference. Can you just talk a little bit more about the traction that you're getting from the high volume work? Because, I mean, you know, obviously the, you know, you've got, you know, a challenging environment that you're operating in revenue is down. And but still the revenue per customer is up and, and you know, so this is like a key lever that you're pulling, and can you just talk about the traction you're getting in, in the higher volume orders through that.

好的，太好了。然後也許我會再問一個問題，然後將其轉達。您在準備好的發言中談到了這一點。你知道，我認為檢查能力的增強，我和你們談過很多次，並且看到設施中的能力令人印象深刻。你知道，這似乎是你擁有的關鍵策略舉措，而且它正在發揮作用。您能多談談您從大批量工作中獲得的動力嗎？因為，我的意思是，你知道，顯然，你知道，你所面臨的充滿挑戰的環境導致你的收入下降。但每個客戶的收入仍然在增加，而且你知道，所以這就像你正在拉動的一個關鍵槓桿，你能談談你透過它獲得的大批量訂單所獲得的牽引力嗎？

Yeah, so, you know, we've been going through this transformation right to really drive production and to serve our customers end to end across their entire product life cycle. And of course, given that we started with prototyping that that means doing more and more production work for them. And so adding capabilities around comprehensive offerings, the ability to produce a much broader range of their part needs and also being able to do the inspection and other documentation, process control documentation and the like that they expect in production have been important additions and as we've brought that forward, our customers have been adopting it and, and we're seeing, you know, nice growth there that drives our average revenue per customer to be I think the highest in our industry. And and we're seeing continued growth in that number as more and more customers are adopting production and, and we're seeing that that grow, you know, kind of 35%. You know, in terms of the customers buying the comprehensive offer year over year last quarter. So I'm pleased with it. I think it's, it's again, we're in the early stages we're really driving to, to grow it and we're seeing strong and positive customer response. So I think we're on the right track and we're going to keep focused, right?

是的，所以，你知道，我們一直在經歷這種轉型，以真正推動生產並在整個產品生命週期中為客戶提供端到端的服務。當然，考慮到我們是從原型設計開始的，這意味著為他們做越來越多的生產工作。因此，圍繞綜合產品增加功能，生產更廣泛的零件需求的能力，以及能夠進行檢查和其他文件、製程控製文件等他們在生產中期望的功能，這些都是重要的補充，因為我們已經提出了這一點，我們的客戶一直在採用它，我們看到，你知道，那裡的良好成長推動我們每個客戶的平均收入達到我認為我們行業中最高的水平。隨著越來越多的客戶採用生產方式，我們看到這個數字持續成長，而且我們看到這個數字成長了 35%。您知道，就上個季度購買綜合報價的客戶數量而言，與去年同期相比。所以我對此很滿意。我認為，我們正處於早期階段，我們真正致力於發展它，我們看到客戶的強烈和積極的反應。所以我認為我們正走在正確的軌道上，我們將保持專注，對嗎？

Alright, great. Thank you very much.

好吧，太棒了。非常感謝。

Thank you.

謝謝。

Our next question is from James Ricchiuti with Needham and Company. Please proceed.

我們的下一個問題來自李約瑟公司的 James Ricchiuti。請繼續。

Hi, good morning. Thanks. Congrats on the on the quarter by the way and if we go back to August, you talked about slowing activity and it sounds like the pace picked up a little bit relative to your expectations. Any sense as to what drove that better showing in August, September? Was it, you know, just the overall market, some of the things that you've done. And I'm just wondering, if you've seen some of that traditional pick up in the daily rates. How has that been trending, you know, thus far in October?

嗨，早安。謝謝。順便說一句，恭喜這個季度，如果我們回到八月，您談到了活動放緩，聽起來相對於您的預期，速度有所加快。你知道是什麼推動了八月、九月的表現較好嗎？是不是，你知道，只是整個市場，你所做的一些事情。我只是想知道，您是否看到了每日費率的一些傳統回升。你知道，十月份到目前為止，這趨勢如何？

Yeah, Jim, the market that we're playing in is, is very uneven is, is what I would tell you as I talked about in the prepared remarks, we saw it in, in really June and into July. A lower order rate. And what we did see to your point is we did see a higher pick up than normal seasonality in our order rate perspective in August and September. But that was starting from a data point of July that was really lower than historical, obviously, because we, you know, we reported that that revenue was down. So we were, it was nice to see the, you know, the pick up in August to September. I would say there wasn't anything in particular that I would point out. I would just say that the general business, responded better than, than what seasonality would say from a really low June and July. And as, as I'm creating the guide again, I'm looking at, you know, four weeks of data that I have around, shipments and orders and the guide is, is showing kind of a normal decline quarter over quarter Q3 to Q4 that, that we normally see, you know.

是的，吉姆，我們正在參與的市場非常不平衡，這就是我在準備好的發言中談到的，我們在六月和七月看到了這一點。訂單率較低。對於您的觀點，我們確實看到，從 8 月和 9 月的訂單率來看，我們確實看到了比正常季節性更高的回升。但這是從 7 月的數據點開始的，顯然，該數據確實低於歷史水平，因為我們，你知道，我們報告說收入下降了。所以我們很高興看到八月到九月的回升。我想說的是，我沒有特別要指出的。我只想說，整體業務的反應比六月和七月真正低迷時的季節性反應要好。當我再次創建指南時，我正在查看我所掌握的四個星期的數據，包括發貨量和訂單，指南顯示第三季度到第三季度的季度比正常下降Q4 我們通常看到的，你知道。

I would just say I'm pleased that the go to market teams were able to get better than expected traction, right? As we kind of ended the quarter.

我只想說我很高興進入市場團隊能夠獲得比預期更好的牽引力，對吧？當我們結束這個季度時。

And a nice sequential step up in operating margins in the quarter. And, yeah, I'm wondering if there's a way for you to help us with the Global Operations Organization alignment. You know, how much of that would you attribute to it or is it, is it just mainly a function? Yeah, the revenues came in at the upper end of the range. We, we saw some nice solid improvement and growth margins as well.

本季營業利潤率連續大幅上升。是的，我想知道您是否有辦法幫助我們協調全球營運組織。你知道，你會在多大程度上歸因於它，或者它只是一個功能嗎？是的，收入處於該範圍的上限。我們也看到了一些不錯的、堅實的改進和成長利潤。

Yeah, what I would say is, again, kind to repeat the 22 aspects of that, that gross margin. One being our network growth margin, which is really about, you know how we continue to improve our, our sourcing algorithms and, and improve the pricing within that model. And the second is really on a, on a plant by plant perspective in terms of the automation that we're putting in and the tools that we're using to manage our costs in those areas in, in, in an environment in which, in which the volume can be volatile, we, we just continue to improve in those respects and, and that's what, what drove it in terms of the new organization. I'll let Rob talk to that.

是的，我想說的是，再次重複毛利率的 22 個面向。其中之一是我們的網路成長利潤，這實際上是關於我們如何繼續改進我們的採購演算法以及改進該模型中的定價。第二個實際上是從各個工廠的角度來看，我們正在投入的自動化以及我們用來管理這些領域成本的工具，在這樣的環境中，在數量可能會波動的情況下，我們只是在這些方面繼續改進，這就是新組織的動力。我會讓羅布談談這件事。

Yeah. So, I think as we look at that longer term, again, the strategy, there was a few things, one we want to be able to bring our global full capabilities, right? So, wherever we've got manufacturing capabilities around the world, we want to be able to bring those full capabilities to every customer, regardless of what region that they're in to be able to serve them fully and to the best of our ability. Secondly, that structure now allows us to also reduce areas of redundancy or parts of the parts of the operation where maybe we're not operating at healthy margins, right? We can, we can, we can we have some more degrees of freedom to, to really optimize that. And so you're seeing, you know, these recent announcements is, is one example of that. And I think over time, you'll see more and more opportunity for us to kind of optimize our operations from that standpoint to both drives, you know, healthy profitability for the business, but also make sure that we're serving our customers as fully as possible.

是的。因此，我認為，當我們著眼於更長遠的策略時，有一些事情，我們希望能夠發揮我們的全球全部能力，對嗎？因此，無論我們在世界各地擁有製造能力，我們都希望能夠將這些全部能力帶給每個客戶，無論他們位於哪個地區，以便能夠盡我們最大的能力為他們提供全面的服務。其次，這種結構現在也允許我們減少冗餘區域或部分運營，而這些部分可能是我們營運利潤率不高的地方，對嗎？我們可以，我們可以，我們可以有更多的自由度來真正優化它。所以你看到，你知道，最近的這些公告就是其中一個例子。我認為隨著時間的推移，你會看到我們有越來越多的機會從這個角度優化我們的運營，以推動業務的健康盈利，同時確保我們為客戶提供服務盡可能充分。

Thank you.

謝謝。

Our next question is from Troy Jensen with Cantor Fitzgerald. Please proceed.

我們的下一個問題來自 Troy Jensen 和 Cantor Fitzgerald。請繼續。

Hey, gentlemen, congrats on the great margins and cost controls.

嘿，先生們，恭喜您獲得了巨大的利潤和成本控制。

Here.

這裡。

Thanks for, thanks for calling.

謝謝，謝謝你的來電。

Hey, so maybe I'll first start off with the German facility update. Was this the old, was it the alpha cam acquisition mainly additive out in Germany?

嘿，也許我會先從德國設施的更新開始。這是舊的嗎？

Yeah, that's right. So these were a couple of the components of the business that we acquired from alpha four years ago.

是的，沒錯。這些是我們四年前從阿爾法收購的業務的幾個組成部分。

Alpha form. Okay. Alright. Did you do much of the Mrs in Europe or is it all is all mostly polymers? And you did metals in your in in Raleigh?

阿爾法形態。好的。好吧。你在歐洲做了很多夫人的工作嗎？你在羅利做金屬生意嗎？

Yeah. So we have we have both polymers and the metal additive manufacturing in Europe and in Ptsb Burne. And this announcement was specific to the metal with the MLS. And so we'll be phasing that out of fulfillment from, from Germany and fulfilling it instead through a combination of, of our capabilities in in North Carolina and our network partners. But.

是的。因此，我們在歐洲和 Ptsb Burne 都有聚合物和金屬積層製造。此公告專門針對 MLS 的金屬。因此，我們將逐步不再從德國履行這項義務，而是透過我們在北卡羅來納州的能力和我們的網路合作夥伴的結合來實現這一目標。但。

What I would tell you, Troy is similar to our Raleigh operation, you know DMLS is, is a good chunk of the business.

我想告訴你的是，特洛伊與我們羅利的營運類似，你知道 DMLS 是業務的重要組成部分。

But it's, it's.

但就是這樣，就是這樣。

Not the majority of the business in either.

兩者都不是大部分業務。

Location.

地點。

Okay.

好的。

All Right. I guess. Well, two questions come with that then. Can you help me out with the Opex savings? I know we probably won't see it in Q4. But you know, how much will this reduce Opex in, like either March or June quarters of next year?

好的。我猜。那麼，隨之而來的就是兩個問題。您能幫我節省營運支出嗎？我知道我們可能不會在第四季度看到它。但您知道，這會減少多少營運支出，例如明年 3 月或 6 月的季度？

This is choice. So, this is more of a savings from a gross margin perspective than it, than it is from an Opex perspective. For instance, in puts, we're still maintaining the facility. We, we are just fulfilling the DMLS differently, both through our manufacturing partners and also through Raleigh.

這是選擇。因此，從毛利率的角度來看，這更多的是節省，而不是從營運支出的角度來看。例如，在看跌期權中，我們仍在維護該設施。我們只是透過我們的製造合作夥伴以及羅利以不同的方式履行 DMLS。

Yeah, understood. I thought it was shuttering the facility, but it's just kind of rely on it. So.

是的，明白了。我以為它會關閉該設施，但它只是有點依賴它。所以。

I Get it. So, the lower facility.

我得到它。所以，設施較低。

So, we do have another facility that is the precision injection molding facility. And so that one, we, we are closing.

所以，我們確實有另一個工廠，就是精密注塑工廠。所以，我們，我們正在關閉。

Okay, cool. And I get it, you're doing this because you can get better margins. You know, running through the network, curious if there's other products kind of in your, in your portfolio. That makes sense. I guess I'm wondering primarily about sheet metal. I think that to me that's like a lower gross margin product segment that hasn't grown for you guys. And would it make sense to kind of run that through the network business also?

好吧，酷。我明白，你這樣做是因為可以獲得更好的利潤。您知道，透過網路運行，好奇您的產品組合中是否還有其他產品。這是有道理的。我想我主要想知道金屬板材。我認為對我來說，這就像一個毛利率較低的產品領域，對你們來說還沒有成長。透過網路業務來運作它是否有意義？

Yeah. So, yeah, last quarter, I think we definitely saw headwinds and sheet metal. You know, I'll remind you that's our smallest service and it got a lot of exposure to kind of the computer electronics segment, which which did see slowing last quarter and actually have seen headwinds for several quarters. Now, You know, I'll remind you that we, you know, we've taken action there, we've, we right size that business, we're monitoring it and operating it very closely. So I would say that the new global structure enables us to, I think have some degrees of freedom around this that we haven't had before. And you know, we're, we're, we're considering all these things as we go forward.

是的。所以，是的，上個季度，我認為我們確實看到了逆風和鈑金。你知道，我會提醒你，這是我們最小的服務，它對電腦電子領域有很大的影響，該領域上個季度確實出現了放緩，而且實際上已經出現了幾個季度的逆風。現在，你知道，我會提醒你，我們，你知道，我們已經在那裡採取了行動，我們已經調整了業務規模，我們正在非常密切地監控和經營它。所以我想說，新的全球結構使我們能夠在這方面擁有以前沒有的某種程度的自由。你知道，我們在前進時正在考慮所有這些事情。

Got you. Okay. So we'll keep up the good work.

明白你了。好的。因此，我們將繼續做好工作。

Sure. Thank you.

當然。謝謝。

Our next question is from Greg Palm with Craig Hallum Capital Group. Please proceed.

我們的下一個問題來自 Craig Hallum Capital Group 的 Greg Palm。請繼續。

Hey, thanks for taking the questions here. I may maybe just kind of starting with the, the out performance. I'm I'm curious if you, you know, can attribute any of the outperformance to the sort of the real realignment. It's Rob, it sounded like maybe a hint of that, maybe that was a little bit of that. And then just to be clear as it relates to the order trends, you said, you know, pick up August September, have those picked up in October and they stayed at similar rates. I'm just trying to gauge kind of the guide of where order rates are for the first four weeks versus kind of what normal seasonality is in the quarter.

嘿，感謝您在這裡提出問題。我可能只是從表演開始。我很好奇你是否可以將任何出色的表現歸因於真正的調整。我是羅布，聽起來可能有這樣的暗示，也許有那麼一點點。然後要澄清的是，因為它與訂單趨勢相關，你說，你知道，八月九月回升，十月回升，並且它們保持相似的速度。我只是想衡量前四週的訂單率與該季度正常季節性的指導情況。

Sure. Thanks for the question, Greg. Yeah, you know, I'm pleased with how we were able to end the quarter and beat our expectations. The work that our go to market teams did in terms of, you know, driving demand in the second half of the quarter was great to see. I, I do believe that as we, we focused our teams through this reorganization, focusing our go to market teams on the the customers within their region allowing them to, to specialize and focus on that. I do believe help and you know, expect to see that continue to, to help provide benefits for growth as we, as we continue to go forward with this model.

當然。謝謝你的提問，格雷格。是的，你知道，我很高興我們能夠結束本季並超越我們的預期。您知道，我們的行銷團隊在推動本季下半年的需求方面所做的工作令人欣喜。我確實相信，透過這次重組，我們將我們的團隊重點放在了我們的團隊上，將我們的市場團隊重點放在了他們所在地區的客戶上，使他們能夠專業化並專注於此。我確實相信幫助，你知道，期望看到這種幫助繼續為我們的成長帶來好處，因為我們繼續推進這種模式。

On the order rate question. No, they, they have not picked up. I would say it more that, you know, June and July were soft and then we got to a more normal kind of seasonality in, in August and September. So there, there hasn't been a pickup in, in October and that's reflected in the guide.

關於訂單率問題。不，他們，他們還沒接。我想說的是，你知道，六月和七月很疲軟，然後我們在八月和九月進入了更正常的季節性。因此，十月還沒有出現提貨情況，這在指南中有所反映。

Okay.

好的。

And you know, the the margin, you know, performance was, was impressive. I'm curious on the network side, have you changed? You know, and you know, the algorithm at all the way you're sourcing stuff or, you know, do you attribute some of the, the out performance, not just this quarter, but you know, year-to-date is that more of a byproduct of the environment we're in, you know the fact that a lot of suppliers just have more open capacity right now.

你知道，利潤率、業績令人印象深刻。我很好奇網路方面，你有改變嗎？你知道，你知道，你採購東西的所有方式的演算法，或者你知道，你是否歸因於一些表現，不僅僅是本季度，但你知道，今年迄今為止是這樣的更多的是我們所處環境的副產品，你知道很多供應商現在擁有更多的開放產能。

Yeah, I, I think you're right. So II I predict the two things. One is we launched this our pricing algorithm about a year and a half ago, which was a significant improvement and then we continue to make incremental improvements in it over that period. And I think you're seeing that play out in terms of the margin. You know, as we look at it externally, we, we believe that we are very competitive in terms of our pricing, but we are able to get, and, and we've got very strong close rates, right. So we're, we're seeing that be very competitive yet, we're able to continue to increase the, the gross margin because of the way the algorithm is working. So I'm quite pleased with that at the same time. II, I would agree with you that we're clearly seeing excess capacity in manufacturing and that is factoring in right to the, to the margins that we're able to get right now in this macro.

是的，我，我認為你是對的。所以我預測了兩件事。一是我們大約一年半前推出了我們的定價演算法，這是一個重大改進，然後我們在此期間繼續對其進行漸進式改進。我認為你會看到這種情況在利潤率上的反映。你知道，當我們從外部來看時，我們相信我們在定價方面非常有競爭力，但我們能夠獲得，並且我們有非常強勁的成交率，對吧。因此，我們看到競爭非常激烈，由於演算法的工作方式，我們能夠繼續增加毛利率。所以我同時對此感到非常滿意。II，我同意你的觀點，我們清楚地看到製造業產能過剩，這直接考慮到我們目前在這個宏觀中能夠獲得的利潤。

Yeah. Okay. Makes sense. And I guess just, just lastly is it relate? I just want to make sure I'm, I'm clear on the P&L impact of sort of the recent news around the, the, the European facility.

是的。好的。有道理。我想，最後這有關係嗎？我只是想確保我清楚有關歐洲工廠的近期新聞對損益的影響。

It, what, what is the expected P&L impact, I guess? You know, so it doesn't sound like much of an Opex, but it sounds like potentially some, you know, COGS savings are you able to, you know, quantify anything at all?

我猜，它、什麼、預期的損益影響是什麼？你知道，所以這聽起來不像是營運支出，但聽起來可能有一些，你知道，銷貨成本節省，你知道，你能量化任何東西嗎？

Yeah. No, nothing that we're going to specifically come out with in terms of specific numbers. But there, there's a, there's a precision molding part of the business, that, you know, some of that business will be able to be fulfilled through the network. And so some of it will not, so that there is, you know, some of that business that we looked at as wasn't strategic for our put to production strategy. And so, you know, there is some revenue that, that won't be there, but we should see some gross margin improvement overall. I would say it's, it's not a huge amount be because of the relative size of, of of what those businesses.

是的。不，我們不會具體給出任何具體數字。但是，有一個，有一個精密成型業務的一部分，你知道，其中一些業務將能夠透過網路來完成。所以有些業務不會，所以，你知道，我們認為有些業務對於我們的投產策略來說不是策略性的。因此，你知道，有些收入不會存在，但我們應該看到整體毛利率有所改善。我想說的是，由於這些業務的相對規模，這並不是一個巨大的數字。

Are.

是。

And I assume the revenue impact, I mean, it's more like in the hundreds of thousands of maybe business that gets lost versus millions or.

我假設收入影響，我的意思是，這更像是數十萬個可能的業務損失，而不是數百萬個業務。

Yeah, I yes, it's, it's not a, it's not a huge amount. And what I would say is you know, what that business was doing was doing much more complex molds, but it was very difficult the way they were doing that to take it to production. And so what we're shifting is doing more of those complex molds through the network using steel tools and, and, and other types so that we can then take that customer from prototype to production as a part of our strategy. So what we feel is a although although there might be a short term impact from that from the longer term is much better aligns with our strategy to move more to production over the long term.

是的，我是的，這不是一個，這不是一個很大的數字。我想說的是，你知道，該公司正在做的是製造更複雜的模具，但他們這樣做的方式很難將其投入生產。因此，我們正在轉變的是透過網路使用鋼製工具和、以及其他類型製造更多複雜的模具，這樣我們就可以將客戶從原型轉向生產，作為我們策略的一部分。因此，我們認為，儘管可能會產生短期影響，但從長遠來看，這更符合我們的策略，即長期將更多資金投入生產。

Yeah. Okay. That makes sense. All right, I will leave it there. Thanks.

是的。好的。這是有道理的。好吧，我會把它留在那裡。謝謝。

All right. Thank you.

好的。謝謝。

With no further questions. This will conclude today's conference. You may disconnect your lines at this time and thank you for your participation.

沒有進一步的問題。今天的會議到此結束。此時您可以斷開線路，感謝您的參與。