Q1 2025 Stratasys Ltd Earnings Call
At this time, all participants are in a listen only mode. [inaudible]
Speaker Change: A brief question and answer session will follow the formal presentation. Should anyone 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 your host, Yonah Lloyd, Chief Communications Officer and VP of IR. Thank you, you may begin.
Speaker Change: Good morning everyone and thank you for joining us to discuss our 2025 first quarter financial results. On the call with us today are our CEO , Dr. Yoav Zeif and our CFO , Eitan Zamir.
Speaker Change: I would like to remind you that access to today's call including the slide presentation is available online at the web address provided in our press release.
Speaker Change: In addition, a replay of today's call including access to the slide presentation will also be available and can be accessed through the investor relations section of our website.
Speaker Change: Please note that some of the information provided during our discussion today will consist of forward-looking statements including without limitation.
Speaker Change: Those regarding our expectations as to our future revenue, gross margin, operating expenses, taxes, and other future financial performance, and our expectations for our business outlook.
Speaker Change: All statements that speak to future performance, events, expectations or results are forward-looking statements Actually results are trends could differ materially from our forecast
Speaker Change: for risks that could cause actual results to be materially different. From those set forth in forward-looking statements, please refer to the risk factors discussed or referenced in Stratasys annual report on Form 20F for the 2024 year.
Speaker Change: Please also refer to that annual report, along with our reports filed with or furnished to the SEC throughout 2025 for additional operational and financial details.
Speaker Change: Reports on Form 6K that are furnished to the SEC on a quarterly basis and throughout the year provide updated current information regarding the company's operating results and material development concerning our company.
Speaker Change: Stratasys assumes no obligation to update any four-looking statements or information which speak as of their respective dates.
Speaker Change: As in previous quarters, today's call will include Gap and non-GAAP financial measures. The non-GAAP financial measures should be read in combination with our Gap metrics to evaluate our performance. non-GAAP to Gap reconciliations are provided in tables in our slight presentation and today's press release.
Speaker Change: I will now turn the call over to our Chief Executive Officer, Dr. Yoav Zeif, Yoav.
Yoav Zeif: Thank you, Yonah. Good morning, everyone. And thank you for joining us.
Yoav Zeif: Our solid first quarter performance continues to demonstrate the resilience of our recurring revenue model.
Yoav Zeif: and the high utilization rates across our customer base. Our results reinforce our confidence in expanded implementation for years to come.
Yoav Zeif: The robust demand for consumables, which grew 7% sequentially, underscores the enduring value placed in Stratasys' additive manufacturing systems.
Our Strategic Positioning remains excellent.
Yoav Zeif: as we continue benefiting from our ongoing investment in R&D that support the introduction of innovative products.
Yoav Zeif: materials and software solutions to serve our customers and enhance our presence as a digital manufacturing leader.
Yoav Zeif: Our long-term value creation strategy focuses on high growth and uses driven by powerful mega trends.
Yoav Zeif: These include supply chain improvement through onshoreing, next generation mobility, sustainability initiatives, and the continuous pursuit of manufacturing efficiency and cost reduction.
Yoav Zeif: through a disciplined market-focused approach. Centered around the most compelling use cases, while paying close attention to our margin profile, we have established the foundation for Stratasys' profitable growth.
Yoav Zeif: To help drive our strategy, early in the second quarter, we closed on fortissimo capitals $120 million strategic investment in the company, bringing out cash and equivalence to approximately 270 million, we know that.
Yoav Zeif: This significant transaction brought you Valkoid, Fertissim of Founding and managing partner with over three decades of financial experience to our board of
Speaker Change: He's innovative approach as created tremendous value for his firm and the companies in which they have invested and we look forward to your vast contribution to our board.
Speaker Change: Before diving into the quarter, let me touch on how we are thinking about the ongoing
Speaker Change: Last quote, we shared that from our perspective, we are relatively exempt from this issue.
Speaker Change: Most of our printers and materials are produced in the US or in Israel.
We are monitoring the news cycle closely.
Speaker Change: And at this time, we continue to expect no material revenue impact in terms of our costs.
Speaker Change: We are reviewing various mitigation scenarios that can be quickly deployed if needed. As a reminder, additive manufacturing is ideally suited as a solution for high tariff environment.
Speaker Change: Terry's can actually serve as a long-term positive business catalyst, and we look forward to increase activity with our customers as we demonstrate these benefits.
Speaker Change: Turning to new technology offerings and customer success, beginning with hardware. We launched the new 800 Plus and advanced aeratography 3D printer that builds on the success of the new 800.
Speaker Change: with significant performance announcements for industries that benefit from large, accurate, high-fidelity parts.
Speaker Change: The new model incorporates technology that boosts printing speed by up to 50% while maintaining precision.
Enhanced really ability features and real-time environmental
Speaker Change: Monitoring, Maximize Uptime, and Consistency at Fastest Scan Speed without compromising quality Together with our Grabcat Print Build Preparations software
Complementary Post-Processing Solution
Speaker Change: and the new improved portfolio of materials, the new 800-plus provides a complete SLA ecosystem that streamlines production workflows for applications in automotive, aerospace, wind tunnel testing, prototyping and tooling.
Speaker Change: We launched this exciting new technology alongside Rivian Automotive, an end-core customer at the rapid trade show in April .
Speaker Change: In Aerospace, a reason an exciting example of manufacturing flight-rate parts is boom supersonic.
Speaker Change: Where our FDM portfolio is helping to build the next generation of supersonic commercial jets.
Speaker Change: There XB1 jet broke the sound barrier during the first quarter and we were proud that over 350 end-use parts on the aircraft were made using our systems.
Speaker Change: Our FBM also printed over 750 drillguides for use during aircraft assembly, as well as the darling mount on the chase plane to support light streaming of the event.
Speaker Change: As an example of how editing manufacturing as a clear economic advantage
Speaker Change: The flight controlled, test-ring tooling for the XB1 resulted in a 90% saving on cost and lead time as compared to conventionally produced alternative.
Speaker Change: and we are proud to mark the 10th anniversary of our Photos 450 LC.
Speaker Change: with the launch of the Gentry model, an upgraded factory floor ready solution designed for high tooling and production application.
Speaker Change: With 92% of units installed over the past decade, feeling new, the photos 450NC and its reputation
Speaker Change: The new Gentry builds on that legacy, with bundled hardened components for advanced materials like nylon 12 CF
We've included Grabcat Prince Pro for great precision and productivity.
Additional upgrades.
Speaker Change: In the coming months, include support for glass-filled, fire-resistant materials and features to enable faster build-time, expanding the system's application range for jigs, fixtures and other factory-ready parts.
Speaker Change: The 42450MC Gen3 reinforces Stratasys' commitment to delivering reliable, connected solutions that help manufacturers boost output, reduce cost, and streamline operations.
On the material side, we reached another significant milestone.
Speaker Change: in our effort to scale and accelerate adoption of qualified additive manufacturing.
Speaker Change: With the launch of two new validated and terror materials for the Stratasys F900, these were developed through rigorous qualification collaboration with industry leaders.
Speaker Change: including note of rumen, Boeing and BAE systems and several defense organizations including U.S. Navy and Air Force.
Speaker Change: This advanced industrial solution materials meets stringent requirements for mission critical
and Hader High Regulated Industries.
Speaker Change: The materials offer exceptional resistance to extreme temperatures and house chemicals, enabling manufacturers.
Speaker Change: to confidently adopt 3D printing with proven reliability, reduced qualification cost, and consistent performance.
Speaker Change: across production sites, empowering faster innovation and deployment of additive manufacturing for qualified and use applications throughout enterprise operations.
Speaker Change: We also introduced Polyjet F1, an advanced material that addresses a key point of feedback from our customers, providing polyjet with functional prototyping capabilities to expand the amount of use cases.
The material combines exceptional designs prestige [inaudible]
Speaker Change: with functional strength for our high-end platforms, enabling engineers and designers to create prototypes and use paths without compromising between aesthetic and durability.
Speaker Change: Staff One allows engineers to move from concept to functional testing faster.
Speaker Change: and it integrates seamlessly with other porridge materials to enable hybrid models that combine different mechanical properties or colors within a single part. Now, over to Eitan to review our financial items.
Speaker Change: Thank you, Yoav, and good morning, everyone. This quarter demonstrated the continued resilience of our operating model, a key differentiator relative to competitors in our sector.
Eitan Zamir: as well as the best actions of our team as we delivered significant epic savings and bottom-line profits despite pressure on revenues.
Eitan Zamir: These solid results were thanks in part to a quarter of sequential growth in consumable cells.
Eitan Zamir: and full run rate contributions from the cost control initiatives we began in the middle of last year.
Now, let me get into the details of our numbers.
Eitan Zamir: For the first quarter, consolidated revenue was 136 million compared to 144.1 million in the same quarter in 2024. As customers continue to defer major capital spending until market uncertainty subsides.
Eitan Zamir: Produced revenue in the first quarter was 93.8 million compared to 99.2 million in the same period last year. Service revenue was 42.2 million compared to 44.9 million in the same period last year.
Eitan Zamir: Within Product Revenue, System Revenue was 31.2 million compared to the 32.9 million reproduced
Eitan Zamir: Consumable Revenue was $62.6 million compared to $66.3 million in the same period last year. Note that on a sequential quarterly basis, consumable revenue was approximately 7%.
Eitan Zamir: Utilization rates of the system we have sold remain strong and we expect consumables revenue to grow on a full year-over-year basis in 2025 relative to 2024.
Eitan Zamir: With in-service revenue, customer support revenue was 30 million, compared to 31.4 million in the same period last year.
Eitan Zamir: Now turning to Gross margins, Gap Gross margin was 44.3% for the quota, compared to 44.4% for the
Eitan Zamir: Not Gap Grossmargin was 48.3% for the quarter, compared to 48.6% in the same period last year. The motive declined versus the prior period was driven in parts by the lower revenue.
Eitan Zamir: GEP operating expenses were 72.6 million, 53.4% of revenue compared to 88.4 million or 61.3% of revenue during the same period last year.
Eitan Zamir: The reduction in expenses was due to our cost savings initiative.
Eitan Zamir: and by not having the expenses associated with the strategic review process that we conducted in 2024, among other items.
Non-Get Operating Expenses, where 62.6 million
46% of revenue
Eitan Zamir: Compared to 71.2 million or 49.4% of revenue during the same period last year, you primarily to lower employee related costs, including benefits from the cost saving initiative announced later on last year.
Eitan Zamir: Regarding our consolidated earnings, Gip operating loss for the quarter was 12.4 million compared to a loss of 24.5 million for the same period last year.
Eitan Zamir: non-GAAP operating income for the quota was 3 million, compared to an operating loss of 1.2 million for the same period last year, reflecting the impact of reduced operating expenses due to our cost-cutting efforts.
Eitan Zamir: Get net loss for the quarter was 13.1 million, or 18 cents per diluted share.
Eitan Zamir: compared to a net loss of 26 million or 37 cents per diluted chair for the
non-GAAP net income for the quarter was 2.9 million.
Eitan Zamir: or four cents per diluted chair, compared to a net loss of 1.7 million or two cents per diluted chair in the same period last year.
Eitan Zamir: Ajusted EBDA was 8.2 million for the quarter, compared to 4.1 million in the same period last year.
Thank you for watching!
Eitan Zamir: From a cash flow perspective, we generated 4.5 million in cash from operating activities compared to 7.3 million in the same period last year.
Eitan Zamir: We ended the quota with 150.1 million in cash, cash equivalent and short-term deposits, relatively flat as compared to year-end 2024.
Our balance sheet remains strong, currently at 270 million
Eitan Zamir: and know that after being bolstered by the 120 million in cash contributed by Fortissimo investment in Stratasys in early April , strengthening our ability to act on value-enhancing opportunities.
Now, let me turn to our Outlook for 2025.
Eitan Zamir: We are reiterating our expectations that full-year 2025 revenues will range between 570 to 585 million. With revenues growing sequentially through the year.
Eitan Zamir: We are also reaffirming non-get gross margins, operating expenses, operating margins, and adjusted EBDA, and capital expenditures.
Eitan Zamir: and we expect to see year-over-year growth in both operating and free cash flow.
Please refer to the press release for additional details.
We are raising our earnings per share outlook.
Eitan Zamir: As a result of the votefimo investment, our share count as of April 8 went up by approximately 11.65 million shares.
Eitan Zamir: Our outlook assumes the fortissimo investment will generate interest income throughout the entire year of 2025.
Eitan Zamir: and that this interest income will more than offset the dilution to our earnings from the higher share count.
Eitan Zamir: As a result, we are raising our earnings forecast and follow up.
Eitan Zamir: We now expect gap net loss to be in a range of minus 64 to minus 49 million.
Eitan Zamir: An improvement as compared to the previous range of minus 68 to minus 53 million dollars.
Eitan Zamir: We also now expect Gap LPS to improve to a range of minus 80 cents to minus 61 cents per the Luta chair, as compared to the previous range of minus 93 to minus 72 cents.
Eitan Zamir: We are also increasing our non-GAAP net income guidance to a new range of 24 to 30 million dollars, as compared to the previous range of 20 to 26 million dollars.
Eitan Zamir: and EPA's to a range of 30 to 37 cents per diluted chair, as compared to the previous range of 28 to 35 cents per diluted chair.
Yoav Zeif: With that, let me turn the call back over to Yoav for closing remarks.
Yoav?
Thank you, Eitan.
Eitan Zamir: I would stop to 2025 establishes a solid foundation for the year-end.
Stratasys is exceptionally well positioned.
Thanks to our strategic first management initiatives.
Continuous Product Innovation Innovation.
and growing integration into our customers' manufacturing world-fraud.
Eitan Zamir: Our strong financial position, bolstered by the fortissimo investment, expands our capability to pursue both organic growth opportunities and strategic acquisitions.
that align with our vision for a creative expansion.
We have refined our strategic focus.
Eitan Zamir: to target the most promising applications while enhancing our customer engagement approach to improve go-to-market strategies and comprehensive user education programs.
Eitan Zamir: Our unwavering commitment to increasing profitability while maintaining financial mutual discipline and ensures we are optimising for both near-term performance and long-term
Eitan Zamir: With our strong portfolio across systems, consumable and software, Stratasys is ideally positioned to capitalize on market momentum when capital investment cycle accelerate.
We did. Let's open it up for questions. Operator?
Eitan Zamir: Thank you. We will now be conducting a question and answer session.
Eitan Zamir: Please limit yourselves to one question and one immediate follow-up.
Eitan Zamir: 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 hand and set before pressing the star keys.
One moment, please, while we poll for questions.
Speaker Change: The first question is from Brian Drab from William Blair. Please go ahead.
Brian Drab: Hey, good morning. Thanks for taking my questions. Great to see you guys are off to the solid start to the year.
Thank you.
Speaker Change: Yeah, I first just wanted to, there's just a point of clarification on the tariffs. When you're importing a system,
Speaker Change: from Israel to the United States. How does the tariff affect you and do you pay the tariff on the cost of goods maybe because you're shipping it from Israel to your headquarters and then...
Thank you.
Thank you, Brian . Yes, exciting times, we are experiencing now. So...
Speaker Change: Just addressing directly your question, when we are importing from Israel to the US, we pay on the cost of goods sold and currently the new tariff is 10% for the next 90 days, at least who knows.
Okay, that's not my theory. Not my theory, I took my own.
Speaker Change: Okay, understood. That was my understanding, and I just wanted to check. And then second question is you know what type of
Speaker Change: The economic situation are you embedding into the forecast for the second half? There are a lot of expectations for challenges in North America and the United States and Europe for challenging macro-environment.
Speaker Change: and it feels from the call like you're fairly optimistic about the second half of the year. So I want to understand how you're viewing the situation.
Speaker Change: Thank you, Brian . So, you know, based on the uncertainty or considering the uncertainty in the market, we created, iterated our guidance, our numbers, that baked.
Speaker Change: and based on the viability that we currently see, and they baked second half that is slightly higher in revenue terms than the first half.
Speaker Change: to secure in the short term this year the bottom line to bring the 8% EBDA and to make sure of course if the market opens earlier and recover earlier that will just increase and improve the situation that we focused on securing EBDA.
Speaker Change: And of course, we still, as we mentioned in the previous calls, we do see a sequential increase of requirements including Q2 and then second half stronger than the first half.
Yeah, and it's clear that there is uncertainty here.
But we still stick to this ...
Speaker Change: Focust that will be slight increase both over the quarter, also slight increase in Q2 and you know it's like a personal wish that
Sam.
Speaker Change: Time in the future, things will stabilize and there will be a new equilibrium and the nice thing here that we are working internally
Speaker Change: on the cost structure and on the assets that we have, like the relationship with our customers, the position in aerospace and design, key use cases, making sure we are delivering the best service. So when manufacturing come back to normal?
Speaker Change: We are in the best position to capture profitable growth going forward.
[inaudible]
Alright, thanks for taking my questions.
[inaudible]
Speaker Change: The next question is from Greg Palm from Craig Hallam. Let's go ahead.
Speaker Change: Yeah, thanks. This is Danny Eggerich on for Greg. They appreciate you taking the questions and congrats on the good results.
Thank you, Danny.
Speaker Change: I think let's hit on consumables here. Obviously, as you mentioned, kind of a nice bounce back quarter after after a little bit of softness last quarter. Maybe it's a bit more color on what you kind of soft throughout the quarter in terms of activity utilization, how that trended through the quarter and what you've seen so far through through April with the customers.
Sure. Thank you, then.
Danny, so ever.
Speaker Change: As you mentioned, we're back and I believe that in the last call we discussed this as well. We're back to the 62-63 million level and we do see it, we see it higher utilization as we progress into manufacturing more and more and that's something that we've discussed in the previous calls as well and we still expect 2025 full-year consumable to be higher than the 2024 full-year consumable revenue. So we do see the demand.
Speaker Change: And, you know, a quarter by quarter, of course we will continue to deliver. And again, it's more and more shifting to manufacturing that has higher utilization and more consumer of course.
Okay, thanks. Maybe now we'll just…
Speaker Change: Thank you for the question. And we know industry continues to consolidate. How industry is continuing? And the result is a shakeout and consolidation. You know all the examples.
Thank you.
Speaker Change: The primarily expected use of the capital fund for decimo is inorganic growth.
Speaker Change: and as we said also last quarter, we had the privilege over the last few years
to learn the industry in depth through several processes.
Speaker Change: So, we really understand the environment, we understand the compares and we have a good understanding of the industry and the potential value creation.
Speaker Change: And now A2 is the market prices of the assets currently that exist in the market. Those are great opportunities and we are in the driver's seat.
and practically to capture this value creation.
Speaker Change: because we work so hard and our teams work so hard to create a stable financially
which puts us in a good position going forward. We'll do, of course.
Speaker Change: Only move that makes sense and are completely aligned with our strategy, which is focusing on proven use cases to penetrate manufacturing's poor solutions.
Speaker Change: Bill, Bill recurring revenues model. We believe in recurring revenues in bacteria and so forth. And then all the consolidation has to align with our strategy.
Speaker Change: And we are keeping for stability in mind whatever we will do. This is a priority.
Okay, that all sounds good. I'll pass it along along.
Speaker Change: The next question is from Troy Jensen from Cantor Fitzgerald. Please go ahead.
Troy Jensen: Hey, gentlemen, congrats on the same profitability here. Maybe to that point, to start with you, a ton of just R&D spending down a lot sequentially and kind of will below where it's been all of last years is he just talked about what was cut primarily and then is this the kind of run rate you think on R&D going forward.
Eitan Zamir: So, first of all, it's not a cut, it was focus and if you go back to the air...
Troy Jensen: 2nd quarter at 2024 earning call when we announced the restructuring plan.
Ability to discuss this in thorough
We continue to invest in R&D.
Troy Jensen: We, I think I mentioned that before, if you look on our R&D as a percentage of revenue, we continue to deliver, to keep it at the level that is very similar to the multi-year R&D percentage. So, this is in fact...
Troy Jensen: and proving the continuous investment. It's just more focused, it's not cut and that's consistent with our plan.
Okay.
Speaker Change: All right, and then maybe for Yoav here, just I want to talk just kind of generically about the low end and I know you guys got your subsidiary with ultimaker, maker bots, but you know competition from bamboo labs and you know what is it doing to just kind of you know F123 sales.
Thank you for the question.
and maybe just to add to what
Speaker Change: Eitan said about R&D, I want to mention that we have excellent teams across our different
Speaker Change: which puts reliability about everything. And I will connect it to the vambula. We put reliability about everything. And since you have good relationship in the industry, you can also talk with our customers.
Speaker Change: You know, the one big differentiation that we have that our additive works.
Speaker Change: and its industrial grade. Now let's take it to bamboo labs and the low end.
This is not our area.
Speaker Change: From the beginning, when I joined Stratasys five years ago, I said, okay, prototyping is great, but it will become modernized. The low end...
Prototype will be commoditized.
Speaker Change: This is not the way to leverage the unique answers and capabilities that Stratasys have.
Speaker Change: We have a major relationship with the key players in the key verticals like Arrow, Defense, Automotive, Dental, Medi-Cut. Those guys will never buy Bambula. Just between of that stuff. We'll never buy Bambula.
Why?
Speaker Change: Because they care about reliability, they care about the total cost of ownership, which is the full solution, they care about how actuators depart and the properties of the power and they care about someone that will be there for them for enablement and service.
and this is our focus.
Okay, it takes time. We are penetrating into manufacturing.
Speaker Change: It's a good, by the way, it's good that the industry is drawing and at the low end people are more exposed and have awareness of energy manufacturing. But when they want to move from a toy to a real machine, they would go to Stratasys.
Speaker Change: So I think it's good for all of us that everyone is doing well and we are focusing as I said just to sum up on industrial manufacturing.
can be delivered.
Speaker Change: Properties and geometries that the current new machines cannot deliver and this is our market and this is our focus.
Speaker Change: Yep, I would agree 100% on you guys' reliability here at all the time from the users so keep up the good work there and I'm excited to see what all you all is gonna do with the board changes here but I mean I'm with this position on the board but thank you.
Thank you. Thank you.
Speaker Change: The next question is from Ananda Baruah from Loop Capital Market. Please go ahead.
Speaker Change: that you could share to help us get a sense of how they're thinking about things and what's having them not altering their forecasts yet, you know, in the big picture, and then have a quick follow-up. Thanks.
Thank you, Ananda.
Speaker Change: It's kind of a unique situation that we are facing
Speaker Change: On one hand, there is so much uncertainty, macro condition are not so positive. We see a like this, this is the real truth. On the other end, engagement.
and our customers are highly engaged.
and Luke,
Speaker Change: and Explore Editive as a tool for mitigation to the uncertainties.
So the demand behind the scene is strong.
Speaker Change: But there is definitely a constraint on capital expenditure. No doubt.
Speaker Change: And that's why we need to take a deep breath, keep doing a great job that we are doing, leveraging our assets.
Deliver the message of...
Speaker Change: The absolute advantage that additive manufacturing has in different use cases.
Speaker Change: We benefit our customer with onshoreing, with lower cost, with better geometry, with personalization, all the editing can do it.
Speaker Change: and we shouldn't focus now on the gloomy world and the uncertainty that we are seeing. We should focus on
A model of cost that is agile and sustainable.
and improving our solutions.
Speaker Change: That's when manufacturing will come back to normal, we are there and we will deliver to the Department of Demand of our customers.
Speaker Change: This is the idea, and I think that there are no one better than Stratasys
Speaker Change: Once we are back to the upward cycle, it will happen.
It was happening.
That's a really good context. And let me ask...
Speaker Change: Maybe a little bit of a sexier question here. This is another big picture one. I don't think I asked this of you 90 days ago, but, you know, just this whole conversation that amplified a little bit more of the last 12 months around.
Speaker Change: You know, manufacturing, factory automation that's been Gen AI trying to catalyze and, you know, Nvidia's given, I think in the last 13, 14 months, like four on stage long form presentations.
Speaker Change: around the increased use of robotics energized by Gen.A.I. You guys fit very nicely into that whole automation conversation. I guess really the question is
S.
Speaker Change: Is there work going on between you guys and that whole Gen AI community, robotics community, broader automation community to Sorta?
Yonah Lloyd, Eitan Zamir, Yoav Zeif
Speaker Change: and propagating the vision, you know, sort of the next step forward. So, you guys would seem to fit in that conversation really snugly. Just wondering if...
Speaker Change: It's the time where there's efforts actually taking place to sort of further bring together the various communities or if it's too early to do that, just trying to get the sense of that. Thanks a lot.
Speaker Change: Thank you so much for the question, and for this closure we didn't ask you to ask it.
Speaker Change: Yes, this is the 19th United States, we are a digital solution.
Speaker Change: and the world is becoming more and more digital and on top of it we are going to Gen AI and Robotics and Automation.
Robotics and Automation John .
Al-Beneth Beating Tremendously
Speaker Change: from Editive Manufacturing. Why? Because all the advantages of Editive are there. You need special geometries, you need to have very small batches of production.
Speaker Change: and on top of it, when we are talking about AI, the whole way and methodology of designing and delivering paths will move to artificial intelligence. We will stick to the computer and we will create.
Speaker Change: digital files that will be printed and used in end-use and use files and also in finished goods and models so we have a unit that is focusing on it
Speaker Change: We already have an AI solution out there, based on Reven acquisition that we had a couple of years ago. Where we are correcting the pound.
Speaker Change: based on AI, because the one of the main challenges of additive is ability to have responsibility.
Speaker Change: And accuracy at first print. We have so much data and we will leverage all the data that we have to make sure that at first print you get the best palm. We are also walking on service model with AI, predictive service model.
Speaker Change: and so on and so forth. The way we look at it strategically, looking at a big picture, we have relationship with the top corporate in the world. We are asking them, what are you expecting from us on AI? This is one stream and we call it customer advisory board.
Speaker Change: Brainstorming and trying to invest to innovate.
Speaker Change: Artificial intelligence and how it can transform additive.
Speaker Change: Very exciting to say.
Speaker Change: Very exciting and we work with our customer we have customer advisory boards like Boeing like Lockheed like neutral Toyota and so on.
Speaker Change: GM.
Speaker Change: So that's really useful feedback I really appreciate it.
Speaker Change: Thanks, a lot. Thank you.
Speaker Change: There are no further questions at this time I would like to turn the floor back over to you for closing comments.
Speaker Change: Thank you for joining us looking forward to updating you again next quarter.
Speaker Change: This.
Speaker Change: Todays teleconference. You may disconnect your lines at this time, thank you for your participation.
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