Full Year 2024 Nano Dimension Ltd Earnings Call
Rocco: Good day, ladies and gentlemen. Welcome to Nano Dimension's 2024 Financial Results and Shares 2025 Strategic Outlook Call. My name is Rocco, and I'm your operator for today's event.
Good day, ladies and gentlemen, welcome to the Endo dimensions placeholder for financial results ensures what do you 25 strategic outlook call.
Rocco: My name is Rocco and I'm your operator for today's event.
Unknown Attendee: On the call with us today are Ophira Balrao, Chief Executive Officer, Asaf Sapori, Chief Financial Officer, Chief Financial Officer, and Julian Lederman, Chief Business Officer. Before we begin, may I remind our listeners that certain information provided on this call may contain forward-looking statements. And the safe harbor statement outlined in today's earnings press release also pertains to statements made on this call.
Speaker Change: On the call with US today are a fear about Roth Chief Executive Officer.
Joe Lieberman: Our support he Chief Financial Officer, Chief Financial Officer, Joe Lieberman, Chief Business Officer.
Joe Lieberman: Before we begin may I remind our listeners that certain information provided on this call may contain forward looking statements.
Joe Lieberman: Safe Harbor statement outlined in today's earnings press release also pertains to the statements made on this call.
Unknown Attendee: If you have not received a copy of the press release, please view it in the investor relations section of the company's website. A replay of today's call will also be available on the investor relations section of the company's website. Please also note, today's call will be recorded.
Joe Lieberman: If you've not received a copy of the press release.
Joe Lieberman: We do it in the Investor Relations section of our company its website.
Joe Lieberman: Replay of today's call will also be available on our investor.
Joe Lieberman: Relations section of the company's website.
Joe Lieberman: Please also note today's call will be recorded.
Unknown Attendee: Yoav will begin the call with a business update, Julian will begin the call with a business update, followed by a question and answer session, at which time the management team will answer questions. Please also note, today's conference is being recorded.
Joe Lieberman: Yeah.
Joe Lieberman: In the call.
Joe Lieberman: With a business update.
Joe Lieberman: And we will begin the call with a business update followed by a question answer session at which time the management team will answer the question.
Joe Lieberman: Also note todays conference is being recorded.
Ophira Balrao: I would now like to turn the call over to Nano Dimension's CEO. We'll see her later, but please go ahead. Good morning and good afternoon. Thank you for joining Nano Dimension's 2024 Financial Results and 2025 Outlook Call. Please allow me to set the stage for today's presentation. We'll review our 2024 milestones and results, discuss the focus and transformation created by the recently appointed board and leadership team. We know there's strong interest in our recent acquisitions and buyback plan, and we're ready to dive in.
Speaker Change: Now I'd like to turn the call over to that other dimensions C E O.
Lieberman: Lieberman. Please go ahead.
Lieberman: Good morning, and good afternoon.
Lieberman: Thank you for enamel dimensions, 'twenty 'twenty, four but actual results and 2025 outlook call.
Lieberman: Please allow me to set the stage for today's presentation.
Lieberman: We will review our 2020 for milestones and results discuss the focus their transformation created by the recently appointed board and leadership team.
Lieberman: We know there is strong interest in our recent acquisitions.
Lieberman: My plan.
Speaker Change: We are ready to die.
Ophira Balrao: Joining me today are Julian Litterman, our Chief Business Officer, and Asaf Zipory, our new Chief Financial Officer. Julian has been with Nano for over four years and served as interim CEO from December to April. he's being central to our transformation efforts and will continue leading investors relations.
Lieberman: Joining me today are Julian literally.
Speaker Change: Chief business Officer.
Speaker Change: <unk>, our new Chief Financial Officer.
Speaker Change: Drilling has been with mono over four years and served as interim CEO from December to April.
Speaker Change: Central to our transformation efforts and will continue leading investor relations.
Ophira Balrao: Assaf joins us from Mark Forge, where he was CFO. He brings deep financial and domain expertise and strengthens our ability to make decisive decisions. Together, we, along with other executives from all companies, are committed to disciplined execution and long term value creation.
Speaker Change: <unk> joins us from workforce, where he was CFO.
Speaker Change: He brings deep financial and domain expertise and strengthened our ability to make decisive decisions too.
Speaker Change: Together, we along with other executives from all companies are committed to disciplined execution.
Speaker Change: Long term value creation.
Ophira Balrao: We are a leader in digital manufacturing. We partner with industrial leaders in the design to manufacturing of high performance, high value parts. We are changing the way the world designs and manufactures these parts, enabling superior parts. Parts With Greater Complexity Without Adding Cost. at the point of consumption, and often with unprecedented mechanical properties. such as the magic of reducing a part's weight while increasing its strength. Innovating at the intersection of software, machine learning, material science, and hardware, we are able to create superior parts magic and unlock significant parts value and drive shareholders' returns. to create superior parts, we're reinventing manufacturing solutions.
Speaker Change: We are a leader in digital manufacturing.
Speaker Change: We partner with industry leaders in the design to manufacturing of high performance high value parts.
Speaker Change: We are changing the way the world designs and manufacturers the sports enabling superior courts.
Speaker Change: With greater complexity without adding cost.
Speaker Change: At the point of consumption and often with unprecedented mechanical properties.
Speaker Change: The magic of reducing any parts weight, while increasing its strengths.
Speaker Change: Innovating at the intersection of software machine learning materials Science and hardware, we are able to create superior parts magic and power work significant parts value and drive shareholders' return.
Speaker Change: To create spear imports, we're reinventing manufacturing solutions, our unwavering vision is on producing high value high performance components with significant growth potential.
Ophira Balrao: Our unwavering vision is on producing high value, high performance components with significant growth potential. And we're well capitalized to accelerate our market penetration and innovate to deliver premium technologies to meet the underlying demand trends that are enhanced by the ongoing trade challenge.
Speaker Change: We are well capitalized to accelerate our market penetration and innovate to deliver premium technologies to meet the underlying demand trends. They are enhanced by the ongoing trade challenges.
Ophira Balrao: 2024 was the year of transformation. Shareholders demand a change. With new leadership in place, we are delivering change. focusing on disciplined fundamentals. Customer Driven Services and Innovation. This means we exit non-core products and strictly focus on products capable of making high performance, high value, superior parts.
Speaker Change: 2024 would be a year of transformation.
Speaker Change: Shareholders been management change.
Speaker Change: With new leadership in place, we are delivering change focusing on disciplined fundamentals.
Speaker Change: First.
Speaker Change: Customer driven services and innovation.
Speaker Change: Meaning we exited non core products and strictly focused products capable of making high performance high value superior parts.
Ophira Balrao: Thank you.
Speaker Change: Second.
Ophira Balrao: Pursuit of Best-in-Class Financial Mentors. This has already helped us reduce office by over $20 million in annual savings for the organic nano business. Third. We are bringing our product and financial discipline to how we think about further investment.
Speaker Change: Pursuit of best in class financial metrics.
Speaker Change: This has already helped us reduce opex by over $20 million in annual savings from the organic nano business.
Speaker Change: Third.
Speaker Change: We are bringing our product and financial discipline to how we think about further investments.
Ophira Balrao: I've spent the last several weeks visiting nearly every site across the country. as well as those of Vyvstok-Mikkel and Mark Ford. I've met with countless colleagues at all levels of the organization. and I'm impressed by the talent and domain expertise across the board. have participated in multiple product and go-to-market reviews. and I've gained insights into where we can grow, reduce costs. and unlock greater value.
Speaker Change: I've spent the last several weeks visiting nearly every site across the company.
Speaker Change: As well as those of desktop metal and.
Mark Schwartz: Mark Schwartz.
Mark Schwartz: I've met with countless colleagues at all levels will be organization.
Mark Schwartz: And I mean priced by the talent and domain expertise across the board.
Mark Schwartz: Participated in multiple products and go to market reviews.
Mark Schwartz: And I've gained insights into where we can grow.
Mark Schwartz: Reduce costs.
And unlock greater value.
Ophira Balrao: most important. I've been energized by our technology's differentiation. are unique capabilities. and their passion. for the creation of cost effective type of form. I value. Superior Park. This has only increased my excitement in our future.
Mark Schwartz: Most importantly.
Mark Schwartz: I've been energized by our technology differentiation.
Mark Schwartz: Our unique capabilities.
Mark Schwartz: These are passionate.
Mark Schwartz: For the creation of cost effective.
Mark Schwartz: High performance high.
Mark Schwartz: High value.
Mark Schwartz: Superior parts.
Mark Schwartz: This is only increased my excitement and our future.
Ophira Balrao: We are at the point of transformation with the changes already in motion to unlock our full potential. In summary, we transformed Nano, and now we are scaling that success. We only begun executing our transformation in January. we emphasize capital discipline and product viability. We've reduced annualized operating costs of our core nano business. by 20 million. and we're applying that discipline investment approach to this docmental in Mark IV.
Mark Schwartz: We are at the point of transformation with.
Mark Schwartz: With the changes already in motion to unlock our full potential.
Mark Schwartz: In summary, we transform value and now we are scaling that success.
Mark Schwartz: We only began executing our transformation.
Mark Schwartz: In January.
Mark Schwartz: We emphasize capital discipline and product liability.
Mark Schwartz: We've reduced annualized operating cost of our corn business.
Mark Schwartz: By $20 million.
Mark Schwartz: And we're applying that disciplined investment approach to desktop metal and workforce.
Asaf Sapori: Before getting further into those details, a sample provides you with a recap of our 2024 results. Thank you, Ophir. Looking at our results, revenue reached $57.8 million, up 2.6% year-over-year. Adjusted EBDALOS improved by 35% to $65.2 million. Net cash burn declined by a factor of 3.6.
Mark Schwartz: Before getting further into those details assaf, who will provide you with a recap of our 2024 results.
Assaf: Thank you all for you looking at our results revenue reached $57 8 million.
Assaf: Two 6% year over year.
Assaf: Adjusted EBITDA loss improved by 35% to $65 2 million.
Assaf: Net cash burn declined by a factor of 3.6, excluding the impact of the buyback.
Asaf Sapori: Excluding the impact of survival. We also finished the year with $845 million in cash, cash equivalents, and marketable security.
Assaf: We also finished the year with $845 million in cash.
Assaf: Cash equivalents and marketable securities.
Asaf Sapori: I would also like to share preliminary Q1 2025 financial highlights. Revenue was $14.4 million, which is 8% higher than Q1 2020. Cash, Cash Equivalents, and Marketable Securities were $840 million as of March 31, 2025.
Assaf: I would also like to share preliminary Q1 2025 financial highlights.
Assaf: Revenue was $14 4 million, which is 8% higher than Q1 'twenty three.
Assaf: Cash cash equivalents and marketable securities were 840 million.
Assaf: March 31st 2025.
Asaf Sapori: Again, these are preliminary estimates. Actual results may vary.
Assaf: Again these are preliminary estimates as John results may vary.
Asaf Sapori: Furthermore, our Q1 2025 results do not include our most recent acquisitions, which closed in Q2 of 2025.
Furthermore.
Assaf: Q1, 2025 results do not include our most recent acquisitions, which closed in Q2 of 2025.
Asaf Sapori: Now looking at our sales. Despite the purchasing managers in the or PMI below 50, a bearish macro indicator, we posted positive sales growth. That is meaningful. and Sentiment Improved.
Assaf: Now looking at our sales.
Assaf: Despite the purchasing managers index.
Speaker Change: Oh, PMI below 50, a bearish macro indicator.
Assaf: We posted positive sales growth.
Speaker Change: That is meaningful.
Assaf: And sentiment improves.
Asaf Sapori: We're positioned to capture more upside, especially with our refocused strategy. This is further supported by global trade policy that is forcing manufacturers to take a hard look at their business and supply chains. Nano Dimension is well positioned to assist.
Assaf: We're positioned to capture more upside, especially with our refocused strategy.
Assaf: This is further supported by global trade policy that is forcing manufacturers to take a hard look at their business and supply chains.
Assaf: Another dimension is well positioned to assist.
Asaf Sapori: in looking at our operating expenses. We begin to lower operating expenses and we continue to drive efficiency. This isn't just about innovation. It's about doing it right. No more bloated teens or unchecked spending.
Assaf: In looking at our operating expenses.
Assaf: We began to lower operating expenses and we continue to drive efficiency.
Assaf: This isn't just about innovation, it's about doing it right.
Assaf: No more bloated teams or unchecked spending.
Asaf Sapori: Efficiency Map. We have already made big changes, and we don't plan to stop.
Assaf: Efficiency matters.
Assaf: We have already made big changes and we don't plan to stock.
Asaf Sapori: shareholders asked for change. and Leadership is Delivered. It starts with disciplined leadership that prioritize forthrightness and trust within this. We employ a discipline strategy. that is synergistic, no more sporadic acquisition. We execute through a disciplined operating model where each capital allocation and cost line is measured against best-in-class metrics. and much. face uncompromising scrutiny and ROI justification.
Assaf: Shareholders ask for change in <unk>.
Assaf: <unk> is delivering.
Assaf: It starts with disciplined leadership, they prioritize forthright this entrust with investors.
Assaf: We employ a disciplined strategy.
Assaf: That is synergistic no more sporadic acquisitions.
Assaf: We executed two a disciplined operating model, where each capital allocation and cost line.
Assaf: Against best in class metrics and must face uncompromising scrutiny.
Assaf: ROI justification.
Asaf Sapori: And finally, discipline forecasting that helps investors understand our accomplishments, risks, and outcomes.
Assaf: And finally.
Assaf: Disciplined forecasting that helps investors understand our accomplishments risks.
Assaf: Outlook.
Asaf Sapori: We have assembled a board and a management. that have common shared values and a zeal to be a profitable, highly disciplined, customer focused organization.
Assaf: We have assembled a board and a management team.
Assaf: That have common shared values and a deal to be a profitable highly disciplined customer focused organization.
Julian Lederman: Julie, please share our transformation framework. Our playbook has four steps. Assess. transform, invest. and grow. We evaluate every area of the business through this lens. only invest where there's a clear path. profitable ROI driven growth. In looking at the pillars of our assessments, we assess product lines and the operating model. Every offering must have a competitive advantage and be a category leader. and have a defensible position against low-cost competition, particularly from the Far East. These products must have growth potential and certainly an ROI for shareholders. We combed through our operating model, challenged excessive GNA and management overhead, broke down silos, especially in sales and marketing, and realigned the organization around the customer.
Assaf: Julie.
Assaf: Sure our transformation framework.
Assaf: Our playbook has four steps.
Assaf: That's.
Assaf: Transform.
Assaf: Invest and grow.
Assaf: We evaluate every area of the business through this lens and only invest where there's a clear path to profitable.
Assaf: Oh I driven growth.
Assaf: And looking at the pillars of our assessments, we assess product lines and the operating model every offering must have a competitive advantage and be a category leader.
Assaf: And have a defensible position I guess low cost competition, particularly from the far east. These.
Assaf: These products must have growth potential and certainly an ROI for shareholders.
Assaf: We combed through our operating model challenged excessive G&A and management overhead broke down silos, especially in sales and marketing and realigned the organization around the customer.
Julian Lederman: We overhauled our structure. Less hierarchy. more execution. Faster Innovation. During our first quarter on the job, we acted decisively. staying true to our vision.
Assaf: We overhauled our structure.
Assaf: Less hierarchy.
Assaf: More execution.
Assaf: Faster innovation.
Assaf: During our first quarter on the job, we acted decisively staying true to our vision.
Julian Lederman: We exited agnotic. Fabrica, and Forex. We refocused the product roadmap and go-to-market of our Printed Electronics Group, AME, and Surface Mounted Technology Group, SMT. we realigned our go to market around the customer. regions of operations, and customer culture. This is coming after a discipline data driven reduction in management, GNA, and marketing. important This did not sacrifice ribbon. discipline and focus are paying off by reducing our operating expenses by $20 million annually, from Q4 onwards, while also increasing our revenue per employee from $147,000 to $223,000. This is a 52% gain for our core business.
Assaf: We exited pathologic.
Assaf: <unk> fabric hub.
Assaf: For epic.
Assaf: We refocused the product roadmap and go to market of our printed electronics group Ami.
Speaker Change: Surface mounted technology group.
Assaf: <expletive>.
Assaf: We realigned our go to market around the customers.
Assaf: Regions of operations.
Assaf: And customer cultures.
Assaf: This is coming after a disciplined data driven reduction in management G&A and marketing.
Assaf: Importantly.
Assaf: This did not sacrifice revenue.
Assaf: Discipline and focus are paying off by reducing our operating expenses by $20 million annually from Q4 onwards, while also increasing our revenue per employee from $147000 to $223000. This is a 52%.
Assaf: Same for our core business.
Julian Lederman: From Chaos to Control. In summary, we're shifting from chaos to this.
Assaf: From chaos to control.
Assaf: In summary, we're shifting from KR good discipline, our cost reductions came on the back of three principles.
Julian Lederman: Our cost reductions came from the back of three principles. One, Clear Strategy, and Focus on Differentiated High-Performance, High-Value Superior Parts. Two, synergizing fractured structures resulting in 3. Formally, a bloated cost structure, now materially reduced.
Assaf: One <unk>.
Assaf: Clear strategy and focus on differentiated high performance high value superior parts.
Assaf: Too soon energizing fractured structures, resulting in.
Assaf: Three formerly a bloated cost structure now materially reduced.
Julian Lederman: about Mark Forge and this document. We're now looking critically at Desktop Metal and Mark IV. Each company has its challenge. Mark Forge is a chair of operational cost issues that must be addressed.
Speaker Change: About mark forged and desktop metal.
Speaker Change: We're now looking critically at desktop metal and Mark Forge.
Speaker Change: Each company has its challenges.
Speaker Change: Mark Forge is its share of operational cost issues that must be interest.
Julian Lederman: but I would like to focus on the elephant in the room.
Speaker Change: But I would like to focus on the elephant in the room.
Speaker Change: <unk> metal.
Julian Lederman: We were required by the Delaware Courts to close the desktop metal acquisition. and we honored that obligation. paying out nearly $180 million to desktop mental stockholders.
Speaker Change: We were required by the Delaware courts to close the desktop medical acquisition.
Speaker Change: And we honored that obligation.
Speaker Change: Paying out nearly $180 million to desktop metal stockholders.
Julian Lederman: We have commenced our own ongoing strategic review of this investigation. It should be clear to anyone looking at desktop metal situation. that the company has very limited liquidity and significant liabilities, including $116 million in outstanding convertible numbers. all incurred prior to our acquisition.
Speaker Change: We have commenced our own ongoing strategic review of this investment.
Speaker Change: It should be clear to anyone looking at desktop metals situation.
Speaker Change: The company has very limited liquidity and significant liabilities, including $116 million in outstanding convertible notes.
Speaker Change: All incurred.
Speaker Change: Prior to our acquisition.
Julian Lederman: As the notes indenture requires, this supplemental is offering to repurchase the notes by June 11, 2025 for the principal amount plus accrued interest. Desktop Metal does not now have the liquidity or financing commitments necessary to make that repurchase or satisfy other material liabilities. Liabilities that are obligations of Desktop Metal. not Nano Dimension. As has been announced, Desktop Metal is running its own independent process to evaluate all of its available strategic alternatives to address its liabilities and liquidity needs. Desktop has engaged its own advisors to assist in this process and added an independent director to its board.
Speaker Change: And the notes indenture requires desktop metal is offering to repurchase the notes by Julian live in 2025 for the principal amount plus accrued interest.
Speaker Change: Desktop metal does not now have the liquidity or financing commitments necessary to make that repurchase or satisfy other material liabilities liabilities that are obligations of desktop metal <unk>.
Speaker Change: <unk> nano dimension.
It has been at an historic metal is running its own independent process to evaluate all of its available strategic alternatives to address its liabilities and liquidity needs.
Speaker Change: They're still pairs engage its own advisors to assist in this process and added an independent director to each board.
Julian Lederman: While we have provided limited secured financing to DesktopMetal to help address its short-term liquidity needs and allow it to run its strategic cross-projects, We can't give any assurances about the outcome of that process or our consideration of whether or not in what amounts to provide additional financial As the vent stop mental process continues. we will respond consistently with our guiding principles. maintaining our financial strength and limiting investment to opportunities that drive profitable growth. and increase more.
Speaker Change: Why don't we have provided limited secured financing to desktop metal to help address its short term liquidity needs and allow us to run a strategic process.
We can't give any assurances about the outcome of that process or our consideration.
Speaker Change: Whether or not.
Speaker Change: In what amounts to provide additional financing.
Speaker Change: As the desktop metal process continues.
Speaker Change: We will respond consistently with our guiding principles.
Maintaining our financial strength and limiting investment to opportunities that drive profitable growth.
Speaker Change: And increase margins.
Julian Lederman: We expect to have additional clarity regarding the DISTOP process by the end of June. We remain committed to keeping you closely informed on the progress of your company. Our strategic assessment is well underway and will remain an active focus. As this work advances, we will continue to provide shareholders with clear updates on our strategy and path forward.
Speaker Change: We expect to have additional clarity regarding the desktop process by the end of June.
Speaker Change: We remain committed to keeping you closely informed on the progress of your company.
Speaker Change: Our strategic assessment is well underway and will remain an active focus as this work advances we will continue to provide shareholders with clear updates on our strategy and path forward.
Julian Lederman: I want to close with a reminder of what excites us so much. We are primed to lead the digital manufacturing sector. We have tailwinds supporting us as customers require. Rapid manufacturing, reshoring, supply chain resilience, IP security. and sustainability. We're focused on the right place. market leading systems for high value. High Growth, Superior Power. We are concentrated where we need to be serving key sectors, aerospace and defense, automotive, electronics, and medical.
Speaker Change: I want to close with a reminder of what excites us so much.
Speaker Change: We are primed to meet the digital manufacturing sector.
We have tailwind supporting us and our customers require rapid manufacturing re shoring supply chain resilience.
Speaker Change: Security.
Speaker Change: And sustainability.
Speaker Change: We're focused on the right places.
Speaker Change: Market, leading systems for high value.
Speaker Change: High growth superior parts.
Speaker Change: We are concentrated where we need to be.
Speaker Change: Serving key sectors, aerospace and defense automotive electronics and medical.
Julian Lederman: We are Managed Response. We have a strong capital base that enables us to think long term, allowing us to act strategically.
Speaker Change: We are advantaged responsibly.
Speaker Change: We have a strong capital base.
Speaker Change: It enables us to think long term.
Speaker Change: Allowing us to act strategically.
Julian Lederman: in closing. I would like to leave you with one thought. Solving the manufacturing challenges of advanced complex parts matters. It matters in aerospace and defense. It matters in automotive. It matters in electronics, and it matters in medicine. This is what we do best. We now have the most advanced array of technologies in the scale for vast R&D, sales, and G&A synergy. And with focus and discipline, we have the foundation for growth and value creation. If you believe the world needs advanced manufacturing solutions for complex, superior parts, your company is in the right position. to lead and create value for shareholders.
Speaker Change: In closing.
Speaker Change: I would like to leave you with one thought.
Speaker Change: Solving the manufacturing challenges of advanced complex parts.
Speaker Change: Matters it matters in aerospace and defense.
Speaker Change: In automotive it matters, even electronics any matters in medical.
Speaker Change: This is what we do best.
Speaker Change: We now have the most advanced array of technologies and the scale for vast RMB sales and G&A synergies.
Speaker Change: And with focus and discipline, we have the foundation for growth and value creation.
Speaker Change: If you believe the world needs advanced manufacturing solutions for complex superior parts.
Speaker Change: Your company is in the right position to.
Speaker Change: To lead and create value for shareholders.
Julian Lederman: With that, we're happy to take your questions. Thank you for your time and continued support. Thank you.
Speaker Change: With that we're happy to take your questions. Thank you for your time and continued support.
Speaker Change: Thank you we will now begin the question and answer session.
Rocco: We will now begin the question and answer session. To ask a question, you may press star then 1 on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the key. To withdraw your question, please press star then 2.
Speaker Change: To ask a question you May press Star then one on your telephone keypad.
Speaker Change: If you were using a speakerphone please pick up your handset before pressing the keys.
Speaker Change: To withdraw your question. Please press Star then two.
Rocco: At this time, we will pause momentarily to assemble our roster. Thank you.
Speaker Change: At this time, we will pause momentarily to assemble our roster.
Speaker Change: Yes.
Speaker Change: Thank you and our first question today comes from Greg Palm Craig Hallum capital.
Greg Palm: And our first question today comes from Greg Palm at Craig Haven Capital Group. Please go ahead. Yeah, thanks. Appreciate the time. And thanks for taking the questions.
Speaker Change: Group. Please go ahead.
Speaker Change: Yeah. Thanks appreciate the time and thanks for.
Speaker Change: Taking the questions I guess, just digging into those strategic vision a bit more maybe you can.
Julian Lederman: I guess just digging into the strategic vision a bit more, maybe you can, you know, expand on some of these priorities. I mean, are you going to be a company focused on growth or profitability? I know you can be both, but just kind of curious what the bigger focus area is, at least in the near term here.
Speaker Change: Expand on some of these priorities I mean are you going to be a company focused on growth or profitability. I know you can be both but just kind of curious what the bigger focus area is at least in the near term here.
Julian Lederman: Hi, Greg, it's Julian here. Thanks for the question. As we're trying to consistently say, because it's consistently what's driving us, we have to be focused on growth and profitability. It is really that duality. It's balancing those two constantly. It's focusing on the technologies that we feel can grow, but not just growing, because we're pumping a lot of sales and marketing dollars into it, but because it's a technology that's really solving a problem and has future potential. And all while we're doing that, we'll manage it responsibly, and make sure that we're managing the costs while we're trying to support the business to grow.
Hi, Greg It's Julian here, Thanks for the question.
Speaker Change: As we're trying to consistently say because it's consistently whats driving us we have to be focused on growth.
Speaker Change: And profitability.
Speaker Change: Duality, it's balancing those two constantly it's focusing on the technologies that we feel can grow but not just growing because we're pumping a lot of sales and marketing dollars into it but because it's a technology, that's really solving a problem and has future potential.
Speaker Change: And all while we're doing that well manage it responsibly.
Speaker Change: And make sure that we're managing the cost while we're while we're trying to support the business to grow and it ultimately has to be on the path to delivering profit profitability. It is really about that duality, we have to acknowledge we're in a different market environment than three or four or five years ago. This is the environment that we're in and we need to build.
Julian Lederman: And it ultimately has to be on the path to delivering profitability. It is really about that duality. We have to acknowledge we're in a different market environment than three, four or five years ago. This is the environment that we're in. And we need to build a sustainable business, not just, of course, sustainable in the green sense, but in the business model sense. And that means we have to be profitable. Yeah, makes sense.
Speaker Change: Our sustainable business, not just a quite sustainable and in the green sense, but in the business model says and that means we have to be profitable.
Speaker Change: Yeah. It makes sense as you look across your portfolio of assets today I mean, what do you think you know Gibbs yourself an advantage under this this whole digital manufacturing opportunity is there anything missing whether that's certain technologies within additive anything outside additives specifically.
Julian Lederman: And as you, you know, look at cross your portfolio of assets today, I mean, what do you think, you know, gives yourself an advantage under this, you know, this whole digital manufacturing opportunity?
Julian Lederman: Is there anything you know, missing, whether that's certain technologies within additive, anything outside additive specifically? Another good question, Greg. Thank you.
Speaker Change: Another good question, Greg. Thank you I think one of the things that gets us the most excited here as software.
Julian Lederman: I think one of the things that gets us the most excited here is software. is the software that brings it together.
Speaker Change: Is it a software that that brings it together I think the future of this industry.
Julian Lederman: I think the future of this industry will be not all that dissimilar from the 2D printing industry where the printers became somewhat in the background and it's about the software. I would like to highlight, I think all companies, Nano and Markforged, have great software, but Markforged particularly has a great software platform. We knew about it before, we've learned a lot more about it since we've been one company and we're really seeing opportunities in leveraging that software platform in ways that we already know are pretty exciting and we think those will hopefully translate to results in the not too far future.
Speaker Change: Steve will be not all that dissimilar from the two D printing industry, where the printers became somewhat in the background and it's about the software I would like to highlight I think all companies nano and Mark Forge have great software, but mark <unk>, particularly is a great software platform.
Speaker Change: And we knew about it before we've learned a lot more about it since we've.
Speaker Change: In one company.
Speaker Change: And we're really seeing opportunities and leveraging that software platform in ways that we already know are pretty exciting and we think those are hopefully translate to the results in the not too far future.
Greg Palm: And that was going to be my last question.
Speaker Change: And that was gonna be my my last question was segue into tomorrow forged but curious if you can just sort of comment on what the potential synergies would look like either on a on a cost or revenue side, assuming that stays in the portfolio.
Greg Palm: It was segueing into Mark Forge, but curious if you can just sort of comment on what the potential synergies would look like either on a cost or revenue side, assuming that stays in the portfolio. Sorry, Greg, can you say the question again? Can you... It broke up real quick. Can you comment on the synergy potential with Markforged, both on a cost and a revenue basis, assuming that stays in the portfolio? Yeah, we're not going to at this point, we're not going to put financial numbers on the synergies as we're still really, really diving into the business.
Speaker Change: Sorry, Greg can you say the question again.
Speaker Change: Yeah.
Speaker Change: Can you comment on the synergy potential with Mark forged both on a cost and a revenue basis, assuming that stays in the portfolio.
Speaker Change: Yes, we're not at this point, we're not going to put financial numbers on the synergies is we're still really really diving into the business but.
Julian Lederman: But at the end of the day, we focus a lot on the same customers. We are driven by, you know, this this software first idea, there is just a ton of organizational synergies to really, to really achieve here. So we're going to be working hard on that.
Speaker Change: At the end of the day, we focus a lot on the same customers.
Speaker Change: We are driven by the software first idea there is just a ton of organizational synergies to really.
Speaker Change: To really achieve here, so we're going to be working hard on that.
Greg Palm: Okay, I will leave it there, thanks. Thanks, Greg. Thank you.
Speaker Change: Okay.
Speaker Change: Well I'll leave it there thanks.
Speaker Change: Yeah.
Speaker Change: Thanks, Greg Thank you.
Jeff Rice: And our next question today comes from Jeff Rice at smallcat.oc. Please go ahead. Hi, good afternoon, everyone. Appreciate all the insight and the new direction of the leadership and the vision. Obviously, for long term shareholders who are part of the past regime, the elephant in the room is the share price. I know you guys didn't have control over that, but many of us, including our firm, were deep underwater. Full transparency, we're in about $6, down a couple million dollars. were in negative enterprise value. Our forecast SOX should be around $6 to $8. How do we get investors, Israeli firms, other capital firms to start reinvigorating and get excited to invest at, you know, stocks at $1.50.
Speaker Change: And our next question today comes from Jeff race at small cap I won't see please go ahead.
Jeff: Hi, good afternoon, everyone.
Jeff: Oh I'll be inside them.
Jeff: The new direction, <unk> leadership and the vision.
Speaker Change: Asleep for long term shareholders, who were part of the pass regime.
Speaker Change: Elephant in the room is the share price I know you guys don't didn't have control over that but many of us, including our firm or deep underwater full transparency worrying about six bucks down a couple million dollars.
Speaker Change: We're in negative enterprise value.
Speaker Change: Our forecasts stock should be around six to $8.
Speaker Change: How do we get investors.
Speaker Change: Israeli firms other capital firms to start reinvigorating and get excited to invest at you know stocks at $1 56.
Speaker Change: Yes.
Jeff Rice: horrible at this point. So how do we get that excitement back into the company? It's great for all these things that you say, we're all for it. But without that, you know, momentum, and without that, you know, vision that you guys want to put out there, and you get that message out to a broader class, outside of retail and small capital firms like myself, we're going to be stuck in this area. So how do we get big investors excited about this?
Speaker Change: Horrible at this point, so how do we get that excitement back into the company. It's great for all of these things and say, we're all for it but without that.
Speaker Change: No.
Speaker Change: Momentum.
Speaker Change: And without that vision that you guys want to put out there and you get that message out to a broader class outside of retail and small capital firms like myself, we're gonna be stuck in this area. So how do we get big investors excited about this and then my second.
Jeff Rice: And then my second question is scaling up, how do we get the message out to the EV industry, to the medical industry, where we can start to get large contracts from those Fortune 100 companies, kind of get that day-to-day business, those large orders, that repeat business that keeps on funneling the pipeline, as you wish?
Speaker Change: Question is scaling up how do we get the message out to the E D.
Speaker Change: Industry to the medical industry, where we can start to get large contracts from those fortune 100.
Speaker Change: Companies kind of get that that day to day business those large orders that repeat business that keeps on funneling.
Speaker Change: The pipeline as you wish and then third question <unk>.
Julian Lederman: And then third question, DePube and the other non-core, was there any talk about trying to sell them off, or there was just no value in there, wasn't even worth the time? So I appreciate everything you guys do, and hope you guys can turn everything around for us. Thank you. Jeff, thank you for the question, and a few questions there, and I particularly appreciate your first one and concern there. I want to highlight first and foremost that we are all shareholders and we're very much aligned in where we want the share to go. But to answer your first question about how do we get it up, before I get into anything technical, I want to say it's about reestablishing trust.
Speaker Change: And the other noncore was there any talk.
Speaker Change: Talk about trying to sell them off or there was just no valeant there wasn't even worst apart. So I. Appreciate everything you guys do in hockey Baskin turn everything everything ramp Russia. Thank.
Speaker Change: Thank you.
Speaker Change: Jeff. Thank you for the question and there's a few questions there.
Speaker Change: We appreciate your first one and concern there I wanted to highlight first and foremost that we are all shareholders and we're very much aligned and where we want the share to go.
Speaker Change: But to answer your first question about how do we get it up before I get into anything technical I want to say, it's about reestablishing Trust, we have been on the road with shareholders since the board changed over in a new management team came in and it's safe to say that many shareholders almost all.
Julian Lederman: We have been on the road with shareholders since the board changed over and a new management team came in. And it's safe to say that many shareholders, almost all, are very vocal about the loss of trust and the need to restore it. And we are doing that and we'll continue to work on that. It's a constant effort and we do not take that for granted and we'll be ever focused on that. And to do things like that, it requires being transparent, providing clear milestones, hitting those milestones, being very open when something hasn't worked out, and we are committed to doing all of those things.
Speaker Change: Vocal about a loss of trust and the need to restore it and we are doing that and we will continue to work on that it's a constant efforts and we do not take that for granted and we will be ever focused on that and to do things like that it requires being transparent providing clear milestones hitting those milestones being met.
Speaker Change: Openly something Hasnt worked out and we are committed to doing all of those things.
Julian Lederman: With that said, and still on that question, our company is at an exciting point of transformation. We think much of the market is just coming to learn from days like today what we have done. We have focused on certain products. We have moved away from others. We've reduced GNA, we've been super critical of management overhead, and we have improved organizational efficiency. This is how, already in the last few months, we've reduced OPEX by $20 million. And I want to say there's certainly more to do. Jeff, we're busy diving in and we're finding more to do.
Speaker Change: With that said and still on that question. Our company is at an exciting point of transformation.
Speaker Change: We think much of the market is just coming to learn from days like today, what we have done.
Speaker Change: We are focused on certain products, we have moved away from others.
Speaker Change: We've reduced G&A.
Speaker Change: We've been Super critical of management overhead and we have improved organizational efficiency. This is how already in the last few months, we've reduced opex by $20 million.
I'm going to say Theres, certainly more to do Jeff we're busy diving in and were finding more to do.
Julian Lederman: And I'll close on, at least on this question, after reviewing our business as much as we have recently, we are optimistic about our technologies and the future prospects that they have. Onto your second question about getting repeat customers and big customers, I will say we have many of those same customers and we are, yes, I would say focused on deeper penetration to them and expanding the list of those kind of Fortune 500 and equivalent global companies. I think Mark Ford here presents an interesting opportunity in the fact that they have an install base of 15,000 systems. That means they have many, many customer relationships that are now Nano Dimension customer relationships.
Speaker Change: And I'll close on at least on this question after reviewing our business.
Speaker Change: As much as we have recently, we are optimistic about our technologies and the future prospects that they have.
Speaker Change: Onto your second question about getting repeat customers and big customers I will say, we have many of those same customers and we are yes, I would say focus on deeper penetration to them.
Speaker Change: And expanding the list of those kind of fortune 500, and equivalents global companies I think Mark Ford share presents an interesting opportunity and the fact that they have an installed base of 15000 systems that means they have many many customer relationships that are now nano dimension customer relationships and we can leverage those.
Julian Lederman: And we can leverage those as a strategic platform to grow our business. But we're definitely thinking like you are, the bigger customers with repeat business. And now, frankly, we have more products and services to sell them. And that has its advantages. On your point about the discontinued businesses, we did look at divestment opportunities on all of them, right? That is our responsibility and our interest to shareholders to do so. After running processes there, we found that there wasn't an opportunity to do so, and we ultimately had to make a decision what is best for our shareholders.
Speaker Change: As a strategic platform to grow our business, but we're definitely thinking like you are the bigger customers with repeat business and now frankly, we have more products and services to sell them and that has its advantages.
Speaker Change: On your point about the discontinued businesses, we did look at divestment opportunities on all of them right that is our responsibility and our interest of shareholders to do so after running processes there.
Speaker Change: Found that there wasn't an opportunity to do so and we ultimately had to make a decision what is best for our shareholders and I think we were very convinced that the best thing to do was discontinue as soon as possible after running that process.
Rocco: And I think we were very convinced that the best thing to do was discontinue as soon as possible after running that process. I hope I answered your question. Thank you. Thank you, and as a reminder, if you'd like to ask a question, please press star then 1.
Speaker Change: If I answered your question.
Speaker Change: Thank you. Thank you.
Speaker Change: Thank you and as a reminder, if you'd like to ask a question. Please press Star then one.
Jameson Linkstad: Our next question today comes from Jameson Linkstad with Whitebox. Please go ahead. Hey, gentlemen, thanks. Thanks for the call. Sorry if I missed it. Did you give a pro forma cash number? Unknown Attendee, Yoav Stern, Shai Terem, Sol Zelman, Tomer Pinchas, Nano Dimension No, we did not. We did not provide that at this point. Okay, okay. And you can't provide it today or you're just not ready to? Okay, perfect. That's, that's, that's great. Just thought I would ask.
James C: Our next question today comes from James C link styled with White box. Please go ahead.
James C: Hey, gentlemen, thanks, thanks for the call sorry, if I missed it did you give a pro forma cash number.
James C: Our current cash number adjusted for all the acquisitions.
Speaker Change: No. We did not we did not provide that at this point.
Speaker Change: Okay, Okay, and you can't provided today than it was just that attitude.
Speaker Change: Yes that is correct.
Speaker Change: Okay perfect perfect.
Speaker Change: That's great just thought I would ask.
Speaker Change: And then.
Jameson Linkstad: And then I'm I'm a bit curious. on, and I know you guys are undergoing a strategic review, but with regards to to your approach to desktop metal. Are you guys, is it in the end, preliminarily speaking, not finding value in the assets? that are there. I mean, I understand you guys have acquired the business and sent the check out right to the shareholders, but you guys are going to...
Speaker Change: I'm Ah.
Speaker Change: A bit curious.
Speaker Change: And I know you guys are undergoing a strategic review, but with regards to.
Speaker Change: To your approach to desktop metal.
Speaker Change: Are you guys or is it in yen preliminarily speaking not finding value in the assets.
Speaker Change: Is that are there I mean, I understand you guys have acquired the business and at the checkout right for the shareholders, but you guys are going to.
Speaker Change: There is.
Speaker Change: Theres a liability there is it is it that youre not finding value there or youre not youre going to sell the assets that you just acquired is there any sort of preliminary thoughts around how you approach that.
Julian Lederman: Unknown Attendee, Yoav Stern, Shai Terem, Sol Zelman, Tomer Pinchas, Nano Dimension So, a few things to say here, to answer the question here, as we've noted, that's a metal with limited liquidity and significant liabilities, so that's something that should be called out, and these were incurred prior to the acquisition. Desktop Metal is also, they are running their own process. They have their own independent director and they have their own advisors trying to work through this process. Ultimately, we have to respect that process, maintain its independence, and we're waiting to see the results and see where we'll go from there and where they'll go from there.
Speaker Change: So if you're a few things to say here.
Speaker Change: Thanks for the question here.
Speaker Change: As we've noted that's a metal had limited liquidity and significant liabilities. So that that's that's something that that should be called out and these were incurred prior to the acquisition.
Speaker Change: Desktop metal is also they are running their own process today, they have their own independent director and they have their own advisors trying to work.
Speaker Change: Through there this process ultimately we have to respect that process maintained its independence and we're waiting to see the results and see where we'll go from there and while they will they'll go from there.
Jameson Linkstad: Okay, understood. Thank you.
Speaker Change: Okay.
Speaker Change: Thank you.
Speaker Change: Thank you.
Rocco: And this concludes our question and answer session.
Speaker Change: A question and answer session.
Ophira Balrao: I would like to turn the conference back over to the company for any closing remarks. Thank you everyone for joining us today. This is Afir again. I hope. that having listened to us today, we've communicated clearly to you. our commitment to profitability, our commitment to a strict focus and discipline. on where we are planning to take this company. We believe we have the technology, the hardware, the software, the machine learning, and the materials science. to become a dominant player. in the field of manufacturing of superior parts.
Speaker Change: To turn the conference back over to the company for any closing remarks.
Speaker Change: Okay.
Speaker Change: Thank you everyone for joining us today. This is a fair again.
Speaker Change: God I hope.
Speaker Change: Having listened to us today.
Speaker Change: We have communicated clearly to you.
Speaker Change: Our commitment to profitability.
Speaker Change: Our commitment.
Speaker Change: To a strict focus and discipline.
Speaker Change: On where we are planning to take this company.
Speaker Change: We believe we have the technology.
Speaker Change: Hardware software the machine learning and materials science.
Speaker Change: To become a dominant player.
Speaker Change: In the field or manufacturing of superior parts.
Ophira Balrao: We just finished conducting. regional reviews of our sales. around the world. and we are encouraged. by seeing how and it was one of the questions that was asked today, how our focus on the most strategic customers. in the world, in the defense. in Medical and Automotive Industries. is delivering a return for us and is allowing us to not only lower the cost of sales. but also accelerate the penetration. and Increased Utilization Model of Arms This will take time. It's a transformation. but we're seeing the yield.
Speaker Change: We just finished conducting.
Speaker Change: Regional reviews of our sales.
Speaker Change: Around the world.
Speaker Change: And we are encouraged.
Speaker Change: By seeing how it was one of the questions asked today.
Speaker Change: How our focus on the.
Speaker Change: Most strategic customers.
Speaker Change: Uh huh.
Speaker Change: In the world.
Speaker Change: In the defense.
Speaker Change: In medical and automotive industries.
Speaker Change: Is delivering a return for us.
Speaker Change: Find us to not only lower the cost of sales.
Speaker Change: But also accelerate the penetration.
Speaker Change: And increase the utilization model of arms race.
Speaker Change: This will take time.
Speaker Change: It's a transformation.
Speaker Change: But we're seeing the helix.
Ophira Balrao: With that, I want to thank everyone for today's call. And I look forward to speaking to many of you in calls over the next week or two. Thank you very much.
Speaker Change: With that I want to thank everyone for today's call.
Speaker Change: And I look forward to speaking to many of you in calls over the next week or two.
Speaker Change: Thank you very much.
Unknown Attendee: Thank you, sir.
Speaker Change: Thank you Sir the conference has now concluded. Thank you for attending that are dimensions quarterly earnings Conference call. You May now disconnect your lines and have a wonderful day.
Unknown Attendee: The conference has now concluded. Thank you for attending Nano Dimension's quarterly earnings conference call.
Unknown Attendee: You may now disconnect your lines and have a wonderful day.
Speaker Change: [music].