Stratasys(US:SSYS)2022-01-13 21:29Summary of Stratasys Ltd. Conference Call Company Overview - Company: Stratasys Ltd. (NASDAQ: SSYS) - Industry: 3D Printing, Additive Manufacturing - Date of Conference: January 13, 2022 Key Points Company Position and Strategy - Stratasys faced six years of declining revenues prior to the current leadership, with an aging portfolio and challenges from new technologies [3][4] - The company has shifted its focus to polymer manufacturing, aiming to address the largest profit pool in the industry and enhance its technological offerings [4][5] - New technologies added include DLP, SLA, and powder bed fusion, which have doubled the total addressable market [5][7] Market Dynamics - The 3D printing industry is experiencing a shift from prototyping to manufacturing, with significant potential in a $13 trillion addressable manufacturing market [12][13] - Supply chain issues are acting as a catalyst for the adoption of 3D printing, allowing for more flexible and distributed manufacturing solutions [11][16] Technological Advancements - Stratasys has launched new products aimed at mass production, including the SAF H350 and P3 technologies, which are designed for high-volume manufacturing [19][20] - The company is focusing on selling fleets of machines rather than individual units, indicating a shift in sales strategy [20][22] Market Segments - Healthcare: The fastest-growing segment for Stratasys, with significant opportunities in dental applications and anatomical models for surgical planning [24][27] - Automotive and Aerospace: Stratasys is well-positioned in these sectors, with partnerships with major OEMs like Volkswagen and Boom Supersonic [29][30] Materials and Software Strategy - Stratasys is adopting a controlled hybrid material model, allowing for a variety of materials to be used with its machines, which is critical for manufacturing success [33][35] - The company is transitioning towards a SaaS model for software, which is expected to generate recurring revenue and higher margins [39][42] Financial Outlook - The company is optimistic about organic growth driven by new technologies, an open material model, and a strong balance sheet [46][48] - The launch of new products in Q4 2021 and Q1 2022 is expected to contribute to growth [49] Conclusion - Stratasys is positioned for growth with a clear strategy focused on polymer manufacturing, technological advancements, and addressing supply chain challenges. The company aims to leverage its strong financial position to accelerate its growth strategy in the evolving 3D printing market.