Stratasys(US:SSYS)2021-01-14 21:40Summary of Stratasys Ltd. Conference Call Company Overview - Company: Stratasys Ltd. (NASDAQ: SSYS) - Industry: 3-D Printing and Additive Manufacturing Key Points and Arguments Company Strategy and Market Position - Stratasys aims to lead in 3-D printing, focusing on execution in 2021 and transforming polymer manufacturing [3][5] - The company has the largest and broadest offering in 3-D polymers, with a strong global go-to-market infrastructure [4][5] - The 3-D printing market is experiencing double-digit growth, particularly in manufacturing [5] Technological Advancements - Stratasys offers multiple technologies including PolyJet for rapid prototyping and FDM for strong, accurate prints [6] - The acquisition of Origin is expected to generate up to $200 million in new annual revenues within five years, expanding into markets like dental and tooling [24][25] - The company is launching a new powder bed fusion product through a joint venture, further expanding its market reach [25] Market Trends and Customer Insights - The COVID-19 pandemic has highlighted vulnerabilities in supply chains, increasing the demand for agile manufacturing solutions like 3-D printing [8][9] - A survey by SME indicates that 3-D printing is a top investment priority for manufacturers post-COVID [9] - Stratasys is positioned to meet the needs of manufacturers looking for onshoring and rapid production capabilities [9][10] Customer Examples and Applications - General Motors has invested in a new additive industrialization center using Stratasys systems for manufacturing [12] - Bull Supersonic is utilizing Stratasys for prototyping and end-use parts in their supersonic passenger jet project [13] - Johns Hopkins Hospital employs Stratasys technology for creating bio-mechanically realistic models, improving surgical outcomes [13] Financial Performance and Outlook - Stratasys has a healthy balance sheet with over $300 million in cash and no debt, positioning it well for future growth [29] - The company expects to see continued sequential growth in Q4 following a recovery from the COVID slowdown [29] - The business model is designed to scale, with a focus on profitability through increased consumable sales as manufacturing usage grows [36] Competitive Positioning - Stratasys is recognized as the leader in polymer additive manufacturing, with the largest installed base and a comprehensive service offering [33] - The company emphasizes the importance of providing a full suite of solutions, including hardware, software, and materials, to meet customer needs [33][34] Innovation and Future Growth - Stratasys has invested $500 million in R&D and holds numerous patents, indicating strong potential for future innovation [37] - The company believes that its growth potential in the polymer market is underestimated, with significant profit opportunities ahead [38] Additional Important Insights - The company is focused on creating a smart and connected ecosystem for Industry 4.0, enhancing workflow and efficiency for customers [21][22] - Stratasys is expanding its software capabilities to integrate with existing business intelligence systems, further enhancing its value proposition [21][23] This summary encapsulates the key points discussed during the conference call, highlighting Stratasys's strategic direction, technological advancements, market trends, customer applications, financial outlook, competitive positioning, and innovation potential.