Financial Data and Key Metrics - Total revenue for Q3 2023 increased by 7.5% to EUR6.2 million from EUR5.7 million in Q3 2022 [18] - Systems revenue increased by 25.2% to EUR3.4 million in Q3 2023 compared to EUR2.7 million in Q3 2022 [36] - Services revenue decreased by 8.2% to EUR2.8 million in Q3 2023 from EUR3.0 million in Q3 2022 [29] - Gross profit margin decreased to 26.8% in Q3 2023 from 28.7% in Q3 2022 [34] - Operating loss was EUR2.8 million in Q3 2023 compared to EUR2.5 million in Q3 2022 [39] - Net loss for Q3 2023 was EUR3.2 million or EUR0.35 per ADS, compared to a net loss of EUR8.7 million or EUR1.23 per ADS in Q3 2022 [39] Business Segment Performance - Systems segment revenue increased by 37% for the first nine months of 2023, driven by the sale of 3D printers, consumables, and aftersales activities [20][36] - Services segment gross profit margin decreased to 29.6% in Q3 2023 from 32.8% in Q3 2022 due to lower utilization of German and Chinese service centers [29] - The recurring portion of revenue from aftersales activities is growing as the installed base of 3D printers expands [20] Market and Geographic Performance - Revenue is targeted to be evenly distributed across Europe, USA, and Asia to hedge against local risks [22] - The company has a strong presence in major markets, including Europe, USA, and Asia [1] - In Germany, the company received a large order from a leading carmaker, and in the US, the PMMA section is fully booked [11] Strategic Direction and Industry Competition - The company aims to break even on a full-year EBITDA basis by 2025 and is focused on optimizing costs without compromising growth targets [12][33] - The company is developing a new large-scale binder-jetting printer (BFP) under a $14.9 million contract with GE Research, funded by the US Department of Energy [23] - The company is expanding its production capacity with high-speed sintering printers, targeting industries such as automotive and aerospace [26][27] Management Commentary on Operating Environment and Future Outlook - The company is targeting the higher end of its full-year sales guidance for 2023, dependent on successful printer installations [6] - Management is optimistic about the future, with a strong order backlog of 15 3D printers worth EUR11.8 million [18] - The company expects Q4 2023 revenue to be in the range of EUR10 million to EUR13.5 million [42] Other Important Information - The company has cash, cash equivalents, and short-term investments of approximately EUR10 million as of September 30, 2023 [40] - The company has filed 28 pending patent applications across 10 product families to protect its proprietary technology [25] - The company hosted a two-day customer seminar featuring discussions on metal casting, 3D printing, and material development [28] Q&A Session Summary Question: Average Selling Price of Printers - The average selling price of printers is around EUR500,000, but it can vary depending on the product mix, with quarterly averages around EUR700,000 to EUR800,000 [44][45] Question: Pipeline of Opportunities - The company sees increased interest in its products and is confident about growth in 2024 and 2025 based on the current pipeline [46][47] Question: New Customer Wins and System Sales - The company is engaging with more prospective customers, and its products are well-accepted in the market, with over 300 active clients [48] Question: Future Plans with BMW - Discussions with BMW and other clients are ongoing regarding the utilization of 3D printing for future casting and production methods [49][50] Question: 2024 Growth and EBITDA Outlook - The company expects 15% to 20% revenue growth in 2024, with cost reductions in SG&A and aims to be EBITDA neutral or slightly negative in the second half of 2024 [51][52] Final Comments - Management is optimistic about Q4 2023, expecting it to be the best quarter to date due to robust capacity utilization and order inflow [58]
voxeljet(VJET) - 2023 Q3 - Earnings Call Transcript