Shapeways (US:SHPW)2023-08-14 15:04Financial Data and Key Metrics Changes - In Q2 2023, revenue was $8.4 million, flat compared to the prior year and in line with guidance, with strong growth in software and enterprise sales offset by lower marketplace and self-service sales [35] - Gross margins were 40% in Q2 2023, down from 43% in Q2 2022, primarily due to inflationary pressures and a varied product mix [13] - Adjusted EBITDA for Q2 was a loss of $6 million, compared to a loss of $4.3 million in the same quarter last year [36] - Cash, cash equivalents, and marketable securities totaled $24.7 million as of June 30, 2023, with a cash burn of approximately $7.4 million from operating activities during the quarter [14] Business Line Data and Key Metrics Changes - Software revenue increased by 40% in Q2 2023 compared to the same period last year, with year-to-date software revenues recognized at $1.4 million [28] - More than half of the revenues in Q2 came from enterprise customers, with double-digit growth in enterprise sales [8] Market Data and Key Metrics Changes - The company secured two new Tier 1 supplier contracts in the automotive sector, expected to generate over $2.8 million annually for the next seven years [32] - Two significant contracts in the medical sector are anticipated to generate approximately $2.5 million annually over the next three years [32] Company Strategy and Development Direction - The company is focused on executing its strategic plan, emphasizing software tools and services, and enterprise manufacturing solutions [27] - The acquisition of MFG is seen as a key contributor to growth, enhancing customer acquisition and retention through new software features [5][6] Management's Comments on Operating Environment and Future Outlook - Management believes the market is approaching an inflection point in the adoption of digital manufacturing solutions, positioning the company to capitalize on this opportunity [4] - The company anticipates revenue for Q3 2023 to be in the range of $8.5 million to $9 million, with expectations for continued improvement in gross margins [38] Other Important Information - A 1-for-8 reverse stock split was executed to meet the minimum $1 average closing price requirement for continued listing on the New York Stock Exchange [37] - The company completed a voluntary transfer of its stock listing to the Nasdaq Global Market, which is expected to reduce related expenses by 6% to 7% [15][52] Q&A Session Summary Question: Expectations for software sales growth - Management expects software sales to double this year, driven by increased bookings and improved customer acquisition [40] Question: Update on cash burn and future outlook - The company is focused on aligning resources with high-opportunity areas and anticipates significant cash burn improvement towards the end of the year [42] Question: Details on delayed order from Q2 - A key order worth approximately $600,000 was delayed from Q2 to Q3, which would have shown higher revenue growth for the quarter [55] Question: Software revenue in Q2 - Software revenue for Q2 was approximately $740,000, with expectations to double from last year's total of $1.8 million [56][57] Question: Contribution from new enterprise customers - The revenue metric includes contributions from new customer acquisitions, with sizable orders from large enterprise customers [58] Question: Timing for realizing benefits from new contracts - The company expects to start realizing benefits from new contracts in Q1 of the following year, with full benefits anticipated in 2024 [60]