Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
Please consider a small donation if you think this website provides you with relevant information
| Statement |
|---|
| And at 60%, in around $100 million of revenue, between $70 million to $100 million, we can be profitable and invest in R&D and grow because of the competitive edge we’re creating |
| Yet, it was a great growth and fantastic year |
| You can actually do it with gross margins that are a bit lower because you have synergies between the businesses, and you continue with these gross margins to be able to deliver both profits to investors and enhance value and to continue R&D to enhance competitiveness |
| More importantly or no less importantly, our gross margins are growing steadily; by now close to 50% |
| Either we increase our gross margins to around 60% with no acquisitions, then we’ll be profitable and cash flow generating, or we do the acquisitions we are planning and negotiating, as we speak, because the price will be right, use some cash from, of course, the cash we have for the acquisitions, and then being bigger will enable us, depends on the specific acquisitions, to be profitable even in less than 60% gross margin |
| I give a higher weight function to the fact that our gross margin is improving, because this is the key to the door where profits, positive EBITDA, and earnings per share |
| So the revenue growth in 2023 was, to be fair to ourselves, we’re very proud of 29% organic growth |
| If we end up with $10 million, 12 million cash burn a year, with $1 billion in cash, which is going to be used for acquisitions and for R&D, we’re in an excellent, excellent shape |
| In this case, this is an industry player in the space area, and we have successful combined sales to them |
| We are showing improvements in almost all variables of the financial reporting of a public company |
| Yet I must admit with less go-to-market and distribution network the way Stratasys has, which is excellent, but with much more exciting technologies |
| Stratasys has 43%, 44% and it’s combined of mixture of products and materials when in certain areas they have much higher gross margin, which is good |
| Indeed a fantastic year for Nano Dimension |
| Stratasys is a serious company, and I think they have good prospects for the future if they do the right thing, which they’re not doing right now |
| We grew 29%, 30% year-over-year where the year before we grew even faster |
| And the second is you have so much cash on the balance sheet, and you’re profitable, and the cash is growing, i.e |
| Now, the profitability doesn’t only mean that there’s a positive EBITDA, earnings per share, profitability that comes from gross margin, means I have enough money to spend on R&D to stay ahead of my competitors |
| So while we had the cash and didn’t spend it, we decided to spend close to $100 million to purchase our own shares at below the cash value, which improves the company’s balance sheet and enterprise value |
| Great quarter results |
| And we are able to do it, and install it in machines, and improve machines dramatically in so much as maintenance, accuracy, repetitiveness, and eventually throughput |
| And I was successful in a couple of them |
| Because we are very well financed |
| Really great on the presentation |
| It’s not even a variable insomuch as our survivability or ability to grow, our ability to deliver value to the shareholders |
| And my alternatives, which was your last question, are very attractive comparing to Stratasys because those are companies that are more closer to the corner, call it this way, than Stratasys, with technologies that are more exciting than Stratasys to me, to us at least |
| Very good questions |
| Is the strategy to go for it now or, yes, to wait a little bit just to see if they go towards the bankruptcy proceedings, allowing that strategy to fully pay off? Yoav Stern Okay, that’s an excellent question |
| And then when you have so much cash, and you don’t use it, buying your shares depends on its price from your profit is something that makes sense because you’re improving the value on a per share basis by reducing the amount of shares that’s traded |
| That said, being profitable means while continuing to invest in R&D and continuing to develop both materials and process and the software that I mentioned before |
| Now it’s important to grow on the top line, and we will continue to do so, because in a funny way, if you don’t have a top line, you don’t have a middle line, you don’t have a bottom line |
| Statement |
|---|
| So you cannot say there’s a headwind in our industry because, for instance, the defense industry didn’t have headwinds this year |
| You talked about continued burn rate and lack of balance sheet support with your competitors |
| We were 5% below our budget, which we debriefed, and we learned and studied, because as much as I am concerned, if we put a budget of $60 million and we reach $56.5 million or so, then obviously we’re 5% below budget |
| In a certain situation, the defense industry may have a headwind, and our sales in defense will shrink |
| And we are working that according to the budget today, our first quarter, which is usually the worst quarter of the year, first quarter this year is going to be not bad at all, because it’s growing |
| It’s going down from where we were in the midst of development of everything we’re doing today, into 2023 which has went down almost by 50%, and it goes down now into ‘24 by almost 80% |
| You see that during 2023, every one of our peers has lost revenue comparing to the year before |
| Again, we have issues with giving the names of companies that we are selling them, especially when it’s very large transactions |
| Sometimes it becomes a liability on low margin sales |
| So all the competitors are saying they’re shrinking because there is headwinds |
| Those customers will have serious issues to continue and buy from a company that’s in Chapter 11 |
| And all the publics are losing money, and all the public companies have no more cash for more than, at the best case, a year and a quarter in one case, and all the other cases are less than half a year |
| Having said that, I don’t want to go back on the slides but every entity in this business domain that I described to you is losing cash and not having cash to lose more |
| But if we’re assuming with no acquisition, our growth, as we expect, will be lower than 29%, but higher than 15% |
| The only surprise is why are we traded below our cash |
| But it’s a very difficult process |
| There is just, for one reason or another, their revenue in selling into different industries has shrunk, either because the industry is not big enough, or the market is not big enough, or because there were some issues with the sales and marketing, or the product does not fit as a product market fit |
| And this business domain is so full of egos that through the SPAC mania of last year and the years before, the companies got to the point where all of them went down from $10 a share to less than $1 |
| Again, ego issues |
| And the problem is that usually an analyst start to write after their bank has been involved in the transaction of raising money |
Please consider a small donation if you think this website provides you with relevant information