Shapeways Holdings, Inc.

Good afternoon and welcome to the ShapeWave's fourth quarter 2022 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal Conference Specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Nikki Sachs of Investor Relations. Please go ahead.

Greetings, and welcome to Shapeway's fourth quarter 2022 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the prepared remarks. As a reminder, this conference is being recorded. Before we get started, I'd like to remind everyone that management will be making statements during this call that include forward-looking statements within the meaning of federal securities laws. which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements contained in this call that are not statements of historical fact should be deemed to be forward-looking statements. All forward-looking statements including, without limitations, statements regarding our business strategy, future financial and operating performance, projected financial results for the first quarter of 2023, expected growth, impact of recent acquisitions, new offerings, market opportunity, and plans for compliance with the NYSE's continued listing standards are based upon current estimates and various assumptions. These statements involve material risks and uncertainties that could result in actual results differing materially from those anticipated or implied by these forward-looking statements. Accordingly, you should not place undue reliance on these statements. For a description of the risks and uncertainties associated with our business, please see the company's SEC filing. including the company's annual report on Form 10-K for the year ended December 31st, 2022. Information provided in this conference call speaks only to the broadcast today, March 30th, 2023. Shapeways disclaims any obligation except as required by law to update or revise forward-looking statements. Also, during the course of today's call, we refer to adjusted EBITDA, which is a non-GAAP financial measure. There's a reconciliation schedule showing GAAP versus non-GAAP results currently available in our press release issued after market close, which can be found on our website, www.shapeways.com. On the call today are Greg Kress, Chief Executive Officer, and Alberto Recchi, Chief Financial Officer. And now I'd like to turn the call over to Greg. Greg?

Good afternoon, everyone. Thanks for joining us to discuss Shapeway's fourth quarter and full year 2022 financial results and progress on our key initiatives and strategic growth plan. I'll begin by providing a business update, and Alberto Recchi, our CFO, will then discuss our fourth quarter financial results and outlook for the first quarter. We are pleased with our fourth quarter results, which came in as anticipated, as we delivered 5% revenue growth in line with our guidance. Notably, in 2022, we will be we made a number of investments, which we believe position us well for growth. These include new materials, technologies, and certifications, enhancing our software platform, as well as continuing to refine our focus to those areas that offer the greatest opportunity, particularly enterprise manufacturing solutions and commercializing our software. In 2022, we completed three acquisitions, including the successful acquisition and integration of linear AMS, which accelerated the expansion of our manufacturing capabilities and extended the materials, technologies, and certifications that we offer our customers. Today, we offer 12 hardware technologies and more than 120 materials and finishes, including industrial metals and advanced finishing. And we give our customers everything they need from design and pre-production to manufacturing and delivery across a range of industries. Building on our years of experience and having made these investments, we believe Shapeways provides an extremely compelling solution for a range of enterprise customers. From project-focused engineers to large global enterprises seeking high-quality, flexible, on-demand manufacturing. Shapeways is ideally situated to disrupt the multi-trillion dollar manufacturing industry as manufacturers seek more flexible and reliable solutions to their manufacturing needs. Furthermore, we have a meaningful opportunity to capture business from small and medium-sized manufacturers that are unlikely to invest the capital required to deploy and support their own digital capabilities. Shapeway's core competency is in low-volume, high-mix production at scale, a compelling solution in an environment increasingly focused on mass customization and speed of part delivery. Importantly, we are not limited to prototyping and low-volume production. As our customers scale, we are able to support their growing needs with traditional methods. Through our acquisition of linear AMS, we gain traditional injection molding capabilities. Our broad solution allows us to efficiently capture a larger portion of our customers' spend and to grow with our customers' needs. I'd like to highlight just a few applications which illustrate the demand for digital manufacturing, particularly in key markets in which we operate, such as industrial, medical, automotive, and aerospace. Whirlpool recently leveraged Shapeway's design and manufacturing expertise to create production injection molds, using both traditional and metal additive processes to achieve cost-effective, low-volume production. Also, Lockheed Martin and NASA also started using Shapeways in support of Project Dragonfly, leveraging Shapeways to manufacture flight-qualified parts in support of their drone design. Our pipeline for enterprise opportunities continues to build. with growing interest from customers like I just described, including other large Fortune 500 companies which are seeking manufacturing solutions for very specific needs. We are encouraged by the momentum as initial qualification orders are moving to scale production and as customers expand the size and scope of their orders. The other element of our growth story which makes us particularly excited is commercializing our software. As we've discussed, one of the key differentiators is Shapeway's proprietary software, which digitizes the end-to-end process from quote through delivery. Our software enables us to offer high-quality, low-volume, complex part production, but it is also a valuable tool for global manufacturers, specifically small and medium-sized traditional manufacturers that are not able to invest in the capital and time necessary to digitize their businesses. Our software customers can leverage our software tools and services for capabilities such as file upload, instant pricing, checkout, optimization, and manufacturing fulfillment. This helps them grow their business by enabling improved customer accessibility, increased productivity, and expanded manufacturing capabilities. In short, moving offline processes online enables A more streamlined process increases manufacturing throughput, which should enable software customers to expand their manufacturing capabilities and to capture more customer share of wallet, all without having to invest in hardware. Since launching our commercialized software product offering, Auto, we have validated the market need and enhanced the product. We further accelerated our planned phased rollout with the acquisition of MFG and MakerOS, which we completed last year. We are pleased with the market reception, and in 2022, we realized six times the amount of software revenue from the prior year, reaching $1.8 million. We are optimistic about the continued growth prospects with a meaningful opportunity to capture revenue through SaaS subscriptions, transaction and processing fees, demand generation services, and overflow manufacturing capabilities by Shapeways and other supply chain partners. With regard to our legacy self-service and marketplace e-commerce business, we continue to focus on stabilizing those channels as we continue to see increased competition. We expect to see continued demand and to realize a solid contribution from this business, but our growth focus is on our enterprise manufacturing and software businesses. As we move through 2023, we remain focused on improving our cash burn while prioritizing the initiatives I discussed that we believe will present the greatest opportunity for profitable growth. We believe the investments we have already made and the market validation that we have already completed have put us on this track. We are encouraged by the momentum we have built, and we believe that we are well positioned for continued growth. I would like to thank the entire Shapeways team, our customers, our investors, and all of our stakeholders for the ongoing support. Alberto will now discuss our financial results in more detail.