Right, I think we'll get everything kicked off here. Again, thank you guys for coming in and attending. Hopefully, you enjoyed the product tour and the tour of our R&D labs. And thank you for all that are tuning in virtually with the webcast. Just to go through some housekeeping items, here's our disclaimer. You can find this on our website. We filed an 8-K this morning with this presentation, which you can also find on our website. And then here's our safe harbor statement, and we just want to remind everyone, this presentation will contain forward-looking statements. In particular, we are reaffirming annual guidance for 2023, but our company policy is not to comment on quarterly results until we formally report them on a regularly scheduled earnings call. Kind of to that point, I know there's gonna be a lot of questions here, but to continue the flow, please save your questions for our Q&A at the end of the presentation. For the people that are in-house, we have a fun little takeaway here for you. It just shows off our CFR technology and then a fun bottle opener made from our metal additive technology. With that, I'll just kick it over to our CEO, Shai Terem. Okay. Thank you, Austin. And a big thank you for all of you for coming in. Some new faces, but a lot of old faces that are with us in this journey for a few good years now, and, it's exciting. It's exciting to see the progress, and it's more exciting to show you the progress. And as you can see, we're trying to deliver on what we communicated and committed a few years ago. Okay, so what's happening in this world? Last time you tried to buy a car, was tough. Yeah, tried to fix replacement parts for your car. I have a friend with six months wait, his car in the garage. I think a rusting car is still in the garage. It was tough to get parts, right? What we saw in the world because of COVID, supply chain challenges, all the geopolitical issues with Ukraine, really, really tough on the manufacturing world, and I think we've been exposed. We've been exposed, and the supply chains are fragile, to say the least, maybe broken in some extreme cases. What manufacturing is doing around it, okay? We see more and more manufacturers moving to high level of customization, moving to faster cycles of development, okay? We see a lot of onshoring starting. If you look on this chart, which I assume some of you know already, it's the construction into manufacturing. You can see it's more than doubled, most recently, which means there's a lot of new construction to build manufacturing facilities here in the U.S. In Europe, they call it the renaissance of manufacturing. A lot of manufacturing is going back to Europe now. Now, it's not a one-day process. It's gonna take 10-15 years, but manufacturing is coming back. And most of our customers are really trying to take this time to find efficiencies in their manufacturing line, in their supply chain, and digitize everything possible. They really want to take off the inventory overhead and make everything as much more efficient and cheap as possible. In my view, okay, and I could be wrong, we're gonna look in a few years back into this point, and we say, "Okay, that was the inflection point." This is the time where the pains that manufacturers feel all over the world and the capabilities of the solution are coming together, and we actually have a solution that they can adopt and that can really help them to move from physical inventory to digital inventory. It can really help them build real resiliency into their own supply chain. In our view, it all starts on the manufacturing floor, and from there, we're ramping it up. But this is where we focus. We are razor-sharp focused on bringing industrial production to the point of need and being the best tool to the manufacturing floor. I would say most of our business today is coming from manufacturers that are trying to replace metal parts on the manufacturing floor with our solution, and this is our core focus area. It's a huge market opportunity. There are millions of manufacturing floors all over the world. You're gonna see later, we're at about 5,500 already. Huge potential of growth. As you saw in the demo room and in some other areas in the facility, we are going deeper and deeper into someone else's product. Machine builders, automated packaging, sometimes into cars. Scott will talk about it more later. But we see more and more of our solution being used for parts which are going into someone else's product. We're gonna talk more about the Digital Source later today. We're giving them the opportunity to even monetize about it, even not on their own floor. It's gonna be on their customer floor. We are slowly but surely starting to touch mission-critical applications in aerospace and defense, especially with the FX20. You saw the capabilities. Some of you saw the ultimate part. I'm going here with the continuous fiber. We have more and more aerospace companies testing to replace structural parts with our solution. I went to see one of our customers. They're doing actually a manned drone, so it's a drone that has a person on it. Structural parts from Markforged with continuous fiber are built in this drone. How are we doing it? Our solution is called the Digital Forge. It's a platform that combines hardware, software, and materials, working together to certify mission-critical application. It's part that if broken, something bad happens, if it's on the manufacturing floor or in a drone or whatever it is. By now, we have about close to 10 systems, more or less, 10 printing systems, close to 30 materials, and a lot of software capabilities that drive the reliability and repeatability of the solution. On the software side, enterprise capabilities, simulation capabilities, automated quality assurance capabilities, and I'm gonna talk more about it later. It's a platform that must work together. It's a closed system that enabling our customers to certify the part they need at the point of need. Now, if you think about it, and I think after yesterday, it's even more clear, we are not trying to build just another printer. We are trying to build the largest network of connected digital factories, because each one of these platforms is like a small mini factory. It's remotely controlled, secured, automated quality assurance already inside, and from here, we can control manufacturing or production of industrial-grade parts in every corner of the world. So we're trying to build the largest network of connected digital factories. And I'm very happy to share with you that this network continue to grow. We are going into more industrial solutions, so the printers are getting bigger and heavier, but the network continue to grow. More and more sockets, more and more customers printing industrial-grade solution right when they need them. What's more interesting is that the utilization of this network is growing faster. Okay? So not only we are adding more and more sockets, more and more capabilities, our customers print more and more parts on our solution. You can see the utilization is growing faster than the network itself, which in time will get the return revenue to bigger and bigger. How are we doing it? What's the key difference? It's software. Okay? Markforged is much more a software company than a hardware company. Now, it all must work together, but as you saw on the demo room and in the printers, we have a lot of sensors inside, and we collect a lot of data all the time. The more data we have, we make the solution better. What better means? We can double the productivity, we can shorten sintering cycles, we can overcome sometimes mechanical problems through software. The better the solution gets, the more reliable, the more repeatable it gets. Our customers can print more and more parts, more and more applications. Guess what? We have more data. We have more data, and the solution gets even better. This virtuous cycles continue on and on, and on, and we are taking it now to the next levels. The FX20 is about 100 sensors inside. From each printer, from each FX20, we collect terabytes of data. Terabytes. The objective is to utilize them in the next few years, get the solution better and smarter. But we are just getting started. We have almost 4 new product lines, which will drive our growth in the years to come. Between the FX20, which is in just the beginning, the first year, basically, or the second year now, which is aiming aerospace applications, high-end applications with high temp materials, with continuous fiber. From the PX100, that is aiming mass production, and you're gonna hear later from Scott around the success in automotive, in defense, medical applications. Complementary solutions, both of them are complementary to our existing, to the old Markforged. The Digital Source, which I'm extremely excited about, we're gonna talk more about it soon. And I'm very proud in all of you that no one tried to cheat sheet and went behind the black curtain because there's another solution coming. I hope end of this year, if all goes well. But these are four new product lines that will drive our growth in the next few years. So the bottom line is, at least in my view, that we are ready for our next phase of growth. We do need the macro to get a little bit better. It's tough headwinds currently. Capital equipment, tough days, but we have an expanding product portfolio, four new product lines. The return revenue continue to grow, and as you can see from the charts that I showed you, utilization is growing faster than the network itself, which means return revenue will have a higher contribution into our total top line. We have a great team, I think one of the best in the industry, and you were able to meet some of them today, but very strong team that can execute on our plan. We have a channel network of about 100+ value-added resellers worldwide. We are selling by now in over 70 countries, so we can really explode with this kind of network. And not less important, we have a very strong balance sheet and control. We don't need to raise more capital. We can control our own destiny. So at least from my perspective, we are ready to the next phase of growth. With that, I would like to invite Rustin, he is the President of the Americas region for us, over 50% of the business, and he will share with you some of the experiences with our top customers. Thank you. Sure. I've got to tell here. Our panelists, and then Michael, can you turn this on for me? You guys may need the mic. I'll take this one here. Yep, we'll have each panelist with a mic. Here you go, Jeremy. Fantastic. Join us here, and then there we go. We've got the entire crew on the webcam as well. Can you guys hear us okay? Yep, we can hear you. All right, very fantastic. Yep. Very good. We'll go ahead, and we'll get started. As Shai had mentioned, my name is Rustin Dring. I'm the President of the Americas here at Markforged. I've been with the organization for almost two years and have really enjoyed this exciting journey that we've been on. For these folks, I get to work with them every single day. These are customers, but also, you know, very strategic business partners that have been helping us really build out the strategy and, you know, be successful at what we're doing. To get started today, obviously, wanted to kick off with some quick introductions. So, can you move that so the panelists can read the companies that they're from? It's okay, it's okay. So first and foremost, very simple question to get us started, just to make sure that all of the investors in the room understand the, the representatives here on our panel. I'm going to ask a question, I'm going to have each one of the respective panelists respond to it, and then we'll break down into some more specific questions. First question, can you please introduce yourself and give an overview of your current additive manufacturing operations with Markforged? Please highlight some specific applications you are leaning on for additive manufacturing using our technology, and we'll have our guests on t.e phone start first. Kelly from Dana, can you please kick us off? Hi, sure. My name is Kelly Puckett. I'm with Dana. My role is Senior Engineering Manager in Advanced Manufacturing. I've been in that role for about 4 years and with Dana for about 25 years. My role within Dana is to manage our global deployment of additive assets. That includes day-to-day operations as well as evaluating new equipment, new technologies, and how we might benefit from them. Some of the applications that we target for additive, I would say, well, let me back up. I forgot the middle question there, Rustin. We currently run 25 printers globally in our fleet of Markforged printers. Those are distributed across the globe in regions. Our distribution model is really kind of a hub-and-spoke type model, where we print in regional print farms and then push those out to individual city locations as need requires. We run a pretty even split between Markforged Industrial X7s and then the Metal X systems. I would say the vast majority, maybe 85-90% of what we print on the Markforged equipment, fall into the tools, fixtures, and gauges category. What that really is, those are items that we print for our production processes, our production plants, that enable them to make production. Whether it's a tool or a fixture that's on the production line, it's assisting us in the manufacturing methods that we currently use. Did I capture all those questions, Ruston? You did. Fantastic. That's a, that's a great start. Thank you, Kelly. We'll now move down to Alex with Musashi. Hey, good afternoon. My name is Alex Bond. I'm the Senior Engineering Manager at Musashi Auto Parts in Battle Creek, Michigan. I've been with Musashi for the past 18 years, and what Musashi does is we manufacture a number of differential gears and assemblies for customers such as Honda, Toyota, Ford, and Stellantis. And in the past 40 years, we've grown to an output of approximately 15 million parts per year, and we have a presence in over 34 countries. With the Markforged system that we just invested in this year, we've been utilizing that to manufacture a number of end effectors and grippers, primarily in our hot forging process with the Inconel material, stainless steel and Onyx for a lot of the CNC applications, and then some A2 and H13 tool steel for our CNC and hydraulic clamping operations. And then one other application beyond that is we start looking at Onyx and TPU for protecting the products throughout the processes. So if we have something that has a precise gear or something that's tight tolerance, we want to protect it, and the TPU is a very financially feasible option for ensuring our customers get good productso Love that. Those are some great application use cases. Thanks, Alex. And now to the team at Ford. ... Hey, Rustin. My name is Jonne Messer. I'm here with Jeff Fisher. We run the additive lab here at the Sharonville plant. We started printing in about October of 2017, but when we started, we knew absolutely nothing about printing, modeling, the technology, nothing. We just knew we had a problem, and we wanted to try to fix it, and once we figured out how to do this, we got the AM bug, and we've passionately pursued everything additive since then. We went through school at Cincinnati State, so our results weren't just a guess and a giggle anymore. We actually knew why things were happening. We had the opportunity, of course, through a center of Markforged University, and we learned so much from that university. We took tons of tidbits of information that came out of there and applied them to previous designs we had. Jeff and I started working in a little bitty broom closet in the back of the plant, and it was just the 2 of us printing part-time, and we had 2 little printers. Since then, we've moved into a lab, 2,000 sq ft lab. We have 4 full-time employees running up here. We have 58 printers utilizing 2 technologies. We have 35 Markforged printers that we're utilizing at this time, and we have a catalog of over 2,200 parts that we use here at the plant. Unbelievable, amazing story. And again, just seeing and hearing that growth and actually witnessing in real time has been fun to watch. We're going to ask both from Ford a few more questions here as we work into this, but they've been on a really exciting growth journey here with Markforged. So let's now transition to some of the panelists that are actually here with us today in person. So, Jeremy, same question to you. Yeah. Hi, I'm Jeremy Haight. I'm with Vestas Wind Systems. If you're not familiar with us, we are the world's largest commercial wind turbine manufacturer service, and we also offer construction services. Our venture with Markforged started very early days, 2016 timeframe. We've actually built out a comprehensive program around additive manufacturing, and Markforged has been kind of the tip of the spear for us in launching that. We're largely leveraging it for manufacturing enablement, but we're planning to expand that also into our service business units, as well as our construction business units. We have one cohesive network of systems, digitized inventory, so that we can be faster reacting to issues with our products or with our processes in the manufacturing. Thank you. Scott? I'm Scott Burk, the CEO of Azoth. Azoth is a production manufacturer utilizing additive manufacturing for several different industries. We're utilizing the binder jetting technology that, when they acquire Digital Metal that they have, and are anxiously awaiting the arrival of the first PX100 because, yeah, we have a lot of orders to fill, and that machine, we're very excited because the work that we did get, you know, was utilizing their current technology, and the PX-1, PX100, I think, is 5 or 6x of what I currently have, so profitability. You know, once I get that thing, we get it running right, it'll be good. Fantastic. Thank you, Scott. Several of the binder jet machines. Very good. And Gary? My name is Gary Nalbandian. I work as a senior manufacturing engineer for Triumph. We're an aerospace company, and some of the additive manufacturing that we do is for assembly fixturing, protective covers, manufacturing tooling, and engineering and production form, fit, or function testing. We also do production parts as well. So the additive process for us, you know, affords productivity improvements, reduces the cost of poor quality, and reduces, in some instances, eliminates some turnbacks. We've had a lot of issues where, in the past, we've had quality issues with surfaces on, say, pumps, and they get, they get kind of scratched up and dented as they go along the process, if you're not very careful. What we do is we make a cover that gets put on that and protects it along the way. We just started in it. We have two machines, two small ones, and then we just bought the FX20. Fantastic. We're just starting out. Very good. Well, we can, we can help with that. So first and foremost, obviously, all of these customers, a lot of similarities in common. They've scaled into multiple printer operations. They're finding a lot of success with the Digital Forge. Couple of unique applications that you talked about, tools, fixtures, jigs, and Scott will share a little bit about some of the end-use parts that they're also creating with the metal binder jetting technology. So Jeremy, I got a couple more questions just as a follow-up to some of the things you shared. Vestas obviously has a global network of Markforged printers, manufacturing at the point of need. Can you help the audience understand the value this delivers to Vestas in the terms of cost savings, time to market, recovery when a machine is down? Yeah, absolutely. So for us, it's really about the agility that it enables us to have. For us, if we have product delayed going out the door, that equals liquidated damages, that equals poor reflection on us to our customers. And again, we're a global company. We work with government entities, we work with private equity, so it's, it's a pretty big blunder if we have missed deliveries. With Markforged, what we've been able to do is for specific tooling, production aids, and things of that nature that are critical to guarantee product quality moving out the door, you know, the conventional procurement process could actually delay NPI or new product introduction events by weeks. You know, we've seen instances where we've been able to turn over tooling within a matter of a day or two, and guarantee that that production line goes up and starts on time, right? So we're putting product out the door as we committed. We've taken that a few steps further, too, with design elements, right? So actually integrating it into our product architecture. Again, we are devising and operating a program, incremental steps. First is production, you know, facilitation, and then second is product architecture, actually moving additive into our product. Fantastic. Fantastic. And with that multiple printer deployment, can you talk a little bit about how Markforged's software portfolio made that easy for you to manage all of those globally, and just how that's accelerated your guys' ability to scale and grow? Yeah, absolutely. I, I would actually almost say that it wouldn't be possible without it. You know, we being, again, a, a fairly large corporation, 30,000 employees, most of our engineering and design happens overseas. We've got design houses in India, Portugal, United Kingdom, here in the US, so it's all very splintered and separated, but we have manufacturing and service operations in literally every continent of the world, with the exception of Antarctica. So without the ability, the connectivity, and the ability to maintain a digitized inventory and distribute that to the point of need, we wouldn't even be able to have the program we have. Yeah. Fantastic. Thank you for that. And, you know, obviously, as you were putting together this program, thinking about building an additive platform for Vestas, can you just maybe share with the audience, you know, why did you make the Markforged brand decision? Yeah. Choosing Markforged, the down selection was actually fairly simple. Markforged, they're renowned for reliability, but also add to that the ease of use, right? Because again, we don't want experts... We're in the wind turbine manufacturing world, right? We're not an additive company. We don't want to have to have experts in every region across the world. We needed very simple, you know, methodical, workflow processes. So the ease of use was a big factor. The reliability was a very big factor. The quality of parts was probably just as important as all the others I've already mentioned, and then the interconnectivity capabilities. For sure. Yeah. Fantastic. And again, you guys have been on your journey with Markforged for quite some time now. Obviously, a lot of exciting things coming here in the future. Can you just maybe talk about the next 1-3 years between Vestas and Markforged, and where you guys are taking this next? Yeah, absolutely. So, again, currently, we're in kind of what we call our evolution one phase of our program. As we continue to grow this out, that aspect of that phase of the program will continue to grow into, again, all of our adjoining business units, but also into our supply network. So we're... I know we're going to talk about that a little bit later, but part of this venture, too, is to enable us to be able to communicate with our downstream suppliers so that they are actually taking qualified, approved parts to use from our digital inventory to print on their, at their location. And then also enabling the service and the mobile, mobile fleet as well. Similar to what the military is doing with deployable 3D printing, we're planning to do exactly the same thing with our construction and service divisions. Amazing. Thank you for that, Jeremy. Really appreciate it. All right, very good. We're going to transition, and we're going to ask a couple of questions to the Ford team. So Jeff and Jonne, we will come to you guys next. In the opening remarks, you guys talked a little bit about your overarching printer fleet. I think you guys said you had roughly 50+ printers. Of those, 35 of them are Markforged. One of the applications that you guys were able to find a high degree of success with early on were some of the gripper sets and replacements that you guys were able to, you know, build on. Based on this application, how much money do you anticipate saving in your first year, leveraging 3D technology on your Markforged machine? So our first year, mind you, your team came in, and they helped us find different avenues in which to get our ROI. This is the one we chose to start off with, but we're going to save $3.2 million just doing the gripper sets alone. But we still have three other avenues that we can pursue savings, which we're going to go and capture as our team grows. So it was pretty amazing. Once you add in the other avenues, we'll save over $5 million in a year. Unbelievable. Amazing. When you think about those particular gripper sets, obviously the cost savings was one of the drivers. Can you share with the audience a little bit about some of the challenges you were dealing with when you were buying those spare parts from the OEM and the lead times that you guys were used to? Sure. When we would go to order these parts, the gripper for the Felsomat machines, we were seeing 12-week lead times on these. And since 2020, the prices of grippers that were $300 are now $1,700 to order that same set of grippers. So, the cost reduction alone is just crazy, and then it's a 95% reduction on lead time. Is there, is there also an inventory component to that as well? In an environment that a machine's down, I'm assuming that you guys had to plan for spare parts and carry additional inventory. What type of inventory reduction are you guys expecting? ...So all, on all of our composites, we're going to begin print on demand. And also because of how inexpensive they are, and we go through and do the testing to see how long they're going to last. So if it's a part that's only going to last 30 days, we'll have line side spares. That way, you don't have any tax issues with the parts being on the floor. And then our metal parts, we'll keep those in stock and just have those order on request. We'll keep a set in stores, and then we will have them come back out. Our goal over the next year and a half is to reduce our storage inventory by $3 million? Yeah, actually, when we started deep diving our general stores inventory, we carry a billion dollars in inventory globally, and seven hundred and fifty million of that is in the US alone. When we did our crib crawl here to determine what we could print, we were right at about twenty percent. So conservatively speaking, to put it in perspective, we conservatively told ourselves we could save ten percent of all of our inventory in stores, which would enable us to produce the savings in the coming years of seventy-five million dollars. So we're really eager to get started with that and, and start proving that out. Absolutely amazing. Thank you, guys, for sharing that. One other question for you guys. Ford, over time, has made large investments in other additive manufacturing technologies. How is the Markforged solution different from the other competitors that you've worked with in the past? So as we spoke about before, we've tried many other solutions in the past with basic hobby printers, PLA, ABS, TPU, eventually moving on to some other technologies with stronger material. While our go-to hobby printers and those other printers solved some solutions, we were leaving a lot of money on the table because of strength of material. So after engaging with Markforged, we quickly learned the value of Markforged's solution, not only for our polymers, but also our metals. The software technology also, the Onyx with the continuous carbon fiber, provided us with the strength we were looking for, outperforming everything else that we had tried thus far. The Metal X, we are super excited about that. We were experiencing a 20% return on our last metal venture, which was horrible. So now we're enjoying 100% return on our Metal X print. And then, of course, the solution Markforged provides us is fully scalable throughout our organization. We'll be able to print on demand from anywhere to anywhere in the United States or overseas throughout our organization. The cloud-based digital inventory is going to be instrumental in that, where we can pull our parts off the cloud from any location around the world and print on demand. Thank you for that, Jeff. Very good. Based on the recent successes that you guys have had there in Sharonville and the applications you guys have been able to identify, do you anticipate growth of Markforged across your other North American manufacturing sites and globally? Oh, absolutely. Our vision, of course, like I just discussed, was, was first and foremost, digitizing our inventory, with the Markforged fully scalable solution. Printing on demand, of course, is, is, is the option for that. The digital cloud-based parts catalog, this eliminates the need for us to have to have inventory of these parts, saving on floor space, cost to purchase the parts, annual taxes, and the manpower to manage that inventory. That's huge. Our other facilities will be able to print on demand from our catalog to our location, or we can print those straight to their location, and that also eliminates all of your freight costs and lead time. We feel the savings, like I said, at our facility and throughout our organization. We're probably looking at a future close to $100 million in savings we're striving for over the next three years. I love that. Thank you very much for both of your perspectives and sharing those application stories with us. At this time, we're going to transition back to Kelly and the Dana team. Dana's been a long-standing customer with Markforged, who's continued to drive expansion and widespread adoption of our technology. Kelly, can you quantify how many parts are in your AM library today, and briefly describe the value you're seeing from Markforged through the lens of time to market, cost savings, and your overall return on investment? Sure. So, just double-checked this morning to make sure the number hadn't grown too quickly. But, as of right now, we're looking at just over 12,000 parts in our digital library. That represents a wide variety of items to be printed around the world. The benefits, I think several of the panelists have already mentioned, you know, the same things that I would say. You know, the time to market, both internally and externally, and what I mean by that is, externally, how fast we can get a new product to our customers. But also internally, when we can commission a new piece of equipment faster, when we can handle a design change faster because we can accommodate those changes in geometry with printed items rather than machined items. You know, all of those tend to find their way to our bottom line. The ROI, I would say, on an individual machine for us is well inside of a year, without getting more specific than that. And we see value in growing that across all of our locations. ... Absolutely. Thank you for that. Similar question that I asked Jeremy. So obviously, Dana, a global organization with printers deployed around the world, can you just talk a little bit about how the Markforged software solution made that easier for you guys to scale and increase your reach? Oh, sure. It does make it very, uh, simple to share data, when we're really all, all using one library. Printers that I have in Italy, we can design it in the U.S. and print it in Italy or just the opposite. That's just one example. Sharing data is very easy. We've talked about, you know, the library a little bit, but from an organizational management standpoint, we also have digital visibility into all of our machines globally. With a click of a screen, I can look at, you know, the current state of a machine anywhere in the world. I can see when it's running, I can see when it's not running, I can see when it needs maintenance. You know, the list is fairly long in terms of connectivity that we have across the Markforged platform. That is one of the key components to selecting Markforged as a partner when we did back in 2018. Absolutely. Just to continue to play on that one, so when you think back to 2018, as you were standing up and building out your additive program, can you talk a little bit more extensively about the reason why you chose the Markforged solution? Oh, sure. In 2018, the... Probably the first hook, if you will, that we bid on, was the ability to choose composites and metal from one company. That was a major filtering factor in starting that decision-making process. It shouldn't be minimized to understand that having the same basic software knowledge, very simple to use, very straightforward, that crosses both composites and metal, is significant. We don't have to have our people learn entirely new systems when Markforged adds another technology or another capability. That was a significant player in the decision-making process. We already mentioned the global library, so that's a bit already. And then another panelist also mentioned it, but it, it's well worth repeating. The quality and reliability of the prints that we experienced really sold us on Markforged as a supplier of the equipment. We have an extremely high success rate on our prints. First time through is excellent. And when you're printing items that are either for repair or for, you know, short-term design changes, the last thing you want to do is have to print in iterations, and we typically don't have to do that with the Markforged systems, like maybe some other systems. For sure. So I think if I heard you correctly, their total cost of ownership was also something that was a part of your selection criteria? Oh, for sure. And it's almost hard to count the number of ways that soft costs enter the calculus, right? The easy comparison is the purchase pricing component versus the cost of printing it internally, and that is a lower cost. When you add to that, you know, I no longer have to issue a purchase order outside to order an item. We no longer carry that inventory. Another panelist mentioned lead times. You know, we're talking about lead times that go from months to literal days. And so, you know, all of those have business costs, and they all get calculated into our total cost of ownership. The purchase cost of an individual item is probably the smallest part of that benefit. Absolutely. Thank you very much for that, Kelly. Much appreciated. So now transitioning back to Musashi and Alex. Alex, when we were preparing for these calls, you talked a little bit about, you guys see the Markforged printer as a tool on your manufacturing floor. Can you speak just briefly to the audience about the utilization rates that you guys are seeing on your Markforged printers? Sure. Yeah. So, we're just starting along this journey, so we've been using the system since April. But since then, we're already utilizing that system about 60% of the time. Now, that's seven days a week, so the system is so robust and so reliable, you basically set it up to do the job that you have in your system, in your queue, and you hit go, and it'll run overnight or run through the weekend, and there's never really any issues with that. So it's a very reliable and robust way of manufacturing what was previously being outsourced or what we would try to manufacture in our tool room. Absolutely. And when we were speaking, it sounds like you guys have been able to identify a couple of key applications. Can you just share with the audience what a couple of those key applications are and some of the savings that you've seen on those particular parts? Sure. So since we started, we've identified over 40 different applications, and that's still continuing to grow. But for a large part, the end effectors and grippers on all our CNC machines, and this has been mentioned by other panelists as well, we've seen just remarkable savings, well in excess over 80% or 85% savings on that. Lead time, as mentioned before, was typically 6-8 weeks, if not longer. But we can turn those around in, you know, 1-2 weeks if it's metal, or if it's composite, same day or worst case, next day. So a very big savings in terms of that. Now that you're starting to see those types of benefits and the impacts, can you talk a little bit about kind of the expansion that you guys are seeing into some of your other facilities, whether that's up in Ontario or d own in Brazil? Yeah. This journey was a bit of an interesting, of what I like to call convergent evolution. While here in Michigan, we were looking at additive machining, at the same time, our Arthur, Ontario facility was looking at it, and we weren't in direct communication, but we both ended up with Markforged solutions. We ended up pushing for the Mark Two and the Metal X systems here, and then they went with the X7 system initially. Now seeing the results that we are getting, they're asking: "Hey, you know, can you send us your data? Send us, send us your results, and we want to invest in a Metal X system up there in this next fiscal year." And then on the side as well, one of our facilities in Germany has recently invested in a couple of Mark Two units, and as well, one of our Brazil plants is in discussions about Metal X. Very good. Thank you for that, Alex. When we think about the next 2-4 years, as you guys continue to build out your additive strategy, can you just share with the audience kind of what your roadmap looks like? Yep, exactly. So, as I mentioned, we're at the beginning of this journey, so getting into that Digital Forge package, getting into that digital library or inventory system is something we're just starting to dip our feet into. So, the intent is to link all the facilities and print on demand, thereby reducing, you know, inventory that everyone has on hand. And eventually, I think it's going to be, depending upon the expertise of the various facilities, certain facilities will produce certain products and be able to design for other facilities. So, it's looking a very prospective, a very collaborative future for us. Very good. Thank you for that, Alex. So now we're going to transition to Triumph Aerospace, and we're going to ask Gary a couple of questions. So, Gary, when we were talking, obviously, you've been a long-standing Markforged customer. You've used our X3s and our X7s. Here recently, you purchased our, our latest and greatest, FX20. Can you share with the audience why you acquired this technology and the value that you're seeing from this machine? Sure. We purchased the FX20 as an upgrade to the X3 and the X7 that we have. We saw that the FX20 used the same design platform and common materials, and from a growth standpoint, this made the most sense. We printed nearly 1,400 semi-unique parts to date and expect this number to double by the end of next fiscal year. So, it's looking promising to expand as we go. Perfect. Yeah. Even though it's a short window right now. Yep. 1,400 parts, that's amazing. You've had the machine for how long? Three months, yeah. Just about... I'm sorry, three months, yeah. Very good, that's a tremendous amount of utilization off a new piece of equipment. Exactly, yeah. When you think about acquiring a new technology, obviously, you guys had multiple operators who were very skilled and up to speed on how to run an X3 and an X7. Exactly, yeah. When you brought that new FX20 in, can you just talk about the user experience? Was it easy to use? Did it inspire confidence? Was it something that allowed you guys to scale more quickly with that technology? Yeah, well, you basically summed it up. The FX20 allowed us to use all of the same platform materials, and the support structure was the same. And the growth with the Markforged products makes it easy for us, so. Very good. Thank you for that. When you think about some of those applications that we were talking about earlier on, you talked about a very delicate manufacturing process where you're creating some custom guarding, for particular things that are running down your assembly lines. Before you used Markforged, what happens to those parts when they get nicked up? Do you guys rework them? Do you scrap them? Well, some of those parts can't be reworked because there's tight tolerances in the surfaces. If it's a very small scratch, you can certainly you know buff it out and continue on. But if it's a large scratch, we have to basically scrap the unit. So, with the covers and the way we designed them, we started off. I guess, like, right after lunch, we had an issue with a pump, and we actually designed the entire cover and had it implemented by the end of business, by the close of business, so it was pretty successful. Absolutely. So we're excited. So the customers, too, because, you know, they actually are buying those covers now from us, and we're selling them as a product, so it's been nice, yeah. Very cool. So you were solving a problem, but that allowed you to create a new revenue stream for yourself as well. Yeah. Yeah. Very good, very good. Based on your current success with Markforged, what does your next 1-3 years look like from an expansion perspective? Well, like I said, we're looking at purchasing probably another FX20 because there's some materials that we're using in the high-temperature plastics, and we're trying to get into that market. We do have a requirement for high temperature, and I think that would move us in that direction. Yeah. Very good. Thank you for that, Gary. Lastly, I want to spend a little time with Scott Burk. During the introduction, Scott had shared that he's the CEO of Azoth 3D. Just a little bit of a background-based question. Scott, can you please share with the audience, you know, your personal background and your experiences in the world of manufacturing, and why you were interested and inclined to start Azoth 3D, really focusing on metal binder jetting and additive manufacturing? Sure. Hello, can you hear me? Hello? Hello. Check, check. Check, check. You on mine? Good. Hello? Hello. There you go. Oh, okay. My background has always been in manufacturing, automotive, mostly, in that industry. So high volume, metal manufacturing, powertrain plants, and servicing, you know, anybody who's making anything in high volume. I have companies that service their subtractive manufacturing needs, like John Deere and Magna and General Motors and Ford. I supply all their cutting tools and manage the technology, the subtractive manufacturing technology, with people and products at their facilities. We manage about 260 facilities, 12 different countries. So understanding subtractive manufacturing in high volume very well, that's been my whole career. And then the company we've built, I believe that we're some of the foremost experts in subtractive manufacturing because of the customers that we're doing it for and the performance and awards that they give us for doing it well. So thinking that we're experts in subtractive manufacturing, I know there's a technology, additive manufacturing, that's going to come replace it at some point, depending on the technology and the part and what we're looking at. So we set out on a journey to become experts in additive manufacturing as it pertains to metal as well. So when our customers, whether they have plants full of CNCs or plants full of FX20s and, you know, PX100s, we'll have the knowledge to service those machines, as well as be able to run and have the expertise in additive manufacturing that we do in subtractive. So that's how we started Azoth. As somebody that's a subject matter expert on CNC machining and subtractive, can you just share with the audience what are some of the benefits of additive? Well, I think those are just too easy, right? I mean, it's just flexibility and mass customization, you know, lead time. We actually, for a lot of our customers, started what we call TOMO, Take One, Make One, where it's the leanest supply chain you can have. As soon as you take something, your printer starts printing it, and, you know, then it's, then it's there. You take one, make one. It's not take one, RFQ, place a PO, get it shipped, received. It's take one, make one. I'll tell you, after hearing about Sharonville, I'm going to go buy an FX20, a couple of them, and go to every automotive assembly plant and replace every one of their gripper fingers. That's brilliant. I mean, that's perfect. That's the perfect material to replace every one of those gripper fingers. Less weight on the robots, too. Long longevity of those bearings. Very good. So, Scott, I don't want you to have to give away the logos, but you've been doing a lot of work with some very keynote automobile types of companies. One of the things you guys have recently been able to do is actually take an additive part through the PPAP process. Can you help the audience understand what that is and some of the challenges that exist in that space? It's a very difficult process. Anybody who has ever tried to supply the automotive industry, because it is such high volume, it has this holy grail where everybody wants to supply to that industry, of course. But the amount of traceability you have to have to pass PPAP, Production Part Approval Process, is a tremendous process to go through. Several binders, several repeatability, I mean, everything you can imagine. And yeah, we took our first piece through. It was, you know, going to be on a commemorative Cadillac, the last manual transmission, so that we made a beautiful emblem to put on top of that. And we were so proud because it was the first additively produced part, metal part, that passed PPAP. Since then, we've, you know, General Motors, it was a real eye-opener for them, you know, about some things that we could do. Of course, the other, Ford and Stellantis as well, have really started expanding what they're looking at, that the additive can supply. I mentioned we're... I think binder jetting and this technology is very disruptive to the MIM, metal injection molding, industry. Right now, with the PX100, I think we'll be disruptive up to about 150,000 type volumes. Right now, I think I can be disruptive up to about 100,000. I would say, depending on the size of the part, between 50,000 and 75,000 is where we can really be disruptive. And when it's time to market is when we're really, really can outperform MIM, because you don't have to make a mold every time you want to change a feature or have an idea or anything. You know, we can mass customize. So, you know, we started with the binder jet. We were making all kinds of watches for Shinola, Tom Ford, and we were running all these different prototypes, you know, on just running prototypes with our machines. And then add some low volume. They said, "Hey, we know you prototype this, but could you run like 10,000 of these in this time frame and get the same level of quality in a prototype and a manufacturing on the same machine?" So we did, and then we were really excited about that. You know, we're really can make some, we can really make some volume. And we're very successful with the volume, I think, because like I said, our background is manufacturing, and now we got this really new cool tool, you know, this 3D binder jet printer. That's just a, you know, a great new tool for manufacturing. Whereas some people said that, you know, "Well, binder jet's never going to be production capable or this or that." I strongly disagree, because we're doing it. And I think in some senses, it did fail, 'cause some of the other machines and platforms that we have can't do that, can't get to that level of acuity and fidelity that the Digital Metal machine does. You know, we're making everything from mag releases for Barrett 50 cal sniper runs, small runs, specialty Delta faucets, they're stainless steel. We recently won a really cool award where we took a 47-piece design for the military for a heat exchanger, and we got it into one piece in a fraction of the size, and it actually won a Powdered Metal Industries Part of the Year. We made it on the Digital Metal machine. Every part that we've PPAP has been on the Digital Metal machine, and haven't been able to get that level on any other platform, and that's why even though you know, so many, there's so much noise out there, you know, with a lot of different things and a lot of different machines, we're firmly into the Digital Metal. And see that when the other, our competitors were losing their parts, and we were picking them up for General Motors, I mean, it was hilarious. At Rapid, right? They were over in your booth looking to buy one of your machines because their machines couldn't meet quality, and we were just eating their lunch. So yeah, we have a lot of cool things, but it's the coolest thing is when our customers start thinking additively, when they design for additive, like that, like that heat exchanger. When you think, "Hey, what is it that we need for this part to really work?" And when you get our customers start thinking in that realm, then the value that you give them is so far greater than any CNC or machine could give them, you know, that, that it's, you know, anything you think now, you can make. We took a five-piece design for a safety belt harness and converted it into one. You know, with the honeycomb, we could really get the weight down. It's not heavy. It's a beautiful part, and it'll be the first safety critical part made additively, you know, in the automotive, automobile market. That's why I was telling Shai I had to purchase one of those destructive machines because I have to... every time we run a furnace run, of course, we have to destroy that seat belt and have all that traceability. We're really, really excited about some of the things we're doing with the military, about with the government. I mean, we had Floyd Rose. I don't know if Floyd Rose used to make the guitars, Eddie Van Halen. He came up. He has a whole line of bridges. I don't know anything about guitars, but he makes bridges and makes them crazy volume, and he has this whole bespoke line, like 40,000, he thinks, a year. So, you know, we're going to take on that production. So we're doing. I would say, you know, we're showing it's production capable. I'm very encouraged with the PX100. Like I said, that's going to be like 6x. For us, you know, it's we're doing all this with 4-head printers. I mean, when we get to that page wide, like I said, for us, it's a road to profitability because everything I've quoted and, you know, everything we're doing is based upon the speed and, you know, the costing of the machines we have, and this machine is six times faster, so. You covered a lot of different verticals there. I know you guys have also been very successful in some medical applications as well. Can you just share some of those stories with the audience? Yeah, that's, we think that's a really exciting space for these machines, specifically the Digital Metal. We're able... It's the only machine that we can get to that level of quality. But like I was saying, these, you know, Intuitive Surgical, everybody knows that the da Vinci, all that came off of patent. Everybody's jumping in that game and wanting to get into, you know, the tooling and all those little stainless steel cams, small, intricate pieces at the end that are used for surgery. We just made 15 designs of those and are hoping that, you know, we can be successful and get that. That market's amazing, and it's made perfectly. In my mind, that is where we really want to disrupt MIM. But at the same time, MIM is some of my biggest customers now. The MIM industry, who doesn't want to make 50,000 of anything, 200,000, they walk away from those jobs all day long because they want to make 2,000,000, not 200,000. You know, they come to me, and so they don't have to walk away from those, and they have a different solution. So I've literally disrupted the industry and made several, several of them my customers as well. So but, you know, the digital, that, that machine is unbelievable. I mean, you've seen it in my... I mean, we've run that thing. I mean, at one point, we were in that thing 24 hours a day for almost 8 months, and it never even burped, you know? It just kept a-humming. Really, really amazing. Very good. So I think you might be in the process of answering my next question, but I'll ask it and give you a real opportunity. So compared to other metal binder jetting solutions that you've used, what makes the Markforged solution stand out from the rest? For the Markforged version, I mean, if you just look at them, just aesthetically, it's much different. You got, you know, the granite, granite counter there. You got the, all the latest in Siemens controls, linear bearings. I mean, that thing is just a tank, compared to any other machine you look at it. You look at... You know, I, I'm not going to talk bad about Desktop Metal. You look at that machine, it's, it's flimsy. I mean, I mean, I could bump into it too hard, and there's going to be a dent in it. You know what I mean? There's, there's, there's rubber belts and pulleys. You know, it's not linear drives and motors, and, you know, it's just, it makes a difference. So when you're trying to hold ±40 microns, that difference matters. You know, what you can hold and, and the acuity of that machine. And the technical support that we've gotten from that team, you know, that team is, anytime, anytime at night, anytime of day, they've been able to answer and have a great, great track record of solutions for us. You know, giving us good advice and, you know, really helping us make things happen. Azoth is relatively new on the journey. You guys have been in business for what, three years now, roughly? Yeah. Azoth, 5 years. We're their fifth year. Fifth year now. So when you think about kind of the time horizon, the next three years, where do you see your, your metal binder jetting business going? I told you, I'm just going to go buy a bunch of FX20s and start making three million, three million, and I'll start making gripper fingers. No, but I envision, I think Azoth is going to be a $100 million production manufacturer. And I believe we'll have, you know, I don't want to say too big of a number than Shai will hold me to it, but we're going to, I see a sizable investment when we get some of these opportunities that go into production with Markforged to expand that platform. I can't go with any other platform. I mean, that's the machine that they're PPAP with. So as I get production orders, I mean, that's the machine that I need to stay with. You can't just switch machines in this type of manufacturing. We're going to grow significantly, I believe, with some of these. I mean, you know, I get too excited, so I'll just say that we're going to purchase a lot, and hopefully, some of these cool orders pick up. Like that hydrogen fuel cell, and we made that heat exchanger. I don't know how many they're going to make. That guy was talking to me something like 10,000 a week. You know, they're going to put out these hydrogen fuel cells in a backpack that'll power a whole battalion for three days, you know? And you know, these RF antenna arrays that we're making for the government, can't say that, but you know, it is unbelievable the stuff that we're able to do. I feel like Willy Wonka, is what I always tell people, because I'm a lifelong manufacturing person in plants and stuff. So I feel like Willy Wonka, that now, I mean, anything you think, you can make it. And I'm, you know, to Russ's point, I'm on a mission to prove that anything you can make on that machine, we can mass produce it. That's my mission every morning. I want to make this a production-capable technology, and, you know, as you guys keep increasing this technology, we're first adopters, and just going to keep exploiting it for everything we can. Thank you for that, Scott. Obviously, I think everybody can feel the passion, the energy, the excitement of, of where Scott and Azoth is going. Visiting this customer firsthand, an unbelievable facility, some of the brightest engineers that I've come across in my time. But, you know, under Scott's leadership, I fully believe that you guys will get somewhere pretty special. So a couple of things here. You know, first and foremost, if you think about everything that we've heard from all of the panelists, you know, one of the things that I'm really excited about and very proud to say is that all of our Markforged customers are seeing and experiencing a tremendous amount of value from the Markforged platform. There were a couple of key themes that came out today as I was listening to folks. One of the themes that I heard was that we have an extremely easy-to-use platform. As a result of that, we're making it really, really easy for customers to adopt this technology to scale globally into multiple facilities. I also heard that our Markforged printers, whether it's our legacy composites, our FFF metal, or our metal binder jetting technology, is that we produce extremely strong and accurate parts. That is something that has allowed each one of these individuals to collectively find a tremendous amount of success on their manufacturing floor. I also heard each one of them talk a little bit about the importance of Eiger and the software portfolio that we wrap our materials and our hardware around. Those software solutions are allowing our customers to get a tremendous amount of value from the machines, and again, drive adoption and utilization on a global level. So in closing, you know, on behalf of the entire Markforged team, I want to thank all of our panelists for spending time with us here today. I think you guys did a phenomenal job, we appreciate everything you guys do and your guys' partnership. Thank you. Thanks. All right, I think we're good to go. What we're going to do right now is just take a 10-minute break for people to take a bio, grab a beverage, and we're just getting started. So let's plan to... We'll kick off at 2:30. Thank you. That was awesome, man. Good? Yeah. There's people that... Right, and I, and I sense it. ... By the way, for the people that don't do-- I don't know if I can say all of it publicly. He will say it. Okay. I think Scott will be here even later, so you can ask him more questions. And he's not just the CEO of Azoth. Azoth is actually a subsidiary in umbrella of companies that Scott owns. I'm not sure of the top line, but about $1 billion into automotive. Okay. Yeah, we're moving forward. Big thank you for all our dear customers and strategic partners that are here. Thank you for this. I was, like, extremely excited listening to the applications they are doing with our solution. But we are just getting started. I'm even more excited about the Digital Source. I joined Markforged about four years ago because I thought that Markforged is uniquely positioned to bring the Digital Source into the world. I don't think there's any other company which is better positioned to bring this to reality. What is the Digital Source? An on-demand platform, okay? For 3D-printed OEM-certified parts. Again, 3D-printed OEM-certified parts when and where you need them. We're gonna see a short video trying to explain it, and we'll continue to go deeper. Hopefully, it's gonna work well. Running your manufacturing operation has never been more challenging. Frustrated customers waiting for parts, increasing workforce and supply chain challenges, expensive inventory cost. It's time to digitize your supply chain. Introducing Digital Source, a platform for 3D printing manufacturer-approved parts, when and where they're needed, without the cost or hassle of physical inventory. Customers can securely license parts from your digital catalog of approved OEM designs and 3D print parts themselves on location instantly or through a growing distributed network of trusted print providers. Manufacturer-approved parts when and where you need them. Once in Digital Source, always in stock. Digitize your inventory today with Digital Source from Markforged. Okay. So what we're trying to do here? We are trying to build iTunes for manufacturing. From millions, thousands of songs in your pocket to millions of parts right on the manufacturing floor. This is what we're trying to do, and no one else can do it. If we look back into the music industry, remember analog music? You used to play records. Raise your hand if you played a record before. Probably, right? A disc, a cassette. You don't know. You don't know records. It's this round stuff, black round stuff. After that, discs, cassettes, right? You remember kind of going back with cassettes to the car and putting the cassette you want to hear the music that you want, okay? It was a transition. It took time. But at the time, it was very difficult, and then you want to go digital. Okay, you need to burn the disc. You remember burning a disc? You wait a few hours, right? You wait, and then you don't know the quality. You're gonna put it, and then, ah, it didn't work. Let's try again. Don't forget that it's stealing, right? Apple came in, and they were extremely smart. They took the best hardware, the best software, great user interface, and they connected with the content creators and owners. They are Big Five. They did, did a great deal with them and created a new business model that enabling them to monetize on each song in a way that they could not before. Could not do it before. Impossible. They put good IP around it. It's all secure in the cloud, and today, each and every one of us probably has something like this, right? Siri, play Pearl Jam alive. Done. Right? Tough transition, but they did it. We have the same opportunity in manufacturing. We can really transform manufacturing into distributed manufacturing. This is the time, okay? You heard about the challenges today. Markforged today is still trying manufacturing floor by manufacturing floor. Scott is doing the same, right? Convince, certify the application again and again, again and again. There's not enough knowledge, okay? You heard the team from Ford. They started from scratch in 2017. By now, they are saving $ millions, but there's not enough knowledge on the manufacturing floor. It's very tough to do the transition from design to manufacturing, to design to additive manufacturing. And there's no business model, there's no incentive, real incentive for OEMs to move there, okay? Especially in automotive. We have a lot of automotive today. Aftermarket, once the design is out there, someone else is doing it, and they are taking the money, right, Scott? You know better than me. We can do it differently. We can take top-notch hardware, industrial-grade materials, and great cloud infrastructure, really good user interface, as you can hear from our customers, with a just print solution, reliable, repeatable, trusted. Now create a new business model for OEMs, okay? For the Ford of the world. Now they can monetize on their IP, right on the manufacturing floor, and they can do it through our secured platform on the cloud. No one can give them this capability. No one. Not today, at least. Markforged can. With this solution, the objective is to really bring industrial production to the point of need. Eventually, I want to see car replacement parts printed on the car dealership, okay? Ford, GM will get money because each time it's printed, it's their part, they're gonna get money. This is the vision here. This is what we are trying to do or doing. So what does it mean? For our customers, the customers that need the part, shorter lead times, okay? Lower cost of parts. Usually, when you move from a metal parts, machine metal parts to an advanced composites part, it's about one-tenth of the cost. And no inventory. I love... What is it? The TOMO. Take one, make one. Perfect, because additive is not ready to print in seconds. Just it's not there. It takes a few hours, a few days, depends on the size of the part. But move to a bin of one. We have customers with millions of millions of dollars in inventory parts waiting. Think about the car dealership. They need to have replacement parts for so many vehicles, for so many cars. What if you can put them on the cloud and you don't have this inventory burn? For the OEMs, it's a new revenue stream. Today, the aftermarket, they don't see it. We shared this vision with a few of them. They're like, "Wait, I can actually get money on my parts printed on the manufacturing floor?" Today, it's going to the tier one, tier two. They don't see it sometimes. They can use their brand, their IP. It's secured. And it can really simplify the supply chains. You don't need to go through planning a year in advance and shipping it and tracking it, and warehousing and inventory it. Just go to the cloud, go to the source, press print, and you're done. You have your part. And for Markforged, it's a new revenue stream model. Eventually, we can get money for each part printed on the network. Really high margins. It will increase the adoption materially of our solution, because our customers can now push more and more our solution into their customers. Instead of Markforged application engineers, Rustin team, going manufacturing floor by manufacturing floor, by manufacturing floor to Ford, now we go from the top, and the top is telling, "Okay, all the manufacturing floor, this is how you do it, and I'm gonna source it from you like this." So the adoption will increase, and it's given us the ability to take strategic consulting to the next level. Tripp will talk about it shortly. We are really trying to help this transition from physical inventory to digital inventory, from design to manufacturing, to design to additive manufacturing. So great value across the entire ecosystem, okay? What we're trying to do is build iTunes for manufacturing. With that, I'll ask Tripp to join us to take us through more details of how does it work? Thank you, Shai. Nice to meet you everyone, my name is Trip. Been at Markforged for six and a half years. Before that, a lot of time in the manufacturing industry. And to explain how this works, let's let a customer do the talking here. This is a platform we've been developing for really a few years, but have been beta testing and exposing it to people as we discover the right product-market fit. BMF is a machine builder in Germany. They make blasting cabinets for automated finishing of metal parts. It's like sandblasting, but instead of humans controlling nozzles, it's a very automated, complex process that can produce higher throughput and more reliable component finish. But if you look at that internal planetary gear mechanism. There are dozens of printed parts on there. They've found Markforged to be the best solution to provide these geometries at the volumes that they need, with the ability to customize and provide a high-value solution. They're growing rapidly. They've got hundreds of machines scattered around the world now, and for them, their core competency is designing and building these blasting cabinets. They're not a logistics master. They don't really want to, but for their customers, they need to assure high uptime, high availability, and throughput of these machines. Spare parts are critical. They're tasking multiple people on their team, and space and overhead in their operation to provide spare parts and ensure that customers are getting the value that they believe. In this case here, they've been able to transition to a digital model, and the value is, it's unbelievable. We'll hear a bit from them. Normally, we print about 150 parts each week for the customers and only for spare parts. Normally, our customers have to wait about 14 days to get the spare parts in their factories, and now, thanks to Digital Source, now we can collapse the time from 14 days to 1. Today, we printed over 21,000 parts from Markforged. Can you imagine how much time we can save, how much money we can save, and how much personal costs we can save when we use Digital Source? Okay, the results are fantastic. It's a great, clean example of how a shift to digital inventory can transform their business. Not only are they reducing overhead and providing a better customer experience, the margin on these spare parts goes through the roof. The design work is already done. They've already validated this technology as the right approach to making these components, and now they've been able to push that to their customers. On the downstream side, customers... Well, we'll start at the top. BMF, as a design owner, they're up there, they're validating the parts, they're hosting them on Digital Source, and then sharing access to these controlled catalogs to their known customers. It's a B2B platform. It's not eBay trying to slang things for the lowest cost. They're trying to provide a high-value solution to ensure that their customers' machines are always available. On the customer side, they are not having to make an additive investment and develop ROI and train their team to learn how to refine, you know, design choices, material selection, print parameters. All they're doing is getting a box that BMF has recommended because it is the best way to get spare parts. It streamlines their path to value and reduces the overhead and investment required for them to leverage additive technology. These are customers that are not shopping for additive. They're not coming to Markforged saying, "You know, teach us what we can learn." It's customers that BMF has recommended a solution, they do what the best answer can be. If we simplify that and think about it in the big picture, we've got networks of part design owners now. Anyone with a Markforged machine, they're designing. We've got, you know, the examples from Ford Sharonville. They have teams of people that are identifying pain points and designing custom solutions. Every time they do that, they have to go out and identify a new application, reverse engineer components that are already designed from their suppliers. Instead, this provides a platform for those suppliers to shift to a digital model, maintain a high-value solution for their customers, maintain control of their aftermarket, as well as experiment with new methods of deployment for international distribution or on-demand spares. An added dog leg of the platform here. There are end customers out there that don't have Markforged printers today. We don't know them in the network, but their suppliers can push digital parts to them. They now, all connected through the Digital Source ecosystem, can access a network of print service providers. Again, existing Markforged printers out in the field, we can drive additional utilization and value to those users. The end customers, without making a capital investment, they can start benefiting from on-demand inventory and getting parts made by, you know, a print supplier down the street. As close to on-demand as they can get, but without capital barriers, and it allows them surge capacity. Someone might have a few printers on site. You know, Ford is making spare parts for their line, fantastic. But then when a new version comes out, they need to retool an entire plant, reach out to network capacity, leverage suppliers like Azoth, to go get these parts made in higher, higher volumes. So it provides multiple entry points for people to start engaging with Markforged and start getting value out of the platform, while also dramatically streamlining their path to finding the right part, ensuring that it's made for their application, and getting value. The BMF use case is one example. As we've been exploring beta engagements here, we're talking with a variety of Markforged customers.... The platform was announced yesterday. We've already gotten a large influx of people reaching out, expressing interest, wanting to be involved. And some of the examples of deployments that we're seeing span a variety of industries. You know, production MRO, that's a very common one. Spare parts for factories, extremely high-value parts, traditionally long lead times and expensive, and very critical for production. Moving to a digital model to support automotive system integrators, you know. Jeremy was talking about the role of his team is to build wind turbines. It's not to learn to be additive experts at every corner of the world. Leverage your supply chain to provide the solutions. The packaging industry is another enormous opportunity. A huge high volume or high mix of components, relatively low volumes, perfect for additive, and also perfect because it supports this network of your existing supply chain. Use the team that's there in place today, don't recreate the wheel, but just shift to a much more efficient method of fulfillment. Warehousing, automation, the tools and fixtures that we hear about constantly, and then austere environments, offshore oil and gas, you know, fishing factory ships. Jeremy, again, talking about Vestas. There are so many applications here where getting the right part at the right place at the right time is infinitely more valuable than the cost of that single component. Being able to print on demand, on location, unlocks enormous opportunity. Then in new product distribution, this is an area that's growing rapidly. Tooling and fixturing is an easy entry point. It's low risk and people can control it. But the real holy grail is for high volume, bespoke production. Talking about spare parts for automotive supply centers, dealers, getting custom badge placement fixtures. You know, we've seen many examples where there's a factory recall, and they need to push new tooling out to dealers to be able to supply these and support these new cars. Being able to do that digitally on demand, dramatically improves customer experience and reduces cost. We're working with small businesses. There's one in the UK that is building commercial products. They want to expand into a large Australian market, but for them, lead times and costs for international shipping are prohibitive. Exploring the model then of putting printers at the distributor, distributor locations for the ability to print on demand, support their local markets without international shipping, tariffs, lead times, all of that, allows them to be much more agile and competitive. And finally, there's a whole network of partnerships out there that don't necessarily rely on buying one part at a time. This is commercial arrangements outside maybe the scope of this platform, but still extremely high-value opportunities for a digital supply chain. We're in discussions with major aerospace engine providers. The cost involved with maintaining those engines, stripping them down, rebuilding and repairing them, the amount of tooling and custom components necessary for that process is enormous. Being able to move to a printed model with printers at those MRO facilities streamlines their process and allows them better version control. There's no, you know, as quality statements where the wrong tool was used because they wasn't sure which one was correct. Even Markforged, we manufacture a lot of our equipment through a network of CMs. We are pushing regulated tooling down to them, jigs, fixtures, to ensure that they're able to create our products with the precision and quality required. Now we can do that digitally. We can make a change, an engineering change, push the tooling down, and have it ready to go the next day. And then internally, out of centers of excellence. In some cases, these are independent P&Ls within a company. Other times, they're there to support the operation. If you have a cluster of skilled engineers focusing on additive and development, deployment of the technology, this is a controlled platform that allows them to validate, approve parts for internal use, and then push them down to the network of factories scattered around the world. In my experience, most of my time at Markforged has been on the application engineering team, and as mentioned before, it requires somebody with that skill set to go into every plant, identify applications, reverse engineer them, develop a new solution, validate it. These centers of excellences are doing that today, and this provides them a controlled platform to do it securely without having to have a high-cost resource in all of these low-cost manufacturing areas. What we're seeing is that it continues to build upon itself. The value here is that our customer base, our users, are getting so much return based on this model, is that they are selling Markforged for us. BMF, for example, they're starting to deploy this model. They've reached out and have sold 6 printers for us since they've been in the beta program. These 6 printers are now deployed at manufacturing locations, again, that had no interest in additive. They're just interested in a better way to get things done. Now that they're in the ecosystem, they're using that printer for other things on the factory floor. They're learning, and some of them now are expanding beyond their initial investment because the value that they got from this printer unexpectedly is greater than they ever would have imagined. So we want to continue to foster that, and this flywheel drives more adoption, it drives more revenue to Markforged, but more importantly, more value to the expanded supply chain. And if we do this right, it's... And it has enormous potential. We can look at the global manufacturing market here. You know, it's a stat that can't be really fathomed for one company, but even a small slice of MRO, $50 billion of maintenance and spare parts for global manufacturing, or for—from a oil and gas provider. They have 800,000 individual SKUs in inventory. That's not unique parts, that's types of parts. Billions of dollars sitting on the shelf. They're paying 12% per year in carrying costs, inventory taxes, overhead, all the things involved with keeping that in stock. And even worse?... Some reports are showing that three quarters of that inventory is never used. It's there on the shelf just in case. Going back to the take one, make one, if you could reduce that down to one part on the shelf and the rest stored digitally, you can dramatically improve the profitability of these organizations. And then on the Markforged side, it drives adoption. One of the biggest barriers to the usage of additive is not what the technology can do. The performance of materials, the capabilities of the machine is fantastic. The learning curve associated with that is the bottleneck. So by relying on the existing supplier base, the people that are already designing parts, that already know the functional requirements, they can specify that Markforged is the right solution and grow from there. Then on the pay-per-print side, as a platform host, Markforged has the opportunity to monetize a piece of each transaction. Many companies are very interested in exploring this, in leveraging this and deploying it across their organization, but they don't know how. Markforged is in a unique position in that we have teams capable of these high-level enterprise discussions, ready to help transform their organization and do it in a way that not only unlocks the value, but adds additional value to ourselves. With Markforged, we've been out here selling printers for many years. We've got a very large install base of active printers that are already capable. These are basically micro factories, cloud connected with the quality control and feedback loop necessary to ensure that the right parts are being created at the right place. We have this network already. Even more importantly, they're spread across 5,500 different manufacturing locations. We don't have to start from scratch and build momentum as if we were a pure software play. We have this infrastructure, we have the data feedback, we have the user base to build upon. The advantage then, we don't have to build a network from scratch. All we have to do is turn this on. We're empowering our customers to provide the right solution. And with that, I'd like to ask, Jeremy and Pavan to join us again for a, more customer feedback here. You've met Jeremy from Vestas before, and then Pavan Muzumdar is from our, one of our more interesting customers, Automation Alley. He's the COO of that organization in Michigan, as well as the CEO of Project DIAMOND, which we'll learn more about. Okay. Thank you. So, Pavan, what is Automation Alley, and why did you start Project DIAMOND? Sure. So, Automation Alley is, we're actually a nonprofit. We're actually quite different from any of the other companies over here. So we're a nonprofit, we're in the state of Michigan, and our mandate is to be the Industry 4.0 Knowledge Center for the state of Michigan. Michigan has about 12,000 small and medium-sized manufacturers, and most of them are in the Industry 2.0, Industry 3.0 space, which is basically process-based, subtractive, and formative manufacturing. And our role as an organization is to help them look over the hill, around the bend, to see where manufacturing is going. From our perspective, manufacturing is becoming software-driven. It's going to be primarily additive, and as we've been talking about, distributed. So that's, that's sort of Automation Alley as the parent company, organization. In 2020, we had the opportunity to launch Project DIAMOND. DIAMOND stands for Distributed Independent Agile Manufacturing on Demand, and that was actually in response to the pandemic. We live in Oakland County. It's actually the dominant economic driver of, for the state of Michigan. And Oakland County came to us at that time, and they said, "You know, we're having trouble sourcing PPE. Can you do something with the CARES dollars that we have? We'd like to allocate a small portion of that to do something that's interesting and transformative for the community, and also kind of meet this PPE need. And oh, by the way, you have to do it in, like, 4 months." And this was about in, I'd say, the June, July timeframe. Actually, 7 months, but by the time we signed the deal, it was, like, 4 months. And so we said, "Well, you know, analysis goes out the window." And one of the things we've done as we were on this journey of the Industry 4.0 Knowledge Center, is we realized small manufacturers aren't going to necessarily invest in new technology that doesn't have a clear ROI. And so we said, "If you're going to transform companies, you're just going to have to give them a printer with some stipulations and see what happens." It's kind of like this option-like bet that we, we called it. So we distributed 300 3D printers, 250 in Oakland County, 50 in Macomb County, with a mix of M2s and X7s, and that's how we got started. And the objective and the, the message to the companies was, "Use this printer as your own. Make... Use it, learn how to use it, learn how to, you know, develop applications for your own business. But if we call on you, we'll ask you to build, you know, print some PPE." And at that time, we didn't know what we would be printing on it because it was, you know, it was unclear. We never really did use the network for PPE for the pandemic, but in 2022, after Ukraine was invaded by Russia, we actually printed tourniquet components and validated the network. What we learned from that experience is that you can build a network, you can actually mobilize, you can distribute, but if you want to take it to the next level, you have to create something that's commercial, and that's when we started having conversations about Digital Source, and we'll kind of get to that, but that's in a nutshell what Project DIAMOND is. Yeah. Thank you. Yeah, very exciting. It's a major initiative we launched a couple of years ago, and excited to see where it goes. Jeremy, we've heard about your adoption inside Vestas. Can you talk a bit more about the value to your expanded stakeholders? ... Yeah, absolutely. You know, and again, it kind of comes back to speed and agility and, again, reducing time to market to our end consumers, right? Our, our, our customer base. And, you know, part of, part of the initial, you know, going to Pavan's point, you know, we learned a lot coming out of COVID, and I think one of the biggest things everybody learned was how sensitive and delicate supply chain can be. So, you know, it's, it's kind of multifaceted. There's aspects of cost savings, again, lead time reduction, all of these things, but another thing is empowerment to control our own destiny, right? Controlling our own supply chain where possible, right? It's not a silver bullet, but it's pretty close. So then, with Digital Source, how does that apply? Digital Source, I think, is like the next evolution of this evolution. So again, we're vertically integrated with our own internal manufacturing capabilities. We have Markforged printers in every factory around the world, and again, intending to grow that out even into the mobilized, divisions. But with Digital Source, we can now actually start extending that into our supply base, right? We have contract manufacturers. I think we have something close to 20,000 suppliers in Vestas, and a lot of them are disjointed from, you know, their, their point of need. You know, we have companies in Italy that supply companies in the U.S. and vice versa. So by enabling Digital Source, certain aspects, certain componentry, you know, we can assure that our supply base is in conformance with our directives and what we need from our product. We can assure that by maintaining revision control and also by monitoring exactly what is used to make our product. Very cool. And on your end, Pavan, how do you see the value of additive impacting your community base? We've heard a lot this morning on what's happening in manufacturing. I think Scott's been a great example. If you look at where manufacturing is going, that it's becoming software driven. We heard in the tour how we're capturing so much information during the process. As I mentioned, Markforged is really a software company, so it's really all about the software, and if that holds to its logical conclusion, process is going to become less and less important, and design is gonna be more and more important. In fact, today, manufacturing is very much a process portfolio. If you go to a small... If you go to a supplier, manufacturing supplier, and you say, "I want to make this," they won't ask you why you want to make it, they'll just basically say things like, "Well, what's it made out of, and what's it gonna be used in?" But the human expectation that the outcome is not necessarily important, because what they're trying to get to is, "How am I gonna make this thing?" Which is all about the process. And as Scott mentioned, if we start thinking in software and start thinking in additive, some of those barriers go away, but what you have is this other challenge, which is cultural, which we'll get to, but what additive does is it helps you conceive the product from scratch. As additive becomes more and more capable, that process piece becomes less and less important, which means where additive really plays a role is in transforming these companies from process owners and process managers to IP owners and IP portfolio owners. That's the biggest change that we want to see affecting companies. So from this commoditized type of operation, you start becoming more of a design-oriented operation, and you start adding... That's where we see the biggest promise of additive. What is driving this now? Like, what's the catalytic event? The catalytic event, I think, is the awareness. I think we saw this. The pandemic showed us how sensitive some of these, these supply chains are. We've seen how geopolitical events can very quickly change the mood in the room, if you will. We've also seen some sophistication and some evolution of additive to where it's starting to become really interesting, and I think it's a confluence of all these at the same time that's kind of bringing this, you know, at a point. You know, the way we see it, additive is, again, it's... I'll say this again, additive to us is primarily a software play, and because it's a software play, it tends to scale exponentially. And because it scales exponentially, sometimes those initial stages are very difficult to predict. But because it's exponential scale, once the change starts happening, then it starts happening rapidly. And so, you know, that's kinda... it's, you kind of sometimes just feel it in your bones, and that's how we feel it. But you get all these multiple data points, and you're like, "You know, this is about the time that we need to make the change. Great. Yeah, I mean, having you as a resource to empower these small businesses to make the leap is a great enabler. Jeremy, on your end, we were talking about some of the opportunities this unlocks, but what are the key features that enable this? Like, why hasn't this happened yet? I would say probably because the technology hasn't existed up until this point, right? You know, specifically with Digital Source, again, the ability to communicate and collaborate in near real time with our supply base. I would say that's probably one of the biggest things, but another piece of it is more holistic, and that's like the shift in paradigm, right? Getting our supply base and people internal of our company to understand that this is a serious technology. We can scale this. This is relevant to making us more cost-effective, more agile... and it touches on all four. It's an acronym within Vestas we use, that's SQDC, safety, quality, delivery, and cost. With additive, with Digital Source, it literally hits every one of those markers. We have never seen a transformative technology come about that has actually effectively done that until additive manufacturing, and specifically what we've done with Markforged. Just to theorize a bit, I expect your supply base will respond differently when Vestas asks, rather than the Markforged salesperson. Yeah, they refer to us as the blue whale. You know, companies like 3M, Sika, you know, we work again with some pretty large companies, but they will typically bend if we push hard enough. So, yes. Thank you. Pavan, we were talking about barriers to adoption. Can you expand on that? Sure. So, and I think I'll lean on Scott again. Some of the biggest barriers to adoption, the way additive is used today is it's often a retrofit to traditional manufacturing. It's like we've designed this in the 2.0, 3.0 realm, subtractive, formative, and now we're trying to fit additive on it. And if you reconceive the component, if you conceive the subsystem, whatever it is that you're trying to make from scratch with additive, you really extract it. You get these, the scale of return is substantially higher, and sometimes what we come across is in industry itself, we see even, even in additive mavens, sometimes there's this kind of, "Hey, I, I dev- I came up in this at this point in additive, and this is where, this is where I kind of stopped my thinking." Sometimes they, you know, they're not necessarily following the industry. In fact, one of our grantees in the, in phase one was, said to us, "You know, you know, I bought an additive printer like 6 months ago, and all I made was tchotchkes, and then you gave me this industrial capable printer, and I'm like, 'Wow, I'm actually using it to make parts,' right?" That's the barrier. It's the design for additive, you know, it's, it's not part of it. We've actually had... One of the other things that our mission actually does is we partner with academia, and we had a professor from Eastern Michigan University do an analysis on the level of understanding and competence in industry on additive in design engineers, and it's actually quite low. So that has to change as well. But what's interesting is as the economics becomes clear and as the executives start understanding the value of additive, that is going to provide the incentive for that retraining to happen. So, so it's, it's this, nothing stays constant, right? That's, that's what we see. The way we want to use Digital Source, our goal is that Project DIAMOND Phase Two is going to build up on the success of Phase One, where Phase One was about building printing PPE. Phase Two will be about an individual manufacturer might have a design, and they scale up the production using the network, and we use the advanced capabilities where things like quality and traceability are starting to get built into the machine itself. And so things like repeatability and consistency become less and less important, and you can start with simpler products, and then as the machines catch up in terms of their capabilities, the software's already there. That's how we see it, and that we think is going to be the driver for that, for that adoption. So it's gonna be one of those virtual cycles that you talk about. That's phase one and phase two? So phase two is what we're working on right now, which is to build a commercial platform. And the commercial platform, essentially, the way we look at it is there's three roles any organization can take. There's the role of the customer who needs the component, they just do the buying; there's the company that does the production, we call them print service providers; and then there's the third, which is the design owner. And they all can come together, and they can transact securely on this platform, where the customer gets the part that they want with the quality they want, traceability they want. The print service provider gets a fee for service for printing the component, and then the designer essentially gets the royalty or the fee for their IP, without their IP being compromised. This is kind of like this example of, you know, we lost an opportunity with MP3 because MP3 was the sort of unlocked standard. You could just rip something on a CD and distribute it over the net, and if we don't allow that with 3D print designs, that gives us great commercial opportunity for designers to monetize their IP. And that's the way we see it. And by the way, any company can play one, one, two, or all three roles. And that's how we see our community of Project DIAMOND participants building up. We'll be adding about another 250 printers to the phase one community, and we're already starting to see interest within the rest of the state to start launching these communities because they're seeing the value of that, of that ability for someone to be able to design a component, but not necessarily have to scale up the CapEx and print it as needed. We actually have one company that's actually waiting for this to happen. They're like, "I wanna push print and print, you know, my own proprietary design." They're in the furniture industry. That's how we expect this to scale. Fantastic. And so not only enabling the small businesses, you're acting as a thought leader across other areas as it grows. We hope so. Yeah, you know, the way we look at it, if manufacturing is going to be design-focused, then it's absolutely imperative that the small manufacturer becomes, retains the ownership of IP. That's our stakeholder is the manufacturer. In fact, that's one of the reasons why we have this partnership with Markforged, is because our stakeholder is exactly your stakeholder, is the end manufacturer. And so we hope that that's what we're bringing to the table. It's almost like bringing that artisanal quality back to manufacturing through design, right? Love it. Jeremy, back to you. What's your vision for this at maturity or at scale? I envision the program and again, the basis of Digital Source. I see the ability to instantaneously create product again with deferring from, you know, all the nasty overhead that comes with inventory. Right, we've touched on that a couple of times already. But again, it's enabling the speed and agility, right? We don't just want that internal to Vestas. If we can bring value to our contract manufacturers, our suppliers, of course, that trickles over to us, right? That makes us faster, it makes us smarter and more agile as a company. So the vision is to roll this out not only within our company, vertically integrated, our supply base, but also even external service bureaus. Because, right, we're dealing with a recipe. We're dealing with something that is protected under this umbrella. We can transact those parts to anyone in the world that we want and know that the part quality, all the traceability factors are there, and we're gonna end up with the same exact part. Again, going back to issues around PPAP, you have to have that traceability in order to enable it, so. Yeah, traceability is something that keeps coming up as we try to get into these more high-value and regulated applications. Thanks. Why pursue something like Digital Source versus what else is out there already? I mean, there are plenty of platforms to share files. So if you're talking about some of the commercial platforms that, that kind of like, you know, that they become hubs, are, are you kind of referring to some of those? We looked at the business models. Well, so there's three reasons. I think there's two business model problems. One is, I don't think from some of what we've heard in the platforms, the financials make sense. You know, the, the gross profit, the margins, the, you know, the economics, it just doesn't work. That's one thing. The second thing is, if manufacturing is starting to become more and more additive, and that's our, you know, that's our grounding principle, that's our grounding philosophy, right? And it's all about the design, where is the IP ownership question solved in this, in this type of a problem? Because some of these platforms tend to look at commoditizing the producer. Then the question becomes, if you're commoditizing the producer, are you going to be the owner of all the IP, all the design, all that knowledge, all that customer outcome that you want to deliver on the aggregating platform? I don't think that's necessarily feasible. So there's a question on that. And then the third thing is about principle. I... We wouldn't support a model, Automation Alley wouldn't support a model that commoditizes the manufacturer. Our goal is to make manufacturers prosperous and help them with the transformation of being process owners to IP owners, and that's really, you know, ultimately, that's what we wanna do. We would love to see manufacturing prosper through IP ownership. I hope that answers the question. Yeah. No, that's great. The IP ownership aspect is really what incentivizes adoption. Yes. Yeah. Yeah. Jeremy, on your end, I mean, you've got the DDM process, you're talking about traceability, regulated adoption. What about other technologies? As far as additive technologies? Yeah. Yeah, so, you know, again, currently we've been talking, or at least I've been talking about our program and our evolution phase one. When we start talking phase two, you know, that's when we're, again, getting into product, cyclic or series production parts. And with that, you know, we're kind of trying to diversify and come up with the exact mapping for how that's gonna be done, but we envision a hub-and-spoke distribution model, regionally based, similar to what I believe Dana has done. But also, you know, enabling, you know, kind of fallbacks, if you will. Again, going back to the ability to turn on or enable secondary service bureaus or, you know, partners, partner companies with metals. Sorry, you were asking what technologies. So metals, both binder jet as well a s the atom processes. Love it. All right. Pavan, you can close us out here. How do you see this, I don't know, addressing the blind spots in manufacturing today? Hopefully by shedding light on them. The big blind spots I see or we see is there's this... You know, we've seen all the advantages, we've seen, you know, there's all these benefit statements for additive, and then I hear sometimes it's the same kind of refrain, "Well, additive can't scale." We see, you know, we talk to companies that are in, like, you know, in traditional formative or subtractive manufacturing, and we say, "Hey, what's your additive strategy? What are you learning about additives?" They go, "You can't make this thing at scale." Then we find out there's a company that's doing exactly that at scale. You know, we heard from Scott earlier, you know, there's this notion that additive is somehow sitting still. The big blind spot is additive is scaling at the speed of software, which is, you know, it's an exponential rate, and there's a ton of people, very smart people, paying attention to materials, processes, process management, process monitoring. We just heard about the number of, you know, sensors, things like that. So it's this, this constant change, and so the, the big blind spot is. You know, I can't do this in additive because XYZ, and you look at XYZ, those reasons, and they can all be addressed by either DFAM or software or monitoring or something like that, and someone's working on a system, you know, to address that. And so there's this, there's sometimes it's an intentional putting the blinders on because I don't want to do the work, and sometimes it's truly the sense that, you know, no, this just can't be done. You know, someone said, "You can't, you can't have an automotive application, or you can't build cars with additive," and then we have Divergent, you know, or Singer automobiles, and their additive content is over 60%. And, you know, they're just one company. You have Relativity Space, you know, they sent a rocket, it's 3D printed, right? It's all the stuff that's happening. It's this notion that things are just the same, they're not going to change. For my application, everything else, yeah, you can make additive. My application's special. Well, thank you. Happy to have your support, helping to drive that change. Thank you. Yep. We're just gonna take a quick five-minute break, last break until the finish. So if people need to use the restrooms, we're gonna kick it off at 3:30 P.M. to get us to the finish line. All right. ... I will conclude today's session with a financial update. It's important to mention that we still operate in a suboptimal economic environment with uncertainty. So with that in mind, I'm happy to say that we are executing on plan, meeting our financial targets. Our customer base has been steadily growing, and revenue for the first half of the year was $50 million. That is 7.5% up year-over-year. Gross margins were 49% for the first half of the year, and we are maintaining our guidance for the full year. Because of our disciplined approach to operating expenses, operating loss improved to $29 million, down from $32 million in the first half of 2022, and EPS improved by 23% in the same period. Cash flow from operations also improved by 26% with working capital efficiencies, and we expect our cash utilization to continue and improve with higher revenue, higher gross margins, and strong cost control. That puts us on a path to profitability without a need to raise capital. We are happy to share today, for the first time, our long-term financial targets. We are confident in our ability to continuously grow 25%+ year-over-year, expand our gross margins back to historical levels, and grow our base of recurring revenue. That puts us at 15% EBITDA or above. Now, these are our long-term targets. Getting there would be gradual and steady, but we are excited with that. The inflection point is here. We've released exciting capabilities. Each one of them is a growth engine on its own, a very strong revenue stream. We have a connected network of more than 14,000 connected printers. Utilization is constantly increasing, as you've seen. We've released the FX20, which is optimized for regulated industries. The PX100 binder jetting, designed for high-volume metal production parts, and of course, the Digital Source that you've learned about today, that has a huge potential. And more capabilities are coming out, which makes us extremely excited with the future of our business. With that, let's move to Q&A, please. What a surprise, Troy. Hello, hello. Is it working? All right. Thanks, Troy Jensen. Yeah, you're on. Can you hear me? Okay. Yeah. Troy Jensen from Lake Street. So on the Digital Source, can you talk about how you monetize this? Yep. Is it just gonna sell more printers for you guys, or is there actually, like, a software sale to it? ... Any kind of the output? Sure. There are 3 revenue streams from the Digital Source. The first one is around increased adoption of our core solution, of the Digital Forge. Okay? So as you heard, BMF, which is a Digital Source customer, already sold 6 printers on our behalf to their customers, and their customers are printing replacement parts into their solution with Markforged. For us, the cost of sales for this, 0. We sold it once to the OEM. Now the OEM is selling it to their customers, okay? And increasing the adoption of hardware, software, and materials. The second revenue stream is around pay per part, okay? Eventually, each time there's gonna be a transaction on the Digital Source, we're gonna take a margin of this licensing transaction. 10%, 15%, would have to work for the model. So that's another very large scalable revenue stream. Margin, very, very high. Okay? And the third is kind of consulting services. So we stopped going kind of like from the bottom, right? Instead of going bottom up from the manufacturing line, we're going top-down. We're going now with Ford, going down with kind of big companies, and they need to go through a significant transition. They don't know how. Okay? So we have Trip and his team, which are working with them to build this 5-year, 10-year plan from 0 to 5 to 10, 100, 1,000, 10,000 digital parts. And this is another revenue stream for us. Hi, Greg Palm, Craig Hallum. First off, thanks for having us all here. It's a lot of good info. I wanted to start with, I had a couple of questions, but first one, just, you know, based on the slide, you know, the inflection point, probably a lot of us in this room have been, you know, talking about this or, you know, hearing about the inflection in, in additive for a long time. What makes you so confident now? Is it just the evolution of Markforged, the broadening out of the product portfolio and the offering? Is it some of these external drivers like, you know, reshoring, you know, onshoring, supply chain? Just, you know, want to get a little bit better sense of your confidence level now. I think there are two key elements. Externally, the pains within the manufacturing kind of industry and countries is to a level that something needs to be done. Onshoring, a lot of incentives into onshoring already happening. That's big. It's out of our control, but it's already happening. For us, all of us, the product that we buy, what happened in the last 2, 3 years, the CEO level doesn't want to have it any- anymore. Like, they want to have resiliency into their own supply chain. The pains are real. From technology perspective, I think the capabilities are to the level that you can actually print and use parts, functional parts. If you look some of the parts that are going out of a printer, these are consumer-grade parts. I think the combination of the pains, okay, it, it was real, and the technology which is now coming to, to fruition, it's really happening. I think this what will help us to grow for a significant period of time. Now, it's very tough to see it when you're in the moment, but that's my personal view. Yeah. Okay, that's helpful. And you kind of... You brought up a good point, but it's very clear that, you know, customers know you for high quality, reliability, repeatability. That's not necessarily the case for the entire industry. So how do you overcome that, you know, maybe that more negative perception or that stigma across the industry? Because it clearly is a differentiator for the company. Yeah. So let's separate from the investor, or let's talk about the customers, okay? As you said, we are building the brand of a very reliable solution, very repeatable solution, very easy-to-use solution, okay? And as you can see, in the install base and the utilization, they continue to grow. And the utilization growing faster than the install base, even. So it's pure execution, focusing on the customer success. If you look outside here, we have the values on the wall. We are obsessed with customer success, okay? So unfortunately, there's a lot of noise, and a lot of people are doing a lot of other stuff. We are razor-sharp focused on the manufacturing floor. We're not doing dental, we don't do medical. We are focusing on the manufacturing floor. Industrial-grade production at the point of need, with real value, real ROI to our customers and execution. Continue to focus on their success. All right. I thought of my other question. So for Digital Source, is it only gonna work with X7 and X-- FX20 because of the sensors that can assure the accuracy and the repeatability? It'll work with all, So it can work with all of our solution, Eiger, which is on the cloud. It can connect with all of them. It's true that with the higher level printers, you have higher level of automated quality assurance, okay? But some of the parts are okay, maybe without it, okay? So it can work with all of our printers, and eventually, in my view, the Digital Source will be much bigger than Markforged. Okay? So today, the Digital Source is an application. It's a, it's a capability within the Digital Forge umbrella. But if we do this correctly, and I hope we will, eventually, Markforged will be just a tool in the Digital Source, and it needs to be technology agnostic. We need to bring other technologies into it because the customer doesn't care about how to use the technology, which technologies. They care about the part. Eventually, we'll have to create some API that will enable other technologies to connect into this network because the customer need the right part to the right application. We don't have all of it, at least not yet. All right, then my other question on the PX100, can you just give an update on general availability? Yeah, we hope to continue to ship the first units in the second half of this year. Scott shared with you that he's waiting patiently. Yeah, again, you spoke about Greg, how we're doing it. You don't release a product that doesn't work, okay? So, we are making sure that the product will work to the highest level, so Scott can do the transition, and he doesn't have any issues with paper. Hey, guys. Just had a question on the long-term outlook. So you mentioned 25% revenue growth. Could you just talk about what's baked in, in terms of assumptions around industry adoption, utilization? And then at what revenue level should we see kind of those 15%+ EBITDA margins? Thanks. So what's baked in is the innovation that we're bringing to the market, the new capabilities. We did not bake in any type of M&A that should accelerate that. This is our organic ability to grow and execute. The timeline for this really depends on the economic environment, the uncertainty that we're in. Currently, we're seeing a headwind that we need to wait a little bit. So that's why we're not committing to a specific time. It's not gonna be in 2024, and you'll see a gradual improvement until we get to that. The important piece is that we feel very comfortable with our plan, with what we're doing, and with our ability to manage the existing resources that we have without the need to raise additional capital. One of the questions was what revenue that will be on- So what we've been communicating is that our OpEx today can support much more than you see from a top-line perspective without any significant changes. We've indicated to the market it will break even in 2025, and you know our gross margins, which are expected to expand. So this is. That would give you a good indication to revenue. You want to- Yeah. May I just add a little bit? It's all about cash and control, okay? We are building the growth drivers, the growth engines for new products, but we also have other levers, right? On the OpEx side. And we'll have to balance them to stay on our commitment to get to this break-even to profitability without the need to raise more capital. Now, it depends what's gonna be a little bit with the macro, like how much the headwind versus tailwind, but we can still adjust. We have cash and control. For the data that you're able to read off the machines, that, the terabyte that you mentioned, it sounds like, you know, there's, there's pieces of the puzzle that you can now do in real time, and then y- there's an idea that you could do more with it in the future. You're building that data asset to then use it. I'd be curious to understand kind of like, yeah, what capability is available now versus what you're planning for the future. Have any of the recent breakthroughs in machine learning, say, like diffusion models or something like... or even the large language models or pieces of those architectures, helped, helped you at all towards that goal? Yep. So there's no doubt that the world around AI and data is evolving very, very fast. I think if you look on the additive world, we are probably sitting on the highest level of amounts of data in the industry, right? Because by now we have 14,000 connected active printers that produce like terabytes every day. We are trying to take it to the next level, and again, make sure that it's more reliable and more repeatable from the user experience perspective, okay? And there's stuff that we can do there in real time. So think about, you know, the new systems has machine vision into them. What you can do with machine vision in real time, if you identify, okay, that the print is going correctly or not correctly, okay? You can adjust to it in real time. So there's a lot of stuff that we are trying to do with the data to ensure that our customers get the top-notch, the most reliable, the most repeatable solution. That's from one hand. The other side of it is what you can do with the data on the AI side, and that's long, far away. I don't think it's there yet, but if you think about it, in order to really close the gap, and now this is completely theoretical, okay? But if you really want to close the gap between design for manufacturing to design to additive manufacturing, okay, you need to close the loop. Meaning you need to be able to have the data of what you told the printer to print, what it printed eventually, and then you can put all of this data into an AI and let them redesign the part based on a lot of data of a lot of other parts printed, okay? It's not there today, okay? We looked on a few that are trying to do it, but we are sitting on this pile of data. Shai, maybe you can elaborate on that last point for a technical idiot. So design for and by AI additive manufacturing versus the other alternatives. Why does that facilitate longer-term adoption? What are the problems that people have, and what can you do to accelerate design by and for AM? Yeah. We are in the theoretical sphere now, okay? The holy grail to increase adoption of additive manufacturing is to move more and more design for manufacturing, for traditional manufacturing, subtractive, right? Into design for additive manufacturing, which has other capabilities. In order to use AI for that, you need a lot of data. You need a lot of closed system data that tell you, okay, I told the printer to print this part, I got this. I told the printer to print this part, I got this. You need a lot of this data, so eventually an AI can look at all this data and said, "You know what? This is your design. Actually, I know that you can do it with this technology, and you can do it a little bit different. It's not currently existing, but if someone will be able to unlock this, then as you can see, the benefits of moving to additive are huge. Meaning, like, it's lower cost, it's no inventory, a lot of advantages. The more we can accelerate the move to design for additive manufacturing, it's going to be beneficial for everyone. Doesn't exist today. It will come. Hey, Shai, over here. So when it comes to you're competing against CNC metal, talk about the barriers to entry to convince the customer to go to you and how often you are winning on replacing metal with metal or composite. Great question. So I would say that our biggest competitor by far is doing nothing, especially in an environment like this, which is a high cost of capital, cash constraint environment. What we're trying to do is go to the manufacturing floor, identify application that we can show the ROI. Show that if you machine this part, it's gonna cost you X. If you print it, it's gonna cost you 1/10 of the X. And then depends on how many parts you need, you do the ROI calculation, can you buy the machine? And then you get ROI through 9 months, 6 months, whatever it is. That's the cycle, okay? The biggest barrier to entry is trust, okay? From the people on the manufacturing floor, because they've been doing this for years, 30 years, okay? Traditional manufacturing is with us for, I don't know, hundreds of years, sometimes. It, it didn't change, okay? So that's the toughest, toughest challenge, to try to convince them to try something new. But once you do, once you're able to get in, this is how you see customers like Dana and Ford and Vestas and others, that once you bridge, you build the trust, they are willing to explore more and more and more. I can tell you that for me, the best part is listening to customers, right? And to hear how they're increasing the adoption. Going to a manufacturing floor, Greg is laughing because he's going to some of these automotive manufacturing floors, and you go to different halls. Once it's starting, it's addicting. Like you go and say, "Oh, you're from Markforged. Let me show you what I'm doing." And then they take you to all the KUKA robots. They replace parts with Markforged, okay? It's a big challenge, but once you get in, once you show the ROI and the CFO signs, we're in, and then it accelerates. And this is why I think you see the utilization increasing, okay? So if you think about it, not only that we put more sockets, not only it was 40-something%, right? But utilization is increasing faster because we go in, we certify one application. You heard the team from Ford, what they said? They certified this solution by saving an $3-$5 million, but they already have in, in the backlog, a lot of more application that they think they can do. We are not involved in this. This is it. For us, it's like... It's very easy from now on. Wow! Thank you. Can you talk about your forthcoming new product, the one behind the curtain, your new products, and maybe scale its significance relative to your existing product line? Yeah. Thank you. Of course, I cannot share what is the new product yet. But if you look about what we're trying to do, we're trying to really build the right foundation to profitable growth. What does it mean? You need to go after high-margin application, high-margin products, okay? It's very tough to do it on the low end. Very, very tough to do it with hobbyist. Impossible. If you look on our product portfolio, it's getting bigger. It's going more industrial, higher margins, okay? This will continue to be the focus. Now, what we're trying to do is get to a few product lines that each one of them can be a $100 million product line, standalone, okay? In my view, the FX20 has this potential. Not tomorrow morning, but we can get there, okay? So new systems that we will introduce are going after the same kind of thinking process. It needs to be a product line that can be profitable, standalone. It can get to $100 million standalone. And by now, we see we have, I think, a few of these new product lines that can help us get there. Hey, Shai. I'm sure you know these numbers, but the build envelope of the FX20 versus the Fortus 900, what's the difference right now? I don't know. The Fortus 900 is definitely bigger than the FX20. I'm not sure by how much. Okay. I don't know. Maybe he knows. All right. Is it But the competition, Troy, is not about the size, okay? That's what she said. The competition is about the strength of the part. Right. No, there's a lot of printers out there that can print. I'm gonna let you finish with that. Yeah, okay. You okay? You sure? It's like with my kids. So again, there's a lot of printers that can print ULTEM, okay? We did not invent ULTEM, but ULTEM eventually standalone is a high temp plastic, okay? So I'll give you a ULTEM part, you will break it, okay? It cannot replace aluminum parts. Not for structural, not for mission-critical application. I showed you before the part with the continuous fiber inside it. That's the holy grail. This is when you can really answer mission-critical application with high temp materials. And as you heard from Triumph here and from other customers that we have, they are looking for the high-end application to really replace aluminum in aircraft. So again, it's not about... Okay? It's about how strong is it. Can you replace metal or not? Traditional manufacturing is metals. That's right. Scott, how much of manufacturing is metals? The majority is metals. So replacing metal requires something which is stronger than metal, lighter than metal, cheaper to fabricate, easier to fabricate, no corrosion, no aluminum fatigue. We did not invent, by the way, the move to advanced composites. That has been done for the last 20, 30 years. We are just the leaders of advanced composites in the additive industry.