|Company Name:||3D Systems Corporation|
|Event Title:||Canaccord Genuity's 33rd Annual Growth Conference Transcript|
|Event Time:||03:30 PM ET|
For the interest of time, we should get started here. Welcome to the 33rd Annual Canaccord Genuity Global Growth Conference. My name is Bobby Burleson, analyst with Canaccord, very happy to have 3D Systems here today.
CFO, Damon Gregoire to give a presentation that will be followed by a little bit of Q&A just in terms of the quick overview, 3D Systems is probably the most dynamic as any other 3D printing companies in terms of paying aggressive believers and growth in the space and also in terms of covering a lot of the ecosystem involved in additive manufacturing in a way that none of the other companies do.
So with that, I'll go ahead and it over to Damon. Thanks.
Senior Vice President and Chief Financial Officer
Good afternoon, everybody.
I also have with me Stacey Witten, who is the Head of our Investor Relations, so should be available after this also. So, let's talk little bit today just about some of the key differentiators with 3D systems, our unmatched portfolio with our leading brands, our technology financial strength, and flexibility, our open ended growth opportunities with our innovative business model, our focused growth initiatives and our experienced management team.
So, what we do is disruptive, transformative, and impactful to the way we design how we create and how we manufacture. And one of the things that drives this also is our convergence with these growth metrics that are here. We are strategically addressing $30 billion plus designed to manufacture value chain. And as you can see here, the growth in 3D Printer Units forecast and the product life cycle management validates that.
So the favorable the growth -- that are out there is one is growing R&D spending globally even in a lot of areas that are having a little bit more economically challenged times of the world are experiencing some R&D spending growth. Reduced time to market from design to manufacturing with increased complexity in the parts and in the things being designed. I will put that along with democratization, so we are trying to make it easier for everybody to use make all the technology available for everybody and will have to be expert users to use this technology.
And then finally sustainability, because this type of technology, I don't know why this keeps changing. This type of technology has the green aspect to it; it allows manufacturing closer to the sources that it allows lower energy, lower waste throughout those processes. And you know as everybody sort of is aware, we do live in exponential time. Things are changing from day-to-day faster than they have ever changed before.
And what we've done -- what our products are doing right now in the value chain is redefining Moore's Law. We are decreasing the cost of the printers and the services that we sell at the same time increasing the speed of the printers and what they offer and what we offer in other services areas also. So in effect, in some ways you can say we're cannibalizing ourselves down to lower ASPs, but that transforms into higher recurring revenues later on and higher profitability as we move through time. And it's always better to cannibalize yourself than have somebody else do it.
So, with the business model that we've been building, it is fairly complicated. So, we do manage it through our effective growth pillars, which is accelerating 3D printer adoption both organically and through acquisitions to continue to expand our Quickparts services, which is our on-demand part services grow our healthcare solutions, build the consumer presence and reinvent the engineer's desktop.
It doesn't look like it's working too well, there you go. Sure, that would be probably better.
I think we are in transition to an impromptu fireside chat, because this is going to take forever. So, just moving into the Q&A, I guess in order for people that don't really understand the technology. Damon, can we just kind of give an overview of how 3D printing works and what the various processes are that are being used right now to print in three dimensions?