NextTrip, Inc. Q4 FY2021 earnings call

• Company is in a stronger position than a year ago, doubling revenue, improved balance sheet, added key blue-chip customers. - OEM agreements with Additive Industries, DMG MORI, and Aconity3D. - Added world-class customers like Los Alamos National Labs, Safran. - Strengthened engineering and management teams. - Introduced PrintRite3D for SLS polymer process. - Shift to subscription-based software-only solution. - Became a key founding member of an ASTM Consortium, added Aconity3D as a PrintRite3D member, demonstrated closed-loop manufacturing and MES integration with AMFG.

Revenue for fiscal 2021 totaled $1.7 million, up from $807,000 in 2020, primarily due to increased sales of PrintRite3D systems. Q4 2021 revenue was $350,000 vs. $200,000 in Q4 2020. Gross profit for 2021 was $1.1 million vs. $216,000 in 2020, with Q4 2021 gross profit at $200,000 vs. negative $22,000 in Q4 2020. Gross margin in 2021 was 66% vs. 27% in 2020.

• Expect subscription pricing to impact business in the second half of 2022. - Software-only positioning to affect later in 2023. - Market size projection: ~12,000 metal AM systems today, growing ~20% YoY, aiming for >10% market share in software-only subscription by 2025 yielding ~$65M revenue, even 3% penetration would yield ~$20M.

• Labor market competition, as highly trained employees are sought after. - Supply chain issues could impact printer shipments. - Potential competition entering the market due to open APIs and industry standards.

Q: When does the inflection point for consistent quarter-over-quarter revenue growth take place?

A: Expect subscription pricing to affect business in second half of 2022, software-only positioning to impact later in 2023; working with several OEMs on next-gen printers.

Q: Feedback on new pricing model?

A: Resonated strongly with customers, helps scale discussions and ROI understanding.

Q: OEM revenue flow?

A: Depends on OEM's pricing model; can be non-optional (paid on every shipped machine) or optional (revenue starts when customer turns on).

Q: Competition with open APIs?

A: Sigma has 10 years of technical development and IP, deep domain expertise, patents, and a strong team, giving a competitive edge despite open APIs.