Desktop Metal, a global leader in Additive Manufacturing 2.0 technologies for mass production, has announced its financial results for the second quarter ending June 30, 2024.
Ric Fulop, Founder and CEO of Desktop Metal, commented, “Since early 2022, we’ve worked diligently to adjust our cost structure in response to macroeconomic conditions, achieving nine consecutive quarters of non-GAAP opex reduction and significantly lowering our cash burn. I am proud of the progress we’ve made.”
Despite these efforts, Fulop noted, “We are encountering a more challenging business environment with rising rates, reduced capital expenditures, and other macroeconomic pressures. Toward the end of this quarter, we observed a concerning trend: customers have become hesitant to finalize deals due to our deteriorating financial outlook, making it increasingly difficult to meet our targets.”
Fulop continued, “This market feedback clearly indicated the need for decisive action. We believe that the proposed merger with Nano Dimension represents the best path forward for Desktop Metal and our stakeholders. This merger is expected to enhance our competitive position and safeguard shareholder value.”
Second Quarter 2024 Key Business Highlights:
Corporate:
- Continued implementation of cost reduction plans to align with the current 3D printing market.
Product Performance:
- Launched the PureSinter™ Furnace, designed for high-purity, one-run debinding and sintering of metal parts from both additive and traditional manufacturing. The first unit was sold to AmPd Labs in Texas.
- Announced that platinum is now customer-qualified on the DM Production System binder jet 3D printing platform by Legor, a leading Italian metals science company.
- Presented over 24 customer applications and advancements in production metal and ceramic 3D printing at RAPID + TCT, including collaborations with Bega and Eaton.
- Installed the fourth Figur G-15 Digital Sheet Forming system at Wisconsin-based Evology Manufacturing.
- Desktop Health® introduced Flexcera® Smile Ultra+ Dental Resin, now validated for 3D printing strong and lifelike dental restorations for implantology.
Second Quarter 2024 Financial Highlights:
- Revenue: $38.9 million, compared to $53.3 million in the same quarter last year.
- GAAP gross margin: (83)%; Non-GAAP gross margin: 29.2%, affected by one-time noncash charges related to accelerated amortization and depreciation of certain intangible and fixed assets.
- Net loss: $(103.4) million, impacted by one-time noncash charges.
- Adjusted EBITDA: $(13.2) million, showing a 12% improvement year-over-year.
- Cash, cash equivalents, and short-term investments totaled $46.7 million at the end of Q1 2024, with a 40% reduction in the rate of operating cash consumption compared to the previous year.
- Financial guidance for the remainder of the year has been removed due to the pending acquisition by Nano Dimension.
Conference Call Information:
Desktop Metal will hold a conference call on Wednesday, July 31, 2024, at 8:30 a.m. ET to discuss the second quarter results. Participants can join the call by dialing 1-800-717-1738 (for U.S. callers) or 1-646-307-1865 (for international callers) and requesting to join the Desktop Metal financial results conference call. A live webcast and presentation will be available on the Events & Presentations section of ir.desktopmetal.com. A replay will be accessible shortly after the call concludes.
