Desktop Metal, Inc. announced its financial results for the third quarter ended September 30, 2022.
“Our team continued to work diligently in the third quarter to drive adoption of our AM 2.0 mass production solutions with continued traction from both customers and major strategic partners,” said Ric Fulop, Founder and CEO of Desktop Metal. “This was demonstrated by a promising new strategic collaboration with Align Technology, the market leader in clear aligners.”
Fulop continued, “Although we continue to make meaningful progress on our long-term growth strategy, third quarter results did not meet our expectations as macroeconomic environment headwinds accelerated during the quarter, leading some customers to delay purchase decisions. To address this change to our operating backdrop, we have taken decisive actions to accelerate and expand our cost optimization initiative, and will continue to evaluate opportunities to reduce our expense structure and prioritize our path to profitability.”
Fulop concluded, “Despite short-term challenges, the long-term trends supporting broad adoption of additive manufacturing and market growth to over $100 billion in the next decade remain intact, particularly for mass production. Supported by an unmatched portfolio of AM 2.0 solutions, Desktop Metal is well-positioned to continue capturing share of this growing market, and take advantage of the next stage of long-term secular growth.”
Third Quarter 2022 and Recent Business Highlights:
- Announced strategic collaboration with Align Technology to accelerate adoption of digital dentistry in the $30 billion annual dental parts market. Align’s market-leading iTero intraoral scanners will be offered as a seamless managed service to dentists in a subscription model with recurring revenue, enabling a gateway for a connected suite of digital dentistry solutions with a workflow backed by Desktop Labs’ experienced network of dental laboratories and premium Desktop Health 3D printers and materials
- Accelerating and expanding Strategic Integration and Cost Optimization Initiative to reduce expense structure, drive margin expansion, and prioritize path to profitability
- Announced multi-faceted partnership with Siemens to accelerate adoption of AM 2.0 with large manufacturers for scalable production applications
- Expanded partnership with Henkel to qualify additional industrial photopolymer resins on the Xtreme 8K
- Actively engaged with some of the largest companies in the world on Production SystemTMP-50 while remaining steadfast in building a pipeline for this platform
- Demonstrated monetization opportunity of IP portfolio of over 950 patents and pending patent applications with successful injunctive action and initiation of royalty-bearing license structure
- Expanded lineup for world’s best-selling metal binder jet system with Shop System+ and Shop System Pro
- Launched Figur G15, the first commercial platform of its kind to shape standard sheet metal on demand using patent-pending Digital Sheet Forming (DSF) technology
Third Quarter 2022 Financial Highlights:
- Revenue of $47.1 million, up 85.1% from third quarter 2021 revenue of $25.4 million
- GAAP gross margin of (0.7)%; non-GAAP gross margin of 19.9%
- GAAP net loss of $60.8 million; non-GAAP net loss of $33.1 million
- Adjusted EBITDA of $(28.2) million
- Cash, cash equivalents, and short-term investments of $217.3 million as of September 30, 2022
Financial Outlook:
- Fourth quarter 2022 revenue expectation between $51 to $62 million, representing revised full year 2022 revenue expectation between $200 to $210 million, or 78% to 87% growth from 2021
- Fourth quarter 2022 adjusted EBITDA expectation between $(20) to $(26) million, representing revised full year 2022 adjusted EBITDA expectation between $(117) to $(123) million
Conference Call Information:
Desktop Metal will host a conference call on Wednesday, November 9, 2022 at 4:30 p.m. ET to discuss third quarter 2022 results. Participants may access the call at 1-888-999-5318, international callers may use 1-848-280-6460, and request to join the Desktop Metal financial results conference call. A simultaneous webcast of the conference call and the accompanying summary presentation may be accessed online at the Events & Presentations section of ir.desktopmetal.com. A replay will be available shortly after the conclusion of the conference call at the same website.
