Desktop Metal, Inc. announced its financial results for the first quarter ended March 31, 2023.
“Desktop Metal is off to a solid start to 2023 following very strong growth last year,” said Ric Fulop, Founder and CEO of Desktop Metal. “Customer demand trends for our unique portfolio of AM 2.0 mass production solutions remain resilient, despite an unsteady macro environment, giving us confidence in our growth projections for this year. Additionally, we’ve made significant progress on our cost reduction efforts initiated last year and expanded in February 2023. Going forward, we expect to demonstrate continued reductions in our cost structure in order to expand margins and deliver on our adjusted EBITDA commitments. We believe we can differentiate ourselves as we navigate a difficult economic backdrop relative to our industry peers.”
First Quarter 2023 and Recent Business Highlights:
- Continued and expanded the cost reduction plan announced in 2022 to add an additional $50 million in annualized savings, as announced in February 2023, after successfully completing $50 million in annualized savings in 2022. Total combined $100 million in annualized cost savings remain on-track in order to reduce expense structure, expand margins, and drive to profitability
- Expanding customer relationships with a growing number of high adoption Super Fleet customers, or those with three or more AM 2.0 printing systems. We now have more than 370 Super Fleet customers producing a high volume of end-use parts
- Continued progress on Production SystemTM platforms including expanding relationships with various consumer electronics customers, a segment we believe we can generate eight figures of revenue over next 18 months
- Launched Live SuiteTM, a highly differentiated end-to-end software hub delivering generative AI solutions for AM 2.0
- Expanded technical ceramic offerings across our portfolio of binder jet systems, where we're seeing increasing adoption for silicon carbide applications
- Continued expansion of leading production materials library including Copper Alloy C18150 and Titanium Alloy Ti64 on the Production SystemTM and 304L Stainless Steel on the Shop SystemTM
First Quarter 2023 Financial Highlights:
- Revenue of $41.3 million, down 5.5% from first quarter 2022 revenue of $43.7 million
- GAAP gross margin of (3.3)%; non-GAAP gross margin of 18.0%, an improvement of 90 basis points from first quarter 2022
- GAAP net loss of $52.6 million including $10.4 million amortization of acquired intangibles; non-GAAP net loss of $27.7 million
- Adjusted EBITDA of $(24.4) million, an improvement of $17.1 million from first quarter 2022
- Cash, cash equivalents, and short-term investments of $149.8 million as of March 31, 2023
Financial Outlook:
- Reaffirming revenue expectation of between $210 to $260 million for full year 2023
- Reaffirming Adjusted EBITDA expectation of between $(50) to $(25) million for full year 2023, with expectation to achieve Adjusted EBITDA breakeven before year end 2023
Desktop Metal has not provided a reconciliation of its Adjusted EBITDA outlook to net income because estimates of all of the reconciling items cannot be provided without unreasonable efforts. See “Non-GAAP Financial Information.”
Conference Call Information:
Desktop Metal will host a conference call on Wednesday, May 10, 2023 to discuss first quarter 2023 results. Participants may access the call at 1-877-407-4018, international callers may use 1-201-689-8471, 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.
