Nano Dimension Ltd., “Nano Dimension” or the “Company”), a leading supplier of Additively Manufactured Electronics (“AME”) and multi-dimensional polymer, metal & ceramic Additive Manufacturing (“AM”) 3D printing solutions, announced financial results for the third quarter ended September 30th , 2024 and shared a letter from Yoav Stern, the Company’s Chief Executive Officer and member of the Board of Directors.
Revenue:
- For Q3/2024 was $14.9 million, compared to $12.2 million in Q3/2023.
- For the first nine months of 2024 was $43.2 million, compared to $41.9 million in the same period in 2023.
Gross Margin (“GM”):
- For Q3/2024 was 48.2%, compared to 44.2% in Q3/2023.
- For the first nine months of 2024 was 46.6%, compared to 44% in the same period in 2023.
Adjusted1 Gross Margin (“Adjusted GM”):
- For Q3/2024 was 50.5%, compared to 48.0% in Q3/2023.
- For the first nine months of 2024 was 48.9%, compared to 47.5%. in the same period in 2023.
Net Loss:
- For Q3/2024 was a loss of $8.6 million, compared to a loss of $66.9 million in Q3/2023.
- For the first nine months of 2024 was a loss of $87.9 million, compared to $54.3 million loss in the same period in 2023.
Net Loss excluding changes in the Company’s holdings in Stratasys Ltd.’s (“Stratasys”) shares:
- For Q3/2024 was a loss of $7.9 million, compared to a loss of $26.6 million in Q3/2023.
- For the first nine months of 2024 was a loss $30 million, compared to $71.3 million loss in the same period in 2023.
Adjusted EBITDA:
- For Q3/2024 was negative $14.8 million, compared to negative $30.1 million in Q3/2023.
- For the first nine months of 2024 was negative $44.5 million, compared to negative $77.3 million in same period in 2023.
Net cash burn:
- For Q3/2024 was $3 million, compared to Q3/2023’s $16 million2.
- For the first nine months of 2024 was $21 million, compared to $74 million for same period in 2023.
Details regarding Adjusted GM, Net Loss excluding changes in Company’s holdings in Stratasys’ shares, Adjusted EBITDA, Net Cash Burn and Net Loss excluding changes in Company’s holdings in Stratasys shares can be found below in this press release under “Non-IFRS Measures.”
CEO MESSAGE TO SHAREHOLDERS:
Dear Fellow Shareholders,
I am pleased to report that we have achieved the strongest third quarter performance in our Company's history. This remarkable accomplishment comes despite the broader market experiencing continued uncertainty in capital spending on manufacturing equipment – a challenge that has notably impacted many of our industry peers.
Crucially, it is not just about the top-line. As part of our “Reshaping Nano Initiative,” we have reduced our net cash burn to $3 million for the quarter. This is 80% less than the same quarter last year and a key milestone on our path to being an EBITDA positive business.
What makes this quarter truly extraordinary is not just our financial performance, but also the strategic milestones we've reached. In Q3 alone, our team successfully announced two transformational M&A agreements – with Desktop Metal, Inc. (on July 3rd, 2024) (“Desktop Metal”) and Markforged Holding Corporation (on September 25th, 2024) (“Markforged”). Each of these deals would be considered landmarks in their own right; to execute both in a single quarter is a testament to our team's exceptional execution capabilities and our clear strategic vision.
What is surely more exciting is not what we have done, but what the future of Nano Dimension will be and what it is poised to accomplish.
The New Nano Dimension – which includes the business as it is today and Desktop Metal and Markforged – will have:
- An exemplary technology portfolio that spans digital manufacturing solutions with a focus on additive manufacturing systems that are aligned with the strongest expected future growth of our industry, e.g. additively manufactured electronics, binder jetting for metal, fused filament fabrication (“FFF”) for metal and composites, to name a few.
- Revenue of $340 million based on 2023 results that delivers scale and the promise of sizeable financial results that can flow down to the bottom-line.
- A robust capital position of $475 million expected at the time both transactions will have closed, which provides us the flexibility to support our continued development and secure our business well into the future.
- All of this, along with our financial prowess and meaningful post-merger integration strategy, are expected to enable us to be EBITDA positive in Q4 2026.
Importantly, the above is happening in an industry context where others are losing scale and are themselves jeopardized with a weak capital position. Whether the metric is product or financial, we are poised to succeed.
For those that have followed us over the last few years, most, if not all of this, is not a surprise to you. We have indicated or even said we would accomplish this.
Simply put: Promises made. Promises delivered.
I must address an important matter that requires your attention. An activist investor, Murchinson Ltd. (“Murchinson”), who some of you may recall from their activity last year, has emerged yet again. They seek to challenge and constrain our proven program of growth and transformation through proposals at our upcoming Annual General Meeting. While we respect the right of all shareholders to express their views, we believe their approach will put the very initiatives that have delivered our current successes and positioned us for future growth at risk. A look at their proposals will indicate that Murchinson STILL has yet to create the most basic of plans for value creation, providing NO insight into the business and NO executable ideas.
I urge shareholders to protect their investment and vote “FOR” all of Nano Dimension’s proposals. Act fast – voting cut-off is on Sunday, December 1st, 2024, at 11:59 p.m. ET (it may be even earlier, so please check with your broker). To learn more visit: www.ProtectingNanoValue.com.
Thank you for your continued trust and investment in our Company.
Sincerely,
Yoav Stern
Chief Executive Officer and member of the Board of Directors of Nano Dimension
FINANCIAL RESULTS:
Financial results for the third quarter ended September 30, 2024
- Total revenues for the third quarter of 2024 were $14,856,000, compared to $12,158,000 in the third quarter of 2023. The increase is attributed to increased sales of the Company’s product lines.
- Total cost of revenues for the third quarter of 2024 was $7,700,000, compared to $6,789,000 in the third quarter of 2023. The increase is attributed to increased sales of the Company’s product lines, partially offset by favorable product mix and operational efficiencies.
- As a result of the reorganizational plan executed by the Company in the fourth quarter of 2023 and other cost reduction efforts taken in 2024, the Company’s operating expenses across all departments have decreased in the third quarter of 2024 compared to the third quarter of 2023.
- Research and development (“R&D”) expenses for the third quarter of 2024 were $9,801,000, compared to $12,788,000 in the third quarter of 2023. The decrease is mainly attributed to a decrease in payroll and related expenses, subcontractors and professional services, and materials for R&D use, as well as a decrease in share-based payments expenses, largely associated with organizational synergies.
- Sales and marketing (“S&M”) expenses for the third quarter of 2024 were $6,952,000, compared to $7,715,000 in the third quarter of 2023. The decrease is mainly attributed to a decrease in payroll and related expenses, as well as a decrease in share-based payments expenses, largely associated with organizational synergies.
- General and administrative (“G&A”) expenses for the third quarter of 2024 were $9,960,000, compared to $20,848,000 in the third quarter of 2023. The decrease is mainly attributed to a decrease in professional services, associated in part with organizational synergies.
- Other expenses, net for the third quarter of 2024 were $721,000. The forementioned expenses were related to Desktop Metal and Markforged transaction costs.
- Net loss attributable to owners of the Company for the third quarter of 2024 was $8,346,000, or $0.05 loss per share, compared to net loss of $66,604,000, or $0.26 per share, in the third quarter of 2023. The decrease is mainly attributed to the revaluation of the Company’s investment in Stratasys shares, as well as a decrease in the Company’s operating expenses across all departments.
Financial results for the Nine months ended September 30, 2024
- Total revenues for the nine months period ended September 30, 2024, were $43,206,000, compared to $41,860,000 in the nine months period ended September 30, 2023. The increase is attributed to increased sales of the Company’s product lines in 2024.
- Total cost of revenues for the nine months period ended September 30, 2024, were $23,064,000, compared to $23,430,000 in the nine months period ended September 30, 2023. The decrease is attributed mostly to favorable product mix and increased operational efficiencies.
- As a result of the reorganization plan executed by the Company in the fourth quarter of 2023 and other cost reduction efforts taken in 2024, the Company’s operating expenses across all departments have decreased in the first nine months of 2024 compared to the first nine months of 2023.
- R&D expenses for the nine months period ended September 30, 2024, were $28,055,000, compared to $48,424,000 in the nine months period ended September 30, 2023. The decrease is attributed mostly to a decrease in payroll and related expenses, materials for R&D use, subcontractors and professional services, share-based payments expenses and other R&D expenses, largely associated with organizational synergies.
- S&M expenses for the nine months period ended September 30, 2024, were $20,690,000, compared to $23,418,000 in the nine months period ended September 30, 2023. The decrease is mainly attributed to a decrease in payroll and related expenses, as well as a decrease in share-based payments expenses, largely associated with organizational synergies.
- G&A expenses for the nine months period ended September 30, 2024, were $28,143,000, compared to $44,203,000 in the nine months period ended September 30, 2023. The decrease is mainly attributed to a decrease in professional services expenses, associated in part with organizational synergies.
- Other expenses, net for the nine months period ended September 30, 2024, were $3,333,000. The forementioned expenses mainly related to Desktop Metal and Markforged transaction costs.
- Net loss attributable to owners of the Company for the nine months period ended September 30, 2024 was $87,089,000, or $0.40 loss per share, compared to net loss of $53,501,000, or $0.21 per share, in the nine months period ended September 30, 2023. The increase is mainly attributed to the revaluation of the Company’s investment in Stratasys shares.
Conference call information
The Company will host a conference call to discuss these financial results today, November 20th, 2024, at 9:00 a.m. ET (4:00 p.m. IDT).
We encourage participants to pre-register for the conference call using the following link: https://dpregister.com/sreg/10194549/fdfe9b0a00
Participants can also dial-in/connect by following the below:
- Toll-free: 844-695-5517 (to listen in an ask questions)
- International: +1-412-902-6751 (to listen in and ask questions)
- Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=ruEpbhYm (to view a presentation)
For those unable to participate in the conference call, there will be a replay available from a link on Nano Dimension’s website at http://investors.nano-di.com/events-and-presentations.
