- Revenue up 35% from the fourth quarter of 2020 to $11.3
million
- Expanded materials portfolio to over 225 materials across
metals, composites, polymers, ceramics, biocompatible materials,
and now wood and elastomers
- Accelerated customer adoption, adding more customers in the
first quarter of 2021 than all of 2020 combined
- Introduced Forust process for high-volume production of printed
wood parts
- Launched Flexcera as the first major product line for dental
applications from Desktop Health and received FDA 510(k) clearance
for Flexcera Base
- Acquired Adaptive3D, a category-leader in printable elastomers
and rubber materials
- Robust liquidity position with cash, cash equivalents and
short-term investments of $572.2 million as of March 31, 2021
Desktop Metal, Inc. (NYSE: DM) today announced its financial
results for the first quarter ended March 31, 2021.
“We are pleased with the strong start to the year. Revenue
growth accelerated as we captured strong organic momentum and
inorganic opportunities,” said Ric Fulop, Founder and CEO of
Desktop Metal. “Continued innovation in our core business, coupled
with our inorganic strategy, strengthens our ability to grow our
product portfolio, expand the high-volume applications we can offer
customers, and increase our category leadership. We are well
positioned to execute on our long-term growth strategy focused on
Additive Manufacturing 2.0 for high-volume, end-use parts.”
First Quarter 2021 and Recent Business Highlights:
- Expanded materials portfolio to over 225 materials across
metals, composites, polymers, ceramics, biocompatible materials,
and now wood and elastomers
- Accelerated customer adoption, adding more customers in the
first quarter of 2021 than all of 2020 combined
- Introduced Forust process for high-volume, printed wood parts
leveraging existing metal binder jetting printer technology
- Launched Flexcera as the first major product line for dental
applications from Desktop Health and received FDA 510(k) clearance
for Flexcera Base
- Acquired Adaptive3D, a category-leader in printable elastomers
and rubber materials, adding to our growing materials
portfolio
- Closed EnvisionTEC acquisition and began shipping two new
area-wide photopolymer printers: the Xtreme 8K and Envision One
HT
- Completed redemption of all outstanding public warrants in
first quarter of 2021 to streamline capital structure and enhance
cash position, contributing $170.7 million to our cash
position
- Grew Desktop Metal team to over 470 employees today, up from
180 employees in May 2020
First Quarter 2021 Financial Highlights:
- Revenue of $11.3 million, up 35% from the fourth quarter of
2020 and up 234% from the first quarter of 2020
- Net Loss of $59.1 million, including the non-cash negative
change in fair value of warrant liability of $56.6 million and an
income tax benefit of $27.9 million
- Non-GAAP Gross Profit of $0.6 million, an improvement of $3.3
million from the first quarter of 2020
- Adjusted EBITDA of $(19.4) million
- Strong liquidity position with cash, cash equivalents and
short-term investments of $572.2 million as of March 31, 2021
Outlook for Full Year 2021:
- Reiterating expectation of over $100 million of revenue for
2021, exiting the year with an annualized revenue run rate of $160
million
- Adjusted EBITDA in the range of $(60)–(70) million
Conference Call Information:
Desktop Metal will host a conference call on May 17, 2021 at
4:30 p.m. EDT to discuss first quarter 2021 results. Participants
may access the call at 1-877-300-8521, international callers may
use 1-412-317-6026, 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 from a link in the Events & Presentations section of
https://ir.desktopmetal.com. A replay will be available shortly
after the conclusion of the conference call at the same
website.
About Desktop Metal
Desktop Metal, Inc., based in Burlington, Massachusetts, is
accelerating the transformation of manufacturing with an expansive
portfolio of 3D printing solutions, from rapid prototyping to mass
production. Founded in 2015 by leaders in advanced manufacturing,
metallurgy, and robotics, the company is addressing the unmet
challenges of speed, cost, and quality to make additive
manufacturing an essential tool for engineers and manufacturers
around the world. Desktop Metal was selected as one of the world’s
30 most promising Technology Pioneers by the World Economic Forum
and named to MIT Technology Review’s list of 50 Smartest
Companies.
For more information, visit www.desktopmetal.com.
Forward-looking Statements
This press release contains certain forward-looking statements
within the meaning of the federal securities laws. Forward-looking
statement generally are identified by the words “believe,”
“project,” “expect,” “anticipate,” “estimate,” “intend,”
“strategy,” “future,” “opportunity,” “plan,” “may,” “should,”
“will,” “would,” “will be,” “will continue,” “will likely result,”
and similar expressions. Forward-looking statements are
predictions, projections and other statements about future events
that are based on current expectations and assumptions and, as a
result, are subject to risks and uncertainties. Many factors could
cause actual future events to differ materially from the
forward-looking statements in this document, including but not
limited to the risks and uncertainties set forth in Desktop Metal,
Inc.'s filings with the U.S. Securities and Exchange Commission.
These filings identify and address other important risks and
uncertainties that could cause actual events and results to differ
materially from those contained in the forward-looking statements.
Forward-looking statements speak only as of the date they are made.
Readers are cautioned not to put undue reliance on forward-looking
statements, and Desktop Metal, Inc. assumes no obligation and does
not intend to update or revise these forward-looking statements,
whether as a result of new information, future events, or
otherwise.
DESKTOP METAL, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(UNAUDITED)
(in thousands, except share
and per share amounts)
March 31,
December 31,
2021
2020
Assets
Current assets:
Cash and cash equivalents
$
416,379
$
483,525
Short-term investments
155,847
111,867
Restricted cash
1,021
—
Accounts receivable
9,234
6,516
Inventory
20,837
9,708
Prepaid expenses and other
current assets
18,657
976
Total current assets
621,975
612,592
Restricted cash
776
612
Property and equipment, net
12,331
12,160
Capitalized software, net
268
312
Goodwill
201,308
2,252
Intangible assets, net
144,103
9,102
Other noncurrent assets
6,826
4,879
Total Assets
$
987,587
$
641,909
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
5,227
$
7,591
Customer deposits
2,792
1,480
Current portion of lease
liability
1,639
868
Accrued expenses and other
current liabilities
15,324
7,565
Deferred revenue
3,405
3,004
Current portion of long-term
debt, net of deferred financing costs
11,019
9,991
Total current liabilities
39,406
30,499
Warrant liability
—
93,328
Long-term debt, net of deferred
financing costs
163
—
Lease liability, net of current
portion
3,248
2,157
Deferred tax liability
5,206
—
Total liabilities
48,023
125,984
Commitments and
Contingencies
Stockholders’ Equity
Preferred Stock, $0.0001 par
value—authorized, 50,000,000 shares; no shares issued and
outstanding at March 31, 2021 and December 31, 2020,
respectively
—
—
Common Stock, $0.0001 par
value—500,000,000 shares authorized; 252,660,102 and 226,756,733
shares issued at March 31, 2021 and December 31, 2020,
respectively, 252,436,919 and 224,626,597 shares outstanding at
March 31, 2021 and December 31, 2020, respectively
25
23
Additional paid-in capital
1,326,945
844,188
Accumulated deficit
(387,385
)
(328,277
)
Accumulated other comprehensive
income (loss)
(21
)
(9
)
Total Stockholders’
Equity
939,564
515,925
Total Liabilities and
Stockholders’ Equity
$
987,587
$
641,909
DESKTOP METAL, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per
share amounts)
Three Months Ended
March 31,
2021
2020
Revenues
Products
$
10,311
$
2,694
Services
1,002
691
Total revenues
11,313
3,385
Cost of sales
Products
10,487
5,041
Services
1,413
1,163
Total cost of sales
11,900
6,204
Gross margin
(587
)
(2,819
)
Operating expenses
Research and development
10,858
12,340
Sales and marketing
5,449
4,494
General and administrative
13,846
2,625
Total operating expenses
30,153
19,459
Loss from operations
(30,740
)
(22,278
)
Change in fair value of warrant
liability
(56,576
)
—
Interest expense
(73
)
(104
)
Interest and other income,
net
361
578
Loss before income
taxes
(87,028
)
(21,804
)
Income tax benefit
27,920
—
Net loss
$
(59,108
)
$
(21,804
)
Net loss per share—basic and
diluted
$
(0.25
)
$
(0.14
)
DESKTOP METAL, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF COMPREHENSIVE LOSS
(UNAUDITED)
(in thousands)
Three Months Ended
March 31,
2021
2020
Net loss
$
(59,108
)
$
(21,804
)
Other comprehensive (loss)
income, net of taxes:
Unrealized gain (loss) on
available-for-sale marketable securities, net
1
(159
)
Foreign currency translation
adjustment
(13
)
—
Total comprehensive loss, net of
taxes of $0
$
(59,120
)
$
(21,963
)
DESKTOP METAL, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF STOCKHOLDERS’ EQUITY
(UNAUDITED)
(in thousands, except share
amounts)
Accumulated
Other
Common Stock
Additional
Comprehensive
Total
Voting
Paid-in
Accumulated
(Loss)
Stockholders’
Shares
Amount
Capital
Deficit
Income
Equity
BALANCE—January 1, 2021
224,626,597
$
23
$
844,188
$
(328,277
)
$
(9
)
$
515,925
Exercise of Common Stock
options
163,228
—
180
—
—
180
Vesting of restricted Common
Stock
56,015
—
—
—
—
—
Vesting of restricted stock
units
15,265
—
—
—
—
—
Repurchase of shares for employee
tax withholdings
(2,241
)
—
(54
)
—
—
(54
)
Issuance of Common Stock for
acquisitions
5,036,142
—
159,847
—
—
159,847
Stock-based compensation
expense
—
—
2,217
—
—
2,217
Vesting of Trine Founder
shares
1,850,938
—
—
—
—
—
Exercise of warrants
20,690,975
2
320,567
—
—
320,569
Net loss
—
—
—
(59,108
)
—
(59,108
)
Other comprehensive income
(loss)
—
—
—
—
(12
)
(12
)
BALANCE—March 31, 2021
252,436,919
$
25
$
1,326,945
$
(387,385
)
$
(21
)
$
939,564
Accumulated
Other
Legacy Convertible
Common Stock
Additional
Comprehensive
Total
Preferred Stock
Voting
Paid-in
Accumulated
(Loss)
Stockholders’
Shares
Amount
Shares
Amount
Capital
Deficit
Income
Equity
BALANCE—January 1, 2020
100,038,109
$
436,533
26,813,113
$
3
$
16,722
$
(294,262
)
$
75
$
(277,462
)
Retroactive application of
recapitalization
(100,038,109
)
(436,533
)
128,100,821
13
436,520
—
—
436,533
Adjusted balance, beginning of
period
—
—
154,913,934
16
453,242
(294,262
)
75
159,071
Exercise of Common Stock
options
—
—
286,636
—
132
—
—
132
Vesting of restricted Common
Stock
—
—
1,750,555
—
2
—
—
2
Stock-based compensation
expense
—
—
—
—
1,259
—
—
1,259
Common Stock warrants issued
—
—
—
—
124
—
—
124
Net loss
—
—
—
—
—
(21,804
)
—
(21,804
)
Other comprehensive income
(loss)
—
—
—
—
—
—
(159
)
(159
)
BALANCE—March 31, 2020
—
$
—
156,951,125
$
16
$
454,759
$
(316,066
)
$
(84
)
$
138,625
DESKTOP METAL, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
Three Months Ended March
31,
2021
2020
Cash flows from operating
activities:
Net loss
$
(59,108
)
$
(21,804
)
Adjustments to reconcile net loss
to net cash used in operating activities:
Depreciation and amortization
3,892
2,321
Stock-based compensation
2,217
1,259
Change in fair value of warrant
liability
56,576
—
Expense related to Common Stock
warrants issued
—
124
Amortization (accretion) of
discount on investments
406
(22
)
Amortization of debt financing
cost
4
4
Provision for bad debt
72
—
Net increase in accrued interest
related to marketable securities
(240
)
(124
)
Net unrealized (gain) loss on
marketable securities
(25
)
—
Deferred tax benefit
(27,921
)
—
Changes in operating assets and
liabilities:
Accounts receivable
(61
)
752
Inventory
(2,381
)
(3,238
)
Prepaid expenses and other
current assets
(4,276
)
393
Other assets
(30
)
—
Accounts payable
(3,856
)
(989
)
Accrued expenses and other
current liabilities
(5,247
)
(976
)
Customer deposits
(1,234
)
285
Deferred revenue
105
(339
)
Change in right of use assets and
lease liabilities, net
(22
)
(80
)
Net cash used in operating
activities
(41,129
)
(22,434
)
Cash flows from investing
activities:
Purchases of property and
equipment
(262
)
(1,004
)
Purchase of marketable
securities
(92,386
)
(17,616
)
Proceeds from sales and
maturities of marketable securities
48,241
49,300
Cash paid for acquisition, net of
cash acquired
(137,646
)
—
Net cash (used in) provided by
investing activities
(182,053
)
30,680
Cash flows from financing
activities:
Payment of issuance costs related
to reverse recapitalization
(1,239
)
—
Proceeds from the exercise of
stock warrants
158,308
—
Payment of taxes related to net
share settlement of upon vesting of restricted stock units
(54
)
—
Proceeds from exercise of stock
options
180
132
Net cash provided by financing
activities
157,195
132
Net (decrease) increase in cash,
cash equivalents, and restricted cash
(65,987
)
8,378
Effect of exchange rate
changes
26
—
Cash and cash equivalents at
beginning of period
483,525
66,161
Restricted cash
612
612
Cash, cash equivalents, and
restricted cash at end of period
$
418,176
$
75,151
Supplemental cash flow
information:
Interest paid
$
73
$
107
Non-cash investing and
financing activities:
Net unrealized (gain) loss on
investments
$
(1
)
$
159
Exercise of private placement
warrants
$
149,904
$
—
Common Stock issued for
acquisitions
$
159,847
$
—
Additions to right of use assets
and lease liabilities
$
364
$
—
Purchase of property and
equipment included in accounts payable
$
50
$
—
Receivable for warrants
exercised
$
12,357
$
—
NON-GAAP FINANCIAL INFORMATION
This press release contains non-GAAP financial measures,
including Non-GAAP gross margin, non-GAAP operating loss, non-GAAP
net loss, EBITDA and Adjusted EBITDA.
- We define Non-GAAP gross margin as GAAP gross margin excluding
the effect of stock-based compensation, amortization of acquired
intangible assets, acquisition-related and other transactional
charges included in general and administrative expenses and change
in fair value of warrant liability
- We define Non-GAAP operating loss as GAAP operating loss
excluding the effect of stock-based compensation, amortization of
acquired intangible assets, acquisition-related and other
transactional charges included in general and administrative
expenses and change in fair value of warrant liability
- We define Non-GAAP net loss as GAAP net loss excluding the
effect of stock-based compensation, amortization of acquired
intangible assets, acquisition-related and other transactional
charges included in general and administrative expenses and change
in fair value of warrant liability
- We define EBITDA as GAAP net income (loss) excluding interest,
income taxes and depreciation and amortization expense
- We define Adjusted EBITDA as EBITDA excluding stock based
compensation, warrant expenses and transaction costs associated
with acquisitions
In addition to Desktop Metal’s results determined in accordance
with GAAP, Desktop Metal’s management uses this non-GAAP financial
information to evaluate the Company’s ongoing operations and for
internal planning and forecasting purposes. We believe that this
non-GAAP financial information, when taken collectively, may be
helpful to investors in assessing Desktop Metal’s operating
performance.
We believe that the use of Non-GAAP gross margin, non-GAAP
operating loss, non-GAAP net loss, EBITDA and Adjusted EBITDA
provides an additional tool for investors to use in evaluating
ongoing operating results and trends because it eliminates the
effect of financing, capital expenditures, and non-cash expenses
such as stock-based compensation and warrants, and provides
investors with a means to compare Desktop Metal’s financial
measures with those of comparable companies, which may present
similar non-GAAP financial measures to investors. However,
investors should be aware that when evaluating Non-GAAP gross
margin, non-GAAP operating loss, non-GAAP net loss, EBITDA and
Adjusted EBITDA, we may incur future expenses similar to those
excluded when calculating these measures. In addition, our
presentation of these measures should not be construed as an
inference that our future results will be unaffected by unusual or
non-recurring items. Our computation of these measures, may not be
comparable to other similarly titled measures computed by other
companies because not all companies calculate these measures in the
same fashion.
Because of these limitations, Non-GAAP gross margin, non-GAAP
operating loss, non-GAAP net loss, EBITDA and Adjusted EBITDA
should not be considered in isolation or as a substitute for
performance measures calculated in accordance with GAAP. We
compensate for these limitations by relying primarily on our GAAP
results and using Non-GAAP gross margin, non-GAAP operating loss,
non-GAAP net loss, EBITDA and Adjusted EBITDA on a supplemental
basis. Management uses, and investors should consider, our non-GAAP
financial measures only in conjunction with our GAAP results.
Set forth below is a reconciliation of each Non-GAAP financial
measure used in this press release to its most directly comparable
GAAP financial measure.
DESKTOP METAL, INC.
NON-GAAP RECONCILIATION
TABLE
(in thousands)
For the Three Months
Ended
March 31,
(Dollars in thousands)
2021
2020
GAAP gross margin
$
(587
)
$
(2,819
)
Stock-based compensation included
in cost of sales
117
100
Amortization of acquired
intangible assets included in cost of sales
1,091
—
Non-GAAP gross margin
$
621
$
(2,719
)
GAAP operating loss
$
(30,740
)
$
(22,278
)
Stock-based compensation
2,217
1,259
Amortization of acquired
intangible assets included in cost of sales
1,091
—
Amortization of acquired
intangibles assets
1,208
164
Acquisition-related and other
transactional charges included in general and administrative
expenses
4,984
—
Non-GAAP operating
loss
$
(21,240
)
$
(20,855
)
GAAP net loss
$
(59,108
)
$
(21,804
)
Stock-based compensation
2,217
1,259
Amortization of acquired
intangible assets included in cost of sales
1,091
—
Amortization of acquired
intangibles assets
1,208
164
Acquisition-related and other
transactional charges included in general and administrative
expenses
4,984
—
Change in fair value of warrant
liability
56,576
—
Non-GAAP net loss
$
6,968
$
(20,381
)
DESKTOP METAL, INC.
ADJUSTED EBITDA RECONCILIATION
TABLE
(in thousands)
For the Three Months
Ended
March 31,
(Dollars in thousands)
2021
2020
Net loss attributable to common
stockholders
$
(59,108
)
$
(21,804
)
Interest (income) expense,
net
(42
)
(478
)
Income tax benefit
(27,920
)
—
Depreciation and amortization
3,892
2,321
EBITDA
(83,178
)
(19,961
)
Change in fair value of warrant
liability
56,576
—
Stock compensation expense
2,217
1,259
Warrant expense
—
139
Transaction costs associated with
acquisitions
4,984
—
Adjusted EBITDA
$
(19,401
)
$
(18,563
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210517005875/en/
Investor Relations Jay Gentzkow (781) 730-2110
jaygentzkow@desktopmetal.com Press Contact Lynda McKinney
(978) 224-1282 lyndamckinney@desktopmetal.com
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