- Revenue of $52.3 million, down from $60.6 million in the same
quarter a year ago, and up 22% sequentially over the prior
quarter
- Year-over-year improvements to net loss, adjusted EBITDA, gross
margins, non-GAAP gross margins, operating expenses, and operating
cash flow following more than $150 million in cost reduction
efforts announced since June 2022
- Net loss of $(323.4) million in 2023 compared to net loss of
$(740.3) million in 2022
- Adjusted EBITDA of $(9.2 million), a year-over-year improvement
of 56% – and the company’s strongest quarterly performance to
date
- GAAP gross margin of (32)%; GAAP gross margin was negatively
impacted by one-time non-cash restructuring activities in the
quarter. Non-GAAP gross margin of 34%, a year-over-year improvement
of 39.9%.
- Quarterly GAAP operating expenses declined 58% year over year,
both periods were impacted by goodwill impairment. Quarterly
non-GAAP operating expenses declined for seven consecutive quarters
to $31.6 million, down 39% from the start of DM’s cost reduction
initiative
- Cash, cash equivalents, and short-term investments closed
fourth quarter 2023 at $84.5 million, as rate of cash consumption
declined 25% compared to the same year-ago quarter
- Initiated a review of strategic alternatives for industrial
photopolymer business in effort to further strengthen position in
our core healthcare photopolymers and production binder jetting for
metal, sand and ceramic parts
- Full year 2024 revenue guidance of between $175 and $215
million, and adjusted EBITDA between $(30) and $(10) million, with
expectation to achieve adjusted EBITDA breakeven in the second half
of 2024
Desktop Metal, Inc. (NYSE: DM), a global leader in Additive
Manufacturing 2.0 technologies for mass production, today announced
its financial results for the fourth quarter and full year ended
December 31, 2023.
“Despite a challenging capital investment environment led by
elevated interest rates and slower sales cycles, I’m proud that
Team DM buckled down and delivered a much improved operating
performance including reduced not loss and a record adjusted EBITDA
performance,” said Ric Fulop, Founder and CEO of Desktop Metal.
“While we didn’t make our internal target of A-EBITDA positive
by the end of the year, as some customer projects rolled into 2024,
we are now very, very close to that goal,” Fulop continued. “We now
enter the year with a lower cost structure that makes us resilient
for the long term. The hard work will continue as we drive toward
profitability, a goal that is clearly within sight despite the
tough market conditions.”
Fulop noted that DM continues to see strong demand for
production binder jet systems that produce metal, sand and ceramic
parts, as well as increasing evidence of the value of Additive
Manufacturing 2.0 systems. For the full year, DM reported record
recurring revenue of $65 million, a 29% increase over the prior
year that now represents 34% of revenue, up from 24% from 2022.
“Our all-time high recurring revenue levels prove that customers
who have adopted our technology are using it successfully and
getting great value from our technologies,” Fulop said.
Fourth Quarter 2023 and Recent Business Highlights:
Corporate
- Continued execution of cost reduction plans with expectation of
positive adjusted EBITDA in the second half of 2024
Product Performance
- Desktop Metal and Evonik expand partnership, announce
qualification of INFINAM® ST 6100 L on large format Additive
Manufacturing 2.0 systems for high-performance, high-temperature
products
- Desktop Health™ announces Flexcera™ Base Ultra+ dental resin
for stronger, more comfortable 3D Printed dentures
- Desktop Metal now shipping the Figur G15 – a Digital Sheet
Metal Forming machine that eliminates the need for custom
tooling
- Desktop Health announces first patients treated with
FDA-Cleared CMFlex™ – and off-the-shelf 3D printed synthetic bone
graft product pioneered by Dimension Inx on the 3D-Bioplotter®
- Desktop Metal launches Live Monitor™ for users of Additive
Manufacturing 2.0 production technology
- DM now has metal and ceramic parts in production in multiple
high value programs in defense and aerospace with parts in several
jet engine families, major platforms like F35 and in several space
vehicles
- Growing business in Gigacasting with several global
automakers
Fourth Quarter 2023 Financial Highlights
- Revenue of $52.3 million, down from $60.6 million in the same
quarter a year ago, and up 22% sequentially over the prior
quarter
- GAAP gross margin of (32)%; GAAP gross margin was negatively
impacted by restructuring activities in the quarter. Non-GAAP gross
margin of 34%, a year-over-year increase of 39.9%.
- GAAP net loss of $(174.5) million, including $110.5 million of
goodwill impairment; non-GAAP net loss of $(10.9) million
- Adjusted EBITDA of $(9.2) million, a year-over-year improvement
of 56% – and the company’s strongest quarterly performance to
date
- Cash, cash equivalents, and short-term investments closed
fourth quarter 2023 at $84.5 million, as rate of cash consumption
declined 25% compared to the same year-ago quarter
Financial Outlook
- Revenue expectation of between $175 million to $215 million for
2024
- Adjusted EBITDA of between $(30) million to $(10) million for
full-year 2024
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 Friday, March 15,
2024 to discuss fourth 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.
About Desktop Metal:
Desktop Metal (NYSE:DM) is driving Additive Manufacturing 2.0, a
new era of on-demand, digital mass production of industrial,
medical, and consumer products. Our innovative 3D printers,
materials, and software deliver the speed, cost, and part quality
required for this transformation. We’re the original inventors and
world leaders of the 3D printing methods we believe will empower
this shift, binder jetting and digital light processing. Today, our
systems print metal, polymer, sand and other ceramics, as well as
foam and recycled wood. Manufacturers use our technology worldwide
to save time and money, reduce waste, increase flexibility, and
produce designs that solve the world’s toughest problems and enable
once-impossible innovations. Learn more about Desktop Metal and our
#TeamDM brands at www.desktopmetal.com.
Forward-looking Statements:
This press release contains forward-looking statements within
the meaning of the federal securities laws. All statements other
than statements of historical facts contained in these
communications, including statements regarding Desktop Metal’s
future results of operations and financial position, financial
targets, business strategy, and plans and objectives for future
operations, are forward-looking statements. Forward-looking
statements 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: demand for Desktop Metal’s products and services; the
global macro-economic environment; impacts of rapid technological
change in the additive manufacturing industry; Desktop Metals’
ability to realize the benefits from cost saving measures; and
supply and logistics disruptions, including shortages and delays.
For more information about risks and uncertainties that may impact
Desktop Metal’s business, financial condition, results of
operations and prospects generally, please refer to Desktop Metal’s
reports filed with the SEC, including without limitation the “Risk
Factors” and/or other information included in the Form 10-Q filed
with the SEC on November 9, 2023, and such other reports as Desktop
Metal has filed or may file with the SEC from time to time. 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.
CONSOLIDATED BALANCE
SHEETS
(in thousands, except share
and per share amounts)
December 31,
2023
2022
Assets
Current assets:
Cash and cash equivalents
$
83,845
$
76,291
Current portion of restricted cash
233
4,510
Short‑term investments
625
108,243
Accounts receivable
37,690
38,481
Inventory
82,639
91,736
Prepaid expenses and other current
assets
11,105
17,155
Total current assets
216,137
336,416
Restricted cash, net of current
portion
612
1,112
Property and equipment, net
35,840
56,271
Goodwill
—
112,955
Intangible assets, net
168,259
219,830
Other noncurrent assets
37,153
27,763
Total Assets
$
458,001
$
754,347
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
18,190
$
25,105
Customer deposits
5,356
11,526
Current portion of lease liability
7,404
5,730
Accrued expenses and other current
liabilities
27,085
26,723
Current portion of deferred revenue
11,739
13,719
Current portion of long‑term debt, net of
deferred financing costs
330
584
Total current liabilities
70,104
83,387
Long-term debt, net of current portion
89
311
Convertible notes
112,565
111,834
Lease liability, net of current
portion
23,566
17,860
Deferred revenue, net of current
portion
3,696
3,664
Deferred tax liability
3,523
8,430
Other noncurrent liabilities
2,806
1,359
Total liabilities
216,349
226,845
Commitments and Contingencies (Note
17)
Stockholders’ Equity
Preferred Stock, $0.0001 par
value—authorized, 50,000,000 shares; no shares issued and
outstanding as of December 31, 2023 and December 31, 2022,
respectively
—
—
Common Stock, $0.0001 par
value—500,000,000 shares authorized; 325,277,419 and 318,235,106
shares issued as of December 31, 2023 and December 31, 2022,
respectively, 325,271,670 and 318,133,434 shares outstanding as of
December 31, 2023 and December 31, 2022, respectively
33
32
Additional paid‑in capital
1,908,504
1,874,792
Accumulated deficit
(1,632,225)
(1,308,954)
Accumulated other comprehensive loss
(34,660)
(38,368)
Total Stockholders’ Equity
241,652
527,502
Total Liabilities and Stockholders’
Equity
$
458,001
$
754,347
See notes to consolidated financial
statements.
DESKTOP METAL, INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(in thousands, except per
share amounts)
Years Ended December
31,
2023
2022
2021
Revenues
Products
$
168,091
$
190,248
$
105,994
Services
21,607
18,775
6,414
Total revenues
189,698
209,023
112,408
Cost of sales
Products
184,614
178,952
87,450
Services
15,174
15,000
6,665
Total cost of sales
199,788
193,952
94,115
Gross profit (loss)
(10,090)
15,071
18,293
Operating expenses
Research and development
85,096
96,878
68,131
Sales and marketing
40,334
68,091
47,995
General and administrative
66,272
83,065
78,041
In-process research and development assets
acquired
—
—
25,581
Impairment charges
8,518
—
—
Goodwill impairment
112,911
498,800
—
Total operating expenses
313,131
746,834
219,748
Loss from operations
(323,221)
(731,763)
(201,455)
Change in fair value of warrant
liability
—
—
(56,576)
Interest expense
(4,099)
(1,743)
(149)
Interest and other (expense) income,
net
944
(8,335)
(11,822)
Loss before income taxes
(326,376)
(741,841)
(270,002)
Income tax benefit
3,105
1,498
29,668
Net loss
$
(323,271)
$
(740,343)
$
(240,334)
Net loss per share—basic and diluted
$
(1.00)
$
(2.35)
$
(0.92)
Weighted average shares outstanding, basic
and diluted
322,196
314,817
260,770
See notes to consolidated financial
statements.
DESKTOP METAL, INC.
CONSOLIDATED STATEMENTS OF
COMPREHENSIVE LOSS
(in thousands)
Years Ended December
31,
2023
2022
2021
Net loss
$
(323,271)
$
(740,343)
$
(240,334)
Other comprehensive (loss) income, net of
taxes:
Unrealized loss
(203)
(290)
(40)
Foreign currency translation
adjustment
3,911
(31,664)
(6,365)
Total comprehensive (loss) income, net of
taxes of $0
$
(319,563)
$
(772,297)
$
(246,739)
See notes to consolidated financial
statements.
DESKTOP METAL, INC.
CONSOLIDATED STATEMENTS OF
STOCKHOLDERS’ EQUITY
(in thousands, except share
amounts)
Accumulated
Additional
Other
Total
Common Stock
Paid‑in
Accumulated
Comprehensive
Stockholders’
Shares
Amount
Capital
Deficit
(Loss)
Equity
BALANCE—January 1, 2021
224,626,597
$
23
$
844,188
$
(328,277)
$
(9)
$
515,925
Exercise of Common Stock options
5,732,247
1
6,425
—
—
6,426
Vesting of restricted Common Stock
491,293
—
—
—
—
—
Repurchase of shares for employee tax
withholdings - RSA
(109,150)
—
(958)
—
—
(958)
Vesting of restricted share units
650,777
—
—
—
—
—
Repurchase of shares for employee tax
withholdings - RSU
(61,498)
—
(541)
—
—
(541)
Issuance of Common Stock in connection
with acquisitions
57,267,401
5
620,585
—
—
620,590
Issuance of Common Stock in connection
with acquired in-process research and development
334,370
—
4,300
—
—
4,300
Stock‑based compensation expense
—
—
28,778
—
—
28,778
Vesting of Trine Founder Shares
1,850,938
—
—
—
—
—
Common Stock issued in connection with
warrants exercised
20,690,975
2
320,567
—
—
320,569
Net loss
—
—
—
(240,334)
—
(240,334)
Other comprehensive loss
—
—
—
—
(6,405)
(6,405)
BALANCE—December 31, 2021
311,473,950
$
31
$
1,823,344
$
(568,611)
$
(6,414)
$
1,248,350
Exercise of Common Stock options
2,310,931
—
3,190
—
—
3,190
Vesting of restricted Common Stock
157,131
—
—
—
—
—
Vesting of restricted share units
4,153,939
1
—
—
—
1
Repurchase of shares for employee tax
withholdings - RSU
(74,719)
—
(243)
—
—
(243)
Issuance of common stock related to
settlement of contingent consideration
112,202
—
500
—
—
500
Stock‑based compensation expense
—
—
48,001
—
—
48,001
Net loss
—
—
—
(740,343)
—
(740,343)
Other comprehensive loss
—
—
—
—
(31,954)
(31,954)
BALANCE—December 31, 2022
318,133,434
$
32
$
1,874,792
$
(1,308,954)
$
(38,368)
$
527,502
Exercise of Common Stock options
1,006,046
—
1,203
—
—
1,203
Vesting of restricted Common Stock
95,859
—
—
—
—
—
Vesting of restricted share units
5,802,852
1
(1)
—
—
—
Repurchase of shares for employee tax
withholdings - RSU
(211,314)
—
(250)
—
—
(250)
Issuance of common stock related to
settlement of contingent consideration
444,793
—
797
—
—
797
Stock‑based compensation expense
—
—
31,963
—
—
31,963
Net loss
—
—
—
(323,271)
—
(323,271)
Other comprehensive income
—
—
—
—
3,708
3,708
BALANCE—December 31, 2023
325,271,670
$
33
$
1,908,504
$
(1,632,225)
$
(34,660)
$
241,652
See notes to consolidated financial
statements.
DESKTOP METAL, INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(in thousands)
Years Ended December
31,
2023
2022
2021
Cash flows from operating
activities:
Net loss
$
(323,271)
$
(740,343)
$
(240,334)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
53,632
50,767
24,854
Stock‑based compensation
33,177
48,001
28,778
Impairment charges
8,518
—
—
Goodwill impairment
112,911
498,800
—
Inventory write-off
28,966
—
—
Change in fair value of warrant
liability
—
—
56,576
Change in fair value of subscription
agreement
—
—
2,920
Amortization of capitalized
commissions
318
—
—
Amortization (accretion) of discount on
investments
(490)
(888)
3,021
Amortization of debt financing cost
—
—
9
Amortization of deferred costs on
convertible notes
731
453
—
Provision for bad debt
2,215
975
447
Provision for slow-moving, obsolete, and
lower of cost or net realizable value inventories, net
17
(45)
—
Acquired in-process research and
development
—
—
25,581
Loss on disposal of property and
equipment
209
224
74
Net increase (decrease) in accrued
interest related to marketable securities
238
847
(819)
Net unrealized (gain) loss on equity
investment
464
6,332
9,660
Net unrealized (gain) loss on other
investments
-
1,595
(130)
Deferred tax benefit
(3,105)
(1,498)
(29,668)
Change in fair value of contingent
consideration
—
(1,567)
(429)
Foreign currency transaction (gain)
loss
(613)
303
189
Changes in operating assets and
liabilities:
—
Accounts receivable
(1,297)
6,737
(18,299)
Inventory
(19,079)
(28,183)
(16,962)
Prepaid expenses and other current
assets
5,205
1,787
(8,937)
Other assets
4,265
2,505
(3)
Accounts payable
(6,894)
(6,595)
12,797
Accrued expenses and other current
liabilities
1,966
(10,613)
(8,761)
Customer deposits
(6,169)
(2,037)
(2,569)
Current portion of deferred revenue
(1,962)
(4,749)
5,989
Change in right of use assets and lease
liabilities, net
(6,626)
(4,298)
(641)
Other liabilities
1,679
(41)
1,609
Net cash used in operating
activities
(114,995)
(181,531)
(155,048)
Cash flows from investing
activities:
Purchases of property and equipment
(2,762)
(11,517)
(7,683)
Purchase of other investments
—
—
(3,620)
Proceeds from other investments
4,089
3,155
—
Purchase of equity investment
—
—
(20,000)
Proceeds from sale of property and
equipment
9,942
6
44
Proceeds from policy buyout
—
—
333
Purchase of marketable securities
(4,973)
(158,404)
(330,873)
Proceeds from sales and maturities of
marketable securities
112,719
248,150
243,349
Proceeds from capital grant
—
200
—
Cash paid to acquire in-process research
and development
—
—
(21,220)
Cash paid for acquisitions, net of cash
acquired
(1,750)
(23)
(287,624)
Net cash provided by (used in)
investing activities
117,265
81,567
(427,294)
Cash flows from financing
activities:
Proceeds from reverse recapitalization,
net of issuance costs
—
—
—
Proceeds from the exercise of stock
options
1,203
3,190
6,426
Proceeds from the exercise of stock
warrants
—
—
170,665
Payment of taxes related to net share
settlement upon vesting of restricted stock units
(250)
(243)
(541)
Repayment of loans
(419)
(542)
—
Proceeds from issuance of convertible
notes
—
115,000
—
Costs incurred in connection with the
issuance of convertible notes
—
(3,619)
—
Repayment of term loan
—
—
(10,000)
Net cash provided by financing
activities
534
113,786
166,550
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
(27)
(167)
(87)
Net increase (decrease) in cash, cash
equivalents, and restricted cash
2,777
13,655
(415,879)
Cash, cash equivalents, and restricted
cash at beginning of period
81,913
68,258
484,137
Cash, cash equivalents, and restricted
cash at end of period
$
84,690
$
81,913
$
68,258
Supplemental disclosures of cash flow
information
Reconciliation of cash, cash equivalents
and restricted cash reported within the consolidated balance sheets
that sum to the total shown in the consolidated statements of cash
flows:
Cash and cash equivalents
$
83,845
$
76,291
$
65,017
Restricted cash included in other current
assets
233
4,510
2,129
Restricted cash included in other
noncurrent assets
612
1,112
1,112
Total cash, cash equivalents and
restricted cash shown in the consolidated statements of cash
flows
$
84,690
$
81,913
$
68,258
Supplemental cash flow
information:
Interest paid
$
6,900
$
3,488
$
148
Taxes paid
$
—
$
—
$
150
Non‑cash investing and financing
activities:
Net unrealized (gain) loss on
investments
$
(339)
$
290
$
40
Exercise of private placement warrants
$
—
$
—
$
149,904
Common Stock issued for acquisitions
$
—
$
—
$
620,590
Common Stock issued for acquisition of
in-process research and development
$
—
$
—
$
4,300
Common Stock issued for settlement of
contingent consideration
$
797
$
500
$
—
Accrued purchase price related to
acquisitions
$
—
$
—
$
1,800
Additions to right of use assets and lease
liabilities
$
13,926
$
10,812
$
5,582
Purchase of property and equipment
included in accounts payable
$
239
$
516
$
90
Purchase of property and equipment
included in accrued expense
$
31
$
—
$
38
Transfers from property and equipment to
inventory
$
2,214
$
4,993
$
1,068
Transfers from inventory to property and
equipment
$
1,566
$
4,513
$
1,435
Accrued contingent consideration in
connection with acquisitions
$
—
$
—
$
6,083
Taxes related to net share settlement upon
vesting of restricted stock awards in accrued expense
$
—
$
—
$
958
Deferred contract costs
$
—
$
1,341
$
—
Equipment financing
$
—
$
175
$
—
See notes to consolidated financial
statements.
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, non-GAAP operating expense, 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, restructuring, acquisition-related and
integration costs, and inventory step-up adjustments
- We define non-GAAP operating loss as GAAP operating loss
excluding the effect of stock-based compensation, amortization of
acquired intangible assets, restructuring, inventory step-up
adjustments, and acquisition-related and integration costs
- We define non-GAAP net loss as GAAP net loss excluding the
effect of stock-based compensation, amortization of acquired
intangible assets, restructuring, inventory step-up adjustments,
acquisition-related and integration costs, and change in fair value
of investments
- We define non-GAAP operating expense as GAAP operating expense
excluding the effect of stock-based compensation, amortization of
acquired intangible assets, restructuring, and acquisition-related
and integration costs including in operating expenses
- We define EBITDA as GAAP net income (loss) excluding interest,
income taxes, and depreciation and amortization expense
- We define Adjusted EBITDA as EBITDA excluding change in fair
value of investments, inventory step-up adjustments, stock-based
compensation, restructuring, and acquisition-related and
integration costs
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, non-GAAP operating expense,
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,
non-GAAP operating expense, 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, non-GAAP operating expense,
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, non-GAAP operating expense,
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. 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.
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 Year Ended
December 31,
(Dollars in thousands)
2023
2022
2021
GAAP gross margin
$
(10,090)
$
15,071
$
18,293
Stock-based compensation included in cost
of sales(1)
2,262
2,257
1,018
Amortization of acquired intangible assets
included in cost of sales
27,789
23,707
8,467
Restructuring expense in cost of sales
30,205
3,273
—
Acquisition-related and integration costs
included in cost of sales
958
1,148
—
Inventory step-up adjustment in cost of
sales
—
1,496
2,194
Non-GAAP gross margin
$
51,124
$
46,952
$
29,972
GAAP operating loss
$
(323,221)
$
(731,763)
$
(201,455)
Stock-based compensation(2),(3)
33,177
48,785
28,778
Amortization of acquired intangible
assets
41,617
38,662
17,581
Restructuring expense
37,488
6,574
—
Inventory step-up adjustment in cost of
sales
—
1,496
2,194
Acquisition-related and integration
costs(4)
6,179
6,766
23,788
In-process research and development assets
acquired
—
—
25,581
Impairment charges
8,518
—
—
Goodwill impairment
112,911
498,800
—
Non-GAAP operating loss
$
(83,331)
$
(130,680)
$
(103,533)
GAAP net loss
$
(323,271)
$
(740,343)
$
(240,334)
Stock-based compensation(2),(3)
33,177
48,785
28,778
Amortization of acquired intangible
assets
41,617
38,662
17,581
Restructuring expense
37,488
6,957
—
Inventory step-up adjustment in cost of
sales
—
1,496
2,194
Acquisition-related and integration
costs(4)
6,179
6,766
23,788
In-process research and development assets
acquired
—
—
25,581
Impairment charges
8,518
—
—
Goodwill impairment
112,911
498,800
—
Change in fair value of investments
1,239
8,164
12,475
Change in fair value of warrant
liability
—
—
56,576
Non-GAAP net loss
$
(82,142)
$
(130,713)
$
(73,361)
(1) Includes $0.1 million of
liability-award stock-based compensation associated with bonuses
granted in dollar amounts and paid out in RSUs under our bonus plan
(“liability-award stock-based compensation”) for the years ended
December 31, 2023 and 2022.
(2) Includes $7.3 million of stock-based compensation expense
associated with the 2022 Initiative for the year ended December 31,
2022.
(3) Includes $2.0 million and $1.0 million
of liability-award stock-based compensation, respectively, for the
years ended December 31, 2023 and 2022.
(4) For the year ended December 31, 2023,
we incurred $10.0 million in merger expenses related to the
Stratasys transaction and recognized a $10.0 million reduction in
expenses as a result of the reimbursement from Stratasys, with no
net impact to the adjustment for Acquisition-related and
integration costs for the year ended December 31, 2023.
DESKTOP METAL, INC.
NON-GAAP OPERATING EXPENSE
RECONCILIATION TABLE
(in thousands)
For the Year Ended
December 31,
(Dollars in thousands)
2023
2022
2021
GAAP operating expenses
$
313,131
$
746,834
$
219,748
Stock-based compensation included in
operating expenses(1),(2)
(30,915)
(46,528)
(27,760)
Amortization of acquired intangible assets
included in operating expenses
(13,828)
(14,955)
(9,114)
Restructuring expense included in
operating expenses
(7,283)
(3,301)
—
Acquisition-related and integration costs
included in operating expenses(3)
(5,221)
(5,618)
(23,788)
In-process research and development assets
acquired
—
—
(25,581)
Impairment charges
(8,518)
—
—
Goodwill impairment
(112,911)
(498,800)
—
Non-GAAP operating expenses
$
134,455
$
177,632
$
133,505
(1) Includes $7.3 million of stock-based
compensation expense associated with the 2022 Initiative for the
year ended December 31, 2022.
(2) Includes $1.9 million and $0.9 million of liability-award
stock-based compensation, respectively, for the years ended
December 31, 2023 and 2022. (3) For the year ended December 31,
2023, we incurred $10.0 million in merger expenses related to the
Stratasys transaction and recognized a $10.0 million reduction in
expenses as a result of the reimbursement from Stratasys, with no
net impact to the adjustment for Acquisition-related and
integration costs for the year ended December 31, 2023.
DESKTOP METAL, INC.
NON-GAAP ADJUSTED EBITDA
RECONCILIATION TABLE
(in thousands)
For the Years Ended
December 31,
(Dollars in thousands)
2023
2022
2021
Net loss attributable to common
stockholders
$
(323,271)
$
(740,343)
$
(240,334)
Interest (income) expense, net
4,099
1,743
(334)
Income tax expense (benefit)
(3,105)
(1,498)
(29,668)
Depreciation and amortization
53,632
50,767
24,854
In-process research and development assets
acquired
—
—
25,581
EBITDA
(268,645)
(689,331)
(219,901)
Change in fair value of warrant
liability
—
-
56,576
Change in fair value of investments
1,239
8,164
12,475
Inventory step-up adjustment
—
1,496
2,194
Stock-based compensation
expense(1),(2)
33,177
48,785
28,778
Restructuring expense
37,488
6,957
—
Goodwill impairment
112,911
498,800
—
Impairment charges
8,518
Acquisition-related and integration
costs(3)
6,179
6,766
23,788
Adjusted EBITDA
$
(69,133)
$
(118,363)
$
(96,090)
(1) Includes $7.3 million of stock-based
compensation expense associated with the 2022 Initiative for the
year ended December 31, 2022.
(2) Includes $1.0 million of
liability-award stock-based compensation for the year ended
December 31, 2022.
(3) For the year ended December 31, 2023,
we incurred $10.0 million in merger expenses related to the
Stratasys transaction and recognized a $10.0 million reduction in
expenses as a result of the reimbursement from Stratasys, with no
net impact to the adjustment for Acquisition-related and
integration costs for the year ended December 31, 2023.
DESKTOP METAL, INC.
NON-GAAP RECONCILIATION
TABLE
(in thousands)
For the Quarter Ended
December 31,
(Dollars in thousands)
2023
2022
GAAP gross margin
$
(16,739)
$
8,311
Stock-based compensation included in cost
of sales
475
365
Amortization of acquired intangible assets
included in cost of sales
7,045
5,890
Restructuring expense in cost of sales
26,984
147
Acquisition-related and integration costs
included in cost of sales
45
—
Inventory step-up adjustment in cost of
sales
—
—
Non-GAAP gross margin
$
17,810
$
14,713
GAAP operating loss
$
(177,267)
$
(311,895)
Stock-based compensation
6,478
7,615
Amortization of acquired intangible
assets
10,320
10,140
Restructuring expense
30,878
1,488
Inventory step-up adjustment in cost of
sales
—
—
Acquisition-related and integration
costs
2,866
133
In-process research and development assets
acquired
—
—
Impairment charges
2,456
—
Goodwill impairment
110,461
269,300
Non-GAAP operating loss
$
(13,808)
$
(23,219)
GAAP net loss
$
(174,529)
$
(312,353)
Stock-based compensation
6,478
7,615
Amortization of acquired intangible
assets
10,320
10,140
Restructuring expense
30,878
1,488
Inventory step-up adjustment in cost of
sales
—
—
Acquisition-related and integration
costs
2,866
133
In-process research and development assets
acquired
—
—
Impairment charges
2,456
—
Goodwill impairment
110,461
269,300
Change in fair value of investments
178
(329)
Change in fair value of warrant
liability
—
—
Non-GAAP net loss
$
(10,892)
$
(24,006)
DESKTOP METAL, INC.
NON-GAAP ADJUSTED EBITDA
RECONCILIATION TABLE
(in thousands)
For the Quarter Ended
December 31,
(Dollars in thousands)
2023
2022
Net loss attributable to common
stockholders
$
(174,528)
$
(312,353)
Interest (income) expense, net
1,134
462
Income tax expense (benefit)
(2,430)
104
Depreciation and amortization
13,312
12,473
In-process research and development assets
acquired
—
—
EBITDA
(162,512)
(299,314)
Change in fair value of warrant
liability
—
-
Change in fair value of investments
178
(329)
Inventory step-up adjustment
—
—
Stock-based compensation expense
6,478
7,615
Restructuring expense
30,878
1,488
Goodwill impairment
110,461
269,300
Impairment charges
2,456
Acquisition-related and integration
costs
2,866
133
Adjusted EBITDA
$
(9,195)
$
(21,107)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240315314376/en/
Investor Relations: (857) 504-1084
DesktopMetalIR@icrinc.com
Media Relations: Sarah Webster (313) 715-6988
sarahwebster@desktopmetal.com
Desktop Metal (NYSE:DM)
Historical Stock Chart
From Mar 2024 to Apr 2024
Desktop Metal (NYSE:DM)
Historical Stock Chart
From Apr 2023 to Apr 2024