- Record revenue of $57.7 million, up 204% from second quarter
2021, and an increase of 32% sequentially from first quarter
2022
- GAAP gross margin of 14.6%; non-GAAP gross margin of 26.7%,
increasing over 170 basis points from second quarter 2021
- Announced Strategic Integration and Cost Optimization
Initiative to accelerate AM 2.0 growth, support path to
profitability, and drive value to shareholders
- Unveiled FreeFoam, a revolutionary, expandable 3D printable
resin designed for volume production of foam parts
- Reaffirming full year 2022 guidance of approximately $260
million for revenue, representing 131% growth from 2021, and
approximately $(90) million for adjusted EBITDA
Desktop Metal, Inc. (NYSE: DM) today announced its financial
results for the second quarter ended June 30, 2022.
“Desktop Metal continued to build on its momentum in the second
quarter, delivering record revenue of $57.7 million and expanding
non-GAAP gross margins to 26.7%,” said Ric Fulop, Founder and CEO
of Desktop Metal. “Our strong financial results represent the
strength and breadth of our unmatched AM 2.0 portfolio as our team
continues to execute at a high level in a dynamic macro
environment.”
Fulop continued, “We enter the second half of the year with a
more streamlined and efficient operating model, combining continued
revenue growth at scale with a disciplined strategy to optimize our
expense structure, in order to achieve our financial commitments
and support our path to profitability.”
Second Quarter 2022 and Recent Business Highlights:
- Announced Strategic Integration and Cost Optimization
Initiative to accelerate AM 2.0 growth, support path to
profitability, and drive value to shareholders including
expectation of approximately $40 million of annualized run rate
non-GAAP cost savings, $20 million of which is expected to take
place in the second half of 2022, and at least $100 million of
aggregate cost savings over the next 24 months
- Unveiled FreeFoam, a revolutionary, expandable 3D printable
resin designed for volume production of foam parts
- Awarded a sub-contract under the Defense Logistics Agency (DLA)
of the Department of Defense prime contract worth a potential $15
million
- Began effort to monetize dominant IP portfolio of over 650
patents and pending applications
Second Quarter 2022 Financial Highlights:
- Revenue of $57.7 million, up 203.9% from second quarter 2021
revenue of $19.0 million, and an increase of 32.0% sequentially
from first quarter 2022
- Revenue growth driven by strength from metals platform and
contributions from acquisitions
- GAAP gross margin of 14.6%; non-GAAP gross margin of 26.7%,
increasing over 170 basis points from second quarter 2021
- Net loss of $297.3 million, primarily due to a non-cash
goodwill impairment charge of $229.5 million as a result of the
Company’s and comparable companies’ stock price declines and
including $2.4 million of restructuring charges in connection with
the Strategic Integration and Cost Optimization Initiative
- Adjusted EBITDA of $(27.5) million
- Cash, cash equivalents, and short-term investments of $255.7
million as of June 30, 2022
- Successfully completed $115 million convertible notes offering
in May 2022, bolstering liquidity in an uncertain macro environment
and providing sufficient runway to reach cash flow breakeven
Outlook for Full Year 2022:
- Reaffirming revenue expectation of approximately $260 million
for 2022, representing 131% growth from 2021
- Reaffirming adjusted EBITDA expectation of approximately $(90)
million for 2022
Conference Call Information:
Desktop Metal will host a conference call on Monday, August 8,
2022 at 4:30 p.m. ET to discuss second quarter 2022 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, 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,
named to MIT Technology Review’s list of 50 Smartest Companies, and
the 2021 winner of Fast Company’s Innovation by Design Award in
materials.
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
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 risks associated with the integration of the business
and operations of acquired businesses, our 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 August
8, 2022, 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.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(UNAUDITED)
(in thousands, except share
and per share amounts)
June 30,
December 31,
2022
2021
Assets
Current assets:
Cash and cash equivalents
$
107,966
$
65,017
Current portion of restricted cash
3,152
2,129
Short‑term investments
147,774
204,569
Accounts receivable
37,291
46,687
Inventory
88,609
65,399
Prepaid expenses and other current
assets
21,086
18,208
Total current assets
405,878
402,009
Restricted cash, net of current
portion
1,112
1,112
Property and equipment, net
57,667
58,710
Goodwill
377,710
639,301
Intangible assets, net
238,069
261,984
Other noncurrent assets
30,713
25,480
Total Assets
$
1,111,149
$
1,388,596
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
29,309
$
31,558
Customer deposits
12,050
14,137
Current portion of lease liability
5,169
5,527
Accrued expenses and other current
liabilities
29,154
33,829
Current portion of deferred revenue
17,746
18,189
Current portion of long‑term debt, net of
deferred financing costs
587
825
Total current liabilities
94,015
104,065
Long-term debt, net of current portion
430
548
Convertible notes
111,420
—
Contingent consideration, net of current
portion
1,160
4,183
Lease liability, net of current
portion
18,040
13,077
Deferred revenue, net of current
portion
4,326
4,508
Deferred tax liability
7,961
10,695
Other noncurrent liabilities
2,657
3,170
Total liabilities
240,009
140,246
Commitments and Contingencies (Note
17)
Stockholders’ Equity
Preferred Stock, $0.0001 par
value—authorized, 50,000,000 shares; no shares issued and
outstanding at June 30, 2022 and December 31, 2021,
respectively
—
—
Common Stock, $0.0001 par
value—500,000,000 shares authorized; 315,292,925 and 311,737,858
shares issued at June 30, 2022 and December 31, 2021, respectively,
315,147,677 and 311,473,950 shares outstanding at June 30, 2022 and
December 31, 2021, respectively
32
31
Additional paid‑in capital
1,851,836
1,823,344
Accumulated deficit
(935,827
)
(568,611
)
Accumulated other comprehensive loss
(44,901
)
(6,414
)
Total Stockholders’ Equity
871,140
1,248,350
Total Liabilities and Stockholders’
Equity
$
1,111,149
$
1,388,596
DESKTOP METAL, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per
share amounts)
Three Months Ended
Six Months Ended
June 30,
June 30,
2022
2021
2022
2021
Revenues
Products
$
52,672
$
17,560
$
92,148
$
27,871
Services
5,002
1,417
9,232
2,419
Total revenues
57,674
18,977
101,380
30,290
Cost of sales
Products
44,913
15,490
86,815
25,977
Services
4,364
1,115
7,496
2,528
Total cost of sales
49,277
16,605
94,311
28,505
Gross profit
8,397
2,372
7,069
1,785
Operating expenses
Research and development
31,370
15,651
55,975
26,509
Sales and marketing
20,406
10,894
40,070
16,343
General and administrative
19,691
13,142
43,573
26,988
In-process research and development assets
acquired
—
10,400
—
10,400
Goodwill impairment
229,500
—
229,500
—
Total operating expenses
300,967
50,087
369,118
80,240
Loss from operations
(292,570
)
(47,715
)
(362,049
)
(78,455
)
Change in fair value of warrant
liability
—
—
—
(56,576
)
Interest expense
(633
)
(51
)
(601
)
(125
)
Interest and other (expense) income,
net
(5,013
)
268
(6,766
)
630
Loss before income taxes
(298,216
)
(47,498
)
(369,416
)
(134,526
)
Income tax benefit
944
4,318
2,200
32,238
Net loss
$
(297,272
)
$
(43,180
)
$
(367,216
)
$
(102,288
)
Net loss per share—basic and diluted
$
(0.95
)
$
(0.17
)
$
(1.17
)
$
(0.41
)
Weighted average shares outstanding, basic
and diluted
313,556,886
255,097,905
312,798,328
246,717,400
DESKTOP METAL, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF COMPREHENSIVE LOSS
(UNAUDITED)
(in thousands)
Three Months Ended
Six Months Ended
June 30,
June 30,
2022
2021
2022
2021
Net loss
$
(297,272
)
$
(43,180
)
$
(367,216
)
$
(102,288
)
Other comprehensive (loss) income, net of
taxes:
Unrealized gain (loss) on
available-for-sale marketable securities, net
(41
)
(5
)
(29
)
(4
)
Foreign currency translation
adjustment
(27,411
)
130
(38,458
)
117
Total comprehensive (loss) income, net of
taxes of $0
$
(324,724
)
$
(43,055
)
$
(405,703
)
$
(102,175
)
DESKTOP METAL, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF STOCKHOLDERS’ EQUITY
(UNAUDITED)
(in thousands, except share
amounts)
Three Months Ended June 30,
2022
Accumulated
Other
Common Stock
Additional
Comprehensive
Total
Voting
Paid‑in
Accumulated
(Loss)
Stockholders’
Shares
Amount
Capital
Deficit
Income
Equity
BALANCE—April 1, 2022
312,825,572
$
31
$
1,833,998
$
(638,555
)
$
(17,449
)
$
1,178,025
Exercise of Common Stock options
234,307
—
364
—
—
364
Vesting of restricted Common Stock
29,171
—
—
—
—
—
Vesting of restricted stock units
1,962,846
1
—
—
—
1
Net settlement of shares for employee tax
withholdings upon vesting of restricted stock units
(16,421
)
—
(31
)
—
—
(31
)
Issuance of Common Stock related to
settlement of contingent consideration
112,202
—
500
—
—
500
Stock‑based compensation expense
—
—
17,005
—
—
17,005
Net loss
—
—
—
(297,272
)
—
(297,272
)
Other comprehensive income (loss)
—
—
—
—
(27,452
)
(27,452
)
BALANCE—June 30, 2022
315,147,677
$
32
$
1,851,836
$
(935,827
)
$
(44,901
)
$
871,140
Six Months Ended June 30,
2022
Accumulated
Other
Common Stock
Additional
Comprehensive
Total
Voting
Paid‑in
Accumulated
(Loss)
Stockholders’
Shares
Amount
Capital
Deficit
Income
Equity
BALANCE—January 1, 2022
311,473,950
$
31
$
1,823,344
$
(568,611
)
$
(6,414
)
$
1,248,350
Exercise of Common Stock options
1,021,000
—
1,264
—
—
1,264
Vesting of restricted Common Stock
113,555
—
—
—
—
—
Vesting of restricted stock units
2,483,111
1
—
—
—
1
Repurchase of shares for employee tax
withholdings
(56,141
)
—
(189
)
—
—
(189
)
Issuance of Common Stock related to
settlement of contingent consideration
112,202
—
500
—
—
500
Stock‑based compensation expense
—
—
26,917
—
—
26,917
Net loss
—
—
—
(367,216
)
—
(367,216
)
Other comprehensive income (loss)
—
—
—
—
(38,487
)
(38,487
)
BALANCE—June 30, 2022
315,147,677
$
32
$
1,851,836
$
(935,827
)
$
(44,901
)
$
871,140
Three Months Ended June 30,
2021
Accumulated
Other
Common Stock
Additional
Comprehensive
Total
Voting
Paid‑in
Accumulated
(Loss)
Stockholders’
Shares
Amount
Capital
Deficit
Income
Equity
BALANCE—April 1, 2021
252,436,919
$
25
$
1,326,945
$
(387,385
)
$
(21
)
$
939,564
Exercise of Common Stock options
2,683,506
—
3,485
—
—
3,485
Vesting of restricted Common Stock
56,015
—
—
—
—
—
Vesting of restricted stock units
28,656
—
—
—
—
—
Repurchase of shares for employee tax
withholdings
(6,931
)
—
(91
)
—
—
(91
)
Issuance of Common Stock for
acquisitions
4,013,196
1
49,141
—
—
49,142
Issuance of common stock for acquired
in-process research and development
334,370
—
4,300
—
—
4,300
Stock‑based compensation expense
—
—
3,999
—
—
3,999
Net loss
—
—
—
(43,180
)
—
(43,180
)
Other comprehensive income (loss)
—
—
—
—
125
125
BALANCE—June 30, 2021
259,545,731
$
26
$
1,387,779
$
(430,565
)
$
104
$
957,344
Six Months Ended June 30,
2021
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
2,846,734
—
3,665
—
—
3,665
Vesting of restricted Common Stock
112,030
—
—
—
—
—
Vesting of restricted stock units
43,921
—
—
—
—
—
Repurchase of shares for employee tax
withholdings
(9,172
)
—
(145
)
—
—
(145
)
Issuance of Common Stock for
acquisitions
9,049,338
1
208,988
—
—
208,989
Issuance of common stock for acquired
in-process research and development
334,370
—
4,300
—
—
4,300
Stock‑based compensation expense
—
—
6,216
—
—
6,216
Vesting of Trine Founder shares
1,850,938
—
—
—
—
—
Exercise of warrants
20,690,975
2
320,567
—
—
320,569
Net loss
—
—
—
(102,288
)
—
(102,288
)
Other comprehensive income (loss)
—
—
—
—
113
113
BALANCE—June 30, 2021
259,545,731
$
26
$
1,387,779
$
(430,565
)
$
104
$
957,344
DESKTOP METAL, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
Six Months Ended June
30,
2022
2021
Cash flows from operating
activities:
Net loss
$
(367,216
)
$
(102,288
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
25,602
9,524
Stock‑based compensation
26,917
6,216
Goodwill impairment
229,500
—
Change in fair value of warrant
liability
—
56,576
Change in fair value of subscription
agreement
—
474
Amortization (accretion) of discount on
investments
390
1,304
Amortization of debt financing cost
—
9
Amortization of deferred costs on
convertible notes
39
—
Provision for bad debt
554
164
Acquired in-process research and
development
—
10,400
Loss (gain) on disposal of property and
equipment
156
(7
)
Foreign exchange (gains) losses on
intercompany transactions, net
443
—
Net increase (decrease) in accrued
interest related to marketable securities
917
(1,062
)
Net unrealized (gain) loss on equity
investment
5,080
—
Net unrealized (gain) loss on other
investments
800
(517
)
Deferred tax benefit
(2,188
)
(32,535
)
Change in fair value of contingent
consideration
4
—
Foreign currency transaction (gain)
loss
(13
)
—
Changes in operating assets and
liabilities:
Accounts receivable
8,250
(3,584
)
Inventory
(25,384
)
(6,635
)
Prepaid expenses and other current
assets
(2,994
)
(3,732
)
Other assets
1,117
(170
)
Accounts payable
(2,767
)
(155
)
Accrued expenses and other current
liabilities
(7,337
)
(5,119
)
Customer deposits
(1,412
)
(1,372
)
Current portion of deferred revenue
(70
)
693
Change in right of use assets and lease
liabilities, net
(1,467
)
(92
)
Other liabilities
30
—
Net cash used in operating
activities
(111,049
)
(71,908
)
Cash flows from investing
activities:
Purchases of property and equipment
(6,747
)
(1,355
)
Purchase of other investments
—
(3,620
)
Proceeds from sale of property and
equipment
6
—
Purchase of marketable securities
(126,771
)
(281,438
)
Proceeds from sales and maturities of
marketable securities
177,150
66,741
Cash paid to acquire in-process research
and development
—
(6,050
)
Cash paid for acquisitions, net of cash
acquired
(23
)
(161,837
)
Net cash provided by (used in)
investing activities
43,615
(387,559
)
Cash flows from financing
activities:
Proceeds from the exercise of stock
options
1,266
3,665
Proceeds from the exercise of stock
warrants
—
170,665
Payment of taxes related to net share
settlement upon vesting of restricted stock units
(191
)
(145
)
Repayment of loans
(231
)
—
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
112,225
164,185
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
(819
)
20
Net increase (decrease) in cash, cash
equivalents, and restricted cash
43,972
(295,262
)
Cash, cash equivalents, and restricted
cash at beginning of period
68,258
484,137
Cash, cash equivalents, and restricted
cash at end of period
$
112,230
$
188,875
Supplemental disclosures of cash flow
information
Reconciliation of cash, cash equivalents
and restricted cash reported within the condensed consolidated
balance sheets that sum to the total shown in the condensed
consolidated statements of cash flows:
Cash and cash equivalents
$
107,966
188,199
Restricted cash included in other current
assets
3,152
—
Restricted cash included in other
noncurrent assets
1,112
676
Total cash, cash equivalents and
restricted cash shown in the condensed consolidated statements of
cash flows
$
112,230
$
188,875
Supplemental cash flow
information:
Interest paid
$
—
$
125
Taxes paid
$
—
$
150
Non‑cash investing and financing
activities:
Net unrealized (gain) loss on
investments
$
29
$
4
Exercise of private placement warrants
$
—
$
149,904
Common Stock issued for acquisitions
$
—
$
208,989
Common Stock issued for acquisition of
in-process research and development
$
—
$
4,300
Common Stock issued for settlement of
contingent consideration
$
500
$
—
Cash held back in acquisitions
$
—
$
50
Additions to right of use assets and lease
liabilities
$
7,784
$
852
Purchase of property and equipment
included in accounts payable
$
1,022
$
—
Purchase of property and equipment
included in accrued expense
$
—
$
33
Contingent consideration in connection
with acquisitions
$
—
$
6
Transfers from property and equipment to
inventory
$
1,954
$
—
Transfers from inventory to property and
equipment
$
1,531
$
—
Deferred contract costs
$
1,341
$
—
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 expenses, acquisition-related and
other transactional charges, 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 expenses,
acquisition-related and other transactional charges, inventory
step-up adjustments, in-process research and development assets
acquired and goodwill impairment
- We define non-GAAP net loss as GAAP net loss excluding the
effect of stock-based compensation, amortization of acquired
intangible assets, restructuring expense, inventory step-up
adjustments, acquisition-related and other transactional charges,
in-process research and development assets acquired, goodwill
impairment, change in fair value of investments and change in fair
value of warrant liability
- We define non-GAAP operating expense as GAAP operating expense
excluding the effect of stock-based compensation, amortization of
acquired intangible assets, restructuring expense,
acquisition-related and other transactional charges, in-process
research and development assets acquired and goodwill
impairment
- 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, restructuring expense, change in fair value of
warrant liability, change in fair value of investments, inventory
step-up adjustments, goodwill impairment, and acquisition-related
and other transactional charges
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
For the Three Months
Ended
For the Six Months
Ended
June 30,
June 30,
(Dollars in thousands)
2022
2021
2022
2021
GAAP gross margin
$
8,397
$
2,372
$
7,069
$
1,785
Stock-based compensation included
in cost of sales(1)
671
128
1,158
245
Amortization of acquired
intangible assets included in cost of sales
5,950
2,235
11,940
3,326
Restructuring expense in cost of
sales
41
—
41
—
Acquisition-related and other
transactional charges included in cost of sales
10
—
1,148
—
Inventory step-up adjustment in
cost of sales
315
—
1,496
—
Non-GAAP gross margin
$
15,384
$
4,735
$
22,852
$
5,356
GAAP operating loss
$
(292,570
)
$
(47,715
)
$
(362,049
)
$
(78,455
)
Stock-based compensation
(2),(3)
19,218
3,999
29,130
6,216
Amortization of acquired
intangible assets
9,669
4,268
19,453
6,568
Restructuring expense
2,001
—
2,001
—
Inventory step-up adjustment in
cost of sales
315
—
1,496
—
Acquisition-related and other
transactional charges
1,171
3,127
5,157
8,313
In-process research and
development assets acquired
—
10,400
—
10,198
Goodwill impairment
229,500
—
229,500
—
Non-GAAP operating
loss
$
(30,696
)
$
(25,921
)
$
(75,312
)
$
(47,160
)
GAAP net loss
$
(297,272
)
$
(43,180
)
$
(367,216
)
$
(102,288
)
Stock-based compensation
(2),(3)
19,218
3,999
29,130
6,216
Amortization of acquired
intangible assets
9,669
4,268
19,453
6,568
Restructuring expense
2,384
—
2,384
—
Inventory step-up adjustment in
cost of sales
315
—
1,496
—
Acquisition-related and other
transactional charges
1,171
3,127
5,157
8,313
In-process research and
development assets acquired
—
10,400
—
10,198
Goodwill impairment
229,500
—
229,500
—
Change in fair value of
investments
4,741
(18
)
6,441
(18
)
Change in fair value of warrant
liability
—
—
—
56,576
Non-GAAP net loss
$
(30,274
)
$
(21,404
)
$
(73,655
)
$
(14,435
)
(1) Includes $0.1 million of
liability-award stock-based compensation expense in 2022.
(2) Includes $7.3 million of stock-based
compensation expense associated with the restructuring initiative
in 2022.
(3) Includes $2.2 million of
liability-award stock-based compensation expense in 2022.
DESKTOP METAL, INC.
NON-GAAP OPERATING EXPENSE
RECONCILIATION TABLE
For the Three Months
Ended
For the Six Months
Ended
June 30,
June 30,
(Dollars in thousands)
2022
2021
2022
2021
GAAP operating expenses
$
300,967
$
50,087
$
369,118
$
80,240
Stock-based compensation included
in operating expenses(1),(2)
(18,547
)
(3,871
)
(27,972
)
(5,971
)
Amortization of acquired
intangible assets included in operating expenses
(3,719
)
(2,033
)
(7,513
)
(3,241
)
Restructuring expense included in
operating expenses
(1,960
)
—
(1,960
)
—
Acquisition-related and other
transactional charges included in operating expenses
(1,161
)
(3,127
)
(4,009
)
(8,111
)
In-process research and
development assets acquired
—
(10,400
)
—
(10,400
)
Goodwill impairment
(229,500
)
—
(229,500
)
—
Non-GAAP operating
expenses
$
46,080
$
30,656
$
98,164
$
52,517
(1) Includes $7.3 million of stock-based
compensation expense associated with the restructuring initiative
in 2022.
(2) Includes $2.1 million of
liability-award stock-based compensation expense in 2022.
DESKTOP METAL, INC.
ADJUSTED EBITDA RECONCILIATION
TABLE
For the Three Months
Ended
For the Six Months
Ended
June 30,
June 30,
(Dollars in thousands)
2022
2021
2022
2021
Net loss attributable to common
stockholders
$
(297,272
)
$
(43,180
)
$
(367,216
)
$
(102,288
)
Interest (income) expense,
net
633
(140
)
601
(182
)
Income tax benefit
(944
)
(4,317
)
(2,200
)
(32,238
)
Depreciation and amortization
12,719
5,679
25,602
9,571
In-process research and
development assets acquired
—
10,198
—
10,198
EBITDA
(284,864
)
(31,760
)
(343,213
)
(114,939
)
Change in fair value of warrant
liability
—
—
—
56,576
Change in fair value of
investments
4,741
(18
)
6,441
(18
)
Inventory step-up adjustment
315
—
1,496
—
Stock-based compensation
expense(1),(2)
19,218
3,999
29,130
6,216
Restructuring expense
2,384
—
2,384
—
Goodwill impairment
229,500
—
229,500
—
Acquisition-related and other
transactional charges
1,171
3,329
5,157
8,313
Adjusted EBITDA
$
(27,535
)
$
(24,450
)
$
(69,105
)
$
(43,852
)
(1) Includes $7.3 million of stock-based
compensation expense associated with the restructuring initiative
in 2022.
(2) Includes $2.2 million of
liability-award stock-based compensation expense in 2022.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220808005648/en/
Investor Relations: Jay Gentzkow (781) 730-2110
jaygentzkow@desktopmetal.com
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