- Record fourth quarter revenue of $60.6 million, up 6.8% from
the fourth quarter of 2021
- Record full year 2022 revenue of $209.0 million, up 86.0% from
2021
- Cost reduction initiatives on-track to deliver $100 million in
aggregate, annualized cost savings in 2023, prioritizing path to
profitability
- Initiates full year 2023 revenue guidance of between $210 and
$260 million
Desktop Metal, Inc. (NYSE: DM) today announced financial results
for the fourth quarter and full year ended December 31, 2022.
“Desktop Metal delivered record revenue for fourth quarter and
full year 2022, fueled by our differentiated portfolio of AM 2.0
mass production solutions, our strong market position, and the
team’s solid execution amidst an unsteady macro environment,” said
Ric Fulop, Founder and CEO of Desktop Metal. “We also took actions
to streamline the business and expanded our cost reduction plans to
$100 million in annualized cost savings to prioritize our path to
profitability and position the business for long-term growth. As a
result, we enter 2023 a stronger, more resilient company focused on
driving another year of revenue growth at scale, delivering on our
cost reduction measures, and dramatically improving adjusted EBITDA
and cash flow, in order to capitalize on the next stage of secular
growth in the additive manufacturing market.”
Recent Business Highlights:
- Continued and expanded the cost reduction plan announced in
2022 to add an additional $50 million in annualized savings after
successfully completing $50 million in annualized savings in 2022.
Total combined $100 million in annualized cost savings are on-track
in order to reduce expense structure, drive margin expansion, and
prioritize path to profitability
- Announced strategic collaboration with Align Technology to
accelerate adoption of digital dentistry in the $30 billion annual
dental parts market. Align’s market-leading iTero intraoral
scanners will be offered as a seamless managed service to dentists
in a subscription model with recurring revenue, enabling a gateway
for a connected suite of digital dentistry solutions with a
workflow backed by Desktop Labs’ experienced network of digitized
dental laboratories and premium Desktop Health 3D printers and
materials
- Commenced shipments of Production System™ P-50 in 2022
including continued traction with automotive, industrial, and other
major end markets. Recently signed master supply agreement with one
of the largest consumer electronics companies in the world
- Launched the all-new S-Max Flex® for affordable and scalable
digital sand casting, leveraging Single Pass Jetting™
technology
- Unveiled FreeFoam, a revolutionary, expandable 3D printable
resin designed for volume production of foam parts
- Launched Figur G15, the first commercial platform of its kind
to shape standard sheet metal on demand using patent-pending
Digital Sheet Forming (DSF) technology
- Installations of additive manufacturing systems for metal parts
surpassed 1,100 units including some of largest production
deployments in additive manufacturing
Fourth Quarter 2022 Financial Highlights:
- Revenue of $60.6 million, up 6.8% from the fourth quarter of
2021
- GAAP gross margin of 13.7%; non-GAAP gross margin of 24.3%, a
sequential improvement of 440 basis points from the third quarter
of 2022
- GAAP net loss of $312.4 million, including $269.3 million of
goodwill impairment and $10.1 million of amortization of acquired
intangible assets; non-GAAP net loss of $24.0 million
- Adjusted EBITDA of $(21.1) million
Full Year 2022 Financial Highlights:
- Revenue of $209.0 million, up 86.0% from 2021
- Revenue contribution of 24% from high-margin consumables,
services, and subscription
- GAAP gross margin of 7.2%; non-GAAP gross margin of 22.5%
- GAAP net loss of $740.3 million, including $498.8 million of
goodwill impairment and $38.7 million of amortization of acquired
intangible assets; non-GAAP net loss of $130.7 million
- Adjusted EBITDA of $(118.4) million
- Cash, cash equivalents, and short-term investments of $184.5
million as of December 31, 2022
Outlook for Full Year 2023:
- Revenue expectation of between $210 to $260 million for full
year 2023
- Adjusted EBITDA expectation of between $(50) to $(25) million
for full year 2023, with expectation to achieve Adjusted EBITDA
breakeven before year end 2023
Desktop Metal has not provided a reconciliation of its Adjusted
EBITDA outlook to net income because estimates of all of the
reconciling items cannot be provided without unreasonable efforts.
See “Non-GAAP Financial Information.”
Conference Call Information:
Desktop Metal will host a conference call on Wednesday, March 1,
2023 at 4:30 p.m. ET to discuss fourth quarter and full year 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 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 (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, 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 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-K filed with the SEC on March
1, 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,
2022
2021
Assets
Current assets:
Cash and cash equivalents
$
76,291
$
65,017
Current portion of restricted cash
4,510
2,129
Short‑term investments
108,243
204,569
Accounts receivable
38,481
46,687
Inventory
91,736
65,399
Prepaid expenses and other current
assets
17,155
18,208
Total current assets
336,416
402,009
Restricted cash, net of current
portion
1,112
1,112
Property and equipment, net
56,271
58,710
Goodwill
112,955
639,301
Intangible assets, net
219,830
261,984
Other noncurrent assets
27,763
25,480
Total Assets
$
754,347
$
1,388,596
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
25,105
$
31,558
Customer deposits
11,526
14,137
Current portion of lease liability
5,730
5,527
Accrued expenses and other current
liabilities
26,723
33,829
Current portion of deferred revenue
13,719
18,189
Current portion of long‑term debt, net of
deferred financing costs
584
825
Total current liabilities
83,387
104,065
Long-term debt, net of current portion
311
548
Convertible notes
111,834
—
Contingent consideration, net of current
portion
—
4,183
Lease liability, net of current
portion
17,860
13,077
Deferred revenue, net of current
portion
3,664
4,508
Deferred tax liability
8,430
10,695
Other noncurrent liabilities
1,359
3,170
Total liabilities
226,845
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 December 31, 2022 and December 31, 2021,
respectively
—
—
Common Stock, $0.0001 par
value—500,000,000 shares authorized; 318,235,106 and 311,737,858
shares issued at December 31, 2022 and December 31, 2021,
respectively, 318,133,434 and 311,473,950 shares outstanding at
December 31, 2022 and December 31, 2021, respectively
32
31
Additional paid‑in capital
1,874,792
1,823,344
Accumulated deficit
(1,308,954
)
(568,611
)
Accumulated other comprehensive loss
(38,368
)
(6,414
)
Total Stockholders’ Equity
527,502
1,248,350
Total Liabilities and Stockholders’
Equity
$
754,347
$
1,388,596
DESKTOP METAL, INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(in thousands, except per
share amounts)
Years Ended December
31,
2022
2021
2020
Revenues
Products
$
190,248
$
105,994
$
13,718
Services
18,775
6,414
2,752
Total revenues
209,023
112,408
16,470
Cost of sales
Products
178,952
87,450
26,945
Services
15,000
6,665
4,574
Total cost of sales
193,952
94,115
31,519
Gross profit (loss)
15,071
18,293
(15,049
)
Operating expenses
Research and development
96,878
68,131
43,136
Sales and marketing
68,091
47,995
13,136
General and administrative
83,065
78,041
20,734
In-process research and development assets
acquired
—
25,581
—
Goodwill impairment
498,800
—
—
Total operating expenses
746,834
219,748
77,006
Loss from operations
(731,763
)
(201,455
)
(92,055
)
Change in fair value of warrant
liability
—
(56,576
)
56,417
Interest expense
(1,743
)
(149
)
(328
)
Interest and other (expense) income,
net
(8,335
)
(11,822
)
1,011
Loss before income taxes
(741,841
)
(270,002
)
(34,955
)
Income tax benefit
1,498
29,668
940
Net loss
$
(740,343
)
$
(240,334
)
$
(34,015
)
Net loss per share—basic and diluted
$
(2.35
)
$
(0.92
)
$
(0.22
)
Weighted average shares outstanding, basic
and diluted
314,817
260,770
157,906
DESKTOP METAL, INC.
CONSOLIDATED STATEMENTS OF
COMPREHENSIVE LOSS
(in thousands)
Years Ended December
31,
2022
2021
2020
Net loss
$
(740,343
)
$
(240,334
)
$
(34,015
)
Other comprehensive (loss) income, net of
taxes:
Unrealized gain (loss) on
available-for-sale marketable securities, net
(290
)
(40
)
(84
)
Foreign currency translation
adjustment
(31,664
)
(6,365
)
—
Total comprehensive (loss) income, net of
taxes of $0
$
(772,297
)
$
(246,739
)
$
(34,099
)
DESKTOP METAL, INC.
CONSOLIDATED STATEMENTS OF
STOCKHOLDERS’ EQUITY
(in thousands, except share
amounts)
Accumulated
Other
Additional
Comprehensive
Total
Legacy Convertible Preferred
Stock
Common Stock
Paid‑in
Accumulated
(Loss)
Stockholders’
Shares
Amount
Shares
Amount
Capital
Deficit
Income
Equity
BALANCE—January 1, 2020
100,038,109
$
436,553
26,813,113
$
3
$
16,722
$
(294,262
)
$
75
$
(277,462
)
Retroactive application of
recapitalization (Note 1)
(100,038,109
)
(436,553
)
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
—
—
521,925
—
325
—
—
325
Vesting of restricted Common Stock
—
—
5,307,357
1
6
—
—
7
Issuance of Common Stock in connection
with acquisitions
—
—
61,060
—
500
—
—
500
Repurchase of shares for employee tax
withholdings
—
—
(9,308
)
—
(101
)
—
—
(101
)
Stock‑based compensation expense
—
—
—
—
8,006
—
—
8,006
Common Stock warrants issued and
exercised
—
—
692,366
—
1,915
—
—
1,915
Reverse recapitalization, net of
transaction costs
—
—
63,139,263
6
380,295
—
—
380,301
Net loss
—
—
—
—
—
(34,015
)
—
(34,015
)
Other comprehensive income
—
—
—
—
—
—
(84
)
(84
)
BALANCE—December 31, 2020
—
$
—
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
DESKTOP METAL, INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(in thousands)
Years Ended December
31,
2022
2021
2020
Cash flows from operating
activities:
Net loss
$
(740,343
)
$
(240,334
)
$
(34,015
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
50,767
24,854
8,589
Stock‑based compensation
48,001
28,778
8,006
Goodwill impairment
498,800
—
—
Change in fair value of warrant
liability
—
56,576
(56,417
)
Change in fair value of subscription
agreement
—
2,920
—
Expense related to Common Stock warrants
issued
—
—
1,915
Amortization (accretion) of discount on
investments
(888
)
3,021
75
Amortization of debt financing cost
—
9
19
Amortization of deferred costs on
convertible notes
453
—
—
Provision for bad debt
975
447
377
Provision for slow-moving, obsolete, and
lower of cost or net realizable value inventories, net
(45
)
—
—
Acquired in-process research and
development
—
25,581
—
Loss on disposal of property and
equipment
224
74
18
Foreign exchange (gains) losses on
intercompany transactions, net
259
182
—
Net increase (decrease) in accrued
interest related to marketable securities
847
(819
)
(3
)
Net unrealized (gain) loss on equity
investment
6,332
9,660
—
Net unrealized (gain) loss on other
investments
1,595
(130
)
—
Deferred tax benefit
(1,498
)
(29,668
)
(940
)
Change in fair value of contingent
consideration
(1,567
)
(429
)
—
Foreign currency transaction (gain)
loss
44
7
—
Changes in operating assets and
liabilities:
Accounts receivable
6,737
(18,299
)
(2,370
)
Inventory
(28,183
)
(16,962
)
(1,303
)
Prepaid expenses and other current
assets
1,787
(8,937
)
901
Other assets
2,505
(3
)
—
Accounts payable
(6,595
)
12,797
(2,637
)
Accrued expenses and other current
liabilities
(10,613
)
(8,761
)
(2,391
)
Customer deposits
(2,037
)
(2,569
)
(845
)
Current portion of deferred revenue
(4,749
)
5,989
774
Change in right of use assets and lease
liabilities, net
(4,298
)
(641
)
(328
)
Other liabilities
(41
)
1,609
—
Net cash used in operating
activities
(181,531
)
(155,048
)
(80,575
)
Cash flows from investing
activities:
Purchases of property and equipment
(11,517
)
(7,683
)
(1,429
)
Purchase of other investments
—
(3,620
)
(3,000
)
Proceeds from other investments
3,155
—
—
Purchase of equity investment
—
(20,000
)
—
Proceeds from sale of property and
equipment
6
44
—
Proceeds from policy buyout
—
333
—
Purchase of marketable securities
(158,404
)
(330,873
)
(136,286
)
Proceeds from sales and maturities of
marketable securities
248,150
243,349
109,016
Proceeds from capital grant
200
—
—
Cash paid to acquire in-process research
and development
—
(21,220
)
—
Cash paid for acquisitions, net of cash
acquired
(23
)
(287,624
)
(5,284
)
Net cash provided by (used in)
investing activities
81,567
(427,294
)
(36,983
)
Cash flows from financing
activities:
Proceeds from reverse recapitalization,
net of issuance costs
—
—
534,597
Proceeds from the exercise of stock
options
3,190
6,426
325
Proceeds from the exercise of stock
warrants
—
170,665
—
Payment of taxes related to net share
settlement upon vesting of restricted stock units
(243
)
(541
)
—
Repayment of loans
(542
)
—
—
Proceeds from issuance of convertible
notes
115,000
—
—
Costs incurred in connection with the
issuance of convertible notes
(3,619
)
—
—
Proceeds from PPP loan
—
—
5,379
Repayment of PPP loan
—
—
(5,379
)
Repayment of term loan
—
(10,000
)
—
Net cash provided by financing
activities
113,786
166,550
534,922
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
(167
)
(87
)
—
Net increase (decrease) in cash, cash
equivalents, and restricted cash
13,655
(415,879
)
417,364
Cash, cash equivalents, and restricted
cash at beginning of period
68,258
484,137
66,773
Cash, cash equivalents, and restricted
cash at end of period
$
81,913
$
68,258
$
484,137
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
$
76,291
$
65,017
$
483,525
Restricted cash included in other current
assets
4,510
2,129
—
Restricted cash included in other
noncurrent assets
1,112
1,112
612
Total cash, cash equivalents and
restricted cash shown in the condensed consolidated statements of
cash flows
$
81,913
$
68,258
$
484,137
Supplemental cash flow
information:
Interest paid
$
3,488
$
148
$
322
Taxes paid
$
—
$
150
$
—
Non‑cash investing and financing
activities:
Net liabilities assumed from Trine
Business Combination
$
—
$
—
$
152,395
Accrued reverse recapitalization
transaction costs
$
—
$
—
$
1,901
Net unrealized (gain) loss on
investments
$
290
$
40
$
—
Exercise of private placement warrants
$
—
$
149,904
$
—
Common Stock issued for acquisitions
$
—
$
620,590
$
500
Common Stock issued for acquisition of
in-process research and development
$
—
$
4,300
$
—
Common Stock issued for settlement of
contingent consideration
$
500
$
—
$
—
Accrued purchase price related to
acquisitions
$
—
$
1,800
$
200
Additions to right of use assets and lease
liabilities
$
10,812
$
5,582
$
—
Purchase of property and equipment
included in accounts payable
$
516
$
90
$
—
Purchase of property and equipment
included in accrued expense
$
—
$
38
$
—
Transfers from property and equipment to
inventory
$
4,993
$
1,068
$
—
Transfers from inventory to property and
equipment
$
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
$
—
Tax liabilities related to withholdings on
Common Stock issued in connection with acquisitions
$
—
$
—
$
102
Deferred contract costs
$
1,341
$
—
$
—
Equipment financing
$
175
$
—
$
—
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, acquisition-related and integration costs, 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, inventory step-up adjustments,
acquisition-related and integration costs, in-process research and
development assets acquired, goodwill impairment, change in fair
value of investments, change in fair value of warrant liability,
and warrant expense
- We define non-GAAP operating expense as GAAP operating expense
excluding the effect of stock-based compensation, amortization of
acquired intangible assets, restructuring, acquisition-related and
integration costs, in-process research and development assets
acquired and goodwill impairment including in operating
expenses
- We define EBITDA as GAAP net income (loss) excluding interest,
income taxes, depreciation and amortization expense, and in-process
research and development assets acquired
- We define Adjusted EBITDA as EBITDA excluding change in fair
value of warrant liability, change in fair value of investments,
inventory step-up adjustment stock based compensation,
restructuring, goodwill impairment, acquisition-related and
integration costs, and warrant expense
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)
2022
2021
2020
GAAP gross margin
$
15,071
$
18,293
$
(15,049
)
Stock-based compensation included in cost
of sales(1)
2,257
1,018
290
Amortization of acquired intangible assets
included in cost of sales
23,707
8,467
—
Restructuring expense in cost of sales
3,273
—
—
Acquisition-related and integration costs
included in cost of sales
1,148
—
—
Inventory step-up adjustment in cost of
sales
1,496
2,194
—
Non-GAAP gross margin
$
46,952
$
29,972
$
(14,759
)
GAAP operating loss
$
(731,763
)
$
(201,455
)
$
(92,055
)
Stock-based compensation(2),(3)
48,785
28,778
8,006
Amortization of acquired intangible
assets
38,662
17,581
758
Restructuring expense
6,574
—
—
Inventory step-up adjustment in cost of
sales
1,496
2,194
—
Acquisition-related and integration
costs
6,766
23,788
1,101
In-process research and development assets
acquired
—
25,581
—
Goodwill impairment
498,800
—
—
Non-GAAP operating loss
$
(130,680
)
$
(103,533
)
$
(82,190
)
GAAP net loss
$
(740,343
)
$
(240,334
)
$
(34,015
)
Stock-based compensation(2),(3)
48,785
28,778
8,006
Amortization of acquired intangible
assets
38,662
17,581
758
Restructuring expense
6,957
—
—
Inventory step-up adjustment in cost of
sales
1,496
2,194
—
Acquisition-related and integration
costs
6,766
23,788
1,101
In-process research and development assets
acquired
—
25,581
—
Goodwill impairment
498,800
—
—
Change in fair value of investments
8,164
12,475
—
Change in fair value of warrant
liability
—
56,576
(56,417
)
Warrant expense
—
—
1,915
Non-GAAP net loss
$
(130,713
)
$
(73,361
)
$
(78,652
)
(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 year ended December 31,
2022.
(2)
Includes $7.3 million of stock-based
compensation expense associated with the Initiative for the year
ended December 31, 2022.
(3)
Includes $1.0 million of liability-award
stock-based compensation for the year ended December 31, 2022.
DESKTOP METAL, INC.
NON-GAAP OPERATING EXPENSE
RECONCILIATION TABLE
(in thousands)
For the Year Ended
December 31,
(Dollars in thousands)
2022
2021
2020
GAAP operating expenses
$
746,834
$
219,748
$
77,006
Stock-based compensation included in
operating expenses(1),(2)
(46,528
)
(27,760
)
(7,716
)
Amortization of acquired intangible assets
included in operating expenses
(14,955
)
(9,114
)
(758
)
Restructuring expense included in
operating expenses
(3,301
)
—
—
Acquisition-related and integration costs
included in operating expenses
(5,618
)
(23,788
)
(1,101
)
In-process research and development assets
acquired
—
(25,581
)
—
Goodwill impairment
(498,800
)
—
—
Non-GAAP operating expenses
$
177,632
$
133,505
$
67,431
(1)
Includes $7.3 million of stock-based
compensation expense associated with the Initiative for the year
ended December 31, 2022.
(2)
Includes $0.9 million of liability-award
stock-based compensation for the year ended December 31, 2022.
DESKTOP METAL, INC.
ADJUSTED EBITDA RECONCILIATION
TABLE
(in thousands)
For the Years Ended
December 31,
(Dollars in thousands)
2022
2021
2020
Net loss attributable to common
stockholders
$
(740,343
)
$
(240,334
)
$
(34,015
)
Interest (income) expense, net
1,743
(334
)
(610
)
Income tax expense (benefit)
(1,498
)
(29,668
)
(940
)
Depreciation and amortization
50,767
24,854
8,589
In-process research and development assets
acquired
—
25,581
—
EBITDA
(689,331
)
(219,901
)
(26,976
)
Change in fair value of warrant
liability
—
56,576
(56,417
)
Change in fair value of investments
8,164
12,475
—
Inventory step-up adjustment
1,496
2,194
—
Stock-based compensation
expense(1),(2)
48,785
28,778
8,006
Restructuring expense
6,957
—
—
Goodwill impairment
498,800
—
—
Acquisition-related and integration
costs
6,766
23,788
—
Warrant expense
—
—
1,915
Adjusted EBITDA
$
(118,363
)
$
(96,090
)
$
(73,472
)
(1)
Includes $7.3 million of stock-based
compensation expense associated with the 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230301005883/en/
Investor Relations: Jay Gentzkow
jaygentzkow@desktopmetal.com (781) 730-2110
Media Relations: Sarah Webster
sarahwebster@desktopmetal.com (313) 715-6988
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