- Revenue growth of 286% from the first quarter of 2021 to $43.7
million
- Commenced shipments of Production System P-50
- Installed initial Production System P-1 in China at a
hyperscale account with technical and commercial developments
across multiple sizable opportunities
- Launched the all-new S-Max Flex for affordable and scalable
digital sand casting
- 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 quarter ended March 31, 2022.
“Following a revolutionary year in which we made significant
progress building a foundation of AM 2.0 technologies to achieve
our goal of double-digit share of the additive market by the end of
the decade, we are off to a great start to 2022,” said Ric Fulop,
Founder and CEO of Desktop Metal. “We delivered strong topline
growth of 286% year-over-year as we continue to capture market
share and rapidly grow revenue at scale. With several exciting
product launches to kick off the year, and demand as strong as ever
for our broad portfolio of AM 2.0 solutions, we are well-positioned
for outsized growth and margin expansion through the balance of
2022.”
First Quarter 2022 and Recent Business Highlights:
- Commenced shipments of Production System™ P-50
- Installed initial Production System™ P-1 in China at a
hyperscale account with technical and commercial developments
across multiple sizable opportunities
- Launched the all-new S-Max Flex® for affordable and scalable
digital sand casting, integrating Desktop Metal Single Pass
Jetting™ technology with ExOne sand binder jetting process and
materials expertise
- Awarded a major sub-contract through the Defense Logistics
Agency (DLA) of the Department of Defense
- Significant uptick in demand to support onshoring projects and
help customers respond to supply chain disruption
- Launched Einstein™ series of high-precision 3D printers
designed for volume production of dental and healthcare parts
- Launched Flexcera™ Smile Ultra+, a hybrid nanoceramic resin for
permanent restorations and one of the strongest dental resins in
the market
First Quarter 2022 Financial Highlights:
- Revenue of $43.7 million, up 286% from first quarter 2021
revenue of $11.3 million, including broad-based growth and
contributions from acquisitions
- GAAP gross margin of (3.0)%; non-GAAP gross margin of 17.1%,
increasing more than 1,150 basis points from 5.5% in first quarter
2021
- Net loss of $69.9 million, including $9.8 million in
amortization of acquired intangible assets
- Adjusted EBITDA of $(41.6) million
- Cash, cash equivalents, and short-term investments of $206.5
million as of March 31, 2022
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 Tuesday, May 10,
2022 at 8:00 a.m. EST to discuss first quarter 2022 results.
Participants may access the call at 1-855-560-2573, international
callers may use 1-412-317-5237, 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, 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 May 10,
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)
March 31,
December 31,
2022
2021
Assets
Current assets:
Cash and cash equivalents
$
103,590
$
65,017
Current portion of restricted cash
2,166
2,129
Short‑term investments
102,895
204,569
Accounts receivable
36,661
46,687
Inventory
81,876
65,399
Prepaid expenses and other current
assets
22,446
18,208
Total current assets
349,634
402,009
Restricted cash, net of current
portion
1,112
1,112
Property and equipment, net
58,082
58,710
Goodwill
630,022
639,301
Intangible assets, net
251,000
261,984
Other noncurrent assets
32,143
25,480
Total Assets
$
1,321,993
$
1,388,596
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
30,431
$
31,558
Customer deposits
16,911
14,137
Current portion of lease liability
5,326
5,527
Accrued expenses and other current
liabilities
31,615
33,829
Current portion of deferred revenue
19,261
18,189
Current portion of long‑term debt, net of
deferred financing costs
731
825
Total current liabilities
104,275
104,065
Long-term debt, net of current portion
523
548
Warrant liability
—
—
Contingent consideration, net of current
portion
2,596
4,183
Lease liability, net of current
portion
19,856
13,077
Deferred revenue, net of current
portion
4,047
4,508
Deferred tax liability
9,506
10,695
Other noncurrent liabilities
3,165
3,170
Total liabilities
143,968
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 March 31, 2022 and December 31, 2021,
respectively
—
—
Common Stock, $0.0001 par
value—500,000,000 shares authorized; 312,999,991 and 311,737,858
shares issued at March 31, 2022 and December 31, 2021,
respectively, 312,825,572 and 311,473,950 shares outstanding at
March 31, 2022 and December 31, 2021, respectively
31
31
Additional paid‑in capital
1,833,998
1,823,344
Accumulated deficit
(638,555)
(568,611)
Accumulated other comprehensive loss
(17,449)
(6,414)
Total Stockholders’ Equity
1,178,025
1,248,350
Total Liabilities and Stockholders’
Equity
$
1,321,993
$
1,388,596
DESKTOP METAL, INC. CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (UNAUDITED) (in thousands, except per
share amounts)
Three Months Ended
March 31,
2022
2021
Revenues
Products
$
39,476
$
10,311
Services
4,230
1,002
Total revenues
43,706
11,313
Cost of sales
Products
41,902
10,487
Services
3,132
1,413
Total cost of sales
45,034
11,900
Gross profit/(loss)
(1,328)
(587)
Operating expenses
Research and development
24,605
10,858
Sales and marketing
19,689
5,449
General and administrative
23,857
13,846
Total operating expenses
68,151
30,153
Loss from operations
(69,479)
(30,740)
Change in fair value of warrant
liability
—
(56,576)
Interest expense
32
(73)
Interest and other (expense) income,
net
(1,753)
361
Loss before income taxes
(71,200)
(87,028)
Income tax benefit
1,256
27,920
Net loss
$
(69,944)
$
(59,108)
Net loss per share—basic and diluted
$
(0.22)
$
(0.25)
Weighted average shares outstanding, basic
and diluted
312,016,627
238,243,779
DESKTOP METAL, INC. CONDENSED CONSOLIDATED
STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) (in thousands)
Three Months Ended
March 31,
2022
2021
Net loss
$
(69,944)
$
(59,108)
Other comprehensive (loss) income, net of
taxes:
Unrealized gain (loss) on
available-for-sale marketable securities, net
12
1
Foreign currency translation
adjustment
(11,047)
(13)
Total comprehensive (loss) income, net of
taxes of $0
$
(80,979)
$
(59,120)
DESKTOP METAL, INC. CONDENSED CONSOLIDATED
STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED) (in thousands,
except share amounts)
Three Months Ended March 31,
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
786,693
—
900
—
—
900
Vesting of restricted Common Stock
84,384
—
—
—
—
—
Vesting of restricted stock units
520,265
—
—
—
—
—
Repurchase of shares for employee tax
withholdings
(39,720)
—
(158)
—
—
(158)
Issuance of Common Stock for
acquisitions
—
—
—
—
—
—
Stock‑based compensation expense
—
—
9,912
—
—
9,912
Vesting of Trine Founder shares
—
—
—
—
—
—
Exercise of warrants
—
—
—
—
—
—
Net loss
—
—
—
(69,944)
—
(69,944)
Other comprehensive income (loss)
—
—
—
—
(11,035)
(11,035)
BALANCE—March 31, 2022
312,825,572
$
31
$
1,833,998
$
(638,555)
$
(17,449)
$
1,178,025
Three Months Ended March 31,
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
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
DESKTOP METAL, INC. CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands)
Three Months Ended March
31,
2022
2021
Cash flows from operating
activities:
Net loss
$
(69,944)
$
(59,108)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
12,883
3,892
Stock‑based compensation
9,912
2,217
Change in fair value of warrant
liability
—
56,576
Amortization (accretion) of discount on
investments
413
406
Amortization of debt financing cost
—
4
Provision for bad debt
419
72
Loss on disposal of property and
equipment
2
—
Foreign exchange (gains) losses on
intercompany transactions, net
185
—
Net increase (decrease) in accrued
interest related to marketable securities
949
(240)
Net unrealized (gain) loss on marketable
securities
—
(25)
Net unrealized (gain) loss on equity
investment
1,700
—
Deferred tax benefit
(1,256)
(27,921)
Change in fair value of contingent
consideration
(114)
—
Foreign currency transaction (gain)
loss
10
—
Changes in operating assets and
liabilities:
Accounts receivable
9,489
(61)
Inventory
(15,506)
(2,381)
Prepaid expenses and other current
assets
(4,087)
(4,276)
Other assets
(210)
(30)
Accounts payable
(1,333)
(3,856)
Accrued expenses and other current
liabilities
(3,391)
(5,247)
Customer deposits
2,980
(1,234)
Current portion of deferred revenue
721
105
Change in right of use assets and lease
liabilities, net
(108)
(22)
Other liabilities
12
—
Net cash used in operating
activities
(56,274)
(41,129)
Cash flows from investing
activities:
Purchases of property and equipment
(4,074)
(262)
Proceeds from sale of property and
equipment
6
—
Purchase of marketable securities
—
(92,386)
Proceeds from sales and maturities of
marketable securities
98,625
48,241
Cash paid for acquisitions, net of cash
acquired
(23)
(137,646)
Net cash provided by (used in)
investing activities
94,534
(182,053)
Cash flows from financing
activities:
Proceeds from reverse recapitalization,
net of issuance costs
—
(1,239)
Proceeds from the exercise of stock
options
900
180
Proceeds from the exercise of stock
warrants
—
158,308
Payment of taxes related to net share
settlement upon vesting of restricted stock units
(158)
(54)
Repayment of term loan
(43)
—
Net cash provided by financing
activities
699
157,195
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
(349)
26
Net increase (decrease) in cash, cash
equivalents, and restricted cash
38,610
(65,961)
Cash, cash equivalents, and restricted
cash at beginning of period
68,258
484,137
Cash, cash equivalents, and restricted
cash at end of period
$
106,868
$
418,176
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
$
103,590
416,379
Restricted cash included in other current
assets
2,166
1,021
Restricted cash included in other
noncurrent assets
1,112
776
Total cash, cash equivalents and
restricted cash shown in the condensed consolidated statements of
cash flows
$
106,868
$
418,176
Supplemental cash flow
information:
Interest paid
$
—
$
73
Non‑cash investing and financing
activities:
Net unrealized (gain) loss on
investments
$
(12)
$
(1)
Exercise of private placement warrants
$
—
$
149,904
Common Stock issued for acquisitions
$
—
$
159,847
Additions to right of use assets and lease
liabilities
$
7,784
$
364
Purchase of property and equipment
included in accounts payable
$
313
$
50
Transfers from property and equipment to
inventory
$
1,721
$
—
Transfers from inventory to property and
equipment
$
605
$
—
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, 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, 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, acquisition-related and other
transactional charges and inventory step-up adjustments
- 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, inventory step-up adjustments, 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 and acquisition-related and other
transactional charges
- 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, inventory step-up adjustments, change in fair value
of warrant liability, change in fair value of investments 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, 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
For the Three Months
Ended
March 31,
(Dollars in thousands)
2022
2021
GAAP gross margin
$
(1,328)
$
(587)
Stock-based compensation included in cost
of sales
487
117
Amortization of acquired intangible assets
included in cost of sales
5,990
1,091
Acquisition-related and other
transactional charges included in cost of sales
1,138
—
Inventory step-up adjustment in cost of
sales
1,181
—
Non-GAAP gross margin
$
7,468
$
621
GAAP operating loss
$
(69,479)
$
(30,740)
Stock-based compensation
9,912
2,217
Amortization of acquired intangible
assets
9,784
2,299
Inventory step-up adjustment in cost of
sales
1,181
—
Acquisition-related and other
transactional charges
3,986
4,984
Non-GAAP operating loss
$
(44,616)
$
(21,240)
GAAP net loss
$
(69,944)
$
(59,108)
Stock-based compensation
9,912
2,217
Amortization of acquired intangible
assets
9,784
2,299
Inventory step-up adjustment in cost of
sales
1,181
—
Acquisition-related and other
transactional charges
3,986
4,984
Change in fair value of investments
1,700
—
Change in fair value of warrant
liability
—
56,576
Non-GAAP net loss
$
(43,381)
$
6,968
DESKTOP METAL, INC. NON-GAAP OPERATING
EXPENSE RECONCILIATION TABLE
For the Three Months
Ended
March 31,
(Dollars in thousands)
2022
2021
GAAP operating expenses
$
68,151
$
30,153
Stock-based compensation included in
operating expenses
(9,425)
(2,100)
Amortization of acquired intangible assets
included in operating expenses
(3,794)
(1,208)
Acquisition-related and other
transactional charges included in operating expenses
(2,848)
(4,984)
Non-GAAP operating expenses
$
52,084
$
21,861
DESKTOP METAL, INC. ADJUSTED EBITDA
RECONCILIATION TABLE
For the Three Months
Ended
March 31,
(Dollars in thousands)
2022
2021
Net loss attributable to common
stockholders
$
(69,944)
$
(59,108)
Interest (income) expense, net
(32)
(42)
Income tax benefit
(1,256)
(27,920)
Depreciation and amortization
12,883
3,892
EBITDA
(58,349)
(83,178)
Change in fair value of warrant
liability
—
56,576
Change in fair value of investments
1,700
—
Inventory step-up adjustment
1,181
—
Stock compensation expense
9,912
2,217
Acquisition-related and other
transactional charges
3,986
4,984
Adjusted EBITDA
$
(41,570)
$
(19,401)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220510005292/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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