- Revenue of $38.9 million compared to $53.3 million for the same
period a year ago
- Q2 net loss of $(103.4) million, impacted by one-time noncash
charges related to accelerated amortization and depreciation on
certain intangible and fixed assets
- Adjusted EBITDA of $(13.2) million, an improvement from $(15)
million from Q2 2023
- Quarterly GAAP operating expenses increased to $69.1 million
due to accelerated amortization and depreciation from discontinued
operations. Ongoing cost reductions delivered non-GAAP operating
expenses of $27 million, a 22% year-over-year improvement
- Services revenue in support of current and prospective
customers increased 27% to $7.5 million, up from $5.9 million a
year ago.
- Announced definitive merger agreement for a proposed business
combination with Nano Dimension
Desktop Metal, Inc. (NYSE: DM), a global leader in Additive
Manufacturing 2.0 technologies for mass production, today announced
its financial results for the second quarter ended June 30,
2024.
“Since the beginning of 2022, Desktop Metal has worked
tirelessly to align our cost structure with macroeconomic
realities, making hard decisions about the business. By the end of
Q1 we had delivered nine quarters of non-GAAP opex reduction and
brought our cash burn down dramatically. I am proud of the progress
we have shown,” said Ric Fulop, Founder and CEO of Desktop
Metal.
“However, despite these efforts, we've faced an increasingly
challenging business environment as a result of rising rates,
slowing capex budgets and other macro related challenges. We began
to notice a concerning trend towards the end of this quarter with
customers becoming hesitant to engage in closing deals due to our
weakening financial outlook making it more difficult to reach our
targets.
“This feedback from the market was a clear signal that we needed
to take action. The proposed combination with Nano Dimension
represents the best path forward for Desktop Metal and all of our
stakeholders. This merger offers several key benefits that we
expect will strengthen our competitive position and preserve
shareholder value.”
Second Quarter 2024 Recent Business Highlights:
Corporate
- Continued execution of cost reduction plans as we work to align
business structure with current 3D printing market
Product Performance
- Launched and began selling the all-new PureSinter™ Furnace for
high-purity, one-run debinding and sintering of metal parts
produced with either additive manufacturing or traditional
manufacturing methods. The first unit has been sold to AmPd Labs in
Texas, a manufacturing services provider and DM Super Fleet
customer with three Shop Systems being used for metal
production.
- Announced that platinum is now customer-qualified on the DM
Production System binder jet 3D printing platform by Legor, an
Italy-based leader in metals science and production of
best-in-class alloys, powders, and plating solutions for the
jewelry and fashion hardware and accessories markets.
- Showcased more than 24 customer applications and new
breakthroughs in production metal and ceramic 3D Printing at RAPID
+ TCT, including aluminum 6061 components produced with Bega, a
global leader in fine architectural outdoor and indoor lighting,
and Eaton, an intelligent power management company with six DM
printers
- Installed our fourth Figur G-15 Digital Sheet Forming system to
Wisconsin-Based Evology Manufacturing, an ITAR-registered
full-service contract manufacturer with 30+ years of experience
using traditional and additive manufacturing to serve some of the
most innovative product companies in the world
- Desktop Health® announced Flexcera® Smile Ultra+ Dental Resin
is now validated to 3D print strong and lifelike teeth restorations
for use in dental implantology with All-on-X implant
provisionals.
Second Quarter 2024 Financial Highlights
- Revenue of $38.9 million, down from $53.3 million in the same
quarter a year ago.
- GAAP gross margin of (83)%; Non-GAAP gross margin of 29.2%.
GAAP gross margins impacted by one-time noncash charges related to
accelerated amortization and depreciation on certain intangible and
fixed assets
- Q2 2024 net loss of $(103.4) million, impacted by one-time
noncash charges related to accelerated amortization and
depreciation on certain intangible and fixed assets
- Adjusted EBITDA of $(13.2) million, a year-over-year
improvement of 12%
- Cash, cash equivalents, and short-term investments closed first
quarter 2024 at $46.7 million, as rate of operating cash
consumption declined 40% compared to the same year-ago quarter
- Removing financial guidance for the remainder of the year due
to the pending acquisition by Nano Dimension
Conference Call Information:
Desktop Metal will host a conference call on Wednesday, July 31,
2024 at 8:30 am ET to discuss second quarter 2024 results.
Participants may access the call at 1-800-717-1738, international
callers may use 1-646-307-1865, 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, plans and objectives for future
operations and the expected benefits of the proposed transaction
with Nano Dimension, 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 Metal’s
ability to realize the benefits from cost saving measures; supply
and logistics disruptions, including shortages and delays; and
risks related to the completion of the proposed transaction and
actions related thereto. 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 15, 2024, 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.
No Offer or Solicitation
This press release is not intended to and shall not constitute
an offer to buy or sell or the solicitation of an offer to buy or
sell any securities, or a solicitation of any vote or approval, nor
shall there be any sale of securities in any jurisdiction in which
such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
jurisdiction. No offering of securities shall be made, except by
means of a prospectus meeting the requirements of Section 10 of the
U.S. Securities Act of 1933, as amended.
Additional Information about the Transaction and Where to
Find It
In connection with the proposed transaction, Desktop Metal
intends to file a proxy statement with the SEC. Desktop Metal may
also file other relevant documents with the SEC regarding the
proposed transaction. This document is not a substitute for the
proxy statement or any other document that Desktop Metal may file
with the SEC. The definitive proxy statement (if and when
available) will be mailed to stockholders of Desktop Metal.
INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE PROXY
STATEMENT AND ANY OTHER RELEVANT DOCUMENTS THAT MAY BE FILED WITH
THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE
DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY IF AND WHEN THEY BECOME
AVAILABLE BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT
INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and security
holders will be able to obtain free copies of the proxy statement
(if and when available) and other documents containing important
information about Desktop Metal and the proposed transaction, once
such documents are filed with the SEC through the website
maintained by the SEC at http://www.sec.gov. Copies of the
documents filed with the SEC by Desktop Metal will be available
free of charge on Desktop Metal’s website at
https://ir.desktopmetal.com/sec-filings/all-sec-filings.
Participants in the Solicitation
Desktop Metal, Nano and certain of their respective directors
and executive officers may be deemed to be participants in the
solicitation of proxies in respect of the proposed transaction.
Information about the directors and executive officers of Desktop
Metal is set forth in Desktop Metal’s proxy statement for its 2024
Annual Meeting of Stockholders, which was filed with the SEC on
April 23, 2024. Information about the directors and executive
officers of Nano is set forth in Nano’s Annual Report on Form 20-F,
which was filed with the SEC on March 21, 2024. Other information
regarding persons why may be deemed to be participants in the
solicitation of Desktop Metal’s stockholders in connection with the
proposed transaction and any direct or indirect interests they may
have in the proposed transaction will be set forth in Desktop
Metal’s definitive proxy statement for its special meeting of
stockholders when it is filed with the SEC.
DESKTOP METAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands, except share and per share amounts)
June 30,
December 31,
2024
2023
Assets
Current assets:
Cash and cash equivalents
$
45,855
$
83,845
Current portion of restricted cash
215
233
Short‑term investments
177
625
Accounts receivable
29,507
37,690
Inventory
84,005
82,639
Prepaid expenses and other current
assets
10,096
11,105
Total current assets
169,855
216,137
Restricted cash, net of current
portion
612
612
Property and equipment, net
26,351
35,840
Intangible assets, net
80,390
168,259
Other noncurrent assets
29,284
37,153
Total Assets
$
306,492
$
458,001
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
18,089
$
18,190
Customer deposits
4,630
5,356
Current portion of lease liability
7,756
7,404
Accrued expenses and other current
liabilities
24,891
27,085
Current portion of deferred revenue
9,860
11,739
Current portion of long‑term debt, net of
deferred financing costs
225
330
Total current liabilities
65,451
70,104
Long-term debt, net of current portion
29
89
Convertible notes
112,930
112,565
Lease liability, net of current
portion
20,522
23,566
Deferred revenue, net of current
portion
1,842
3,696
Deferred tax liability
3,138
3,523
Other noncurrent liabilities
2,739
2,806
Total liabilities
206,651
216,349
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, 2024 and December 31, 2023,
respectively
—
—
Common Stock, $0.0001 par
value—500,000,000 shares authorized; 33,196,705 and 32,527,742
shares issued at June 30, 2024 and December 31, 2023, respectively,
33,196,705 and 32,527,167 shares outstanding at June 30, 2024 and
December 31, 2023, respectively
4
4
Additional paid‑in capital
1,923,978
1,908,533
Accumulated deficit
(1,787,763
)
(1,632,225
)
Accumulated other comprehensive loss
(36,378
)
(34,660
)
Total Stockholders’ Equity
99,841
241,652
Total Liabilities and Stockholders’
Equity
$
306,492
$
458,001
See notes to condensed consolidated financial
statements
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,
2024
2023
2024
2023
Revenues
Products
$
31,411
$
47,398
$
67,042
$
84,095
Services
7,521
5,888
12,490
10,507
Total revenues
38,932
53,286
79,532
94,602
Cost of sales
Products
67,209
43,224
106,228
82,115
Services
3,912
3,973
7,699
7,762
Total cost of sales
71,121
47,197
113,927
89,877
Gross profit (loss)
(32,189
)
6,089
(34,395
)
4,725
Operating expenses
Research and development
17,143
21,223
36,956
44,367
Sales and marketing
25,802
10,440
36,955
20,047
General and administrative
26,193
22,944
42,410
41,145
Total operating expenses
69,138
54,607
116,321
105,559
Loss from operations
(101,327
)
(48,518
)
(150,716
)
(100,834
)
Interest expense
(1,690
)
(1,109
)
(3,181
)
(1,920
)
Interest and other expense, net
(78
)
(78
)
(1,494
)
(149
)
Loss before income taxes
(103,095
)
(49,705
)
(155,391
)
(102,903
)
Income tax benefit (expense)
(345
)
$
(23
)
$
(147
)
$
534
Net loss
$
(103,440
)
$
(49,728
)
$
(155,538
)
$
(102,369
)
Net loss per share—basic and diluted
(3.13
)
(1.55
)
(4.73
)
(3.20
)
Weighted average shares outstanding, basic
and diluted
33,085,262
32,165,582
32,898,836
32,038,281
See notes to condensed consolidated financial
statements
DESKTOP METAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(UNAUDITED) (in thousands)
Three Months Ended
Six Months Ended
June 30,
June 30,
2024
2023
2024
2023
Net loss
$
(103,440
)
$
(49,728
)
$
(155,538
)
$
(102,369
)
Other comprehensive loss, net of
taxes:
Unrealized gain (loss) on
available-for-sale marketable securities, net
—
148
(451
)
337
Foreign currency translation
adjustment
(500
)
(1,316
)
(1,267
)
233
Total comprehensive loss, net of taxes of
$0
$
(103,940
)
$
(50,896
)
$
(157,256
)
$
(101,799
)
See notes to condensed consolidated financial
statements.
·
DESKTOP METAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(UNAUDITED) (in thousands, except share amounts)
Three Months Ended June 30,
2024
Accumulated
Other
Common Stock
Additional
Comprehensive
Total
Voting
Paid‑in
Accumulated
(Loss)
Stockholders’
Shares
Amount
Capital
Deficit
Income
Equity
BALANCE— April 1, 2024
32,970,519
$
4
$
1,917,535
$
(1,684,323
)
$
(35,878
)
$
197,338
Fractional shares redeemed for cash in
lieu of reverse stock split
(1,338
)
—
(7
)
—
—
(7
)
Vesting of restricted stock units
234,110
—
—
—
—
—
Repurchase of shares for employee tax
withholdings
(6,586
)
—
(47
)
—
—
(47
)
Stock‑based compensation expense
—
—
6,497
—
—
6,497
Net loss
—
—
—
(103,440
)
—
(103,440
)
Other comprehensive loss
—
—
—
—
(500
)
(500
)
BALANCE—June 30, 2024
33,196,705
$
4
$
1,923,978
$
(1,787,763
)
$
(36,378
)
$
99,841
Six Months Ended June 30,
2024
Accumulated
Other
Common Stock
Additional
Comprehensive
Total
Voting
Paid‑in
Accumulated
(Loss)
Stockholders’
Shares
Amount
Capital
Deficit
Income
Equity
BALANCE—January 1, 2024
32,527,167
$
4
$
1,908,533
$
(1,632,225
)
$
(34,660
)
$
241,652
Fractional shares redeemed for cash in
lieu of reverse stock split
(1,338
)
—
(7
)
—
—
(7
)
Vesting of restricted Common Stock
574
—
—
—
—
—
Vesting of restricted stock units
730,477
—
—
—
—
—
Repurchase of shares for employee tax
withholdings
(60,175
)
—
(375
)
—
—
(375
)
Issuance of common stock related to
share-based liability awards
—
—
1,997
—
—
1,997
Stock‑based compensation expense
—
—
13,830
—
—
13,830
Net loss
—
—
—
(155,538
)
—
(155,538
)
Other comprehensive loss
—
—
—
—
(1,718
)
(1,718
)
BALANCE—June 30, 2024
33,196,705
$
4
$
1,923,978
$
(1,787,763
)
$
(36,378
)
$
99,841
Three Months Ended June 30,
2023
Accumulated
Other
Common Stock
Additional
Comprehensive
Total
Voting
Paid‑in
Accumulated
(Loss)
Stockholders’
Shares
Amount
Capital
Deficit
Income
Equity
BALANCE—April 1, 2023
32,040,139
$
3
$
1,883,793
$
(1,361,595
)
$
(36,630
)
$
485,571
Exercise of Common Stock options
47,223
—
560
—
—
560
Vesting of restricted Common Stock
5,021
—
—
—
—
—
Vesting of restricted stock units
126,662
—
—
—
—
—
Repurchase of shares for employee tax
withholdings
(505
)
—
(11
)
—
—
(11
)
Issuance of Common Stock related to
settlement of contingent consideration
44,479
—
797
—
—
797
Stock‑based compensation expense
—
—
8,438
—
—
8,438
Net loss
—
—
—
(49,728
)
—
(49,728
)
Other comprehensive income (loss)
—
—
—
—
(1,168
)
(1,168
)
BALANCE—June 30, 2023
32,263,019
$
3
$
1,893,577
$
(1,411,323
)
$
(37,798
)
$
444,459
Six Months Ended June 30,
2023
Accumulated
Other
Common Stock
Additional
Comprehensive
Total
Voting
Paid‑in
Accumulated
(Loss)
Stockholders’
Shares
Amount
Capital
Deficit
Income
Equity
BALANCE—January 1, 2023
31,813,343
$
3
$
1,874,821
$
(1,308,954
)
$
(38,368
)
$
527,502
Exercise of Common Stock options
96,811
—
1,157
—
—
1,157
Vesting of restricted Common Stock
7,559
—
—
—
—
—
Vesting of restricted stock units
307,504
—
—
—
—
—
Repurchase of shares for employee tax
withholdings
(6,677
)
—
(109
)
—
—
(109
)
Issuance of Common Stock related to
settlement of contingent consideration
44,479
797
797
Stock‑based compensation expense
—
—
16,911
—
—
16,911
Net loss
—
—
—
(102,369
)
—
(102,369
)
Other comprehensive income (loss)
—
—
—
—
570
570
BALANCE—June 30, 2023
32,263,019
$
3
$
1,893,577
$
(1,411,323
)
$
(37,798
)
$
444,459
See notes to condensed consolidated financial
statements.
DESKTOP METAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED) (in thousands)
Six Months Ended June
30,
2024
2023
Cash flows from operating
activities:
Net loss
$
(155,538
)
$
(102,369
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
96,043
26,965
Stock‑based compensation
14,335
19,016
Amortization (accretion) of discount on
investments
—
(484
)
Amortization of deferred costs on
convertible notes
365
365
Provision for bad debt
200
962
Provision for slow-moving, obsolete, and
lower of cost or net realizable value inventories, net
(45
)
—
Loss on disposal of property and
equipment
(92
)
496
Foreign exchange (gains) losses on
intercompany transactions, net
299
—
Net decrease in accrued interest related
to marketable securities
—
238
Net unrealized loss on equity
investment
448
148
Deferred tax benefit
147
(534
)
Foreign currency transaction loss
497
97
Changes in operating assets and
liabilities:
Accounts receivable
7,777
(3,661
)
Inventory
(3,353
)
(8,760
)
Prepaid expenses and other current
assets
910
(675
)
Other assets
8,909
1,595
Accounts payable
(38
)
(407
)
Accrued expenses and other current
liabilities
(282
)
1,097
Customer deposits
(644
)
(2,322
)
Current portion of deferred revenue
(3,611
)
(918
)
Change in right of use assets and lease
liabilities, net
(3,778
)
(3,110
)
Other liabilities
19
1,767
Net cash used in operating
activities
(37,432
)
(70,494
)
Cash flows from investing
activities:
Purchases of property and equipment
(681
)
(1,305
)
Proceeds from sale of property and
equipment
1,694
9,942
Purchase of marketable securities
—
(4,973
)
Proceeds from sales and maturities of
marketable securities
—
107,719
Cash paid for acquisitions, net of cash
acquired
—
(500
)
Net cash provided by investing
activities
1,013
110,883
Cash flows from financing
activities:
Proceeds from the exercise of stock
options
—
1,157
Payment of taxes related to net share
settlement upon vesting of restricted stock units
(376
)
(108
)
Repayment of loans
(158
)
(328
)
Net cash (used in) provided by
financing activities
(534
)
721
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
(1,055
)
73
Net increase (decrease) in cash, cash
equivalents, and restricted cash
(38,008
)
41,183
Cash, cash equivalents, and restricted
cash at beginning of period
84,690
81,913
Cash, cash equivalents, and restricted
cash at end of period
46,682
123,096
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
$
45,855
$
121,660
Restricted cash included in other current
assets
215
824
Restricted cash included in other
noncurrent assets
612
612
Total cash, cash equivalents and
restricted cash shown in the condensed consolidated statements of
cash flows
$
46,682
$
123,096
Supplemental cash flow
information:
Interest paid
$
3,488
$
—
Taxes paid
$
—
$
—
Non‑cash investing and financing
activities:
Net unrealized gain on investments
$
—
$
(337
)
Common Stock issued for settlement of
contingent consideration
797
Additions to right of use assets and lease
liabilities
$
863
$
8,489
Purchase of property and equipment
included in accounts payable
$
129
$
365
Purchase of property and equipment
included in accrued expense
$
—
$
32
Transfers from inventory to PP&E
1,285
—
Transfers from property and equipment to
inventory
$
—
$
841
Transfers from inventory to property and
equipment
$
—
$
1,345
See notes to condensed 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 Three Months
Ended
For the Six Months
Ended
June 30,
June 30,
(Dollars in thousands)
2024
2023
2024
2023
GAAP gross margin
$
(32,189
)
$
6,089
$
(34,395
)
$
4,725
Stock-based compensation included in cost
of sales(1)
475
590
1,043
1,270
Amortization of acquired intangible assets
included in cost of sales(2)
42,681
6,928
57,021
13,855
Restructuring expense in cost of
sales(2)
28
2,488
37,543
3,205
Acquisition-related and integration costs
included in cost of sales
366
434
366
913
Non-GAAP gross margin
$
11,361
$
16,529
$
61,578
$
23,968
GAAP operating loss
$
(101,327
)
$
(48,518
)
$
(150,716
)
$
(100,834
)
Stock-based compensation(2)
6,497
9,703
14,335
19,016
Amortization of acquired intangible
assets
65,931
10,457
86,978
20,899
Restructuring expense(3)
11,211
2,850
14,217
6,469
Acquisition-related and integration
costs
2,050
7,359
3,305
8,765
Non-GAAP operating loss
$
(15,638
)
$
(18,149
)
$
(31,881
)
$
(45,685
)
GAAP net loss
$
(103,440
)
$
(49,728
)
$
(155,538
)
$
(102,369
)
Stock-based compensation(2)
6,497
9,703
14,335
19,016
Amortization of acquired intangible
assets
65,931
10,457
86,978
20,899
Restructuring expense(3)
11,211
2,850
14,217
6,469
Acquisition-related and integration
costs
2,050
7,359
3,305
8,765
Change in fair value of investments
497
107
1,814
286
Non-GAAP net loss
$
(17,254
)
$
(19,252
)
$
(34,889
)
$
(46,934
)
(1) Includes immaterial liability-award stock-based compensation
expense for the three and six months ended June 30, 2024,
respectively. Includes $0.2 million and $0.4 million of
liability-award stock-based compensation expense for the three and
six months ended June 30, 2023, respectively. (2) Includes no
liability-award stock-based compensation expense and $0.5 million
of liability-award stock-based compensation expense for the three
and six months ended June 30, 2024, respectively. Includes $1.3
million and $2.9 million of liability-award stock-based
compensation expense for the three and six months ended June 30,
2023, respectively (3) Includes $3.9 million and $4.3 million of
depreciation classified as restructuring charges for the three and
six months ended June 30, 2024, respectively.
DESKTOP METAL, INC.
NON-GAAP OPERATING EXPENSE RECONCILIATION TABLE (in
thousands)
For the Three Months
Ended
For the Six Months
Ended
June 30,
June 30,
(Dollars in thousands)
2024
2023
2024
2023
GAAP operating expenses
$
69,138
$
54,607
$
116,321
$
105,559
Stock-based compensation included in
operating expenses(1)
(6,022
)
(9,113
)
(13,292
)
(17,746
)
Amortization of acquired intangible assets
included in operating expenses
(23,250
)
(3,529
)
(29,957
)
(7,044
)
Restructuring expense included in
operating expenses
(11,183
)
(362
)
23,326
(3,264
)
Acquisition-related and integration costs
included in operating expenses
(1,684
)
(6,925
)
(2,939
)
(7,852
)
Non-GAAP operating expenses
$
26,999
$
34,678
$
93,459
$
69,653
(1) Includes no liability-award stock-based compensation expense
and $0.5 million of liability-award stock-based compensation
expense for the three and six months ended June 30, 2024,
respectively. Includes $1.1 million and $2.5 million of
liability-award stock-based compensation expense for the three and
six months ended June 30, 2023, respectively.
DESKTOP METAL, INC.
NON-GAAP ADJUSTED EBITDA RECONCILIATION TABLE (in
thousands)
For the Three Months
Ended
For the Six Months
Ended
June 30,
June 30,
(Dollars in thousands)
2024
2023
2024
2023
Net loss attributable to common
stockholders
$
(103,440
)
$
(49,728
)
$
(155,538
)
$
(102,369
)
Interest expense
1,690
1,109
3,181
1,920
Income tax benefit (expense)
345
23
147
(534
)
Depreciation and amortization (2)
71,858
13,530
96,043
26,965
EBITDA
(29,547
)
(35,066
)
(56,167
)
(74,018
)
Change in fair value of investments
497
107
1,814
286
Stock-based compensation expense(1)
6,497
9,703
14,335
19,016
Restructuring expense (2)
7,295
2,850
9,887
6,469
Acquisition-related and integration
costs
2,050
7,359
3,305
8,765
Adjusted EBITDA
$
(13,208
)
$
(15,047
)
$
(26,826
)
$
(39,482
)
(1) Includes no liability-award stock-based compensation expense
and $0.5 million of liability-award stock-based compensation
expense for the three and six months ended June 30, 2024,
respectively. Includes $1.3 million and $2.9 million of
liability-award stock-based compensation expense for the three and
six months ended June 30, 2023, respectively (2) In connection with
the Photopolymer Initiative, we recorded incremental depreciation
and amortization for the shortened useful life of various fixed
assets and intangibles to restructuring charges. For the three and
six months ended June 30, 2024, we recorded incremental
depreciation of $3.9 million and $4.3 million, respectively, and
incremental amortization of $59.9 million and $71.1 million,
respectively. These amounts are listed in the depreciation and
amortization line.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240730009179/en/
Investor Relations: (857) 504-1084 DesktopMetalIR@icrinc.com
Media Relations: Sarah Webster (313) 715-6988
sarahwebster@desktopmetal.com
Desktop Metal (NYSE:DM)
過去 株価チャート
から 7 2024 まで 7 2024
Desktop Metal (NYSE:DM)
過去 株価チャート
から 7 2023 まで 7 2024
