Desktop Metal announces financial results for the first quarter of 2023

Desktop Metal announced financial results for the first quarter of 2023. Revenue was $41.3 million, with a growing number of customers making repeat purchases and using multi-machine fleets of Additive Manufacturing 2.0 systems. The cost reduction plan resulted in a significant year-on-year improvement in adjusted EBITDA and operating cash flow.

The company achieved a total of $100 million in annual savings under its cost-cutting plan, which will allow it to reduce its spending structure, increase margins and achieve profitability. In addition, Desktop Metal confirms its full-year 2023 guidance, projecting revenue of $210-260 million and adjusted EBITDA of between -50 and -25 million dollars. At the same time, the company expects to reach the adjusted EBITDA balance point by the end of 2023.

Among the most important business achievements in the first quarter of 2023 and in the last months, Desktop Metal mentions:

• continuation and extension of the cost reduction plan announced in 2022, resulting in an additional $50 million in annual savings;
• increasing the number of regular customers using three or more AM 2.0 printing systems;
• progress in the development of the Production SystemTM platform, including the expansion of cooperation with various customers in the consumer electronics sector;
• introduction of Live SuiteTM – advanced software with solutions based on artificial intelligence for AM 2.0 technology;
• expanding the offer of technical ceramics on the market of binder jet systems and increasing adoption in the case of silicon carbide applications;
• further expansion of the largest library of production materials on the market.

First quarter 2023 revenue was $41.3 million, down -5.5% compared to first quarter 2022 revenue of $43.7 million. The gross GAAP margin was -3.3%, while the non-GAAP margin was 18.0%, an improvement of 90 basis points compared to the first quarter of 2022.

Net GAAP loss was -$52.6 million, including -$10.4 million amortization of acquired intangible assets. The non-GAAP net loss was -$27.7 million. Adjusted EBITDA was -$24.4 million, an improvement of $17.1 million compared to the first quarter of 2022.

As of March 31, 2023, the company had $149.8 million in cash, cash equivalents and short-term investments. Desktop Metal is determined to continue its efforts to improve cost efficiency and increase profitability, which is confirmed by the results of the first quarter of 2023.

Source: www.desktopmetal.com