Desktop Metal saw revenue up +85.4% in the third quarter of 2022

Another difficult quarter for Desktop Metal. On the one hand, the company generated revenues of $ 47.1 million in the third quarter of 2022, an increase of +85.4% compared to $ 25.4 million generated a year ago, but on the other hand, it recorded a decrease of -18 , 4% on a quarterly basis to a quarter of a quarter. GAAP net loss was-$ 60.8 million and non-GAAP net loss was-$ 33.1 million. Desktop Metal’s new chief financial officer, Jason Cole, explained that the company fell short of revenue expectations due to “customers delaying their purchases” in an “uncertain macroeconomic environment“. The company’s cash, cash equivalents and short-term investments currently stand at $ 217.3 million, which, with operating losses of tens of millions of dollars per quarter, does not leave it much time to maintain the same rate …

Desktop Metal’s revenues increased in both major divisions in Q3 2022. In the Products division, the company generated + $ 42.9 million, an increase of +79.5% compared to the previous year, while its Services division grew by +173.3%, both of which include income from acquisitions of other companies.

On the other hand, selling expenses also increased by +120.5% in the same period and amounted to $ 47.4 million at the end of the quarter. The company’s CEO Ric Fulop said he “took swift action to improve this rate and reduce the spending structure” resulting in annual cost savings of $ 40 million, but it has become clear that he needs to “step up efforts to cut spending“.

Desktop Metal’s CEO also added that “reducing the cost structure improves the path to profitability,” which is the path it intends to follow by the end of 2023. With this target in mind, Desktop Metal laid off 12% of its workforce earlier this year and is still continuing with layoffs, but while Fulop said it was “ahead of schedule” in achieving these efficiency savings, it also admitted that his company could identify the problem faster.

In light of the order delays encountered at the end of Q3, Desktop Metal lowered its forecast for 2022 from approximately $ 260 million to $ 200-210 million, with Q4 revenues forecasted at $ 51-62 million. This would represent +78-87% year-on-year growth.

However, despite the challenges posed by macroeconomic uncertainty, Fulop was pleased with the company’s performance regarding the growth potential of the 3D printing industry. As he predicts, the entire industrial 3D printing sector could still become worth over $ 100 billion due to the upcoming market rebound, as well as cost savings unlocked by digitization of parts and design freedom in 3D printing.

Source: www.desktopmetal.com