Desktop Metal(US:DM)2022-11-08 16:00Revenue Performance - Total revenue for Q3 2022 was $47.1 million, an increase of $21.7 million or 85% compared to $25.4 million in Q3 2021[273]. - Product revenue accounted for $42.9 million (91% of total revenue) in Q3 2022, up from $23.9 million (94% of total revenue) in Q3 2021, representing a growth of $18.99 million or 79%[271]. - Service revenue increased to $4.1 million (9% of total revenue) in Q3 2022, compared to $1.5 million (6% of total revenue) in Q3 2021, marking a growth of $2.66 million or 179%[271]. - Total revenue for the three months ended September 30, 2022, was $47.1 million, an increase of 85% from $25.4 million in the same period of 2021[276]. - Total revenue for the nine months ended September 30, 2022, was $148.5 million, an increase of 167% from $55.7 million in the same period of 2021[295]. - Product revenue for the nine months ended September 30, 2022, increased by approximately 161%, totaling $135.1 million compared to $51.8 million in 2021[296]. Cost and Expenses - Total cost of sales for the three months ended September 30, 2022, was $47.4 million, reflecting a 120% increase from $21.5 million in the prior year[277]. - Total cost of sales for the nine months ended September 30, 2022, was $141.7 million, a 183% increase from $50.0 million in the prior year[302]. - Research and development expenses increased by 16% to $22.4 million for the three months ended September 30, 2022, compared to $19.3 million in the prior year[283]. - Research and development expenses increased by $32.6 million, or 71%, totaling $78.4 million for the nine months ended September 30, 2022, compared to $45.8 million in 2021[308]. - Sales and marketing expenses rose by $26.7 million, or 90%, reaching $56.3 million for the nine months ended September 30, 2022, compared to $29.6 million in 2021[309]. - General and administrative expenses increased by $15.7 million, or 34%, totaling $62.5 million for the nine months ended September 30, 2022, compared to $46.8 million in 2021[310]. Profitability and Losses - The company incurred net losses of $60.8 million for the three months ended September 30, 2022[253]. - GAAP net loss for the three months ended September 30, 2022, was $60.774 million, compared to a net loss of $66.879 million for the same period in 2021[339]. - The company incurred a net loss of $428.0 million for the nine months ended September 30, 2022, compared to a net loss of $169.2 million for the same period in 2021[340]. - Non-GAAP operating loss for the nine months ended September 30, 2022, was $107.461 million, compared to a loss of $75.343 million for the same period in 2021[332]. - Non-GAAP gross margin for the three months ended September 30, 2022, was $9.387 million, up from $6.811 million in the same period of 2021, representing a 37.5% increase[332]. Cash Flow and Financial Position - Cash used in operating activities was $150.8 million as of September 30, 2022, with cash and cash equivalents totaling $217.3 million[253]. - As of September 30, 2022, the company had $217.3 million in cash, cash equivalents, and short-term investments[341]. - Net cash used in operating activities for the nine months ended September 30, 2022, was $150.8 million, primarily due to $427.2 million in net losses[352]. - The company expects to continue incurring net losses and negative cash flows from operations as it invests in commercialization and new product development[348]. - Future cash requirements will depend on revenue, R&D efforts, and potential acquisitions, with a belief that existing capital resources will support operations for at least the next 12 months[348]. Strategic Initiatives and Acquisitions - The company anticipates $20.0 million in cost savings from a strategic integration and cost optimization initiative in the second half of 2022, with at least $100.0 million in total savings expected by June 2024[257]. - The acquisition of The ExOne Company was completed for a total purchase price of $613.0 million, including $201.4 million in cash and $411.6 million in stock[254]. - The company has invested significant resources in R&D, supported by over 950 patents or pending applications, to enhance its additive manufacturing technologies[247]. - The company operates in over 65 countries, leveraging a global distribution network to market and sell its additive manufacturing solutions[249]. Market Conditions - The ongoing macroeconomic conditions, including inflation and supply chain constraints, are impacting customer purchasing decisions and may extend sales cycles[269]. - The company is exposed to market risks from fluctuations in interest rates and foreign currency translation, which may adversely affect its financial condition[363].