Desktop Metal(DM) - 2024 Q1 - Quarterly Results

Q1 2024 Financial Results Desktop Metal's Q1 2024 results show operational improvements and cost reductions, with a reaffirmed full-year financial outlook Business and Financial Highlights Desktop Metal reported a slight revenue decrease but significant Adjusted EBITDA improvement in Q1 2024, driven by cost reductions Q1 2024 Financial Performance | Financial Metric | Q1 2024 | Q1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $40.6 million | $41.3 million | -1.7% | | Net Loss | $(52.1) million | $(52.6) million | N/A | | Adjusted EBITDA | $(13.6) million | $(24.4) million | +44.3% Improvement | | Non-GAAP Gross Margin | 30.5% | N/A | +69.9% Improvement | - Cost Reduction: The company continues cost reduction plans, aiming for positive adjusted EBITDA in H2 2024, with Non-GAAP operating expenses down 45% over nine consecutive quarters[4][5] - Portfolio Optimization: Management is exploring strategic alternatives for its photopolymer portfolio to accelerate profitability[5] - Cash Management: The rate of cash consumption declined by 47% compared to the first quarter of the previous year[9] - Desktop Health: Launched the ScanUp™ digital dentistry subscription program and Flexcera™ Base Ultra+ dental resin for stronger 3D printed dentures[9] - Evonik Partnership: Expanded partnership with Evonik to qualify INFINAM® ST 6100 L on large format Additive Manufacturing 2.0 systems[9] Financial Outlook Desktop Metal reaffirmed its full-year 2024 guidance, projecting revenues between $175 million and $215 million and an Adjusted EBITDA loss of $10 million to $30 million Full Year 2024 Guidance | Metric | Full Year 2024 Guidance | | :--- | :--- | | Revenue | $175 million to $215 million | | Adjusted EBITDA | $(30) million to $(10) million | Consolidated Financial Statements The consolidated financial statements detail the company's financial position and performance for Q1 2024, showing decreased assets, stable net loss, and improved cash flow from operations Condensed Consolidated Balance Sheets Total assets decreased to $412.0 million, with cash and equivalents declining, while liabilities remained stable and equity decreased Balance Sheet Items (in thousands) | Balance Sheet Item | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $65,559 | $83,845 | | Total current assets | $197,323 | $216,137 | | Total Assets | $412,030 | $458,001 | | Total current liabilities | $69,787 | $70,104 | | Total Liabilities | $214,692 | $216,349 | | Total Stockholders' Equity | $197,338 | $241,652 | Condensed Consolidated Statements of Operations For the three months ended March 31, 2024, total revenues were $40.6 million, a slight decrease, resulting in a gross loss of $(2.2) million and a net loss of $(52.1) million Income Statement Items (in thousands) | Income Statement Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total revenues | $40,600 | $41,316 | | Gross loss | $(2,206) | $(1,364) | | Loss from operations | $(49,389) | $(52,317) | | Net loss | $(52,098) | $(52,642) | | Net loss per share | $(0.16) | $(0.16) | Condensed Consolidated Statements of Cash Flows Net cash used in operating activities significantly improved, decreasing to $(17.4) million in Q1 2024, with the ending cash balance at $66.4 million Cash Flow Items (in thousands) | Cash Flow Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(17,409) | $(37,346) | | Net cash (used in) provided by investing activities | $(93) | $61,427 | | Net cash (used in) provided by financing activities | $(407) | $248 | | Ending Cash, Cash Equivalents, and Restricted Cash | $66,387 | $106,459 | Non-GAAP Financial Measures Non-GAAP measures show significant operational improvements in Q1 2024, with Adjusted EBITDA improving and Non-GAAP gross margin increasing Reconciliation to Adjusted EBITDA (in thousands) | Reconciliation to Adjusted EBITDA | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net loss | $(52,098) | $(52,642) | | Adjustments (Depreciation, Amortization, Stock Comp, etc.) | $38,480 | $28,203 | | Adjusted EBITDA | $(13,618) | $(24,439) | Reconciliation to Non-GAAP Gross Margin (in thousands) | Reconciliation to Non-GAAP Gross Margin | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | GAAP gross margin | $(2,206) | $(1,364) | | Stock-based compensation | $568 | $680 | | Amortization of acquired intangible assets | $14,340 | $6,927 | | Other adjustments | $(309) | $1,196 | | Non-GAAP gross margin | $12,393 | $7,439 | Reconciliation to Non-GAAP Operating Expenses (in thousands) | Reconciliation to Non-GAAP Operating Expenses | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | GAAP operating expenses | $47,183 | $50,953 | | Adjustments (Stock Comp, Amortization, etc.) | $(18,548) | $(15,976) | | Non-GAAP operating expenses | $28,635 | $34,977 |