Desktop Metal (DM) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 was $36.4M, down 15% year-over-year, with a net loss of $35.4M for the quarter and $191.0M for the nine months ended September 30, 2024.

• Gross margin improved to 9% in Q3 2024 from 5% in Q3 2023, driven by cost savings from restructuring initiatives.

• The company is undergoing a merger with Nano Dimension Ltd., approved by shareholders and pending regulatory approval.

• Substantial doubt exists about the company's ability to continue as a going concern beyond Q1 2025 without additional funding or completion of the merger.

Financial highlights

• Q3 2024 revenue was $36.4M, a 15% decrease from Q3 2023; nine-month revenue was $115.9M, down 16% year-over-year.

• Net loss for Q3 2024 was $35.4M; net loss for the nine months ended September 30, 2024 was $191.0M.

• Gross profit for Q3 2024 was $3.2M, up from $1.9M in Q3 2023; nine-month gross loss was $31.2M.

• Cash and cash equivalents at September 30, 2024 were $30.6M, with net cash used in operating activities of $53.4M for the nine months.

• Adjusted EBITDA for the nine months ended September 30, 2024 was $(40.6)M, compared to $(59.9)M in the prior year period.

Outlook and guidance

• Management expects continued net losses and negative cash flows in the near term and believes current capital resources will support operations into Q1 2025.

• At least $50M in annualized cost savings are anticipated from the 2024 Initiative, with completion expected by year-end 2024.

• If the merger with Nano Dimension is not completed, additional capital will be required, and there is no assurance of availability.