Desktop Metal Announces First Quarter 2023 Financial Results

  • Revenue of $41.3 million, with a growing number of repeat purchases from customers with multi-machine fleets of our Additive Manufacturing 2.0 systems
  • Cost reduction plan delivered significant year-over-year improvements to adjusted EBITDA and operating cash flow in first quarter 2023
  • Combined $100 million in annualized savings from cost reduction plans remain on-track in order to reduce expense structure, expand margins, and drive to profitability
  • Reaffirming full year 2023 guidance of revenue between $210 to $260 million, and adjusted EBITDA between $(50) to $(25) million, with expectation to achieve adjusted EBITDA breakeven before year end 2023

BOSTON--(BUSINESS WIRE)-- Desktop Metal, Inc. (NYSE: DM) today announced its financial results for the first quarter ended March 31, 2023.

“Desktop Metal is off to a solid start to 2023 following very strong growth last year,” said Ric Fulop, Founder and CEO of Desktop Metal. “Customer demand trends for our unique portfolio of AM 2.0 mass production solutions remain resilient, despite an unsteady macro environment, giving us confidence in our growth projections for this year. Additionally, we’ve made significant progress on our cost reduction efforts initiated last year and expanded in February 2023. Going forward, we expect to demonstrate continued reductions in our cost structure in order to expand margins and deliver on our adjusted EBITDA commitments. We believe we can differentiate ourselves as we navigate a difficult economic backdrop relative to our industry peers.”

First Quarter 2023 and Recent Business Highlights:

  • Continued and expanded the cost reduction plan announced in 2022 to add an additional $50 million in annualized savings, as announced in February 2023, after successfully completing $50 million in annualized savings in 2022. Total combined $100 million in annualized cost savings remain on-track in order to reduce expense structure, expand margins, and drive to profitability
  • Expanding customer relationships with a growing number of high adoption Super Fleet customers, or those with three or more AM 2.0 printing systems. We now have more than 370 Super Fleet customers producing a high volume of end-use parts
  • Continued progress on Production SystemTM platforms including expanding relationships with various consumer electronics customers, a segment we believe we can generate eight figures of revenue over next 18 months
  • Launched Live SuiteTM, a highly differentiated end-to-end software hub delivering generative AI solutions for AM 2.0
  • Expanded technical ceramic offerings across our portfolio of binder jet systems, where we're seeing increasing adoption for silicon carbide applications
  • Continued expansion of leading production materials library including Copper Alloy C18150 and Titanium Alloy Ti64 on the Production SystemTM and 304L Stainless Steel on the Shop SystemTM

First Quarter 2023 Financial Highlights:

  • Revenue of $41.3 million, down 5.5% from first quarter 2022 revenue of $43.7 million
  • GAAP gross margin of (3.3)%; non-GAAP gross margin of 18.0%, an improvement of 90 basis points from first quarter 2022
  • GAAP net loss of $52.6 million including $10.4 million amortization of acquired intangibles; non-GAAP net loss of $27.7 million
  • Adjusted EBITDA of $(24.4) million, an improvement of $17.1 million from first quarter 2022
  • Cash, cash equivalents, and short-term investments of $149.8 million as of March 31, 2023

Financial Outlook:

  • Reaffirming revenue expectation of between $210 to $260 million for full year 2023
  • Reaffirming Adjusted EBITDA expectation of between $(50) to $(25) million for full year 2023, with expectation to achieve Adjusted EBITDA breakeven before year end 2023

Desktop Metal has not provided a reconciliation of its Adjusted EBITDA outlook to net income because estimates of all of the reconciling items cannot be provided without unreasonable efforts. See “Non-GAAP Financial Information.”

Conference Call Information:

Desktop Metal will host a conference call on Wednesday, May 10, 2023 to discuss first quarter 2023 results. Participants may access the call at 1-877-407-4018, international callers may use 1-201-689-8471, and request to join the Desktop Metal financial results conference call. A simultaneous webcast of the conference call and the accompanying summary presentation may be accessed online at the Events & Presentations section of ir.desktopmetal.com. A replay will be available shortly after the conclusion of the conference call at the same website.

About Desktop Metal:

Desktop Metal (NYSE:DM) is driving Additive Manufacturing 2.0, a new era of on-demand, digital mass production of industrial, medical, and consumer products. Our innovative 3D printers, materials, and software deliver the speed, cost, and part quality required for this transformation. We’re the original inventors and world leaders of the 3D printing methods we believe will empower this shift, binder jetting and digital light processing. Today, our systems print metal, polymer, sand and other ceramics, as well as foam and recycled wood. Manufacturers use our technology worldwide to save time and money, reduce waste, increase flexibility, and produce designs that solve the world’s toughest problems and enable once-impossible innovations. Learn more about Desktop Metal and our #TeamDM brands at www.desktopmetal.com.

Forward-looking Statements:

This press release contains forward-looking statements within the meaning of the federal securities laws. All statements other than statements of historical facts contained in these communications, including statements regarding Desktop Metal’s future results of operations and financial position, financial targets, business strategy, plans and objectives for future operations, are forward-looking statements. Forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this document, including but not limited to risks associated with the integration of the business and operations of acquired businesses, our ability to realize the benefits from cost saving measures, and supply and logistics disruptions, including shortages and delays. For more information about risks and uncertainties that may impact Desktop Metal’s business, financial condition, results of operations and prospects generally, please refer to Desktop Metal’s reports filed with the SEC, including without limitation the “Risk Factors” and/or other information included in the Form 10-Q filed with the SEC on May 10, 2023, and such other reports as Desktop Metal has filed or may file with the SEC from time to time. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Desktop Metal, Inc. assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

DESKTOP METAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in thousands, except share and per share amounts)

 

 

 

 

 

 

 

 

 

March 31,

 

December 31,

 

 

2023

 

2022

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

101,252

 

$

76,291

Current portion of restricted cash

 

 

4,595

 

 

4,510

Short‑term investments

 

 

48,554

 

 

108,243

Accounts receivable

 

 

35,603

 

 

38,481

Inventory

 

 

98,221

 

 

91,736

Prepaid expenses and other current assets

 

 

21,067

 

 

16,325

Assets held for sale

 

 

6,871

 

 

830

Total current assets

 

 

316,163

 

 

336,416

Restricted cash, net of current portion

 

 

612

 

 

1,112

Property and equipment, net

 

 

45,262

 

 

56,271

Goodwill

 

 

113,571

 

 

112,955

Intangible assets, net

 

 

210,117

 

 

219,830

Other noncurrent assets

 

 

28,461

 

 

27,763

Total Assets

 

$

714,186

 

$

754,347

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

21,988

 

$

25,105

Customer deposits

 

 

12,300

 

 

11,526

Current portion of lease liability

 

 

6,106

 

 

5,730

Accrued expenses and other current liabilities

 

 

28,026

 

 

26,723

Current portion of deferred revenue

 

 

14,639

 

 

13,719

Current portion of long‑term debt, net of deferred financing costs

 

 

403

 

 

584

Total current liabilities

 

 

83,462

 

 

83,387

Long-term debt, net of current portion

 

 

252

 

 

311

Convertible notes

 

 

112,017

 

 

111,834

Lease liability, net of current portion

 

 

17,679

 

 

17,860

Deferred revenue, net of current portion

 

 

3,965

 

 

3,664

Deferred tax liability

 

 

8,074

 

 

8,430

Other noncurrent liabilities

 

 

3,167

 

 

1,359

Total liabilities

 

 

228,616

 

 

226,845

Commitments and Contingencies (Note 17)

 

 

 

 

 

 

Stockholders’ Equity

 

 

 

 

 

 

Preferred Stock, $0.0001 par value—authorized, 50,000,000 shares; no shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively

 

 

 

 

Common Stock, $0.0001 par value—500,000,000 shares authorized; 320,477,686 and 318,235,106 shares issued at March 31, 2023 and December 31, 2022, respectively, 320,401,389 and 318,133,434 shares outstanding at March 31, 2023 and December 31, 2022, respectively

 

 

32

 

 

32

Additional paid‑in capital

 

 

1,883,764

 

 

1,874,792

Accumulated deficit

 

 

(1,361,596)

 

 

(1,308,954)

Accumulated other comprehensive loss

 

 

(36,630)

 

 

(38,368)

Total Stockholders’ Equity

 

 

485,570

 

 

527,502

Total Liabilities and Stockholders’ Equity

 

$

714,186

 

$

754,347

DESKTOP METAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

March 31,

 

 

2023

 

2022

Revenues

 

 

 

 

 

 

Products

 

$

36,697

 

$

39,476

Services

 

 

4,619

 

 

4,230

Total revenues

 

 

41,316

 

 

43,706

Cost of sales

 

 

 

 

 

 

Products

 

 

38,891

 

 

41,902

Services

 

 

3,789

 

 

3,132

Total cost of sales

 

 

42,680

 

 

45,034

Gross profit (loss)

 

 

(1,364)

 

 

(1,328)

Operating expenses

 

 

 

 

 

 

Research and development

 

 

23,144

 

 

24,605

Sales and marketing

 

 

9,607

 

 

19,689

General and administrative

 

 

18,202

 

 

23,857

Total operating expenses

 

 

50,953

 

 

68,151

Loss from operations

 

 

(52,317)

 

 

(69,479)

Interest expense

 

 

(811)

 

 

32

Interest and other (expense) income, net

 

 

(71)

 

 

(1,753)

Loss before income taxes

 

 

(53,199)

 

 

(71,200)

Income tax benefit

 

 

557

 

 

1,256

Net loss

 

$

(52,642)

 

$

(69,944)

Net loss per share—basic and diluted

 

$

(0.16)

 

$

(0.22)

Weighted average shares outstanding, basic and diluted

 

 

319,095,656

 

 

312,016,627

DESKTOP METAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(UNAUDITED)
(in thousands)

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

March 31,

 

 

2023

 

2022

Net loss

 

$

(52,642)

 

$

(69,944)

Other comprehensive (loss) income, net of taxes:

 

 

 

 

 

 

Unrealized gain (loss) on available-for-sale marketable securities, net

 

 

189

 

 

12

Foreign currency translation adjustment

 

 

1,549

 

 

(11,047)

Total comprehensive (loss) income, net of taxes of $0

 

$

(50,904)

 

$

(80,979)

DESKTOP METAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(UNAUDITED)
(in thousands, except share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

Common Stock

 

Additional

 

 

 

 

Comprehensive

 

Total

 

 

Voting

 

Paid‑in

 

Accumulated

 

(Loss)

 

Stockholders’

 

 

Shares

 

Amount

 

Capital

 

Deficit

 

Income

 

Equity

BALANCE—January 1, 2023

 

318,133,434

 

$

32

 

$

1,874,792

 

$

(1,308,954)

 

$

(38,368)

 

$

527,502

Exercise of Common Stock options

 

495,876

 

 

 

 

597

 

 

 

 

 

 

597

Vesting of restricted Common Stock

 

25,375

 

 

 

 

 

 

 

 

 

 

Vesting of restricted stock units

 

1,808,422

 

 

 

 

 

 

 

 

 

 

Repurchase of shares for employee tax withholdings

 

(61,718)

 

 

 

 

(99)

 

 

 

 

 

 

(99)

Stock‑based compensation expense

 

 

 

 

 

8,474

 

 

 

 

 

 

8,474

Net loss

 

 

 

 

 

 

 

(52,642)

 

 

 

 

(52,642)

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

 

1,738

 

 

1,738

BALANCE—March 31, 2023

 

320,401,389

 

$

32

 

$

1,883,764

 

$

(1,361,596)

 

$

(36,630)

 

$

485,570

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

Common Stock

 

Additional

 

 

 

 

Comprehensive

 

Total

 

 

Voting

 

Paid‑in

 

Accumulated

 

(Loss)

 

Stockholders’

 

 

Shares

 

Amount

 

Capital

 

Deficit

 

Income

 

Equity

BALANCE—January 1, 2022

 

311,473,950

 

$

31

 

$

1,823,344

 

$

(568,611)

 

$

(6,414)

 

$

1,248,350

Exercise of Common Stock options

 

786,693

 

 

 

 

900

 

 

 

 

 

 

900

Vesting of restricted Common Stock

 

84,384

 

 

 

 

 

 

 

 

 

 

Vesting of restricted stock units

 

520,265

 

 

 

 

 

 

 

 

 

 

Repurchase of shares for employee tax withholdings

 

(39,720)

 

 

 

 

(158)

 

 

 

 

 

 

(158)

Stock‑based compensation expense

 

 

 

 

 

9,912

 

 

 

 

 

 

9,912

Net loss

 

 

 

 

 

 

 

(69,944)

 

 

 

 

(69,944)

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

 

(11,035)

 

 

(11,035)

BALANCE—March 31, 2022

 

312,825,572

 

$

31

 

$

1,833,998

 

$

(638,555)

 

$

(17,449)

 

$

1,178,025

DESKTOP METAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

2023

 

2022

Cash flows from operating activities:

 

 

 

 

 

 

Net loss

 

$

(52,642)

 

$

(69,944)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

13,433

 

 

12,883

Stock‑based compensation

 

 

9,313

 

 

9,912

Amortization (accretion) of discount on investments

 

 

(382)

 

 

413

Amortization of deferred costs on convertible notes

 

 

183

 

 

Provision for bad debt

 

 

179

 

 

419

Loss on disposal of property and equipment

 

 

519

 

 

2

Net increase (decrease) in accrued interest related to marketable securities

 

 

(8)

 

 

949

Net unrealized (gain) loss on equity investment

 

 

402

 

 

1,700

Deferred tax benefit

 

 

(557)

 

 

(1,256)

Change in fair value of contingent consideration

 

 

 

 

(114)

Foreign currency transaction (gain) loss

 

 

(25)

 

 

195

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

2,792

 

 

9,489

Inventory

 

 

(6,892)

 

 

(15,506)

Prepaid expenses and other current assets

 

 

(4,664)

 

 

(4,087)

Other assets

 

 

991

 

 

(210)

Accounts payable

 

 

(3,011)

 

 

(1,333)

Accrued expenses and other current liabilities

 

 

878

 

 

(3,391)

Customer deposits

 

 

705

 

 

2,980

Current portion of deferred revenue

 

 

1,127

 

 

721

Change in right of use assets and lease liabilities, net

 

 

(1,493)

 

 

(108)

Other liabilities

 

 

1,806

 

 

12

Net cash used in operating activities

 

 

(37,346)

 

 

(56,274)

Cash flows from investing activities:

 

 

 

 

 

 

Purchases of property and equipment

 

 

(1,011)

 

 

(4,074)

Proceeds from sale of property and equipment

 

 

3,071

 

 

6

Purchase of marketable securities

 

 

(4,973)

 

 

Proceeds from sales and maturities of marketable securities

 

 

64,840

 

 

98,625

Cash paid for acquisitions, net of cash acquired

 

 

(500)

 

 

(23)

Net cash provided by investing activities

 

 

61,427

 

 

94,534

Cash flows from financing activities:

 

 

 

 

 

 

Proceeds from the exercise of stock options

 

 

597

 

 

900

Payment of taxes related to net share settlement upon vesting of restricted stock units

 

 

(99)

 

 

(158)

Repayment of loans

 

 

(250)

 

 

(43)

Net cash provided by financing activities

 

 

248

 

 

699

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

 

217

 

 

(349)

Net increase (decrease) in cash, cash equivalents, and restricted cash

 

 

24,546

 

 

38,610

Cash, cash equivalents, and restricted cash at beginning of period

 

 

81,913

 

 

68,258

Cash, cash equivalents, and restricted cash at end of period

 

$

106,459

 

$

106,868

 

 

 

 

 

 

 

Supplemental disclosures of cash flow information

 

 

 

 

 

 

Reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets that sum to the total shown in the condensed consolidated statements of cash flows:

 

 

 

 

 

 

Cash and cash equivalents

 

$

101,252

 

$

103,590

Restricted cash included in other current assets

 

 

4,595

 

 

2,166

Restricted cash included in other noncurrent assets

 

 

612

 

 

1,112

Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows

 

$

106,459

 

$

106,868

 

 

 

 

 

 

 

Supplemental cash flow information:

 

 

 

 

 

 

Interest paid

 

$

 

$

Taxes paid

 

$

 

$

 

 

 

 

 

 

 

Non‑cash investing and financing activities:

 

 

 

 

 

 

Net unrealized (gain) loss on investments

 

$

(189)

 

$

(12)

Additions to right of use assets and lease liabilities

 

$

1,531

 

$

7,784

Purchase of property and equipment included in accounts payable

 

$

183

 

$

313

Purchase of property and equipment included in accrued expense

 

$

32

 

$

Transfers from property and equipment to inventory

 

$

275

 

$

1,721

Transfers from PP&E to Asset Held-For-Sale

 

$

6,040

 

$

Transfers from inventory to property and equipment

 

$

1,067

 

$

605

Non-GAAP Financial Information

This press release contains non-GAAP financial measures, including non-GAAP gross margin, non-GAAP operating loss, non-GAAP net loss, non-GAAP operating expense, EBITDA and Adjusted EBITDA.

  • We define non-GAAP gross margin as GAAP gross margin excluding the effect of stock-based compensation, amortization of acquired intangible assets, restructuring, acquisition-related and integration costs, and inventory step-up adjustments
  • We define non-GAAP operating loss as GAAP operating loss excluding the effect of stock-based compensation, amortization of acquired intangible assets, restructuring, inventory step-up adjustments, and acquisition-related and integration costs
  • We define non-GAAP net loss as GAAP net loss excluding the effect of stock-based compensation, amortization of acquired intangible assets, restructuring, inventory step-up adjustments, acquisition-related and integration costs, and change in fair value of investments
  • We define non-GAAP operating expense as GAAP operating expense excluding the effect of stock-based compensation, amortization of acquired intangible assets, restructuring, and acquisition-related and integration costs including in operating expenses
  • We define EBITDA as GAAP net income (loss) excluding interest, income taxes, and depreciation and amortization expense
  • We define Adjusted EBITDA as EBITDA excluding change in fair value of investments, inventory step-up adjustments, stock-based compensation, restructuring, and acquisition-related and integration costs

In addition to Desktop Metal’s results determined in accordance with GAAP, Desktop Metal’s management uses this non-GAAP financial information to evaluate the Company’s ongoing operations and for internal planning and forecasting purposes. We believe that this non-GAAP financial information, when taken collectively, may be helpful to investors in assessing Desktop Metal’s operating performance.

We believe that the use of Non-GAAP gross margin, non-GAAP operating loss, non-GAAP net loss, non-GAAP operating expense, EBITDA and Adjusted EBITDA provides an additional tool for investors to use in evaluating ongoing operating results and trends because it eliminates the effect of financing, capital expenditures, and non-cash expenses such as stock-based compensation and warrants, and provides investors with a means to compare Desktop Metal’s financial measures with those of comparable companies, which may present similar non-GAAP financial measures to investors. However, investors should be aware that when evaluating non-GAAP gross margin, non-GAAP operating loss, non-GAAP net loss, non-GAAP operating expense, EBITDA and Adjusted EBITDA, we may incur future expenses similar to those excluded when calculating these measures. In addition, our presentation of these measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. Our computation of these measures may not be comparable to other similarly titled measures computed by other companies because not all companies calculate these measures in the same fashion.

Because of these limitations, non-GAAP gross margin, non-GAAP operating loss, non-GAAP net loss, non-GAAP operating expense, EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. We compensate for these limitations by relying primarily on our GAAP results and using non-GAAP gross margin, non-GAAP operating loss, non-GAAP net loss, non-GAAP operating expense, EBITDA and Adjusted EBITDA on a supplemental basis. Management uses, and investors should consider, our non-GAAP financial measures only in conjunction with our GAAP results. Desktop Metal has not provided a reconciliation of its Adjusted EBITDA outlook to net income because estimates of all of the reconciling items cannot be provided without unreasonable efforts.

Set forth below is a reconciliation of each non-GAAP financial measure used in this press release to its most directly comparable GAAP financial measure.

DESKTOP METAL, INC.
NON-GAAP RECONCILIATION TABLE
(in thousands)

 

 

For the Three Months Ended

 

 

March 31,

(Dollars in thousands)

 

2023

 

2022

GAAP gross margin

 

$

(1,364)

 

$

(1,328)

Stock-based compensation included in cost of sales(1)

 

 

680

 

 

487

Amortization of acquired intangible assets included in cost of sales

 

 

6,927

 

 

5,990

Restructuring expense in cost of sales

 

 

717

 

 

Acquisition-related and integration costs included in cost of sales

 

 

479

 

 

1,138

Inventory step-up adjustment in cost of sales

 

 

 

 

1,181

Non-GAAP gross margin

 

$

7,439

 

$

7,468

 

 

 

 

 

 

 

GAAP operating loss

 

$

(52,317)

 

$

(69,479)

Stock-based compensation(2)

 

 

9,313

 

 

9,912

Amortization of acquired intangible assets

 

 

10,442

 

 

9,784

Restructuring expense

 

 

3,618

 

 

Inventory step-up adjustment in cost of sales

 

 

 

 

1,181

Acquisition-related and integration costs

 

 

1,406

 

 

3,986

Non-GAAP operating loss

 

$

(27,538)

 

$

(44,616)

 

 

 

 

 

 

 

GAAP net loss

 

$

(52,642)

 

$

(69,944)

Stock-based compensation(2)

 

 

9,313

 

 

9,912

Amortization of acquired intangible assets

 

 

10,442

 

 

9,784

Restructuring expense

 

 

3,618

 

 

Inventory step-up adjustment in cost of sales

 

 

 

 

1,181

Acquisition-related and integration costs

 

 

1,406

 

 

3,986

Change in fair value of investments

 

 

179

 

 

1,700

Non-GAAP net loss

 

$

(27,684)

 

$

(43,381)

(1)

 

Includes $0.2 million and $0.0 million of liability-award stock-based compensation expense for the three months ended March 31, 2023 and 2022, respectively.

(2)

 

Includes $1.6 million and $0.0 million of liability-award stock-based compensation expense for the three months ended March 31, 2023 and 2022, respectively.

DESKTOP METAL, INC.
NON-GAAP OPERATING EXPENSE RECONCILIATION TABLE
(in thousands)

 

 

For the Three Months Ended

 

 

March 31,

(Dollars in thousands)

 

2023

 

2022

GAAP operating expenses

 

$

50,953

 

$

68,151

Stock-based compensation included in operating expenses(1)

 

 

(8,633)

 

 

(9,425)

Amortization of acquired intangible assets included in operating expenses

 

 

(3,515)

 

 

(3,794)

Restructuring expense included in operating expenses

 

 

(2,901)

 

 

Acquisition-related and integration costs included in operating expenses

 

 

(927)

 

 

(2,848)

Non-GAAP operating expenses

 

$

34,977

 

$

52,084

(1)

 

Includes $1.6 million and $0.0 million of liability-award stock-based compensation expense for the three months ended March 31, 2023 and 2022, respectively.

DESKTOP METAL, INC.
NON-GAAP ADJUSTED EBITDA RECONCILIATION TABLE
(in thousands)

 

 

For the Three Months Ended

 

 

March 31,

(Dollars in thousands)

 

2023

 

2022

Net loss attributable to common stockholders

 

$

(52,642)

 

$

(69,944)

Interest (income) expense, net

 

 

811

 

 

(32)

Income tax expense (benefit)

 

 

(557)

 

 

(1,256)

Depreciation and amortization

 

 

13,433

 

 

12,883

EBITDA

 

 

(38,955)

 

 

(58,349)

Change in fair value of investments

 

 

179

 

 

1,700

Inventory step-up adjustment

 

 

 

 

1,181

Stock-based compensation expense(1)

 

 

9,313

 

 

9,912

Restructuring expense

 

 

3,618

 

 

Acquisition-related and integration costs

 

 

1,406

 

 

3,986

Adjusted EBITDA

 

$

(24,439)

 

$

(41,570)

(1)

 

Includes $1.6 million and $0.0 million of liability-award stock-based compensation for the three months ended March 31, 2023 and 2022, respectively.

 

Investor Relations:
Jay Gentzkow
(781) 730-2110
jaygentzkow@desktopmetal.com

Media Relations:
Sarah Webster
(313) 715-6988
sarahwebster@desktopmetal.com

Source: Desktop Metal, Inc.