Exhibit 99.1

Graphic

Desktop Metal Announces Third Quarter 2023 Financial Results

November 9, 2023

Completed $100 million in cost reductions announced in June 2022 ahead of schedule
Revenue of $42.8 million compared to $47.1 million in the same quarter a year ago
GAAP gross margin of 4.5%; non-GAAP gross margin increased 190 basis points to 21.9%
Year-over-year improvements to non-GAAP gross margins, operating expenses, adjusted EBITDA, and operating cash flow in third quarter 2023 – with improvements expected to continue through year end
Cash, cash equivalents, and short-term investments closed third quarter 2023 at $108.2 million, a reduction of $19.4 million from the close of second quarter 2023 and the lowest period-over-period cash reduction since Q2 2022
Revising full year 2023 guidance to revenue of between $187 to $207 million, and adjusted EBITDA between $(70) to $(50) million, with expectation to achieve adjusted EBITDA breakeven in Q4 2023

BOSTON – Desktop Metal, Inc. (NYSE: DM), a global leader in Additive Manufacturing 2.0 technologies for mass production, today announced its financial results for the third quarter ended September 30, 2023.

“Revenue in the third quarter was disappointing for Desktop Metal and also for the entire additive manufacturing industry. However, while we are dissatisfied with our top-line performance, I am incredibly proud of the progress that Team DM has made in executing our $100 million of annualized cost reductions announced in June 2022,” said Ric Fulop, Founder and CEO of Desktop Metal. “Desktop Metal continues to take aggressive steps to ensure we have sufficient capital to navigate this challenging period. There are several strong, positive currents running through our results today, which adds to our confidence in the future of Desktop Metal as a profitable, high-growth leader in additive manufacturing.

“The entire Desktop Metal team is driving to profitability on the cash we have.”

Importantly, Fulop noted that recurring revenue in the first three quarters increased 34% to $49.2 million compared to the same three-quarter period a year ago. "Despite softer revenue in the third quarter, our recurring revenue streams continue to perform well, contributing to a positive shift in adjusted EBITDA and a path towards reaching breakeven in the fourth quarter of 2023.," Fulop noted.


Third Quarter 2023 and Recent Business Highlights:

Corporate

Continued execution of cost reduction plans with year-over-year improvements to non-GAAP gross margins, operating expenses, adjusted EBITDA, and operating cash flow in third quarter 2023
Desktop Metal agreement with Stratasys has been terminated; company remains focused on path to profitability – with improvements in non-GAAP gross margins, operating expenses, adjusted EBITDA, and operating cash flow expected to continue through year end

Product Performance

Pennsylvania-based FreeFORM Technologies placed orders for a DM Production System P-50 and a full fleet of metal binder jet systems, targeting metal part production in industrial, defense, medical, robotic, and consumer goods markets
Wisconsin-based DSB Technologies has adopted the complete X-Series metal binder jetting product lineup, including DM Live Sinter software
Launched the ETEC Pro XL, a cost-competitive premium DLP polymer printer that delivers extreme accuracy, resolution, and surface finish in a large build area with high throughput speeds
Launched Live Monitor™, a software application that provides useful real-time data from printing systems to improve efficiency and management of a single printing system or a full fleet
Desktop Health launched the PrintRoll™ rotating build platform for the 3D-Bioplotter®, a first-of-its-kind bioprinting tool to develop and manufacture tubular solutions for vascular, digestive, respiratory, and other channels of the body
Signed a commercial supply agreement for Flexcera™ dental resins to be offered on Carbon 3D hardware, demonstrating progress with monetizing the Company’s DLP intellectual property portfolio

Third Quarter 2023 Financial Highlights:

Revenue of $42.8 million, compared to $47.1 million in the third quarter of 2022 driven by lower product sales, a focus on sales of products with higher margins, and partially offset by increased services sales
GAAP gross margin of 4.5%; non-GAAP gross margin of 21.9%, an improvement of 190 basis points from third quarter 2022
GAAP net loss of $46.4 million, including $10.4 million amortization of acquired intangibles; non-GAAP net loss of $24.3 million
Adjusted EBITDA of $(20.5) million, an improvement of $7.7 million from third quarter 2022
Cash, cash equivalents, and short-term investments of $108.2 million as of September 30, 2023, down $19.4 million from the close of second quarter 2023


Financial Outlook: 

Revising Revenue expectation to between $187 to $207 million for full year 2023
Revising Adjusted EBITDA expectation of between $(70) to $(50) 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 Thursday, November 9, 2023 to discuss third 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, and 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; Desktop Metals’ ability to realize the benefits from cost saving measures; 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 August 3, 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.

Investor Relations:
(857) 504-1084
DesktopMetalIR@icrinc.com

Media Relations:

Sarah Webster

(313) 715-6988

sarahwebster@desktopmetal.com


DESKTOP METAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(in thousands, except share and per share amounts)

    

September 30, 

    

December 31, 

2023

    

2022

Assets

Current assets:

 

  

 

  

Cash and cash equivalents

$

107,432

$

76,291

Current portion of restricted cash

841

4,510

Short-term investments

 

803

 

108,243

Accounts receivable

 

40,088

 

38,481

Inventory

 

107,196

 

91,736

Prepaid expenses and other current assets

 

24,987

 

16,325

Assets held for sale

830

Total current assets

 

281,347

 

336,416

Restricted cash, net of current portion

 

612

 

1,112

Property and equipment, net

 

38,387

 

56,271

Goodwill

 

108,651

 

112,955

Intangible assets, net

 

178,802

 

219,830

Other noncurrent assets

36,465

27,763

Total Assets

$

644,264

$

754,347

Liabilities and Stockholders’ Equity

 

  

 

  

Current liabilities:

 

  

 

  

Accounts payable

$

32,114

$

25,105

Customer deposits

 

6,918

 

11,526

Current portion of lease liability

 

6,644

 

5,730

Accrued expenses and other current liabilities

 

27,899

 

26,723

Current portion of deferred revenue

 

17,015

 

13,719

Current portion of long-term debt

 

368

 

584

Total current liabilities

 

90,958

 

83,387

Long-term debt, net of current portion

120

311

Convertible notes

112,382

111,834

Lease liability, net of current portion

 

23,680

 

17,860

Deferred revenue, net of current portion

3,780

3,664

Deferred tax liability

4,693

8,430

Other noncurrent liabilities

3,077

1,359

Total liabilities

238,690

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 September 30, 2023 and December 31, 2022, respectively

Common Stock, $0.0001 par value—500,000,000 shares authorized; 323,658,575 and 318,235,106 shares issued at September 30, 2023 and December 31, 2022, respectively, 323,642,480 and 318,133,434 shares outstanding at September 30, 2023 and December 31, 2022, respectively

 

32

 

32

Additional paid-in capital

 

1,901,931

 

1,874,792

Accumulated deficit

 

(1,457,696)

 

(1,308,954)

Accumulated other comprehensive loss

 

(38,693)

 

(38,368)

Total Stockholders’ Equity

 

405,574

 

527,502

Total Liabilities and Stockholders’ Equity

$

644,264

$

754,347

See notes to condensed consolidated financial statements


DESKTOP METAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

(in thousands, except per share amounts)

    

Three Months Ended

Nine Months Ended

September 30, 

September 30, 

    

2023

    

2022

    

2023

    

2022

Revenues

 

  

 

  

Products

$

37,502

$

42,937

$

121,597

$

135,085

Services

5,248

4,149

 

15,755

 

13,381

Total revenues

42,750

 

47,086

 

137,352

 

148,466

Cost of sales

  

 

  

 

  

Products

37,175

43,639

 

119,290

 

130,454

Services

3,651

3,756

 

11,413

 

11,252

Total cost of sales

40,826

 

47,395

 

130,703

 

141,706

Gross profit (loss)

1,924

 

(309)

 

6,649

 

6,760

Operating expenses

  

 

  

 

  

Research and development

20,455

22,382

 

64,822

 

78,357

Sales and marketing

8,549

16,204

 

28,596

 

56,299

General and administrative

9,528

18,924

 

50,673

 

62,472

Impairment charges

6,062

6,062

Goodwill impairment

2,450

2,450

229,500

Total operating expenses

47,044

 

57,510

 

152,603

 

426,628

Loss from operations

(45,120)

 

(57,819)

 

(145,954)

 

(419,868)

Interest expense

(1,045)

(680)

 

(2,965)

(1,281)

Interest and other expense, net

(349)

(1,677)

 

(498)

(8,443)

Loss before income taxes

(46,514)

 

(60,176)

 

(149,417)

 

(429,592)

Income tax benefit (expense)

141

(598)

 

675

 

1,602

Net loss

$

(46,373)

$

(60,774)

$

(148,742)

$

(427,990)

Net loss per share—basic and diluted

$

(0.14)

$

(0.19)

$

(0.46)

$

(1.36)

Weighted average shares outstanding, basic and diluted

323,187,608

316,007,716

321,328,016

313,901,704

See notes to condensed consolidated financial statements.


DESKTOP METAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(UNAUDITED)

(in thousands)

    

Three Months Ended

Nine Months Ended

September 30, 

September 30, 

    

2023

    

2022

    

2023

    

2022

Net loss

$

(46,373)

$

(60,774)

$

(148,742)

$

(427,990)

Other comprehensive loss, net of taxes:

 

 

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

(211)

(389)

 

126

 

(418)

Foreign currency translation adjustment

(684)

(15,866)

(451)

(54,324)

Total comprehensive loss, net of taxes of $0

$

(47,268)

$

(77,029)

$

(149,067)

$

(482,732)

See notes to condensed consolidated financial statements.


DESKTOP METAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(UNAUDITED)

(in thousands, except share amounts)

Three Months Ended September 30, 2023

Accumulated

Other

Common Stock

Additional

Comprehensive

Total

Voting

Paid-in

Accumulated

(Loss)

Stockholders’

    

Shares

    

Amount

Capital

    

Deficit

    

Income

    

Equity

BALANCE—July 1, 2023

322,630,201

$

32

$

1,893,548

$

(1,411,323)

$

(37,798)

$

444,459

Exercise of Common Stock options

37,935

 

 

46

 

 

 

46

Vesting of restricted Common Stock

 

9,779

 

 

 

 

 

Vesting of restricted stock units

986,925

Repurchase of shares for employee tax withholdings

(22,360)

(39)

(39)

Stock-based compensation expense

 

 

 

8,376

 

 

 

8,376

Net loss

 

 

 

 

(46,373)

 

 

(46,373)

Other comprehensive income (loss)

 

 

 

 

 

(895)

 

(895)

BALANCE—September 30, 2023

 

323,642,480

$

32

$

1,901,931

$

(1,457,696)

$

(38,693)

$

405,574

Nine Months Ended September 30, 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

1,006,046

 

 

1,203

 

 

 

1,203

Vesting of restricted Common Stock

 

85,372

 

 

 

 

 

Vesting of restricted stock units

4,061,967

Repurchase of shares for employee tax withholdings

(89,132)

(147)

(147)

Issuance of Common Stock related to settlement of contingent consideration

444,793

797

797

Stock-based compensation expense

 

 

 

25,286

 

 

 

25,286

Net loss

 

 

 

 

(148,742)

 

 

(148,742)

Other comprehensive income (loss)

 

 

 

 

 

(325)

 

(325)

BALANCE—September 30, 2023

 

323,642,480

$

32

$

1,901,931

$

(1,457,696)

$

(38,693)

$

405,574

See notes to condensed consolidated financial statements.


DESKTOP METAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

(in thousands)

Nine Months Ended September 30, 

    

2023

    

2022

Cash flows from operating activities:

Net loss

    

$

(148,742)

    

$

(427,990)

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

 

 

Depreciation and amortization

 

40,322

 

38,294

Stock-based compensation

 

26,699

 

37,826

Goodwill impairment

2,450

229,500

Amortization (accretion) of discount on investments

(490)

(305)

Amortization of deferred costs on convertible notes

548

276

Provision for bad debt

640

1,038

Loss on disposal of property and equipment

501

 

209

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

238

771

Net unrealized (gain) loss on equity investment

286

6,172

Net unrealized (gain) loss on other investments

745

Deferred tax benefit

(675)

(1,602)

Change in fair value of contingent consideration

(254)

Foreign currency transaction loss

392

1,202

Impairment charges

6,062

Changes in operating assets and liabilities:

 

Accounts receivable

 

(2,446)

 

3,166

Inventory

 

(16,052)

 

(31,195)

Prepaid expenses and other current assets

 

(8,716)

 

(969)

Other assets

2,425

1,196

Accounts payable

 

7,397

 

(2,959)

Accrued expenses and other current liabilities

 

1,009

 

(3,855)

Customer deposits

 

(4,542)

 

2,360

Deferred revenue

 

3,590

 

(1,589)

Change in right of use assets and lease liabilities, net

 

(4,456)

 

(2,850)

Other liabilities

1,706

24

Net cash used in operating activities

 

(91,854)

 

(150,789)

Cash flows from investing activities:

 

 

Purchases of property and equipment

 

(2,709)

 

(8,157)

Proceeds from other investment

3,155

Proceeds from sale of property and equipment

9,942

6

Purchase of marketable securities

(4,973)

 

(158,404)

Proceeds from sales and maturities of marketable securities

 

112,719

 

205,650

Proceeds from disposal of subsidiaries

4,089

Proceeds from capital grant

200

Cash paid for acquisitions, net of cash acquired

 

(500)

 

(23)

Net cash provided by investing activities

 

118,568

 

42,427

Cash flows from financing activities:

 

 

  

Proceeds from the exercise of stock options

1,203

 

3,036

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

(147)

(230)

Repayment of loans

(337)

(421)

Proceeds from issuance of convertible notes

115,000

Costs incurred in connection with the issuance of convertible notes

(3,619)

Net cash provided by financing activities

 

719

 

113,766

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

(461)

(1,491)

Net increase in cash, cash equivalents, and restricted cash

 

26,972

 

3,913

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

81,913

68,258

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

$

108,885

$

72,171

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

$

107,432

$

66,987

Restricted cash included in other current assets

841

4,072

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

$

108,885

$

72,171

Supplemental cash flow information:

 

 

  

Interest paid

$

$


Taxes paid

$

$

Non-cash investing and financing activities:

 

 

  

Net unrealized (gain) loss on investments

$

(339)

$

418

Common Stock issued for settlement of contingent consideration

$

797

$

500

Deferred contract costs

$

$

1,341

Additions to right of use assets and lease liabilities

$

11,443

$

10,742

Purchase of property and equipment included in accounts payable

$

326

$

1,507

Purchase of property and equipment included in accrued expense

$

90

$

Transfers from property and equipment to inventory

$

1,647

$

2,470

Transfers from inventory to property and equipment

$

1,370

$

3,475

See notes to condensed consolidated financial statements.


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

For the Nine Months Ended

September 30, 

September 30, 

(Dollars in thousands)

2023

    

2022

2023

2022

GAAP gross margin

$

1,924

$

(309)

$

6,649

$

6,760

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

517

734

1,787

1,892

Amortization of acquired intangible assets included in cost of sales

6,889

5,877

20,744

17,817

Restructuring expense in cost of sales

16

3,085

3,221

3,126

Acquisition-related and integration costs included in cost of sales

913

1,148

Inventory step-up adjustment in cost of sales

1,496

Non-GAAP gross margin

$

9,346

$

9,387

$

33,314

$

32,239

GAAP operating loss

$

(45,120)

$

(57,819)

$

(145,954)

$

(419,868)

Stock-based compensation(2),(3)

7,683

12,040

26,699

41,170

Amortization of acquired intangible assets

10,398

9,069

31,297

28,522

Restructuring expense

142

3,085

6,610

5,086

Inventory step-up adjustment in cost of sales

1,496

Acquisition-related and integration costs(4)

(5,452)

1,476

3,313

6,633

Goodwill impairment

2,450

2,450

229,500

Impairment charges

6,062

6,062

Non-GAAP operating loss

$

(23,837)

$

(32,149)

$

(69,523)

$

(107,461)

GAAP net loss

$

(46,373)

$

(60,774)

$

(148,742)

$

(427,990)

Stock-based compensation(2),(3)

7,683

12,040

26,699

41,170

Amortization of acquired intangible assets

10,398

9,069

31,297

28,522

Restructuring expense

142

3,085

6,610

5,469

Inventory step-up adjustment in cost of sales

1,496

Acquisition-related and integration costs(4)

(5,452)

1,476

3,313

6,633

Goodwill impairment

2,450

2,450

229,500

Impairment charges

6,062

6,062

Change in fair value of investments

775

2,052

1,061

8,493

Non-GAAP net loss

$

(24,315)

$

(33,052)

$

(71,250)

$

(106,707)

(1) Includes $(0.1) million and $0.3 million of liability-award stock-based compensation expense for the three and nine months ended September 30, 2023, respectively. Includes $0.1 million and $0.2 million of liability-award stock-based compensation expense for the three and nine months ended September 30, 2022, respectively.

(2) Includes $(0.7) million and $2.2 million of liability-award stock-based compensation expense for the three and nine months ended September 30, 2023, respectively. Includes $1.2 million and $3.4 million of liability-award stock-based compensation expense for the three and nine months ended September 30, 2022, respectively.

(3) Includes $7.3 million of stock-based compensation expense associated with the restructuring initiative for the nine months ended September 30, 2022.

(4) For the three months ended September 30, 2023, the Company incurred an additional $4.3 million in merger expenses related to the Stratasys transaction and recognized a $10.0 million reduction in expenses as a result of the reimbursement from Stratasys. The net gain of $5.6 million is included in the adjustment for Acquisition-related and integration costs for the three months ended September 30, 2023. For the nine months ended September 30, 2023, we incurred $10.0 million in merger expenses related to the Stratasys transaction and recognized a $10.0 million reduction in expenses as a result of the reimbursement from Stratasys, with no net impact to the adjustment for Acquisition-related and integration costs for the nine months ended September 30, 2023.


DESKTOP METAL, INC.

NON-GAAP OPERATING EXPENSE RECONCILIATION TABLE

(in thousands)

For the Three Months Ended

For the Nine Months Ended

September 30, 

September 30, 

(Dollars in thousands)

2023

    

2022

2023

    

2022

GAAP operating expenses

    

$

47,044

$

57,510

$

152,603

$

426,628

Stock-based compensation included in operating expenses(1),(2)

(7,166)

(11,306)

(24,912)

(39,278)

Amortization of acquired intangible assets included in operating expenses

(3,509)

(3,192)

(10,553)

(10,705)

Restructuring expense included in operating expenses

(126)

(3,389)

(1,960)

Acquisition-related and integration costs included in operating expenses(3)

5,452

(1,476)

(2,400)

(5,485)

Goodwill impairment

(2,450)

(2,450)

(229,500)

Impairment charges

(6,062)

(6,062)

Non-GAAP operating expenses

$

33,183

$

41,536

$

102,837

$

139,700

(1) Includes $(0.6) million and $1.9 million of liability-award stock-based compensation expense for the three and nine months ended September 30, 2023, respectively. Includes $1.1 million and $3.2 million of liability-award stock-based compensation expense for the three and nine months ended September 30, 2022, respectively.

(2) Includes $7.3 million of stock-based compensation expense associated with the Initiative for the nine months ended September 30, 2022.

(3) For the three months ended September 30, 2023, the Company incurred an additional $4.3 million in merger expenses related to the Stratasys transaction and recognized a $10.0 million reduction in expenses as a result of the reimbursement from Stratasys. The net gain of $5.6 million is included in the adjustment for Acquisition-related and integration costs for the three months ended September 30, 2023. For the nine months ended September 30, 2023, we incurred $10.0 million in merger expenses related to the Stratasys transaction and recognized a $10.0 million reduction in expenses as a result of the reimbursement from Stratasys, with no net impact to the adjustment for Acquisition-related and integration costs for the nine months ended September 30, 2023.


DESKTOP METAL, INC.

NON-GAAP ADJUSTED EBITDA RECONCILIATION TABLE

(in thousands)

For the Three Months Ended

    

For the Nine Months Ended

September 30, 

September 30, 

(Dollars in thousands)

2023

    

2022

    

2023

    

2022

Net loss attributable to common stockholders

$

(46,373)

$

(60,774)

$

(148,742)

$

(427,990)

Interest (income) expense, net

1,045

680

 

2,965

 

1,281

Income tax expense (benefit)

(141)

598

 

(675)

 

(1,602)

Depreciation and amortization

13,357

12,692

 

40,322

 

38,294

EBITDA

(32,112)

(46,804)

 

(106,130)

 

(390,017)

Change in fair value of investments

775

2,052

1,061

8,493

Inventory step-up adjustment

1,496

Stock-based compensation expense(1),(2)

7,683

12,040

 

26,699

 

41,170

Restructuring expense

142

3,085

6,610

5,469

Goodwill impairment

2,450

2,450

229,500

Impairment charges

6,062

6,062

Acquisition-related and integration costs(3)

(5,452)

1,476

3,313

6,633

Adjusted EBITDA

$

(20,452)

$

(28,151)

$

(59,935)

$

(97,256)

(1) Includes $7.3 million of stock-based compensation expense associated with the Initiative for the nine months ended September 30, 2022.

(2) Includes $(0.7) million and $2.2 million of liability-award stock-based compensation expense for the three and nine months ended September 30, 2023, respectively. Includes $1.2 million and $3.4 million of liability-award stock-based compensation expense for the three and nine months ended September 30, 2022, respectively.

(3) For the three months ended September 30, 2023, the Company incurred an additional $4.3 million in merger expenses related to the Stratasys transaction and recognized a $10.0 million reduction in expenses as a result of the reimbursement from Stratasys. The net gain of $5.6 million is included in the adjustment for Acquisition-related and integration costs for the three months ended September 30, 2023. For the nine months ended September 30, 2023, we incurred $10.0 million in merger expenses related to the Stratasys transaction and recognized a $10.0 million reduction in expenses as a result of the reimbursement from Stratasys, with no net impact to the adjustment for Acquisition-related and integration costs for the nine months ended September 30, 2023.