Canada markets closed
  • S&P/TSX

    19,999.59
    -144.41 (-0.72%)
     
  • S&P 500

    4,166.45
    -55.41 (-1.31%)
     
  • DOW

    33,290.08
    -533.32 (-1.58%)
     
  • CAD/USD

    0.8036
    +0.0015 (+0.19%)
     
  • CRUDE OIL

    72.34
    +0.70 (+0.98%)
     
  • BTC-CAD

    43,914.22
    -790.38 (-1.77%)
     
  • CMC Crypto 200

    878.76
    -61.18 (-6.51%)
     
  • GOLD FUTURES

    1,772.00
    +3.00 (+0.17%)
     
  • RUSSELL 2000

    2,237.75
    -49.71 (-2.17%)
     
  • 10-Yr Bond

    1.4500
    -0.0610 (-4.04%)
     
  • NASDAQ futures

    14,021.50
    -13.50 (-0.10%)
     
  • VOLATILITY

    20.70
    +2.95 (+16.62%)
     
  • FTSE

    7,017.47
    -135.96 (-1.90%)
     
  • NIKKEI 225

    28,047.16
    -916.92 (-3.17%)
     
  • CAD/EUR

    0.6768
    +0.0010 (+0.15%)
     

Desktop Metal Announces First Quarter 2021 Financial Results

  • Oops!
    Something went wrong.
    Please try again later.
·15 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Revenue up 35% from the fourth quarter of 2020 to $11.3 million

  • Expanded materials portfolio to over 225 materials across metals, composites, polymers, ceramics, biocompatible materials, and now wood and elastomers

  • Accelerated customer adoption, adding more customers in the first quarter of 2021 than all of 2020 combined

  • Introduced Forust process for high-volume production of printed wood parts

  • Launched Flexcera as the first major product line for dental applications from Desktop Health and received FDA 510(k) clearance for Flexcera Base

  • Acquired Adaptive3D, a category-leader in printable elastomers and rubber materials

  • Robust liquidity position with cash, cash equivalents and short-term investments of $572.2 million as of March 31, 2021

Desktop Metal, Inc. (NYSE: DM) today announced its financial results for the first quarter ended March 31, 2021.

"We are pleased with the strong start to the year. Revenue growth accelerated as we captured strong organic momentum and inorganic opportunities," said Ric Fulop, Founder and CEO of Desktop Metal. "Continued innovation in our core business, coupled with our inorganic strategy, strengthens our ability to grow our product portfolio, expand the high-volume applications we can offer customers, and increase our category leadership. We are well positioned to execute on our long-term growth strategy focused on Additive Manufacturing 2.0 for high-volume, end-use parts."

First Quarter 2021 and Recent Business Highlights:

  • Expanded materials portfolio to over 225 materials across metals, composites, polymers, ceramics, biocompatible materials, and now wood and elastomers

  • Accelerated customer adoption, adding more customers in the first quarter of 2021 than all of 2020 combined

  • Introduced Forust process for high-volume, printed wood parts leveraging existing metal binder jetting printer technology

  • Launched Flexcera as the first major product line for dental applications from Desktop Health and received FDA 510(k) clearance for Flexcera Base

  • Acquired Adaptive3D, a category-leader in printable elastomers and rubber materials, adding to our growing materials portfolio

  • Closed EnvisionTEC acquisition and began shipping two new area-wide photopolymer printers: the Xtreme 8K and Envision One HT

  • Completed redemption of all outstanding public warrants in first quarter of 2021 to streamline capital structure and enhance cash position, contributing $170.7 million to our cash position

  • Grew Desktop Metal team to over 470 employees today, up from 180 employees in May 2020

First Quarter 2021 Financial Highlights:

  • Revenue of $11.3 million, up 35% from the fourth quarter of 2020 and up 234% from the first quarter of 2020

  • Net Loss of $59.1 million, including the non-cash negative change in fair value of warrant liability of $56.6 million and an income tax benefit of $27.9 million

  • Non-GAAP Gross Profit of $0.6 million, an improvement of $3.3 million from the first quarter of 2020

  • Adjusted EBITDA of $(19.4) million

  • Strong liquidity position with cash, cash equivalents and short-term investments of $572.2 million as of March 31, 2021

Outlook for Full Year 2021:

  • Reiterating expectation of over $100 million of revenue for 2021, exiting the year with an annualized revenue run rate of $160 million

  • Adjusted EBITDA in the range of $(60)–(70) million

Conference Call Information:

Desktop Metal will host a conference call on May 17, 2021 at 4:30 p.m. EDT to discuss first quarter 2021 results. Participants may access the call at 1-877-300-8521, international callers may use 1-412-317-6026, 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 from a link in the Events & Presentations section of https://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, Inc., based in Burlington, Massachusetts, is accelerating the transformation of manufacturing with an expansive portfolio of 3D printing solutions, from rapid prototyping to mass production. Founded in 2015 by leaders in advanced manufacturing, metallurgy, and robotics, the company is addressing the unmet challenges of speed, cost, and quality to make additive manufacturing an essential tool for engineers and manufacturers around the world. Desktop Metal was selected as one of the world’s 30 most promising Technology Pioneers by the World Economic Forum and named to MIT Technology Review’s list of 50 Smartest Companies.

For more information, visit www.desktopmetal.com.

Forward-looking Statements

This press release contains certain forward-looking statements within the meaning of the federal securities laws. Forward-looking statement 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 the risks and uncertainties set forth in Desktop Metal, Inc.'s filings with the U.S. Securities and Exchange Commission. 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,

2021

2020

Assets

Current assets:

Cash and cash equivalents

$

416,379

$

483,525

Short-term investments

155,847

111,867

Restricted cash

1,021

Accounts receivable

9,234

6,516

Inventory

20,837

9,708

Prepaid expenses and other current assets

18,657

976

Total current assets

621,975

612,592

Restricted cash

776

612

Property and equipment, net

12,331

12,160

Capitalized software, net

268

312

Goodwill

201,308

2,252

Intangible assets, net

144,103

9,102

Other noncurrent assets

6,826

4,879

Total Assets

$

987,587

$

641,909

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

$

5,227

$

7,591

Customer deposits

2,792

1,480

Current portion of lease liability

1,639

868

Accrued expenses and other current liabilities

15,324

7,565

Deferred revenue

3,405

3,004

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

11,019

9,991

Total current liabilities

39,406

30,499

Warrant liability

93,328

Long-term debt, net of deferred financing costs

163

Lease liability, net of current portion

3,248

2,157

Deferred tax liability

5,206

Total liabilities

48,023

125,984

Commitments and Contingencies

Stockholders’ Equity

Preferred Stock, $0.0001 par value—authorized, 50,000,000 shares; no shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively

Common Stock, $0.0001 par value—500,000,000 shares authorized; 252,660,102 and 226,756,733 shares issued at March 31, 2021 and December 31, 2020, respectively, 252,436,919 and 224,626,597 shares outstanding at March 31, 2021 and December 31, 2020, respectively

25

23

Additional paid-in capital

1,326,945

844,188

Accumulated deficit

(387,385

)

(328,277

)

Accumulated other comprehensive income (loss)

(21

)

(9

)

Total Stockholders’ Equity

939,564

515,925

Total Liabilities and Stockholders’ Equity

$

987,587

$

641,909

DESKTOP METAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

(in thousands, except per share amounts)

Three Months Ended

March 31,

2021

2020

Revenues

Products

$

10,311

$

2,694

Services

1,002

691

Total revenues

11,313

3,385

Cost of sales

Products

10,487

5,041

Services

1,413

1,163

Total cost of sales

11,900

6,204

Gross margin

(587

)

(2,819

)

Operating expenses

Research and development

10,858

12,340

Sales and marketing

5,449

4,494

General and administrative

13,846

2,625

Total operating expenses

30,153

19,459

Loss from operations

(30,740

)

(22,278

)

Change in fair value of warrant liability

(56,576

)

Interest expense

(73

)

(104

)

Interest and other income, net

361

578

Loss before income taxes

(87,028

)

(21,804

)

Income tax benefit

27,920

Net loss

$

(59,108

)

$

(21,804

)

Net loss per share—basic and diluted

$

(0.25

)

$

(0.14

)

DESKTOP METAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(UNAUDITED)

(in thousands)

Three Months Ended

March 31,

2021

2020

Net loss

$

(59,108

)

$

(21,804

)

Other comprehensive (loss) income, net of taxes:

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

1

(159

)

Foreign currency translation adjustment

(13

)

Total comprehensive loss, net of taxes of $0

$

(59,120

)

$

(21,963

)

DESKTOP METAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(UNAUDITED)

(in thousands, except share amounts)

Accumulated

Other

Common Stock

Additional

Comprehensive

Total

Voting

Paid-in

Accumulated

(Loss)

Stockholders’

Shares

Amount

Capital

Deficit

Income

Equity

BALANCE—January 1, 2021

224,626,597

$

23

$

844,188

$

(328,277

)

$

(9

)

$

515,925

Exercise of Common Stock options

163,228

180

180

Vesting of restricted Common Stock

56,015

Vesting of restricted stock units

15,265

Repurchase of shares for employee tax withholdings

(2,241

)

(54

)

(54

)

Issuance of Common Stock for acquisitions

5,036,142

159,847

159,847

Stock-based compensation expense

2,217

2,217

Vesting of Trine Founder shares

1,850,938

Exercise of warrants

20,690,975

2

320,567

320,569

Net loss

(59,108

)

(59,108

)

Other comprehensive income (loss)

(12

)

(12

)

BALANCE—March 31, 2021

252,436,919

$

25

$

1,326,945

$

(387,385

)

$

(21

)

$

939,564

Accumulated

Other

Legacy Convertible

Common Stock

Additional

Comprehensive

Total

Preferred Stock

Voting

Paid-in

Accumulated

(Loss)

Stockholders’

Shares

Amount

Shares

Amount

Capital

Deficit

Income

Equity

BALANCE—January 1, 2020

100,038,109

$

436,533

26,813,113

$

3

$

16,722

$

(294,262

)

$

75

$

(277,462

)

Retroactive application of recapitalization

(100,038,109

)

(436,533

)

128,100,821

13

436,520

436,533

Adjusted balance, beginning of period

154,913,934

16

453,242

(294,262

)

75

159,071

Exercise of Common Stock options

286,636

132

132

Vesting of restricted Common Stock

1,750,555

2

2

Stock-based compensation expense

1,259

1,259

Common Stock warrants issued

124

124

Net loss

(21,804

)

(21,804

)

Other comprehensive income (loss)

(159

)

(159

)

BALANCE—March 31, 2020

$

156,951,125

$

16

$

454,759

$

(316,066

)

$

(84

)

$

138,625

DESKTOP METAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

(in thousands)

Three Months Ended March 31,

2021

2020

Cash flows from operating activities:

Net loss

$

(59,108

)

$

(21,804

)

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

Depreciation and amortization

3,892

2,321

Stock-based compensation

2,217

1,259

Change in fair value of warrant liability

56,576

Expense related to Common Stock warrants issued

124

Amortization (accretion) of discount on investments

406

(22

)

Amortization of debt financing cost

4

4

Provision for bad debt

72

Net increase in accrued interest related to marketable securities

(240

)

(124

)

Net unrealized (gain) loss on marketable securities

(25

)

Deferred tax benefit

(27,921

)

Changes in operating assets and liabilities:

Accounts receivable

(61

)

752

Inventory

(2,381

)

(3,238

)

Prepaid expenses and other current assets

(4,276

)

393

Other assets

(30

)

Accounts payable

(3,856

)

(989

)

Accrued expenses and other current liabilities

(5,247

)

(976

)

Customer deposits

(1,234

)

285

Deferred revenue

105

(339

)

Change in right of use assets and lease liabilities, net

(22

)

(80

)

Net cash used in operating activities

(41,129

)

(22,434

)

Cash flows from investing activities:

Purchases of property and equipment

(262

)

(1,004

)

Purchase of marketable securities

(92,386

)

(17,616

)

Proceeds from sales and maturities of marketable securities

48,241

49,300

Cash paid for acquisition, net of cash acquired

(137,646

)

Net cash (used in) provided by investing activities

(182,053

)

30,680

Cash flows from financing activities:

Payment of issuance costs related to reverse recapitalization

(1,239

)

Proceeds from the exercise of stock warrants

158,308

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

(54

)

Proceeds from exercise of stock options

180

132

Net cash provided by financing activities

157,195

132

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

(65,987

)

8,378

Effect of exchange rate changes

26

Cash and cash equivalents at beginning of period

483,525

66,161

Restricted cash

612

612

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

$

418,176

$

75,151

Supplemental cash flow information:

Interest paid

$

73

$

107

Non-cash investing and financing activities:

Net unrealized (gain) loss on investments

$

(1

)

$

159

Exercise of private placement warrants

$

149,904

$

Common Stock issued for acquisitions

$

159,847

$

Additions to right of use assets and lease liabilities

$

364

$

Purchase of property and equipment included in accounts payable

$

50

$

Receivable for warrants exercised

$

12,357

$

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, 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, acquisition-related and other transactional charges included in general and administrative expenses and change in fair value of warrant liability

  • We define Non-GAAP operating loss as GAAP operating loss excluding the effect of stock-based compensation, amortization of acquired intangible assets, acquisition-related and other transactional charges included in general and administrative expenses and change in fair value of warrant liability

  • We define Non-GAAP net loss as GAAP net loss excluding the effect of stock-based compensation, amortization of acquired intangible assets, acquisition-related and other transactional charges included in general and administrative expenses and change in fair value of warrant liability

  • We define EBITDA as GAAP net income (loss) excluding interest, income taxes and depreciation and amortization expense

  • We define Adjusted EBITDA as EBITDA excluding stock based compensation, warrant expenses and transaction costs associated with acquisitions

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, 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, 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, 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, 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.

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)

2021

2020

GAAP gross margin

$

(587

)

$

(2,819

)

Stock-based compensation included in cost of sales

117

100

Amortization of acquired intangible assets included in cost of sales

1,091

Non-GAAP gross margin

$

621

$

(2,719

)

GAAP operating loss

$

(30,740

)

$

(22,278

)

Stock-based compensation

2,217

1,259

Amortization of acquired intangible assets included in cost of sales

1,091

Amortization of acquired intangibles assets

1,208

164

Acquisition-related and other transactional charges included in general and administrative expenses

4,984

Non-GAAP operating loss

$

(21,240

)

$

(20,855

)

GAAP net loss

$

(59,108

)

$

(21,804

)

Stock-based compensation

2,217

1,259

Amortization of acquired intangible assets included in cost of sales

1,091

Amortization of acquired intangibles assets

1,208

164

Acquisition-related and other transactional charges included in general and administrative expenses

4,984

Change in fair value of warrant liability

56,576

Non-GAAP net loss

$

6,968

$

(20,381

)

DESKTOP METAL, INC.

ADJUSTED EBITDA RECONCILIATION TABLE

(in thousands)

For the Three Months Ended

March 31,

(Dollars in thousands)

2021

2020

Net loss attributable to common stockholders

$

(59,108

)

$

(21,804

)

Interest (income) expense, net

(42

)

(478

)

Income tax benefit

(27,920

)

Depreciation and amortization

3,892

2,321

EBITDA

(83,178

)

(19,961

)

Change in fair value of warrant liability

56,576

Stock compensation expense

2,217

1,259

Warrant expense

139

Transaction costs associated with acquisitions

4,984

Adjusted EBITDA

$

(19,401

)

$

(18,563

)

View source version on businesswire.com: https://www.businesswire.com/news/home/20210517005875/en/

Contacts

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

Press Contact
Lynda McKinney
(978) 224-1282
lyndamckinney@desktopmetal.com

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting