Desktop Metal announces much improved operating performance in 2023
March 21, 2024
Desktop Metal, Inc, headquartered in Burlington, Massachusetts, USA, has announced its financial results for the fourth quarter and full year ended December 31, 2023. For the full year, the company reported record recurring revenue of $65 million, a 29% increase over the prior year that now represents 34% of revenue, up from 24% in 2022.
“Despite a challenging capital investment environment led by elevated interest rates and slower sales cycles, I’m proud that Team DM buckled down and delivered a much improved operating performance including reduced net loss and a record adjusted EBITDA performance,” said Ric Fulop, Founder and CEO of Desktop Metal.
“While we didn’t make our internal target of A-EBITDA positive by the end of the year, as some customer projects rolled into 2024, we are now very, very close to that goal,” he continued. “We now enter the year with a lower cost structure that makes us resilient for the long term. The hard work will continue as we drive toward profitability, a goal that is clearly within sight despite the tough market conditions.”
Fulop noted that Desktop Metal continues to see strong demand for production Binder Jetting (BJT) Additive Manufacturing machines that produce metal, sand and ceramic parts.
“Our all-time high recurring revenue levels prove that customers who have adopted our technology are using it successfully and getting great value from our technologies,” Fulop said.
Revenue for Q4 2023 was at $52.3 million, down from $60.6 million in the same quarter a year ago, and up 22% sequentially over the prior quarter. GAAP gross margin was 32% which was reportedly negatively impacted by restructuring activities in the quarter. Non-GAAP gross margin was 34%, a year-over-year increase of 39.9%.
Adjusted EBITDA was at $9.2 million, a year-over-year improvement of 56%, the company’s strongest quarterly performance to date.
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