Desktop Metal, Boston, Massachusetts, USA, has announced its financial results for the second quarter ended June 30, 2022. Revenue was up 203.9% from the second quarter of 2021 which saw revenue at $19 million, and an increase of 32% sequentially from the first quarter of 2022.
“Desktop Metal continued to build on its momentum in the second quarter, delivering record revenue of $57.7 million and expanding non-GAAP gross margins to 26.7%,” stated Ric Fulop, founder and CEO of Desktop Metal. “Our strong financial results represent the strength and breadth of our unmatched AM 2.0 portfolio as our team continues to execute at a high level in a dynamic macro environment.”
The GAAP gross margin of 14.6% and a non-GAAP gross margin of 26.7%, increasing over 170 basis points from the second quarter of 2021. Desktop Metal saw a net loss of $297.3 million, primarily due to a non-cash goodwill impairment charge of $229.5 million as a result of the company’s and comparable companies’ stock price declines and including $2.4 million of restructuring charges in connection with the Strategic Integration and Cost Optimization Initiative. Cash, cash equivalents, and short-term investments were reported as $255.7 million as of June 30, 2022.
Desktop Metal introduced its Strategic Integration and Cost Optimization Initiative to accelerate AM 2.0 growth, support a path to profitability, and drive value to shareholders including expectation of approximately $40 million of annualised run rate non-GAAP cost savings, $20 million of which is expected to take place in the second half of 2022 and at least $100 million of aggregate cost savings over the next twenty-four months.
The company was also awarded a sub-contract under the Defense Logistics Agency (DLA) of the US Department of Defense prime contract worth a potential $15 million. Monetisation efforts also began on the company’s IP portfolio of over 650 patents and pending applications.
Fulop added, “We enter the second half of the year with a more streamlined and efficient operating model, combining continued revenue growth at scale with a disciplined strategy to optimise our expense structure, in order to achieve our financial commitments and support our path to profitability.”