Desktop Metal targets reaching breakeven in 2023, despite revenue fall

Companies & MarketsNews
November 17, 2023

November 17, 2023

Desktop Metal, Inc, based in Burlington, Massachusetts, USA, has reported its financial results for the third quarter ended September 30, 2023. The company announced Q3 2023 revenue of $42.8 million, a decrease from $47.1 million in the third quarter of 2022 attributed to lower product sales and a strategic focus on selling products with higher margins.

“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 annualised cost reductions announced in June 2022,” stated Ric Fulop, Founder and CEO of Desktop Metal.

Subscribe to our weekly newsletter
Sign up

“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.”

Fulop noted that the recurring revenue increased by 34% to $49.2 million in the first three quarters, compared to the same 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.”

The company highlighted its 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 Q3. As reported in February 2023, these cost reduction plans included a further workforce reduction of approximately 15% during the year.

In Q3, Desktop Metal’s GAAP gross margin was 4.5%, and the non-GAAP gross margin was 21.9%, improving by 190 basis points from the third quarter of 2022. The GAAP net loss was $46.4 million, which included $10.4 million for the amortisation of acquired intangibles. The non-GAAP net loss was $24.3 million.

Adjusted EBITDA for Q3 2023 was $(20.5) million, an improvement of $7.7 million from the third quarter of 2022. As of September 30, 2023, cash, cash equivalents, and short-term investments stood at $108.2 million, a decrease of $19.4 million from the end of the second quarter of 2023.

Desktop Metal said it is revising its revenue expectation to between $187 to $207 million and its Adjusted EBITDA expectation to between $(70) to $(50) million for full year 2023, with expectation to achieve adjusted EBITDA breakeven before year end 2023.

Download Metal AM magazine
Companies & MarketsNews
November 17, 2023

In the latest issue of Metal AM magazine

Download PDF

Extensive AM industry news coverage, as well as the following exclusive deep-dive articles:

  • Metal powders in Additive Manufacturing: An exploration of sustainable production, usage and recycling
  • Inside Wayland Additive: How innovation in electron beam PBF is opening new markets for AM
  • An end-to-end production case study: Leveraging data-driven machine learning and autonomous process control in AM
  • Consolidation, competition, and the cost of certification: Insight from New York’s AM Strategies 2024
  • Scandium’s impact on the Additive Manufacturing of aluminium alloys
  • AM for medical implants: An analysis of the impact of powder reuse in Powder Bed Fusion

The world of metal AM to your inbox

Don't miss any new issue of Metal AM magazine, and get the latest industry news. Sign up to our twice weekly newsletter.

Sign up

Discover our magazine archive…

The free to access Metal Additive Manufacturing magazine archive offers unparalleled insight into the world of metal Additive Manufacturing from a commercial and technological perspective through:

  • Reports on visits to leading metal AM part manufacturers and industry suppliers
  • Articles on technology and application trends
  • Information on materials developments
  • Reviews of key technical presentations from the international conference circuit
  • International industry news

All past issues are available to download as free PDFs or view in your browser.

Browse the archive

Looking for AM machines, metal powders or part manufacturing services?

Discover suppliers of these and more in our comprehensive advertisers’ index and buyer’s guide, available in the back of Metal AM magazine.

  • AM machines
  • Process monitoring & calibration
  • Heat treatment & sintering
  • HIP systems & services
  • Pre- & post-processing technology
  • Powders, powder production and analysis
  • Part manufacturers
  • Consulting, training & market data
View online
Share via
Copy link
Powered by Social Snap