Nano Dimension reports best third-quarter results in its history
November 28, 2024
Nano Dimension, headquartered in Waltham, Massachusetts, USA, has stated that its third fiscal quarter ending September 30, 2024, was the best Q3 in its history, with revenue of $14.9 million compared to $12.2 million in Q3 2023. For the first nine months of 2024, revenue totalled $43.2 million, compared to $41.9 million in the same period of 2023.
“I am pleased to report that we have achieved the strongest third quarter performance in our Company’s history. This remarkable accomplishment comes despite the broader market experiencing continued uncertainty in capital spending on manufacturing equipment – a challenge that has notably impacted many of our industry peers,” stated Yoav Stern, CEO. “Crucially, it is not just about the top-line. As part of our ‘Reshaping Nano Initiative,’ we have reduced our net cash burn to $3 million for the quarter. This is 80% less than the same quarter last year and a key milestone on our path to being an EBITDA-positive business.”
The gross margin for Q3 2024 was 48.2% (versus 44.2% in the same period of 2023). Net loss for the period for $8.6 million compared to $66.9 million in Q3 2023. Adjusted EBITDA for Q3 2024 was -$14.8 million (Q3 2023: -$30.1 million).
Stern continued, “What makes this quarter truly extraordinary is not just our financial performance, but also the strategic milestones we’ve reached. In Q3 alone, our team successfully announced two transformational M&A agreements – with Desktop Metal, Inc. (on July 3rd, 2024) and Markforged Holding Corporation (on September 25th, 2024). Each of these deals would be considered landmarks in their own right; to execute both in a single quarter is a testament to our team’s exceptional execution capabilities and our clear strategic vision.”
Total cost of revenues for the third quarter of 2024 was $7,700,000, compared to $6,789,000 in the third quarter of 2023. The increase is attributed to increased sales of the company’s product lines, partially offset by favourable product mix and operational efficiencies.
Research and development expenses for the third quarter of 2024 were $9,801,000, compared to $12,788,000 in the third quarter of 2023. The decrease is mainly attributed to a decrease in payroll and related expenses, subcontractors and professional services, and materials for R&D use, as well as a decrease in share-based payments expenses, largely associated with organisational synergies.
Sales and marketing expenses for the third quarter of 2024 were $6,952,000, compared to $7,715,000 in the third quarter of 2023, a decrease mainly attributed to a decrease in payroll and related expenses, as well as a decrease in share-based payments expenses.
General and administrative expenses for the third quarter of 2024 were $9,960,000, compared to $20,848,000 in the third quarter of 2023. The decrease is mainly attributed to a decrease in professional services, associated in part with organisational synergies. Other expenses, net for the third quarter of 2024, were $721,000. The forementioned expenses were related to Desktop Metal and Markforged transaction costs.
Net loss attributable to owners of the company for the third quarter of 2024 was $8,346,000, or $0.05 loss per share, compared to net loss of $66,604,000, or $0.26 per share, in the third quarter of 2023. The decrease is mainly attributed to the revaluation of the company’s investment in Stratasys shares, as well as a decrease in operating expenses across all departments.
“I must address an important matter that requires your attention. An activist investor, Murchinson Ltd, who some of you may recall from their activity last year, has emerged yet again,” Stern explained in his statement. “They seek to challenge and constrain our proven programme of growth and transformation through proposals at our upcoming annual general meeting. While we respect the right of all shareholders to express their views, we believe their approach will put the very initiatives that have delivered our current successes and positioned us for future growth at risk. A look at their proposals will indicate that Murchinson still has yet to create the most basic of plans for value creation, providing no insight into the business and no executable ideas.”
The statement went on to urge shareholders to vote for Nano Dimension’s proposals by the cut-off date of December 1.
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