Nano Dimension reports record revenue in second quarter results
August 29, 2024
Nano Dimension, based in Waltham, Massachusetts, USA, has announced its financial results for the second quarter ended June 30, 2024. The company reported revenue of $15.0 million for Q2 2024, compared to $14.7 million in Q2 2023, attributed to increased sales of the company’s product lines.
“The first point to highlight is this year’s quarterly revenue of $15.0 million. This is a record, especially in the context of alleged macroeconomic headwinds and high interest rates that seemingly all companies in our industry attest to as being meaningfully challenging. Our exposure to markets indicates “headwinds” mostly in central Europe, at this point,” shared Yoav Stern, Chief Executive Officer and a member of the Board of Directors of Nano Dimension.
For Q2 2024 gross margin was 45.4%, compared to Q2 2023’s 44.1%, whereas the adjusted gross margin for Q2 2024 was 46.6% compared to Q2 2023’s 47.5%.
For Q2 2024 net loss was at $44.43 million, compared to Q2 2023’s loss of $9.4 million. However, when excluding changes in the company’s holdings in Stratasys’ shares, Q2 2024’s net loss was $12.9 million, compared to Q2 2023’s loss of $21.3 million.
Adjusted EBITDA was negative $16.1 million for Q2 2024, compared to Q2 2023’s negative $23.5 million.
As a result of the reorganisational plan executed by the company in the fourth quarter of 2023, and other cost reduction efforts taken in 2024, the company’s operating expenses across all departments have decreased in the second quarter of 2024 compared to the second quarter of 2023.
Research and development expenses for the second quarter of 2024 were $9,121,000, compared to $16,386,000 in the second quarter of 2023. The decrease is mainly attributed to a decrease in payroll and related expenses, as well as in share-based compensation expenses, materials for R&D use, subcontractors and professional services, largely associated with organisational synergies.
Sales and marketing expenses for the second quarter of 2024 were $7,221,00, compared to $8,217,000 in the second quarter of 2023. The decrease is mainly attributed to a decrease in payroll and related expenses, largely associated with organisational synergies.
General and administrative expenses for the second quarter of 2024 were $2,721,000. The forementioned expenses were related to Desktop Metal transaction costs.
“There is more to do. While our employees should be proud of what they have achieved, management should not rest. The future of Nano Dimension will undoubtedly be shaped by the eventual closing of our agreement to acquire Desktop Metal, Inc. (“DM”), which we worked on initially since late 2022, again in late 2023, and announced on July 3rd, 2024. This acquisition will create a leader in AM,” shared Stern. “The combined company will bring together outstanding teams and one of the most advanced portfolios in AM for mass production. I also believe this combination is compelling as the products and services portfolio can be characterised as having long term high growth potential. Together, we will accelerate our industry’s transition to integrated digital manufacturing solutions.”
“Now that the deal is signed, the team is committed to preparing for realising synergies to the greatest extent possible and as soon as possible. To do this, we are working on a post-merger integration plan to ensure a seamless transition from day one after closing of the transaction,” Stern added. “I believe this acquisition was secured at an exceptionally compelling valuation for our shareholders with the total consideration being at most $183 million, and, with some potential adjustments, as low as $135 million. This creates a pro forma company that, based on the last full year figures from 2023, had revenue of $246 million with 28% of that generated from recurring revenue associated with consumables and services.”
Stern continued, “Having said that, we intend, if needed, to forgo inflating the top line, for the benefit, if possible, of improved EBITDA and reduction of negative cash flow while driving toward cash generation and positive profits.”
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