Desktop Metal, Inc. (DM) Bundle
A Brief History of Desktop Metal, Inc.
Company Overview
Desktop Metal, Inc. is a leader in the field of additive manufacturing technology, specializing in metal 3D printing solutions. Founded in 2015, the company has rapidly evolved, focusing on providing innovative products designed to enhance manufacturing efficiency and reduce costs.
Financial Performance (2024)
As of September 30, 2024, Desktop Metal reported total revenues of $115.9 million for the nine-month period, down from $137.4 million in the same period in 2023, representing a decrease of 16%. The breakdown of revenue is as follows:
| Revenue Source | 2024 (in millions) | 2023 (in millions) | Change (in millions) | Percentage Change |
|---|---|---|---|---|
| Products | 98.98 | 121.60 | (22.62) | (19%) |
| Services | 16.96 | 15.76 | 1.20 | 8% |
| Total Revenue | 115.94 | 137.36 | (21.42) | (16%) |
The decline in product revenue was primarily attributed to a reduction in units shipped, influenced by challenging macroeconomic conditions affecting the additive manufacturing sector.
Operating Expenses
Desktop Metal's operating expenses for the nine months ended September 30, 2024, totaled $153.2 million, slightly up from $152.6 million in the same period in 2023. Key components included:
| Expense Type | 2024 (in millions) | 2023 (in millions) | Change (in millions) | Percentage Change |
|---|---|---|---|---|
| Research and Development | 48.46 | 64.82 | (16.36) | (25%) |
| Sales and Marketing | 45.01 | 28.60 | 16.41 | 57% |
| General and Administrative | 59.74 | 50.67 | 9.07 | 18% |
Research and development expenses saw a significant decrease by 25%, primarily due to reductions in stock compensation and payroll expenses.
Net Loss
For the nine months ended September 30, 2024, Desktop Metal recorded a net loss of $190.99 million, compared to a net loss of $148.74 million for the same period in 2023. This reflects continued challenges in achieving profitability as the company invests heavily in growth.
Liquidity Position
As of September 30, 2024, Desktop Metal had cash and cash equivalents of $30.6 million, significantly down from $83.8 million at the end of 2023. The company also faces current liabilities totaling $61.2 million.
Recent Developments
On July 2, 2024, Desktop Metal entered into a Merger Agreement with Nano Dimension Ltd., which is expected to result in the delisting of the company's stock from the New York Stock Exchange. The merger is aimed at enhancing the company's capital structure and operational capabilities.
Stock Performance
Desktop Metal's stock has faced volatility in 2024, with significant fluctuations reflecting the broader challenges in the additive manufacturing sector and ongoing strategic initiatives.
A Who Owns Desktop Metal, Inc. (DM)
Major Shareholders
As of 2024, Desktop Metal, Inc. has several significant shareholders. The ownership structure includes institutional investors, individual stakeholders, and company insiders. The following table outlines the major shareholders along with their respective ownership percentages:
| Shareholder | Type of Ownership | Ownership Percentage |
|---|---|---|
| Nano Dimension Ltd. | Institutional Investor | Approximately 51% |
| BlackRock, Inc. | Institutional Investor | Approximately 7% |
| Vanguard Group, Inc. | Institutional Investor | Approximately 6% |
| Insider Ownership | Company Executives and Board Members | Approximately 5% |
Recent Developments
On July 2, 2024, Desktop Metal announced a proposed merger with Nano Dimension Ltd., which would result in Nano Dimension becoming the majority owner of Desktop Metal. Under the terms of the merger agreement, shareholders of Desktop Metal would receive cash compensation of $5.50 per share, subject to certain adjustments based on the company's financial obligations at the time of closing.
Stock Performance
As of September 30, 2024, the share price of Desktop Metal has fluctuated significantly, reflecting the overall market conditions and the company's financial performance. The latest recorded stock price was approximately $5.81, indicating a decline from earlier valuations.
Financial Overview
As of the third quarter of 2024, Desktop Metal reported a total revenue of $36.4 million for the quarter, down from $42.8 million in the same period of 2023. The company incurred a net loss of $35.4 million during this quarter, showcasing the challenges faced in the current market environment.
Ownership Changes
The merger with Nano Dimension is expected to lead to significant changes in the ownership structure of Desktop Metal. Post-merger, Nano Dimension will hold a controlling interest, effectively making Desktop Metal a wholly-owned subsidiary. This change is part of a strategic move to enhance operational efficiencies and market competitiveness.
Market Position
Desktop Metal operates in the additive manufacturing sector, which has seen increased interest but also competitive pressures. As of 2024, the company is focusing on enhancing its product offerings and expanding its market reach, particularly in high-value applications such as medical devices and automotive components.
Desktop Metal, Inc. (DM) Mission Statement
As of 2024, Desktop Metal, Inc. aims to transform the manufacturing landscape through innovative additive manufacturing solutions. The company's mission focuses on delivering high-quality, efficient, and accessible 3D printing technologies to a diverse range of industries. This commitment to innovation positions Desktop Metal as a leader in the additive manufacturing sector, enabling customers to achieve significant design, performance, and supply chain advantages over traditional manufacturing processes.
Financial Overview
In the nine months ending September 30, 2024, Desktop Metal reported total revenues of $115.9 million, a decrease from $137.4 million in the same period of 2023, marking a 16% decline. The company recognized a net loss of $191.0 million, compared to a net loss of $148.7 million in the previous year.
| Metric | 2024 (9 Months) | 2023 (9 Months) | Change |
|---|---|---|---|
| Total Revenue | $115.9 million | $137.4 million | −$21.5 million (−16%) |
| Net Loss | $191.0 million | $148.7 million | −$42.3 million |
| Cash Used in Operating Activities | $53.4 million | N/A | N/A |
| Cash and Cash Equivalents | $30.6 million | N/A | N/A |
| Current Liabilities | $61.2 million | N/A | N/A |
Revenue Breakdown
For the nine months ended September 30, 2024, the revenue breakdown by segment is as follows:
| Revenue Type | Amount | Percentage of Total Revenue |
|---|---|---|
| Products Revenue | $98.0 million | 85% |
| Services Revenue | $16.9 million | 15% |
| Total Revenue | $115.9 million | 100% |
Geographic Revenue Distribution
The geographic distribution of revenue for the nine months ended September 30, 2024, is as follows:
| Region | Revenue | % of Total Revenue | Change from 2023 |
|---|---|---|---|
| Americas | $75.8 million | 65% | −14% |
| EMEA | $28.5 million | 25% | −22% |
| APAC | $11.6 million | 10% | −10% |
| Total Revenue | $115.9 million | 100% | −16% |
Recent Developments
On July 2, 2024, Desktop Metal entered a merger agreement with Nano Dimension Ltd. The merger stipulates that each outstanding share of Desktop Metal Class A common stock will be converted into cash at a price of $5.50 per share, subject to certain adjustments. This merger is expected to result in the delisting of Desktop Metal's stock from the New York Stock Exchange following its completion.
Operational Initiatives
In early 2024, Desktop Metal announced a strategic integration and cost optimization initiative, which includes a global workforce reduction of approximately 20%. This initiative aims to achieve at least $50 million in annualized cost savings by consolidating facilities and rationalizing products.
| Initiative | Estimated Savings | Details |
|---|---|---|
| 2024 Initiative | $50 million | Workforce reduction, facility consolidation |
| 2022 Initiative | $100 million | Completed cost-saving measures |
Stock Performance
The stock performance of Desktop Metal has been impacted by recent market conditions. As of September 30, 2024, the company’s Class A common stock has faced significant fluctuations, necessitating strategic assessments of market positioning and operational efficiencies.
In summary, Desktop Metal, Inc. continues to pursue its mission of revolutionizing the manufacturing sector through innovative additive manufacturing solutions, while navigating financial challenges and strategic operational initiatives.
How Desktop Metal, Inc. (DM) Works
Business Overview
Desktop Metal, Inc. operates in the additive manufacturing sector, providing innovative 3D printing solutions. The company focuses on delivering its products and services through a global distribution network that spans over 40 countries, integrating technology innovation and product development.
Financial Performance
For the three months ended September 30, 2024, Desktop Metal reported:
| Metric | 2024 | 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenue | $36.4 million | $42.8 million | $(6.4 million) | (15%) |
| Gross Profit | $3.2 million | $1.9 million | $1.3 million | 64% |
| Net Loss | $(35.4 million) | $(46.4 million) | $11.0 million | 24% |
For the nine months ended September 30, 2024, the financial performance included:
| Metric | 2024 | 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenue | $115.9 million | $137.4 million | $(21.5 million) | (16%) |
| Gross Profit (Loss) | $(31.2 million) | $6.6 million | $(37.8 million) | (570%) |
| Net Loss | $(191.0 million) | $(148.7 million) | $(42.3 million) | 28% |
Revenue Breakdown
Revenue streams for the three months ended September 30, 2024:
| Type | Revenue ($) | % of Total Revenue | Change ($) | Change (%) |
|---|---|---|---|---|
| Products Revenue | $31.9 million | 88% | $(5.6 million) | (15%) |
| Services Revenue | $4.5 million | 12% | $(0.8 million) | (15%) |
Geographical Revenue Distribution
Revenue distribution for the nine months ended September 30, 2024:
| Region | Revenue ($) | % of Total Revenue | Change ($) | Change (%) |
|---|---|---|---|---|
| Americas | $75.8 million | 65% | $(12.1 million) | (14%) |
| EMEA | $28.5 million | 25% | $(8.0 million) | (22%) |
| APAC | $11.6 million | 10% | $(1.3 million) | (10%) |
Costs and Expenses
For the three months ended September 30, 2024, key expenses included:
| Expense Type | Amount ($) | 2024 vs 2023 Change ($) | Change (%) |
|---|---|---|---|
| Research and Development | $11.5 million | $(9.0 million) | (44%) |
| Sales and Marketing | $8.1 million | $(0.4 million) | (5%) |
| General and Administrative | $17.3 million | $7.8 million | 82% |
Liquidity and Capital Resources
As of September 30, 2024, Desktop Metal had:
- Cash and cash equivalents: $30.6 million
- Current liabilities: $61.2 million
- Net cash used in operating activities for the nine months: $53.4 million
Recent Developments
On July 2, 2024, Desktop Metal entered into a merger agreement with Nano Dimension Ltd. Following the merger, the company’s Class A common stock will be delisted from the New York Stock Exchange. Each share of Class A common stock will convert to cash consideration of $5.50, subject to adjustments based on certain conditions.
How Desktop Metal, Inc. (DM) Makes Money
Revenue Streams
Desktop Metal, Inc. generates revenue primarily through two key streams: Products and Services.
| Revenue Stream | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | Change (in thousands) | Percentage Change |
|---|---|---|---|---|
| Products | $31,939 | $37,502 | $(5,563) | (15)% |
| Services | $4,466 | $5,248 | $(782) | (15)% |
| Total Revenue | $36,405 | $42,750 | $(6,345) | (15)% |
For the nine months ended September 30, 2024, the revenue breakdown is as follows:
| Revenue Stream | 9M 2024 Revenue (in thousands) | 9M 2023 Revenue (in thousands) | Change (in thousands) | Percentage Change |
|---|---|---|---|---|
| Products | $98,981 | $121,597 | $(22,616) | (19)% |
| Services | $16,956 | $15,755 | $1,201 | 8% |
| Total Revenue | $115,937 | $137,352 | $(21,415) | (16)% |
Cost of Sales
The cost of sales for Desktop Metal, Inc. during Q3 2024 and Q3 2023 is presented below:
| Cost Component | Q3 2024 Cost (in thousands) | Q3 2023 Cost (in thousands) |
|---|---|---|
| Products | $29,962 | $37,175 |
| Services | $3,282 | $3,651 |
| Total Cost of Sales | $33,244 | $40,826 |
Gross Profit and Margin
For Q3 2024, Desktop Metal reported a gross profit of $3,161 thousand, with a gross margin of 9%, compared to a gross profit of $1,924 thousand and a margin of 5% in Q3 2023.
| Period | Gross Profit (in thousands) | Gross Margin (%) |
|---|---|---|
| Q3 2024 | $3,161 | 9% |
| Q3 2023 | $1,924 | 5% |
Operating Expenses
The operating expenses for the three months ended September 30, 2024, were as follows:
| Expense Category | Q3 2024 Expense (in thousands) | Q3 2023 Expense (in thousands) |
|---|---|---|
| Research and Development | $11,500 | $20,455 |
| Sales and Marketing | $8,053 | $8,549 |
| General and Administrative | $17,330 | $9,528 |
| Total Operating Expenses | $36,883 | $47,044 |
Net Loss
For Q3 2024, Desktop Metal reported a net loss of $35,448 thousand, compared to a net loss of $46,373 thousand in Q3 2023.
| Period | Net Loss (in thousands) |
|---|---|
| Q3 2024 | $35,448 |
| Q3 2023 | $46,373 |
Cash and Cash Equivalents
As of September 30, 2024, Desktop Metal had cash and cash equivalents amounting to $30,600 thousand.
Future Commitments
The company has a future purchase commitment through 2026 of $6.1 million for equipment related to its digital dentistry solutions.
Recent Developments
On July 2, 2024, Desktop Metal entered into a merger agreement with Nano Dimension Ltd., which will result in the delisting of the company's stock from the New York Stock Exchange.
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Article updated on 8 Nov 2024
Resources:
- Desktop Metal, Inc. (DM) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Desktop Metal, Inc. (DM)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Desktop Metal, Inc. (DM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.