Desktop Metal announces solid start to 2023 financial year
May 12, 2023
Desktop Metal, Burlington, Massachusetts, USA, has announced its financial results for the first quarter, ended March 31, 2023. The company reported revenue of $41.3 million, down 5.5% from first quarter 2022 revenue of $43.7 million. Despite this, the company reaffirmed its revenue expectation of between $210 to $260 million for full year 2023.
“Desktop Metal is off to a solid start to 2023 following very strong growth last year,” stated Ric Fulop, Founder and CEO of Desktop Metal. “Customer demand trends for our unique portfolio of AM 2.0 mass production solutions remain resilient, despite an unsteady macro environment, giving us confidence in our growth projections for this year. Additionally, we’ve made significant progress on our cost reduction efforts initiated last year and expanded in February 2023. Going forward, we expect to demonstrate continued reductions in our cost structure in order to expand margins and deliver on our adjusted EBITDA commitments. We believe we can differentiate ourselves as we navigate a difficult economic backdrop relative to our industry peers.”
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Desktop Metal reported a GAAP gross margin of (3.3)% and non-GAAP gross margin of 18.0%, an improvement of 90 basis points from the first quarter 2022. Additionally, the company experienced a GAAP net loss of $52.6 million, including $10.4 million amortisation of acquired intangibles, as well as a non-GAAP net loss of $27.7 million.
The company also shared an Adjusted EBITDA of $(24.4) million, an improvement of $17.1 million from first quarter 2022, and reaffirmed their Adjusted EBITDA expectation of between $(50) to $(25) million for full year 2023, with the expectation that they will achieve Adjusted EBITDA breakeven before year end 2023.