Desktop Metal Announces First Quarter 2021 Financial Results

Rhea-AI Summary

Desktop Metal, Inc. (NYSE: DM) reported a robust first quarter for 2021, achieving $11.3 million in revenue, up 35% from Q4 2020 and 234% year-over-year. The company experienced accelerated customer adoption, adding more clients than in all of 2020 combined. Significant highlights included the acquisition of Adaptive3D, expansion of their materials portfolio to over 225 materials, and the launch of Flexcera for dental applications. However, the net loss was $59.1 million. Desktop Metal maintains a strong liquidity position with $572.2 million in cash as of March 31, 2021.

Positive

• Revenue of $11.3 million, up 234% year-over-year.
• Expanded materials portfolio to over 225 materials.
• Accelerated customer adoption, adding more customers than all of 2020 combined.
• Acquisition of Adaptive3D enhances product offerings.
• Strong cash position with $572.2 million available.

Negative

• Net loss of $59.1 million, including $56.6 million non-cash change in fair value of warrants.
• Adjusted EBITDA projected between $(60)–(70) million.

Desktop Metal, Inc. (NYSE: DM) today announced its financial results for the first quarter ended March 31, 2021.

“We are pleased with the strong start to the year. Revenue growth accelerated as we captured strong organic momentum and inorganic opportunities,” said Ric Fulop, Founder and CEO of Desktop Metal. “Continued innovation in our core business, coupled with our inorganic strategy, strengthens our ability to grow our product portfolio, expand the high-volume applications we can offer customers, and increase our category leadership. We are well positioned to execute on our long-term growth strategy focused on Additive Manufacturing 2.0 for high-volume, end-use parts.”

First Quarter 2021 and Recent Business Highlights:

• Expanded materials portfolio to over 225 materials across metals, composites, polymers, ceramics, biocompatible materials, and now wood and elastomers
• Accelerated customer adoption, adding more customers in the first quarter of 2021 than all of 2020 combined
• Introduced Forust process for high-volume, printed wood parts leveraging existing metal binder jetting printer technology
• Launched Flexcera as the first major product line for dental applications from Desktop Health and received FDA 510(k) clearance for Flexcera Base
• Acquired Adaptive3D, a category-leader in printable elastomers and rubber materials, adding to our growing materials portfolio
• Closed EnvisionTEC acquisition and began shipping two new area-wide photopolymer printers: the Xtreme 8K and Envision One HT
• Completed redemption of all outstanding public warrants in first quarter of 2021 to streamline capital structure and enhance cash position, contributing $170.7 million to our cash position
• Grew Desktop Metal team to over 470 employees today, up from 180 employees in May 2020

First Quarter 2021 Financial Highlights:

• Revenue of $11.3 million, up 35% from the fourth quarter of 2020 and up 234% from the first quarter of 2020
• Net Loss of $59.1 million, including the non-cash negative change in fair value of warrant liability of $56.6 million and an income tax benefit of $27.9 million
• Non-GAAP Gross Profit of $0.6 million, an improvement of $3.3 million from the first quarter of 2020
• Adjusted EBITDA of $(19.4) million
• Strong liquidity position with cash, cash equivalents and short-term investments of $572.2 million as of March 31, 2021

Outlook for Full Year 2021:

• Reiterating expectation of over $100 million of revenue for 2021, exiting the year with an annualized revenue run rate of $160 million
• Adjusted EBITDA in the range of $(60)–(70) million

Conference Call Information:

Desktop Metal will host a conference call on May 17, 2021 at 4:30 p.m. EDT to discuss first quarter 2021 results. Participants may access the call at 1-877-300-8521, international callers may use 1-412-317-6026, and request to join the Desktop Metal financial results conference call. A simultaneous webcast of the conference call and the accompanying summary presentation may be accessed online from a link in the Events & Presentations section of https://ir.desktopmetal.com. A replay will be available shortly after the conclusion of the conference call at the same website.

About Desktop Metal

Desktop Metal, Inc., based in Burlington, Massachusetts, is accelerating the transformation of manufacturing with an expansive portfolio of 3D printing solutions, from rapid prototyping to mass production. Founded in 2015 by leaders in advanced manufacturing, metallurgy, and robotics, the company is addressing the unmet challenges of speed, cost, and quality to make additive manufacturing an essential tool for engineers and manufacturers around the world. Desktop Metal was selected as one of the world’s 30 most promising Technology Pioneers by the World Economic Forum and named to MIT Technology Review’s list of 50 Smartest Companies.

For more information, visit www.desktopmetal.com.

Forward-looking Statements

This press release contains certain forward-looking statements within the meaning of the federal securities laws. Forward-looking statement generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this document, including but not limited to the risks and uncertainties set forth in Desktop Metal, Inc.'s filings with the U.S. Securities and Exchange Commission. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Desktop Metal, Inc. assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

DESKTOP METAL, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands, except share and per share amounts)
		March 31,				December 31,
		2021				2020
Assets
Current assets:
Cash and cash equivalents		$	416,379			$	483,525
Short-term investments			155,847				111,867
Restricted cash			1,021				—
Accounts receivable			9,234				6,516
Inventory			20,837				9,708
Prepaid expenses and other current assets			18,657				976
Total current assets			621,975				612,592
Restricted cash			776				612
Property and equipment, net			12,331				12,160
Capitalized software, net			268				312
Goodwill			201,308				2,252
Intangible assets, net			144,103				9,102
Other noncurrent assets			6,826				4,879
Total Assets		$	987,587			$	641,909
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable		$	5,227			$	7,591
Customer deposits			2,792				1,480
Current portion of lease liability			1,639				868
Accrued expenses and other current liabilities			15,324				7,565
Deferred revenue			3,405				3,004
Current portion of long-term debt, net of deferred financing costs			11,019				9,991
Total current liabilities			39,406				30,499
Warrant liability			—				93,328
Long-term debt, net of deferred financing costs			163				—
Lease liability, net of current portion			3,248				2,157
Deferred tax liability			5,206				—
Total liabilities			48,023				125,984
Commitments and Contingencies
Stockholders’ Equity
Preferred Stock, $0.0001 par value—authorized, 50,000,000 shares; no shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively			—				—
Common Stock, $0.0001 par value—500,000,000 shares authorized; 252,660,102 and 226,756,733 shares issued at March 31, 2021 and December 31, 2020, respectively, 252,436,919 and 224,626,597 shares outstanding at March 31, 2021 and December 31, 2020, respectively			25				23
Additional paid-in capital			1,326,945				844,188
Accumulated deficit			(387,385	)			(328,277	)
Accumulated other comprehensive income (loss)			(21	)			(9	)
Total Stockholders’ Equity			939,564				515,925
Total Liabilities and Stockholders’ Equity		$	987,587			$	641,909

DESKTOP METAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in thousands, except per share amounts)
		Three Months Ended
		March 31,
		2021				2020
Revenues
Products		$	10,311			$	2,694
Services			1,002				691
Total revenues			11,313				3,385
Cost of sales
Products			10,487				5,041
Services			1,413				1,163
Total cost of sales			11,900				6,204
Gross margin			(587	)			(2,819	)
Operating expenses
Research and development			10,858				12,340
Sales and marketing			5,449				4,494
General and administrative			13,846				2,625
Total operating expenses			30,153				19,459
Loss from operations			(30,740	)			(22,278	)
Change in fair value of warrant liability			(56,576	)			—
Interest expense			(73	)			(104	)
Interest and other income, net			361				578
Loss before income taxes			(87,028	)			(21,804	)
Income tax benefit			27,920				—
Net loss		$	(59,108	)		$	(21,804	)
Net loss per share—basic and diluted		$	(0.25	)		$	(0.14	)

DESKTOP METAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) (in thousands)
		Three Months Ended
		March 31,
		2021				2020
Net loss		$

FAQ

What were Desktop Metal's revenue results for Q1 2021?

Desktop Metal reported revenue of $11.3 million for the first quarter of 2021.

How much did Desktop Metal lose in Q1 2021?

Desktop Metal incurred a net loss of $59.1 million in the first quarter of 2021.

What is the outlook for Desktop Metal's revenue in 2021?

Desktop Metal expects to exceed $100 million in revenue for 2021 and aims for a run rate of $160 million by year-end.

What acquisitions did Desktop Metal make recently?

Desktop Metal acquired Adaptive3D and EnvisionTEC to enhance its materials and product offerings.

When will Desktop Metal discuss its Q1 2021 results in a conference call?

Desktop Metal will host a conference call on May 17, 2021, at 4:30 p.m. EDT to discuss its financial results.