Second Quarter 2023 Highlights
- Revenue totaled $34.5 million
- Total orders were $38.0 million
- Net loss totaled $(7.3) million; Adjusted net loss1 was $(5.7) million
- Adjusted EBITDA1 totaled $4.8 million, representing an Adjusted EBITDA margin1 of 14.0%
First Half 2023 Highlights
- Revenue totaled $69.5 million
- Total orders were $72.6 million
- Net loss totaled $(8.6) million; adjusted net loss1 totaled $(11.2) million
- Adjusted EBITDA1 was $8.9 million, representing an Adjusted EBITDA margin1 of 12.8%
HARTLAND, Wis. — (BUSINESS WIRE) — August 13, 2023 — Fathom Digital Manufacturing Corp. (NYSE: FATH), an industry leader in on-demand digital manufacturing services, today announced financial results for the second quarter and six months ended June 30, 2023.
|
Three Months Ended |
|
Six Months Ended |
||
($ in thousands) |
6/30/2023 |
6/30/2022 |
|
6/30/2023 |
6/30/2022 |
Revenue |
$34,474 |
$41,985 |
|
$69,481 |
$82,526 |
Net income (loss) |
$(7,264) |
$34,284 |
|
$(8,595) |
$53,278 |
Adjusted net income (loss)1 |
$(5,669) |
$1,497 |
|
$(11,171) |
$696 |
Adjusted EBITDA1 |
$4,819 |
$8,973 |
|
$8,920 |
$14,846 |
Adjusted EBITDA margin1 |
14.0% |
21.4% |
|
12.8% |
18.0% |
1 See “Non-GAAP Financial Information.” Reconciliations of non-GAAP financial measures are included in the appendix. |
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“Fathom’s results for the second quarter were consistent with our expectations as we continue to realize cost savings from our previously announced optimization plan, partially offsetting the impact of a challenging macro environment,” said Ryan Martin, Fathom Chief Executive Officer. “During the quarter, we grew order volumes approximately 10% on a sequential basis, increasing our backlog, and improved sequentially our Adjusted EBITDA and Adjusted EBITDA margin by 17.5% and 230 basis points, respectively. Our focus remains on fully leveraging our comprehensive capabilities to meet the high-mix, low-to-mid volume production needs of enterprise-level customers and driving profitable, long-term growth.”
Summary of Financial Results
Revenue for the second quarter of 2023 was $34.5 million compared to $42.0 million in the second quarter of 2022, a decrease of 17.9% primarily due to lower production volumes driven by the softer macroeconomic environment, primarily impacting Fathom’s production precision sheet metal product line. For the six months ended June 30, 2023, revenue totaled $69.5 million versus $82.5 million for the six months ended June 30, 2022.
Gross profit for the second quarter of 2023 totaled $10.5 million, or 30.6% of revenue, compared to $15.5 million, or 37.0% of revenue, in the second quarter of 2022. Gross profit for the six months ended June 30, 2023 was $22.5 million, or 32.4% of revenue, compared to $27.5 million, or 33.4% of revenue, which includes approximately $3.2 million in non-cash purchase accounting adjustments, for the same period in 2022.
