- Revenue up 35% from the fourth quarter of 2020 to $11.3 million
- 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 production of printed wood parts
- 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
- Robust liquidity position with cash, cash equivalents and short-term investments of $572.2 million as of March 31, 2021
BOSTON — (BUSINESS WIRE) — May 17, 2021 — 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 |
|
$ |
(59,108 |
) |
|
$ |
(21,804 |
) |
Other comprehensive (loss) income, net of taxes: |
|
|
|
|
|
|
||
Unrealized gain (loss) on available-for-sale marketable securities, net |
|
|
1 |
|
|
|
(159 |
) |
Foreign currency translation adjustment |
|
|
(13 |
) |
|
|
— |
|
Total comprehensive loss, net of taxes of $0 |
|
$ |
(59,120 |
) |
|
$ |
(21,963 |
) |
DESKTOP METAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED) (in thousands, except share amounts) |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated |
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
|
||||||
|
|
Common Stock |
|
Additional |
|
|
|
|
Comprehensive |
|
Total |
|||||||||||
|
|
Voting |
|
Paid-in |
|
Accumulated |
|
(Loss) |
|
Stockholders’ |
||||||||||||
|
|
Shares |
|
Amount |
|
Capital |
|
Deficit |
|
Income |
|
Equity |
||||||||||
BALANCE—January 1, 2021 |
|
224,626,597 |
|
|
$ |
23 |
|
$ |
844,188 |
|
|
$ |
(328,277 |
) |
|
$ |
(9 |
) |
|
$ |
515,925 |
|
Exercise of Common Stock options |
|
163,228 |
|
|
|
— |
|
|
180 |
|
|
|
— |
|
|
|
— |
|
|
|
180 |
|
Vesting of restricted Common Stock |
|
56,015 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Vesting of restricted stock units |
|
15,265 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Repurchase of shares for employee tax withholdings |
|
(2,241 |
) |
|
|
— |
|
|
(54 |
) |
|
|
— |
|
|
|
— |
|
|
|
(54 |
) |
Issuance of Common Stock for acquisitions |
|
5,036,142 |
|
|
|
— |
|
|
159,847 |
|
|
|
— |
|
|
|
— |
|
|
|
159,847 |
|
Stock-based compensation expense |
|
— |
|
|
|
— |
|
|
2,217 |
|
|
|
— |
|
|
|
— |
|
|
|
2,217 |
|
Vesting of Trine Founder shares |
|
1,850,938 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Exercise of warrants |
|
20,690,975 |
|
|
|
2 |
|
|
320,567 |
|
|
|
— |
|
|
|
— |
|
|
|
320,569 |
|
Net loss |
|
— |
|
|
|
— |
|
|
— |
|
|
|
(59,108 |
) |
|
|
— |
|
|
|
(59,108 |
) |
Other comprehensive income (loss) |
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(12 |
) |
|
|
(12 |
) |
BALANCE—March 31, 2021 |
|
252,436,919 |
|
|
$ |
25 |
|
$ |
1,326,945 |
|
|
$ |
(387,385 |
) |
|
$ |
(21 |
) |
|
$ |
939,564 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated |
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
|
||||||
|
|
Legacy Convertible |
|
|
Common Stock |
|
Additional |
|
|
|
|
Comprehensive |
|
Total |
||||||||||||||
|
|
Preferred Stock |
|
|
Voting |
|
Paid-in |
|
Accumulated |
|
(Loss) |
|
Stockholders’ |
|||||||||||||||
|
|
Shares |
|
Amount |
|
|
Shares |
|
Amount |
|
Capital |
|
Deficit |
|
Income |
|
Equity |
|||||||||||
BALANCE—January 1, 2020 |
|
100,038,109 |
|
|
$ |
436,533 |
|
|
|
26,813,113 |
|
$ |
3 |
|
$ |
16,722 |
|
$ |
(294,262 |
) |
|
$ |
75 |
|
|
$ |
(277,462 |
) |
Retroactive application of recapitalization |
|
(100,038,109 |
) |
|
|
(436,533 |
) |
|
|
128,100,821 |
|
|
13 |
|
|
436,520 |
|
|
— |
|
|
|
— |
|
|
|
436,533 |
|
Adjusted balance, beginning of period |
|
— |
|
|
|
— |
|
|
|
154,913,934 |
|
|
16 |
|
|
453,242 |
|
|
(294,262 |
) |
|
|
75 |
|
|
|
159,071 |
|
Exercise of Common Stock options |
|
— |
|
|
|
— |
|
|
|
286,636 |
|
|
— |
|
|
132 |
|
|
— |
|
|
|
— |
|
|
|
132 |
|
Vesting of restricted Common Stock |
|
— |
|
|
|
— |
|
|
|
1,750,555 |
|
|
— |
|
|
2 |
|
|
— |
|
|
|
— |
|
|
|
2 |
|
Stock-based compensation expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
1,259 |
|
|
— |
|
|
|
— |
|
|
|
1,259 |
|
Common Stock warrants issued |
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
124 |
|
|
— |
|
|
|
— |
|
|
|
124 |
|
Net loss |
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
(21,804 |
) |
|
|
— |
|
|
|
(21,804 |
) |
Other comprehensive income (loss) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
(159 |
) |
|
|
(159 |
) |
BALANCE—March 31, 2020 |
|
— |
|
|
$ |
— |
|
|
|
156,951,125 |
|
$ |
16 |
|
$ |
454,759 |
|
$ |
(316,066 |
) |
|
$ |
(84 |
) |
|
$ |
138,625 |
|
DESKTOP METAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands) |
||||||||
|
|
|
|
|
|
|
||
|
|
Three Months Ended March 31, |
||||||
|
|
2021 |
|
2020 |
||||
Cash flows from operating activities: |
|
|
|
|
|
|
||
Net loss |
|
$ |
(59,108 |
) |
|
$ |
(21,804 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
3,892 |
|
|
|
2,321 |
|
Stock-based compensation |
|
|
2,217 |
|
|
|
1,259 |
|
Change in fair value of warrant liability |
|
|
56,576 |
|
|
|
— |
|
Expense related to Common Stock warrants issued |
|
|
— |
|
|
|
124 |
|
Amortization (accretion) of discount on investments |
|
|
406 |
|
|
|
(22 |
) |
Amortization of debt financing cost |
|
|
4 |
|
|
|
4 |
|
Provision for bad debt |
|
|
72 |
|
|
|
— |
|
Net increase in accrued interest related to marketable securities |
|
|
(240 |
) |
|
|
(124 |
) |
Net unrealized (gain) loss on marketable securities |
|
|
(25 |
) |
|
|
— |
|
Deferred tax benefit |
|
|
(27,921 |
) |
|
|
— |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
(61 |
) |
|
|
752 |
|
Inventory |
|
|
(2,381 |
) |
|
|
(3,238 |
) |
Prepaid expenses and other current assets |
|
|
(4,276 |
) |
|
|
393 |
|
Other assets |
|
|
(30 |
) |
|
|
— |
|
Accounts payable |
|
|
(3,856 |
) |
|
|
(989 |
) |
Accrued expenses and other current liabilities |
|
|
(5,247 |
) |
|
|
(976 |
) |
Customer deposits |
|
|
(1,234 |
) |
|
|
285 |
|
Deferred revenue |
|
|
105 |
|
|
|
(339 |
) |
Change in right of use assets and lease liabilities, net |
|
|
(22 |
) |
|
|
(80 |
) |
Net cash used in operating activities |
|
|
(41,129 |
) |
|
|
(22,434 |
) |
Cash flows from investing activities: |
|
|
|
|
|
|
||
Purchases of property and equipment |
|
|
(262 |
) |
|
|
(1,004 |
) |
Purchase of marketable securities |
|
|
(92,386 |
) |
|
|
(17,616 |
) |
Proceeds from sales and maturities of marketable securities |
|
|
48,241 |
|
|
|
49,300 |
|
Cash paid for acquisition, net of cash acquired |
|
|
(137,646 |
) |
|
|
— |
|
Net cash (used in) provided by investing activities |
|
|
(182,053 |
) |
|
|
30,680 |
|
Cash flows from financing activities: |
|
|
|
|
|
|
||
Payment of issuance costs related to reverse recapitalization |
|
|
(1,239 |
) |
|
|
— |
|
Proceeds from the exercise of stock warrants |
|
|
158,308 |
|
|
|
— |
|
Payment of taxes related to net share settlement of upon vesting of restricted stock units |
|
|
(54 |
) |
|
|
— |
|
Proceeds from exercise of stock options |
|
|
180 |
|
|
|
132 |
|
Net cash provided by financing activities |
|
|
157,195 |
|
|
|
132 |
|
Net (decrease) increase in cash, cash equivalents, and restricted cash |
|
|
(65,987 |
) |
|
|
8,378 |
|
Effect of exchange rate changes |
|
|
26 |
|
|
|
— |
|
Cash and cash equivalents at beginning of period |
|
|
483,525 |
|
|
|
66,161 |
|
Restricted cash |
|
|
612 |
|
|
|
612 |
|
Cash, cash equivalents, and restricted cash at end of period |
|
$ |
418,176 |
|
|
$ |
75,151 |
|
|
|
|
|
|
|
|
||
Supplemental cash flow information: |
|
|
|
|
|
|
||
Interest paid |
|
$ |
73 |
|
|
$ |
107 |
|
|
|
|
|
|
|
|
||
Non-cash investing and financing activities: |
|
|
|
|
|
|
||
Net unrealized (gain) loss on investments |
|
$ |
(1 |
) |
|
$ |
159 |
|
Exercise of private placement warrants |
|
$ |
149,904 |
|
|
$ |
— |
|
Common Stock issued for acquisitions |
|
$ |
159,847 |
|
|
$ |
— |
|
Additions to right of use assets and lease liabilities |
|
$ |
364 |
|
|
$ |
— |
|
Purchase of property and equipment included in accounts payable |
|
$ |
50 |
|
|
$ |
— |
|
Receivable for warrants exercised |
|
$ |
12,357 |
|
|
$ |
— |
|
NON-GAAP FINANCIAL INFORMATION
This press release contains non-GAAP financial measures, including Non-GAAP gross margin, non-GAAP operating loss, non-GAAP net loss, EBITDA and Adjusted EBITDA.
- We define Non-GAAP gross margin as GAAP gross margin excluding the effect of stock-based compensation, amortization of acquired intangible assets, acquisition-related and other transactional charges included in general and administrative expenses and change in fair value of warrant liability
- We define Non-GAAP operating loss as GAAP operating loss excluding the effect of stock-based compensation, amortization of acquired intangible assets, acquisition-related and other transactional charges included in general and administrative expenses and change in fair value of warrant liability
- We define Non-GAAP net loss as GAAP net loss excluding the effect of stock-based compensation, amortization of acquired intangible assets, acquisition-related and other transactional charges included in general and administrative expenses and change in fair value of warrant liability
- We define EBITDA as GAAP net income (loss) excluding interest, income taxes and depreciation and amortization expense
- We define Adjusted EBITDA as EBITDA excluding stock based compensation, warrant expenses and transaction costs associated with acquisitions
In addition to Desktop Metal’s results determined in accordance with GAAP, Desktop Metal’s management uses this non-GAAP financial information to evaluate the Company’s ongoing operations and for internal planning and forecasting purposes. We believe that this non-GAAP financial information, when taken collectively, may be helpful to investors in assessing Desktop Metal’s operating performance.
We believe that the use of Non-GAAP gross margin, non-GAAP operating loss, non-GAAP net loss, EBITDA and Adjusted EBITDA provides an additional tool for investors to use in evaluating ongoing operating results and trends because it eliminates the effect of financing, capital expenditures, and non-cash expenses such as stock-based compensation and warrants, and provides investors with a means to compare Desktop Metal’s financial measures with those of comparable companies, which may present similar non-GAAP financial measures to investors. However, investors should be aware that when evaluating Non-GAAP gross margin, non-GAAP operating loss, non-GAAP net loss, EBITDA and Adjusted EBITDA, we may incur future expenses similar to those excluded when calculating these measures. In addition, our presentation of these measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. Our computation of these measures, may not be comparable to other similarly titled measures computed by other companies because not all companies calculate these measures in the same fashion.
Because of these limitations, Non-GAAP gross margin, non-GAAP operating loss, non-GAAP net loss, EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. We compensate for these limitations by relying primarily on our GAAP results and using Non-GAAP gross margin, non-GAAP operating loss, non-GAAP net loss, EBITDA and Adjusted EBITDA on a supplemental basis. Management uses, and investors should consider, our non-GAAP financial measures only in conjunction with our GAAP results.
Set forth below is a reconciliation of each Non-GAAP financial measure used in this press release to its most directly comparable GAAP financial measure.
DESKTOP METAL, INC. NON-GAAP RECONCILIATION TABLE (in thousands) |
||||||||
|
|
For the Three Months Ended |
||||||
|
|
March 31, |
||||||
(Dollars in thousands) |
|
2021 |
|
2020 |
||||
GAAP gross margin |
|
$ |
(587 |
) |
|
$ |
(2,819 |
) |
Stock-based compensation included in cost of sales |
|
|
117 |
|
|
|
100 |
|
Amortization of acquired intangible assets included in cost of sales |
|
|
1,091 |
|
|
|
— |
|
Non-GAAP gross margin |
|
$ |
621 |
|
|
$ |
(2,719 |
) |
|
|
|
|
|
|
|
||
GAAP operating loss |
|
$ |
(30,740 |
) |
|
$ |
(22,278 |
) |
Stock-based compensation |
|
|
2,217 |
|
|
|
1,259 |
|
Amortization of acquired intangible assets included in cost of sales |
|
|
1,091 |
|
|
|
— |
|
Amortization of acquired intangibles assets |
|
|
1,208 |
|
|
|
164 |
|
Acquisition-related and other transactional charges included in general and administrative expenses |
|
|
4,984 |
|
|
|
— |
|
Non-GAAP operating loss |
|
$ |
(21,240 |
) |
|
$ |
(20,855 |
) |
|
|
|
|
|
|
|
||
GAAP net loss |
|
$ |
(59,108 |
) |
|
$ |
(21,804 |
) |
Stock-based compensation |
|
|
2,217 |
|
|
|
1,259 |
|
Amortization of acquired intangible assets included in cost of sales |
|
|
1,091 |
|
|
|
— |
|
Amortization of acquired intangibles assets |
|
|
1,208 |
|
|
|
164 |
|
Acquisition-related and other transactional charges included in general and administrative expenses |
|
|
4,984 |
|
|
|
— |
|
Change in fair value of warrant liability |
|
|
56,576 |
|
|
|
— |
|
Non-GAAP net loss |
|
$ |
6,968 |
|
|
$ |
(20,381 |
) |
DESKTOP METAL, INC. ADJUSTED EBITDA RECONCILIATION TABLE (in thousands) |
||||||||
|
|
For the Three Months Ended |
||||||
|
|
March 31, |
||||||
(Dollars in thousands) |
|
2021 |
|
2020 |
||||
Net loss attributable to common stockholders |
|
$ |
(59,108 |
) |
|
$ |
(21,804 |
) |
Interest (income) expense, net |
|
|
(42 |
) |
|
|
(478 |
) |
Income tax benefit |
|
|
(27,920 |
) |
|
|
— |
|
Depreciation and amortization |
|
|
3,892 |
|
|
|
2,321 |
|
EBITDA |
|
|
(83,178 |
) |
|
|
(19,961 |
) |
Change in fair value of warrant liability |
|
|
56,576 |
|
|
|
— |
|
Stock compensation expense |
|
|
2,217 |
|
|
|
1,259 |
|
Warrant expense |
|
|
— |
|
|
|
139 |
|
Transaction costs associated with acquisitions |
|
|
4,984 |
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
(19,401 |
) |
|
$ |
(18,563 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20210517005875/en/
Contact:
Investor Relations
Jay Gentzkow
(781) 730-2110
jaygentzkow@desktopmetal.com
Press Contact
Lynda McKinney
(978) 224-1282
lyndamckinney@desktopmetal.com