Desktop Metal Inc (NYSE: DM) recently reported its fourth-quarter fiscal 2023 financial results, showcasing a revenue decline of 13.7% year-over-year to $52.30 million. Despite the decline, the company managed to beat the consensus estimate of $50.83 million.
The net loss for the quarter contracted to $(174.53) million, which included $110.5 million of goodwill impairment, compared to $(312.35) million in the previous year. Adjusted net loss also narrowed to $(10.9) million from $(24.01) million in the prior year.
One of the highlights of the report was the adjusted gross margin, which improved to 34.05% from 24.3% year-over-year, with a 21.1% increase to $17.81 million. Additionally, adjusted EBITDA loss contracted to $(9.19) million for the quarter, down from $(21.11) million a year ago.
The company’s adjusted EPS loss of $(0.03) exceeded the consensus estimate of $(0.05) loss. Furthermore, Desktop Metal’s net cash used in operating activities for the fiscal year was $(114.99) million, compared to $(181.53) million in the previous year. The company ended the quarter with cash, cash equivalents, and short-term investments totaling $84.7 million.
Ric Fulop, the founder and CEO of Desktop Metal, expressed optimism about the company’s future prospects. He highlighted the strong demand for production binder jet systems that produce metal, sand, and ceramic parts, as well as the increasing value of Additive Manufacturing 2.0 systems.
Looking ahead to 2024, Desktop Metal expects revenue in the range of $175 million to $215 million, compared to a consensus estimate of $194 million. The company also anticipates adjusted EBITDA of $(30) million to $(10) million.
Following the earnings report, DM shares surged by 19.6% to $0.7369 on Friday. Despite the tough market conditions, Fulop remains confident in the company’s ability to drive towards profitability and achieve its long-term goals.
In conclusion, Desktop Metal’s latest financial results demonstrate resilience and a strategic focus on growth and profitability in the additive manufacturing industry. Investors and stakeholders can look forward to the company’s continued progress and development in the coming year.
