3D printing financial results: Desktop Metal revenue up 35% from last quarter, losses remain high – 3DPrint.com

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Desktop Metal (NYSE: DM) released a report on mixed first quarter results for 2021, with revenue up 234% year-on-year and 35% quarterly to $ 11.3 million, mainly due to the acquisition of EnvisionTEC and an increase in shipments of metal products. . However, the Massachusetts 3D printer maker is faring worse than expected: net losses of $ 59.1 million or 25 cents per share, falling $ 30 million from Wall Street estimates. According to the company’s management team, the heavy losses were a direct result of increased general and administrative costs of Desktop’s IPO in December 2020 and investments in its core business.

Shares of the 3D printing company fell 11% the day after quarterly results were announced at market close on May 17, 2021. Later in the day, the stock rebounded, likely on the back of reinsurance of the company, saying it added more customers in the first quarter of 2021 than all of 2020 combined and expecting to generate more than $ 100 million for the full year. The encouraging forecasts, coupled with the announcement of its latest acquisition of elastomeric resin manufacturer Adaptive3D, were enough to calm investors.

Desktop Metal went public on December 10, 2020. To honor the occasion, co-founder and CEO Ric Fulop rings the opening bell. Image courtesy of NYSE.

This is the 3D printing company’s second quarterly report following its IPO through a reverse merger deal with a Special Purpose Acquisition Company (SPAC). Since then, Desktop has actively engaged new customers, growing its workforce from 180 employees to over 470 and taking advantage of additive technologies and materials. The company claims to have increased adoption by large-scale customers in government, academia and dozens of industries, including big names like Delta Airlines, Mayo Clinic, Amazon, Cartier and Harvard University.

Among the broad spectrum of customer segments, Desktop particularly enjoyed continued strong momentum in the dental industry, with first quarter dental shipments up 64% year-over-year and strong demand for D4K printing platforms. Pro and Envision One. With its new healthcare business, Desktop Health, the key is to capture a portion of the dental market, leading with the launch of its first major product line to create 3D printed dentures and dentures. Called Flexcera, the line has already received FDA 510 (k) clearance for one of its proprietary resins used in the 3D manufacturing of high-quality dentures and has started marketing it.

Desktop Health’s FDA Approved Flexcera Base, a proprietary resin for use in the 3D fabrication of high quality dentures. Image courtesy of Business Wire.

During the earnings call, Fulop said “we plan to accelerate the timeline we released last year, when we went public, and try to reach $ 1 billion within a timeframe. faster than our original goal. So everything we’re doing is aimed at having a double-digit share of this $ 1,406 billion (3D printing) market by the end of the decade, whether that’s a deal we would pursue. on the print engine side, on the vertical integration side in the hardware side, or in a particular technology or advanced parts company that we may acquire.

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Focused on the development of systems and processes allowing a volume and profitable production of end-use parts with additive, Desktop continued its innovation efforts in its core business and strengthened its product portfolio by acquiring new companies. and expanding its offerings. During the first quarter of 2021, it expanded its materials portfolio to more than 225 products, introduced the Forust process for printing wood from waste, launched its first major product line for dental applications and started shipping two new photopolymer printers across the area of ​​its EnvisionTEC acquisition.

Forust technology allows Desktop Metal to recover wood waste and re-materialize it into new products. Image courtesy of Desktop Metal.

One of the most relevant highlights of the report was the announcement of the company’s latest acquisition of Adaptive3D, a startup that began as a Defense Advanced Research Projects Agency (DARPA) program funded by the army and which is now a leader in the category of printable elastomers and rubber. materials. During the company’s earnings call, Desktop Metal CEO and Founder Ric Fulop said the buyout gives them exclusive access to a new class of polymers that are not only printable, but offer elastomeric properties that allow applications such as digital forms through a micro-architectured design. Desktop hopes to combine the elastomeric capabilities of Adaptive3D with EnvisionTEC’s production-grade Xtreme 8K DLP 3D printer to accelerate high-volume creations.

Desktop Metal CFO James Haley said the 3D printing company not only reiterates its expectations of generating more than $ 100 million in revenue for the full year, but also expects sequential quarterly growth throughout 2021 and forecasts an annual execution rate of $ 160 million. Haley identified a sequential acceleration in the second half of the year to coincide with additional product launches, the shipment of the P-50 single-jet (SPJ) systems, the integration of recent acquisitions and the capitalization of its expanded portfolio of hardware capabilities.


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