Desktop Metal GAAP EPS of -$0.92 misses by $0.11, revenue of $112.4M beats by $9.21M

• Desktop Metal press release (NYSE:DM): FY GAAP EPS of -$0.92 misses by $0.11.
• Revenue of $112.4M (+582.5% Y/Y) beats by $9.21M.
• Adjusted EBITDA of -$96.1M
• Revenue excluding ExOne of $96.9 million, up 488% from 2020
• GAAP gross margin of 16%; non-GAAP gross margin of 27%
• Strong ending liquidity position with cash, cash equivalents, and short-term investments of $271.7 million as of December 31, 2021
• Shares +10.17% PM.

• Outlook for Full Year 2022:Revenue expectation of approximately $260 million vs consensus of $253.52M for 2022, representing 131% growth from 2021. Adjusted EBITDA expectation of approximately $(90) million for 2022

Comments

[SecretUser]

Wowwww… so DM trades at ~4x NTM revenue, with increasing margins and +100% growth… vs say SHOP at double the multiple and half the revenue, and everyone in that name screaming it’s cheap.

This is just overlooked since it’s a SPAC, but it’s clear the additive manufacturing tailwind is huge, particularly as the west realizes there are significant consequences of putting our raw material and supply chain in the hands of Russia/China. 10yr trade easyz

Why merge with MKFG? DM recognizes the future is in additive, printing products en masse as a cheaper alternative than an outsourced model for products currently being made in China.

Take Stanley Black and Decker, what’s better - continuing to produce offshore at China where the manufacturer just replicated and sends white label product directly to Amazon. Or own your IP, produce your mass tools here in the US

[Lawrence Dickman]

Ok now MKFG and DM can merge

[Brandond]

$155M in cash burned in operations yet still over $1B market cap. Going lower and reverse split a near certainty.

[bluescorpion0]

@Brandond not if inflation skyrockets above 10%

[fcbergeron]

@scorpionblue
First: The CEO was adamant in the prior earning's call that a reverse split offers nothing so that it is not happening anytime soon! He used the analogy that it is simply splitting a $1 for 4 quarters and he is right!

Two: We are far from being under $1 for 12 months consecutive (including a 6 month extension) so no need to split at all...

[str8_chuter]

@Brandond

Correct.

Margins in the teens means they're practically giving these machines away. No company can survive long in a cutthroat industry like 3D printing with those margins.

Balance sheet still a hot mess with goodwill accounting for 46% of total assets. Will run out of cash in a year or so. Financing announcement coming at some point. Further dilution or high-cost debt ahead, pick your poison.