In spite of often dire predictions on their long-term financial sustainability and a very low current stock valuation, AM companies are generally in good health as confirmed by the Desktop Metal FY 2022 results. The company led by Ric Fulop recorded revenue of $209 million and grew by 86% compared to 2021.
The negativity surrounding the AM industry is mostly associated with the exaggerated valuation that some companies were given when they recently went public (mostly via SPAC mergers). While current stock prices reflect this discrepancy, the underlying business of most companies appears sound, with growing revenues and generally decreasing losses or even profits.
On top of record FY 2022 revenues, Desktop Metal also closed a record fourth quarter with revenue of $60.6 million, up 6.8% from the fourth quarter of 2021. The company confirmed that cost reduction initiatives are on track to deliver $100 million in aggregate, annualized cost savings in 2023, prioritizing the path to profitability. In light of this, Desktop Metal’s full-year 2023 revenue guidance is now between $210 and $260 million
Desktop Metal delivered record revenue for fourth quarter and full year 2022, fueled by our differentiated portfolio of AM 2.0 mass production solutions, our strong market position, and the team’s solid execution amidst an unsteady macro environment Ric Fulop, Founder and CEO of Desktop Metal
“Desktop Metal delivered record revenue for fourth quarter and full year 2022, fueled by our differentiated portfolio of AM 2.0 mass production solutions, our strong market position, and the team’s solid execution amidst an unsteady macro environment,” said Ric Fulop, Founder and CEO of Desktop Metal. “We also took actions to streamline the business and expanded our cost reduction plans to $100 million in annualized cost savings to prioritize our path to profitability and position the business for long-term growth. As a result, we enter 2023 a stronger, more resilient company focused on driving another year of revenue growth at scale, delivering on our cost reduction measures, and dramatically improving adjusted EBITDA and cash flow, in order to capitalize on the next stage of secular growth in the additive manufacturing market.”
The company thus continued and expanded the cost reduction plan introduced in 2022 to add an additional $50 million in annualized savings after successfully completing $50 million in annualized savings in 2022. Among other highlights, Desktop Metal formed a strategic collaboration with Align Technology to accelerate the adoption of digital dentistry in the $30 billion annual dental parts market. Align’s market-leading iTero intraoral scanners will be offered as a seamless managed service to dentists in a subscription model with recurring revenue, enabling a gateway for a connected suite of digital dentistry solutions with a workflow backed by Desktop Labs’ experienced network of digitized dental laboratories and premium Desktop Health 3D printers and materials.
During FY 2022 Desktop Metal also finally commenced shipments of Production System P-50 including continued traction with automotive, industrial, and other major end markets. The company recently signed a master supply agreement with one of the largest consumer electronics companies in the world. Working on technologies acquired via the ETEC merger, Desktop Metal launched the all-new S-Max Flex for affordable and scalable digital sand casting, leveraging Single Pass Jetting technology (a combination of Viridis and Desktop Metal capabilities) and unveiled FreeFoam, a revolutionary, expandable 3D printable resin designed for volume production of foam parts.
Overall installations of additive manufacturing systems for metal parts (including Desktop Metal’s bound metal and binder jetting systems, as well as ExOne’s binder jetting systems) surpassed 1,100 units including some of the largest production deployments in additive manufacturing. Overall not a bad performance at all.