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Fathom reports 17.9% YoY decrease in Q2 2023 revenue (H1 at -16%)

The outsourced production service provider reported sales for 34.5 million in Q2 and 69.5 million in H1

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Fathom Digital Manufacturing‘s revenue for Q2 2023 totaled $34.5 million, a 17.9% decrease compared to the same period in 2022. H1 revenue, for the six months that ended in June 2023, totaled 69.5%, a 15.8% decrease compared to the same period during the previous year.

Revenue for the second quarter of 2023 was $34.5 million compared to $42.0 million in the second quarter of 2022, due to lower production volumes driven by the softer macroeconomic environment, primarily impacting Fathom’s production precision sheet metal product line. The company’s stock price is near its all-time low but seems to be trending upward in recent weeks.

Fathom reports 17.9% YoY decrease in Q2 2023 revenue and sales for 34.5 million in Q2 and 69.5 million in H1 “Fathom’s results for the second quarter were consistent with our expectations as we continue to realize cost savings from our previously announced optimization plan, partially offsetting the impact of a challenging macro environment,” said Ryan Martin, Fathom Chief Executive Officer. “During the quarter, we grew order volumes by approximately 10% on a sequential basis, increasing our backlog, and improved sequentially our Adjusted EBITDA and Adjusted EBITDA margin by 17.5% and 230 basis points, respectively. Our focus remains on fully leveraging our comprehensive capabilities to meet the high-mix, low-to-mid volume production needs of enterprise-level customers and driving profitable, long-term growth.”

Fathom Digital Manufacturing’s gross profit for the Q2 2023 totaled $10.5 million, or 30.6% of revenue, compared to $15.5 million, or 37.0% of revenue, in the second quarter of 2022. Gross profit for the six months ended June 30, 2023 was $22.5 million, or 32.4% of revenue, compared to $27.5 million, or 33.4% of revenue, which includes approximately $3.2 million in non-cash purchase accounting adjustments, for the same period in 2022.

Net loss for Q2 2023 at Fathom was $(7.3) million compared to net income of $34.3 million in the second quarter of 2022. Excluding the revaluation of Fathom warrants and earnout shares, stock compensation expense, optimization plan expenses, and other costs, Fathom reported an adjusted net loss in the second quarter of 2023 totaling $(5.7) million compared to adjusted net income of $1.5 million for the same period in 2022.

Net loss for the six months ended June 30, 2023 was $(8.6) million compared to net income of $53.3 million for the same period in 2022. For the six months ended June 30, 2023, the adjusted net loss was $(11.2) million compared to adjusted net income of $0.7 million for the same period in 2022.

Adjusted EBITDA for the second quarter of 2023 totaled $4.8 million versus $9.0 million for the same period in 2022 primarily due to lower volume leverage, partially offset by cost savings from the execution of Fathom’s optimization plan. The Adjusted EBITDA margin in the quarter was 14.0% compared to 21.4% in the second quarter of 2022.

For the six months ended June 30, 2023, Adjusted EBITDA and Adjusted EBITDA margin were $8.9 million and 12.8%, respectively, compared to $14.8 million and 18.0%, respectively, for the same period in 2022.

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Davide Sher

Since 2002, Davide has built up extensive experience as a technology journalist, market analyst and consultant for the additive manufacturing industry. Born in Milan, Italy, he spent 12 years in the United States, where he completed his studies at SUNY USB. As a journalist covering the tech and videogame industry for over 10 years, he began covering the AM industry in 2013, first as an international journalist and subsequently as a market analyst, focusing on the additive manufacturing industry and relative vertical markets. In 2016 he co-founded London-based VoxelMatters. Today the company publishes the leading news and insights websites VoxelMatters.com and Replicatore.it, as well as VoxelMatters Directory, the largest global directory of companies in the additive manufacturing industry.

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