Q2 2024 Desktop Metal Inc Earnings Call Transcript
Key Points
- Desktop Metal Inc (DM) has reduced non-GAAP operating expenses by 48% since Q1 2022.
- The company has delivered nine consecutive quarters of operating expense reduction.
- Non-GAAP gross margins have been meaningfully strengthened.
- The proposed merger with Nano Dimension offers a 27% premium and is expected to create a leader in the Additive Manufacturing space.
- The merger is anticipated to accelerate the industry's transition into mass production and create a well-capitalized company with a stronger financial profile.
- Desktop Metal Inc (DM) faced a challenging business environment due to rising interest rates and slowing CapEx budgets.
- The company's balance sheet has been under pressure, limiting its ability to invest in growth and innovation.
- Customers have become hesitant to engage in closing deals due to the company's weakening financial outlook.
- Consolidated revenue for Q2 2024 was $38.9 million, a significant decline from $53.3 million in Q2 2023.
- Non-GAAP gross margins fell to 29.2% in Q2 2024 from 31% in the prior year period, driven by weaker cost absorption on lower revenue.
Greetings, and welcome to Desktop Metal Second Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded.
I will now turn over the call.
Good morning, and thank you for joining today's call. With me today are Ric Fulop, Founder and CEO of Desktop Metal; and Jason Cole, CFO of Desktop Metal.
Please note, our financial results press release and presentation slides referred to on this call are available under the Events & Presentations section of our Investor Relations website. This call is also being webcast live with a link at the same site.
The webcast and accompanying slides will be available for replay for 12 months following the call. The content of today's call is the property of Desktop Metal. It cannot be reproduced or transcribed without our prior consent.
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