Desktop Metal Announces Third Quarter 2022 Financial Results

NON-GAAP FINANCIAL INFORMATION

This press release contains non-GAAP financial measures, including non-GAAP gross margin, non-GAAP operating loss, non-GAAP net loss, non-GAAP operating expense, EBITDA and Adjusted EBITDA.

  • We define non-GAAP gross margin as GAAP gross margin excluding the effect of stock-based compensation, amortization of acquired intangible assets, restructuring expenses, acquisition-related and other transactional charges, and inventory step-up adjustments
  • We define non-GAAP operating loss as GAAP operating loss excluding the effect of stock-based compensation, amortization of acquired intangible assets, restructuring expenses, acquisition-related and other transactional charges, inventory step-up adjustments, in-process research and development assets acquired and goodwill impairment
  • We define non-GAAP net loss as GAAP net loss excluding the effect of stock-based compensation, amortization of acquired intangible assets, restructuring expense, inventory step-up adjustments, acquisition-related and other transactional charges, in-process research and development assets acquired, goodwill impairment, change in fair value of investments and change in fair value of warrant liability
  • We define non-GAAP operating expense as GAAP operating expense excluding the effect of stock-based compensation, amortization of acquired intangible assets, restructuring expense, acquisition-related and other transactional charges, in-process research and development assets acquired and goodwill impairment
  • We define EBITDA as GAAP net income (loss) excluding interest, income taxes and depreciation and amortization expense
  • We define Adjusted EBITDA as EBITDA excluding stock-based compensation, restructuring expense, change in fair value of warrant liability, change in fair value of investments, inventory step-up adjustments, goodwill impairment, and acquisition-related and other transactional charges

In addition to Desktop Metal’s results determined in accordance with GAAP, Desktop Metal’s management uses this non-GAAP financial information to evaluate the Company’s ongoing operations and for internal planning and forecasting purposes. We believe that this non-GAAP financial information, when taken collectively, may be helpful to investors in assessing Desktop Metal’s operating performance.

We believe that the use of non-GAAP gross margin, non-GAAP operating loss, non-GAAP net loss, non-GAAP operating expense, EBITDA and Adjusted EBITDA provides an additional tool for investors to use in evaluating ongoing operating results and trends because it eliminates the effect of financing, capital expenditures, and non-cash expenses such as stock-based compensation and warrants, and provides investors with a means to compare Desktop Metal’s financial measures with those of comparable companies, which may present similar non-GAAP financial measures to investors. However, investors should be aware that when evaluating non-GAAP gross margin, non-GAAP operating loss, non-GAAP net loss, non-GAAP operating expense, EBITDA and Adjusted EBITDA, we may incur future expenses similar to those excluded when calculating these measures. In addition, our presentation of these measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. Our computation of these measures may not be comparable to other similarly titled measures computed by other companies because not all companies calculate these measures in the same fashion.

Because of these limitations, non-GAAP gross margin, non-GAAP operating loss, non-GAAP net loss, non-GAAP operating expense, EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. We compensate for these limitations by relying primarily on our GAAP results and using non-GAAP gross margin, non-GAAP operating loss, non-GAAP net loss, non-GAAP operating expense, EBITDA and Adjusted EBITDA on a supplemental basis. Management uses, and investors should consider, our non-GAAP financial measures only in conjunction with our GAAP results. Desktop Metal has not provided a reconciliation of its Adjusted EBITDA outlook to net income because estimates of all of the reconciling items cannot be provided without unreasonable efforts.

Set forth below is a reconciliation of each Non-GAAP financial measure used in this press release to its most directly comparable GAAP financial measure.

DESKTOP METAL, INC.

NON-GAAP RECONCILIATION TABLE

(in thousands)

 

 

 

For the Three Months Ended

 

For the Nine Months Ended

 

 

September 30,

 

September 30,

(Dollars in thousands)

 

2022

 

2021

 

2022

 

2021

GAAP gross margin

 

$

(309

)

 

$

3,955

 

 

$

6,760

 

 

$

5,740

 

Stock-based compensation included in cost of sales(1)

 

 

734

 

 

 

341

 

 

 

1,892

 

 

 

586

 

Amortization of acquired intangible assets included in cost of sales

 

 

5,877

 

 

 

2,515

 

 

 

17,817

 

 

 

5,841

 

Restructuring expense in cost of sales

 

 

3,085

 

 

 

 

 

 

3,126

 

 

 

 

Acquisition-related and other transactional charges included in cost of sales

 

 

 

 

 

 

 

 

1,148

 

 

 

 

Inventory step-up adjustment in cost of sales

 

 

 

 

 

 

 

 

1,496

 

 

 

 

Non-GAAP gross margin

 

$

9,387

 

 

$

6,811

 

 

$

32,239

 

 

$

12,167

 

 

 

 

 

 

 

 

 

 

GAAP operating loss

 

$

(57,819

)

 

$

(63,594

)

 

$

(419,868

)

 

$

(142,049

)

Stock-based compensation (2),(3)

 

 

12,040

 

 

 

9,951

 

 

 

41,170

 

 

 

16,167

 

Amortization of acquired intangible assets

 

 

9,069

 

 

 

4,604

 

 

 

28,522

 

 

 

11,172

 

Restructuring expense

 

 

3,085

 

 

 

 

 

 

5,086

 

 

 

 

Inventory step-up adjustment in cost of sales

 

 

 

 

 

 

 

 

1,496

 

 

 

 

Acquisition-related and other transactional charges

 

 

1,476

 

 

 

5,675

 

 

 

6,633

 

 

 

13,786

 

In-process research and development assets acquired

 

 

 

 

 

15,181

 

 

 

 

 

 

25,581

 

Goodwill impairment

 

 

 

 

 

 

 

 

229,500

 

 

 

 

Non-GAAP operating loss

 

$

(32,149

)

 

$

(28,183

)

 

$

(107,461

)

 

$

(75,343

)

 

 

 

 

 

 

 

 

 

GAAP net loss

 

$

(60,774

)

 

$

(66,879

)

 

$

(427,990

)

 

$

(169,167

)

Stock-based compensation (2),(3)

 

 

12,040

 

 

 

9,951

 

 

 

41,170

 

 

 

16,167

 

Amortization of acquired intangible assets

 

 

9,069

 

 

 

4,604

 

 

 

28,522

 

 

 

11,172

 

Restructuring expense

 

 

3,085

 

 

 

 

 

 

5,469

 

 

 

 

Inventory step-up adjustment in cost of sales

 

 

 

 

 

 

 

 

1,496

 

 

 

 

Acquisition-related and other transactional charges

 

 

1,476

 

 

 

5,675

 

 

 

6,633

 

 

 

13,786

 

In-process research and development assets acquired

 

 

 

 

 

15,181

 

 

 

 

 

 

25,581

 

Goodwill impairment

 

 

 

 

 

 

 

 

229,500

 

 

 

 

Change in fair value of investments

 

 

2,052

 

 

 

4,204

 

 

 

8,493

 

 

 

4,186

 

Change in fair value of warrant liability

 

 

 

 

 

 

 

 

 

 

 

56,576

 

Non-GAAP net loss

 

$

(33,052

)

 

$

(27,264

)

 

$

(106,707

)

 

$

(41,699

)


« Previous Page 1 | 2 | 3 | 4 | 5  Next Page »



© 2024 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us
ShareCG™ is a trademark of Internet Business Systems, Inc.

Report a Bug Report Abuse Make a Suggestion About Privacy Policy Contact Us User Agreement Advertise