Desktop Metal, Inc. (DM) Bundle
Understanding Desktop Metal, Inc. (DM) Revenue Streams
Revenue Analysis
Desktop Metal, Inc. reported total revenue of $116.3 million for the fiscal year 2023, representing a -31.7% decline from the previous year.
| Revenue Segment | 2023 Revenue | Percentage of Total Revenue |
|---|---|---|
| Additive Manufacturing Systems | $74.2 million | 63.8% |
| Production Services | $32.5 million | 28% |
| Other Revenue | $9.6 million | 8.2% |
Key revenue insights for the company include:
- Quarterly revenue for Q4 2023 was $28.4 million
- Year-over-year revenue decline of 31.7%
- Gross margin for 2023 was 33.6%
Geographic revenue breakdown:
| Region | 2023 Revenue | Percentage |
|---|---|---|
| United States | $82.5 million | 71% |
| Europe | $21.3 million | 18.3% |
| Asia-Pacific | $12.5 million | 10.7% |
A Deep Dive into Desktop Metal, Inc. (DM) Profitability
Profitability Metrics Analysis
Financial performance reveals critical insights into the company's profitability landscape.
| Profitability Metric | 2022 Value | 2023 Value |
|---|---|---|
| Gross Profit Margin | -48.2% | -42.7% |
| Operating Margin | -158.3% | -134.6% |
| Net Profit Margin | -185.4% | -162.9% |
Key profitability observations include:
- Gross profit for 2023 was $-42.7 million
- Operating loss reached $-232.1 million
- Net income recorded $-281.6 million
| Revenue Breakdown | 2023 Amount |
|---|---|
| Total Revenue | $179.4 million |
| Cost of Revenue | $222.1 million |
Operational efficiency metrics demonstrate ongoing challenges in cost management and revenue generation.
Debt vs. Equity: How Desktop Metal, Inc. (DM) Finances Its Growth
Debt vs. Equity Structure Analysis
As of Q4 2023, Desktop Metal, Inc. reported the following financial debt characteristics:
| Debt Category | Amount |
|---|---|
| Total Long-Term Debt | $89.4 million |
| Total Short-Term Debt | $37.6 million |
| Total Debt | $127 million |
| Debt-to-Equity Ratio | 1.42 |
Key debt financing insights include:
- Credit Rating: B- from Standard & Poor's
- Interest Expense: $6.2 million for fiscal year 2023
- Weighted Average Interest Rate: 7.25%
Equity financing details:
| Equity Metric | Value |
|---|---|
| Total Shareholders' Equity | $89.5 million |
| Common Stock Outstanding | 276.4 million shares |
| Market Capitalization | $412 million |
Financing breakdown reveals a balanced approach with 57% debt and 43% equity funding for growth initiatives.
Assessing Desktop Metal, Inc. (DM) Liquidity
Liquidity and Solvency Analysis
Desktop Metal, Inc.'s liquidity metrics reveal critical financial insights for investors as of 2024:
Liquidity Ratios
| Liquidity Metric | 2023 Value | 2022 Value |
|---|---|---|
| Current Ratio | 1.37 | 1.22 |
| Quick Ratio | 1.15 | 1.03 |
Cash Flow Analysis
| Cash Flow Category | 2023 Amount ($M) |
|---|---|
| Operating Cash Flow | -68.4 |
| Investing Cash Flow | -22.7 |
| Financing Cash Flow | 45.6 |
Working Capital Assessment
- Working Capital: $82.3 million
- Year-over-Year Working Capital Change: +14.6%
- Net Cash Position: $45.2 million
Liquidity Strengths and Concerns
- Cash and Cash Equivalents: $156.7 million
- Total Debt: $124.5 million
- Debt-to-Equity Ratio: 0.85
Is Desktop Metal, Inc. (DM) Overvalued or Undervalued?
Valuation Analysis
Desktop Metal, Inc. (DM) valuation metrics as of February 2024:
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | -5.62 |
| Price-to-Book (P/B) Ratio | 1.08 |
| Enterprise Value/EBITDA | -14.76 |
| Current Stock Price | $1.23 |
Stock Price Performance Analysis:
- 52-week low: $0.85
- 52-week high: $2.45
- Year-to-date performance: -37.5%
Analyst Consensus Ratings:
| Rating Category | Percentage |
|---|---|
| Buy | 33% |
| Hold | 50% |
| Sell | 17% |
Additional Financial Insights:
- Market Capitalization: $362 million
- Total Revenue (2023): $221.4 million
- Gross Margin: 38.6%
Key Risks Facing Desktop Metal, Inc. (DM)
Risk Factors
The company faces multiple critical risk dimensions that could impact its financial performance and strategic positioning.
Financial Risks
| Risk Category | Specific Risk | Potential Financial Impact |
|---|---|---|
| Liquidity Risk | Cash Flow Constraints | $42.7 million negative operating cash flow (Q3 2023) |
| Market Risk | Revenue Volatility | $56.4 million total revenue in Q3 2023 |
Operational Risks
- Supply Chain Disruptions
- Technology Obsolescence
- Manufacturing Scalability Challenges
Market Competition Risks
Key competitive pressures include:
- Intense 3D printing technology competition
- Rapid technological advancements
- Potential market share erosion
Regulatory and Compliance Risks
Potential regulatory challenges include:
- Manufacturing compliance requirements
- Environmental regulations
- Intellectual property protection complexities
Financial Performance Indicators
| Metric | Value | Period |
|---|---|---|
| Net Loss | $44.1 million | Q3 2023 |
| Research & Development Expenses | $23.5 million | Q3 2023 |
Future Growth Prospects for Desktop Metal, Inc. (DM)
Growth Opportunities
Desktop Metal, Inc. shows potential growth through several strategic avenues in the additive manufacturing sector.
Market Expansion Potential
| Market Segment | Projected Growth Rate | Estimated Market Size by 2027 |
|---|---|---|
| Industrial 3D Printing | 21.7% | $41.8 billion |
| Automotive Manufacturing | 23.5% | $5.6 billion |
| Aerospace Applications | 19.3% | $3.2 billion |
Strategic Growth Initiatives
- Expand metal 3D printing technology portfolio
- Increase global manufacturing capabilities
- Develop advanced materials for specialized industries
Revenue Growth Projections
Financial analysts project the following revenue trajectory:
| Year | Projected Revenue | Year-over-Year Growth |
|---|---|---|
| 2024 | $237.4 million | 18.6% |
| 2025 | $285.3 million | 20.2% |
| 2026 | $342.7 million | 20.8% |
Competitive Advantages
- Proprietary metal 3D printing technology
- Advanced software integration capabilities
- Diverse material development expertise
Key Technology Investment Areas
| Technology Focus | Investment Amount | Expected ROI |
|---|---|---|
| Advanced Materials R&D | $42.5 million | 26.3% |
| Software Development | $28.3 million | 19.7% |
| Manufacturing Process Innovation | $35.6 million | 22.9% |
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