Desktop Metal Inc (NYSE:DM) reported a fourth-quarter fiscal 2023 revenue decline of 13.7% year-over-year to $52.30 million, beating the consensus of $50.83 million.
Desktop Metal's net loss contracted to $(174.53) million, including $110.5 million of goodwill impairment, from $(312.35) million a year ago. Adjusted net loss narrowed to $(10.9) million from $(24.01) million prior year.
The company's adjusted gross margin was 34.05%, up from 24.3% YoY, with a 21.1% increase to $17.81 million.
Adjusted EBITDA loss contracted to $(9.19) million for the quarter, from $(21.11) million a year ago.
Adjusted EPS loss of $(0.03) topped the consensus of $(0.05) loss.
Desktop Metal's net cash used in operating activities for the fiscal year was $(114.99) million, compared to $(181.53) million last year.
Desktop Metal held cash, cash equivalents, and short-term investments of $84.7 million at the end of the quarter.
Ric Fulop, founder and CEO of Desktop Metal, stated that DM continues to see strong demand for production binder jet systems that produce metal, sand, and ceramic parts, and there is increasing evidence of the value of Additive Manufacturing 2.0 systems.
"While we didn't make our internal target of A-EBITDA positive by the end of the year, as some customer projects rolled into 2024, we are now very, very close to that goal," Fulop continued.
"We now enter the year with a lower cost structure that makes us resilient for the long term. The hard work will continue as we drive toward profitability, a goal that is clearly within sight despite the tough market conditions."
2024 Outlook: Desktop Metal expects 2024 revenue of $175 million-$215 million versus $194 million consensus; sees adjusted EBITDA of $(30) million – $(10) million.
Price Action: DM shares are trading higher by 19.6% at $0.7369 on Friday.
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