Desktop Metal, Inc.

Consolidated revenue for Q2 2024 was $38.9 million, versus $53.3 million in Q2 2023. Non-GAAP gross margin was 29.2%, compared with 31.0% a year ago and 30.5% in Q1 2024. Non-GAAP operating expenses were $27.0 million, down $7.7 million year over year and $1.6 million sequentially. Adjusted EBITDA was negative $13.2 million, improving by $1.8 million year over year. Desktop Metal ended Q2 with $46.7 million in cash, and it said it is no longer providing guidance for the rest of 2024 due to the pending Nano Dimension acquisition.

Ric Fulop framed the quarter around the strategic rationale for the proposed Nano Dimension merger, saying the business had been under pressure from rising rates, weak capital spending, and a constrained balance sheet. He said customer hesitation to close large deals because of Desktop Metal’s financial outlook became more pronounced near the end of Q2, making an independent path less viable. His tone was urgent but pragmatic, repeatedly emphasizing that the deal was the best available option to protect shareholder value and support customers.

Jason Cole kept his remarks brief and focused on the financials, noting roughly $150 million in annualized cost savings since the beginning of 2022. He said Q2 revenue weakness reflected customer concerns about the balance sheet, while Q2 cash burn was elevated partly because of deal-related spending and higher legal and transaction costs from conversations with multiple potential partners. He also pointed to the $46.7 million cash balance at quarter-end and said the company is no longer providing guidance because of the pending acquisition.

The main analyst question centered on how much of the Q2 slowdown came from macro softness versus customer reluctance tied to Desktop Metal’s financial position. Ric Fulop replied that many of the company’s products are large-ticket purchases, often over $1 million, so buyers scrutinize them heavily, but he did not quantify the mix. A follow-up asked about cash burn and whether management would intensify cost focus if the deal slipped, and Jason Cole said Q2 burn was elevated mainly by deal-related expenses and continued discussions with potential acquirers.