Desktop Metal Inc (DM)

Desktop Metal Inc.: A Comprehensive Overview

Company Profile:

Detailed history and background:

Desktop Metal Inc. (NYSE: DM) was founded in 2015 by Rick Chin, Jonah Myerberg, and Ely Sachs. The company initially focused on developing metal 3D printing technologies and later expanded to include technologies for mass production of metal parts. Desktop Metal went public in December 2020 through a reverse merger with SPAC Trine Acquisition Corp.

Core business areas:

Desktop Metal operates in two main segments:

• Additive Manufacturing: This segment focuses on developing and selling metal 3D printing systems, including Single Pass Jetting (SPJ) systems for high-volume production and binder jetting systems for prototyping and low-volume production.
• Production Systems: This segment focuses on developing and selling mass production solutions for metal parts, including technologies for binder jetting, metal injection molding (MIM), and single-pass inkjet (SPJ) printing.

Leadership team and corporate structure:

Rick Chin serves as the Executive Chairman and co-founder of Desktop Metal. Jonah Myerberg is the Chief Executive Officer and co-founder. The company has a Board of Directors with extensive experience in technology, manufacturing, and finance.

Top Products and Market Share:

Top products and offerings:

• Production System P-50: This large-scale binder jetting system is designed for high-volume production of metal parts.
• Studio System 2: This compact binder jetting system is ideal for prototyping and low-volume production.
• Shop System: This binder jetting system offers a balance between speed and affordability for small businesses.
• DM Flex 350: This SPJ system is designed for high-speed, high-precision printing of metal parts.

Market share:

Desktop Metal is a leading player in the metal 3D printing market, with a significant market share in the industrial segment. The company's binder jetting systems hold a dominant position in the binder jetting market. However, the overall metal 3D printing market is still relatively small compared to traditional manufacturing methods.

Product performance and market reception:

Desktop Metal's products have received positive reviews from customers and industry experts. The company's P-50 system is considered one of the most advanced binder jetting systems available. The Studio System 2 is popular for its affordability and ease of use. However, some users have reported issues with the reliability and consistency of Desktop Metal's systems.

Total Addressable Market:

The global metal 3D printing market is estimated to be worth $7.6 billion in 2023 and is projected to reach $14.1 billion by 2028. The US market represents a significant portion of this total. As metal 3D printing technology continues to mature and become more affordable, the market is expected to grow considerably in the coming years.

Financial Performance:

Recent financial statements:

In 2022, Desktop Metal reported revenue of $217.2 million, compared to $107.1 million in 2021. The company's net loss was $119.3 million in 2022, compared to $161.2 million in 2021. The company's gross margin was 22.9% in 2022, compared to 17.4% in 2021.

Year-over-year performance:

Desktop Metal's revenue has grown steadily over the past few years. However, the company is still not profitable and continues to invest heavily in research and development. The company's cash flow is negative, but it has a strong balance sheet with over $1 billion in cash and equivalents.

Dividends and Shareholder Returns:

Dividend history:

Desktop Metal does not currently pay dividends.

Shareholder returns:

Desktop Metal's stock has performed poorly since its IPO in December 2020. The stock has lost over 80% of its value from its peak in February 2021.

Growth Trajectory:

Historical growth analysis:

Desktop Metal has experienced rapid growth in recent years, driven by the increasing adoption of metal 3D printing technology. The company's revenue has grown by over 100% in each of the past two years.

Future growth projections:

Desktop Metal is expected to continue its strong growth trajectory in the coming years. The company is forecasting revenue growth of 50-75% in 2023. The company is also planning to expand its product portfolio and enter new markets.

Recent product launches and strategic initiatives:

Desktop Metal has recently launched several new products, including the P-50 production system and the Shop System. The company has also entered into strategic partnerships with major companies such as Ford and Siemens.

Market Dynamics:

Industry trends:

The metal 3D printing industry is experiencing rapid growth, driven by technological advancements and increasing adoption across various industries. The demand for mass production of metal parts is also increasing, which is driving the development of new production technologies.

Company positioning:

Desktop Metal is well-positioned to capitalize on the growth of the metal 3D printing industry. The company has a strong product portfolio, a growing customer base, and a strong financial position.

Competitors:

Key competitors:

• Xometry Inc. (NASDAQ: XMTR)
• 3D Systems Corporation (NYSE: DDD)
• Stratasys Ltd. (NASDAQ: SSYS)
• Markforged Holding Corporation (NYSE: MKFG)
• Velo3D, Inc. (NYSE: VLD)

Market share and comparison:

Desktop Metal is one of the leading players in the metal 3D printing market, but it faces stiff competition from established players such