Desktop Metal Inc (DM) 2024 Q2 法說會逐字稿

Greetings, and welcome to Desktop Metal Second Quarter 2024 Earnings Conference Call.

您好，歡迎參加 Desktop Metal 2024 年第二季財報電話會議。

At this time, all participants are in a listen-only mode.

此時，所有參與者都處於只聽模式。

A brief question-and-answer session will follow the formal presentation.

正式演講後將舉行簡短的問答環節。

(Operator Instructions) As a reminder, this conference is being recorded.

（操作員指示）謹此提醒，本次會議正在錄製中。

I will now turn over the call.

我現在將轉接電話。

Good morning, and thank you for joining today's call.

早安，感謝您參加今天的電話會議。

With me today are Ric Fulop, Founder and CEO of Desktop Metal; and Jason Cole, CFO of Desktop Metal.

今天和我在一起的有 Desktop Metal 的創辦人兼執行長 Ric Fulop；傑森‧科爾 (Jason Cole)，Desktop Metal 財務長。

Please note, our financial results press release and presentation slides referred to on this call are available under the Events & Presentations section of our Investor Relations website.

請注意，本次電話會議中提到的我們的財務業績新聞稿和簡報投影片可在我們的投資者關係網站的活動和簡報部分下找到。

This call is also being webcast live with a link at the same site.

該電話會議也在同一網站上透過連結進行網路直播。

The webcast and accompanying slides will be available for replay for 12 months following the call.

網路廣播和隨附的幻燈片將在電話會議後 12 個月內重播。

The content of today's call is the property of Desktop Metal.

今天通話的內容屬於Desktop Metal 的財產。

It cannot be reproduced or transcribed without our prior consent.

未經我們事先同意，不得複製或轉錄。

Before we begin, I'll refer you to our safe harbor disclaimer on Slide 3 of the presentation and in the financial results press release.

在開始之前，我將向您介紹簡報投影片 3 和財務績效新聞稿中的安全港免責聲明。

As a reminder, today's call will include forward-looking statements.

提醒一下，今天的電話會議將包含前瞻性陳述。

These forward-looking statements reflect desktop metals views and expectations only as of today, July 31, and actual results may vary materially based on a number of risks and uncertainties for more information about the risks that may impact Desktop Metals business and financial results, please refer to the Risk Factors section in the company's Form 10-K and Form 10-Qs, in addition to the company's audit filings with the SEC.

這些前瞻性陳述僅反映截至今天（7 月31 日）的Desktop Metals 觀點和預期，實際結果可能會因多種風險和不確定性而產生重大差異，如需了解有關可能影響Desktop Metals 業務和財務業績的風險的更多信息，請除了公司向 SEC 提交的審計文件外，請參閱公司 10-K 表格和 10-Q 表格中的風險因素部分。

We assume no obligation to update or revise the forward-looking statements.

我們不承擔更新或修改前瞻性陳述的義務。

Additionally, during this presentation and following Q&A session, we may refer to our results on a non-GAAP basis.

此外，在本次示範和隨後的問答環節中，我們可能會參考非 GAAP 基礎上的結果。

Non-GAAP measures are intended to supplement but not substitute for performance measures calculated in accordance with GAAP.

非 GAAP 衡量標準旨在補充但不能取代根據 GAAP 計算的績效衡量標準。

Our financial results release contains the financial and other quantitative information to be discussed today as well as the reconciliation of the GAAP to non-GAAP measures.

我們的財務業績發布包含今天要討論的財務和其他定量信息，以及 GAAP 與非 GAAP 指標的調整。

I'll now turn the call over to Ric.

我現在將電話轉給里克。

Good morning, everyone, and welcome to Desktop Metals Second Quarter 2024 Earnings Call.

大家早安，歡迎參加 Desktop Metals 2024 年第二季財報電話會議。

I'd like to use today's call to address the most significant development of our company.

我想利用今天的電話會議來談談我們公司最重要的發展。

The proposed business combination with Nano Dimension.

擬議與 Nano Dimension 進行業務合併。

This decision wasn't made lightly.

這個決定並不是輕易做出的。

And I'd like to walk you through our rationale and benefits we anticipate from this merger.

我想向您介紹我們的理由以及我們預期從這次合併中獲得的好處。

Since the beginning of 2022, Desktop Metal has worked tirelessly to align our cost structure with macroeconomic realities.

自 2022 年初以來，Desktop Metal 一直不懈努力，使我們的成本結構與宏觀經濟現實保持一致。

Making hard decisions about our business, we have reduced our non-GAAP operating expenses by 48% since the first quarter of 2022, while meaningfully strengthening our non-GAAP gross margins.

我們對我們的業務做出了艱難的決定，自 2022 年第一季以來，我們已將非 GAAP 營運費用減少了 48%，同時顯著提高了我們的非 GAAP 毛利率。

By the end of the first quarter, we had delivered nine quarters of OpEx reduction and brought our cash burn down dramatically.

到第一季末，我們已經減少了九個季度的營運支出，並大幅減少了我們的現金消耗。

We have strategically realigned our business to reflect a lower growth environment driven by 11 interest rate hikes, and from a margin perspective, I'm proud of the progress we have shown.

我們對業務進行了策略性調整，以反映 11 次升息而導致的較低成長環境，從利潤角度來看，我對我們所取得的進展感到自豪。

However, despite these efforts, we have faced an increasingly challenging business environment as a result of rising rates, slowing CapEx budgets and other macro-related challenges.

然而，儘管做出了這些努力，但由於利率上升、資本支出預算放緩和其他宏觀相關挑戰，我們仍面臨著日益嚴峻的商業環境。

While we believe additive manufacturing has incredible potential and will continue to grow over the next decade,

雖然我們相信積層製造具有令人難以置信的潛力並將在未來十年繼續成長，

The past 1.5 years has been very challenging, putting significant pressure on our financial position.

過去的 1.5 年充滿挑戰，給我們的財務狀況帶來了巨大壓力。

As a result, we've seen our balance sheet continue to be under pressure, limiting our ability to invest in growth and innovation.

因此，我們的資產負債表繼續面臨壓力，限制了我們投資成長和創新的能力。

We began to notice a concerning trend towards the end of the second quarter, with customers becoming hesitant to engage in closing deals due to our weakening financial outlook, making it more difficult to reach our profitability targets.

我們在第二季末開始注意到一個令人擔憂的趨勢，由於我們的財務前景疲軟，客戶對完成交易變得猶豫不決，這使得我們更難以實現獲利目標。

This feedback from the market was a clear signal that we needed to take action, became increasingly apparent that remaining a stand-alone company with a constrained balance sheet was not a viable long-term strategy.

來自市場的回饋是一個明確的訊號，表明我們需要採取行動，而且越來越明顯的是，繼續成為一家資產負債表有限的獨立公司並不是一個可行的長期策略。

Since the terminated merger agreement with Stratasys in September of 2023, we explored raising additional capital to strengthen our balance sheet, but the financing alternatives available to the company would have created significant dilution to shareholders or ceding control via structured to debt holders, which would have destroyed a lot of our remaining equity value.

自2023 年9 月終止與Stratasys 的合併協議以來，我們一直在探索籌集額外資本以強化我們的資產負債表，但公司可用的融資替代方案可能會對股東造成重大稀釋，或者透過結構性將控制權轉讓給債務持有人，這將毀掉了我們許多剩餘的股權價值。

It didn't help to have short selling activity that we believe drove down the value of our equity significantly.

我們認為賣空活動並沒有幫助我們大幅降低我們的股權價值。

In evaluating our options, we have to consider the broader context of Additive Manufacturing as an industry.

在評估我們的選擇時，我們必須考慮積層製造作為一個行業的更廣泛背景。

It's worth noting that profitability has been elusive across all the public companies in the Additive sector.

值得注意的是，積層業的所有上市公司的獲利能力一直難以捉摸。

While we have declined in value in line with most of our peers, the situation could have been worse, and in fact, it has been for some players in our space.

雖然我們的價值與大多數同行一樣有所下降，但情況可能會更糟，事實上，對於我們領域的一些參與者來說，情況確實如此。

For example, four of our western publicly traded companies in Additive Manufacturing have failed or were delisted in the last two quarters, given deteriorating market conditions, leading to an even more pronounced loss of equity value for those businesses and we do not want to be in that bucket.

例如，鑑於市場狀況惡化，我們西方增材製造領域的四家上市公司在過去兩個季度失敗或退市，導致這些企業的股權價值損失更加明顯，我們不希望參與其中那個桶子。

We also considered a variety of divestitures, but given valuations and market sentiment towards Additive Manufacturing, there were no good immediately actionable alternatives.

我們也考慮了各種剝離，但考慮到積層製造的估值和市場情緒，沒有立即可行的替代方案。

At the moment, not a single one of the public companies in Additive Manufacturing has achieved meaningful profitability or scale and scale with the right portfolio, balance sheet, technology, and go-to-market is going to be required to build a sustainable company in this industry.

目前，積層製造領域的上市公司沒有一家已經實現了有意義的獲利能力或規模，並且需要透過正確的投資組合、資產負債表、技術和市場進入來建立一家可持續發展的公司。

This industry-wide challenge underscored the need for a bold move to support the long-term success of the technologies we have pioneered and our ability to maximize the equity value to our shareholders.

這一全行業的挑戰凸顯了需要採取大膽舉措來支持我們所開創的技術的長期成功以及我們為股東實現股權價值最大化的能力。

We looked at all the options in front of us and given these factors, we believe that the proposed business combination with NanoDimension, which provided a 27% premium at the time of the transaction was announced subject to adjustment, still represents the best path forward for Desktop Metal shareholders.

我們考慮了擺在我們面前的所有選擇，考慮到這些因素，我們認為與 NanoDimension 擬議的業務合併（在交易宣佈時提供了 27% 的溢價，但可能會進行調整）仍然是最佳的前進道路桌面金屬股東。

This merger offers several key benefits that we expect will strengthen our competitive position and create significant long-term shareholder value.

此次合併帶來了多項關鍵優勢，我們預計這些優勢將增強我們的競爭地位並創造顯著的長期股東價值。

First and foremost, this combination will establish a true leader in the Additive Manufacturing space.

首先也是最重要的是，這種組合將在積層製造領域建立真正的領導者。

By bringing together our complementary product portfolios and technologies, we'll create an entity with enhanced scale and a stronger balance sheet.

透過整合我們互補的產品組合和技術，我們將創造一個規模更大、資產負債表更強勁的實體。

This combination will allow us to better serve our customers and compete more effectively by offering a more complete portfolio of products.

這種組合將使我們能夠透過提供更完整的產品組合來更好地服務客戶並更有效地競爭。

We have gotten to know the NanoDimension team over the past two and a half years.

我們在過去兩年半的時間裡認識了 NanoDimension 團隊。

NanoDimension is a well-run company with a strong management team.

NanoDimension是一家經營良好的公司，擁有強大的管理團隊。

They have delivered superior organic growth versus our industry in 2023.

到 2023 年，與我們的行業相比，他們實現了卓越的有機成長。

Secondly, we believe this merger will accelerate the industry's transition into mass production.

其次，我們相信這次合併將加速產業向大規模生產的轉變。

By pooling our resources, expertise, and technologies, we'll be better positioned to drive innovation and develop products for customers that address the evolving needs of manufacturers looking to adopt Additive Manufacturing for production applications.

透過匯集我們的資源、專業知識和技術，我們將能夠更好地推動創新並為客戶開發產品，以滿足希望採用積層製造進行生產應用的製造商不斷變化的需求。

And lastly, and perhaps most importantly, this merger will create a well-capitalized company with a stronger financial profile to properly support our customers.

最後，也許也是最重要的是，這次合併將創造一家資本充足的公司，其財務狀況更加強大，可以為我們的客戶提供適當的支援。

The increased scale and operational efficiencies we expect to achieve will put us on a clear path to profitability, while providing the resources needed to fuel growth and innovation.

我們期望實現的規模和營運效率的提高將使我們走上一條清晰的獲利之路，同時提供推動成長和創新所需的資源。

Finally, I would like to address the timing and structure of the deal.

最後，我想談談交易的時間和結構。

Over the past two and a half years, we've had discussions with 10 different companies on potential combinations.

在過去的兩年半中，我們與 10 家不同的公司就潛在的合併進行了討論。

None resulted in offers that were actionable or that our Board deemed superior to remaining an independent company other than the proposed Stratasys merger for this transaction.

除了本次交易擬議的 Stratasys 合併之外，沒有任何要約產生可執行的要約，或我們的董事會認為優於保留獨立公司的要約。

In the first quarter, we believe there was a chance for the market to recover and economic pace from projects will start to close faster as rates would come down.

在第一季度，我們相信市場有機會復甦，隨著利率下降，專案的經濟步伐將開始更快結束。

But it quickly became clear as we get closer to the end of Q2 that we had to do a deal to protect the value of the equity.

但隨著第二季末的臨近，我們很快就清楚地意識到，我們必須達成一項交易來保護股權價值。

We considered an all-equity deal, especially since our whole industry is at an all-time low, but this was not a viable option in the end.

我們考慮過全股權交易，特別是因為我們整個產業正處於歷史低點，但這最終不是一個可行的選擇。

Given our past experience with a failed vote from Stratasys, our view was that an all-cash transaction would present the highest certainty.

鑑於我們過去在 Stratasys 投票失敗的經驗，我們認為全現金交易將具有最高的確定性。

And an all-cash transaction would enable those Desktop Metal shareholders who have conviction regarding the industry's long-term potential to make their own investment decisions whether to purchase stock in order to take advantage of future growth opportunities.

全現金交易將使那些對該行業長期潛力充滿信心的 Desktop Metal 股東能夠自行做出是否購買股票的投資決定，以利用未來的成長機會。

The alternative of not closing a transaction now with Nano and its strong balance sheet in corporative management may lead to a fatal prognosis in results for our company's existence.

如果現在不與 Nano 達成交易，及其在公司管理方面強大的資產負債表，可能會導致我們公司的生存結果出現致命的預測。

We firmly believe that this business combination with Nano dimension is the right strategic move for Desktop Metal shareholders at this critical juncture, and our entire team is excited about making this combination successful in working with the team at Nano to make customers successful.

我們堅信，在這個關鍵時刻，與 Nano Dimension 的業務合併對於 Desktop Metal 股東來說是正確的戰略舉措，我們整個團隊很高興能夠與 Nano 團隊合作，使這一合併取得成功，從而使客戶取得成功。

As Q2 ended, the only other alternatives available to us would have distorted much of the remaining equity value and put our company and customer base at risk.

當第二季結束時，我們唯一可用的其他替代方案將扭曲大部分剩餘股權價值，並使我們的公司和客戶群面臨風險。

As a large shareholder, I too am saddened to see the decline over time in valuations of our companies in this industry, but we've had limited stand-alone financing options and came to the conclusion that partnering with Nano was the best outcome for our shareholders.

作為大股東，我也很難過看到我們這個行業的公司估值隨著時間的推移而下降，但我們的獨立融資選擇有限，並得出的結論是，與Nano 合作對我們來說是最好的結果。

We strongly believe that this is the best move for our shareholders.

我們堅信，這對我們的股東來說是最好的舉措。

We're excited about the potential of this merger and are confident it creates the best value for our shareholders, customers and employees.

我們對這次合併的潛力感到興奮，並相信它能為我們的股東、客戶和員工創造最佳價值。

I and our team are looking forward to partnering with Nano team in growing this market and building a profitable company at scale.

我和我們的團隊期待與 Nano 團隊合作，共同發展這個市場並大規模建立一家盈利的公司。

With that, I'll hand the call over to Jason to cover our financials.

這樣，我會將電話轉交給傑森，以了解我們的財務狀況。

Thanks, Ric, and thank you, everyone, for joining us today.

謝謝里克，也謝謝大家今天加入我們。

My remarks today will be relatively brief given the pending merger agreement with Nano Dimension.

鑑於與 Nano Dimension 即將達成的合併協議，我今天的演講將相對簡短。

I do want to reiterate my confidence that this transaction represents the best option for all of our stakeholders.

我確實想重申我的信心，即這項交易對我們所有利害關係人來說都是最佳選擇。

We have done a great job in appropriately sizing our cost basis and recall, we have executed on approximately $150 million in the annualized cost savings.

我們在適當調整成本基礎和召回方面做得非常出色，每年節省的成本約為 1.5 億美元。

The success of these programs since the beginning of 2022 is highlighted by our adjusted operating margin and declining costs and cash burn.

自 2022 年初以來，這些計劃的成功體現在我們調整後的營業利潤率以及成本和現金消耗的下降。

Despite these efforts, the broader macro environment has heavily penalized growth companies like ours and the additive manufacturing industry as a whole has experienced that to a greater degree than most.

儘管做出了這些努力，但更廣泛的宏觀環境嚴重損害了像我們這樣的成長型公司，而整個積層製造業所經歷的情況比大多數公司都要嚴重。

One of the most compelling reasons we felt the transaction was right and necessary was during the second quarter, we heard from our customers that they were not going to continue to do business with us until we address our balance sheet.

我們認為這筆交易是正確且必要的最令人信服的原因之一是在第二季度，我們從客戶那裡得知，在我們解決資產負債表問題之前，他們不會繼續與我們開展業務。

This team replayed itself throughout several customer conversations and is apparent in our second quarter revenue number.

這個團隊在幾次客戶對話中不斷重複，在我們第二季的營收數據中也很明顯。

With that, as beginning in the financial summary section, you will see our performance for the second quarter of 2024.

從財務摘要部分開始，您將看到我們 2024 年第二季的業績。

Please note, we will be referring to several financial metrics on a non-GAAP basis, and the reconciliation to GAAP data is included in the filed appendix within our slides.

請注意，我們將參考非 GAAP 基礎上的幾個財務指標，並且 GAAP 資料的調整包含在我們投影片中提交的附錄中。

Consolidated revenue for the second quarter of 2024 was $38.9 million, compared to $53.3 million in the second quarter of 2023.

2024 年第二季的合併收入為 3,890 萬美元，而 2023 年第二季的合併收入為 5,330 萬美元。

The year-on-year decline was led by weaker hardware sales, while consumables and services were roughly flat year-on-year.

年比下降的原因是硬體銷售疲軟，而消耗品和服務比去年同期大致持平。

The weaker hardware sales were driven by the macroeconomic conditions impacting the additive manufacturing industry.

硬體銷售疲軟是由影響積層製造業的宏觀經濟狀況所推動的。

Non-GAAP gross margins were 29.2% for the second quarter of 2024 compared to 31% in the prior year period.

2024 年第二季非 GAAP 毛利率為 29.2%，去年同期為 31%。

Non-GAAP gross margins fell 180 basis points compared with the prior year period driven by weaker cost absorption on lower revenue.

由於收入下降導致成本吸收減弱，非 GAAP 毛利率較上年同期下降 180 個基點。

Sequentially, non-GAAP gross margins decreased from 30.5% in the first quarter of 2024 on lower revenues in Q2 of 2024.

隨後，由於 2024 年第二季營收下降，非 GAAP 毛利率從 2024 年第一季的 30.5% 下降。

On the next slide, non-GAAP operating expenses were $27.0 million for the second quarter of 2024.

在下一張投影片中，2024 年第二季的非 GAAP 營運費用為 2,700 萬美元。

Through cost optimization, we reduced non-GAAP operating expenses sequentially by $1.6 million and year-over-year by $7.7 million, improving by 5.6% and 22.2%, respectively.

透過成本優化，我們連續減少非 GAAP 營運費用 160 萬美元，年減 770 萬美元，分別減少 5.6% 和 22.2%。

Adjusted EBITDA for the second quarter of 2024 was negative $13.2 million improving year-over-year by $1.8 million compared to the second quarter of 2023.

2024 年第二季調整後 EBITDA 為負 1,320 萬美元，與 2023 年第二季相比年增 180 萬美元。

Turning to the balance sheet.

轉向資產負債表。

We closed 2Q with $46.7 million in cash, with outflows elevated in the quarter by deal-related spend.

第二季末，我們擁有 4,670 萬美元現金，本季交易相關支出導致資金流出增加。

We are no longer providing guidance for the remainder of 2024 due to the pending acquisition with Nano Dimension.

由於對 Nano Dimension 的收購懸而未決，我們將不再提供 2024 年剩餘時間的指導。

With that, we will take some questions.

接下來，我們將回答一些問題。

Operator?

操作員？

Thank you to our host, ladies and gentlemen, we will now begin the question-and-answer session.

感謝主持人、女士們、先生們，我們現在開始問答環節。

(Operator Instructions).

（操作員說明）。

Mr. Greg Palm of Craig Hallum Capital Group.

Craig Hallum Capital Group 的 Greg Palm 先生。

Yeah.

是的。

Thanks.

謝謝。

This is Danny Eggerichs on for Greg today.

我是丹尼·埃格里克斯，今天為格雷格發言。

I appreciate your taking the questions.

感謝您提出問題。

I guess I'll just start with -- you said you kind of had challenges closing deals at the end of the quarter.

我想我首先要說的是——您說過在本季末完成交易時遇到了挑戰。

And obviously, you mentioned that some customers were just hesitant and uncomfortable with your financial position as a company.

顯然，您提到一些客戶只是對您公司的財務狀況感到猶豫和不安。

Just wondering if there's any way to maybe break down more how much of it was that versus maybe a continued softening in the macro and versus that hesitancy based on your financial position?

只是想知道是否有任何方法可以進一步細分其中有多少與宏觀經濟的持續疲軟以及基於您的財務狀況的猶豫不決？

I mean, Danny, the type of products that we sell, particularly in the bandage side, many times are over $1 million.

我的意思是，丹尼，我們銷售的產品類型，特別是繃帶方面，很多時候都超過 100 萬美元。

So large companies really scrutinize this large type of investments.

所以大公司確實會仔細審查這種大型投資。

And I would say, if you want an average mix of what that was, you have to probably get back to you and actually do a real account, but it's something that we felt

我想說，如果你想要一個平均的組合，你可能必須回覆你並實際做一個真實的帳戶，但這是我們感覺到的

Okay.

好的。

Got it.

知道了。

Maybe just touching quickly on balance sheet cash burn.

也許只是快速觸及資產負債表現金消耗。

Obviously, another $20 million cash burn this quarter and how should we be thinking about that?

顯然，本季又消耗了 2,000 萬美元的現金，我們該如何考慮這一點？

Is there maybe increased focus or emphasis on that in the next couple of quarters?

在接下來的幾個季度中，是否會更加關注或強調這一點？

Maybe in the case that the deal does get pushed to 2025 and greater emphasis on driving down that cash burn.

也許交易確實被推遲到 2025 年，並​​且更加重視降低現金消耗。

So there's less of an impact on potentially drying on that loan?

那麼對貸款枯竭的影響較小嗎？

Yes, I can take that one.

是的，我可以接受那個。

So it's a good question.

所以這是一個好問題。

The cash burn in 2Q was elevated in part.

第二季度的現金消耗增加。

But the principal reason it was elevated was some cash outflows related to the deal.

但其上漲的主要原因是與該交易相關的一些現金流出。

And then the 10 people we were speaking to per rep, we had conversations and so on with a lot of folks over the quarter and that elevated some of our traditional fees related to deals, legal and so forth.

然後，我們每個代表與 10 個人交談，我們在本季度與許多人進行了對話等，這提高了我們與交易、法律等相關的一些傳統費用。

You also have to account, you've got the interest payment that we pay on Q2 and Q4 as well?

你還必須算賬，你也有我們在第二季和第四季支付的利息嗎？

That's right.

這是正確的。

Okay.

好的。

That's helpful.

這很有幫助。

I'll leave it there.

我會把它留在那裡。

Thanks.

謝謝。

I'll leave it there.

我會把它留在那裡。

Thanks, Danny.

謝謝，丹尼。

Thank you, Mr. Craig.

謝謝你，克雷格先生。

As, there are no further questions at this time, I'd now like to turn over the call back over to Mr. Ric Fulop for final closing comments.

由於目前沒有其他問題，我現在想將電話轉回給 Ric Fulop 先生，以徵求最後的總結意見。

Thank everybody for joining the call and again for your support over the years and the right.

感謝大家的加入，並再次感謝您多年來的支持和正確。

Thank you.

謝謝。

Thank you, Mr. Ric Fulop.

謝謝你，里克·富洛普先生。

Ladies and gentlemen, this concludes your conference call for today.

女士們、先生們，今天的電話會議到此結束。

We thank you for participating and ask that you please disconnect your lines.

我們感謝您的參與，並請您斷開線路。

I hope you all have a great day ahead.

我希望你們都有美好的一天。