Executive Summary

Desktop Metal furnished preliminary FY 2024 results alongside its Q4 2024 period, showing revenues of approximately $148.8M (down 22% YoY) and GAAP gross margin of -16.9% as one-time non-cash amortization and depreciation charges weighed on GAAP results; non-GAAP gross margin improved to 30% (from 27% in 2023) as cost actions took hold .
Management attributed 2024 revenue weakness to merger-related uncertainty and litigation impacting deal closures, while non-GAAP margin gains reflected multi-year cost optimization and portfolio actions .
Guidance was withdrawn mid-year due to the pending Nano Dimension transaction; actual FY 2024 revenue and Adjusted EBITDA finished below the Q1 guidance ranges, driven by customer hesitancy and elevated non-cash charges .
Liquidity tightened into year-end with cash, cash equivalents, and short-term investments at $20.4M as of 12/31/24, heightening the importance of transaction outcomes and operating execution in 2025 .

What Went Well and What Went Wrong

What Went Well
- Non-GAAP margin improvement and expense discipline: Non-GAAP gross margin rose to 30% in FY 2024 (from 27% in FY 2023), with GAAP operating expenses falling to $185.7M from $313.1M year prior, reflecting cumulative cost programs since 2022 .
- Clear cost savings narrative: “We have executed on approximately $150 million in annualized cost savings” underscoring multi-year cost actions and the structural resetting of the P&L .
- Strategic rationale for combination: Management framed the Nano Dimension deal as the best path to scale and financial stability amid industry headwinds; the deal offered a “27% premium” at announcement and aims to address customer confidence and balance sheet concerns .
What Went Wrong
- Revenue pressure and sales cycle elongation: FY 2024 revenue fell to ~$148.8M versus $189.7M in 2023, with management citing pending merger and litigation effects on operations and deal closures .
- GAAP profitability hit by non-cash charges: GAAP gross margin was -16.9% in FY 2024 as accelerated amortization and depreciation materially impacted reported margins and net loss ($219.5M) .
- Guidance credibility and visibility: After Q1 guidance ($175–$215M revenue; $(30)M to $(10)M Adjusted EBITDA; 2H positive Adj. EBITDA expected), guidance was withdrawn in Q2 due to the pending transaction; actual FY revenue and Adjusted EBITDA ended below prior ranges .

Financial Results

Annual snapshot (FY 2023 → FY 2024)

Metric	FY 2023	FY 2024 (Prelim.)
Revenues ($M)	$189.7	$148.8
GAAP Gross Margin %	-5.3%	-16.9%
Non-GAAP Gross Margin %	27%	30%
GAAP Operating Expenses ($M)	$313.1	$185.7
GAAP Net Loss ($M)	$(323.3)	$(219.5)
Adjusted EBITDA ($M)	$(69.1)	$(49.4)
Cash & Equivalents at Year-End ($M)	$83.8 (12/31/23)	$20.4 (12/31/24)

Quarterly trend (Q1 2024 → Q2 2024)

Metric	Q1 2024	Q2 2024
Revenue ($M)	$40.6	$38.9
Non-GAAP Gross Margin %	30.5%	29.2%
Non-GAAP Operating Expenses ($M)	$28.6	$27.0
Adjusted EBITDA ($M)	$(13.6)	$(13.2)

Segment detail (latest available quarter)

Metric	Q2 2024
Product Revenue ($M)	$31.4
Services Revenue ($M)	$7.5

KPIs and liquidity

KPI	Q1 2024	Q2 2024	FY 2024
Non-GAAP Gross Margin %	30.5%	29.2%	30%
Cash & Equivalents ($M)	n/a	$45.9 (6/30/24)	$20.4 (12/31/24)

Notes: FY 2024 results are preliminary and subject to change upon completion of financial reporting processes .

Guidance Changes

Metric	Period	Previous Guidance	Current Status/Outcome	Change
Revenue	FY 2024	$175–$215M (issued Q1)	Guidance withdrawn in Q2; preliminary actual ~$148.8M	Withdrawn; actual below prior range
Adjusted EBITDA	FY 2024	$(30)M to $(10)M (issued Q1)	Guidance withdrawn in Q2; preliminary actual $(49.4)M	Withdrawn; actual below prior range
Adj. EBITDA timing	2H 2024	Expected positive in 2H (Q1 call)	Not reaffirmed; no Q4 call found; full-year negative	Withdrawn/Not disclosed subsequently

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 2024, Q2 2024)	Current Period (Q4 2024/FY wrap)	Trend
Nano Dimension merger	Strategic rationale and expected benefits; 27% premium at announcement; customers hesitated on deals until balance sheet addressed	8-K references expected benefits of proposed transaction; notes litigation impact on operations	Ongoing; transaction uncertainty impacted revenue
Cost reductions/OpEx	~$150M annualized savings; continued OpEx reductions	GAAP OpEx down to $185.7M (from $313.1M) in 2024	Improving structurally
Gross margins	Non-GAAP GM 30.5% (Q1), 29.2% (Q2); GAAP GM negative in Q2 due to charges	FY 2024 GAAP GM -16.9% on non-cash charges; non-GAAP GM 30%	Underlying stable; GAAP volatile on charges
Demand/sales cycles	Higher rates elongated cycles; go-to-market additions planned	Revenues impacted by merger-related uncertainty/litigation	Pressured near term
Liquidity	Inventory/A/R management focus (Q1)	YE cash & investments $20.4M	Declining liquidity
Guidance/visibility	Q1 issued FY guide and 2H positive Adj. EBITDA expectation	Guidance withdrawn in Q2; no Q4 call found	Reduced visibility

Management Commentary

“Revenues were impacted by the pending merger and litigation on the business and operations of the Company.” (FY 2024 preliminary 8-K)
“GAAP gross margins were impacted by one-time non-cash charges related to accelerated amortization and depreciation on certain intangible and fixed assets.” (FY 2024 preliminary 8-K)
“We have executed on approximately $150 million in annualized cost savings.” (Q2 call)
“During the second quarter, we heard from our customers that they were not going to continue to do business with us until we addressed our balance sheet.” (Q2 call)
“The proposed business combination with Nano Dimension… provided a 27% premium at the time of the transaction was announced…” (Q2 call)

Q&A Highlights

Customer hesitancy and deal closure mix: Management acknowledged challenges closing deals late in Q2 and indicated large-ticket binder jet systems face rigorous customer scrutiny; the company committed to provide better breakdowns as data is compiled .
Cash burn dynamics: Q2 cash burn was elevated by deal-related fees and scheduled interest payments; management emphasized the temporary nature of these drivers .
Margin trajectory: While avoiding explicit guidance, management suggested mid-30s non-GAAP gross margins are achievable at ~$50M quarterly revenue levels, consistent with prior quarterly trends .
OpEx path: Non-GAAP OpEx had not bottomed as of Q1; further targeted reductions were anticipated, even as selective go-to-market investments were planned .
Go-to-market capacity and seasonality: The company is adding sales capacity to address elongated cycles; seasonality expected to remain with stronger Q2 and Q4, though degrees of highs remain uncertain .

Estimates Context

Wall Street consensus estimates via S&P Global were not available for DM at the time of analysis due to a missing CIQ mapping, so we cannot provide consensus comparisons for Q4 2024. We attempted to retrieve consensus but the S&P Global feed returned a mapping error (no data available) [GetEstimates error].

Key Takeaways for Investors

FY 2024 results reflect a tough operating year: revenue down 22% YoY with GAAP results heavily burdened by non-cash charges, while non-GAAP margins improved—underscoring a structurally leaner cost base .
The narrative pivoted from self-help to strategic combination: merger uncertainty and litigation materially impacted deal momentum and revenue conversion; this remains a key overhang and potential catalyst pending resolution .
Liquidity tightened to $20.4M at year-end 2024, elevating the importance of transaction proceeds, working capital turns, and disciplined cash management into 2025 .
Guidance withdrawal mid-year reduced visibility; actual FY outcomes fell below initial Q1 targets, suggesting sell-side models may need to be recalibrated toward lower top-line and more conservative Adj. EBITDA trajectories absent transaction benefits .
Focus near term: monitor updates on the Nano Dimension transaction/litigation, final audited FY 2024 results vs preliminary figures, and any commentary on 2025 liquidity and sales pipeline health .
Medium term: if scale and balance sheet are strengthened via combination, the company’s non-GAAP margin profile and installed base utilization could support improved unit economics as sales cycles normalize .

Additional notes on sources and availability

Q4 2024 8-K (Item 2.02/7.01) furnished preliminary FY 2024 results; a separate Q4-specific press release or call transcript was not found in our document corpus for the covered window. We searched for Q4 2024 press releases and earnings call transcripts in late 2024 and early 2025; none were available via our tools at the time of analysis [functions.ListDocuments results showing none for Oct 2024–Jan 2025].
Prior two quarters used for trend: Q1 2024 (call transcript) and Q2 2024 (8-K and press release) - -.

Citations

FY 2024 preliminary metrics and non-GAAP reconciliations: .
Q2 2024 press release and financial statements: -.
Q1 2024 call commentary, guidance, and non-GAAP KPIs: -.
Q2 2024 call merger rationale and customer hesitancy: - .

Desktop Metal, Inc. (DM)·Q4 2024 Earnings Summary