22% Organic Growth for Q3/2023
28% Organic Growth for the Frist 9 Months of 2023
22% Higher Revenue Over Q3/2022
33% Higher Revenue Over First 9 Months of 2022
44% Q3/2023 Gross Margin, Up From 18% in Q3/2022
44% First Nine Months 2023 Gross Margin, Up From 20% in the Same Period in 2022
48% Q3/2023 Adjusted Gross Margin, Up From 28% in Q3/2022
48% First Nine Months 2023 Adjusted Gross Margin, Up From 36% in the Same Period in 2022
CEO Letter Outlines Additional Actions to Reshape Business,
Enhance Future Prospects and Drive Value
Conference Call to be Held Today at 9:00 AM EDT
WALTHAM, Mass., Nov. 28, 2023 (GLOBE NEWSWIRE) -- Nano Dimension Ltd. (Nasdaq: NNDM, “Nano Dimension” or “Nano” or the “Company”), a leading supplier of Additively Manufactured Electronics (“AME”) and multi-dimensional polymer, metal & ceramic Additive Manufacturing (“AM”), today announced financial results for the third quarter ended September 30th, 2023.
Revenue
- $12.2 million for Q3/2023; up 22% compared to Q3/2022
- $41.9 million for the first nine months of 2023; up 33% compared to the same period in 2022
Gross Margin
- 44% for Q3/2023; up from 18% in Q3/2022
- 44% for the first nine months of 2023; up from 20% in the same period in 2022
Adjusted 1 Gross Margin
- 48% for Q3/2023; up from 28% in Q3/2022
- 48% for the first nine months of 2023; up from 36% in the same period in 2022
Net Loss
- $66.9 million for Q3/2023
- $54.3 million for the first nine months of 2023
Adjusted EBITDA
- Negative $30 million for Q3/2023, which includes research and development (“R&D”) expenses of $11 million2
- Negative $77 million for the first nine months of 2023, which includes R&D expenses of $39 million3
Details regarding Adjusted EBITDA and Adjusted gross profit can be found below in this press release under “Non-IFRS Measures.”
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1 Excluding cost of revenues from depreciation and amortization and share-based payments expenses.
2 Excluding share-based payments expenses and depreciation.
3 Excluding share-based payments expenses and depreciation.
CEO MESSAGE TO SHAREHOLDERS:
Dear Shareholders,
Nano Dimension’s strong organic growth continues. Our efforts to scale our business with a focus on revenue growth and gross margin improvement are delivering results. Revenue of $41.9 million for the first nine months of 2023 was 33% higher than the same period in 2022. Gross margins and adjusted gross margins also increased considerably for the first nine months of 2023 compared to same period in 2022 from 20% to 44% and 36% to 48%, respectively.
This revenue increase happened during notable macroeconomic uncertainty which challenged all companies in our ecosystem. The fact that our leading peers have posted year-over-year declines in revenue for their respective first nine months of 2023 makes our 33% growth even more notable. This is a result of our successful efforts to close new high-profile customer relationships, secure recurring sales from existing customers, and develop new products that open greater opportunities.
The marked improvements in our gross margins – IFRS and adjusted – are driven by our meticulous, ongoing efforts to improve our supply chain and how we make and deliver our products. We have been laser-focused on this effort as we work to drive profitability. A positive bottom line cannot happen without a healthy margin, and we have positioned the Company for just that.
I would like to acknowledge the investors and other stakeholders who have supported us on an individual and collective level with their concern and well-wishes as the war of Israel against Hamas terrorism (the “War”) continues.
Our focus remains on meeting our business targets, especially the new initiatives we have implemented to drive improved profitability, as described below. Despite the War, we are confident that we are on track to meet our full-year 2023 expectations.
Another unwelcomed hostility, of the “business type”, involved our interaction with dissident shareholders this year. It is unfortunate, despite our attempts to settle these matters in an amicable manner, that we needed to deploy time and money, over $15M in 2023 alone, to defend Nano against the self-interested pursuit of these shareholders. That said, we are grateful that – through your support – their efforts were defeated at the last Annual Shareholders Meeting.
We should also note that we have acted on the feedback we received from ISS, Glass Lewis and shareholders throughout this process, including making changes to our board of directors’ composition and governance, to ensure we are best positioned to guide Nano in delivering value for you, our shareholders.
In addition to those actions, we shall finish 2023 and orient 2024 around a new initiative – Reshaping Nano (the “Initiative”). Considering the current macro environment as well as investor feedback gathered through our ongoing engagements, the Initiative is designed to enable Nano Dimension to become operating income positive at some point in 2025, and potentially cash flow positive earlier. To do this, we are thinking critically about our operating expenses across R&D, sales & marketing, and general & administrative expenses.
Over the last several years, we have expanded Nano’s platform from a niche company focused on AME into a broad AM, Additive Electronics, leveraging our DeepCube Artificial Intelligence for industrial applications leader. The Initiative will be the next step in driving performance across our platform by leveraging synergies and setting clear financial objectives for each group across the business and the product lines within them. We believe that the Initiative will result in approximately $30 million of annual savings, which should begin to appear in our Q1/2024 results. It is important to note that this strategy is not sacrificing innovation and future growth engines. This is about setting financial objectives that reflect the maturity of the respective groups and product lines. We will continue to invest where we see the most robust future opportunities.
In parallel with the Initiative, we quickly approach the epicenter of mergers and acquisitions (“M&A”) opportunities, with the benefit of our significant cash firepower and the reduction of valuations in our industry. As we have stated previously, we believe that our industry is ripe for consolidation and we are well-positioned with both the financial, managerial and leadership resources to execute these efforts. As we pursue this path, we will balance potential M&A, ground-breaking R&D, and high-returning go-to-market investments with repurchasing shares at attractive valuation levels, particularly in light of Nano Dimension’s shares currently trading at a discount to net asset value. We will remain disciplined in our capital allocation approach to ensure we are capitalizing on the best way to deliver shareholder value.
Thank you for your support.
Yoav Stern
Chief Executive Officer and a member of the Board of Directors
Nano Dimension
FINANCIAL RESULTS:
Third Quarter 2023 Financial Results
