Gross Margin Grew 41%;
45%
vs.
32% Year-Over-Year
Q4/2023 Revenue Grew 19% vs. Q4/2022
Conference Call to be Held Today at 9:00 AM EDT
WALTHAM, Mass., March 21, 2024 (GLOBE NEWSWIRE) -- Nano Dimension Ltd. (Nasdaq: NNDM, “Nano Dimension” 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 fourth quarter and full year ended December 31st, 2023.
Revenue
- Q4/2023 : $14.5 million, up 19% compared to Q4/ 2022
- FY 2023 : $56.3 million, up 29% compared to FY 2022
Gross Margin (“GM”)
- FY 2023: 45%; up 41% from 32% in FY 2022
Adjusted 1 Gross Margin (“Adjusted GM”)
- FY 2023: 48%; vs. 46% in FY 2022
Net Cash Burn² down 42% from 2022 to 2023:
- FY 2022: $146 million
- FY 2023: $84 million
- FY 2024: $12-20 million EXPECTED, as a result of Q4/22 Reshaping Nano Initiative (the “Initiative”)
Details regarding Adjusted EBITDA and adjusted gross margin can be found below in this press release under “Non-IFRS Measures.”
CEO MESSAGE TO SHAREHOLDERS:
We would like to update you - our shareholders and prospective shareholders - with additional perspective on our continued record performance, organizational changes, and an outlook on exciting times to come.
To start with – we want to emphasize that in contrast to many hi-tech corporations’ reporting results, especially industries like AM / 3D printing where no public company is profitable and most are shrinking in revenues – we relate to this document as well as to our “results” conference calls, as their name indicates: Update on Financial Results, with minimal “cosmetics” such as pictures and graphics of exciting products and the machines that manufacture them. Most of those can be found on our website: www.nano-di.com, which all of you are invited to visit and see. Nano Dimension has a breadth of technologies and products assortment, yet narrow and focused span of synergistic vertical markets. Both of those characteristics are critical to our success and major differentiators from many other AM/3D Printing players.
“Reshaping Nano” Beyond Revenue and Gross Margin
After much focus on revenue over the last 2-4 years, the market is returning to some element of reasonableness in the realigning of attention around the bottom-line. In this spirit, the Initiative was launched in mid-Q4/2023 and is critical as we reorient our financial objectives. It is specifically designed to enable Nano Dimension to become operating income positive in 2025, and potentially cash flow positive earlier. We have thought and will continue to think highly critically about our operating expenses across R&D, sales & marketing, and general & administrative costs. We made some notable changes in Q4/2023, including reducing the Company’s workforce worldwide by approximately 25% and shrinking the Executive Management group by 25%.
This Initiative has produced an estimated annualized savings of $30 million, which we expect to start reflecting in our Q1/2024 results.
It is important to note that while we are not yet delivering a positive bottom-line now, it is a choice based on our capital allocation to secure R&D innovation and establish go-to-market channels and customer relationships. We are positioning ourselves with a sharp focus on gross margin. It grew to 45%. This improvement indicates our clear direction toward a goal of over 50% gross margin, preferably close to 60%. At that level, we expect to be profitable. From there onward, we expect to see savings in operating expenses.
Customer and R&D Successes
In 2023, we saw numerous customer success stories. These are evident in new relationships with customers such as:
- Sales to NASA,
- Repeat sales to the Fraunhofer Institute,
- Sales to one of the world’s largest computer hardware companies,
- Sales to Western Armies,
- Sales to Western Secret Services,
- Sales to other defense establishments,
- Multi-system sale that resulted in our largest single order ever.
Moreover, we are seeing these customer success stories across our product portfolio – from our systems for AME to micro-AM to AE robotics.
We are hearing from our customers more frequently with excitement relating to our deep learning-based AI capabilities. This is especially on the back of our announced efforts to develop our industrial AI solution from our DeepCube Group, which was originally developed for our proprietary manufacturing systems, but is now ramping up as a separate offering for third-party customers in their own, non-AM industrial systems. As part of this, several patents were granted, or applications filed.
Comparable to the importance of our AI work are our breakthroughs in material science, specifically relating to our INSU™ 200 dielectric material for AME, which was announced in the end of 2023 and a patent application has been filed in 2024. This material is critical for use to AME as it enables the printed PCB to go through critical processes that ultimately improve its thermo-mechanical properties. This, in effect, opens tremendous new business opportunities.
The Financial Engine Continues to Run
More than ever, we are shaping our decisions around the aforementioned bottom-line, but top-line is critical to enable success. Fortunately, Nano Dimension finished 2023 with another record year. This was on the back of a strong Q4/2023, and in fact, all quarters for the year have reached records within themselves compared to previous years. And not by small margins. As an example, Q4/2023’s $14.5 million in revenue was 19% higher than the same period in the year before. Importantly, this revenue growth is entirely organic. This is proof of our ability to acquire, integrate, and achieve synergies. The overly used yet highly indicative adage of “1 + 1 = 3”.
Stewards Responsible to Shareholders
2023 was a year in which we had constant engagement with shareholders, especially leading up to our Annual General Meeting which occurred on September 7th, 2023. Nano Dimension’s slate and existing stewards received the support needed from thousands of shareholders to continue to operate as directors for the Company.
Even with that continued mandate, we made proactive changes to our Board of Directors. Firstly, we separated the Chairman and CEO function with me stepping down as Chairman, while continuing to serve as a director. The Company and its shareholders should be enthralled to have Dr. Yoav Nissan-Cohen as Chairman. Dr. Nissan-Cohen brings many years of advanced technology innovation and corporate leadership, including as CEO of Tower Semiconductor for over ten years.
Secondly, we are honored to have a new voice on the board with 4-Star General Michael X. Garrett (Ret.), who was most recently the Commanding General of the United States Army Forces Command (“FORSCOM”). Two directors stepped down as part of this refresh.
The Capital is Yours
Since raising $1.5 billion in capital in 2021 we have consistently operated under the belief that this capital was given to us by our shareholders for a few years to create added substantial value. On this basis, we have constantly sought to allocate this capital in the best way to deliver a short-, medium- and long-term return on investment (“ROI”).
