Fourth Quarter 2022 Highlights
- Revenue totaled $38.4 million
- Total orders were $36.8 million
- Net loss totaled $(114.9) million, which included a non-cash goodwill impairment charge of $123.0 million
- Adjusted net income1 was $1.7 million
- Adjusted EBITDA1 totaled $3.0 million, representing an Adjusted EBITDA margin1 of 7.9%
Full Year 2022 Highlights
- Revenue increased 5.9% to $161.1 million
- Total orders were $160.6 million
- Net loss totaled $(1,109.2) million, which included a non-cash goodwill impairment charge of $1,189.5 million
- Adjusted net loss1 totaled $(0.9) million
- Adjusted EBITDA1 was $24.9 million, representing an Adjusted EBITDA margin1 of 15.5%
HARTLAND, Wis. — (BUSINESS WIRE) — March 30, 2023 — Fathom Digital Manufacturing Corp. (NYSE: FATH), an industry leader in on-demand digital manufacturing services, today announced preliminary unaudited financial results for the fourth quarter and full year ended December 31, 2022.
|
Three Months Ended |
|
Twelve Months Ended |
||
($ in thousands) |
12/31/2022 |
12/31/2021 |
|
12/31/2022 |
12/31/2021 |
Revenue |
$38,402 |
$44,309 |
|
$161,141 |
$152,196 |
Net income (loss) |
$(114,876) |
$25,054 |
|
$(1,109,171) |
$16,996 |
Adjusted net income (loss)1 |
$1,685 |
$(2,900) |
|
$(859) |
$(1,604) |
Adjusted EBITDA1 |
$3,025 |
$10,531 |
|
$24,925 |
$34,351 |
Adjusted EBITDA margin1 |
7.9% |
23.8% |
|
15.5% |
22.6% |
| 1 See “Non-GAAP Financial Information.” Reconciliations of non-GAAP financial measures are included in the appendix. |
“Our fourth quarter results were below our expectations and primarily reflect ongoing softness in the macro environment along with the continued ramp up of our new commercial activities,” said Ryan Martin, Fathom Chief Executive Officer. “In response, we have both accelerated and augmented our plan to drive greater efficiencies in the business and currently expect to generate approximately $19.5 million in annualized cost savings upon completion of our plan in Q2 2023. We also appointed a new Vice President of Sales with a proven track record in enterprise sales and strategic growth management as we remain focused on strengthening our go-to-market strategies. We are confident our new sales leadership and efficiency measures will support our efforts to increase the scalability of our broad on-demand platform and deliver profitable, long-term growth.”
Summary of Financial Results (preliminary unaudited)
Revenue for the fourth quarter of 2022 was $38.4 million compared to $44.3 million in the fourth quarter of 2021, a decrease of 13.3% primarily due to lower production volumes. For the year ended December 31, 2022, revenue increased 5.9% to $161.1 million from $152.2 million for the same period in 2021 with higher sales driven by acquisition-related activity and growth within Fathom’s strategic accounts.
Gross profit for the fourth quarter of 2022 totaled $10.0 million, or 26.0% of revenue, compared to $17.4 million, or 39.2% of revenue, in the fourth quarter of 2021. Gross profit for the year ended December 31, 2022 was $52.5 million, or 32.6% of revenue, which includes approximately $3.2 million in non-cash purchase accounting adjustments, compared to $59.2 million, or 38.9% of revenue, for the same period in 2021. Excluding the $3.2 million in non-cash purchase accounting adjustments, gross profit for the year ended December 31, 2022 was $55.8 million, or 34.6% of revenue.
