Nano Dimension (NNDM) Q3 Earnings call transcript Nov 20, 2024

In Nano Dimension's third quarter earnings call for 2024, CEO Yoav Stern shared the company's impressive financial performance and strategic moves, including two significant acquisitions of Desktop Metal and Markforged. The call, held during the Formnext trade show in Frankfurt, showcased the company's growth trajectory and commitment to profitability.

Financial Performance and Strategic Moves

The call began with Yoav Stern highlighting the company's best third quarter ever, with revenue of $15 million, a 22% increase from the previous year. The gross margin improved to 48%, and adjusted gross margin reached 51%, marking a significant step towards profitability. The net cash burn was reduced from $16 million to $3 million, indicating a positive shift in the company's financial situation.

The company also announced the acquisition of Desktop Metal and Markforged, two major players in the additive manufacturing industry. These acquisitions are part of Nano Dimension's strategy to expand its technology portfolio and market reach, positioning the company as an industry leader. The acquisitions are expected to bring in an additional $190 million and $94 million in revenue, respectively, as per 2023 pro forma numbers.

Growth and Challenges

Despite the impressive financial results, Nano Dimension faces challenges, including the opposition from descendant shareholders in Toronto who aim to dismantle the company. The Board of Directors urges shareholders to vote in favor of the company's growth strategy, emphasizing the potential for higher returns in the long run.

Patents and Technological Diversification

Nano Dimension's technological diversity is a significant aspect of its growth strategy. The company has patents in various technologies, including inkjet, binder, DLP, FDM, ceramic, composites, electronics, metal, metal casting, and polymer. It is currently working on acquiring the remaining technology that deals with metals. The company's acquisition strategy aims to create a profitable and growing business, emphasizing profitability over high revenue.

Looking Ahead

With a focus on profitability and growth, Nano Dimension is well-positioned to capitalize on the opportunities in the additive manufacturing industry. The company's strategic acquisitions, coupled with its strong financial performance, demonstrate its commitment to creating value for shareholders and stakeholders. The challenges ahead include navigating the complexities of the acquisitions and maintaining a positive cash flow. However, with a clear strategic direction and a strong financial foundation, Nano Dimension is poised for continued growth and success.