Nano Dimension Announces Record Q1/2023 Results Revenue of $14.97 Million, 43% YoY Growth

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Nano Dimension Ltd., a leading supplier of Additively Manufactured Electronics (AME) and multi-dimensional polymer, metal & ceramic Additive Manufacturing (AM) 3D printers, announced financial results for the first quarter ended March 31st, 2023.

The Company also announced the intention to promptly continue its share buy-back program. 

Nano Dimension reported consolidated record revenues of $14.97 million for Q1/2023, an increase of:

• 43% over Q1/2022
• 24% over Q4/2022

Gross Margin (GM):

• Q1/2023: 44%
• Q1/2022: 10%

Adjusted Gross Margin (Adjusted GM):

• Q1/2023: 47%
• Q1/2022: 40%

Total income/loss before tax:

• Q1/2023 income of $22 million
• Q4/2022: negative $87 million
• Q1/2022: negative $34 million

Adjusted EBITDA for the Q1/2023:

Negative $24 million which includes research and development (R&D) expenses of $15 million. 

Net cash used in operations; minus interest received :

• Q1/2023: $17 million
• Q4/2022: $14 million
• Q1/2022: $21 million
• Details regarding Adjusted EBITDA and Adjusted GM can be found below in this press release under “non-IFRS measures.”

CEO MESSAGE TO SHAREHOLDERS :

“We delivered significant revenue growth in the first quarter of 2023, with the third record-setting quarter in a row, defined by exceptional performance and steady quarterly organic growth since July 2022. While we still have 6 months left to go in 2023, at this point we hope to be ahead of the annual budget which our Board of Directors has set for us.

One of the most exciting developments this quarter is the fast adoption of our Deep Learning/AI technology, developed by our DeepCube division. It is now effectively installed in our newer models of machines, advancing industrial inspection, print quality optimization, process optimization, and monitoring and maintenance of machines.

While DeepCube is a significant value-add to new and existing customers, we are starting to receive requests from industrial customers to sell them the “DeepCube AI Engine” by itself, to be installed on their own machines, thereby turning our DeepCube group into a “stand-alone” revenue generating division.

Our Additive Electronic business has been growing organically for almost a year, in spite of the continued crisis in the European economy, especially in the DACH countries. Our AME printing business is advancing on budget, supported by impressive achievements in chemical development of dielectric and conductive printing consumable materials. In parallel, IPC International, Inc. (IPC), a global association that helps original equipment manufacturers, Electronics Manufacturing services, printed circuit board manufacturers, and suppliers build electronics better, has accepted our efforts of over a year – and is now adopting new standards for AME specifications. In the Additive Manufacturing and Ink Services product lines we are experiencing steady advancements as well.

Our organic growth is expected to be fully supported by our merger and acquisition (M&A) strategy. Consistent with our stated long-term strategy, strong market position, and robust balance sheet, we remain ideally positioned to act as a consolidator in the highly fragmented AM market landscape, which consists of small- and medium-sized businesses that are currently cash negative and “floating” on high valuations. We intend to accelerate our M&A strategy by carefully investing in assets that will create return on investment and value expansion for our shareholders, contrary to unprofitability which is still a common denominator for many players in the AM industry.”

FINANCIAL RESULTS:

First Quarter 2023 Financial Results 

Total revenues for the first quarter of 2023 were $14,965,000, compared to $12,104,000 in the fourth quarter of 2022, and $10,430,000 in the first quarter of 2022. The increase is attributed to increased sales of the Company’s product lines.

R&D expenses for the first quarter of 2023 were $19,250,000, compared to $20,993,000 in the fourth quarter of 2022, and $17,870,000 in the first quarter of 2022. The decrease compared to the fourth quarter of 2022 is mainly attributed to a decrease in materials expenses and payroll and related expenses. The increase compared to the first quarter of 2022 is mainly attributed to an increase in payroll expenses, material, subcontractors, and depreciation expenses and is partially offset by a decrease in share-based compensation expenses.

Sales and marketing expenses for the first quarter of 2023 were $7,486,000, compared to $9,758,000 in the fourth quarter of 2022, and $9,308,000 in the first quarter of 2022. The decrease is mainly attributed to a decrease in share-based compensation and marketing expenses.

General and administrative expenses for the first quarter of 2023 were $11,033,000, compared to $9,091,000 in the fourth quarter of 2022, and $6,742,000 in the first quarter of 2022. The increase is mainly attributed to an increase in payroll and related expenses, share-based compensation expenses, and professional services.

Net income for the first quarter of 2023 was $22,222,000, or $0.09 per share, compared to net loss of $87,667,000, or $0.34 loss per share, in the fourth quarter of 2022, and net loss of $33,093,000, or $0.13 loss per share, in the first quarter of 2022.