Desktop Metal's third quarter showed strong revenue growth but fell short of expectations. The 3D printing company said it was optimistic it would begin to scale at a rapid clip.
The company reported third quarter revenue of $25.4 million, up 907% from a year ago, with a net loss of $66.9 million. Wall Street was looking for a third quarter net loss of $30 million on revenue of $27.1 million.
Desktop Metal has been acquiring companies to grow since it went public via a special purpose acquisition corporation (SPAC) deal. Desktop Metal recently closed its ExOne acquisition and acquired Meta Additive and Aidro.
Ric Fulop, CEO of Desktop Metal, said the company's core metals business was strong. Fulop said the company was bullish on demand for the Production System P-50, which will ship in the fourth quarter.
Nevertheless, Desktop Metal remains a work in progress. Fulop said the company is "extremely well positioned" entering its second year as a public company. The company needs to integrate ExOne along with other purchases, scale its P-50 system, and develop Desktop Health, which focuses on dental and biofabrication parts.
For 2021, Desktop Metal said revenue will be between $92 million to $102 million excluding ExOne. Adjusted EBITDA will be a loss of $80 million to $90 million excluding ExOne.