Here is why Desktop Metal Inc. (DM) stock plunged on Monday?

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Desktop Metal Inc. (DM) shares plunged 5.61% in after-hours on Monday, November 15, 2021, and closed Monday’s trading at $7.57. Even in the regular session, DM’s stock lost 6.85%. DM shares have fallen 22.88% over the last 12 months, and they have moved down 12.83% in the past week. Over the past three months, the stock has gained 11.70%, while over the past six months, it has declined 40.01%.

Let’s see, is there any recent news behind its loss?

DM latest development

On November 15, 2021, Desktop Metal, Inc. (DM) reported its financial results for the third quarter ended September 30, 2021.

Q3 2021 financial highlights

  • DM reported total revenue of $25.4 million in Q3 2021 compared to $2.5 million in Q3 2020.
  • The total cost of revenue was $21.5 million in Q3 2021 compared to $4.8 million in Q3 2020.
  • Total operating expenses were $67.5 million in Q3 2021 compared to $17.15 million in Q3 2020.
  • It suffered a net loss of $66.9 million or $0.26 per basic and diluted share in Q3 2021 compared to a net loss of $19.5 million or $0.12 per basic and diluted share in Q3 2020.
  • As of September 30, 2021, the company had cash, cash equivalents, and short-term investments of $423.9 million.

FY 2021 financial guidance

For FY 21, Desktop Metal revised its financial outlook and is now expecting,

  • Revenue to be in the range of $92 million and $102 million.
  • Adjusted EBITDA in the range of $80 million to $90 million.

DM completed ExOne Acquisition

On November 12, 2021, Desktop Metal, Inc. (DM) successfully completed its acquisition of The ExOne Company (XONE) following approval by a majority of ExOne’s shareholders.

ExOne shareholders received $8.50 in cash and $16.43 in shares of Desktop Metal common stock for each share of ExOne common stock, for a total purchase price of approximately $24.93 per share, representing a transaction value of $561.3 million. ExOne stock has been delisted from the Nasdaq stock exchange and it will continue to operate as a wholly owned subsidiary of Desktop Metal and will remain headquartered in North Huntingdon, Pennsylvania.

DM partnership with Shapeways

On November 11, 2021, Desktop Metal, Inc. (DM) and Shapeways Holdings, Inc. (SHPW) announced a partnership to offer manufacturing and engineering teams unprecedented flexibility and seamless access to industry-leading 3D printing services. According to the agreement, Shapeways is expanding Desktop Metal system capacity and capabilities by providing customers with access to these solutions at Shapeways’ ISO-9001 manufacturing facilities. Desktop Metal plans to power Shapeways’ manufacturing capabilities and purpose-built software platform, Otto, so that its customer can get instant access to fully digitized, end-to-end 3D printing workflows.

Conclusion

The Q3 financial results improved, but the company still posted a net loss due to which its share price declined on Monday. We can expect it to further decline in the coming trading sessions on Tuesday.

 

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