Last close As at 05/08/2026
USD1.56
▲ −0.02 (−1.27%)
Market capitalisation
USD332m
Research: TMT
Nano Dimension reported record revenue of $15.0m in Q224, slightly higher year-on-year and 12% higher quarter-on-quarter. The Reshaping Nano initiative continued to reduce cash burn, which was down 64% y-o-y in Q224 and 69% in H124, before share buybacks. Management is focused on completing the Desktop Metal (DM) acquisition by the end of the year. The combined entity will have a broad product offering, supporting the entire value chain from prototyping through to volume manufacturing, along with considerable cash to support organic and inorganic growth. With significant revenue and cost synergies identified, the new group should be able to accelerate the path to profitability.
Nano Dimension |
Creating a leader in additive manufacturing
Technology |
Spotlight – Update
22 August 2024 |
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Nano Dimension is a research client of Edison Investment Research Limited |
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Nano Dimension reported record revenue of $15.0m in Q224, slightly higher year-on-year and 12% higher quarter-on-quarter. The Reshaping Nano initiative continued to reduce cash burn, which was down 64% y-o-y in Q224 and 69% in H124, before share buybacks. Management is focused on completing the Desktop Metal (DM) acquisition by the end of the year. The combined entity will have a broad product offering, supporting the entire value chain from prototyping through to volume manufacturing, along with considerable cash to support organic and inorganic growth. With significant revenue and cost synergies identified, the new group should be able to accelerate the path to profitability.
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Historical performance
Source: Company data. Note: *PBT and PAT are normalised, excluding amortisation of acquired intangibles, exceptionals and share-based payments. |
Cash burn reduced in Q224
Nano Dimension reported record revenue of $15.0m in Q224 and reduced the EBITDA loss from $23.5m in Q223 to $16.1m in Q224 as the Reshaping Nano initiative reduced operating costs. Factoring in interest income of $10.5m and the reduction in the value of its stake in Stratasys of $31.3m, Nano reported a net loss of $44.0m for Q224, compared to a net loss of $9.1m in Q223. Before share buybacks of $18.2m (Q223: $1.3m), net cash burn reduced to $11.0m in Q224, compared to $30.5m in Q223.
Desktop Metal acquisition process ongoing
The process to acquire DM, announced on 3 July, is well underway. Requests for regulatory approval have been submitted and DM has scheduled a special shareholder meeting for 2 October to seek shareholder approval for the deal. The acquisition is expected to close in Q424 and both companies are working together to be ready to execute their post-merger integration plan.
Valuation: Well-funded for M&A strategy
Nano Dimension has gross cash of $764m on the balance sheet, highlighting its ability to consolidate the sector. After the DM acquisition at the maximum purchase price and assuming no repurchase of DM’s outstanding convertibles ($113m at end Q224), Nano Dimension expects to have gross cash of c $665m, which should support the combined entity to reach profitability and provide funds for further M&A. The shares are currently trading at a significant discount (c 43%) to Nano Dimension’s net cash balance plus the current value of its stake in Stratasys ($77m as at 21 August). We believe that as the company reduces cash burn and moves towards profitability, this discount should reduce.
Review of Q224 results
In the table below, we summarise Nano Dimension’s performance in Q224.
Exhibit 1: Q224 results highlights
$m |
Q224 |
Q223 |
H124 |
H123 |
|
Revenue |
15.0 |
14.7 |
28.4 |
29.7 |
|
Gross profit |
6.8 |
6.5 |
13.0 |
13.1 |
|
Adjusted gross profit |
7.0 |
7.0 |
13.6 |
14.1 |
|
EBITDA |
(53.3) |
(19.8) |
(97.5) |
(7.9) |
|
Adjusted EBITDA |
(16.1) |
(23.5) |
(29.7) |
(47.2) |
|
Operating loss |
(20.8) |
(30.4) |
(39.8) |
(61.6) |
|
Profit/(loss) before tax |
(44.1) |
(9.3) |
(79.1) |
12.7 |
|
Profit/(loss) after tax |
(44.3) |
(9.4) |
(79.2) |
12.6 |
|
Net income after minority interest |
(44.0) |
(9.1) |
(78.7) |
13.1 |
|
Net cash |
752.1 |
938.7 |
752.1 |
938.7 |
|
Revenue growth y-o-y |
1.7% |
32.8% |
-4.6% |
37.9% |
|
Revenue growth q-o-q/h-o-h |
12.1% |
-1.5% |
6.5% |
34.4% |
|
Gross margin |
45.4% |
44.1% |
45.8% |
44.0% |
|
Adjusted gross margin |
46.6% |
47.5% |
48.1% |
47.3% |
|
Source: Nano Dimension
Q224 revenue was 1.7% higher year-on-year and 12.1% higher quarter-on-quarter, a record quarter for Nano Dimension. Gross margin increased 1.3bp y-o-y, while adjusted gross margin was 0.9bp lower year-on-year at 46.6%. A reduction in operating expenses of $7.4m y-o-y resulted in the adjusted EBITDA loss reducing from $23.5m in Q223 to $16.1m in Q224. We note that in Q224, costs of $2.7m were incurred relating to the DM acquisition. Without these, underlying operating expenses reduced by $10.1m y-o-y due to the Reshaping Nano initiative. Adjusted EBITDA strips out the loss from revaluation of assets and liabilities (mainly the movement in Nano Dimension’s stake in Stratasys) of $31.5m, share-based payments of $3.4m and exchange rate differences of $2.3m. The company generated net interest income of $10.5m.
Nano Dimension’s 14% stake in Stratasys was worth $81.3m at quarter-end, based on a share price of $8.39. The share price has since declined to $7.96.
Net cash, including leases of $11.2m, was $752.1m at quarter-end, down from $780.3m at the end of Q124. The main moves in the quarter were:
■
cash flow from operating activities: -$17.7m (reduced from -$28.2m in Q223);
■
cash flow from investing activities: $5.2m; and
■
cash flow from financing activities: -$18.3m, which includes share buybacks totalling $18.2m.
Excluding share buybacks, cash burn for the quarter was $11m (calculated as the change in cash, cash equivalents and bank deposits of $29.2m adjusted for share buybacks), with monthly cash burn reduced to $3.67m, down 64% y-o-y. For H124, cash burn was $18.0m compared to $57.9m in H123, down 69% y-o-y.
In H124, the company bought back shares worth $69.8m. Management noted that its share repurchase scheme is still live (current facility authorised to maximum of $200m), with the timing of purchases dependent on the share price.
Update on Desktop Metal acquisition
The process to acquire DM is ongoing, with regulatory approvals already sought for anti-trust and foreign investment (US: Hart-Scott-Rodino and Committee on Foreign Investment in the US; Canada: filing under the Investment Canada Act; Germany and Italy: approval of foreign direct investment regulators). The deal also requires DM shareholder approval (a majority of voting rights); a special shareholder meeting is scheduled for 2 October for this. Subject to these approvals being received, the company expects the deal to close in Q424.
As a reminder, Nano Dimension will pay $5.50 in cash per DM share for a total value of $183m. This will be reduced by the following:
■
DM’s transaction costs, up to a maximum of $0.63 per DM share.
■
DM’s utilisation of a $20m bridge loan from Nano Dimension. Nano Dimension has offered to provide a bridge loan if closure of the deal extends into 2025. This could reduce the share price by a maximum of $0.80.
Overall, the maximum reduction would result in an offer price of $4.07 per share or $137m in cash. DM is currently trading at $4.15 per share.
Both companies have already started working closely together to produce post-merger integration plans, with the intention of enacting them as soon as the deal closes.
The company noted that its focus over the next 12 months would be on the integration but it would also consider further M&A subject to management and operational bandwidth.
Exhibit 2: Financial summary
$m |
2019 |
2020 |
2021 |
2022 |
2023 |
|
Year-end 31 December |
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
|
PROFIT & LOSS |
|
|
|
|
|
|
Revenue |
|
7.1 |
3.4 |
10.5 |
43.6 |
56.3 |
Cost of Sales (including amortisation of capitalised IP) |
(5.1) |
(2.3) |
(9.4) |
(29.6) |
(30.9) |
|
Gross Profit |
2.0 |
1.1 |
1.1 |
14.1 |
25.5 |
|
EBITDA |
|
(11.7) |
(12.6) |
(38.4) |
(91.3) |
(99.9) |
Operating profit (before amort. and excepts.) |
|
(14.4) |
(15.2) |
(48.3) |
(98.5) |
(106.4) |
Intangible Amortisation |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Exceptionals |
0.0 |
0.0 |
(145.2) |
(40.4) |
1.6 |
|
Share-based payments |
(0.4) |
(20.5) |
(29.8) |
(32.6) |
(20.1) |
|
Operating Profit |
(14.8) |
(35.7) |
(223.2) |
(171.5) |
(124.9) |
|
Net Interest |
6.5 |
0.2 |
3.8 |
2.2 |
47.4 |
|
Exceptionals |
0.0 |
(13.0) |
13.7 |
(58.7) |
21.9 |
|
Profit Before Tax (norm) |
|
(7.9) |
(15.0) |
(44.5) |
(96.4) |
(59.0) |
Profit Before Tax (FRS 3) |
|
(8.4) |
(48.5) |
(205.7) |
(228.0) |
(55.6) |
Tax |
0.0 |
0.0 |
4.9 |
(0.3) |
(0.1) |
|
Profit After Tax (norm) |
(7.9) |
(15.0) |
(44.5) |
(96.4) |
(59.0) |
|
Profit After Tax (FRS 3) |
(8.4) |
(48.5) |
(200.8) |
(228.3) |
(55.7) |
|
Average Number of Shares Outstanding (m) |
3.5* |
42.9* |
247.3 |
257.8 |
248.0 |
|
EPS - normalised ($) |
|
(2.25) |
(0.35) |
(0.18) |
(0.37) |
(0.23) |
EPS (normalised, fully diluted ($) |
|
(2.25) |
(0.35) |
(0.18) |
(0.37) |
(0.23) |
EPS - (IFRS) ($) |
|
(2.38) |
(1.13) |
(0.81) |
(0.88) |
(0.22) |
Dividend per share ($) |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
|
Gross margin (%) |
28.1% |
31.3% |
10.7% |
32.2% |
45.2% |
|
EBITDA margin (%) |
N/A |
N/A |
N/A |
N/A |
N/A |
|
BALANCE SHEET |
|
|
|
|
|
|
Fixed Assets |
|
13.0 |
13.1 |
78.1 |
139.1 |
170.4 |
Intangible Assets |
5.2 |
4.4 |
0.0 |
0.0 |
2.2 |
|
Tangible Assets |
7.4 |
8.3 |
12.2 |
22.4 |
28.8 |
|
Deferred tax and other |
0.0 |
0.0 |
1.0 |
0.9 |
0.0 |
|
Bank deposits/securities |
0.0 |
0.0 |
64.4 |
115.0 |
138.4 |
|
Restricted deposits |
0.4 |
0.4 |
0.5 |
0.9 |
0.9 |
|
Current Assets |
|
9.9 |
676.1 |
1,311.9 |
1,064.3 |
894.0 |
Stocks |
3.5 |
3.3 |
11.2 |
19.4 |
18.4 |
|
Debtors |
2.4 |
1.8 |
9.3 |
12.8 |
24.0 |
|
Cash |
3.9 |
585.3 |
853.6 |
685.4 |
309.6 |
|
Bank deposits |
0.0 |
85.6 |
437.6 |
346.7 |
542.0 |
|
Restricted deposits |
0.0 |
0.1 |
0.1 |
0.1 |
0.1 |
|
Current Liabilities |
|
(4.4) |
(6.7) |
(32.0) |
(37.0) |
(34.5) |
Creditors |
(4.4) |
(6.7) |
(16.7) |
(27.9) |
(30.0) |
|
Short-term borrowings |
0.0 |
0.0 |
0.0 |
0.0 |
(4.5) |
|
Other |
0.0 |
0.0 |
(15.3) |
(9.2) |
(0.0) |
|
Long-Term Liabilities |
|
(6.8) |
(15.5) |
(13.7) |
(16.1) |
(14.1) |
Long-term borrowings |
(2.1) |
(2.6) |
(4.4) |
(13.1) |
(9.3) |
|
Other liabilities |
(4.7) |
(12.8) |
(9.3) |
(3.0) |
(4.7) |
|
Net Assets |
|
11.6 |
667.1 |
1,344.2 |
1,150.3 |
1,015.8 |
CASH FLOW |
|
|
|
|
|
|
Operating Cash Flow |
(11.7) |
(12.6) |
(38.4) |
(91.3) |
(99.9) |
|
Working capital |
(0.8) |
2.9 |
2.7 |
(1.2) |
(7.3) |
|
Exceptionals and other |
(0.2) |
(0.0) |
(7.0) |
0.4 |
2.0 |
|
Tax |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Net Operating Cash Flow |
|
(12.7) |
(9.6) |
(42.6) |
(92.1) |
(105.1) |
Net Interest |
0.0 |
0.2 |
3.7 |
17.5 |
41.5 |
|
Investment in intangible & tangible assets |
(0.6) |
(1.4) |
(9.8) |
(9.4) |
(10.6) |
|
Acquisitions/disposals |
0.0 |
0.0 |
(74.6) |
(219.5) |
(9.3) |
|
Equity financing |
14.6 |
679.0 |
805.7 |
0.0 |
(96.4) |
|
Dividends |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Other |
0.0 |
0.0 |
0.0 |
(1.7) |
(1.6) |
|
Net Cash Flow |
1.4 |
668.1 |
682.4 |
(305.3) |
(181.4) |
|
Opening net debt/(cash) |
|
(3.8) |
(1.8) |
(668.3) |
(1,351.2) |
(1,018.9) |
HP finance leases initiated |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Other |
(3.3) |
(1.6) |
0.4 |
(15.0) |
1.3 |
|
Closing net debt/(cash) |
|
(1.8) |
(668.3) |
(1,351.2) |
(1,018.9) |
(837.7) |
Source: Company data. Note: *Adjusted for 1:50 reverse split effective June 2020.
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