Nano Dimension targeting “new arising opportunities” as net spend hits $40M in Q2 2022 

Electronics 3D printer manufacturer Nano Dimension (NNDM) has announced a dramatic increase in its quarterly revenue within its Q2 2022 financial results. 

Over the quarter, the firm generated $11.1 million in revenue, over 1,000% more than the $0.8 million it brought in during Q2 2021, and a 6.7% rise on the 10.4 million it reported in Q1 2022. This accelerated growth was largely driven by acquired revenue, with Nano Dimension buying Global Inkjet Systems in early-2022, having already taken over Fabrica and DeepCube in deals worth $129.4 million. 

While the cost of these acquisitions and Nano Dimension’s continued high spending on R&D meant that its net losses hit $39.7 million in Q2 2022, CEO Yoav Stern says its generally “frugal approach to cash management” during the last two years of market inflation, has now positioned it to capitalize on “new arising opportunities.”

“As we mentioned in the last quarter, the business plan has been expanded,” Stern said in a statement to shareholders. “Our vision continues to evolve as we look to transform AM, AM Electronics & adjacent industrial non-digitized sectors. We aim to build an eco-friendly and intelligent distributed secured network of 3D printers & roll-in adjacent industrial machine-learning-led-digitized manufacturing and self-learning and self-improving machines.”

Nano Dimension's DragonFly LDM 3D printing technology in action. Photo via Nano Dimension.
Nano Dimension’s DragonFly LDM 3D printing technology. Photo via Nano Dimension.

Nano Dimension’s Q2 2022 results 

In the past, Nano Dimension has mainly generated revenue via the sale of its proprietary DragonFly 3D printers, but its recent takeovers have shifted this balance towards acquired revenue. While not breaking down its sales by product line, the company broadly attributes its Q2 revenue growth to the “increased sales of the Group’s product lines.”

Going into more detail in his statement, Stern added that Nano Dimension’s “newly assembled go-to-market organization” is starting to bear fruit. The company has invested heavily in building out its network of marketing, sales, pre and post-sales application engineers, and customer care engineers across Europe and the US. This growth, according to Stern, has been all the more impressive given macro issues such as electronics shortages and Russia’s ongoing war in Ukraine. 

Internally, Nano Dimension has also maintained a high level of R&D spending, investing $18.4 million in this area during Q2 2022. Although this figure only reflects a quarterly rise of 2.8%, the company’s rising sales and marketing and administrative expenses of $10.1 million and $7.2 million have seen it report a combined net loss of $39.7 million, a 19.9% increase over the same period. 

Financials ($) Q2 2021 Q2 2022 Variance ($) Variance (%) Q1 2022 Q2 2022 Variance ($) Variance (%) 
Revenue 0.8m11.1m+10.3m+1287.510.4m11.1m+0.7m+6.7
Cost of Revenue 0.3m7.2m+6.9m+2300.06.6m7.2m+0.6m+9.1
R&D Spending 9.1m18.4m+9.3m+102.217.9m18.4m+0.5m+2.8
Net Loss13.6m39.7m+26.1m+191.933.1m39.7m+6.6m+19.9
Cash & Equivalents1.4bn1.25bn-0.15bn-10.71.31bn1.25bn-0.06bn-4.6

Continuing to expand into Q3

Having finished Q2 2022 with cash and equivalents of $1.25 billion, Nano Dimension is still very well-financed to continue its expansion, and it has already done so in the early stages of Q3. During July, Nano Dimension bought Admatec and Formatec in a deal worth $12.9 million, which has seen it take over their respective system and material businesses in the fields of ceramic and metal 3D printing. 

This investment was followed by Nano Dimension buying 12.12% of Stratasys, a move that prompted Stratasys to file for a poison pill, a tactic used by firms seeking to resist hostile takeover attempts. Interestingly, in his statement, Stern made direct reference to the deal, describing it as “a strategic investment” that “may be increased or decreased, subject to market conditions.” 

Moving forwards, to help grow its organic business, Nano Dimension has appointed Dale Baker as President of its Americas division. In his statement, Stern explained that Baker has already begun playing a key role in his firm’s US expansion. 

“Dale, an ex-General Electric executive and ex-CEO of seven companies, has worked with us before in similar roles in other exponential growth situations,” said Stern. “Dale is already heading the expansion of Nano Dimension’s US operations as well as taking the leadership role in AME worldwide sales and marketing activity and gearing up to execute the company’s current organic and M&A growth strategy.”

Nano Dimension's multi-material electronics 3D printing process.
Nano Dimension’s multi-material electronics 3D printing process. Photo via Nano Dimension.

Further acquisitions to come? 

Ahead of Nano Dimension’s earnings call, it hasn’t issued guidance for the next quarter or the remainder of the financial year. However, given that the firm has refrained from issuing such guidance in the past, it’s unlikely to do so again for Q3 or FY 2022. What Stern has said is that Nano Dimension continues to “prepare for unpredicted circumstances,” and “react to them swiftly” when they arise. 

On the question of acquisitions, Stern added that “unreasonable market inflation” between 2020 and early-2022 had led it to adopt a frugal spending approach, but if “acquisitions withstand more reasonable prices,” this could now change. 

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Featured image shows Nano Dimension’s DragonFly LDM 3D printing technology. Photo via Nano Dimension.