Nano Dimension Quarterly Earnings. Is it a Buy?

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Nano Dimension (Nasdaq: NNDM), an industry leading Additively Manufactured Electronics (AME) / PE (Printed Electronics) provider, today announced financial results for the fourth quarter and full year 2020.

Nano Dimension reported revenues of $1,971,000 for the fourth quarter of 2020, and $3,399,000 for the full year 2020. The company ended the fourth quarter of 2020 with $670,934,000 in cash and bank deposits, while total loss for the fourth quarter was $17,439,000.

“We ended 2020 with a strong balance sheet and $671 million in cash and bank deposits, thanks to the equity offerings we concluded during the year, and we have strengthened it even more to a balance of nearly $1.5 billion as of the end of February 2021,” said Yael Sandler, Chief Financial Officer of Nano Dimension. “We recognized revenues of $3.4 million, which is lower than last year due to the effect of the COVID-19 pandemic, but better than what we originally expected. We are focusing our efforts on fulfilling our growth plan, both internal through product development and R&D efforts, as well as through external M&A activities.”

Corporate Updates

  • During 2020, Nano Dimension raised a total gross proceeds of $710 million in public equity offerings.
  • The revenues for the year ended December 31, 2020 were affected by the repercussions of the COVID-19 pandemic. As a result of the COVID-19 pandemic’s global effects, many entities held off on capital expenses; thus, the Company witnessed a significant decrease in its revenues during 2020.

Fourth Quarter 2020 Financial Results

  • Total revenues for the fourth quarter of 2020 were $1,971,000, compared to $1,977,000 in the fourth quarter of 2019, and $438,000 in the third quarter of 2020. The changes are attributed to changes in sales of DragonFly LDM systems.
  • Research and development (R&D) expenses for the fourth quarter of 2020 were $3,725,000, compared to $1,525,000 in the fourth quarter of 2019, and $2,556,000 in the third quarter of 2020. The increase compared to the both the fourth quarter of 2019 and the third quarter of 2020 resulted primarily from an increase in payroll and related expenses, including share-based payment expenses, as well as an increase in materials expenses due to increased R&D efforts. The R&D expenses for the fourth quarter of 2020 are presented net of government grants in the amount of $6,000.
  • Sales and marketing expenses for the fourth quarter of 2020 were $2,373,000, compared to $1,381,000 in the fourth quarter of 2019, and $2,475,000 in the third quarter of 2020. The increase compared to the fourth quarter of 2019 was mainly attributed to an increase in payroll and related expenses.
  • General and administrative (G&A) expenses for the fourth quarter of 2020 were $3,539,000, compared to $881,000 in the fourth quarter of 2019, and $14,805,000 in the third quarter of 2020. The increase compared to the fourth quarter of 2019 is attributed to an increase in share-based payment expenses. The decrease compared to the third quarter of 2020 is attributed to a decrease in share-based payment expenses.
  • Finance expense, net, for the fourth quarter of 2020 was $8,908,000 compared to finance income, net, of $1,751,000 in the fourth quarter of 2019, and finance expense, net, of $824,000 in the third quarter of 2020. The increase in finance expense compared to both the fourth quarter of 2019 and the third quarter of 2020 is mainly as a result of finance expense of $9,035,000 that was recognized in the fourth quarter of 2020 due to changes in the fair value of financial liabilities in respect of warrants.
  • Net loss for the fourth quarter of 2020 was $17,439,000, or $0.20 per share, compared to $1,381,000, or $0.35 per share, in the fourth quarter of 2019 and $20,716,000, or $0.45 per share, in the third quarter of 2020.

Full Year 2020 Financial Results

  • Total revenues for the full year 2020 were $3,399,000, compared to $7,070,000 in 2019. The decrease is due to a decrease in sales due to the COVID-19 pandemic.
  • R&D expenses for 2020 were $9,878,000, compared to $8,082,000 in 2019. The increase resulted primarily from an increase in share-based payment expenses. The R&D expenses for 2020 are presented net of government grants in the amount of $21,000.
  • Sales and marketing expenses for 2020 were $6,597,000, compared to $5,469,000 in 2019. The increase resulted primarily from an increase in payroll and related expenses.
  • Finance expense, net for 2020 was $12,797,000, compared to finance income, net of $6,482,000 in 2019. The increase in finance expense is mainly as a result of finance expense of $12,825,000 that was recognized in 2020 due to changes in the fair value of financial liabilities in respect of warrants.
  • Net loss for the full year 2020 was $48,494,000, or $1.13 per share, compared to $8,353,000, or $2.38 per share, in 2019.

Balance Sheet Highlights

  • Cash and bank deposits totaled $670,934,000 as of December 31, 2020, compared to $3,894,000 on December 31, 2019. The increase compared to December 31, 2019, mainly reflects proceeds received from the sale of American Depositary Shares representing the Company’s ordinary shares during 2020, less cash used in operations during the year ended December 31, 2020. In January and February 2021, Nano Dimension announced the closing of two public offerings of American Depositary Shares, with total gross proceeds of $833 million.
  • Shareholders’ equity totaled $667,116,000 as of December 31, 2020, compared to $11,602,000 as of December 31, 2019.

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