Desktop Metal (Desktop Metal) Gross Margin %

: -31.98% (As of Dec. 2023)

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Gross Margin % is calculated as gross profit divided by its revenue. Desktop Metal's Gross Profit for the three months ended in Dec. 2023 was $-16.7 Mil. Desktop Metal's Revenue for the three months ended in Dec. 2023 was $52.3 Mil. Therefore, Desktop Metal's Gross Margin % for the quarter that ended in Dec. 2023 was -31.98%.

The historical rank and industry rank for Desktop Metal's Gross Margin % or its related term are showing as below:

DM' s Gross Margin % Range Over the Past 10 Years
Min: -92.13 Med: -5.32 Max: 16.27
Current: -5.32

During the past 5 years, the highest Gross Margin % of Desktop Metal was 16.27%. The lowest was -92.13%. And the median was -5.32%.

DM's Gross Margin % is ranked worse than
97.74% of 2439 companies
in the Hardware industry
Industry Median: 24.5 vs DM: -5.32

Desktop Metal had a gross margin of -31.98% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Desktop Metal was 0.00% per year.

Desktop Metal Gross Margin % Historical Data

The historical data trend for Desktop Metal's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Desktop Metal Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

-92.13

-91.37

16.27

7.21

-5.32

Desktop Metal Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial												13.72	-3.30	11.43	4.50	-31.98

Competitive Comparison

For the Computer Hardware subindustry, Desktop Metal's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Desktop Metal Gross Margin % Distribution

For the Hardware industry and Technology sector, Desktop Metal's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Desktop Metal's Gross Margin % falls into.

Desktop Metal Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Desktop Metal's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	-10.1	/	189.698
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(189.698 - 199.788)	/	189.698
	=	-5.32 %

Desktop Metal's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	-16.7	/	52.346
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(52.346 - 69.085)	/	52.346
	=	-31.98 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Desktop Metal (NYSE:DM) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Desktop Metal had a gross margin of -31.98% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Desktop Metal Gross Margin % Related Terms

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Desktop Metal (Desktop Metal) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Desktop Metal Inc (NYSE:DM) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

844:Germany

Address

63 3rd Avenue, Burlington, MA, USA, 01803

Website

https://www.desktopmetal.com

Desktop Metal Inc manufactures 3D printing to make metal and carbon fiber 3D printing accessible to all engineers, designers, and manufacturers. 3D metal printing helps in the design and development of automotive parts, consumer goods, manufacture of industrial equipment, and design of mechanical systems. The company ships its product to markets in the Americas, Europe Middle East and Africa (EMEA), and Asia Pacific (APAC).

Executives

Farhad Fred Ebrahimi	10 percent owner	191 UNIVERSITY BLVD., #246, DENVER CO 80206
Scott J Dussault	director	C/O DESKTOP METAL, INC., 63 THIRD AVE, BURLINGTON MA 01803
Jason M Cole	officer: CFO & TREASURER	C/O DESKTOP METAL, INC., 63 3RD AVENUE, BURLINGTON MA 01803
Ric Fulop	director, officer: Chief Executive Officer	C/O DESKTOP METAL, INC., 63 THIRD AVENUE, BURLINGTON MA 01803
Thomas Nogueira	officer: CHIEF OPERATING OFFICER	C/O DESKTOP METAL, INC., 63 3RD AVENUE, BURLINGTON MA 01803
Hindery Leo J. Jr.	director, other: See remarks.	C/O HMG, INC., C/O CINE LATINO, INC., 2000 PONCE DE LEON BLVD, SUITE 500, CORAL GABLES FL 33134
Michael M. Jafar	officer: CEO, Desktop Health	17901 VON KARMAN AVENUE, SUITE 150, IRVINE CA 92614
James S Eisenstein	director	C/O AMERICAN TOWER CORP, 116 HUNTINGTON AVE, BOSTON MA 02116
Jeffrey R Immelt	director	GENERAL ELECTRIC COMPANY, 41 FARNSWORTH STREET, BOSTON MA 02210
Siblani Ali El	director, officer: CEO of EnvisionTec US, LLC	63 THIRD AVENUE, BURLINGTON MA 01803
James Haley	officer: CFO & Treasurer	63 THIRD AVENUE, BURLINGTON MA 01803
Arjun Aggarwal	officer: Chief Product Officer	C/O DESKTOP METAL, INC., 63 THIRD AVENUE, BURLINGTON MA 01803
Wen Hsuan Hsieh	director	C/O DESKTOP METAL, INC., 63 THIRD AVENUE, BURLINGTON MA 01803
Forest Baskett	10 percent owner
Bilal Zuberi	director	C/O DESKTOP METAL, INC., 63 THIRD AVENUE, BURLINGTON MA 01803