47% Organic Growth since Q3/2022
33% Higher Revenue over Q2/2022
38% Higher Revenue over H1/2022
44% Q2/23 Gross Margin, Up From 32% in Q2/2022
44% H1/23 Gross Margin, Up From 21% in H1/2022
48% Q2/23 Adjusted Gross Margin, Up From 40% in Q2/2022
47% H1/23 Adjusted Gross Margin, Up From 40% in H1/2022
Conference Call to be Held Today at 9:00 AM EDT
WALTHAM, Mass., Aug. 21, 2023 (GLOBE NEWSWIRE) -- Nano Dimension Ltd. (Nasdaq: NNDM, “Nano Dimension” or “Nano” or the “Company”), a leading supplier of Additively Manufactured Electronics (“AME”) and multi-dimensional polymer, metal & ceramic Additive Manufacturing (“AM”), today announced financial results for the second quarter ended June 30th, 2023.
Revenue
- $14.74 million for Q2/2023; up 33% over Q2/2022
- $29.70 million for H1/2023; up 38% over H1/2022
Gross Margin (“GM”)
- 44% for Q2/2023; up from 32% in Q2/2022
- 44% for H1/2023; up from 21% in H1/2022
Adjusted1 Gross Margin (“Adjusted GM”)
- 48% for Q2/2023; up from 40% in Q2/2022
- 47% for H1/2023; up from 40% in H1/2022
Adjusted EBITDA for Q2/2023 was negative $24 million,
including Research & Development expenses: $13 million2.
Adjusted EBITDA for H1/2023 was negative $47 million,
including Research & Development expenses: $28 million2.
Details regarding Adjusted EBITDA and Adjusted gross profit can be found below in this press release under “Non-IFRS Measures.”
_______________
1 Excluding cost of revenues from depreciation and amortization and share-based compensation expenses.
2 Excluding share-based compensation expenses and depreciation.
CEO MESSAGE TO SHAREHOLDERS:
Dear Shareholders,
Nano Dimension’s momentum continues, and the second quarter and first half of 2023 are no exception. The financial results prove that the people, initiatives, business plan and M&A strategy we have put in place are delivering exceptional revenue and gross margin improvements. Moreover, the 47% organic revenue growth since Q3/2022, across different product lines, is a testament of our unique and synergistic business model.
When many, if not all other businesses, in our space have top-lines that are stagnating or declining, our revenues are growing 33% quarter-over-quarter and 38% half-over-half for 2023. When many of our peers have had to lower prices to compete and/or pay more for an inefficiently managed supply chain, our gross profits are increasing:
- Up 81% from Q2/2022
- Up 185% from H1/2022
We strongly believe that this is only the beginning. We have the right people, technologies, and products for this business to continue to deliver strong results. During the most recent 3-4 quarters, however, I am not focusing on quarterly results, as good as they are – but rather looking at annual trends, aiming for improvements in margins, and potentially, in the not too far future, a positive EBITDA and bottom line. I am confident of this trajectory based on our strong R&D achievements, especially in materials’ developments, pipeline and customer relationships, as well as build-up of sales & marketing infrastructure.
Considerations for Profitability and Cash Flow:
We prudently continue to invest in R&D and Go-to-Market. Those are larger investments than what a company at our present size can typically afford, should it wish to be profitable in near term quarters. However, we are growing steadily – and that’s what we aim to do. Negative cashflows are temporary investments which are meticulously calculated and aimed to match the significant organic growth we expect and the upcoming consolidation waves that we foresee in our industry.
We are prioritizing long-term value creation with a horizon of a few quarters, rather than nearer-term profitability at the expense of the Company’s future potential. If we cut expenses and maximize profit now, an alternative that is definitely doable, we would be sacrificing a substantially increased valuation for the Company down the road. Hence, investors with a different investment-event-horizon, may join us by stretching their timeline slightly, and their expected returns will emerge.
We are not where we are by accident, in particular the cash on our balance sheet was and is preplanned. We are here because we have always respected our fiduciary responsibility to our shareholders, which has led us to spend your capital more prudently than others.
Our disciplined approach to capital allocation has enabled us to enter the next phase of this marketplace - when capital is tight for many - and fully execute on our strategic growth plans. Nano has the cash firepower to continue to build our business and we see significant opportunities ahead, such as the acquisition we announced last week of U.K.-based Additive Flow's technology and intellectual property, which covers solutions for 3D design simulation and optimization.
There will be a few leaders that emerge as dominating the digital manufacturing fields, and we are ideally positioned to act as a consolidator in the highly fragmented market landscape with numerous attractive potential targets. It is hard to imagine who is better positioned than we are.
Nano’s Performance 2020-2023:
Nano’s ambitious and focused M&A strategy, combined with strong organic growth, has already driven significant value creation in recent years:
- $4.4M revenue run rate in 2020 - 2021, up to $60M annual revenue run-rate in H1/2023
- 47% organic growth since Q3/2022
- Adjusted gross margins approaching 50%
- 6 synergistic product lines with hundreds of machines sold across four continents:
- AME
- Additive Electronics
- AM for Metal and Ceramic
- Micro-Additive Manufacturing
- Ink Systems
- Deep Learning AI for Industrial, AM, AME, and other applications
- 6 integrated acquisitions and $1.1 billion of cash, cash equivalents, deposits, and investments
- 5 R&D and manufacturing centers in the Netherlands, Switzerland, Germany, the UK, and Israel
- Sales & marketing and operations in Boston (USA), Germany, the Netherlands, the UK and Australia.
Upcoming Annual General Meeting of Shareholders (“Annual Meeting”):
As many of you are aware, Murchinson Ltd. (“Murchinson”), a small non-institutional fund trying to establish itself as a legitimate “activist,” is threatening to derail the Company’s progress and future value creation opportunity at our upcoming Annual Meeting on September 7th, 2023. Murchinson’s goal is to remove 9 directors – 7 of whom are independent – all of whom have diverse skills and expertise that are critical to Nano’s future success.
Murchinson has presented NO strategic plan and NO vision for Nano’s future. We believe Murchinson’s campaign is a blatant attempt to elevate the fund’s profile as an “activist” on the account of Nano Dimension and make a quick profit by gaining access to the Company’s significant cash reserves, at the expense of substantial long-term value creation potential for other shareholders.
Murchinson's efforts to manipulate Nano’s stock, with the help of collaborators, has resulted in its cost basis of (estimated) $2.50 per share. The fund stands to generate an (estimated) 60% return in (estimated) 12 months by seeking to liquidate the Company at $4.00 per share. Doing so would deprive you of the considerable upside as Nano continues to execute on its strategy.
They now falsely claim that the cash value of ~$4.00 per share today should be the maximum value of your company, and wish to take it over, liquidate and distribute what will end up less than $4.00 per share to 170,000 (estimated number) retail shareholders. Most of those have cost-basis which is much higher than that, and they will be deprived of the opportunity to reach value which is much more than $4.00 per share.
Those eccentric-pseudo-activist shareholders are attempting to oust our board, replace it with their own nominees (which were already paid $250,000 in non-refundable cash in advance, just to be participants in this predator’s scheme, even if they are not voted to be directors; just to lend their names to a derogatory proxy fight).
We hope results like today will also resonate with shareholders since they validate the success of our business model and strategic initiatives as we continue to build on our leadership in the industry. Nano, under the existing Board and management team, has a bright future ahead, with a multi-pronged growth strategy buoyed by strong fundamentals, including disciplined M&A objectives and strong organic growth from leading technology development and innovation efforts. We hope existing and prospective shareholders will see the opportunity as we continue to deliver strong results annually.
However, this will not continue if Murchinson has its way. As previously announced, I intend to resign as the Company's CEO if EVEN ONE of the Murchinson nominees are elected to the Board. A large number of Nano’s senior management indicated similar intentions. I believe Murchinson’s involvement will derail the Company’s strategic direction and I (and others) simply refuse to work with any representative of Murchinson, when I believe their intention is to dismantle Nano Dimension.
Murchinson nominees have all accepted inducement payments of $50,000 each to simply stand for election, a clear mechanism to buy their loyalty.
I urge shareholders to vote to protect their investment and the significant value creation opportunity that Nano represents and vote FOR the current Nano Board.
Thank you for your support.
Yoav Stern
Chairman and Chief Executive Officer
FINANCIAL RESULTS:
Financial results for the second quarter ended June 30th, 2023
- Total revenues for the second quarter of 2023 were $14,737,000, compared to $14,965,000 in the first quarter of 2023, and $11,101,000 in the second quarter of 2022.
- Cost of revenues (excluding amortization of intangibles and write-down of inventories) for the second quarter of 2023 was $8,180,000, compared to $8,267,000 in the first quarter of 2023, and $7,151,000 in the second quarter of 2022. The increase compared to the second quarter of 2022 is attributed mostly to the increased sales of the Company’s product lines.
- R&D expenses for the second quarter of 2023 were $16,386,000, compared to $19,250,000 in the first quarter of 2023, and $18,365,000 in the second quarter of 2022. The decrease compared to the first quarter of 2023 is mainly attributed to a decrease in payroll expenses, subcontractors, material and share-based compensation expenses. The decrease compared to the second quarter of 2022 is mainly attributed to a decrease in subcontractors and share-based compensation expenses, and is partially offset by an increase in material, depreciation and other R&D expenses.
- Sales & marketing (S&M) expenses for the second quarter of 2023 were $8,217,000, compared to $7,486,000 in the first quarter of 2023, and $10,115,000 in the second quarter of 2022. The increase compared to the first quarter of 2023 is mainly attributed to an increase in payroll and other marketing expenses and is partially offset by a decrease in share-based compensation expenses. The decrease compared to the second quarter of 2022 is mainly attributed to a decrease in share-based compensation and marketing expenses.
- General and administrative (G&A) expenses for the second quarter of 2023 were $12,322,000, compared to $11,033,000 in the first quarter of 2023, and $7,207,000 in the second quarter of 2022. The increase compared to the first quarter of 2023 is mainly attributed to an increase in professional services, share-based compensation expenses and other G&A expenses and is partially offset by a decrease in payroll expenses. The increase compared to the second quarter of 2022 is mainly attributed to an increase in professional services, payroll and share-based compensation expenses.
- Net loss attributed to owners for the second quarter of 2023 was $9,119,000, or $0.04 loss per share, compared to net income of $22,222,000, or $0.09 income per share, in the first quarter of 2023, and net loss of $39,732,000, or $0.15 loss per share, in the second quarter of 2022.
Financial results for the six months ended June 30th, 2023
- Total revenues for the six months period ended June 30, 2023, were $29,702,000, compared to $21,531,000 in the six months period ended June 30, 2022. The increase is attributed to increased sales of the Company’s product lines.
- Cost of revenues (excluding amortization of intangibles and write-down of inventories) for the six months period ended June 30, 2023, was $16,447,000, compared to $13,731,000 in the six months period ended June 30, 2022. The increase is attributed mostly to increased sales of the Company’s product lines.
- R&D expenses for the six months period ended June 30, 2023, were $35,636,000, compared to $36,235,000 in the six months period ended June 30, 2022. The decrease is mainly attributed to a decrease in share-based compensation and subcontractors’ expenses, and is partially offset by an increase in payroll, materials, depreciation and other R&D expenses.
- S&M expenses for the six months period ended June 30, 2023, were $15,703,000, compared to $19,423,000 in the six months period ended June 30, 2022. The decrease is mainly attributed to a decrease in share-based compensation and marketing expenses.
- G&A expenses for the six months period ended June 30, 2023, were $23,355,000, compared to $13,949,000 in the six months period ended June 30, 2022. The increase is mainly attributed to an increase in payroll and professional services expenses.
- Net income attributed to the owners for the six months period ended June 30, 2023, was $13,103,000, or $0.05 per share, compared to loss of $72,825,000, or $0.28 per share, in the six months period ended June 30, 2022.
Balance sheet highlights
- Cash and cash equivalents, together with short and long-term unrestricted bank deposits totaled $954,396,000 as of June 30, 2023, compared to $1,032,025,000 as of December 31, 2022.
- Shareholders’ equity totaled $1,148,664,000 as of June 30, 2023, compared to $1,149,525,000 as of December 31, 2022.
Conference call information
The Company will host a conference call to discuss these financial results today, August 21st, 2023, at 9:00 a.m. EDT (4:00 p.m. IDT).
We encourage participants to pre-register for the conference call using the following link: https://dpregister.com/sreg/10181392/fa0dd604c0
Webcast link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=E9fFwO4y
U.S. Dial-in Number: 844-695-5517
INTERNATIONAL DIAL IN: 1-412-902-6751
Israel Dial-in Number: 1-80-9212373.
Please request the “Nano Dimension NNDM call” when prompted by the conference call operator. For those unable to participate in the conference call, there will be a replay available from a link on Nano Dimension’s website at http://investors.nano-di.com/events-and-presentations.
About Nano Dimension
Nano Dimension’s (Nasdaq: NNDM) vision is to transform existing electronics and mechanical manufacturing into Industry 4.0 environmentally friendly & economically efficient precision additive electronics and manufacturing – by delivering solutions that convert digital designs to electronic or mechanical devices - on demand, anytime, anywhere.
Nano Dimension’s strategy is driven by the application of deep learning-based AI to drive improvements in manufacturing capabilities by using self-learning & self-improving systems, along with the management of a distributed manufacturing network via the cloud.
Nano Dimension serves over 2,000 customers across vertical target markets such as aerospace & defense, advanced automotive, high-tech industrial, specialty medical technology, R&D and academia. The company designs and makes Additive Electronics and Additive Manufacturing 3D printing machines and consumable materials. Additive Electronics manufacturing machines enable the design and development of High-Performance-Electronic-Devices (Hi-PED®s). Additive Manufacturing includes manufacturing solutions for production of metal, ceramic, and specialty polymers-based applications - from millimeters to several centimeters in size with micron precision.
Through the integration of its portfolio of products, Nano Dimension is offering the advantages of rapid prototyping, high-mix-low-volume production, IP security, minimal environmental footprint, and design-for-manufacturing capabilities, which is all unleashed with the limitless possibilities of additive manufacturing. For more information, please visit www.nano-di.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or variations of such words are intended to identify forward-looking statements. Because such statements deal with future events and are based on Nano Dimension’s current expectations, they are subject to various risks and uncertainties, and actual results, performance or achievements of Nano Dimension could differ materially from those described in or implied by the statements in this press release. For example, Nano Dimension is using forward-looking statements when it discusses its growing revenues, trajectory, pipeline, customer relationships, R&D, build up of sales and marketing infrastructure, the upcoming consolidation waves in its industry, its aim at value and expected returns, notable opportunities for acquisitions, that there will be a few leaders that come to dominate digital manufacturing, potential obstacles to the Company’s plans and organic growth. The forward-looking statements contained or implied in this press release are subject to other risks and uncertainties, including those discussed under the heading “Risk Factors” in Nano Dimension’s Annual Report on Form 20-F filed with the Securities and Exchange Commission (“SEC”) on March 30, 2023, and in any subsequent filings with the SEC. Except as otherwise required by law, Nano Dimension undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. Nano Dimension is not responsible for the contents of third-party websites.
NANO DIMENSION INVESTOR RELATIONS CONTACT
Yael Sandler, CFO | ir@nano-di.com
| Unaudited Consolidated Statements of Financial Position as at | ||||||
| June 30, | December 31, | |||||
| 2022 | 2023 | 20223 | ||||
| (In thousands of USD) | (Unaudited) | (Unaudited) | ||||
| Assets | ||||||
| Cash and cash equivalents | 706,220 | 454,555 | 685,362 | |||
| Bank deposits | 511,093 | 499,841 | 346,663 | |||
| Investment in securities | 20,574 | — | — | |||
| Restricted deposits | 77 | 60 | 60 | |||
| Trade receivables | 5,811 | 12,523 | 6,342 | |||
| Other receivables | 6,654 | 5,360 | 6,491 | |||
| Inventory | 15,982 | 19,546 | 19,400 | |||
| Total current assets | 1,266,411 | 991,885 | 1,064,318 | |||
| Restricted deposits | 585 | 858 | 850 | |||
| Bank deposits | 28,702 | — | — | |||
| Investment in securities | — | 172,185 | 114,984 | |||
| Deferred tax | 505 | 249 | 115 | |||
| Other receivables | — | 826 | 809 | |||
| Property plant and equipment, net | 11,617 | 14,014 | 5,843 | |||
| Right-of-use assets | 14,172 | 14,135 | 16,539 | |||
| Intangible assets | 20,437 | — | — | |||
| Total non-current assets | 76,018 | 202,267 | 139,140 | |||
| Total assets | 1,342,429 | 1,194,152 | 1,203,458 | |||
| Liabilities | ||||||
| Trade payables | 3,511 | 3,216 | 3,722 | |||
| Financial derivatives and deferred consideration | 9,558 | — | 8,798 | |||
| Other payables | 21,082 | 25,784 | 24,150 | |||
| Current portion of other long-term liability | 355 | 274 | 363 | |||
| Total current liabilities | 34,506 | 29,274 | 37,033 | |||
| Liability in respect of government grants | 1,862 | 1,882 | 1,492 | |||
| Employee benefits | 306 | 2,485 | 1,462 | |||
| Liability in respect of warrants | 808 | 140 | 69 | |||
| Lease liability | 10,969 | 10,168 | 12,374 | |||
| Deferred tax liabilities | 279 | — | — | |||
| Other long-term liabilities | 819 | — | — | |||
| Loan from banks | 912 | 647 | 736 | |||
| Total non-current liabilities | 15,955 | 15,322 | 16,133 | |||
| Total liabilities | 50,461 | 44,596 | 53,166 | |||
| Equity | ||||||
| Non-controlling interests | 553 | 892 | 767 | |||
| Share capital | 387,312 | 396,238 | 388,406 | |||
| Share premium and capital reserves | 1,284,324 | 1,298,124 | 1,296,194 | |||
| Treasury shares | (1,509 | ) | (24,768 | ) | (1,509 | ) |
| Foreign currency translation reserve | 220 | 1,176 | 583 | |||
| Remeasurement of net defined benefit liability (IAS 19) | 3,127 | 1,448 | 2,508 | |||
| Accumulated loss | (382,059 | ) | (523,554 | ) | (536,657 | ) |
| Equity attributable to owners of the Company | 1,291,415 | 1,148,664 | 1,149,525 | |||
| Total equity | 1,291,968 | 1,149,556 | 1,150,292 | |||
| Total liabilities and equity | 1,342,429 | 1,194,152 | 1,203,458 | |||
_______________
3 The December 31, 2022 balances were derived from the Company’s audited annual financial statements.
| Unaudited Consolidated Statements of Profit or Loss and Other Comprehensive Income | ||||||||||
| Six Months Ended June 30, | Three Months Ended June 30, | Year ended December 31, | ||||||||
| 2022 | 2023 | 2022 | 2023 | 2022 | ||||||
| Thousands | Thousands | Thousands | Thousands | Thousands | ||||||
| USD | USD | USD | USD | USD | ||||||
| Revenues | 21,531 | 29,702 | 11,101 | 14,737 | 43,633 | |||||
| Cost of revenues | 13,731 | 16,447 | 7,151 | 8,180 | 24,943 | |||||
| Cost of revenues - write-down of inventories and impairment of assets recognized in business combination and technology | 3,219 | 194 | 370 | 62 | 4,639 | |||||
| Total cost of revenues | 16,950 | 16,641 | 7,521 | 8,242 | 29,582 | |||||
| Gross profit | 4,581 | 13,061 | 3,580 | 6,495 | 14,051 | |||||
| Research and development expenses | 36,235 | 35,636 | 18,365 | 16,386 | 75,763 | |||||
| Sales and marketing expenses | 19,423 | 15,703 | 10,115 | 8,217 | 38,833 | |||||
| General and administrative expenses | 13,949 | 23,355 | 7,207 | 12,322 | 30,457 | |||||
| Impairment losses on intangible assets | — | — | — | — | 40,523 | |||||
| Operating loss | (65,026 | ) | (61,633 | ) | (32,107 | ) | (30,430 | ) | (171,525 | ) |
| Finance income | 7,810 | 80,780 | 5,230 | 23,954 | 22,965 | |||||
| Finance expense | 16,835 | 6,442 | 13,431 | 2,852 | 79,471 | |||||
| Income (loss) before taxes on income | (74,051 | ) | 12,705 | (40,308 | ) | (9,328 | ) | (228,031 | ) | |
| Taxes (expenses) benefit | 789 | (152 | ) | 334 | (78 | ) | (264 | ) | ||
| Income (loss) for the period | (73,262 | ) | 12,553 | (39,974 | ) | (9,406 | ) | (228,295 | ) | |
| Loss attributable to non-controlling interests | (437 | ) | (550 | ) | (242 | ) | (287 | ) | (872 | ) |
| Income (loss) attributable to owners | (72,825 | ) | 13,103 | (39,732 | ) | (9,119 | ) | (227,423 | ) | |
| Income (loss) per share | ||||||||||
| Basic income (loss) per share | (0.28 | ) | 0.05 | (0.15 | ) | (0.04 | ) | (0.88 | ) | |
| Other comprehensive income items that after initial recognition in comprehensive income were or will be transferred to profit or loss | ||||||||||
| Foreign currency translation differences for foreign operations | (1,238 | ) | 597 | (1,006 | ) | 194 | (844 | ) | ||
| Other comprehensive income items that will not be transferred to profit or loss | ||||||||||
| Remeasurement of net defined benefit liability (IAS 19), net of tax | 3,127 | (1,060 | ) | 3,127 | (1,060 | ) | 2,508 | |||
| Total other comprehensive income (loss) for the period | 1,889 | (463 | ) | 2,121 | (866 | ) | 1,664 | |||
| Total comprehensive income (loss) for the period | (71,373 | ) | 12,090 | (37,853 | ) | (10,272 | ) | (226,631 | ) | |
| Comprehensive loss attributable to non-controlling interests | (488 | ) | (546 | ) | (278 | ) | (296 | ) | (892 | ) |
| Comprehensive income (loss) attributable to owners of the Company | (70,885 | ) | 12,636 | (37,575 | ) | (9,976 | ) | (225,739 | ) | |
Consolidated Statements of Changes in Equity (Unaudited)
(In thousands of USD)
| Share capital | Share premium and capital reserves | Remeasurement of IAS 19 | Treasury shares | Foreign currency translation reserve | Accumulated loss | Total | Non-controlling interests | Total equity | ||||||||
| Thousands | Thousands | Thousands | Thousands | Thousands | Thousands | Thousands | Thousands | Thousands | ||||||||
| For the six months ended June 30, 2023: | USD | USD | USD | USD | USD | USD | USD | USD | USD | |||||||
| Balance as of December 31, 2022 | 388,406 | 1,296,194 | 2,508 | (1,509 | ) | 583 | (536,657 | ) | 1,149,525 | 767 | 1,150,292 | |||||
| Investment of non-controlling party in subsidiary | — | — | — | — | — | — | — | 671 | 671 | |||||||
| Income for the period | — | — | — | — | — | 13,103 | 13,103 | (550 | ) | 12,553 | ||||||
| Other comprehensive income (loss) for the period | — | — | (1,060 | ) | — | 593 | — | (467 | ) | 4 | (463 | ) | ||||
| Exercise of warrants, options and conversion of convertible notes | 7,832 | (7,832 | ) | — | — | — | — | — | — | — | ||||||
| Repurchase of treasury shares | — | — | — | (23,259 | ) | — | — | (23,259 | ) | — | (23,259 | ) | ||||
| Share based payment acquired | — | (1,780 | ) | — | — | — | — | (1,780 | ) | — | (1,780 | ) | ||||
| Share-based Compensation | — | 11,542 | — | — | — | — | 11,542 | — | 11,542 | |||||||
| Balance as of June 30, 2023 | 396,238 | 1,298,124 | 1,448 | (24,768 | ) | 1,176 | (523,554 | ) | 1,148,664 | 892 | 1,149,556 | |||||
| Share capital | Share premium and capital reserves | Remeasurement of IAS 19 | Treasury shares | Foreign currency translation reserve | Accumulated loss | Total | Non-controlling interests | Total equity | ||||||||
| Thousands | Thousands | Thousands | Thousands | Thousands | Thousands | Thousands | Thousands | Thousands | ||||||||
| For the three months ended June 30, 2023: | USD | USD | USD | USD | USD | USD | USD | USD | USD | |||||||
| Balance as of March 31, 2023 | 389,943 | 1,300,781 | 2,508 | (19,901 | ) | 973 | (514,435 | ) | 1,159,869 | 578 | 1,160,447 | |||||
| Investment of non-controlling party in subsidiary | — | — | — | — | — | — | — | 610 | 610 | |||||||
| loss for the period | — | — | — | — | — | (9,119 | ) | (9,119 | ) | (287 | ) | (9,406 | ) | |||
| Other comprehensive income (loss) for the period | — | — | (1,060 | ) | — | 203 | — | (857 | ) | (9 | ) | (866 | ) | |||
| Exercise of warrants, options and conversion of convertible notes | 6,295 | (6,295 | ) | — | — | — | — | — | — | — | ||||||
| Repurchase of treasury shares | — | — | — | (4,867 | ) | — | — | (4,867 | ) | — | (4,867 | ) | ||||
| Share based payment acquired | — | (1,780 | ) | — | — | — | — | (1,780 | ) | — | (1,780 | ) | ||||
| Share-based Compensation | — | 5,418 | — | — | — | — | 5,418 | — | 5,418 | |||||||
| Balance as of June 30, 2023 | 396,238 | 1,298,124 | 1,448 | (24,768 | ) | 1,176 | (523,554 | ) | 1,148,664 | 892 | 1,149,556 | |||||
Consolidated Statements of Cash Flows (Unaudited)
(In thousands of USD)
| Six Months Ended June 30, | Three Months Ended June 30, | Year ended December 31 | ||||||||
| 2022 | 2023 | 2022 | 2023 | 2022 | ||||||
| Cash flow from operating activities: | ||||||||||
| Net income (loss) | (73,262 | ) | 12,553 | (39,974 | ) | (9,406 | ) | (228,295 | ) | |
| Adjustments: | ||||||||||
| Depreciation and amortization | 2,856 | 2,963 | 1,715 | 1,540 | 7,283 | |||||
| Impairment losses | — | — | — | — | 40,523 | |||||
| Financing (income) expenses, net | 12,555 | (17,622 | ) | 10,361 | (9,470 | ) | (1,769 | ) | ||
| Revaluation of financial liabilities accounted at fair value | (2,917 | ) | 485 | (1,547 | ) | 294 | (4,516 | ) | ||
| Revaluation of financial assets accounted at fair value | (613 | ) | (57,201 | ) | (613 | ) | (11,925 | ) | 62,791 | |
| Loss (gain) from disposal of property plant and equipment and right-of-use assets | (6 | ) | 345 | (3 | ) | 221 | 948 | |||
| Increase in deferred tax | (1,332 | ) | (95 | ) | (871 | ) | (92 | ) | (581 | ) |
| Share-based compensation | 19,337 | 11,542 | 9,214 | 5,418 | 32,563 | |||||
| Other | 113 | 68 | 19 | 23 | 166 | |||||
| 29,993 | (59,515 | ) | 18,275 | (13,991 | ) | 137,408 | ||||
| Changes in assets and liabilities: | — | |||||||||
| (Increase) decrease in inventory | (1,878 | ) | (1,212 | ) | (1,410 | ) | (667 | ) | (4,603 | ) |
| (Increase) decrease in other receivables | (297 | ) | 669 | 554 | 1,520 | (1,978 | ) | |||
| (Increase) decrease in trade receivables | (1,959 | ) | (6,039 | ) | 216 | (2,331 | ) | (1,992 | ) | |
| Increase (decrease) in other payables | 1,397 | (1,345 | ) | (327 | ) | (817 | ) | 5,281 | ||
| Increase (decrease) in employee benefits | 1,736 | (399 | ) | 588 | 162 | 1,497 | ||||
| Increase (decrease) in trade payables | 839 | (828 | ) | 110 | (2,633 | ) | 628 | |||
| (162 | ) | (9,154 | ) | (269 | ) | (4,766 | ) | (1,167 | ) | |
| Net cash used in operating activities | (43,431 | ) | (56,116 | ) | (21,968 | ) | (28,163 | ) | (92,054 | ) |
| Cash flow from investing activities: | ||||||||||
| Change in bank deposits | (46,491 | ) | (151,391 | ) | (24,584 | ) | 77,106 | 141,555 | ||
| Interest received | 2,491 | 17,998 | 1,729 | 6,706 | 17,465 | |||||
| Change in restricted bank deposits | (75 | ) | (34 | ) | (95 | ) | 237 | (327 | ) | |
| Acquisition of property plant and equipment | (4,539 | ) | (7,121 | ) | (2,564 | ) | (3,177 | ) | (9,388 | ) |
| Acquisition of subsidiaries, net of cash acquired | (18,159 | ) | — | (35 | ) | — | (31,057 | ) | ||
| Payment of a liability to pay a contingent consideration of business combination | (9,999 | ) | (9,255 | ) | (9,999 | ) | (5,295 | ) | (10,708 | ) |
| Acquisition of financial assets in fair value through profit and loss | (17,803 | ) | — | (17,803 | ) | — | (177,775 | ) | ||
| Decrease in deposit in escrow | — | — | — | — | 3,362 | |||||
| Other | — | — | — | — | (800 | ) | ||||
| Net cash from (used in) investing activities | (94,575 | ) | (149,803 | ) | (53,351 | ) | 75,577 | (67,673 | ) | |
| Cash flow from financing activities: | ||||||||||
| Lease payments | (1,881 | ) | (2,471 | ) | (1,085 | ) | (1,251 | ) | (4,151 | ) |
| Repayment long-term bank debt | (218 | ) | (96 | ) | (138 | ) | (39 | ) | (406 | ) |
| Proceeds from non-controlling interests | — | 550 | — | 550 | 510 | |||||
| Amounts recognized in respect of government grants liability, net | (93 | ) | (172 | ) | (48 | ) | (87 | ) | (221 | ) |
| Payments of share price protection recognized in business combination | (744 | ) | (1,780 | ) | (744 | ) | (1,780 | ) | (1,005 | ) |
| Repurchase of treasury shares | — | (19,741 | ) | — | (1,349 | ) | — | |||
| Net cash used in financing activities | (2,936 | ) | (23,710 | ) | (2,015 | ) | (3,956 | ) | (5,273 | ) |
| Increase (decrease) in cash | (140,942 | ) | (229,629 | ) | (77,334 | ) | 43,458 | (165,000 | ) | |
| Cash at beginning of the period | 853,626 | 685,362 | 788,141 | 412,172 | 853,626 | |||||
| Effect of exchange rate fluctuations on cash | (6,464 | ) | (1,178 | ) | (4,587 | ) | (1,075 | ) | (3,264 | ) |
| Cash at end of the period | 706,220 | 454,555 | 706,220 | 454,555 | 685,362 | |||||
| Non-cash transactions: | ||||||||||
| Property plant and equipment acquired on credit | 35 | 328 | (176 | ) | (148 | ) | 52 | |||
| Repurchase of treasury shares on credit | — | 3,518 | — | 3,518 | — | |||||
| Recognition of a right-of-use asset | 11,250 | 199 | 13 | 72 | 15,196 | |||||
| Acquisition of financial assets in fair value through profit and loss | 2,158 | — | 2,158 | — | — | |||||
Non-IFRS Measures
The following are reconciliations of income before taxes, as calculated in accordance with International Financial Reporting Standards (“IFRS”), to EBITDA and Adjusted EBITDA, as well as of gross profit, as calculated in accordance with IFRS, to Adjusted Gross Profit:
| For the Six-Months Period Ended June 30, | For the Three-Months Period Ended June 30, | |||
| 2023 | ||||
| In thousands of USD | In thousands of USD | |||
| Net income (loss) | 12,553 | (9,406 | ) | |
| Tax expenses | 152 | 78 | ||
| Depreciation and amortization | 2,963 | 1,540 | ||
| Interest income | (23,567 | ) | (12,047 | ) |
| EBITDA (loss) | (7,899 | ) | (19,835 | ) |
| Finance income from revaluation of assets and liabilities | (56,299 | ) | (11,522 | ) |
| Exchange rate differences | 5,475 | 2,430 | ||
| Share-based compensation expenses | 11,542 | 5,418 | ||
| Adjusted EBITDA (loss) | (47,181 | ) | (23,509 | ) |
| For the Six-Months Period Ended June 30, | For the Three-Months Period Ended June 30, | |||
| 2022 | 2023 | 2022 | 2023 | |
| Gross profit | 4,581 | 13,061 | 3,580 | 6,495 |
| Depreciation and amortization | 3,298 | 186 | 436 | 120 |
| Share-based compensation expenses | 743 | 812 | 419 | 390 |
| Adjusted gross profit | 8,622 | 14,059 | 4,435 | 7,005 |
EBITDA is a non-IFRS measure and is defined as income before taxes, excluding depreciation and amortization expenses and amortization of assets recognized in business combination and interest income. We believe that EBITDA, as described above, should be considered in evaluating the Company’s operations. EBITDA facilitates the Company’s performance comparisons from period to period and company to company by backing out potential differences caused by variations in capital structures, and the age and depreciation charges and amortization of fixed and intangible assets, respectively (affecting relative depreciation and amortization expense, respectively), and EBITDA is useful to an investor in evaluating our operating performance because it is widely used by investors, securities analysts and other interested parties to measure a company’s operating performance without regard to the items mentioned above.
Adjusted EBITDA is a non-IFRS measure and is defined as income before taxes, excluding depreciation and amortization expenses and amortization of assets recognized in business combination, interest income, finance income for revaluation of assets and liabilities, exchange rate differences and share-based payments. We believe that Adjusted EBITDA, as described above, should also be considered in evaluating the Company’s operations. Like EBITDA, Adjusted EBITDA facilitates the Company’s performance comparisons from period to period and company to company by backing out potential differences caused by variations in capital structures, and the age and depreciation charges and amortization of fixed and intangible assets, respectively (affecting relative depreciation and amortization expense, respectively), as well as from revaluation of assets and liabilities, exchange rate differences and share-based payment expenses. Adjusted EBITDA is useful to an investor in evaluating our operating performance because it is widely used by investors, securities analysts and other interested parties to measure a company’s operating performance without regard to non-cash items, such as expenses related to revaluation, exchange rate differences and share-based payments.
Adjusted gross profit, excluding depreciation and amortization and share-based compensation expenses, is a non-IFRS measure and is defined as gross profit excluding amortization expenses. We believe that adjusted gross profit, as described above, should also be considered in evaluating the Company’s operations. Adjusted gross profit facilitates gross profit and gross margin comparisons from period to period and company to company by backing out potential differences caused by variations in amortization of inventory and intangible assets. Adjusted gross profit is useful to an investor in evaluating our performance because it enables investors, securities analysts and other interested parties to measure a company’s performance without regard to non-cash items, such as amortization expenses. Adjusted gross margin is calculated by dividing the adjusted gross profit by the revenues.
EBITDA, Adjusted EBITDA, and Adjusted gross profit do not represent cash generated by operating activities in accordance with IFRS and should not be considered alternatives to net income (loss) as indicators of our operating performance or as measures of our liquidity. These measures should be considered in conjunction with net income (loss) as presented in our consolidated statements of profit or loss and other comprehensive income. Other companies may calculate these measures differently than we do.
