The 3D printing industry is positioned to deliver explosive growth reaching 10x market size in the decade.

A 3D printing unicorn is ready to revolutionize the space.

Time for a breakdown

1}Desktop Metal $DM was co-founded in 2015 by Ric Fulop and five founders to make 3D printing accessible to engineers, designers, and manufacturers.

- 4/5 founders are MIT Professors
- 25+ employees with PhDs
- 120+ patents filed/pending

2}The company delivers a solution that starts from product development to ultimately mass production across various industries.

This makes it the FIRST 3D company that is focused on volume production of end-use parts instead of just design and prototyping.

3}The global manufacturing industry is a $12.8 trillion monster that has some limitation due to conventional machining methods.

- High upfront costs of tools/equipments
- Long lead times for design & production
- Design limitations
- Lack of customization
- Waste

4}Research presented from @ARKInvest shows that 3D printing will revolutionize the manufacturing industry and grow to $97B by 2024.

- 3D Printing 1.0 was focused on design and prototyping
- 3D Printing 2.0 will focus on mass production and end-use parts.

5} $DM is positioned well to be a leader in the $490B end-use parts market which as 1% penetration. They will build a $10B+ 3D Printing 2.0 company delivering:

- Design Flexibility
- Mass Production
- Sustainability
- End-Use Production
- Domestic supply chain

6} The top five phrases in the investor conference call in August:

1. Additive manufacturing
2. Mass production
3. Production system
4. Distribution network
5. Entire product lifestyle

7}Desktop Metal delivers the following platforms to become a market leader:

- Production System: first 3D printing system for mass production: H2 2021
- Studio System: first office-friendly 3D printing system: shipping since Q4 2018 (86% of revenue)
- Shop system & Fiber

8}Desktop Metal competes with HP, Stratasys, Digital Metal, 3DEO, ExOne.

- HP has metal 3D printing systems in development
- The company has 90+ reservations for its Production system. With current economic conditions, there is risk of not converting them into orders.

9}Desktop Metal has the following moats:

- Technology: three core key print process innovations with 120+ patents filed/pending
- Team: founder-led with vast experience as engineers
- Global Distribution Network: 80 resellers across 60 countries

10}The company is positioned to dominate the space.

- Revenue - 2025E: $941.5M (211.6% CAGR)
- Gross Profit – 2025E: $508.3M (54.0%)
- Adj EBITDA – 2025E: $268.2M (28.5% margin)
- Free Cash Flow – 2025E: $230.5M (200% CAGR)
- EV / Revenue – 2025E: 1.9x

11}Desktop Metal plans to grow with the following strategies:

- Strategic Acquisitions: 10+ opportunities under contract & 60+ opportunities ~$2B opportunity
- Distribution Channels: Expansion to Asia and Africa. Current revenue in Asia-Pacific is 11%

12}Desktop Metal has a $1.8B EV and supported by world-class investors and operators such as @LeoHindery, @MillerValue, @chamath.

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