Gross Margin Grew 41%; 45% vs. 32% Year-Over-Year
Q4/2023 Revenue Grew 19% vs. Q4/2022
Conference Call to be Held Today at
Revenue
- Q4/2023:
$14 .5 million, up 19% compared to Q4/ 2022 - FY 2023:
$56 .3 million, up 29% compared to FY 2022
Gross Margin (“GM”)
- FY 2023: 45%; up 41% from 32% in FY 2022
Adjusted1 Gross Margin (“Adjusted GM”)
- FY 2023: 48%; vs. 46% in FY 2022
Net Cash Burn² down 42% from 2022 to 2023:
- FY 2022:
$146 million - FY 2023:
$84 million - FY 2024:
$12-20 million EXPECTED, as a result of Q4/22 Reshaping Nano Initiative (the “Initiative”)
Details regarding Adjusted EBITDA and adjusted gross margin can be found below in this press release under “Non-IFRS Measures.”
CEO MESSAGE TO SHAREHOLDERS:
We would like to update you - our shareholders and prospective shareholders - with additional perspective on our continued record performance, organizational changes, and an outlook on exciting times to come.
To start with – we want to emphasize that in contrast to many hi-tech corporations’ reporting results, especially industries like AM / 3D printing where no public company is profitable and most are shrinking in revenues – we relate to this document as well as to our “results” conference calls, as their name indicates: Update on Financial Results, with minimal “cosmetics” such as pictures and graphics of exciting products and the machines that manufacture them. Most of those can be found on our website: www.nano-di.com, which all of you are invited to visit and see.
“Reshaping Nano” Beyond Revenue and Gross Margin
After much focus on revenue over the last 2-4 years, the market is returning to some element of reasonableness in the realigning of attention around the bottom-line. In this spirit, the Initiative was launched in mid-Q4/2023 and is critical as we reorient our financial objectives. It is specifically designed to enable
This Initiative has produced an estimated annualized savings of
It is important to note that while we are not yet delivering a positive bottom-line now, it is a choice based on our capital allocation to secure R&D innovation and establish go-to-market channels and customer relationships. We are positioning ourselves with a sharp focus on gross margin. It grew to 45%. This improvement indicates our clear direction toward a goal of over 50% gross margin, preferably close to 60%. At that level, we expect to be profitable. From there onward, we expect to see savings in operating expenses.
Customer and R&D Successes
In 2023, we saw numerous customer success stories. These are evident in new relationships with customers such as:
- Sales to NASA,
- Repeat sales to the
Fraunhofer Institute , - Sales to one of the world’s largest computer hardware companies,
- Sales to Western Armies,
- Sales to Western Secret Services,
- Sales to other defense establishments,
- Multi-system sale that resulted in our largest single order ever.
Moreover, we are seeing these customer success stories across our product portfolio – from our systems for AME to micro-AM to AE robotics.
We are hearing from our customers more frequently with excitement relating to our deep learning-based AI capabilities. This is especially on the back of our announced efforts to develop our industrial AI solution from our
Comparable to the importance of our AI work are our breakthroughs in material science, specifically relating to our INSU™ 200 dielectric material for AME, which was announced in the end of 2023 and a patent application has been filed in 2024. This material is critical for use to AME as it enables the printed PCB to go through critical processes that ultimately improve its thermo-mechanical properties. This, in effect, opens tremendous new business opportunities.
The Financial Engine Continues to Run
More than ever, we are shaping our decisions around the aforementioned bottom-line, but top-line is critical to enable success. Fortunately,
Stewards Responsible to Shareholders
2023 was a year in which we had constant engagement with shareholders, especially leading up to our Annual General Meeting which occurred on
Even with that continued mandate, we made proactive changes to our Board of Directors. Firstly, we separated the Chairman and CEO function with me stepping down as Chairman, while continuing to serve as a director. The Company and its shareholders should be enthralled to have Dr.
Secondly, we are honored to have a new voice on the board with 4-Star General
The Capital is Yours
Since raising
We have most often spoken about capital allocation through two channels. The first is organic investment, namely R&D and go-to-market. The second is inorganic, specifically mergers & acquisitions (“M&A”). But there is a third option: return capital to shareholders, while improving Nano’s enterprise value. We have done just that to a notable extent with a share buyback program, for approximately
Time for CONSOLIDATION
M&A has long been part of our strategy as evident by our seven acquisitions since
In another deviation from the financial reports of all AM industry public companies – we do not see systemic reduced demands for our products. What we do identify are too many AM companies without the gross margins that fit the required R&D, machine building, and marketing budgets. The systemic lack of profitability is a result of overcrowded domain which was over-financed and over-valued by the 2021 SPAC-and-micro-cap-markets-and-small-AM-companies-MANIA. None of them are selling in a synergistic manner, none of them have focused on solving well defined and large yet coherent applications domains and vertical markets. The results are companies that sell, by a single corporation as an example, to the following markets: dental, defense, aerospace, medical body parts, medical instruments, consumer product and more. And those are pretty much all the companies that are large enough in AM and all burning cash annually while being left with ever shrinking reserves.
The solution for zero profits of the more than dozens of AM companies over the last few years is only one: consolidation. This general realignment will in turn increase our competitive advantage, increase gross margins, and focus on synergetic business lines rather than “We sell everything to everyone as long as it is 3D printing machine and/or material.”
The market is prime for consolidation, and we are positioned to be one of its main leaders.
It isn’t just about acquisitions because we have the capital, but also at compelling valuations that will drive an ROI for our shareholders, and proper merger and amalgamation of the management teams and rationalizing the product lines and go-to-market networks.
There are many great, albeit imperfect, companies in the AM industry. Great in that they have cutting edge technologies and meaningful customer relationships with our own customers and industry verticals. Imperfect in that for any number of reasons they have, poor business models that drive high costs, which have consumed the lion’s share of the capital that many of them raised. This is a unique and tremendous opportunity for
With close to
Bottom line: Nano is the only company that grew, and substantially so; this year 29% organically vs. 2022 when we generated
We aim for go-to-market led consolidation AM/3D Printing and materials companies. This is the only way to accelerate toward profitability as fast as possible. If we can complete this M&A strategy as soon as we can at reasonable prices, we shall see a
Thank you for your support.
Chief Executive Officer and Member of the Board of Directors
FINANCIAL RESULTS:
Fourth Quarter 2023 Financial Results
- Total revenues for the fourth quarter of 2023 were
$14,454,000 , compared to$12,158,000 in the third quarter of 2023, and$12,104,000 in the fourth quarter of 2022. The increase is attributed mostly to increased and more effective sales efforts across the Company’s product lines. - Cost of revenues excluding write-down of inventories and amortization of assets recognized in business combination and technology for the fourth quarter of 2023 was
$7,358,000 , compared to$6,739,000 in the third quarter of 2023, and$3,784,000 in the fourth quarter of 2022. The increase resulted primarily from the above-mentioned increase in revenues. - Research and development (R&D) expenses for the fourth quarter of 2023 were
$13,580,000 , compared to$12,788,000 in the third quarter of 2023, and$20,993,000 in the fourth quarter of 2022. The increase compared to the third quarter of 2023 is mainly attributed to an increase in payroll and subcontractors expenses. The decrease compared to the fourth quarter of 2022 is mainly attributed to a decrease in materials, share-based payments, payroll expenses and subcontractors expenses. - Sales and marketing (S&M) expenses for the fourth quarter of 2023 were
$8,289,000 , compared to$7,715,000 in the third quarter of 2023, and$9,758,000 in the fourth quarter of 2022. The increase compared to the third quarter of 2023 is mainly attributed to an increase in marketing and other expenses, partially offset by a decrease in share-based payments. The decrease compared to the fourth quarter of 2022 is mainly attributed to a decrease in share-based payments expenses. - General and administrative (G&A) expenses for the fourth quarter of 2023 were
$14,051,000 , compared to$20,848,000 in the third quarter of 2023, and$9,091,000 in the fourth quarter of 2022. The decrease compared to the third quarter of 2023 is mainly attributed to a decrease in professional services expenses, mainly from proxy contest related expenses, including the matters relating to activist shareholders and ADS holders, such as proxy advisory, voting, and litigation. The increase compared to the third quarter of 2022 is mainly attributed to an increase in professional services, from the same aforementioned reasons and share-based payments expenses.
Other income, net for the fourth quarter of 2023 was$1,627,000 , compared to$0 for third quarter of 2023, same as for the third quarter of 2023. The increase was attributed to additional compensation from government authorities for damaged inventory, less reorganization costs which we incurred during 2023.
- Impartment losses for the fourth quarter of 2022, were
$40,523,000 . In 2023, no impairment losses were recognized. - Net loss attributed to owners for the fourth quarter of 2023 was
$1,049,000 , or$0.01 loss per share, compared to net loss of$66,604,000 , or$0.26 loss per share, in the third quarter of 2023, and net loss of$87,667,000 , or$0.34 loss per share, in the fourth quarter of 2022.
Year Ended
- Total revenues for the year ended
December 31, 2023 , were$56,314,000 , compared to$43,633,000 in the year endedDecember 31, 2022 . The increase is attributed mostly to increased and more effective sales efforts across our product lines. - Cost of revenues excluding write-down of inventories and amortization of assets recognized in business combination and technology for the year ended
December 31, 2023 , was$30,759,000 , compared to$24,943,000 in the year endedDecember 31, 2022 . The increase resulted primarily from the above-mentioned increase in revenues. - R&D expenses for the year ended
December 31, 2023 , were$62,004,000 , compared to$75,763,000 for the year endedDecember 31, 2022 . The decrease is attributed to a decrease of$9,702,000 in share-based payments expenses, as well as a decrease of$3,627,000 in subcontractors’ expenses and a decrease of$2,176,000 in payroll and related expenses. - S&M expenses for the year ended
December 31, 2023 , were$31,707,000 , compared to$38,833,000 for the year endedDecember 31, 2022 . The decrease resulted primarily from a decrease of$6,126,000 in share-based payments expenses and a decrease of$982,000 in payroll and related expenses. - G&A expenses for the year ended
December 31, 2023 , were$58,254,000 , compared to$30,457,000 for the year endedDecember 31, 2022 . The increase resulted primarily from an increase of$19,421,000 in professional services, mainly from proxy contest related expenses, including the matters relating to activist shareholders and ADS holders, such as proxy advisory, voting, and litigation, as well as an increase of$4,711,000 in payroll and related expenses and an increase of$3,508,000 in share-based payments expenses. - Other income, net for the year ended
December 31, 2023 , was$1,627,000 compared to$0 for the year endedDecember 31, 2022 . The increase was attributed to additional compensation from government authorities for damaged inventory, less reorganization costs which we incurred during 2023. - Impairment losses for the year ended
December 31, 2022 , were$40,523,000 . In 2023, no impairment losses were recognized. - Net loss attributed to the owners for the year ended
December 31, 2023 , was$54,550,000 , or$0.22 per share, compared to loss of$227,423,000 , or$0.88 per share, for the year endedDecember 31, 2022 .
Balance Sheet Highlights
- Cash and cash equivalents, together with short unrestricted bank deposits totaled
$851,538,000 as ofDecember 31, 2023 , compared to$1,032,025,000 as ofDecember 31, 2022 . - Total shareholders’ equity totaled to
$1,015,786,000 as ofDecember 31, 2023 , compared to$1,150,292,000 as ofDecember 31, 2022 .
CONFERENCE CALL INFORMATION:
Mr.
Participants can register for the conference by navigating to:
https://dpregister.com/sreg/10186876/fbb757cdc0
The call can be accessed via webcast link or phone as detailed below.
For webcast link:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=3Z1noPJV
For phone:
International Dial-in Number: 1-412-902-6751
Israel Dial-in Number (Toll Free): 1-80-9212373
Participants will be required to state their name and company upon entering the call.
A replay will be available after the end of the conference call on Nano Dimension’s website.
About
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.
Through the integration of its portfolio of products,
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 INVESTOR RELATIONS CONTACT
Consolidated Statements of Financial Position as at (In thousands of | |||||
2022 | 2023 | ||||
Assets | |||||
Cash and cash equivalents | 685,362 | 309,571 | |||
Bank deposits | 346,663 | 541,967 | |||
Restricted deposits | 60 | 60 | |||
Trade receivables | 6,342 | 12,710 | |||
Other receivables | 6,491 | 11,290 | |||
Inventory | 19,400 | 18,390 | |||
Total current assets | 1,064,318 | 893,988 | |||
Restricted deposits | 850 | 881 | |||
Investment in securities | 114,984 | 138,446 | |||
Deferred tax | 115 | — | |||
Other receivables | 809 | — | |||
Property plant and equipment, net | 5,843 | 16,716 | |||
Right-of-use assets | 16,539 | 12,072 | |||
Intangible assets | — | 2,235 | |||
Total non-current assets | 139,140 | 170,350 | |||
Total assets | 1,203,458 | 1,064,338 | |||
Liabilities | |||||
Trade payables | 3,722 | 4,696 | |||
Financial derivatives and deferred consideration | 8,798 | — | |||
Other payables | 24,150 | 29,738 | |||
Current portion of other long-term liability | 363 | 38 | |||
Total current liabilities | 37,033 | 34,472 | |||
Liability in respect of government grants | 1,492 | 1,895 | |||
Employee benefits | 1,462 | 2,773 | |||
Liability in respect of warrants | 69 | — | |||
Lease liability | 12,374 | 8,742 | |||
Deferred tax liabilities | — | 75 | |||
Loan from banks | 736 | 595 | |||
Total non-current liabilities | 16,133 | 14,080 | |||
Total liabilities | 53,166 | 48,552 | |||
Equity | |||||
Non-controlling interests | 767 | 1,011 | |||
Share capital | 388,406 | 400,700 | |||
Share premium and capital reserves | 1,296,194 | 1,299,542 | |||
(1,509 | ) | (97,896 | ) | ||
Foreign currency translation reserve | 583 | 2,929 | |||
Remeasurement of net defined benefit liability (IAS 19) | 2,508 | 707 | |||
Accumulated loss | (536,657 | ) | (591,207 | ) | |
Equity attributable to owners of the Company | 1,149,525 | 1,014,775 | |||
Total equity | 1,150,292 | 1,015,786 | |||
Total liabilities and equity | 1,203,458 | 1,064,338 | |||
Consolidated Statements of Profit or Loss and Other Comprehensive Income (In thousands of | |||||||||||
For the year ended | Three Months Ended | ||||||||||
2022 | 2023 | 2022 | 2023 | ||||||||
Revenues | 43,633 | 56,314 | 12,104 | 14,454 | |||||||
Cost of revenues | 24,943 | 30,759 | 3,784 | 7,358 | |||||||
Cost of revenues - write-down of inventories and amortization of assets recognized in business combination and technology | 4,639 | 97 | 649 | 68 | |||||||
Total cost of revenues | 29,582 | 30,856 | 4,433 | 7,426 | |||||||
Gross profit | 14,051 | 25,458 | 7,671 | 7,028 | |||||||
Research and development expenses | 75,763 | 62,004 | 20,993 | 13,580 | |||||||
Sales and marketing expenses | 38,833 | 31,707 | 9,758 | 8,289 | |||||||
General and administrative expenses | 30,457 | 58,254 | 9,091 | 14,051 | |||||||
Other income, net | — | 1,627 | — | 1,627 | |||||||
Impairment losses on intangible assets | 40,523 | — | 40,523 | — | |||||||
Operating loss | (171,525 | ) | (124,880 | ) | (72,694 | ) | (27,265 | ) | |||
Finance income | 22,965 | 70,934 | 11,105 | 26,904 | |||||||
Finance expenses | 79,471 | 1,652 | 25,305 | 796 | |||||||
Loss before taxes on income | (228,031 | ) | (55,598 | ) | (86,894 | ) | (1,157 | ) | |||
Taxes expenses | (264 | ) | (62 | ) | (1,006 | ) | (183 | ) | |||
Loss for the period | (228,295 | ) | (55,660 | ) | (87,900 | ) | (1,340 | ) | |||
Loss attributable to non-controlling interests | (872 | ) | (1,110 | ) | (233 | ) | (291 | ) | |||
Loss attributable to owners | (227,423 | ) | (54,550 | ) | (87,667 | ) | (1,049 | ) | |||
Loss per share | |||||||||||
Basic loss per share | (0.88 | ) | (0.22 | ) | (0.34 | ) | (0.01 | ) | |||
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 | (844 | ) | 2,368 | 1,507 | 2,024 | ||||||
Other comprehensive income items that will not be transferred to profit or loss | |||||||||||
Remeasurement of net defined benefit liability (IAS 19), net of tax | 2,508 | (1,801 | ) | (619 | ) | (741 | ) | ||||
Total other comprehensive income for the period | 1,664 | 567 | 888 | 1,283 | |||||||
Total comprehensive loss for the period | (226,631 | ) | (55,093 | ) | (87,012 | ) | (57 | ) | |||
Comprehensive loss attributable to non-controlling interests | (892 | ) | (1,088 | ) | (157 | ) | (258 | ) | |||
Comprehensive loss attributable to owners of the Company | (225,739 | ) | (54,005 | ) | (86,855 | ) | 201 | ||||
Consolidated Statements of Changes in Equity (Unaudited) (In thousands of | ||||||||||||||||||
Share capital | Share premium and capital reserves | Remeasurement of IAS 19 | Foreign currency translation reserve | Accumulated loss | Total | Non-controlling interests | Total equity | |||||||||||
For the year ended | ||||||||||||||||||
Balance as of | 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 | — | — | — | — | — | — | — | 1,332 | 1,332 | |||||||||
Loss for the year | — | — | — | — | — | (54,550 | ) | (54,550 | ) | (1,110 | ) | (55,660 | ) | |||||
Other comprehensive income (loss) for the year | — | — | (1,801 | ) | — | 2,346 | — | 545 | 22 | 567 | ||||||||
Exercise of warrants, options and vesting of RSUs | 12,294 | (12,294 | ) | — | — | — | — | — | — | — | ||||||||
Repurchase of treasury shares | — | — | — | (96,387 | ) | — | — | (96,387 | ) | — | (96,387 | ) | ||||||
Share-based payment acquired | — | (4,459 | ) | — | — | — | — | (4,459 | ) | — | (4,459 | ) | ||||||
Share-based payments | — | 20,101 | — | — | — | — | 20,101 | — | 20,101 | |||||||||
Balance as of | 400,700 | 1,299,542 | 707 | (97,896 | ) | 2,929 | (591,207 | ) | 1,014,775 | 1,011 | 1,015,786 |
Share capital | Share premium and capital reserves | Remeasurement of IAS 19 | Foreign currency translation reserve | Accumulated loss | Total | Non-controlling interests | Total equity | |||||||||||
For the three months ended | ||||||||||||||||||
Balance as of | 399,327 | 1,299,303 | 1,448 | (89,375 | ) | 938 | (590,158 | ) | 1,021,483 | 660 | 1,022,143 | |||||||
Investment of non-controlling party in subsidiary | — | — | — | — | — | — | — | 609 | 609 | |||||||||
Loss for the year | — | — | — | — | — | (1,049 | ) | (1,049 | ) | (291 | ) | (1,340 | ) | |||||
Other comprehensive loss for the period | — | — | (741 | ) | — | 1,991 | — | 1,250 | 33 | 1,283 | ||||||||
Exercise of warrants, options and vesting of RSUs | 1,373 | (1,373 | ) | — | — | — | — | — | — | — | ||||||||
Repurchase of treasury shares | — | — | — | (8,521 | ) | — | — | (8,521 | ) | — | (8,521 | ) | ||||||
Share based payment acquired | — | (2,679 | ) | — | — | — | — | (2,679 | ) | — | (2,679 | ) | ||||||
Share-based payments | — | 4,291 | — | — | — | — | 4,291 | — | 4,291 | |||||||||
Balance as of | 400,700 | 1,299,542 | 707 | (97,896 | ) | 2,929 | (591,207 | ) | 1,014,775 | 1,011 | 1,015,786 | |||||||
Consolidated Statements of Cash Flows (In thousands of | |||||||||||
For the Year Ended | Three Months Ended | ||||||||||
2022 | 2023 | 2022 | 2023 | ||||||||
Cash flow from operating activities: | |||||||||||
Net loss | (228,295 | ) | (55,660 | ) | (87,900 | ) | (1,340 | ) | |||
Adjustments: | |||||||||||
Depreciation and amortization | 7,283 | 6,544 | 1,199 | 1,993 | |||||||
Impairment losses | 40,523 | — | 40,523 | — | |||||||
Financing income net | (1,769 | ) | (46,281 | ) | (10,858 | ) | (19,606 | ) | |||
Revaluation of financial liabilities accounted at fair value | (4,516 | ) | 461 | 335 | (7 | ) | |||||
Revaluation of financial assets accounted at fair value | 62,791 | (23,462 | ) | 24,723 | (6,495 | ) | |||||
Loss (gain) from disposal of property plant and equipment and right-of-use assets | 948 | 326 | 857 | (7 | ) | ||||||
(Increase) decrease in deferred tax | (581 | ) | (11 | ) | 860 | 84 | |||||
Share-based payments | 32,563 | 20,101 | 5,926 | 4,291 | |||||||
Other | 166 | 164 | 45 | 43 | |||||||
137,408 | (42,158 | ) | 63,610 | (19,704 | ) | ||||||
Changes in assets and liabilities: | — | ||||||||||
(Increase) decrease in inventory | (4,603 | ) | (340 | ) | (1,219 | ) | 2,913 | ||||
Increase in other receivables | (1,978 | ) | (5,775 | ) | (5,552 | ) | (7,434 | ) | |||
Increase in trade receivables | (1,992 | ) | (5,603 | ) | (231 | ) | (1,652 | ) | |||
Increase in other payables | 5,281 | 4,856 | 3,948 | 1,948 | |||||||
Increase (decrease) in employee benefits | 1,497 | (1,478 | ) | 396 | (486 | ) | |||||
Increase (decrease) in trade payables | 628 | 1,089 | 670 | (3,653 | ) | ||||||
(1,167 | ) | (7,251 | ) | (1,988 | ) | (8,364 | ) | ||||
Net cash used in operating activities | (92,054 | ) | (105,069 | ) | (26,278 | ) | (29,408 | ) | |||
Cash flow from investing activities: | |||||||||||
Change in bank deposits | 141,555 | (189,060 | ) | 328,967 | (152,044 | ) | |||||
Interest received | 17,465 | 41,529 | 12,831 | 11,725 | |||||||
Change in restricted bank deposits | (327 | ) | (27 | ) | (311 | ) | 11 | ||||
Acquisition of property plant and equipment | (9,388 | ) | (9,098 | ) | (3,329 | ) | (32 | ) | |||
Acquisition of intangible asset | — | (1,524 | ) | — | — | ||||||
Acquisition of subsidiaries, net of cash acquired | (31,057 | ) | — | 1 | — | ||||||
Payment of a liability for contingent consideration in a business combination | (10,708 | ) | (9,255 | ) | — | — | |||||
Acquisition of financial assets in fair value through profit and loss | (177,775 | ) | — | — | — | ||||||
Decrease in deposit in escrow | 3,362 | — | 3,362 | — | |||||||
Other | (800 | ) | 835 | (800 | ) | 835 | |||||
Net cash from (used in) investing activities | (67,673 | ) | (166,600 | ) | 340,721 | (139,505 | ) | ||||
Cash flow from financing activities: | |||||||||||
Lease payments | (4,151 | ) | (4,823 | ) | (1,063 | ) | (1,183 | ) | |||
Repayment long-term bank debt | (406 | ) | (536 | ) | (103 | ) | (343 | ) | |||
Proceeds from non-controlling interests | 510 | 1,089 | — | 539 | |||||||
Amounts recognized in respect of government grants liability | (221 | ) | (298 | ) | (89 | ) | (73 | ) | |||
Payments of share price protection recognized in business combination | (1,005 | ) | (4,459 | ) | (261 | ) | (2,679 | ) | |||
Repurchase of treasury shares | — | (96,387 | ) | — | (10,661 | ) | |||||
Net cash used in financing activities | (5,273 | ) | (105,414 | ) | (1,516 | ) | (14,400 | ) | |||
Increase (decrease) in cash and cash equivalents | (165,000 | ) | (377,083 | ) | 312,927 | (183,313 | ) | ||||
Cash and cash equivalents at beginning of the year | 853,626 | 685,362 | 370,197 | 489,323 | |||||||
Effect of exchange rate fluctuations on cash | (3,264 | ) | 1,292 | 2,238 | 3,561 | ||||||
Cash and cash equivalents at end of the year | 685,362 | 309,571 | 685,362 | 309,571 | |||||||
Non-cash transactions: | |||||||||||
Intangible asset acquired on credit | — | 711 | — | — | |||||||
Property plant and equipment acquired on credit | 52 | 214 | (457 | ) | 515 | ||||||
Repurchase of treasury shares on credit | — | — | — | (2,140 | ) | ||||||
Recognition of a right-of-use asset | 15,196 | 929 | 3,660 | 730 | |||||||
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:
Year Ended 2023 | Three-Months Period Ended 2023 | ||||
(In thousands of USD) | |||||
Net loss | (55,660 | ) | (1,340 | ) | |
Tax expenses | 62 | 183 | |||
Depreciation | 6,544 | 1,993 | |||
Interest income | (45,904 | ) | (11,329 | ) | |
EBITDA (loss) | (94,958 | ) | (10,493 | ) | |
Finance income from revaluation of assets and liabilities | (21,887 | ) | (5,748 | ) | |
Exchange rate differences | (1,571 | ) | (9,061 | ) | |
Share-based payments expenses | 20,101 | 4,291 | |||
Other extraordinary income, net | (1,627 | ) | (1,627 | ) | |
Adjusted EBITDA (loss) | (99,942 | ) | (22,638 | ) | |
Gross profit | 25,458 | 7,028 | |||
Depreciation | 390 | 115 | |||
Share-based payments | 1,434 | 245 | |||
Adjusted gross profit | 27,282 | 7,388 | |||
EBITDA is a non-IFRS measure and is defined as income before taxes, excluding depreciation and amortization expenses 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 earnings before other financial income, income tax, depreciation and amortization, share-based payments and other extraordinary income, net, which consists of additional compensation for damaged inventory, less reorganization costs (see Notes 6 and 18(C) to our financial statements). Other financial expense (income), net includes exchange rate differences as well as finance income for revaluation of assets and liabilities. We believe that Adjusted EBITDA, as described above, should also be considered in evaluating the company’s operations. Like EBITDA, Adjusted EBITDA facilitates operating performance comparisons from period to period and company to company by backing out potential differences caused by variations in capital structures (affecting other financial expenses (income), net), 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 share-based payment expenses, and 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 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.
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1 Excluding cost of revenues from depreciation and amortization and share-based payments expenses.
² Decrease in cash, cash equivalents and deposits (2023:
Source:
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