Fathom Digital Manufacturing Reports First Quarter 2022 Financial Results

First Quarter 2022 Highlights

  • Revenue increased 32.8% to $40.5 million
  • Total orders increased 17% to $43.8 million
  • Net income totaled $17.8 million; adjusted net loss1 totaled $2.0 million
  • Adjusted EBITDA1 was $6.2 million, representing an Adjusted EBITDA margin1 of 15.2%
  • Reaffirmed financial guidance for full year 2022

HARTLAND, Wis. — (BUSINESS WIRE) — May 15, 2022Fathom Digital Manufacturing Corp. (NYSE: FATH), an industry leader in on-demand digital manufacturing services, today announced financial results for the three months ended March 31, 2022.

 

Three Months Ended

($ in thousands)

3/31/2022

3/31/2021

Revenue

$40,541

$30,534

Net income (loss)

$17,839

$(500)

Adjusted net income (loss)1

$(1,984)

$2,060

Adjusted EBITDA1

$6,178

$7,709

Adjusted EBITDA margin1

15.2%

25.2%

1

See “Non-GAAP Financial Information.” Reconciliations of non-GAAP financial measures are included in the appendix

“Fathom delivered positive results in its first full quarter as a public company,” said Ryan Martin, Fathom Chief Executive Officer. “We are an industry pioneer with a history of profitability and cash generation, and extended this tradition in Q1 as we continue to benefit from the strong demand for our broad capabilities in the fast-growing digital manufacturing market. During the first quarter, which is typically our lowest quarter of the year, our order volumes increased 17% and contributed to revenue growth of approximately 33%. We also reported Adjusted EBITDA of $6.2 million consistent with our differentiated business model. As we have moved into the second quarter, we have seen increased quarter-over-quarter growth in-line with our full year forecast, which remains unchanged.”

Summary of Financial Results

Revenue for the first quarter of 2022 was $40.5 million compared to $30.5 million in the first quarter of 2021, an increase of 32.8%. The year-over-year growth was driven by an increase in the volume of customers served, primarily through acquisition-related activity, and growth within Fathom’s strategic accounts partially offset by lower sales due to production disruptions from the spread of the Omicron variant and Covid-related supply chain disruptions in the first quarter.

Gross profit for the first quarter of 2022 totaled $12.0 million, or 29.6% of revenue, compared to $13.4 million, or 43.9% of revenue, in the first quarter of 2021. Excluding approximately $3.5 million in non-cash purchase accounting adjustments following the completion of Fathom’s business combination on December 23, 2021, gross profit in the first quarter of 2022 would have been $15.5 million, or 38.2% of revenue.

Net income for the first quarter of 2022 was $17.8 million compared to a net loss of $0.5 million in the first quarter of 2021. Excluding acquisition costs, stock compensation expense, the revaluation of Fathom warrants and earnout shares, and other costs, Fathom reported an adjusted net loss in the first quarter of 2022 of $2.0 million compared to adjusted net income of $2.1 million for the same period in 2021.

Adjusted EBITDA for the first quarter of 2022 was $6.2 million versus $7.7 million for the same period in 2021 primarily due to the incurrence of public company expenses totaling approximately $3.6 million, of which approximately $1.3 million was non-recurring. The Adjusted EBITDA margin in the quarter was 15.2% compared to 25.2% in the first quarter of 2021.

2022 Outlook

Fathom reiterated its financial guidance for the full year 2022. The company expects revenue to range between $182 million and $192 million, representing year-over-year growth of approximately 20% to 26%. Fathom also expects Adjusted EBITDA to range between $40 million and $45 million, representing a year-over-year increase of approximately 16% to 31% and an implied Adjusted EBITDA margin of 22.0% to 23.4%. This outlook, as of May 16, 2022, reflects management’s current projections and macroeconomic outlook, and excludes the impact of any potential new acquisitions.

Conference Call

Fathom will host a conference call on Monday, May 16, 2022, at 8:30 am Eastern Time. The dial-in number for callers in the U.S. is +1-844-200-6205 and the dial-in number for international callers is +1-929-526-1599. The access code for all callers is 723631. The conference call will be broadcast live over the Internet and include a slide presentation. To access the webcast and supporting materials, please visit the investor relations section of Fathom’s website at https://investors.fathommfg.com.

A replay of the conference call can be accessed through May 30, 2022, by dialing +1-866-813-9403 (US) or +1-226-828-7578 (international), and then entering the access code 819382. The webcast will also be archived on Fathom’s website.

About Fathom Digital Manufacturing

Fathom is one of the largest on-demand digital manufacturing platforms in North America, serving the comprehensive product development and low- to mid-volume manufacturing needs of some of the largest and most innovative companies in the world. With more than 25 unique manufacturing processes and a national footprint with nearly 450,000 square feet of manufacturing capacity across 12 facilities, Fathom seamlessly blends in-house capabilities across plastic and metal additive technologies, CNC machining, injection molding and tooling, sheet metal fabrication, and design and engineering. With more than 35 years of industry experience, Fathom is at the forefront of the Industry 4.0 digital manufacturing revolution, serving clients in the technology, defense, aerospace, medical, automotive and IOT sectors. Fathom's certifications include: ITAR Registered, ISO 9001:2015 Design Certified, ISO 9001:2015, ISO 13485:2016, AS9100:2016, and NIST 800-171. To learn more, visit https://fathommfg.com/ .

1 | 2 | 3 | 4  Next Page »



Review Article Be the first to review this article
Featured Video
Editorial
Latest Blog Posts
Jeff RoweMCADCafe Editorial
by Jeff Rowe
Cadence: A Natural Progression From EDA to CFD
Jobs
Mechanical Engineer Advisor for Halliburton at Houston, Texas
CAD/BIM Specialist for LandDesign Inc. at Charlotte, North Carolina
ASIC Architects and Hardware Engineers at D. E. Shaw Research for D. E. Shaw Research at New York, New York
BIM Specialist - Architecture for Microdesk at Nashua, New Hampshire
Sales Engineer for InfraMarker at Madison, Wisconsin
GIS Technician for Sanborn at Colorado Springs, Colorado
Upcoming Events
IMTS 2022 at McCormick Place Chicago IL - Sep 12 - 17, 2022
FABTECH 2022 at Georgia World Congress Center Atlanta GA - Nov 8 - 10, 2022



© 2022 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering EDACafe - Electronic Design Automation GISCafe - Geographical Information Services TechJobsCafe - Technical Jobs and Resumes ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise