3D Printing Financials: Nano Dimension Discloses 2023 Layoffs Despite Increased Revenues and Reduced Losses


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Nano Dimension (Nasdaq: NNDM) announced on March 21 that it reduced its workforce by about 25% as part of a strategic restructuring initiative called “Reshaping Nano.” This move aims to streamline operations and align the company’s resources with future strategic goals. The company, a leader in the additive manufacturing industry, reported this change alongside its financial results for 2023.

For the year, Nano Dimension posted revenue of $56.3 million, marking a 29% increase from the previous year. In the same period, the company’s gross margin rose significantly by 41%, from 32% in 2022 to 45%. Despite the revenue growth, the company recorded a net loss of $54.55 million, or 22 cents per share, and a $95 million EBITDA loss, 60% less than in 2022. However, this net loss represents a significant improvement from the previous year’s net loss of $227.42 million, or 88 cents per share, indicating a positive trend in reducing losses and moving toward profitability.

Lab with machines. Image courtesy of Nano Dimension.

Confronting the critical issue head-on, Nano Dimension announced a significant workforce reduction as part of its “Reshaping Nano” initiative launched in late 2023. The plan aims to improve the company’s operations and financial health, expecting to save money each year. As a direct result of this initiative, Nano Dimension anticipates reducing its cash spending between $12 million and $20 million in 2024. These savings should start to show in the financial reports from the first quarter of 2024.

Overall, the plan involves critical assessment and restructuring of operating expenses across various departments, including R&D, sales, marketing, and general administration. Part of this restructuring includes a resizing of the workforce and management team. The company said it has already made some “notable changes” in the fourth quarter of 2023, including reducing its workforce worldwide by roughly 25% and shrinking the executive management group by 25%. This initiative has already produced an estimated annualized savings of $30 million, reported by Nano Dimension in its quarterly results.

This announcement puts Nano Dimension alongside other 3D printing companies that have also cut jobs recently to streamline their operations in the tech and manufacturing sectors, like Desktop Metal and Prodways.

Operator and Dragonfly. Image courtesy of Nano Dimension.

Shares of Nano Dimension slightly declined by roughly 7% in Thursday’s close, following an opening at $2.90 and the release of its earnings report during the market’s opening hours.

“More than ever, we are shaping our decisions around the aforementioned bottom line, but top line is critical to enable success. Fortunately, Nano Dimension finished 2023 with another record year. This was on the back of a strong Q4/2023, and in fact, all quarters for the year have reached records within themselves compared to previous years. And not by small margins. As an example, Q4/2023’s $14.5 million in revenue was 19% higher than the same period in the year before. Importantly, this revenue growth is entirely organic. This is proof of our ability to acquire, integrate, and achieve synergies. The overly used yet highly indicative adage of ‘1 + 1 = 3’,” said CEO Yoav Stern.

R&D remains a cornerstone of Nano Dimension’s strategy, with continued investment in AI and material science innovations. This can be seen in the company’s successful customer stories and R&D achievements in 2023. Nano Dimension has formed new partnerships and increased sales with organizations like NASA, which acquired the Admaflex printer for ceramics and metals to use in a project to 3D print sodium-ion batteries. Also, Nano Dimension is selling several DragonFly machines to the Fraunhofer Institute for 3D printing electronics. DragonFly’s were also delivered to several branches of the U.S. Department of Defense as well as one of largest Western computer manufacturers and a Western nuclear research group for 3D printing electronics. Although unnamed, Nano Dimension made a deal with an industrial leader for its largest order ever for Additive Electronics (AE) systems for robotic assembly.

Volcano board. Image courtesy of Nano Dimension.

The company also received positive feedback from clients, particularly for its advanced AI capabilities developed by the DeepCube Group, a machine learning company acquired by Nano Dimension in 2021. Initially created for Nano Dimension’s manufacturing systems, this AI technology now expands to serve third-party customers in various industrial sectors.

Another highlight is the progress in material science, with the development of the trademarked INSU 200 dielectric material that enhances the performance of printed circuit boards (PCBs). This opens tremendous new business opportunities. INSU 200 may meet the stringent requirements of high-tech electronics, telecommunications, automation and robotics, the medical industry, and aerospace and defense, where durability and performance under extreme conditions are key.

Sphere phased array antenna back. Image courtesy of Nano Dimension.

In 2023, Nano Dimension faced some internal disputes as CEO Yoav Stern attempted to adjust his stake in the company. Stern’s proposal to change the price of his stock options, aiming to become the top shareholder, caused a stir and led to criticism from advisory firms ISS and Glass Lewis. This situation was a key part of the year for Nano Dimension, involving important financial strategies and power struggles within the company. Moreover, the year was marked by Nano Dimension’s unsuccessful attempt to acquire Stratasys, where it was one of three companies competing for the purchase, but ultimately, no acquisition of Stratasys occurred.

Despite these setbacks, Nano Dimension also focused on strengthening its corporate governance and rewarding its investors. The company announced key business updates, including a refresh of its board with the appointment of Yoav Nissan-Cohen as the new Chairman. Additionally, the company has shown a strong commitment to shareholder value through significant capital return initiatives. In 2023, Nano Dimension repurchased $96 million of its shares and plans to continue this trend with a $200 million repurchase program set for 2024. This move aligns with CEO

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