Mounting Losses Threatened Desktop Metal’s Growth Trajectory
As a $209 million leader in metal 3D printing, Desktop Metal was experiencing rapid expansion—but with it came spiraling operating expenses, mounting losses, and growing pressure to deliver profitability as a public company. The company’s ability to innovate and lead the market was at risk if it couldn’t quickly impose financial discipline and build a sustainable foundation.
Innovation in 3D printing meets financial challenges.
A Strategic CFO Hire to Restore Financial Discipline
To address these urgent challenges, Desktop Metal engaged Christian & Timbers to find a proven financial leader. In November 2022, Jason Cole—an executive with over 20 years of experience in global finance and technology—joined as Chief Financial Officer. His mandate: restore rigor, drive profitability, and prepare the company for its next phase of growth.
$10.8M EBITDA Improvement and 45% OpEx Cut: The Turnaround
Under Jason Cole’s leadership, Desktop Metal delivered a dramatic financial turnaround in just 18 months:
- Adjusted EBITDA improved by $10.8 million year-over-year, narrowing losses and putting the company on a path to profitability.
- Operating expenses dropped 45% from peak levels, marking eight consecutive quarters of cost reduction.
- Gross margin expanded by 1,200 basis points, reaching 30.5%—the ninth straight quarter of improvement.
- Cash burn from operations fell by 47% year-over-year, with cash and short-term investments totaling $66.3 million as of March 2024.
- Recurring revenue grew to 43% of total revenue, strengthening the business with higher-margin, contract-based streams.
Jason Cole drives Desktop Metal's swift financial recovery.
Timeline: 18 Months of Financial Transformation
November 2022: Jason Cole is appointed CFO, tasked with restoring financial discipline and driving operational efficiency.
Q4 2022 – Q1 2023: Immediate focus on cost alignment and operational rigor. Early structural changes begin across SG&A and engineering.
Q2 2023 – Q4 2023:
- Operating expenses decline for consecutive quarters.
- Gross margin begins a sustained climb, driven by improved product mix and pricing optimization.
- Cash burn from operations starts to fall as working capital management tightens.
Q1 2024:
- Adjusted EBITDA shows a $10.8M year-over-year improvement.
- Non-GAAP OpEx totals $28.6M, down 45% from peak.
- Gross margin reaches 30.5%, up 1,200 basis points year-over-year.
- Cash and short-term investments total $66.3M.
- Recurring revenue rises to 43% of total revenue.
From High-Spend Innovation to Sustainable, Scalable Growth
Jason Cole’s arrival marked a decisive shift for Desktop Metal—from high-spend innovation to operational discipline and sustainable growth. The company is now positioned to achieve positive EBITDA in 2024, with a leaner cost structure, improved margins, and the flexibility to scale or consolidate with confidence. Desktop Metal’s transformation demonstrates the power of strategic financial leadership to turn urgent challenges into lasting competitive advantage.
This transformation would not have been possible without the expertise and partnership of Christian & Timbers. Their track record of over 5,000 C-suite assignments in the tech sector, combined with an AI-powered, science-based search process, ensured Desktop Metal found the right leader with both speed and precision.
Most importantly, the direct involvement of senior leadership throughout the search brought a high-touch, personalized approach that matched the urgency and complexity of the challenge. The result is a testament to the value of working with a search partner who not only understands the stakes, but is deeply invested in delivering outcomes that drive real business impact.
