Nano Dimension: Another Stellar Q2/2023 and H1/2023 Results
Nano Dimension announces strong financial results for Q2/2023 with significant revenue growth and improved gross margins.
Positive
47% organic growth since Q3/2022
33% higher revenue over Q2/2022
38% higher revenue over H1/2022
44% Q2/23 gross margin, up from 32% in Q2/2022
44% H1/23 gross margin, up from 21% in H1/2022
48% Q2/23 adjusted gross margin, up from 40% in Q2/2022
47% H1/23 adjusted gross margin, up from 40% in H1/2022
Negative
Adjusted EBITDA for Q2/2023 was negative $24 million
Adjusted EBITDA for H1/2023 was negative $47 million
08/21/2023 - 06:40 AM
47% Organic Growth since Q3/202233% Higher Revenue over Q2/202238% Higher Revenue over H1/2022
44% Q2/23 Gross Margin, Up From 32% in Q2/202244% H1/23 Gross Margin, Up From 21% in H1/202248% Q2/23 Adjusted Gross Margin, Up From 40% in Q2/202247% H1/23 Adjusted Gross Margin, Up From 40% in H1/2022
Conference Call to be Held Today at 9:00 AM EDT
WALTHAM, Mass., Aug. 21, 2023 (GLOBE NEWSWIRE) -- Nano Dimension Ltd. (Nasdaq: NNDM, “Nano Dimension” or “Nano” or the “Company”), a leading supplier of Additively Manufactured Electronics (“AME”) and multi-dimensional polymer, metal & ceramic Additive Manufacturing (“AM”), today announced financial results for the second quarter ended June 30th , 2023.
Revenue
$14.74 million for Q2/2023; up 33% over Q2/2022$29.70 million for H1/2023; up 38% over H1/2022Gross Margin (“GM”)
44% for Q2/2023; up from 32% in Q2/202244% for H1/2023; up from 21% in H1/2022Adjusted1 Gross Margin (“Adjusted GM”)
48% for Q2/2023; up from 40% in Q2/202247% for H1/2023; up from 40% in H1/2022Adjusted EBITDA for Q2/2023 $24 million ,$13 million 2 .
Adjusted EBITDA for H1/2023 $47 million ,$28 million 2 .
Details regarding Adjusted EBITDA and Adjusted gross profit can be found below in this press release under “Non-IFRS Measures.”
_______________1 Excluding cost of revenues from depreciation and amortization and share-based compensation expenses. 2 Excluding share-based compensation expenses and depreciation.
CEO MESSAGE TO SHAREHOLDERS:
Dear Shareholders,
Nano Dimension’s momentum continues, and the second quarter and first half of 2023 are no exception. The financial results prove that the people, initiatives, business plan and M&A strategy we have put in place are delivering exceptional revenue and gross margin improvements. Moreover, the 47% organic revenue growth
When many, if not all other businesses, in our space have top-lines that are stagnating or declining 33% quarter-over-quarter and 38% half-over-half for 2023. When many of our peers have had to lower prices to compete and/or pay more for an inefficiently managed supply chain, our gross profits are increasing
Up 81% Up 185% We strongly believe that this is only the beginning. We have the right people, technologies, and products for this business to continue to deliver strong results . During the most recent 3-4 quarters, however, I am not focusing on quarterly results, as good as they are – but rather looking at annual trends, aiming for improvements in margins, and potentially, in the not too far future, a positive EBITDA and bottom line. I am confident of this trajectory based on our strong R&D achievements, especially in materials’ developments, pipeline and customer relationships, as well as build-up of sales & marketing infrastructure.
Considerations for Profitability and Cash Flow:
We prudently continue to invest in R&D and Go-to-Market. Those are larger investments than what a company at our present size can typically afford, should it wish to be profitable in near term quarters. However, we are growing steadily – and that’s what we aim to do. Negative cashflows are temporary investments which are meticulously calculated match the significant organic growth
We are prioritizing long-term value creation If we cut expenses and maximize profit now
We are not where we are by accident, in particular the cash on our balance sheet was and is preplanned spend your capital more prudently than others
Our disciplined approach to capital allocation has enabled us to enter the next phase of this marketplace - when capital is tight for many - and fully execute on our strategic growth plans. Nano has the cash firepower to continue to build our business and we see significant opportunities ahead, such as the acquisition we announced last week of U.K.-based Additive Flow's technology and intellectual property, which covers solutions for 3D design simulation and optimization.
There will be a few leaders that emerge as dominating the digital manufacturing fields, and we are ideally positioned to act as a consolidator in the highly fragmented market landscape with numerous attractive potential targets. It is hard to imagine who is better positioned than we are.
Nano’s Performance 2020-2023:
$4.4M 2020 - 2021, up to $60M H1/2023 47% organic growthAdjusted gross margins 50% 6 synergistic product lines AME Additive Electronics AM for Metal and Ceramic Micro-Additive Manufacturing Ink Systems Deep Learning AI for Industrial, AM, AME, and other applications 6 integrated acquisitions $1.1 billion 5 R&D and manufacturing centers Sales & marketing Upcoming Annual General Meeting of Shareholders (“Annual Meeting”):
As many of you are aware, Murchinson Ltd. (“Murchinson”), a small non-institutional fund trying to establish itself as a legitimate “activist,” is threatening to derail the Company’s progress and future value creation opportunity at our upcoming Annual Meeting on September 7th , 2023. Murchinson’s goal is to remove 9 directors – 7 of whom are independent – all of whom have diverse skills and expertise that are critical to Nano’s future success.
Murchinson has presented NO NO
Murchinson's efforts to manipulate Nano’s stock, with the help of collaborators, has resulted in its cost basis of (estimated) $2.50 per share. The fund stands to generate an (estimated) 60% return in (estimated) 12 months by seeking to liquidate the Company at $4.00 per share. Doing so would deprive you of the considerable upside as Nano continues to execute on its strategy.
They now falsely claim that the cash value $4.00 per share to day company , and wish to take it over, liquidate and distribute what will end up less than $4.00 per share 170,000 retail shareholders $4.00 per share.
Those eccentric-pseudo-activist shareholders are attempting to oust our board, replace it with their own nominees (which were already paid $250,000 in non-refundable cash in advance, just to be participants in this predator’s scheme
We hope results like today will also resonate with shareholders since they validate the success of our business model and strategic initiatives as we continue to build on our leadership in the industry. Nano, under the existing Board and management team, has a bright future ahead, with a multi-pronged growth strategy buoyed by strong fundamentals, including disciplined M&A objectives and strong organic growth from leading technology development and innovation efforts. We hope existing and prospective shareholders will see the opportunity as we continue to deliver strong results annually.
However, this will not continue if Murchinson has its way EVEN ONE
Murchinson nominees have all accepted inducement payments of $50,000 each to simply stand for election, a clear mechanism to buy their loyalty.
I urge shareholders to vote to protect their investment and the significant value creation opportunity that Nano represents and vote FOR
Thank you for your support.
Yoav Stern Chairman and Chief Executive Officer
FINANCIAL RESULTS:
Financial results for the second quarter ended June 30th , 2023
Total revenues for the second quarter of 2023 were $14,737,000 , compared to $14,965,000 in the first quarter of 2023, and $11,101,000 in the second quarter of 2022. Cost of revenues (excluding amortization of intangibles and write-down of inventories) for the second quarter of 2023 was $8,180,000 , compared to $8,267,000 in the first quarter of 2023, and $7,151,000 in the second quarter of 2022. The increase compared to the second quarter of 2022 is attributed mostly to the increased sales of the Company’s product lines. R&D expenses for the second quarter of 2023 were $16,386,000 , compared to $19,250,000 in the first quarter of 2023, and $18,365,000 in the second quarter of 2022. The decrease compared to the first quarter of 2023 is mainly attributed to a decrease in payroll expenses, subcontractors, material and share-based compensation expenses. The decrease compared to the second quarter of 2022 is mainly attributed to a decrease in subcontractors and share-based compensation expenses, and is partially offset by an increase in material, depreciation and other R&D expenses. Sales & marketing (S&M) expenses for the second quarter of 2023 were $8,217,000 , compared to $7,486,000 in the first quarter of 2023, and $10,115,000 in the second quarter of 2022. The increase compared to the first quarter of 2023 is mainly attributed to an increase in payroll and other marketing expenses and is partially offset by a decrease in share-based compensation expenses. The decrease compared to the second quarter of 2022 is mainly attributed to a decrease in share-based compensation and marketing expenses. General and administrative (G&A) expenses for the second quarter of 2023 were $12,322,000 , compared to $11,033,000 in the first quarter of 2023, and $7,207,000 in the second quarter of 2022. The increase compared to the first quarter of 2023 is mainly attributed to an increase in professional services, share-based compensation expenses and other G&A expenses and is partially offset by a decrease in payroll expenses. The increase compared to the second quarter of 2022 is mainly attributed to an increase in professional services, payroll and share-based compensation expenses. Net loss attributed to owners for the second quarter of 2023 was $9,119,000 , or $0.04 loss per share, compared to net income of $22,222,000 , or $0.09 income per share, in the first quarter of 2023, and net loss of $39,732,000 , or $0.15 loss per share, in the second quarter of 2022. Financial results for the six months ended June 30th , 2023
Total revenues for the six months period ended June 30, 2023, were $29,702,000 , compared to $21,531,000 in the six months period ended June 30, 2022. The increase is attributed to increased sales of the Company’s product lines. Cost of revenues (excluding amortization of intangibles and write-down of inventories) for the six months period ended June 30, 2023, was $16,447,000 , compared to $13,731,000 in the six months period ended June 30, 2022. The increase is attributed mostly to increased sales of the Company’s product lines. R&D expenses for the six months period ended June 30, 2023, were $35,636,000 , compared to $36,235,000 in the six months period ended June 30, 2022. The decrease is mainly attributed to a decrease in share-based compensation and subcontractors’ expenses, and is partially offset by an increase in payroll, materials, depreciation and other R&D expenses. S&M expenses for the six months period ended June 30, 2023, were $15,703,000 , compared to $19,423,000 in the six months period ended June 30, 2022. The decrease is mainly attributed to a decrease in share-based compensation and marketing expenses. G&A expenses for the six months period ended June 30, 2023, were $23,355,000 , compared to $13,949,000 in the six months period ended June 30, 2022. The increase is mainly attributed to an increase in payroll and professional services expenses. Net income attributed to the owners for the six months period ended June 30, 2023, was $13,103,000 , or $0.05 per share, compared to loss of $72,825,000 , or $0.28 per share, in the six months period ended June 30, 2022. Balance sheet highlights
Cash and cash equivalents, together with short and long-term unrestricted bank deposits totaled $954,396,000 as of June 30, 2023, compared to $1,032,025,000 as of December 31, 2022. Shareholders’ equity totaled $1,148,664,000 as of June 30, 2023, compared to $1,149,525,000 as of December 31, 2022.
Conference call information
The Company will host a conference call to discuss these financial results today, August 21st, 2023, at 9:00 a.m. EDT (4:00 p.m. IDT).
We encourage participants to pre-register for the conference call using the following link: https://dpregister.com/sreg/10181392/fa0dd604c0
Webcast link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=E9fFwO4y
U.S. Dial-in Number : 844-695-5517
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.
Nano Dimension serves over 2,000 customers across vertical target markets such as aerospace & defense, advanced automotive, high-tech industrial, specialty medical technology, R&D and academia. The company designs and makes Additive Electronics and Additive Manufacturing 3D printing machines and consumable materials. Additive Electronics manufacturing machines enable the design and development of High-Performance-Electronic-Devices (Hi-PED®s). Additive Manufacturing includes manufacturing solutions for production of metal, ceramic, and specialty polymers-based applications - from millimeters to several centimeters in size with micron precision.
Through the integration of its portfolio of products, Nano Dimension is offering the advantages of rapid prototyping, high-mix-low-volume production, IP security, minimal environmental footprint, and design-for-manufacturing capabilities, which is all unleashed with the limitless possibilities of additive manufacturing. For more information, please visit www.nano-di.com .
ir@nano-di.com
Unaudited Consolidated Statements of Financial Position as at June 30, December 31, 2022 2023 20223 (In thousands of USD) (Unaudited) (Unaudited) Assets Cash and cash equivalents 706,220 454,555 685,362 Bank deposits 511,093 499,841 346,663 Investment in securities 20,574 — — Restricted deposits 77 60 60 Trade receivables 5,811 12,523 6,342 Other receivables 6,654 5,360 6,491 Inventory 15,982 19,546 19,400 Total current assets 1,266,411 991,885 1,064,318 Restricted deposits 585 858 850 Bank deposits 28,702 — — Investment in securities — 172,185 114,984 Deferred tax 505 249 115 Other receivables — 826 809 Property plant and equipment, net 11,617 14,014 5,843 Right-of-use assets 14,172 14,135 16,539 Intangible assets 20,437 — — Total non-current assets 76,018 202,267 139,140 Total assets 1,342,429 1,194,152 1,203,458 Liabilities Trade payables 3,511 3,216 3,722 Financial derivatives and deferred consideration 9,558 — 8,798 Other payables 21,082 25,784 24,150 Current portion of other long-term liability 355 274 363 Total current liabilities 34,506 29,274 37,033 Liability in respect of government grants 1,862 1,882 1,492 Employee benefits 306 2,485 1,462 Liability in respect of warrants 808 140 69 Lease liability 10,969 10,168 12,374 Deferred tax liabilities 279 — — Other long-term liabilities 819 — — Loan from banks 912 647 736 Total non-current liabilities 15,955 15,322 16,133 Total liabilities 50,461 44,596 53,166 Equity Non-controlling interests 553 892 767 Share capital 387,312 396,238 388,406 Share premium and capital reserves 1,284,324 1,298,124 1,296,194 Treasury shares (1,509 ) (24,768 ) (1,509 ) Foreign currency translation reserve 220 1,176 583 Remeasurement of net defined benefit liability (IAS 19) 3,127 1,448 2,508 Accumulated loss (382,059 ) (523,554 ) (536,657 ) Equity attributable to owners of the Company 1,291,415 1,148,664 1,149,525 Total equity 1,291,968 1,149,556 1,150,292 Total liabilities and equity 1,342,429 1,194,152 1,203,458
_______________3 The December 31, 2022 balances were derived from the Company’s audited annual financial statements.
Unaudited Consolidated Statements of Profit or Loss and Other Comprehensive Income Six Months Ended June 30, Three Months Ended June 30, Year ended December 31, 2022 2023 2022 2023 2022 Thousands Thousands Thousands Thousands Thousands USD USD USD USD USD Revenues 21,531 29,702 11,101 14,737 43,633 Cost of revenues 13,731 16,447 7,151 8,180 24,943 Cost of revenues - write-down of inventories and impairment of assets recognized in business combination and technology 3,219 194 370 62 4,639 Total cost of revenues 16,950 16,641 7,521 8,242 29,582 Gross profit 4,581 13,061 3,580 6,495 14,051 Research and development expenses 36,235 35,636 18,365 16,386 75,763 Sales and marketing expenses 19,423 15,703 10,115 8,217 38,833 General and administrative expenses 13,949 23,355 7,207 12,322 30,457 Impairment losses on intangible assets — — — — 40,523 Operating loss (65,026 ) (61,633 ) (32,107 ) (30,430 ) (171,525 ) Finance income 7,810 80,780 5,230 23,954 22,965 Finance expense 16,835 6,442 13,431 2,852 79,471 Income (loss) before taxes on income (74,051 ) 12,705 (40,308 ) (9,328 ) (228,031 ) Taxes (expenses) benefit 789 (152 ) 334 (78 ) (264 ) Income (loss) for the period (73,262 ) 12,553 (39,974 ) (9,406 ) (228,295 ) Loss attributable to non-controlling interests (437 ) (550 ) (242 ) (287 ) (872 ) Income (loss) attributable to owners (72,825 ) 13,103 (39,732 ) (9,119 ) (227,423 ) Income (loss) per share Basic income (loss) per share (0.28 ) 0.05 (0.15 ) (0.04 ) (0.88 ) 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 (1,238 ) 597 (1,006 ) 194 (844 ) Other comprehensive income items that will not be transferred to profit or loss Remeasurement of net defined benefit liability (IAS 19), net of tax 3,127 (1,060 ) 3,127 (1,060 ) 2,508 Total other comprehensive income (loss) for the period 1,889 (463 ) 2,121 (866 ) 1,664 Total comprehensive income (loss) for the period (71,373 ) 12,090 (37,853 ) (10,272 ) (226,631 ) Comprehensive loss attributable to non-controlling interests (488 ) (546 ) (278 ) (296 ) (892 ) Comprehensive income (loss) attributable to owners of the Company (70,885 ) 12,636 (37,575 ) (9,976 ) (225,739 )
Consolidated Statements of Changes in Equity (Unaudited)
Share capital Share premium and capital reserves Remeasurement of IAS 19 Treasury shares Foreign currency translation reserve Accumulated loss Total Non-controlling interests Total equity Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands For the six months ended June 30, 2023: USD USD USD USD USD USD USD USD USD Balance as of December 31, 2022 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 — — — — — — — 671 671 Income for the period — — — — — 13,103 13,103 (550 ) 12,553 Other comprehensive income (loss) for the period — — (1,060 ) — 593 — (467 ) 4 (463 ) Exercise of warrants, options and conversion of convertible notes 7,832 (7,832 ) — — — — — — — Repurchase of treasury shares — — — (23,259 ) — — (23,259 ) — (23,259 ) Share based payment acquired — (1,780 ) — — — — (1,780 ) — (1,780 ) Share-based Compensation — 11,542 — — — — 11,542 — 11,542 Balance as of June 30, 2023 396,238 1,298,124 1,448 (24,768 ) 1,176 (523,554 ) 1,148,664 892 1,149,556
Share capital Share premium and capital reserves Remeasurement of IAS 19 Treasury shares Foreign currency translation reserve Accumulated loss Total Non-controlling interests Total equity Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands For the three months ended June 30, 2023: USD USD USD USD USD USD USD USD USD Balance as of March 31, 2023 389,943 1,300,781 2,508 (19,901 ) 973 (514,435 ) 1,159,869 578 1,160,447 Investment of non-controlling party in subsidiary — — — — — — — 610 610 loss for the period — — — — — (9,119 ) (9,119 ) (287 ) (9,406 ) Other comprehensive income (loss) for the period — — (1,060 ) — 203 — (857 ) (9 ) (866 ) Exercise of warrants, options and conversion of convertible notes 6,295 (6,295 ) — — — — — — — Repurchase of treasury shares — — — (4,867 ) — — (4,867 ) — (4,867 ) Share based payment acquired — (1,780 ) — — — — (1,780 ) — (1,780 ) Share-based Compensation — 5,418 — — — — 5,418 — 5,418 Balance as of June 30, 2023 396,238 1,298,124 1,448 (24,768 ) 1,176 (523,554 ) 1,148,664 892 1,149,556
Consolidated Statements of Cash Flows (Unaudited) (In thousands of USD)
Six Months Ended June 30, Three Months Ended June 30, Year ended December 31 2022 2023 2022 2023 2022 Cash flow from operating activities: Net income (loss) (73,262 ) 12,553 (39,974 ) (9,406 ) (228,295 ) Adjustments: Depreciation and amortization 2,856 2,963 1,715 1,540 7,283 Impairment losses — — — — 40,523 Financing (income) expenses, net 12,555 (17,622 ) 10,361 (9,470 ) (1,769 ) Revaluation of financial liabilities accounted at fair value (2,917 ) 485 (1,547 ) 294 (4,516 ) Revaluation of financial assets accounted at fair value (613 ) (57,201 ) (613 ) (11,925 ) 62,791 Loss (gain) from disposal of property plant and equipment and right-of-use assets (6 ) 345 (3 ) 221 948 Increase in deferred tax (1,332 ) (95 ) (871 ) (92 ) (581 ) Share-based compensation 19,337 11,542 9,214 5,418 32,563 Other 113 68 19 23 166 29,993 (59,515 ) 18,275 (13,991 ) 137,408 Changes in assets and liabilities: — (Increase) decrease in inventory (1,878 ) (1,212 ) (1,410 ) (667 ) (4,603 ) (Increase) decrease in other receivables (297 ) 669 554 1,520 (1,978 ) (Increase) decrease in trade receivables (1,959 ) (6,039 ) 216 (2,331 ) (1,992 ) Increase (decrease) in other payables 1,397 (1,345 ) (327 ) (817 ) 5,281 Increase (decrease) in employee benefits 1,736 (399 ) 588 162 1,497 Increase (decrease) in trade payables 839 (828 ) 110 (2,633 ) 628 (162 ) (9,154 ) (269 ) (4,766 ) (1,167 ) Net cash used in operating activities (43,431 ) (56,116 ) (21,968 ) (28,163 ) (92,054 ) Cash flow from investing activities: Change in bank deposits (46,491 ) (151,391 ) (24,584 ) 77,106 141,555 Interest received 2,491 17,998 1,729 6,706 17,465 Change in restricted bank deposits (75 ) (34 ) (95 ) 237 (327 ) Acquisition of property plant and equipment (4,539 ) (7,121 ) (2,564 ) (3,177 ) (9,388 ) Acquisition of subsidiaries, net of cash acquired (18,159 ) — (35 ) — (31,057 ) Payment of a liability to pay a contingent consideration of business combination (9,999 ) (9,255 ) (9,999 ) (5,295 ) (10,708 ) Acquisition of financial assets in fair value through profit and loss (17,803 ) — (17,803 ) — (177,775 ) Decrease in deposit in escrow — — — — 3,362 Other — — — — (800 ) Net cash from (used in) investing activities (94,575 ) (149,803 ) (53,351 ) 75,577 (67,673 ) Cash flow from financing activities: Lease payments (1,881 ) (2,471 ) (1,085 ) (1,251 ) (4,151 ) Repayment long-term bank debt (218 ) (96 ) (138 ) (39 ) (406 ) Proceeds from non-controlling interests — 550 — 550 510 Amounts recognized in respect of government grants liability, net (93 ) (172 ) (48 ) (87 ) (221 ) Payments of share price protection recognized in business combination (744 ) (1,780 ) (744 ) (1,780 ) (1,005 ) Repurchase of treasury shares — (19,741 ) — (1,349 ) — Net cash used in financing activities (2,936 ) (23,710 ) (2,015 ) (3,956 ) (5,273 ) Increase (decrease) in cash (140,942 ) (229,629 ) (77,334 ) 43,458 (165,000 ) Cash at beginning of the period 853,626 685,362 788,141 412,172 853,626 Effect of exchange rate fluctuations on cash (6,464 ) (1,178 ) (4,587 ) (1,075 ) (3,264 ) Cash at end of the period 706,220 454,555 706,220 454,555 685,362 Non-cash transactions: Property plant and equipment acquired on credit 35 328 (176 ) (148 ) 52 Repurchase of treasury shares on credit — 3,518 — 3,518 — Recognition of a right-of-use asset 11,250 199 13 72 15,196 Acquisition of financial assets in fair value through profit and loss 2,158 — 2,158 — —
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:
For the Six-Months For the Three-Months 2023 In thousands of USD In thousands of USD Net income (loss) 12,553 (9,406 ) Tax expenses 152 78 Depreciation and amortization 2,963 1,540 Interest income (23,567 ) (12,047 ) EBITDA (loss) (7,899 ) (19,835 ) Finance income from revaluation of assets and liabilities (56,299 ) (11,522 ) Exchange rate differences 5,475 2,430 Share-based compensation expenses 11,542 5,418 Adjusted EBITDA (loss) (47,181 ) (23,509 )
For the Six-Months Period June 30, For the Three-Months Period 2022 2023 2022 2023 Gross profit 4,581 13,061 3,580 6,495 Depreciation and amortization 3,298 186 436 120 Share-based compensation expenses 743 812 419 390 Adjusted gross profit 8,622 14,059 4,435 7,005
EBITDA is a non-IFRS measure and is defined as income before taxes, excluding depreciation and amortization expenses and amortization of assets recognized in business combination 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 income before taxes, excluding depreciation and amortization expenses and amortization of assets recognized in business combination, interest income, finance income for revaluation of assets and liabilities, exchange rate differences and share-based payments. We believe that Adjusted EBITDA, as described above, should also be considered in evaluating the Company’s operations. Like EBITDA, Adjusted 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), as well as from revaluation of assets and liabilities, exchange rate differences and share-based payment expenses. 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 revaluation, exchange rate differences and 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.
