Markforged Announces First Quarter 2024 Results
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Markforged Announces First Quarter 2024 Results

WALTHAM, Mass., May 08, 2024 (GLOBE NEWSWIRE) -- Markforged Holding Corporation (NYSE: MKFG) (the “Company”), the company strengthening manufacturing resiliency by enabling industrial production at the point of need, today announced its financial results for the first quarter ended March 31, 2024.

First Quarter 2024 Financial Results Compared To First Quarter 2023

Reconciliations of the non-GAAP financial measures provided in this press release to their most directly comparable GAAP financial measures are provided in the financial tables included at the end of this press release. An explanation of these measures and how they are calculated is also included below under the heading “Non-GAAP Financial Measures.”

“We started 2024 with strong execution, setting a solid foundation for the year ahead,” said Shai Terem, President and CEO of Markforged. “While global capital expenditures on manufacturing equipment have remained challenging, we met a pivotal milestone and began shipping the FX10 in the first quarter. The market response to our newest product has been very encouraging and we are optimistic about the opportunities the FX10 will bring in the second half as we accelerate deliveries. Additionally, we continued to build operational efficiencies and adhere to our strong cost controls to drive sustainable, long-term growth.”

Business Updates

Markforged Announces New Director

Markforged announced the appointment of George Riedel to its Board of Directors, effective May 7, 2024. Riedel brings extensive executive leadership experience in global technology industries and a proven track record in corporate strategy. Since November 2020, he has served as Chair of the Board of Directors at Infinera (Nasdaq: INFN) and as a Senior Lecturer in the General Management Unit at Harvard Business School since 2017. From 2003 to 2017, Riedel held various executive leadership roles across the networking and cybersecurity sectors. He earned a B.S. in Mechanical Engineering with distinction from the University of Virginia and an MBA from Harvard Business School.

“We are thrilled to welcome George to our Board of Directors,” said Shai Terem, President and CEO of Markforged. “We expect George's extensive experience as a senior technology executive to be instrumental in guiding Markforged's focus on building shareholder value.”

2024 Financial Outlook

Markforged is reiterating its 2024 guidance provided at the beginning of the year. The Company continues to anticipate fiscal year 2024 revenues to be between $95 and $105 million, which acknowledges the persistence of macroeconomic headwinds throughout the year. Markforged expects revenues to grow mid-single digits quarter-over-quarter in the second quarter, and continues to see an opportunity for accelerated growth in the second half of the fiscal year underpinned by new products, particularly the FX10. Markforged expects non-GAAP gross margins to be within the range of 48% - 50%. Non-GAAP operating loss is expected to be in the range of $42.5 million - $47.0 million for the year, resulting in a non-GAAP loss per share in the range of $0.19 - $0.22 per share.

This guidance does not reflect any potential additional action Continuous Composites may take, which may include seeking additional relief through post-trial motions for royalty payments on future revenue, as described in the Company’s press release dated April 12, 2024.

Conference Call and Webcast Information

The Company will host a webcast and conference call at 5:00 p.m. ET today, Wednesday, May 8, to discuss the results.

Participants may access the earnings press release, related materials and the audio webcast by visiting the investors section of the Company's website at https://investors.markforged.com/ 

To participate in the call, please dial 1-877-407-9039 or 1-201-689-8470 ten minutes before the scheduled start.

For those unable to listen to the live conference call, a replay will be available on the Company's website and telephonically until Wednesday, May 22, 2024, 11:59 PM ET by dialing 1-844-512-2921 or 1-412-317-6671, passcode 13743011.

About Markforged

Markforged (NYSE:MKFG) is enabling more resilient and flexible manufacturing by bringing industrial 3D printing right to the factory floor. Our additive manufacturing platform The Digital Forge allows manufacturers to create strong, accurate parts in both metal and advanced composites. With over 10,000 customers in 70+ countries, we’re bringing on-demand industrial production to the point of need. We are headquartered in Waltham, Mass where we design the hardware, software and advanced materials that makes The Digital Forge reliable and easy to use. To learn more, visit www.markforged.com

Non-GAAP Financial Measures

In addition to our financial results determined in accordance with U.S. generally accepted accounting principles (“GAAP”), we believe that each of non-GAAP gross margin, non-GAAP operating profit (loss), non-GAAP net profit (loss) and non-GAAP earnings per share, each a non-GAAP financial measure, is useful in evaluating the performance of our business.

These non-GAAP measures have limitations as an analytical tool. We do not, nor do we suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors should also note that the non-GAAP financial measures we use may not be the same non-GAAP financial measures, and may not be calculated in the same manner, as that of other companies, including other companies in our industry.

We recommend that you review the reconciliation of these non-GAAP measures to the most directly comparable GAAP financial measures provided in the financial statement tables included below in this press release, and that you not rely on any single financial measure to evaluate our business. Additionally, to the extent that forward-looking non-GAAP financial measures are provided, they are presented on a non-GAAP basis without reconciliations of such forward-looking non-GAAP measures due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations.

The following are the non-GAAP financial measures referenced in this press release and presented in the tables below:

Special Note Regarding Forward-Looking Statements

This press release contains forward-looking statements that are based on beliefs and assumptions and on information currently available. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “strategy,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing,” “opportunity” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. Although Markforged believes that it has a reasonable basis for each forward-looking statement contained in this press release, Markforged cautions you that these statements are based on a combination of facts and factors currently known by it and its projections of the future, about which it cannot be certain. Forward-looking statements in this press release include, but are not limited to, future growth rate, revenue, gross profit margin and earnings guidance; the contributions of our directors; the timing of launches and the rate and extent of adoption of our products, including, but not limited to, our most recently introduced products and the FX10; market trends in the manufacturing industry; the duration and impact of macroeconomic factors; the benefits to consumers, functionality and applications of Markforged’s products; statements regarding our expectations concerning any impact to our business, balance sheet and cost structure; any potential post-trial motions and appeal related to the Continuous Composites litigation; our disagreement with the Continuous Composites verdict; and our intention to challenge the Continuous Composites judgment. Markforged cannot assure you that the forward-looking statements in this press release will prove to be accurate. These forward looking statements are subject to a number of risks and uncertainties, including, among others, general economic, political and business conditions; the ability of Markforged to maintain its listing on the New York Stock Exchange; outcome of any legal proceedings against Markforged; and those factors discussed under the header “Risk Factors” in Markforged’s most recent periodic and other filings with the SEC. Furthermore, if the forward-looking statements prove to be inaccurate, the inaccuracy may be material. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by us or any other person that Markforged will achieve its objectives and plans in any specified time frame, or at all. The forward-looking statements in this press release represent Markforged’s views as of the date of this press release. Markforged anticipates that subsequent events and developments will cause its views to change. However, while Markforged may elect to update these forward-looking statements at some point in the future, Markforged has no current intention of doing so except to the extent required by applicable law. You should, therefore, not rely on these forward-looking statements as representing Markforged’s views as of any date subsequent to the date of this press release.


MediaSam Manning, Public Relations Manager
sam.manning@markforged.com

Investors
Austin Bohlig, Director of Investor Relations
investors@markforged.com


MARKFORGED HOLDING CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
As of March 31, 2024 and December 31, 2023
(In thousands, except share data and par value amounts) (Unaudited)
     
  March 31, 2024 December 31, 2023
Assets  
Current assets  
Cash and cash equivalents $107,924  $116,854 
Accounts receivable, net of allowance for expected credit losses ($271 and $360, respectively)  21,493   24,059 
Inventory  23,792   26,773 
Prepaid expenses  3,328   2,756 
Other current assets  1,733   2,022 
Total current assets  158,270   172,464 
Property and equipment, net  17,893   17,713 
Intangible assets, net  15,924   17,128 
Right-of-use assets  35,809   36,884 
Other assets  3,734   3,763 
Total assets $231,630  $247,952 
Liabilities and Stockholders’ Equity   
Current liabilities  
Accounts payable $11,877  $13,235 
Accrued expenses  12,451   9,840 
Litigation judgment payable  17,300    
Deferred revenue  9,609   8,779 
Lease liabilities  7,316   7,368 
Other current liabilities  1,500   1,526 
Total current liabilities  60,053   40,748 
Long-term deferred revenue  5,457   6,083 
Contingent earnout liability  1,540   1,379 
Long-term lease liabilities  34,647   35,771 
Other liabilities  2,030   2,361 
Total liabilities  103,727   86,342 
Commitments and contingencies    
Stockholders’ equity    
Common stock, $0.0001 par value; 1,000,000,000 shares authorized at March 31, 2024 and December 31, 2023; 199,399,503 and 198,581,263 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively  19   19 
Additional paid-in capital  369,561   366,281 
Accumulated deficit  (240,610)  (204,664)
Accumulated other comprehensive income  (1,067)  (26)
Total stockholders’ equity  127,903   161,610 
Total liabilities and stockholders’ equity $231,630  $247,952 
     


MARKFORGED HOLDING CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended March 31, 2024 and 2023
(In thousands, except share data and per share data) (Unaudited)
    
 Three Months Ended March 31,
  2024   2023 
Revenue 20,547   24,090 
Cost of revenue 10,414   12,508 
Gross profit 10,133   11,582 
Operating expenses   
Sales and marketing 7,844   10,576 
Research and development 9,935   10,380 
General and administrative 12,165   12,128 
Litigation judgment 17,300    
Total operating expenses 47,244   33,084 
Loss from operations (37,111)  (21,502)
Change in fair value of derivative liabilities 31   189 
Change in fair value of contingent earnout liability (161)  808 
Other expense, net (135)  (204)
Interest expense (154)   
Interest income 1,400   1,691 
Loss before income taxes (36,130)  (19,018)
Income tax (benefit) expense (184)  1 
Net loss$(35,946) $(19,019)
Weighted average shares outstanding - basic and diluted 199,290,500   195,369,245 
Net loss per share - basic and diluted$(0.18) $(0.10)
    


MARKFORGED HOLDING CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME (LOSS)
For the Three Months Ended March 31, 2024 and 2023
(In thousands)
    
 Three Months Ended March 31,
  2024   2023 
Net loss$(35,946) $(19,019)
Other comprehensive loss, net of taxes:   
Unrealized loss on available-for-sale marketable securities, net    (50)
Foreign currency translation adjustment (1,041)  158 
Total comprehensive loss$(36,987) $(18,911)
    


MARKFORGED HOLDING CORPORATION
DISAGGREGATED REVENUE BY NATURE OF PRODUCTS AND SERVICES
(In thousands) (Unaudited)
  Three Months Ended March 31,
(in thousands) 2024 2023
Hardware $11,274 $15,195
Consumables  6,404  6,455
Services  2,869  2,440
Total Revenue $20,547 $24,090
     
     
MARKFORGED HOLDING CORPORATION
DISAGGREGATED REVENUE BY GEOGRAPHIC LOCATION
(In thousands) (Unaudited)
  Three Months Ended March 31,
(in thousands) 2024 2023
Americas $10,095 $10,458
EMEA  6,335  8,492
APAC  4,117  5,140
Total Revenue $20,547 $24,090
     


MARKFORGED HOLDING CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(In thousands) (Unaudited)
     
 Three Months Ended March 31,
  2024   2023 
Net loss$(35,946) $(19,019)
Stock compensation expense 3,461   4,356 
Change in fair value of derivative liabilities  (31)  (189)
Change in fair value of contingent earnout liability  161   (808)
Amortization  378   277 
Litigation judgment  17,300    
Non-recurring costs1  2,446   2,081 
Non-GAAP net loss$(12,231) $(13,302)
     
1Non-recurring costs incurred during the three months ended March 31, 2024 and 2023 relate to litigation expense.
 
 Three Months Ended March 31,
Non-GAAP Cost of Revenue  2024   2023 
Cost of revenue$10,414  $12,508 
Stock compensation expense 49   73 
Amortization  357   228 
Non-GAAP Cost of Revenue  10,008   12,207 
     
 Three Months Ended March 31,
Non-GAAP Gross Profit 2024   2023 
Gross profit$10,133  $11,582 
Stock compensation expense 49   73 
Amortization  357   228 
Non-GAAP gross profit  10,539   11,883 
     
 Three Months Ended March 31,
Non-GAAP Sales and Marketing Expenses 2024   2023 
Sales and marketing expenses$7,844  $10,576 
Stock compensation expense 405   475 
Amortization  21   49 
Non-GAAP sales and marketing expenses  7,418   10,052 
     
 Three Months Ended March 31,
Non-GAAP Research and Development Expenses 2024   2023 
Research and development expenses$9,935  $10,380 
Stock compensation expense 1,100   1,147 
Non-GAAP research and development expenses  8,835   9,233 
     
 Three Months Ended March 31,
Non-GAAP General and Administrative Expenses 2024   2023 
General and administrative expenses$12,165  $12,128 
Stock compensation expense 1,907   2,661 
Non-recurring costs1  2,446   2,081 
Non-GAAP general and administrative expenses  7,812   7,386 
     
 Three Months Ended March 31,
Non-GAAP Operating Loss 2024   2023 
Operating loss$(37,111) $(21,502)
Stock compensation expense 3,461   4,356 
Amortization  378   277 
Litigation judgment  17,300    
Non-recurring costs1  2,446   2,081 
Non-GAAP operating loss  (13,526)  (14,788)
     
1Non-recurring costs incurred during the three months ended March 31, 2024 and 2023 relate to litigation expense.
     


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