Markforged Announces Second Quarter 2024 Results
[ Back ]   [ More News ]   [ Home ]
Markforged Announces Second Quarter 2024 Results

WALTHAM, Mass., Aug. 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 second quarter ended June 30, 2024.

Second Quarter 2024 Financial Results Compared To Second 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 demonstrated strong execution in Q2 while effectively navigating the persistent macroeconomic headwinds,” said Shai Terem, President and CEO of Markforged. “During the quarter we shipped the first PX100 metal binder jetting system, the latest in a series of innovations Markforged is bringing to market. FX10 shipments have also accelerated in the 2nd quarter. The positive feedback and growing pipeline underscore the strength of our recent innovations, and positions the Company to return to growth in the second half of year. The continued rollout of new products, combined with our cost realignment initiatives, keeps us on a path to achieve sustainable growth.”

Business Updates

2024 Financial Outlook

Markforged anticipates fiscal year 2024 revenues to be between $90 and $95 million, compared to its prior expectation of between $95 and $105 million, which reflects more persistent macroeconomic headwinds than previously anticipated. The Company expects to see year-over-year revenue growth return in the second half of the year, including low-single digit quarter-over-quarter growth in Q3, underpinned by its new products, particularly the FX10. Given strong execution over the first half of this year, Markforged now expects non-GAAP gross margins to be in the upper range of their previous 48% - 50% guidance. 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 additional relief Continuous Composites may receive as a result of its post-trial claims. Continuous Composites has asserted through post-trial motions claims for royalty payments for sales of certain products manufactured or sold in the United States after December 31, 2023. Markforged anticipates a final ruling to occur in the second half of 2024. Markforged strongly disagrees with the verdict handed down in the Continuous Composites litigation and with the associated post-trial royalty claims. Markforged has retained a leading law firm to support efforts to overturn the verdict.

Conference Call and Webcast Information

The Company will host a webcast and conference call at 5:00 p.m. ET today, Thursday, August 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 till Thursday, August 22, 2024, 11:59 PM ET by dialing 1-844-512-2921 or 1-412-317-6671, passcode 13743375.

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 statement regarding 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 June 30, 2024 and December 31, 2023
(In thousands, except share data and par value amounts) (Unaudited)
     
  June 30, 2024 December 31, 2023
Assets  
Current assets  
Cash and cash equivalents $73,390  $116,854 
Restricted cash  19,122    
Accounts receivable, net of allowance for expected credit losses ($438 and $360, respectively)  21,605   24,059 
Inventory  22,557   26,773 
Prepaid expenses  2,052   2,756 
Other current assets  1,940   2,022 
Total current assets  140,666   172,464 
Property and equipment, net  16,945   17,713 
Intangible assets, net  15,596   17,128 
Right-of-use assets  34,819   36,884 
Other assets  3,768   3,763 
Total assets $211,794  $247,952 
Liabilities and Stockholders’ Equity   
Current liabilities  
Accounts payable $8,749  $13,235 
Accrued expenses  11,276   9,840 
Litigation payable  17,511    
Deferred revenue  8,997   8,779 
Lease liabilities  7,361   7,368 
Other current liabilities     1,526 
Total current liabilities  53,894   40,748 
Long-term deferred revenue  5,187   6,083 
Contingent earnout liability  245   1,379 
Long-term lease liabilities  33,420   35,771 
Other liabilities  1,652   2,361 
Total liabilities  94,398   86,342 
Commitments and contingencies    
Stockholders’ equity    
Common stock, $0.0001 par value; 1,000,000,000 shares authorized at June 30, 2024 and December 31, 2023; 202,549,293 and 198,581,263 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively  19   19 
Additional paid-in capital  373,397   366,281 
Accumulated deficit  (255,008)  (204,664)
Accumulated other comprehensive income  (1,012)  (26)
Total stockholders’ equity  117,396   161,610 
Total liabilities and stockholders’ equity $211,794  $247,952 
     


MARKFORGED HOLDING CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three and Six Months Ended June 30, 2024 and 2023
(In thousands, except share data and per share data)
        
 Three Months Ended June 30, Six Months Ended June 30,
  2024   2023   2024   2023 
Revenue 21,688   25,449  $42,235  $49,539 
Cost of revenue 10,810   13,476   21,224   25,984 
Gross profit 10,878   11,973   21,011   23,555 
Operating expenses       
Sales and marketing 8,526   9,666   16,370   20,242 
Research and development 9,060   10,286   18,995   20,666 
General and administrative 10,334   12,120   22,499   24,248 
Litigation judgment       17,300    
Total operating expenses 27,920   32,072   75,164   65,156 
Loss from operations (17,042)  (20,099)  (54,153)  (41,601)
Change in fair value of derivative liabilities 95   125   126   314 
Change in fair value of contingent earnout liability 1,295   (817)  1,134   (7)
Other expense, net (84)  (16)  (219)  (222)
Interest expense (170)  (116)  (324)  (116)
Interest income 1,230   1,577   2,630   3,268 
Loss before income taxes (14,676)  (19,346)  (50,806)  (38,364)
Income tax (benefit) expense (278)  (358)  (462)  (357)
Net loss$(14,398) $(18,988) $(50,344) $(38,007)
Weighted average shares outstanding - basic and diluted 201,252,969   196,372,157   200,273,880   195,873,471 
Net loss per share - basic and diluted$(0.07) $(0.10) $(0.25) $(0.19)
        


MARKFORGED HOLDING CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME (LOSS)
For the Three and Six Months Ended June 30, 2024 and 2023
(In thousands)
        
 Three Months Ended June 30, Six Months Ended June 30,
  2024   2023   2024   2023 
Net loss$(14,398) $(18,988) $(50,344) $(38,007)
Other comprehensive loss, net of taxes:       
Unrealized loss on available-for-sale marketable securities, net    25      (25)
Foreign currency translation adjustment 55   (1,704)  (986)  (1,546)
Total comprehensive loss$(14,343) $(20,667) $(51,330) $(39,578)
        


MARKFORGED HOLDING CORPORATION
DISAGGREGATED REVENUE BY NATURE OF PRODUCTS AND SERVICES
(In thousands) (Unaudited)
  Three Months Ended June 30, Six Months Ended June 30,
(in thousands)  2024  2023  2024  2023
Hardware $12,650 $16,506 $23,924 $31,701
Consumables  5,914  6,482  12,318  12,937
Services  3,124  2,461  5,993  4,901
Total Revenue $21,688 $25,449 $42,235 $49,539
         
         
MARKFORGED HOLDING CORPORATION
DISAGGREGATED REVENUE BY GEOGRAPHIC LOCATION
(In thousands) (Unaudited)
  Three Months Ended June 30, Six Months Ended June 30,
(in thousands)  2024  2023  2024  2023
Americas $9,688 $11,982 $19,783 $22,440
EMEA  6,785  7,618  13,120  16,110
APAC  5,215  5,849  9,332  10,989
Total Revenue $21,688 $25,449 $42,235 $49,539
         


MARKFORGED HOLDING CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(In thousands) (Unaudited)
         
 Three Months Ended June 30,Six Months Ended June 30,
  2024   2023  2024   2023 
Net loss$(14,398) $(18,988)$(50,344) $(38,007)
Stock compensation expense 3,245   1,690  6,706   6,046 
Change in fair value of derivative liabilities  (95)  (125)  (126)  (314)
Change in fair value of contingent earnout liability  (1,295)  817   (1,134)  7 
Amortization  371   254   749   531 
Litigation judgment        17,300    
Non-recurring costs1  1,395   3,812   3,841   5,893 
Non-GAAP net loss$(10,777) $(12,540)$(23,008) $(25,844)
         
1Non-recurring costs incurred during the three and six months ended June 30, 2024 and 2023 relate to litigation expense.
     
 Three Months Ended June 30,Six Months Ended June 30,
Non-GAAP Cost of Revenue  2024   2023  2024   2023 
Cost of revenue$10,810  $13,476 $21,224  $25,984 
Stock compensation expense 35   89  84   162 
Amortization  351   218   708   446 
Non-GAAP Cost of Revenue  10,424   13,169   20,432   25,376 
         
 Three Months Ended June 30,Six Months Ended June 30,
Non-GAAP Gross Profit 2024   2023  2024   2023 
Gross profit$10,878  $11,973 $21,011  $23,555 
Stock compensation expense 35   89  84   162 
Amortization  351   218   708   446 
Non-GAAP gross profit  11,264   12,280   21,803   24,163 
         
 Three Months Ended June 30,Six Months Ended June 30,
Non-GAAP Sales and Marketing Expenses 2024   2023  2024   2023 
Sales and marketing expenses$8,526  $9,666 $16,370  $20,242 
Stock compensation expense 387   499  792   975 
Amortization  20   36   41   85 
Non-GAAP sales and marketing expenses  8,119   9,131   15,537   19,182 
         
 Three Months Ended June 30,Six Months Ended June 30,
Non-GAAP Research and Development Expenses 2024   2023  2024   2023 
Research and development expenses$9,060  $10,286 $18,995  $20,666 
Stock compensation expense 1,009   1,160  2,110   2,329 
Non-GAAP research and development expenses  8,051   9,126   16,885   18,337 
         
 Three Months Ended June 30,Six Months Ended June 30,
Non-GAAP General and Administrative Expenses 2024   2023  2024   2023 
General and administrative expenses$10,334  $12,120 $22,499  $24,248 
Stock compensation expense 1,814   (58) 3,720   2,580 
Non-recurring costs1  1,395   3,812   3,841   5,893 
Non-GAAP general and administrative expenses  7,125   8,366   14,938   15,775 
         
 Three Months Ended June 30,Six Months Ended June 30,
Non-GAAP Operating Loss 2024   2023  2024   2023 
Operating loss$(17,042) $(20,099)$(54,153) $(41,601)
Stock compensation expense 3,245   1,690  6,706   6,046 
Amortization  371   254   749   531 
Litigation judgment        17,300    
Non-recurring costs1  1,395   3,812   3,841   5,893 
Non-GAAP operating loss  (12,031)  (14,343)  (25,557)  (29,131)
         
1Non-recurring costs incurred during the three and six months ended June 30, 2024 and 2023 relate to litigation expense.
         

Primary Logo