Markforged Holding Corporation (NYSE: MKFG), creator of the
integrated metal and carbon fiber additive manufacturing platform,
The Digital Forge, today announced the results of MarkForged, Inc.
from the second quarter ended June 30, 2021.1
Financial Highlights
- Revenue increased by 44.1% to $20.4 million in the second
quarter of 2021 from $14.2 million in the second quarter of
2020.
- Gross profit grew 60.0% to $11.9 million in the second quarter
of 2021 from $7.5 million in the second quarter of 2020.
- Gross margins expanded to 58% in the second quarter of 2021
compared to 53% in the second quarter of 2020.
- EBITDA was ($10.7) million in the second quarter of 2021.
-
Adjusted EBITDA was ($8.9) million in the second quarter of 2021
compared to ($4.7) million in the second quarter of 2020. Adjusted
EBITDA includes non-recurring litigation; audit, legal and other
expenses associated with the SPAC transaction; and other
transitional 2021 public company expenses of $0.9 million and $0.3
million for the three months ending June 30, 2021 and 2020
respectively.
- Reaffirms previously provided guidance for 2021 annual revenue
of $87.6 million, gross profit margin of 58% and Adjusted EBITDA
loss of $37 million.
Adjusted EBITDA is a non-GAAP measure. A reconciliation of the
GAAP to non-GAAP measure and an explanation of this measure is
included below.
On July 14, 2021, MarkForged, Inc. completed its
previously-announced merger with one (NYSE: AONE), a special
purpose acquisition company, and debuted as Markforged Holding
Corporation on the New York Stock Exchange on July 15, 2021 under
the ticker symbol “MKFG.”
“We are pleased with our results as we look to continue to build
momentum for the remainder of the year,” said Shai Terem,
Markforged’s President and Chief Executive Officer. “The Digital
Forge is helping solve critical manufacturing and supply chain
challenges for our customers. We launched new key products and
software updates this quarter as part of our strategy to meet the
growing demand for our solutions. Our recent debut on the New York
Stock Exchange energized and motivated our talented and hardworking
team, and I look forward to seeing what we will accomplish together
in the remainder of 2021.”
1 The results reported in this press release reflect the
performance of MarkForged, Inc. prior to the completion of its
merger with one on July 14, 2021.
Business Highlights
In the second quarter Markforged launched key products aimed at
enhancing the Digital Forge to enable customers to better solve for
their manufacturing and supply chain problems directly at the point
of need. Metal X Gen 2, Next Day Metal and X7 Field Edition improve
the speed, user experience, and ability to print anywhere, enabling
the Digital Forge to help our customers overcome challenges more
quickly and easily than before. The introduction of the FX20, our
biggest, fastest, and most sophisticated 3D printer, is intended to
move the Digital Forge into robust production and help customers
produce high-strength, higher performance parts for those operating
in demanding and regulated industries like aerospace, defense, and
automotive.
The financial guidance provided above includes forward-looking
statements within the meaning of U.S. securities laws. Markforged’s
actual results may differ materially. See “Special Note Regarding
Forward-Looking Statements” below.
In preparation for becoming a public company, Markforged
continued to build out its management team and Board of Directors
with several experienced and talented additions. The company
welcomed Mark Schwartz as the Chief Financial Officer and Ken
Clayton as Senior Vice President of Global Sales. Kevin Hartz,
Carol Meyers, former CMO of Rapid 7, and Alan Masarek, former CEO
of Vonage, also joined the Board of Directors upon the completion
of the merger.
Conference Call and Webcast Information
Markforged will host a conference call to discuss these
financial results and other matters for investors and analysts at 5
p.m ET on August 12, 2021. To participate in the call, please dial
1-877-423-9813, or 1-201-689-8573 for international participants,
ten minutes before the scheduled start.
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/
For those unable to listen to the live conference call, a replay
will be available on the Company's website and telephonically
through August 26, 2021 by dialing 1-844-512-2921 (U.S. domestic)
or 1-412-317-6671 (International), passcode 21996548.
About Markforged
Markforged (NYSE: MKFG) is reimagining how humans build
everything by leading a technology-driven transformation of
manufacturing with solutions for enterprises and societies
throughout the world. The Markforged Digital Forge brings the power
and speed of agile software development to industrial
manufacturing, combining hardware, software, and materials to solve
supply chain problems right at the point-of-need. Engineers,
designers, and manufacturing professionals all over the world rely
on Markforged metal and composite printers for tooling, fixtures,
functional prototyping, and high-value end-use production.
Markforged is headquartered in Watertown, Mass., where it designs
its products with over 350 employees worldwide. 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 Adjusted EBITDA, a non-GAAP financial measure, is
useful in evaluating the performance of our business.
This non-GAAP measure has 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 this non-GAAP
measure to the most directly comparable GAAP financial measure
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.
Adjusted EBITDA
We define Adjusted EBITDA, a non-GAAP financial measure, as net
loss and comprehensive loss less net interest income; provision for
income taxes; depreciation and amortization expense; and
stock-based compensation expense. We monitor Adjusted EBITDA as a
measure of our overall business performance, which enables us to
analyze our past and future performance without the effects of
non-cash items and one-time charges. While we believe that Adjusted
EBITDA is useful in evaluating our business, Adjusted EBITDA is a
non-GAAP financial measure that has limitations as an analytical
tool. Adjusted EBITDA can be useful in evaluating our performance
by eliminating the effect of financing, capital expenditures, and
non-cash expenses such as stock-based compensation, however, we may
incur such expenses in the future which could impact future
results.
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,” “anticipate,” “believe,”
“estimate,” “predict,” “project,” “potential,” “continue,”
“ongoing” 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, statements regarding Markforged’s product roadmap,
pipeline and future innovation, and the benefits to consumers,
functionality and applications of Markforged’s products. 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; the effect of COVID-19 on Markforged’s business and
financial results; the outcome of any legal proceedings against
Markforged; and those factors discussed under the header “Risk
Factors” in the Proxy Statement and Prospectus filed pursuant to
Rule 424B(3) with the SEC on June 24, 2021 and those included under
the header “Risk Factors” in Markforged’s periodic report on Form
10-Q for the quarter ended June 30, 2021 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.
MARKFORGED, INC. CONDENSED CONSOLIDATED
BALANCE SHEETS As of June 30, 2021 and December 31, 2020 (In
thousands, except share data and par value amounts)
(Unaudited)
June 30, 2021
December 31, 2020
Assets
Current assets
Cash and cash equivalents
$
33,144
$
58,715
Accounts receivable, net
17,567
16,601
Inventory
7,926
6,553
Prepaid expenses
1,691
1,496
Other current assets
814
1,373
Total current assets
61,142
84,738
Property and equipment, net
4,480
4,281
Deferred transaction costs
4,884
—
Other assets
645
584
Total assets
$
71,151
$
89,603
Liabilities, Convertible Preferred
Stock, and Stockholders’ Deficit
Current liabilities
Accounts payable
$
6,340
$
3,369
Accrued expenses
8,432
8,168
Deferred revenue
5,192
6,196
Other current liabilities
331
300
Total current liabilities
20,295
18,033
Long-term debt
—
5,022
Long-term deferred revenue
2,820
2,905
Deferred rent
1,483
1,073
Other liabilities
—
545
Total liabilities
24,598
27,578
Commitments and contingencies (Note
12)
Convertible preferred stock (Note 8)
137,952
137,497
Stockholders’ deficit
Common stock, $0.00001 par value;
183,300,000 shares authorized at June 30, 2021 and December 31,
2020; 42,537,176 and 41,491,257 shares issued and outstanding at
June 30, 2021 and December 31, 2020, respectively
—
—
Additional paid-in capital
10,724
5,542
Treasury stock, 507,722 shares at cost at
June 30, 2021 and December 31, 2020
(1,450
)
(1,450
)
Accumulated deficit
(100,673
)
(79,564
)
Total stockholders’ deficit
(91,399
)
(75,472
)
Total liabilities, convertible preferred
stock, and stockholders’ deficit
$
71,151
$
89,603
MARKFORGED, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS
For the Three and Six Months
Ended June 30, 2021 and 2020
(In thousands, except share
data) (Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2021
2020
2021
2020
Revenue
$
20,419
$
14,174
$
40,539
$
31,875
Cost of revenue
8,496
6,720
16,435
14,997
Gross profit
11,923
7,454
24,104
16,878
Operating expense
Sales and marketing
8,255
5,296
15,312
11,761
Research and development
6,444
4,206
11,703
8,852
General and administrative
7,959
3,623
16,822
7,250
Total operating expense
22,658
13,125
43,837
27,863
Loss from operations
(10,735
)
(5,671
)
(19,733
)
(10,985
)
Other (expense) income, net
(345
)
10
(1,368
)
23
Interest expense
(5
)
(20
)
(9
)
(29
)
Interest income
1
21
3
144
Loss before income taxes
(11,084
)
(5,660
)
(21,107
)
(10,847
)
Income tax expense
6
29
2
87
Net loss and comprehensive loss
$
(11,090
)
$
(5,689
)
$
(21,109
)
$
(10,934
)
Weighted average shares outstanding basic
and diluted
41,853,841
39,980,784
41,638,004
39,856,193
Basic and diluted net loss per common
share
$
(0.26
)
$
(0.14
)
$
(0.51
)
$
(0.27
)
MARKFORGED, INC.
RECONCILIATION OF GAAP TO
NON-GAAP MEASURES
For the Three and Six Months
Ended June 30, 2021 and 2020
(In thousands, except share
data) (Unaudited)
Three Months Ended June
30,
2021
2020
Total Revenue
$
20,419
$
14,174
Gross Profit
11,923
7,454
Gross Margin %
58
%
53
%
Operating Expenses
22,658
13,125
Operating Loss
(10,735
)
(5,671
)
Other Income (Expense)
(345
)
10
Depreciation & Amortization
411
456
EBITDA
(10,669
)
(5,205
)
Stock-Based Compensation
1,777
503
Adjusted EBITDA
$
(8,892
)
$
(4,702
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210812005839/en/
Markforged Media Paulina Bucko, Head of
Communications paulina.bucko@markforged.com
Investors investors@markforged.com
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