Company Exceeds 2021 Growth Targets
Markforged Holding Corporation (NYSE: MKFG) (the “Company”),
creator of the integrated metal and carbon fiber additive
manufacturing platform, The Digital Forge, today announced its
results from the fourth quarter and full fiscal year ended December
31, 2021.
“This has been a tremendous growth year for Markforged. We
executed on the plan we shared a year ago and beat our targets for
2021, making Markforged one of the fastest organically growing
additive manufacturing companies, with industry-leading gross
margins,” said Shai Terem, President and CEO of Markforged. “Thanks
to the hard work of our team, we exceeded growth targets for both
the fourth quarter and full fiscal year. We saw a 27% organic
growth rate in 2021, as the Digital Forge continued to solve
manufacturing challenges for customers around the world. Our
closely integrated hardware, software and materials are designed to
allow our customers to overcome ongoing global supply chain
constraints by printing industrial-strength parts for critical
applications directly at the point-of-need.”
Financial Highlights for Full-Year 2021
- Revenue increased 27%, to $91.2 million, in 2021 as compared to
$71.9 million in 2020.
- Gross profit grew 26%, to $52.9 million, in 2021 from $41.9
million in 2020.
- Gross margin was 58% in 2021, consistent with our 2020 gross
margin.
- Net loss from operations was $61.0 million in 2021, compared to
a net loss from operations of $17.7 million in the year prior.
- Adjusted EBITDA was a loss of $38.7 million in 2021, compared
to a loss of $13.4 million in the year prior.
- Cash and cash equivalents were $288.6 million as of December
31, 2021.
Financial Highlights for the Fourth Quarter of 2021
- Revenue increased by 9%, to $26.6 million, in the fourth
quarter of 2021 from $24.3 million in the fourth quarter of 2020.
Revenue increased by 33%, to $26.6 million, in the fourth quarter
of 2021 from $20.0 million in the fourth quarter of 2020, when
adjusted for revenues generated from the single largest transaction
in our history, Automation Alley.
- Gross profit decreased 4%, to $15.0 million, in the fourth
quarter of 2021 from $15.7 million in the fourth quarter of
2020.
- Gross margin was 56% in the fourth quarter of 2021 compared to
65% in the fourth quarter of 2020.
- Net loss from operations was $18.9 million in the fourth
quarter of 2021, compared to a net loss from operations of $3.2
million in the fourth quarter of 2020.
- Adjusted EBITDA was a loss of $11.0 million in the fourth
quarter of 2021, compared to a loss of $1.7 million in the fourth
quarter of 2020.
Adjusted EBITDA is a non-GAAP measure. Please see “Non-GAAP
Financial Measures” below for a reconciliation of Adjusted EBITDA
to the most directly comparable non-GAAP measure.
Business Highlights
In 2021, the Company continued to expand the addressable market
of the Digital Forge by introducing 12 major, new solutions to the
platform in the form of printers, software updates and materials.
Most notably, the FX20 with ULTEM™ 9085 Filament with Continuous
Fiber Reinforcement advanced the Company’s position as a leader in
point-of-need production in industrial-strength parts. Built to
scale distributed global production, the FX20 empowers Markforged
customers to move their additive operations into robust production
with strong, accurate parts that solve demanding, end-use
applications.
Markforged also grew its greatest asset - its team. Having
nearly doubled in size with approximately 400 employees to close
out 2021, including several key executive hires, the team is
sharply focused on developing multiple products simultaneously to
accelerate the growth of the Digital Forge’s addressable
market.
“Between the release of new, expanded capabilities of the
Digital Forge and the material uptick in volume shipment of the
FX20 expected in the latter half of this year, we remain confident
in our ability to achieve our targets again in 2022,” says Mark
Schwartz, Chief Financial Officer.
Business Outlook for Full-Year 2022
- Full-year revenue is anticipated to be $114.0 - $123.0 million,
representing year over year growth of 30% at the midpoint of that
range.
- Factoring in seasonality and FX20 revenue in the second half of
the year, we expect 60% - 65% of our revenue will be recognized in
the second half of the year.
- Expectations continue for generating industry-leading gross
margins, with full-year non-GAAP gross margin expected to be in the
range of 55% - 57%.
- We expect operating expenses to decline as a percentage of our
revenue, resulting in a non-GAAP operating loss in the range of
$52.0 - $57.0 million for the year.
- We expect non-GAAP earnings per share results for the full year
to be a loss in the range of $0.28 - $0.31 per share, based on an
outstanding share count of approximately 186 million shares.
- Beginning in the first quarter of 2022, we intend to supplement
the reporting of our GAAP results with certain non-GAAP results for
gross profit, operating profit, and earnings per share, intended to
provide broader insight into how we manage our business. We believe
this will provide a more meaningful set of data points, for
comparison purposes, than our prior non-GAAP reporting of adjusted
EBITDA.
Conference Call and Webcast Information
The Company will host a webcast and conference call at 5:00 p.m.
ET today, Tuesday, March 15, to discuss the results.
Participants may access 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 for international participants, 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
through March 29, 2022 by dialing 1-844-512-2921 (U.S. domestic) or
1-412-317-6671 (International), passcode 13727359.
Amounts herein pertaining to December 31, 2021 represent a
preliminary estimate as of the date of this earnings release and
may be revised upon filing our Annual Report on Form 10-K with the
Securities and Exchange Commission (the “SEC”). More information on
our results of operations for the three and twelve months ended
December 31, 2021 will be provided upon filing our Annual Report on
Form 10-K with the SEC.
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 400 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
profit (loss) and comprehensive loss less interest income, interest
expense, income tax expense, depreciation and amortization expense,
stock-based compensation expense, net change in fair value of
warrant liabilities and contingent earnout liabilities, and
non-recurring transaction costs. 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
certain non-cash items and or 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, future growth rate, revenue and gross profit margin
guidance; expected growth, the size of and opportunity to increase
our addressable market; the rate and extent of adoption of our
products, including, but not limited to, our most recently
introduced products; the effects of the global supply chain
disruptions; the contributions of individual executive team
members; 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
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.
MARKFORGED HOLDING CORPORATION CONDENSED CONSOLIDATED
BALANCE SHEETS As of December 31, 2021 and 2020 (In
thousands, except share data and par value amounts) (Unaudited)
December 31, 2021 December 31,2020
Assets Current assets Cash and cash equivalents
$
288,603
$
58,715
Accounts receivable, net
26,777
16,601
Inventory
10,377
6,553
Prepaid expenses
3,921
1,496
Other current assets
511
1,373
Total current assets
330,189
84,738
Property and equipment, net
6,349
4,281
Other assets
776
584
Total assets
$
337,314
$
89,603
Liabilities, Convertible Preferred Stock, and Stockholders’
Equity (Deficit) Current liabilities Accounts payable
$
11,403
$
3,369
Accrued expenses
7,411
8,168
Deferred revenue
6,288
6,196
Other current liabilities
310
300
Total current liabilities
25,412
18,033
Long-term debt
—
5,022
Long-term deferred revenue
3,742
2,905
Deferred rent
1,623
1,073
Contingent earnout liability
59,722
—
Other liabilities
2,646
545
Total liabilities
93,145
27,578
Commitments and contingencies Convertible preferred stock
—
137,497
Stockholders’ equity (deficit) Common stock, $0.0001 par value;
1,000,000,000 and 183,300,000 shares authorizedon December 31, 2021
and 2020; 185,993,058 and 39,510,108shares issued on December 31,
2021 and 2020, respectively
19
4
Additional paid-in capital
319,859
5,538
Treasury stock, 0 and 483,479 shares on December 31, 2021 and 2020,
respectively
—
(1,450
)
Accumulated deficit
(75,709
)
(79,564
)
Total stockholders’ equity (deficit)
244,169
(75,472
)
Total liabilities, convertible preferred stock, and stockholders’
equity (deficit)
$
337,314
$
89,603
MARKFORGED HOLDING CORPORATION CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME (LOSS) For the three months and years ended December
31, 2021 and 2020 (In thousands, except share data and per
share data) (Unaudited) Three Months Ended December
31, Year Ended December 31,
2021
2020
2021
2020
Revenue
$
26,637
$
24,337
$
91,221
$
71,851
Cost of revenue
11,603
8,605
38,368
29,921
Gross profit
15,034
15,732
52,853
41,930
Operating expenses Sales and marketing
10,255
5,669
35,966
22,413
Research and development
10,691
4,293
32,155
17,176
General and administrative
13,015
8,942
45,772
20,080
Total operating expenses
33,961
18,904
113,893
59,669
Loss from operations
(18,927
)
(3,172
)
(61,040
)
(17,739
)
Change in fair value of warrant liabilities
1,638
(96
)
1,808
(175
)
Change in fair value of contingent earnout liability
20,697
—
63,407
—
Other expense
(97
)
(20
)
(265
)
(9
)
Interest expense
(1
)
(47
)
(16
)
(98
)
Interest income
8
1
17
147
Profit (loss) before income taxes
3,318
(3,334
)
3,911
(17,874
)
Income tax (benefit) expense
57
(2
)
56
111
Net profit (loss) and comprehensive income (loss)
$
3,261
$
(3,332
)
$
3,855
$
(17,985
)
Deemed dividend - redemption of common stock
—
(826
)
—
(826
)
Net loss attributable to common stockholders
$
3,261
$
(4,158
)
$
3,855
$
(18,811
)
Weighted average shares outstanding - basic
185,857,298
39,324,355
108,088,115
38,336,659
Weighted average shares outstanding - diluted
190,535,066
39,324,355
113,963,424
38,336,659
Net profit (loss) per share - basic
$
0.02
$
(0.11
)
$
0.04
$
(0.49
)
Net profit (loss) per share - diluted
$
0.02
$
(0.11
)
$
0.03
$
(0.49
)
MARKFORGED HOLDING CORPORATION RECONCILIATION OF
GAAP TO NON-GAAP MEASURES For the three months and years
ended December 31, 2021 and 2020 (In thousands)
(Unaudited) Three Months Ended
December 31, Year Ended December 31,
2021
2020
2021
2020
Net profit (loss) and comprehensive income (loss)
$
3,261
$
(3,332
)
$
3,855
$
(17,985
)
Interest income
(8
)
(1
)
(17
)
(147
)
Interest expense
1
47
16
98
Income tax expense
57
(2
)
56
111
Depreciation and amortization
451
434
1,720
1,795
EBITDA
$
3,762
$
(2,854
)
$
5,630
$
(16,128
)
Stock compensation expense
7,535
1,041
18,930
2,569
Change in fair value of warrant liabilities
(1,638
)
96
(1,808
)
175
Change in fair value of contingent earnout liability
(20,697
)
—
(63,407
)
—
Transaction costs expensed
—
—
1,996
—
Adjusted EBITDA
$
(11,038
)
$
(1,717
)
$
(38,659
)
$
(13,384
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220315006264/en/
Media Paulina Bucko, Head of Communications press@markforged.com
Austin Bohlig, Director of Investor Relations
investors@markforged.com
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