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 first quarter ended March 31, 2022.
Financial Highlights
- Revenue increased by 8.6%, to $21.9 million, in the first
quarter of 2022 from $20.1 million in the first quarter of
2021.
- Gross margin was 53.1% in the first quarter of 2022 compared to
60.5% in the first quarter of 2021.
- Non-GAAP gross margin was 53.6% in the first quarter of 2022
compared to 60.7% in the first quarter of 2021.
- Net profit (loss) was a profit of $4.2 million in the first
quarter of 2022, compared to a net loss of $10.0 million in the
first quarter of 2021.
- Non-GAAP profit (loss) was a loss of $15.5 million in the first
quarter of 2022, compared to a loss of $7.8 million in the first
quarter of 2021.
- GAAP earnings per share was a profit of $0.02 for the first
quarter of 2022, compared to a loss of $0.25 in the first quarter
of 2021.
- Non-GAAP earnings per share was a loss of $0.08 for the first
quarter of 2022, compared to a loss of $0.20 in the first quarter
of 2021.
- Cash and cash equivalents were $269.1 million as of March 31,
2022.
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 under the heading “Non-GAAP
Financial Measures.”
“Markforged is a differentiated player in additive
manufacturing. We bring a strong balance sheet and a track record
of execution to our industry. Our focus on high-value, end-use
manufacturing applications, printed at the point of need, solves
for today’s extreme supply chain challenges, resulting in a growing
install base and leading gross margins. We are accelerating organic
product innovation as planned and increasing our addressable
market. I’m so proud of our team for their execution against our
plan,” said Shai Terem, President and CEO of Markforged. “We also
applaud the Biden administration’s Additive Manufacturing Forward
initiative, announced earlier this month, which we believe will
help accelerate adoption of additive technologies and create more
agile and resilient supply chains. Markforged is excited to be part
of this important initiative to help strengthen American
manufacturing.”
Business Highlights
Production and delivery of Markforged’s newest printer, the
FX20, continued as planned this quarter. The majority of shipments
will occur in the second half of the year, but the printers already
in the field are generating great feedback and increased interest.
The FX20 will be showcased in North America for the first time next
week at the Rapid + TCT 2022 trade show in Detroit.
The company launched Precise PLA in the first quarter as part of
our strategy to expand our addressable market. This cost-effective,
specialized version of polylactic acid enables our customers to use
the Markforged solution for the full product lifecycle, from design
through tooling and into production.
Subsequent to the quarter-end Markforged completed its
acquisition of cloud-native software provider Teton Simulation
Software. Teton’s SmartSlice™ technology will be integrated into
Markforged’s Eiger software as a subscription add-on, enabling
customers to optimize and validate advanced composite parts for the
most demanding production applications.
As part of Markforged’s long-term growth strategy, the Company
made continued, yet measured, investments to accelerate innovation
efforts in R&D and grow its go-to-market organization. The
Markforged organization grew to over 400 team members this
quarter.
2022 Guidance
Markforged reaffirms its full-year 2022 guidance. Revenue is
expected to be within the range of $114-123 million, and non-GAAP
gross margins are expected to be within the range of 55%-57%.
Non-GAAP earnings per share results for the full year are expected
to be a loss in the range of $0.28 - $0.31 per share, based on an
outstanding share count of approximately 187 million shares.
Conference Call and Webcast Information
The Company will host a webcast and conference call at 5:00 p.m.
ET today, Thursday, May 12, to discuss the results and other
matters.
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 1-877-300-8521, or
1-412-317-6026 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 May 26, 2022, by dialing 1-844-512-2921 (U.S. domestic) or
1-412-317-6671 (International), passcode 10165836.
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 non-GAAP profit (loss), 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.
Non-GAAP profit (loss)
We define non-GAAP profit (loss) as net profit (loss) and
comprehensive income (loss) less stock-based compensation expense,
net change in fair value of warrant liabilities and contingent
earnout liabilities, and non-recurring transaction costs. We
monitor non-GAAP profit (loss) 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 non-GAAP profit (loss) is
useful in evaluating our business, non-GAAP profit (loss) is a
non-GAAP financial measure that has limitations as an analytical
tool. Non-GAAP profit (loss) can be useful in evaluating our
performance by eliminating the effect of certain 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 anticipated benefits of the acquisition
of Teton Simulation Software, 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 March 31, 2022 and
December 31, 2021
(In thousands, except share
data and par value amounts) (Unaudited)
March 31, 2022
December 31, 2021
Assets
Current assets
Cash and cash equivalents
$
269,138
$
288,603
Accounts receivable, net
22,806
26,777
Inventory
12,801
10,377
Prepaid expenses
3,636
3,921
Other current assets
1,887
511
Total current assets
310,268
330,189
Property and equipment, net
6,680
6,349
Right-of-use assets
11,702
—
Other assets
1,012
776
Total assets
$
329,662
$
337,314
Liabilities and Stockholders’
Equity
Current liabilities
Accounts payable
$
6,653
$
11,403
Accrued expenses
8,009
7,411
Deferred revenue
6,367
6,288
Operating lease liabilities
2,962
—
Other current liabilities
53
310
Total current liabilities
24,044
25,412
Long-term deferred revenue
3,808
3,742
Deferred rent
—
1,623
Contingent earnout liability
34,826
59,722
Long-term operating lease liabilities
10,621
—
Other liabilities
1,953
2,646
Total liabilities
75,252
93,145
Commitments and contingencies
Stockholders’ equity
Common stock, $0.0001 par value;
1,000,000,000 shares authorized at March 31, 2022 and December 31,
2021; 187,117,960 and 185,993,058 shares issued at March 31, 2022
and December 31, 2021, respectively
19
19
Additional paid-in capital
325,861
319,859
Accumulated deficit
(71,470
)
(75,709
)
Total stockholders’ equity
254,410
244,169
Total liabilities and stockholders’
equity
$
329,662
$
337,314
MARKFORGED HOLDING
CORPORATION
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME
(LOSS)
For the three months ended
March 31, 2022 and 2021
(In thousands, except share
data and per share data) (Unaudited)
Three Months Ended March
31,
2022
2021
Revenue
$
21,859
$
20,120
Cost of revenue
10,253
7,939
Gross profit
11,606
12,181
Operating expenses
Sales and marketing
10,448
7,057
Research and development
10,567
5,259
General and administrative
11,743
8,863
Total operating expenses
32,758
21,179
Loss from operations
(21,152
)
(8,998
)
Change in fair value of warrant
liabilities
693
(1,010
)
Change in fair value of contingent earnout
liability
24,896
—
Other expense
(219
)
(13
)
Interest expense
—
(4
)
Interest income
20
2
Profit (loss) before income
taxes
4,238
(10,023
)
Income tax benefit
(1
)
(4
)
Net profit (loss) and comprehensive
income (loss)
$
4,239
$
(10,019
)
Weighted average shares outstanding -
basic
186,383,312
39,440,986
Weighted average shares outstanding -
diluted
191,100,683
39,440,986
Net profit (loss) per share - basic
$
0.02
$
(0.25
)
Net profit (loss) per share - diluted
0.02
(0.25
)
MARKFORGED HOLDING
CORPORATION
RECONCILIATION OF GAAP TO
NON-GAAP MEASURES
For the three months and years
ended March 31, 2022 and 2021
(In thousands)
(Unaudited)
Three Months Ended March
31,
2022
2021
Net profit (loss) and comprehensive income
(loss)
$
4,239
$
(10,019
)
Stock compensation expense
5,422
1,194
Change in fair value of warrant
liabilities
(693
)
1,010
Change in fair value of contingent earnout
liability
(24,896
)
—
Transaction costs expensed
400
—
Non-GAAP loss 1
$
(15,528
)
$
(7,815
)
1Stock-based compensation expense and
transaction costs were included in the following GAAP consolidated
statement of operations categories:
Three Months Ended March
31,
2022
2021
Cost of revenue
$
115
$
27
Sales and marketing
848
84
Research and development
1,419
331
General and administrative
3,440
752
Total operating expense
5,707
1,167
Total adjustments
$
5,822
$
1,194
MARKFORGED HOLDING
CORPORATION
DISAGGREGATED REVENUE BY
NATURE OF PRODUCTS AND SERVICES
(In thousands)
(Unaudited)
Three Months Ended March
31,
(in thousands)
2022
2021
Hardware
$
14,517
$
14,239
Consumables
5,456
4,617
Services
1,886
1,264
Total Revenue
$
21,859
$
20,120
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220512006045/en/
Media Paulina Bucko, Head of Communications
press@markforged.com
Austin Bohlig, Director of Investor Relations
investors@markforged.com
Markforged (NYSE:MKFG)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Markforged (NYSE:MKFG)
Historical Stock Chart
Von Jul 2023 bis Jul 2024