Markforged Holding Corporation (NYSE: MKFG) (the “Company”), the
company strengthening manufacturing resiliency by enabling
industrial production at the point of need, today announced its
results from the fourth quarter and full fiscal year ended December
31, 2022.
Financial Highlights for the Fourth Quarter of 2022
- Revenue increased by 11%, to $29.7 million, in the fourth
quarter of 2022 from $26.6 million in the fourth quarter of
2021.
- Gross profit decreased 7%, to $13.9 million, in the fourth
quarter of 2022 from $15.0 million in the fourth quarter of
2021.
- Gross margin was 47% in the fourth quarter of 2022 compared to
56% in the fourth quarter of 2021.
- Net loss was $10.7 million in the fourth quarter of 2022,
compared to net profit of $3.3 million in the fourth quarter of
2021.
- Non-GAAP net loss was a loss of $13.3 million in the fourth
quarter of 2022, compared to a loss of $11.2 million in the fourth
quarter of 2021.
Financial Highlights for Full-Year 2022
- Revenue increased 11%, to $101.0 million, in 2022 as compared
to $91.2 million in 2021.
- Gross profit decreased 4%, to $50.7 million, in 2022 from $52.9
million in 2021.
- Gross margin was 50% in 2022, a decline from 58% in 2021.
- Net loss was $25.4 million in 2022, compared to net profit of
$3.9 million in the year prior.
- Non-GAAP net loss was $60.1 million in 2022, compared to a net
loss of $35.1 million in 2021.
- Cash, cash equivalents, and short-term investments were $167.9
million as of December 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.”
“We ended the year strong, with record quarterly revenues, as
demand for The Digital Forge continued to grow worldwide despite a
challenging operating environment. Supply chain disruption remains
a key catalyst for growth, as manufacturers shorten their supply
chains through point of need industrial production,” said Shai
Terem, President and CEO of Markforged. “We made pivotal progress
in 2022 on our strategy to achieve profitable growth. We materially
expanded our addressable market organically, through the
introduction of the FX20, and inorganically through our successful
acquisitions of Teton Simulation and Digital Metal, and we are
confident we will see material growth as a result in the coming
years. And each step along the way we continued to develop
operational efficiencies and implement cost controls to keep us on
our path to profitability.”
Business Highlights
- Strength in the APAC and EMEA region. Macroeconomic
uncertainty led manufacturers to delay purchase decisions. However,
Markforged still executed on its growth strategy in both the EMEA
and APAC regions in the fourth quarter of 2022, with revenues
growing 36% in EMEA and 20% in APAC year-over-year.
- Robust FX20 demand. In 2022 Markforged began
commercializing the FX20, its largest solution for manufacturers
requiring parts of industrial strength and high temperature
resistance. Demand for the FX20 continues to exceed the Company’s
expectations. In its first year of general availability, Markforged
received multi-system orders for the FX20 from multiple
customers.
- Two successful acquisition integrations. Markforged
successfully executed on its M&A strategy in 2022, acquiring
Teton Simulation and Digital Metal, whose products are expected to
expand the Company’s addressable market opportunity in 2023 and
beyond. In November 2022, Markforged integrated Teton’s technology
into The Digital Forge, through a feature known as Simulation, and
rolled out a free beta trial to all of its customers. The response
from customers has been positive with thousands of trial
registrations to-date. The Company expects to offer Simulation as a
component of a tiered software-as-a-service subscription offering
that it plans to launch this year. The newest system from Digital
Metal, the PX100, doubles the speed and build size from its
previous model, driving higher volume and lower cost per part in
the production of end use metal parts.
- Cost Savings and building operational efficiency.
Markforged met its operating cost targets in the fourth quarter of
2022 and, since the second quarter of 2022, removed nearly $20
million out of its cost structure, after giving effect to the Teton
Simulation and Digital Metal acquisitions. Key infrastructure
investments the Company has made over the past 18 months have begun
to yield financial and operational leverage. The Company expects
this effect to become even more apparent in 2023 as the Company
expects a decline in cash burn, on the path toward
profitability.
Guidance
Markforged anticipates full year 2023 revenues to be within the
range of $101.0 million - $110.0 million. This guidance assumes a
continuation of the existing global economic uncertainties and
challenges but does not assume a deep recession in 2023. Markforged
expects to continue to generate strong gross margins, with full
year non-GAAP gross margins expected to be in the range of 47% -
49%. Markforged expects operating expenses to decline as a
percentage of revenues, including the impact of the two
acquisitions we completed in 2022, resulting in a non-GAAP
operating loss in the range of $55.0 million - $58.0 million for
the year. This translates into non-GAAP EPS results for the full
year to be a loss in the range of $0.27 - $0.29 per share.
Conference Call and Webcast Information
The Company will host a webcast and conference call at 5:00 p.m.
ET today, Monday, March 6, 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 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 Monday, March 20,
2023 by dialing 1-844-512-2921 (U.S. domestic) or 1-412-317-6671
(International), passcode 13734977.
Amounts herein pertaining to December 31, 2022 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 year ended December 31, 2022 will
be provided upon filing our Annual Report on Form 10-K with the
SEC.
About Markforged
Markforged (NYSE:MKFG) is making manufacturing more resilient
and flexible by bringing on-demand industrial production to the
point of need. The Markforged Digital Forge – the reliable,
intelligent and easy-to-use additive manufacturing platform –
empowers any manufacturer to create strong and accurate end-use
parts repeatably in both metal and composites anywhere and anytime.
Over 10,000 customers across 70+ countries use The Digital Forge to
overcome limitations of traditional manufacturing while
strengthening their supply chains. Markforged is headquartered in
Watertown, Mass., where it designs the hardware, software and
materials that powers its platform. 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 gross margin, non-GAAP operating 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.
Investors should note that beginning with the second quarter of
2022, we have modified the presentation of “non-recurring costs”
included in non-GAAP gross margin, non-GAAP operating profit
(loss), non-GAAP net profit (loss) and non-GAAP earnings per share
metrics to include certain non-recurring litigation costs.
Beginning in the fourth quarter of 2022, we have modified the
presentation to remove the impact of the amortization of our
intangible assets. We use these metrics to provide an understanding
of the results of our core business performance and believe these
litigation and amortization costs are not indicative of the
performance of our core business’ operations. This change increases
“non-recurring costs'' by $0.6 million, $1.0 million, $0.8 million,
and $1.4 million in the first through fourth quarters of 2022,
respectively, and by $3.7 million, $0.9 million, $0.3 million, and
$0.4 million in the first through fourth quarters of 2021,
respectively. The exclusion of amortization increases non-GAAP net
profit (loss) by $0.1 million for the quarter and year ended
December 31, 2022, and does not change the presentation of the year
ended December 31, 2021. To conform to the current period’s
presentation, we have included non-recurring litigation costs as
“non-recurring costs” when presenting the foregoing non-GAAP
figures for the year to date period and periods presented for
2021.
The following are the non-GAAP financial measures referenced in
this press release and presented in the tables below:
- Non-GAAP gross margin is defined as GAAP operating profit
(loss), less stock-based compensation expense, amortization, and
certain non-recurring costs, divided by revenue.
- Non-GAAP operating profit (loss) is defined as GAAP operating
profit (loss) less stock-based compensation expense, amortization,
and certain non-recurring costs.
- Non-GAAP net profit (loss) is defined as GAAP net profit (loss)
less stock-based compensation expense, net change in fair value of
warrant liabilities and contingent earnout liabilities,
amortization, and certain non-recurring costs.
- Non-GAAP earnings per share is defined as GAAP net profit
(loss) less stock-based compensation expense, net change in fair
value of warrant liabilities and contingent earnout liabilities,
amortization, and certain non-recurring costs, divided by diluted
weighted average shares outstanding for the period.
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 impact of
infrastructure investments; timing for achieving profitability; our
ability to fulfill orders for our products in a timely fashion in
the future; expected growth, the size of and opportunity to
increase our addressable market; the anticipated benefits of the
acquisition of each of Teton Simulation and Digital Metal, the
timing of launches and the rate and extent of adoption of our
products, including, but not limited to, our most recently
introduced products; market trends in the manufacturing industry;
the effects of macroeconomic factors; 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 CONSOLIDATED BALANCE
SHEETS As of December 31, 2022 and 2021 (In
thousands, except share data and par value amounts) (Unaudited)
December 31,2022
December 31,2021 Assets Current assets
Cash and cash equivalents
$
124,242
$
288,603
Short-term investments
43,636
—
Accounts receivable, net
29,294
26,777
Inventory
26,409
10,377
Prepaid expenses
2,847
3,921
Other current assets
3,334
511
Total current assets
229,762
330,189
Property and equipment, net
18,298
6,349
Goodwill
31,116
—
Intangible assets
17,626
—
Right-of-use assets
45,955
—
Other assets
3,130
776
Total assets
$
345,887
$
337,314
Liabilities and Stockholders’ Equity
Current liabilities Accounts payable
$
14,425
$
11,403
Accrued expenses
9,663
7,411
Deferred revenue
8,854
6,288
Operating lease liabilities
8,022
—
Other current liabilities
—
310
Total current liabilities
40,964
25,412
Long-term deferred revenue
5,358
3,742
Deferred rent
—
1,623
Contingent earnout liability
2,415
59,722
Long-term operating lease liabilities
40,608
—
Other liabilities
4,042
2,646
Total liabilities
93,387
93,145
Commitments and contingencies Stockholders’ equity Common
stock, $0.0001 par value; 1,000,000,000 shares authorized at
December 31, 2022 and December 31, 2021; 194,560,946 and
185,993,058 shares issued and outstanding at December 31, 2022 and
December 31, 2021, respectively
19
19
Additional paid-in capital
352,564
319,859
Accumulated deficit
(101,097
)
(75,709
)
Accumulated other comprehensive loss
1,014
—
Total stockholders’ equity
252,500
244,169
Total liabilities and stockholders’ equity
$
345,887
$
337,314
MARKFORGED HOLDING CORPORATION CONSOLIDATED
STATEMENTS OF OPERATIONS For the
Years Ended December 31, 2022 and 2021 (In
thousands, except share data and per share data) (Unaudited)
Year Ended
December 31,
2022
2021
Revenue
$
100,958
$
91,221
Cost of revenue
50,252
38,368
Gross profit
50,706
52,853
Operating expenses Sales and marketing
44,975
35,966
Research and development
42,387
32,155
General and administrative
50,428
45,772
Total operating expenses
137,790
113,893
Loss from operations
(87,084
)
(61,040
)
Change in fair value of warrant liabilities
1,485
1,808
Change in fair value of contingent earnout liability
57,307
63,407
Other expense
(381
)
(265
)
Interest expense
(11
)
(16
)
Interest income
2,878
17
Profit (loss) before income taxes
(25,806
)
3,911
Income tax benefit
(418
)
56
Net profit (loss)
$
(25,388
)
$
3,855
Weighted average shares outstanding - basic
189,747,367
108,088,115
Weighted average shares outstanding - diluted
189,747,367
113,963,424
Net profit (loss) per share - basic
$
(0.13
)
$
0.04
Net profit (loss) per share - diluted
(0.13
)
0.03
MARKFORGED HOLDING CORPORATION CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
For the Years Ended December 31, 2022 and 2021
(In thousands)
Year Ended December 31,
2022
2021
Net profit (loss)
$
(25,388
)
$
3,855
Other comprehensive income, net of taxes: Foreign currency
translation adjustment
1,014
—
Total comprehensive income (loss), net of taxes of $0
$
(24,374
)
$
3,855
MARKFORGED HOLDING CORPORATION RECONCILIATION OF US GAAP
TO NON-GAAP MEASURES For the Years Ended
December 31, 2022 and 2021 (In thousands)
(Unaudited)
Three Months
EndedDecember 31, Year
EndedDecember 31,
2022
2021
2022
2021
Net profit (loss) and comprehensive income (loss)
$
(10,732
)
$
3,261
$
(25,388
)
$
3,855
Stock compensation expense
2,589
7,535
18,209
18,930
Change in fair value of warrant liabilities
(264
)
(1,638
)
(1,485
)
(1,808
)
Change in fair value of contingent earnout liability
(6,325
)
(20,697
)
(57,307
)
(63,407
)
Amortization
104
—
146
—
Non-recurring costs1
1,299
377
5,719
7,339
Non-GAAP net loss 2
$
(13,329
)
$
(11,162
)
$
(60,106
)
$
(35,091
)
Three Months Ended
December 31, Year Ended December 31,
2022
2021
2022
2021
Cost of revenue
$
158
$
297
$
545
$
515
Sales and marketing
(348
)
1,219
2,203
2,395
Research and development
267
1,846
4,584
4,614
General and administrative
3,915
4,550
16,743
18,745
Total operating expense
3,834
7,615
23,530
25,754
Total adjustments
$
3,992
$
7,912
$
24,075
$
26,269
MARKFORGED HOLDING CORPORATION DISAGGREGATED REVENUE BY
NATURE OF PRODUCTS AND SERVICES (In thousands)
(Unaudited) Year Ended December 31, (in
thousands)
2022
2021
Hardware
$
69,112
$
64,974
Consumables
23,423
19,567
Services
8,423
6,680
Total Revenue
$
100,958
$
91,221
MARKFORGED HOLDING CORPORATION
DISAGGREGATED REVENUE BY GEOGRAPHIC LOCATION (In
thousands) (Unaudited) Year Ended December 31,
(in thousands)
2022
2021
Americas
$
46,638
$
48,516
EMEA
$
30,185
$
25,592
APAC
$
24,135
$
17,113
Total Revenue
$
100,958
$
91,221
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230306005784/en/
Media Sam Manning, Public Relations Manager
sam.manning@markforged.com
Investors Austin Bohlig, Director of Investor Relations
investors@markforged.com
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