Markforged Announces Fourth Quarter and Full-Year 2023 Results
Fourth Quarter 2023 Financial Results Compared To Fourth Quarter 2022
-
Revenue was
$24.2 million , up 20.4% sequentially from the third quarter of 2023, and down from$29.7 million in the fourth quarter of 2022. - Gross margin was 48.4% compared to 46.9%.
- Non-GAAP gross margin was 49.5% compared to 47.5%.
-
Operating expenses were
$31.1 million , inclusive of an increase in the fair value estimate of an acquisition earnout of$0.9 million , compared to$33.2 million . -
Non-GAAP operating expenses were
$24.9 million compared to$29.4 million . -
Net loss was
$14.2 million compared to net loss of$10.7 million . -
Non-GAAP net loss was
$11.6 million compared to a loss of$13.3 million . -
Cash, cash equivalents, and short-term investments were
$116.9 million as ofDecember 31, 2023 compared to$167.9 million as ofDecember 31, 2022 .
Full Year 2023 Financial Results Compared To Full Year 2022
-
Revenue was
$93.8 million compared to$101.0 million . - Gross margin was 47.4% compared to 50.2%.
- Non-GAAP gross margin was 48.6% compared to 50.8%.
-
Net cash used in operating activities was
$48.9 million compared to$73.5 million .
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 ended the year with positive momentum as we continued to execute our strategy to lead the adoption of additive manufacturing on the factory floor,” said
Business Updates
-
Strong Execution in a Challenging Macro Environment. While slow capital expenditures in 2023 delayed system sales,
Markforged delivered 20% sequential revenue growth in the fourth quarter. Supported by effective cost controls,Markforged exceeded its 2023 gross margin and operating cost targets. Net cash used in operating activities in 2023 decreased by$24.6 million , approximately 33% from 2022, driven by improving operational and working capital efficiencies. -
Automation Alley Expansion Win. During the fourth quarter,
Markforged expanded its relationship withAutomation Alley through the sale of an additional 125 OnyxPro printers for its Project DIAMOnD initiative. This is an expansion beyond the 300 printersAutomation Alley acquired in 2021. This win is part of a strategic partnership betweenAutomation Alley and Digital Source, Markforged’s on-demand platform for 3D printing OEM certified parts. -
Robust Utilization Across the Global Fleet. The health of Markforged’s global printer network remains robust as customers solve ever more factory floor challenges using their Digital Forge solutions.
Markforged realized strong growth in subscription sales, which helped drive services revenues up 25% year-over-year in 2023.Markforged expects these strong utilization rates and the resulting recurring revenue streams they produce to grow in 2024. -
Entering 2024 With the Strongest Product Portfolio in the Company’s History.
Markforged launched three important new products in 2023, the FX10, Vega, and Digital Source. Building on the precision and reliability of the X7, the FX10 is nearly twice as large and twice as fast as its predecessor and is built to supercharge manufacturing productivity and profitability.Markforged has seen strong initial demand for the FX10 and remains on plan to begin shipping in the first half of 2024. With these new products, alongside the FX20, PX100, and the rest of the Company’s industrial printer lineup,Markforged enters 2024 with the strongest product portfolio in the Company’s history.
Markforged Announces Assaf Zipori as Chief Financial Officer
“I am very pleased to announce the appointment of Assaf as our CFO,” said
Zipori has deep experience since joining
“Since joining Markforged I’ve been inspired by our fantastic team, the power of our technology and our mission to bring industrial production to the point of need. I am grateful for this opportunity and am confident in our team’s ability to drive success,” said Zipori.
2024 Financial Outlook
Conference Call and Webcast Information
The Company will host a webcast and conference call at
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 until
Amounts herein pertaining to
About
Non-GAAP Financial Measures
In addition to our financial results determined in accordance with
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 with the fourth quarter of 2022, we 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
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 gross 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
|
||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
As of |
||||||||
(In thousands, except share data and par value amounts) (Unaudited) | ||||||||
2023 |
2022 |
|||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents |
$ |
116,854 |
|
$ |
124,242 |
|
||
Short-term investments |
|
— |
|
|
43,690 |
|
||
Accounts receivable, net of allowance for expected credit losses ( |
|
24,059 |
|
|
29,294 |
|
||
Inventory |
|
26,773 |
|
|
26,409 |
|
||
Prepaid expenses |
|
2,756 |
|
|
2,847 |
|
||
Other current assets |
|
2,022 |
|
|
3,334 |
|
||
Total current assets |
|
172,464 |
|
|
229,816 |
|
||
Property and equipment, net |
|
17,713 |
|
|
18,298 |
|
||
|
|
— |
|
|
31,116 |
|
||
Intangible assets, net |
|
17,128 |
|
|
17,626 |
|
||
Right-of-use assets |
|
36,884 |
|
|
45,955 |
|
||
Other assets |
|
3,763 |
|
|
3,130 |
|
||
Total assets |
$ |
247,952 |
|
$ |
345,941 |
|
||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities | ||||||||
Accounts payable |
$ |
13,235 |
|
$ |
14,425 |
|
||
Accrued expenses |
|
9,840 |
|
|
9,663 |
|
||
Deferred revenue |
|
8,779 |
|
|
8,854 |
|
||
Lease liabilities |
|
7,368 |
|
|
8,022 |
|
||
Other current liabilities |
|
1,526 |
|
|
— |
|
||
Total current liabilities |
|
40,748 |
|
|
40,964 |
|
||
Long-term deferred revenue |
|
6,083 |
|
|
5,358 |
|
||
Contingent earnout liability |
|
1,379 |
|
|
2,415 |
|
||
Long-term lease liabilities |
|
35,771 |
|
|
40,608 |
|
||
Other liabilities |
|
2,361 |
|
|
4,042 |
|
||
Total liabilities |
|
86,342 |
|
|
93,387 |
|
||
Commitments and contingencies | ||||||||
Stockholders’ equity | ||||||||
Common stock, |
|
19 |
|
|
19 |
|
||
Additional paid-in capital |
|
366,281 |
|
|
352,564 |
|
||
Accumulated deficit |
|
(204,664 |
) |
|
(101,097 |
) |
||
Accumulated other comprehensive income |
|
(26 |
) |
|
1,068 |
|
||
Total stockholders’ equity |
|
161,610 |
|
|
252,554 |
|
||
Total liabilities and stockholders’ equity |
$ |
247,952 |
|
$ |
345,941 |
|
MARKFORGED HOLDING CORPORATION | ||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
For the Years Ended |
||||||||
(In thousands, except share data and per share data) | ||||||||
Year Ended |
||||||||
|
2023 |
|
|
2022 |
|
|||
Revenue |
$ |
93,784 |
|
$ |
100,958 |
|
||
Cost of revenue |
|
49,370 |
|
|
50,252 |
|
||
Gross profit |
|
44,414 |
|
|
50,706 |
|
||
Operating expenses | ||||||||
Sales and marketing |
|
37,830 |
|
|
44,975 |
|
||
Research and development |
|
40,737 |
|
|
42,387 |
|
||
General and administrative |
|
47,761 |
|
|
50,428 |
|
||
|
|
29,467 |
|
|
— |
|
||
Total operating expenses |
|
155,795 |
|
|
137,790 |
|
||
Loss from operations |
|
(111,381 |
) |
|
(87,084 |
) |
||
Change in fair value of derivative liabilities |
|
472 |
|
|
1,485 |
|
||
Change in fair value of contingent earnout liability |
|
1,036 |
|
|
57,307 |
|
||
Other expense, net |
|
(307 |
) |
|
(381 |
) |
||
Interest expense |
|
(373 |
) |
|
(11 |
) |
||
Interest income |
|
6,400 |
|
|
2,878 |
|
||
Loss before income taxes |
|
(104,153 |
) |
|
(25,806 |
) |
||
Income tax (benefit) expense |
|
(586 |
) |
|
(418 |
) |
||
Net loss |
$ |
(103,567 |
) |
$ |
(25,388 |
) |
||
Weighted average shares outstanding - basic and diluted |
|
196,896,011 |
|
|
189,747,367 |
|
||
Net loss per share - basic and diluted |
$ |
(0.53 |
) |
$ |
(0.13 |
) |
MARKFORGED HOLDING CORPORATION | ||||||||
CONSOLIDATED STATEMENTS OF | ||||||||
COMPREHENSIVE LOSS | ||||||||
For the Years Ended |
||||||||
(In thousands) | ||||||||
Year Ended |
||||||||
|
2023 |
|
|
2022 |
|
|||
Net loss |
$ |
(103,567 |
) |
$ |
(25,388 |
) |
||
Other comprehensive loss, net of taxes: | ||||||||
Unrealized loss on available-for-sale marketable securities, net |
|
(54 |
) |
|
54 |
|
||
Foreign currency translation adjustment |
|
(1,040 |
) |
|
1,014 |
|
||
Total comprehensive loss |
$ |
(104,661 |
) |
$ |
(24,320 |
) |
|
||||||||||||
DISAGGREGATED REVENUE BY NATURE OF PRODUCTS AND SERVICES | ||||||||||||
(In thousands) (Unaudited) | ||||||||||||
Three Months Ended |
Year Ended |
|||||||||||
(in thousands) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Hardware |
$ |
15,432 |
$ |
21,015 |
$ |
59,287 |
$ |
69,112 |
||||
Consumables |
|
5,897 |
|
6,510 |
|
23,996 |
|
23,423 |
||||
Services |
|
2,841 |
|
2,139 |
|
10,501 |
|
8,423 |
||||
Total Revenue |
$ |
24,170 |
$ |
29,664 |
$ |
93,784 |
$ |
100,958 |
||||
|
||||||||||||
DISAGGREGATED REVENUE BY GEOGRAPHIC LOCATION | ||||||||||||
(In thousands) (Unaudited) | ||||||||||||
Three Months Ended |
Year Ended |
|||||||||||
(in thousands) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
$ |
11,228 |
$ |
12,488 |
$ |
43,715 |
$ |
46,638 |
||||
EMEA |
|
7,921 |
|
10,567 |
|
29,744 |
|
30,185 |
||||
APAC |
|
5,021 |
|
6,609 |
|
20,325 |
|
24,135 |
||||
Total Revenue |
$ |
24,170 |
$ |
29,664 |
$ |
93,784 |
$ |
100,958 |
|
||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP MEASURES | ||||||||||||||||
(In thousands) (Unaudited) | ||||||||||||||||
|
Three Months Ended |
|
Year Ended |
|||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Net loss | |
$ |
(14,198 |
) |
$ |
(10,732 |
) |
|
$ |
(103,567 |
) |
$ |
(25,388 |
) |
||
Stock compensation expense | |
|
3,829 |
|
|
2,589 |
|
|
|
13,987 |
|
|
18,209 |
|
||
Change in fair value of derivative liabilities |
|
646 |
|
|
(264 |
) |
|
426 |
|
|
(1,485 |
) |
||||
Change in fair value of contingent earnout liability |
|
(3,545 |
) |
|
(6,325 |
) |
|
(1,036 |
) |
|
(57,307 |
) |
||||
Amortization |
|
244 |
|
|
104 |
|
|
1,024 |
|
|
146 |
|
||||
|
|
— |
|
|
— |
|
|
29,467 |
|
|
— |
|
||||
Non-recurring costs1 |
|
1,412 |
|
|
1,299 |
|
|
8,451 |
|
|
5,719 |
|
||||
Non-GAAP net loss | |
$ |
(11,612 |
) |
$ |
(13,329 |
) |
|
$ |
(51,248 |
) |
$ |
(60,106 |
) |
||
1Non-recurring costs incurred during the year ended |
||||||||||||||||
|
Three Months Ended |
|
Year Ended |
|||||||||||||
Non-GAAP Cost of Revenue | |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Cost of revenue | |
$ |
12,479 |
|
$ |
15,738 |
|
|
$ |
49,370 |
|
$ |
50,252 |
|
||
Stock compensation expense | |
|
57 |
|
|
7 |
|
|
|
259 |
|
|
354 |
|
||
Amortization |
|
217 |
|
|
66 |
|
|
877 |
|
|
97 |
|
||||
Non-recurring costs1 |
|
— |
|
|
85 |
|
|
— |
|
|
94 |
|
||||
Non-GAAP Cost of Revenue |
|
12,205 |
|
|
15,580 |
|
|
48,234 |
|
|
49,707 |
|
||||
|
Three Months Ended |
|
Year Ended |
|||||||||||||
Non-GAAP Gross Profit | |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Gross profit | |
$ |
11,691 |
|
$ |
13,926 |
|
|
$ |
44,414 |
|
$ |
50,706 |
|
||
Stock compensation expense | |
|
57 |
|
|
7 |
|
|
|
259 |
|
|
354 |
|
||
Amortization |
|
217 |
|
|
66 |
|
|
877 |
|
|
97 |
|
||||
Non-recurring costs1 |
|
— |
|
|
85 |
|
|
— |
|
|
94 |
|
||||
Non-GAAP gross profit |
|
11,965 |
|
|
14,084 |
|
|
45,550 |
|
|
51,251 |
|
||||
|
Three Months Ended |
|
Year Ended |
|||||||||||||
Non-GAAP Sales and Marketing Expenses | |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Sales and marketing expenses | |
$ |
9,394 |
|
$ |
9,871 |
|
|
$ |
37,830 |
|
$ |
44,975 |
|
||
Stock compensation expense | |
|
429 |
|
|
(382 |
) |
|
|
1,851 |
|
|
2,158 |
|
||
Amortization |
|
27 |
|
|
38 |
|
|
147 |
|
|
49 |
|
||||
Change in fair value of derivative liabilities |
|
898 |
|
|
— |
|
|
898 |
|
|
— |
|
||||
Non-GAAP sales and marketing expenses |
|
8,040 |
|
|
10,215 |
|
|
34,934 |
|
|
42,768 |
|
||||
|
Three Months Ended |
|
Year Ended |
|||||||||||||
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Research and development expenses | |
$ |
10,347 |
|
$ |
11,012 |
|
|
$ |
40,737 |
|
$ |
42,387 |
|
||
Stock compensation expense | |
|
1,125 |
|
|
267 |
|
|
|
4,649 |
|
|
4,584 |
|
||
Non-GAAP research and development expenses |
|
9,222 |
|
|
10,745 |
|
|
36,088 |
|
|
37,803 |
|
||||
|
Three Months Ended |
|
Year Ended |
|||||||||||||
Non-GAAP General and Administrative Expenses | |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
General and administrative expenses | |
$ |
11,311 |
|
$ |
12,334 |
|
|
$ |
47,761 |
|
$ |
50,428 |
|
||
Stock compensation expense | |
|
2,218 |
|
|
2,697 |
|
|
|
7,228 |
|
|
11,113 |
|
||
Non-recurring costs1 |
|
1,412 |
|
|
1,214 |
|
|
8,451 |
|
|
5,625 |
|
||||
Non-GAAP general and administrative expenses |
|
7,681 |
|
|
8,423 |
|
|
32,082 |
|
|
33,690 |
|
||||
1Non-recurring costs incurred during the year ended |
||||||||||||||||
|
Three Months Ended |
|
Year Ended |
|||||||||||||
Non-GAAP Operating Loss | |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Operating loss | |
$ |
(19,361 |
) |
$ |
(19,291 |
) |
|
$ |
(111,381 |
) |
$ |
(87,084 |
) |
||
Stock compensation expense | |
|
3,829 |
|
|
2,589 |
|
|
|
13,987 |
|
|
18,209 |
|
||
Amortization |
|
244 |
|
|
104 |
|
|
1,024 |
|
|
146 |
|
||||
|
|
— |
|
|
— |
|
|
29,467 |
|
|
— |
|
||||
Change in fair value of derivative liabilities |
|
898 |
|
|
— |
|
|
898 |
|
|
— |
|
||||
Non-recurring costs1 |
|
1,412 |
|
|
1,299 |
|
|
8,451 |
|
|
5,719 |
|
||||
Non-GAAP operating loss |
|
(12,978 |
) |
|
(15,299 |
) |
|
(57,554 |
) |
|
(63,010 |
) |
||||
1Non-recurring costs incurred during the year ended |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240307965010/en/
Media
sam.manning@markforged.com
Investors
investors@markforged.com
Source: