Exhibit 99.1

Markforged Announces First Quarter 2023 Results

WALTHAM, Mass. – 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 first quarter ended March 31, 2023.

Financial Highlights

Revenue increased by 10%, to $24.1 million, in the first quarter of 2023 from $21.9 million in the first quarter of 2022.
 
Gross profit remained stable generating $11.6 million in the first quarters of 2023 and 2022.
 
Non-GAAP gross profit was $11.9 million in the first quarter of 2023 compared to $11.7 million in the first quarter of 2022.
 
Gross margin was 48% in the first quarter of 2023 compared to 53% in the first quarter of 2022.
 
Non-GAAP gross margin was 49% in the first quarter of 2023 compared to 54% in the first quarter of 2022.
 
Net loss was $19.0 million in the first quarter of 2023, compared to net profit of $4.2 million in the first quarter of 2022.
 
Non-GAAP net loss was a loss of $13.3 million in the first quarter of 2023, compared to a loss of $14.9 million in the first quarter of 2022.
 
Cash, cash equivalents, and short-term investments were $151.4 million as of March 31, 2023.

 

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 have started the year strong with another record first quarter revenues and the largest pipeline in our company’s history. Demand for the Digital Forge grew across all geographies in Q1, as an increasing number of manufacturers are choosing our metal and composite solutions to solve mission-critical metal applications at the point of need,” said Shai Terem, President and CEO of Markforged. “We believe our Q1 results are a reflection of strong execution of our strategy and an early indicator of the meaningful opportunity for Markforged in the coming quarters as we remain laser focused on margin expansion and driving profitable growth.”

Business Highlights

Robust Growth Globally. Demand for the Digital Forge grew across all geographies in Q1, which was led by 26% year-over-year growth in Markforged’s EMEA region. The company was also encouraged by the strong pipeline buildup in the Americas, which is the company’s biggest region by revenue.

 


 

Demand For FX20 Grows. As manufacturers seek production-grade solutions for their factory floors, revenue for the FX20 continues to exceed the company’s expectations and the pipeline of new orders continues to grow. Thanks to the diligent work by Markforged’s engineering and operations teams, the costs to produce the FX20 are declining, which is helping to drive sequential gross margin expansion.
Continuing To Build Operational Efficiencies. Markforged remains laser focused on margin expansion and driving profitable growth. GAAP Gross margins expanded sequentially, exceeding 48% in the first quarter of 2023 and 49% on a non-GAAP basis, compared to 47% by both measures in the fourth quarter of 2022. Net cash used in operating activities for the first quarter improved year-over-year, with a decline of $3.7 million, or approximately 20%, compared to the first quarter of 2022. The company believes the strength of its current balance sheet is sufficient to reach profitability by the end of 2024.
Moved Into New HQ. The end of Q1 marked the opening of Markforged's new Global HQ in Massachusetts, bringing Engineering, Operations and Product together under one roof with Sales, Marketing and other functions. The new HQ, located at 60 Tower Road, Waltham, boasts customized state-of-the-art R&D labs, along with operations and customer experience labs and an enhanced customer product demo room. The excitement and energy derived from this modernized space and closer, in-person, collaboration is expected to drive even more operational efficiencies over time.

Guidance

Markforged is reiterating its full year 2023 guidance given continued macro uncertainties. Revenues are expected to be within the range of $101.0 million - $110.0 million. Markforged expects fiscal year 2023 non-GAAP gross margin to remain in the range of 47% - 49% and the company is confident that gross margins will continue to improve toward historical levels, longer-term. The company continues to expect the cost disciplines it exerts over operating expenses to result in a decline in 2023 operating expenses as a percentage of revenue, compared to 2022. Non-GAAP operating loss is expected to be in the range of $55.0 million - $58.0 million for the year, 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, Thursday, May 11, 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 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 till Thursday May 25, 2023, 11:59 PM ET by dialing 1-844-512-2921 or 1-412-317-6671, passcode 13737741.

 

About Markforged

Markforged (NYSE:MKFG) is enabling more resilient and flexible supply chains by bringing industrial 3D printing right to the factory floor. Our additive manufacturing platform The Digital Forge allows manufacturers to create strong, accurate parts in both metal and advanced composites. With over 10,000 customers in 70+ countries, we’re bringing on-demand industrial production to the point of need. We are headquartered in Waltham, Mass where we design the hardware, software and advanced materials that makes The Digital Forge reliable and easy to use. 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 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 $0.6 million in the first quarter of 2022. The exclusion of amortization does not impact non-GAAP net profit (loss) for the quarter ended March 31, 2022. 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.
 

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, of the size of and opportunity to increase our addressable market; 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

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

As of March 31, 2023 and December 31, 2022

 

(In thousands, except share data and par value amounts) (Unaudited)

 

 

 

 

 

 

 

 

 

 

March 31,
2023

 

 

December 31,
2022

 

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

 

$

90,674

 

 

$

124,242

 

Short-term investments

 

 

60,756

 

 

 

43,690

 

Accounts receivable, net of allowance for expected credit losses ($768 and $971, respectively)

 

 

26,115

 

 

 

29,294

 

Inventory

 

 

29,272

 

 

 

26,409

 

Prepaid expenses

 

 

2,336

 

 

 

2,847

 

Other current assets

 

 

3,362

 

 

 

3,334

 

Total current assets

 

 

212,515

 

 

 

229,816

 

Property and equipment, net

 

 

19,122

 

 

 

18,298

 

Goodwill

 

 

31,190

 

 

 

31,116

 

Intangible assets

 

 

17,426

 

 

 

17,626

 

Right-of-use assets

 

 

44,591

 

 

 

45,955

 

Other assets

 

 

3,043

 

 

 

3,130

 

Total assets

 

$

327,887

 

 

$

345,941

 

Liabilities and Stockholders’ Equity

 

 

 

Current liabilities

 

 

 

Accounts payable

 

$

10,515

 

 

$

14,425

 

Accrued expenses

 

 

11,459

 

 

 

9,663

 

Deferred revenue

 

 

9,174

 

 

 

8,854

 

Operating lease liabilities

 

 

7,979

 

 

 

8,022

 

Total current liabilities

 

 

39,127

 

 

 

40,964

 

Long-term deferred revenue

 

 

5,834

 

 

 

5,358

 

Deferred rent

 

 

 

 

 

 

Contingent earnout liability

 

 

1,607

 

 

 

2,415

 

Long-term operating lease liabilities

 

 

39,391

 

 

 

40,608

 

Other liabilities

 

 

3,867

 

 

 

4,042

 

Total liabilities

 

 

89,826

 

 

 

93,387

 

Commitments and contingencies

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

Common stock, $0.0001 par value; 1,000,000,000 shares authorized at March 31, 2023 and December 31, 2022; 195,643,620 and 194,560,946 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively

 

 

19

 

 

 

19

 

Additional paid-in capital

 

 

356,982

 

 

 

352,564

 

Accumulated deficit

 

 

(120,116

)

 

 

(101,097

)

Accumulated other comprehensive income

 

 

1,176

 

 

 

1,068

 

Total stockholders’ equity

 

 

238,061

 

 

 

252,554

 

Total liabilities and stockholders’ equity

 

$

327,887

 

 

$

345,941

 

 

 


 

 

MARKFORGED HOLDING CORPORATION

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

For the Three Months Ended March 31, 2023 and 2022

 

(In thousands, except share data and per share data) (Unaudited)

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

2023

 

 

2022

 

Revenue

$

24,090

 

 

$

21,859

 

Cost of revenue

 

12,508

 

 

 

10,253

 

Gross profit

 

11,582

 

 

 

11,606

 

Operating expenses

 

 

 

 

 

Sales and marketing

 

10,576

 

 

 

10,448

 

Research and development

 

10,380

 

 

 

10,567

 

General and administrative

 

12,128

 

 

 

11,743

 

Total operating expenses

 

33,084

 

 

 

32,758

 

Loss from operations

 

(21,502

)

 

 

(21,152

)

Change in fair value of warrant liabilities

 

189

 

 

 

693

 

Change in fair value of contingent earnout liability

 

808

 

 

 

24,896

 

Other expense

 

(204

)

 

 

(219

)

Interest income

 

1,691

 

 

 

20

 

Profit (loss) before income taxes

 

(19,018

)

 

 

4,238

 

Income tax benefit

 

1

 

 

 

(1

)

Net (loss) profit

$

(19,019

)

 

$

4,239

 

Weighted average shares outstanding - basic

 

195,369,245

 

 

 

186,383,312

 

Weighted average shares outstanding - diluted

 

195,369,245

 

 

 

191,100,683

 

Net profit (loss) per share - basic

$

(0.10

)

 

$

0.02

 

Net profit (loss) per share - diluted

 

(0.10

)

 

 

0.02

 

 

 


 

MARKFORGED HOLDING CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

For the Three Months Ended March 31, 2023 and 2022

(In thousands) (Unaudited)

 

 

Three Months Ended March 31,

 

 

2023

 

 

2022

 

Net (loss) profit

$

(19,019

)

 

$

4,239

 

Other comprehensive income, net of taxes:

 

 

 

 

 

Unrealized (loss) on available-for-sale marketable securities, net

 

(50

)

 

 

 

Foreign currency translation adjustment

 

158

 

 

 

 

Total comprehensive (loss) income

$

(18,911

)

 

$

4,239

 

 

 


 

 

MARKFORGED HOLDING CORPORATION

 

RECONCILIATION OF GAAP TO NON-GAAP MEASURES

 

For the Three Months Ended March 31, 2023 and 2022

 

(In thousands) (Unaudited)

 

 

 

 

 

 

 

 

 

Three Months Ended
March 31,

 

 

2023

 

 

2022

 

Net profit (loss) and comprehensive income (loss)

$

(19,019

)

 

$

4,239

 

Stock compensation expense

 

4,356

 

 

 

5,422

 

Change in fair value of warrant liabilities

 

 

(189

)

 

 

(693

)

Change in fair value of contingent earnout liability

 

 

(808

)

 

 

(24,896

)

Amortization

 

 

277

 

 

 

 

Non-recurring costs1

 

 

2,081

 

 

 

1,047

 

Non-GAAP net loss 2

$

(13,302

)

 

$

(14,881

)

 

 

 

 

 

 

 

1Non-recurring costs primarily relate to litigation expenses.

2Stock-based compensation expense, amortization, and non-recurring costs were included in the following GAAP consolidated statement of operations categories:

 

 

Three Months Ended March 31,

 

 

 

2023

 

 

2022

 

Cost of revenue

 

$

301

 

 

$

115

 

 

 

 

 

 

 

 

Sales and marketing

 

 

520

 

 

 

848

 

Research and development

 

 

1,147

 

 

 

1,419

 

General and administrative

 

 

4,746

 

 

 

4,087

 

Total operating expense

 

 

6,413

 

 

 

6,354

 

Total adjustments

 

$

6,714

 

 

$

6,469

 

 

 


 

 

MARKFORGED HOLDING CORPORATION

 

DISAGGREGATED REVENUE BY NATURE OF PRODUCTS AND SERVICES

 

(In thousands) (Unaudited)

 

 

 

Three Months Ended March 31,

 

(in thousands)

 

2023

 

 

2022

 

Hardware

 

$

15,195

 

 

$

14,517

 

Consumables

 

 

6,455

 

 

 

5,456

 

Services

 

 

2,440

 

 

 

1,886

 

Total Revenue

 

$

24,090

 

 

$

21,859

 

 

 

 

 

 

 

 

 

MARKFORGED HOLDING CORPORATION

 

DISAGGREGATED REVENUE BY GEOGRAPHIC LOCATION

 

(In thousands) (Unaudited)

 

 

 

Three Months Ended March 31,

 

(in thousands)

 

2023

 

 

2022

 

Americas

 

$

10,458

 

 

$

10,097

 

EMEA

 

$

8,492

 

 

$

6,719

 

APAC

 

$

5,140

 

 

$

5,043

 

Total Revenue

 

$

24,090

 

 

$

21,859

 

 

 


 

Markforged Contacts:

Media

Sam Manning, Public Relations Manager

sam.manning@markforged.com

Investors

Austin Bohlig, Director of Investor Relations

investors@markforged.com