Markforged Holding Corporation (NYSE: MKFG), creator of the integrated metal and carbon fiber additive manufacturing platform, The Digital Forge, announced its results from the second quarter ended June 30, 2022.
Financial Highlights
- Revenue increased by 19%, to $24.2 million, in the second quarter of 2022 from $20.4 million in the second quarter of 2021.
- Gross margin was 53% in the second quarter of 2022 compared to 58% in the second quarter of 2021.
- Non-GAAP gross margin was 54% in the second quarter of 2022 compared to 59% in the second quarter of 2021.
- Net profit (loss) was a profit of $4.1 million in the second quarter of 2022, compared to a net loss of $11.1 million in the second quarter of 2021.
- Non-GAAP net profit (loss) was a loss of $16.8 million in the second quarter of 2022, compared to a net loss of $8.1 million in the second quarter of 2021.
- GAAP earnings per share was a profit of $0.02 for the second quarter of 2022, compared to a loss of $0.28 in the second quarter of 2021.
- Non-GAAP earnings per share was a loss of $0.09 for the second quarter of 2022, compared to a loss of $0.20 in the second quarter of 2021.
- Cash and cash equivalents were $243.2 million as of June 30, 2022.
“Demand for The Digital Forge continues to grow. Our customers realize the value of our additive solutions as they solve for a growing number of applications with high-quality parts right at the point of need, especially in the current global environment racked with supply chain challenges,” said Shai Terem, President and CEO of Markforged. “We continue to make great strides in executing on our strategy thanks to great efforts from our talented team. We feel very confident in our long-term opportunity to extend our leadership position in distributed manufacturing as our product portfolio grows and evolves. The pending acquisition of Digital Metal, coupled with our organic product innovation engine, will continue to expand our addressable market and help our customers solve even more industrial manufacturing challenges.”
Business Highlights
The pipeline for The Digital Forge remained strong across products and continued to grow for Markforged’s newest printer, the FX20. Global orders for the FX20 in particular exceed Markforged’s expectations.
Markforged expanded its addressable market by entering into a definitive agreement with Höganäs AB to acquire Digital Metal, the creator of a leading binder jetting solution known to be precise and reliable for mass production of metal parts. Expected to close in the third quarter, this acquisition will extend Markforged’s capabilities into high-throughput production of metal additive parts and open the door for new applications in industries such as automotive, medical, luxury goods and countless others.
The Company is committed to its long-term strategy, and has made calculated investments in both organic and inorganic growth over the last quarter. The Company’s product innovation pipeline continues to mature with multiple programs in development. The Markforged team also grew during the last quarter to approximately 450 employees.
2022 Guidance
“Our customers realize the value of The Digital Forge and while our pipeline continues to grow, we have started to see the impact of the uncertainty created by global macroeconomic conditions,” said Mark Schwartz, Chief Financial Officer of Markforged. “Our sales cycles are growing longer due to customers’ hesitation to commit to capital expenses in this current environment. We are therefore adjusting our guidance accordingly. Our confidence in our medium- to long-term outlook has not changed.”
Markforged has updated its full-year 2022 guidance. Revenue is expected to be within the range of $100-115 million, and non-GAAP gross margins are expected to be within the range of 52%-54%. Non-GAAP operating loss for the full year is expected to be within the range of $54-$59 million, resulting in an expected EPS loss in the range of $0.29-$0.32 per share, based on an outstanding share count of approximately 192 million shares.
Conference Call and Webcast Information
The Company hosted a webcast and conference call at 5:00 PM ET Thursday, August 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/. A replay will be available on the Company’s website and telephonically through Thursday, August 25, 2022 by dialing 1-844-512-2921 (U.S. domestic) or 1-412-317-6671 (International), passcode 10019757.
For more information, please visit markforged.com.
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