Markforged Announces Fourth Quarter and Full-Year 2021 Results
Markforged Holding Corporation (NYSE: MKFG) reported significant growth in its fourth quarter and full fiscal year 2021, exceeding targets. Revenue rose 27% to $91.2 million, while gross profit increased by 26% to $52.9 million. However, the company faced a net loss from operations of $61.0 million, widening from $17.7 million the previous year. The fourth quarter saw a 9% revenue increase to $26.6 million, but gross profit fell 4% to $15.0 million. Looking ahead, the company expects 2022 revenue between $114.0 - $123.0 million, with a continued focus on Gross Margin and operational efficiency.
- 2021 revenue grew 27% to $91.2 million from $71.9 million in 2020.
- Gross profit increased 26% to $52.9 million in 2021, maintaining a gross margin of 58%.
- Launched 12 major new solutions for the Digital Forge, enhancing market reach.
- Anticipated revenue growth of 30% for 2022 at the midpoint.
- Cash and cash equivalents stood at $288.6 million as of December 31, 2021.
- Net loss from operations increased to $61.0 million in 2021 from $17.7 million in 2020.
- Adjusted EBITDA loss widened to $38.7 million in 2021 from $13.4 million in 2020.
- Fourth quarter gross profit decreased by 4% to $15.0 million.
Company Exceeds 2021 Growth Targets
“This has been a tremendous growth year for
Financial Highlights for Full-Year 2021
-
Revenue increased
27% , to$91.2 million $71.9 million -
Gross profit grew
26% , to$52.9 million $41.9 million -
Gross margin was
58% in 2021, consistent with our 2020 gross margin. -
Net loss from operations was
$61.0 million $17.7 million -
Adjusted EBITDA was a loss of
$38.7 million $13.4 million -
Cash and cash equivalents were
$288.6 million December 31, 2021 .
Financial Highlights for the Fourth Quarter of 2021
-
Revenue increased by
9% , to$26.6 million $24.3 million 33% , to$26.6 million $20.0 million Automation Alley . -
Gross profit decreased
4% , to$15.0 million $15.7 million -
Gross margin was
56% in the fourth quarter of 2021 compared to65% in the fourth quarter of 2020. -
Net loss from operations was
$18.9 million $3.2 million -
Adjusted EBITDA was a loss of
$11.0 million $1.7 million
Adjusted EBITDA is a non-GAAP measure. Please see “Non-GAAP Financial Measures” below for a reconciliation of Adjusted EBITDA to the most directly comparable non-GAAP measure.
Business Highlights
In 2021, the Company continued to expand the addressable market of the Digital Forge by introducing 12 major, new solutions to the platform in the form of printers, software updates and materials. Most notably, the FX20 with ULTEM™ 9085 Filament with Continuous Fiber Reinforcement advanced the Company’s position as a leader in point-of-need production in industrial-strength parts. Built to scale distributed global production, the FX20 empowers
“Between the release of new, expanded capabilities of the Digital Forge and the material uptick in volume shipment of the FX20 expected in the latter half of this year, we remain confident in our ability to achieve our targets again in 2022,” says
Business Outlook for Full-Year 2022
-
Full-year revenue is anticipated to be
$114.0 $123.0 million 30% at the midpoint of that range. -
Factoring in seasonality and FX20 revenue in the second half of the year, we expect
60% -65% of our revenue will be recognized in the second half of the year. -
Expectations continue for generating industry-leading gross margins, with full-year non-GAAP gross margin expected to be in the range of
55% -57% . -
We expect operating expenses to decline as a percentage of our revenue, resulting in a non-GAAP operating loss in the range of
$52.0 $57.0 million -
We expect non-GAAP earnings per share results for the full year to be a loss in the range of
$0.28 $0.31 - Beginning in the first quarter of 2022, we intend to supplement the reporting of our GAAP results with certain non-GAAP results for gross profit, operating profit, and earnings per share, intended to provide broader insight into how we manage our business. We believe this will provide a more meaningful set of data points, for comparison purposes, than our prior non-GAAP reporting of adjusted EBITDA.
Conference Call and Webcast Information
The Company will host a webcast and conference call at
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 1-877-407-9039, 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
Amounts herein pertaining to
About
Non-GAAP Financial Measures
In addition to our financial results determined in accordance with
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.
Adjusted EBITDA
We define Adjusted EBITDA, a non-GAAP financial measure, as net profit (loss) and comprehensive loss less interest income, interest expense, income tax expense, depreciation and amortization expense, stock-based compensation expense, net change in fair value of warrant liabilities and contingent earnout liabilities, and non-recurring transaction costs. We monitor Adjusted EBITDA 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 Adjusted EBITDA is useful in evaluating our business, Adjusted EBITDA is a non-GAAP financial measure that has limitations as an analytical tool. Adjusted EBITDA can be useful in evaluating our performance by eliminating the effect of financing, capital expenditures, and 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
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| As of |
||||||||
| (In thousands, except share data and par value amounts) (Unaudited) | ||||||||
2020 |
||||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ |
288,603 |
|
$ |
58,715 |
|
||
| Accounts receivable, net |
|
26,777 |
|
|
16,601 |
|
||
| Inventory |
|
10,377 |
|
|
6,553 |
|
||
| Prepaid expenses |
|
3,921 |
|
|
1,496 |
|
||
| Other current assets |
|
511 |
|
|
1,373 |
|
||
| Total current assets |
|
330,189 |
|
|
84,738 |
|
||
| Property and equipment, net |
|
6,349 |
|
|
4,281 |
|
||
| Other assets |
|
776 |
|
|
584 |
|
||
| Total assets | $ |
337,314 |
|
$ |
89,603 |
|
||
| Liabilities, Convertible Preferred Stock, and Stockholders’ Equity (Deficit) | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ |
11,403 |
|
$ |
3,369 |
|
||
| Accrued expenses |
|
7,411 |
|
|
8,168 |
|
||
| Deferred revenue |
|
6,288 |
|
|
6,196 |
|
||
| Other current liabilities |
|
310 |
|
|
300 |
|
||
| Total current liabilities |
|
25,412 |
|
|
18,033 |
|
||
| Long-term debt |
|
— |
|
|
5,022 |
|
||
| Long-term deferred revenue |
|
3,742 |
|
|
2,905 |
|
||
| Deferred rent |
|
1,623 |
|
|
1,073 |
|
||
| Contingent earnout liability |
|
59,722 |
|
|
— |
|
||
| Other liabilities |
|
2,646 |
|
|
545 |
|
||
| Total liabilities |
|
93,145 |
|
|
27,578 |
|
||
| Commitments and contingencies | ||||||||
| Convertible preferred stock |
|
— |
|
|
137,497 |
|
||
| Stockholders’ equity (deficit) | ||||||||
| Common stock, on shares issued on |
|
19 |
|
|
4 |
|
||
| Additional paid-in capital |
|
319,859 |
|
|
5,538 |
|
||
|
— |
|
|
(1,450 |
) |
|||
| Accumulated deficit |
|
(75,709 |
) |
|
(79,564 |
) |
||
| Total stockholders’ equity (deficit) |
|
244,169 |
|
|
(75,472 |
) |
||
| Total liabilities, convertible preferred stock, and stockholders’ equity (deficit) | $ |
337,314 |
|
$ |
89,603 |
|
||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND | |||||||||||||||
| COMPREHENSIVE INCOME (LOSS) | |||||||||||||||
| For the three months and years ended |
|||||||||||||||
| (In thousands, except share data and per share data) (Unaudited) | |||||||||||||||
| Three Months Ended |
Year Ended |
||||||||||||||
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
||||
| Revenue | $ |
26,637 |
|
$ |
24,337 |
|
$ |
91,221 |
|
$ |
71,851 |
|
|||
| Cost of revenue |
|
11,603 |
|
|
8,605 |
|
|
38,368 |
|
|
29,921 |
|
|||
| Gross profit |
|
15,034 |
|
|
15,732 |
|
|
52,853 |
|
|
41,930 |
|
|||
| Operating expenses | |||||||||||||||
| Sales and marketing |
|
10,255 |
|
|
5,669 |
|
|
35,966 |
|
|
22,413 |
|
|||
| Research and development |
|
10,691 |
|
|
4,293 |
|
|
32,155 |
|
|
17,176 |
|
|||
| General and administrative |
|
13,015 |
|
|
8,942 |
|
|
45,772 |
|
|
20,080 |
|
|||
| Total operating expenses |
|
33,961 |
|
|
18,904 |
|
|
113,893 |
|
|
59,669 |
|
|||
| Loss from operations |
|
(18,927 |
) |
|
(3,172 |
) |
|
(61,040 |
) |
|
(17,739 |
) |
|||
| Change in fair value of warrant liabilities |
|
1,638 |
|
|
(96 |
) |
|
1,808 |
|
|
(175 |
) |
|||
| Change in fair value of contingent earnout liability |
|
20,697 |
|
|
— |
|
|
63,407 |
|
|
— |
|
|||
| Other expense |
|
(97 |
) |
|
(20 |
) |
|
(265 |
) |
|
(9 |
) |
|||
| Interest expense |
|
(1 |
) |
|
(47 |
) |
|
(16 |
) |
|
(98 |
) |
|||
| Interest income |
|
8 |
|
|
1 |
|
|
17 |
|
|
147 |
|
|||
| Profit (loss) before income taxes |
|
3,318 |
|
|
(3,334 |
) |
|
3,911 |
|
|
(17,874 |
) |
|||
| Income tax (benefit) expense |
|
57 |
|
|
(2 |
) |
|
56 |
|
|
111 |
|
|||
| Net profit (loss) and comprehensive income (loss) | $ |
3,261 |
|
$ |
(3,332 |
) |
$ |
3,855 |
|
$ |
(17,985 |
) |
|||
| Deemed dividend - redemption of common stock |
|
— |
|
|
(826 |
) |
|
— |
|
|
(826 |
) |
|||
| Net loss attributable to common stockholders | $ |
3,261 |
|
$ |
(4,158 |
) |
$ |
3,855 |
|
$ |
(18,811 |
) |
|||
| Weighted average shares outstanding - basic |
|
185,857,298 |
|
|
39,324,355 |
|
|
108,088,115 |
|
|
38,336,659 |
|
|||
| Weighted average shares outstanding - diluted |
|
190,535,066 |
|
|
39,324,355 |
|
|
113,963,424 |
|
|
38,336,659 |
|
|||
| Net profit (loss) per share - basic | $ |
0.02 |
|
$ |
(0.11 |
) |
$ |
0.04 |
|
$ |
(0.49 |
) |
|||
| Net profit (loss) per share - diluted | $ |
0.02 |
|
$ |
(0.11 |
) |
$ |
0.03 |
|
$ |
(0.49 |
) |
|||
| RECONCILIATION OF GAAP TO NON-GAAP MEASURES | ||||||||||||||||
| For the three months and years ended |
||||||||||||||||
| (In thousands) (Unaudited) | ||||||||||||||||
| | | Three Months Ended |
| Year Ended |
||||||||||||
| |
|
2021 |
|
|
2020 |
|
|
|
2021 |
|
|
2020 |
|
|||
| Net profit (loss) and comprehensive income (loss) | | $ |
3,261 |
|
$ |
(3,332 |
) |
| $ |
3,855 |
|
$ |
(17,985 |
) |
||
| Interest income | |
|
(8 |
) |
|
(1 |
) |
|
|
(17 |
) |
|
(147 |
) |
||
| Interest expense | |
|
1 |
|
|
47 |
|
|
|
16 |
|
|
98 |
|
||
| Income tax expense | |
|
57 |
|
|
(2 |
) |
|
|
56 |
|
|
111 |
|
||
| Depreciation and amortization | |
|
451 |
|
|
434 |
|
|
|
1,720 |
|
|
1,795 |
|
||
| EBITDA | | $ |
3,762 |
|
$ |
(2,854 |
) |
| $ |
5,630 |
|
$ |
(16,128 |
) |
||
| Stock compensation expense | |
|
7,535 |
|
|
1,041 |
|
|
|
18,930 |
|
|
2,569 |
|
||
| Change in fair value of warrant liabilities |
|
(1,638 |
) |
|
96 |
|
|
(1,808 |
) |
|
175 |
|
||||
| Change in fair value of contingent earnout liability |
|
(20,697 |
) |
|
— |
|
|
(63,407 |
) |
|
— |
|
||||
| Transaction costs expensed | |
|
— |
|
|
— |
|
|
|
1,996 |
|
|
— |
|
||
| Adjusted EBITDA | | $ |
(11,038 |
) |
$ |
(1,717 |
) |
| $ |
(38,659 |
) |
$ |
(13,384 |
) |
||
View source version on businesswire.com: https://www.businesswire.com/news/home/20220315006264/en/
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press@markforged.com
investors@markforged.com
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FAQ
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