[First Quarter 2024 Earnings Overview](index=1&type=section&id=First%20Quarter%202024%20Earnings%20Overview) Markforged reported Q1 2024 revenue of $20.5 million, a net loss of $35.9 million due to litigation, and began shipping the FX10 [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Shai Terem highlighted strong execution in Q1 2024, setting a solid foundation for the year despite challenging global capital expenditures - Markforged started 2024 with **strong execution**, setting a solid foundation for the year ahead, despite challenging global capital expenditures on manufacturing equipment[4](index=4&type=chunk) - The company met a pivotal milestone by beginning to ship the **FX10** in Q1, with encouraging market response and optimism for accelerated deliveries in the second half[4](index=4&type=chunk) - Markforged continued to build operational efficiencies and adhere to **strong cost controls** to drive sustainable, long-term growth[4](index=4&type=chunk) [Key Financial and Business Highlights](index=1&type=section&id=Key%20Financial%20and%20Business%20Highlights) Markforged reported a decrease in Q1 2024 revenue to $20.5 million from $24.1 million YoY, but improved GAAP gross margin to 49.3% and non-GAAP gross margin to 51.3% Q1 2024 vs Q1 2023 Financial Highlights | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Revenue | $20.5 million | $24.1 million | -14.9% | | Gross margin (GAAP) | 49.3% | 48.1% | +1.2 pp | | Non-GAAP gross margin | 51.3% | 49.3% | +2.0 pp | | Operating expenses | $47.2 million | $33.1 million | +42.6% | | Non-GAAP operating expenses | $24.1 million | $26.7 million | -9.7% | | Net loss (GAAP) | $35.9 million | $19.0 million | +89.0% | | Non-GAAP net loss | $12.2 million | $13.3 million | -8.3% | | Cash and cash equivalents (as of period end) | $107.9 million | $116.9 million (Dec 31, 2023) | -7.7% | - Markforged reached a pivotal milestone in Q1 by shipping the **FX10**, its next-generation 3D printer, which delivers high print quality at nearly twice the speed and up to twice the print volume of its predecessor, the X7. Initial market feedback has been encouraging[8](index=8&type=chunk) - The company improved operational efficiencies, achieving **strong Q1 non-GAAP gross margin performance exceeding 51%** despite lower revenues, and reducing net cash used in operating activities by approximately **52%** from Q1 2023 to **$7.4 million**[8](index=8&type=chunk) - A jury found Markforged infringed on one patent claim of Continuous Composites Inc. and awarded **$17.3 million** in monetary damages, which the company strongly disagrees with and intends to appeal[8](index=8&type=chunk) [Board of Directors Update](index=1&type=section&id=Board%20of%20Directors%20Update) Markforged announced the appointment of George Riedel to its Board of Directors, effective May 7, 2024 - George Riedel was appointed to Markforged's Board of Directors, effective May 7, 2024[6](index=6&type=chunk) - Riedel brings extensive executive leadership experience in global technology industries and a proven track record in corporate strategy, expected to be instrumental in guiding Markforged's focus on building shareholder value[6](index=6&type=chunk)[7](index=7&type=chunk) [2024 Financial Outlook](index=3&type=section&id=2024%20Financial%20Outlook) Markforged reiterated its 2024 guidance, projecting revenues of $95-$105 million and a non-GAAP operating loss of $42.5-$47.0 million [Full Year 2024 Guidance](index=3&type=section&id=Full%20Year%202024%20Guidance) Markforged reiterated its fiscal year 2024 guidance, anticipating revenues between $95 million and $105 million, with mid-single-digit quarter-over-quarter growth in Q2 and accelerated growth in H2 driven by new products like the FX10 2024 Financial Guidance | Metric | 2024 Guidance | | :--- | :--- | | Revenues | $95 - $105 million | | Non-GAAP gross margins | 48% - 50% | | Non-GAAP operating loss | $42.5 - $47.0 million | | Non-GAAP loss per share | $0.19 - $0.22 | - Markforged expects revenues to grow mid-single digits quarter-over-quarter in the second quarter, with an opportunity for accelerated growth in the second half of the fiscal year, underpinned by new products, particularly the FX10[9](index=9&type=chunk) [Impact of Continuous Composites Litigation](index=3&type=section&id=Impact%20of%20Continuous%20Composites%20Litigation) The provided 2024 financial guidance does not reflect any potential additional actions Continuous Composites may take, such as seeking further relief through post-trial motions for royalty payments on future revenue, which could impact the company's financial results - The 2024 guidance does not reflect any potential additional action Continuous Composites may take, including seeking additional relief through post-trial motions for royalty payments on future revenue[10](index=10&type=chunk) [Company Information](index=3&type=section&id=Company%20Information) Markforged is an industrial 3D printing company providing hardware, software, and materials for additive manufacturing to over 10,000 customers [About Markforged](index=3&type=section&id=About%20Markforged) Markforged is an industrial 3D printing company enabling resilient and flexible manufacturing through its additive manufacturing platform, The Digital Forge - Markforged enables more resilient and flexible manufacturing by bringing industrial 3D printing to the factory floor[13](index=13&type=chunk) - Its additive manufacturing platform, The Digital Forge, allows manufacturers to create strong, accurate parts in both metal and advanced composites[13](index=13&type=chunk) - The company serves over **10,000 customers** in **70+ countries** and is headquartered in Waltham, Mass., where it designs hardware, software, and advanced materials[13](index=13&type=chunk) [Conference Call and Webcast](index=3&type=section&id=Conference%20Call%20and%20Webcast) Markforged hosted a webcast and conference call on May 8, 2024, at 5:00 p.m. ET to discuss the Q1 2024 results - Markforged hosted a webcast and conference call on Wednesday, May 8, 2024, at 5:00 p.m. ET to discuss the Q1 2024 results[11](index=11&type=chunk) - A replay of the conference call was available on the Company's website and telephonically until Wednesday, May 22, 2024[12](index=12&type=chunk) [Investor Contacts](index=13&type=section&id=Investor%20Contacts) Contact information for media inquiries (Sam Manning, Public Relations Manager) and investor relations (Austin Bohlig, Director of Investor Relations) is provided - Media contact: Sam Manning, Public Relations Manager (sam.manning@markforged.com)[32](index=32&type=chunk) - Investor contact: Austin Bohlig, Director of Investor Relations (investors@markforged.com)[32](index=32&type=chunk) [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) Markforged uses non-GAAP financial measures to evaluate performance, providing GAAP reconciliations and cautioning on their limitations [Explanation of Non-GAAP Measures](index=3&type=section&id=Explanation%20of%20Non-GAAP%20Measures) Markforged uses non-GAAP financial measures (gross margin, operating profit/loss, net profit/loss, EPS) to evaluate business performance, believing they are useful - Markforged believes non-GAAP gross margin, operating profit (loss), net profit (loss), and earnings per share are useful in evaluating business performance[14](index=14&type=chunk) - These non-GAAP measures have limitations as an analytical tool and should not be considered in isolation from, or as a substitute for, GAAP financial information. They may also not be comparable to measures used by other companies[15](index=15&type=chunk) - Non-GAAP measures are generally defined by adjusting GAAP figures for stock-based compensation expense, amortization, certain non-recurring costs, and for net profit/loss and EPS, also net change in fair value of warrant liabilities and contingent earnout liabilities[17](index=17&type=chunk) [Reconciliation of GAAP to Non-GAAP Measures](index=10&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) The report provides detailed reconciliations from GAAP to non-GAAP financial measures for the three months ended March 31, 2024, and 2023 Non-GAAP Net Loss Reconciliation (in thousands) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net loss (GAAP) | $(35,946) | $(19,019) | | Stock compensation expense | $3,461 | $4,356 | | Change in fair value of derivative liabilities | $(31) | $(189) | | Change in fair value of contingent earnout liability | $161 | $(808) | | Amortization | $378 | $277 | | Litigation judgment | $17,300 | $0 | | Non-recurring costs | $2,446 | $2,081 | | **Non-GAAP net loss** | **$(12,231)** | **$(13,302)** | Non-GAAP Cost of Revenue and Gross Profit Reconciliation (in thousands) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Cost of revenue (GAAP) | $10,414 | $12,508 | | Stock compensation expense | $(49) | $(73) | | Amortization | $(357) | $(228) | | **Non-GAAP Cost of Revenue** | **$10,008** | **$12,207** | | Gross profit (GAAP) | $10,133 | $11,582 | | Stock compensation expense | $49 | $73 | | Amortization | $357 | $228 | | **Non-GAAP gross profit** | **$10,539** | **$11,883** | Non-GAAP Operating Loss Reconciliation (in thousands) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Loss from operations (GAAP) | $(37,111) | $(21,502) | | Stock compensation expense | $3,461 | $4,356 | | Amortization | $378 | $277 | | Litigation judgment | $17,300 | $0 | | Non-recurring costs | $2,446 | $2,081 | | **Non-GAAP operating loss** | **$(13,526)** | **$(14,788)** | [Financial Statements](index=6&type=section&id=Financial%20Statements) Markforged's Q1 2024 financial statements show total assets of $231.6 million, cash of $107.9 million, and a net loss of $35.9 million [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets were $231.6 million, down from $247.9 million at December 31, 2023. Cash and cash equivalents decreased to $107.9 million from $116.9 million Condensed Consolidated Balance Sheets (in thousands) | Metric | March 31, 2024 | December 31, 2023 | Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $107,924 | $116,854 | -$8,930 | | Total current assets | $158,270 | $172,464 | -$14,194 | | Total assets | $231,630 | $247,952 | -$16,322 | | Litigation judgment payable | $17,300 | $0 | +$17,300 | | Total current liabilities | $60,053 | $40,748 | +$19,305 | | Total liabilities | $103,727 | $86,342 | +$17,385 | | Total stockholders' equity | $127,903 | $161,610 | -$33,707 | - Cash and cash equivalents decreased by **$8.9 million** from December 31, 2023, to March 31, 2024[7](index=7&type=chunk)[20](index=20&type=chunk) - Total liabilities increased significantly by **$17.4 million**, primarily due to the accrual of a **$17.3 million** litigation judgment payable[20](index=20&type=chunk) [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q1 2024, revenue was $20.5 million, down from $24.1 million in Q1 2023. Gross profit decreased to $10.1 million from $11.6 million Condensed Consolidated Statements of Operations (in thousands) | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Revenue | $20,547 | $24,090 | -$3,543 | | Cost of revenue | $10,414 | $12,508 | -$2,094 | | Gross profit | $10,133 | $11,582 | -$1,449 | | Sales and marketing | $7,844 | $10,576 | -$2,732 | | Research and development | $9,935 | $10,380 | -$445 | | General and administrative | $12,165 | $12,128 | +$37 | | Litigation judgment | $17,300 | $0 | +$17,300 | | Total operating expenses | $47,244 | $33,084 | +$14,160 | | Loss from operations | $(37,111) | $(21,502) | -$15,609 | | Net loss | $(35,946) | $(19,019) | -$16,927 | | Net loss per share - basic and diluted | $(0.18) | $(0.10) | -$0.08 | - Revenue decreased by **14.7%** year-over-year to **$20.5 million** in Q1 2024[7](index=7&type=chunk)[22](index=22&type=chunk) - Operating expenses increased significantly by **42.8%** year-over-year, primarily due to a **$17.3 million** accrual for litigation judgment[7](index=7&type=chunk)[22](index=22&type=chunk) - Net loss widened to **$35.9 million** in Q1 2024, compared to a net loss of **$19.0 million** in Q1 2023[7](index=7&type=chunk)[22](index=22&type=chunk) [Condensed Consolidated Statements of Comprehensive Loss](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) For the three months ended March 31, 2024, total comprehensive loss was $37.0 million, compared to $18.9 million in the prior year Condensed Consolidated Statements of Comprehensive Loss (in thousands) | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Net loss | $(35,946) | $(19,019) | -$16,927 | | Foreign currency translation adjustment | $(1,041) | $158 | -$1,199 | | Total comprehensive loss | $(36,987) | $(18,911) | -$18,076 | - Total comprehensive loss for Q1 2024 was **$37.0 million**, an increase from **$18.9 million** in Q1 2023, primarily driven by the increased net loss and a foreign currency translation adjustment[23](index=23&type=chunk) [Disaggregated Revenue](index=9&type=section&id=Disaggregated%20Revenue) This section details Markforged's revenue breakdown by nature of products and services, and by geographic location for Q1 2024 and Q1 2023 [By Nature of Products and Services](index=9&type=section&id=By%20Nature%20of%20Products%20and%20Services) In Q1 2024, hardware revenue decreased significantly to $11.3 million from $15.2 million YoY. Consumables revenue remained stable at $6.4 million, while services revenue increased to $2.9 million from $2.4 million Disaggregated Revenue by Nature of Products and Services (in thousands) | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Hardware | $11,274 | $15,195 | -$3,921 | | Consumables | $6,404 | $6,455 | -$51 | | Services | $2,869 | $2,440 | +$429 | | Total Revenue | $20,547 | $24,090 | -$3,543 | - Hardware revenue decreased by **25.7%** year-over-year in Q1 2024[24](index=24&type=chunk) - Services revenue increased by **17.6%** year-over-year in Q1 2024[24](index=24&type=chunk) [By Geographic Location](index=9&type=section&id=By%20Geographic%20Location) All geographic segments experienced revenue declines in Q1 2024 compared to Q1 2023. Americas revenue slightly decreased to $10.1 million from $10.5 million, while EMEA saw a larger drop to $6.3 million from $8.5 million, and APAC decreased to $4.1 million from $5.1 million Disaggregated Revenue by Geographic Location (in thousands) | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Americas | $10,095 | $10,458 | -$363 | | EMEA | $6,335 | $8,492 | -$2,157 | | APAC | $4,117 | $5,140 | -$1,023 | | Total Revenue | $20,547 | $24,090 | -$3,543 | - EMEA revenue decreased by **25.4%** year-over-year, and APAC revenue decreased by **20.0%** year-over-year in Q1 2024[26](index=26&type=chunk) [Legal Disclosures](index=5&type=section&id=Legal%20Disclosures) This section contains forward-looking statements, cautioning that actual results may differ materially due to inherent risks and uncertainties [Special Note Regarding Forward-Looking Statements](index=5&type=section&id=Special%20Note%20Regarding%20Forward-Looking%20Statements) This section contains forward-looking statements based on beliefs and assumptions, which involve risks and uncertainties that could cause actual results to differ materially - This press release contains forward-looking statements based on beliefs and assumptions, involving risks, uncertainties, and other factors that may cause actual results to be materially different[18](index=18&type=chunk) - Forward-looking statements include future growth rate, revenue, gross profit margin and earnings guidance; contributions of directors; timing of launches and adoption of products (including FX10); market trends; macroeconomic factors; and the Continuous Composites litigation[18](index=18&type=chunk) - Markforged cautions against relying on these statements as representing its views as of any date subsequent to the press release date, and has no current intention to update them except as required by applicable law[18](index=18&type=chunk)

Investors might want to bet on Markforged Holding Corporation (MKFG) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Si ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number 001-39453 Markforged Holding Corporation (Exact name of Registrant as specified in its Charter) | | | (State or other jurisdiction of inc ...

Markforged Holding Corporation (NYSE:MKFG) Q4 2023 Earnings Conference Call March 7, 2024 5:00 PM ET Company Participants Austin Bohlig - Director, Investor Relations Shai Terem - President and CEO Assaf Zipori - CFO Conference Call Participants Troy Jensen - Lake Street Capital Markets Danny Eggerichs - Craig-Hallum Tyler Hutin - William Blair Jacob Stephan - Lake Street Capital Markets Operator Greetings and welcome to the Markforged Fourth Quarter 2023 Earnings Conference Call. At this time, all particip ...

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary) [Fourth Quarter and Full-Year 2023 Financial Highlights](index=1&type=section&id=Fourth%20Quarter%20and%20Full-Year%202023%20Financial%20Highlights) Markforged reported a mixed financial performance for Q4 and full-year 2023. While Q4 saw sequential revenue growth and improved gross margins, full-year revenue and GAAP net loss deteriorated compared to 2022. The company demonstrated improved non-GAAP net loss and reduced cash usage from operations for the full year Q4 2023 vs Q4 2022 Financial Highlights (in thousands) | Metric | Q4 2023 | Q4 2022 | Change (YoY) | | :---------------------------------- | :-------- | :-------- | :----------- | | Revenue | $24,200 | $29,700 | -18.5% | | Gross Margin (GAAP) | 48.4% | 46.9% | +1.5 pp | | Non-GAAP Gross Margin | 49.5% | 47.5% | +2.0 pp | | Operating Expenses (GAAP) | $31,100 | $33,200 | -6.3% | | Non-GAAP Operating Expenses | $24,900 | $29,400 | -15.3% | | Net Loss (GAAP) | $(14,200) | $(10,700) | +32.7% (worse) | | Non-GAAP Net Loss | $(11,600) | $(13,300) | -12.8% (better) | | Cash, Cash Equivalents, & Short-term Investments (as of Dec 31) | $116,900 | $167,900 | -30.4% | Full Year 2023 vs Full Year 2022 Financial Highlights (in thousands) | Metric | FY 2023 | FY 2022 | Change (YoY) | | :---------------------------------- | :-------- | :-------- | :----------- | | Revenue | $93,800 | $101,000 | -7.1% | | Gross Margin (GAAP) | 47.4% | 50.2% | -2.8 pp | | Non-GAAP Gross Margin | 48.6% | 50.8% | -2.2 pp | | Net Cash Used in Operating Activities | $(48,900) | $(73,500) | -33.5% (improved) | [Business Updates](index=1&type=section&id=Business%20Updates) Markforged achieved strong sequential revenue growth in Q4 2023, exceeded gross margin and operating cost targets through effective cost controls, and significantly reduced cash used in operating activities for the full year. Key strategic wins include an expanded partnership with Automation Alley and the introduction of new products like the FX10, strengthening its product portfolio - Markforged delivered **20%** sequential revenue growth in the fourth quarter of **2023**[7](index=7&type=chunk) - Exceeded **2023** gross margin and operating cost targets, supported by effective cost controls[7](index=7&type=chunk) - 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[7](index=7&type=chunk) - Expanded relationship with Automation Alley through the sale of an additional **125** OnyxPro printers for its Project DIAMOnD initiative, building on **300** printers acquired in **2021**[7](index=7&type=chunk) - Realized strong growth in subscription sales, driving services revenues up **25%** year-over-year in **2023**[15](index=15&type=chunk) - Launched three important new products in **2023**: FX10, Vega, and Digital Source, strengthening the product portfolio[15](index=15&type=chunk) [Management Changes](index=2&type=section&id=Markforged%20Announces%20Assaf%20Zipori%20as%20Chief%20Financial%20Officer) Assaf Zipori, previously Acting CFO and Head of Strategy, has been officially appointed as Chief Financial Officer, recognized for his extensive experience and leadership within Markforged - Assaf Zipori, Markforged's Acting Chief Financial Officer, has assumed the role of Chief Financial Officer[8](index=8&type=chunk) - Zipori has served as Acting CFO from November **2019** through March **2021** and again from May **2023** until March **2024**, and as Head of Strategy and Corporate Development since April **2021**[9](index=9&type=chunk) [2024 Financial Outlook](index=2&type=section&id=2024%20Financial%20Outlook) Markforged projects fiscal year 2024 revenues between $95-$105 million, with an anticipated mid-teen sequential decline in Q1 followed by sequential growth throughout the year, driven by new product introductions like the FX10. Non-GAAP gross margins are expected to be 48%-50%, with a non-GAAP operating loss of $42.5-$47.0 million and a non-GAAP loss per share of $0.19-$0.22 Fiscal Year 2024 Financial Guidance | Metric | Guidance Range | | :-------------------------- | :------------- | | Revenues | $95 - $105 million | | Non-GAAP Gross Margins | 48% - 50% | | Non-GAAP Operating Loss | $42.5 - $47.0 million | | Non-GAAP Loss Per Share | $0.19 - $0.22 per share | - Expects normal mid-teen percentage sequential revenue decline in Q1 **2024**, followed by sequential growth throughout the year[11](index=11&type=chunk) - Positive outlook for the second half of **2024**, accompanied by accelerated growth, underpinned by new product introductions, particularly the FX10[11](index=11&type=chunk) [Company Overview](index=2&type=section&id=Company%20Overview) [About Markforged](index=2&type=section&id=About%20Markforged) Markforged is a leader in industrial 3D printing, providing its Digital Forge platform to over 10,000 customers globally for creating metal and advanced composite parts. The company emphasizes robust utilization of its printer network, strong growth in subscription sales, and a continuously strengthened product portfolio with recent introductions like the FX10 - Markforged enables resilient and flexible supply chains by bringing industrial **3D** printing to the factory floor[15](index=15&type=chunk) - Its additive manufacturing platform, The Digital Forge, allows manufacturers to create strong, accurate parts in both metal and advanced composites[15](index=15&type=chunk) - Serves over **10,000** customers in **70+** countries[15](index=15&type=chunk) - Headquartered in Waltham, Mass., where it designs hardware, software, and advanced materials[16](index=16&type=chunk) [Financial Statements (GAAP)](index=6&type=section&id=GAAP%20Financial%20Statements) [Consolidated Balance Sheets](index=6&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) The balance sheet shows a decrease in total assets from $345.9 million in 2022 to $247.9 million in 2023, primarily due to a reduction in cash, cash equivalents, and short-term investments, and the impairment of goodwill. Total liabilities also decreased slightly, while stockholders' equity saw a significant reduction Consolidated Balance Sheet Highlights (in thousands) | Metric | December 31, 2023 | December 31, 2022 | | :---------------------------------- | :------------------ | :------------------ | | Total Assets | $247,952 | $345,941 | | Cash and cash equivalents | $116,854 | $124,242 | | Short-term investments | $0 | $43,690 | | Goodwill | $0 | $31,116 | | Total Liabilities | $86,342 | $93,387 | | Total Stockholders' Equity | $161,610 | $252,554 | [Consolidated Statements of Operations](index=7&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For the full year 2023, Markforged reported a revenue decline to $93.8 million from $101.0 million in 2022. Gross profit decreased, and operating expenses increased significantly due to a goodwill impairment charge, leading to a substantially higher net loss of $103.6 million compared to $25.4 million in 2022 Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Year Ended Dec 31, 2023 | Year Ended Dec 31, 2022 | | :---------------------------------- | :---------------------- | :---------------------- | | Revenue | $93,784 | $100,958 | | Gross profit | $44,414 | $50,706 | | Total operating expenses | $155,795 | $137,790 | | Loss from operations | $(111,381) | $(87,084) | | Net loss | $(103,567) | $(25,388) | | Net loss per share - basic and diluted | $(0.53) | $(0.13) | [Consolidated Statements of Comprehensive Loss](index=8&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20LOSS) The total comprehensive loss for 2023 was $104.7 million, an increase from $24.3 million in 2022, primarily driven by the higher net loss and a foreign currency translation adjustment Consolidated Statements of Comprehensive Loss Highlights (in thousands) | Metric | Year Ended Dec 31, 2023 | Year Ended Dec 31, 2022 | | :-------------------------- | :---------------------- | :---------------------- | | Net loss | $(103,567) | $(25,388) | | Total comprehensive loss | $(104,661) | $(24,320) | [Disaggregated Revenue](index=9&type=section&id=DISAGGREGATED%20REVENUE%20BY%20NATURE%20OF%20PRODUCTS%20AND%20SERVICES) Revenue for both Q4 and full-year 2023 saw declines across hardware, consumables, and all geographic regions compared to the previous year, with services revenue being the only category to show year-over-year growth for the full year [By Nature of Products and Services](index=9&type=section&id=By%20Nature%20of%20Products%20and%20Services) Disaggregated Revenue by Nature of Products and Services (in thousands) | Category | Q4 2023 | Q4 2022 | FY 2023 | FY 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** | [By Geographic Location](index=9&type=section&id=By%20Geographic%20Location) Disaggregated Revenue by Geographic Location (in thousands) | Region | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | | :------- | :------ | :------ | :------ | :------ | | Americas | $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** | [Non-GAAP Financial Measures & Reconciliation](index=3&type=section&id=Non-GAAP%20Measures) [Explanation of Non-GAAP Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) Markforged utilizes non-GAAP financial measures, including gross margin, operating profit (loss), net profit (loss), and earnings per share, to provide insights into its core business performance. These measures exclude items such as stock-based compensation, amortization, fair value adjustments, and certain non-recurring costs, which were modified in 2022 to include litigation costs and exclude amortization impact - Non-GAAP measures are used to evaluate business performance, including non-GAAP gross margin, operating profit (loss), net profit (loss), and earnings per share[17](index=17&type=chunk) - Non-GAAP gross margin excludes stock-based compensation, amortization, and certain non-recurring costs[22](index=22&type=chunk) - Non-GAAP operating profit (loss) excludes stock-based compensation, amortization, and certain non-recurring costs[22](index=22&type=chunk) - Non-GAAP net profit (loss) and earnings per share exclude stock-based compensation, net change in fair value of warrant liabilities and contingent earnout liabilities, amortization, and certain non-recurring costs[22](index=22&type=chunk) - Beginning Q2 **2022**, non-recurring costs were modified to include certain non-recurring litigation costs, and beginning Q4 **2022**, the impact of amortization of intangible assets was removed[20](index=20&type=chunk) [Reconciliation of GAAP to Non-GAAP Measures](index=10&type=section&id=RECONCILIATION%20OF%20GAAP%20TO%20NON-GAAP%20MEASURES) The reconciliation tables demonstrate the adjustments made to GAAP figures to arrive at non-GAAP metrics. For Q4 2023, non-GAAP net loss improved year-over-year, and non-GAAP operating loss also showed improvement compared to Q4 2022. For the full year 2023, non-GAAP net loss and operating loss were lower than in 2022, indicating a better underlying operational performance when excluding specific non-cash and non-recurring items Reconciliation of GAAP Net Loss to Non-GAAP Net Loss (in thousands) | Metric | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | | :---------------------------------- | :-------- | :-------- | :-------- | :-------- | | Net loss (GAAP) | $(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 | | Goodwill impairment | $0 | $0 | $29,467 | $0 | | Non-recurring costs | $1,412 | $1,299 | $8,451 | $5,719 | | **Non-GAAP net loss** | **$(11,612)** | **$(13,329)** | **$(51,248)** | **$(60,106)** | Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit (in thousands) | Metric | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | | :-------------------------- | :-------- | :-------- | :-------- | :-------- | | Gross profit (GAAP) | $11,691 | $13,926 | $44,414 | $50,706 | | Stock compensation expense | $57 | $7 | $259 | $354 | | Amortization | $217 | $66 | $877 | $97 | | Non-recurring costs | $0 | $85 | $0 | $94 | | **Non-GAAP gross profit** | **$11,965** | **$14,084** | **$45,550** | **$51,251** | Reconciliation of GAAP Operating Loss to Non-GAAP Operating Loss (in thousands) | Metric | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | | :---------------------------------- | :-------- | :-------- | :-------- | :-------- | | Operating loss (GAAP) | $(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 | | Goodwill impairment | $0 | $0 | $29,467 | $0 | | Change in fair value of derivative liabilities | $898 | $0 | $898 | $0 | | Non-recurring costs | $1,412 | $1,299 | $8,451 | $5,719 | | **Non-GAAP operating loss** | **$(12,978)** | **$(15,299)** | **$(57,554)** | **$(63,010)** | [Additional Information](index=2&type=section&id=Additional%20Information) [Special Note Regarding Forward-Looking Statements](index=3&type=section&id=Special%20Note%20Regarding%20Forward-Looking%20Statements) This section serves as a cautionary note, emphasizing that statements about future events, such as growth rates, revenue guidance, and product adoption, are forward-looking and subject to various risks and uncertainties, including economic conditions and market trends. Investors are advised not to place undue reliance on these statements as actual results may differ materially - The press release contains forward-looking statements based on beliefs, assumptions, and currently available information[21](index=21&type=chunk) - These statements involve risks, uncertainties, and other factors that may cause actual results to be materially different from expressed or implied information[21](index=21&type=chunk) - Forward-looking statements include future growth rate, revenue, gross profit margin, earnings guidance, impact of investments, restructuring, executive contributions, timing for profitability, product utilization, market growth, product launch timing, market trends, macroeconomic factors, and product benefits/functionality[21](index=21&type=chunk) - Investors should not rely on these statements as representing Markforged's views as of any date subsequent to the press release date[23](index=23&type=chunk) [Conference Call and Webcast Information](index=2&type=section&id=Conference%20Call%20and%20Webcast%20Information) Markforged provided details for its earnings conference call and webcast held on March 7, 2024, including access information for live participation and a telephonic replay available until March 21, 2024 - The company hosted a webcast and conference call on Thursday, March **7**, **2024**, at **5:00** p.m. ET to discuss results[12](index=12&type=chunk) - Participants could access materials and audio webcast via the investors section of the company's website[12](index=12&type=chunk) - A replay was available on the company's website and telephonically until Thursday, March **21**, **2024**, **11:59** PM ET[13](index=13&type=chunk) [Contacts](index=12&type=section&id=Markforged%20Contacts) Contact information for media and investor relations inquiries is provided - Media Contact: Sam Manning, Public Relations Manager (sam.manning@markforged.com)[38](index=38&type=chunk) - Investors Contact: Austin Bohlig, Director of Investor Relations (investors@markforged.com)[38](index=38&type=chunk)

Financial Data and Key Metrics Changes - Revenue for Q3 2023 was $20.1 million, down from $25.2 million in Q3 2022, attributed to macroeconomic headwinds and delayed orders [20][25] - Operating expenses were $24.9 million for Q3 2023, reduced from $28.5 million in Q3 2022, reflecting ongoing cost reduction efforts [31] - Net loss for Q3 2023 was $13.8 million, or a loss of $0.07 per share, compared to previous periods [31] Business Line Data and Key Metrics Changes - The FX10 printer, a new product, is expected to enhance manufacturing productivity and profitability, with a price point around $100,000 [4][28] - The services revenue increased by 33% year-over-year, attributed to a shift to a subscription model and improved attach rates [71] Market Data and Key Metrics Changes - The company noted a backlog of orders, indicating strong demand despite the challenging macroeconomic environment [18][67] - The gross profit margin for Q3 2023 was 46.9%, down from 49.2% in Q3 2022, impacted by the ramp-up of FX20 production [50] Company Strategy and Development Direction - The company is focused on building out its platform and believes high-margin revenue streams will be a growth catalyst in the coming years [17] - A restructuring initiative is expected to deliver operating cost savings of approximately $9 million to $12 million in 2024, with a 10% headcount reduction [26][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term growth despite current macroeconomic uncertainties, emphasizing the need for manufacturers to reduce costs and enhance supply chain resilience [16][19] - The company anticipates that the high cost of capital will continue to restrict capital investment in the short term, but remains optimistic about future growth as macroeconomic conditions improve [15][21] Other Important Information - The company has launched the Digital Source, an on-demand parts platform, which is expected to enhance operational efficiencies [27] - Cash balance at the end of Q3 2023 was $126 million, down from $136 million at the end of Q2 2023, with a focus on optimizing cash utilization [51] Q&A Session Summary Question: Can you provide details about the FX10 backlog? - Management indicated that the backlog includes both existing customers looking to upgrade and new customers interested in 3D printing solutions [3][67] Question: What drove the decline in consumables revenue? - Management noted that there was no drop in utilization, but fluctuations in purchasing patterns can occur due to the company's size [36][37] Question: How will the restructuring initiative impact operating expenses? - The annual run rate for operating expenses is expected to be between $92 million and $95 million, with the impact of the restructuring felt throughout 2024 [40][62] Question: Is there concern about cannibalization from the Digital Source? - Management clarified that the Digital Source has generated increased adoption rather than cannibalization, with strong interest from OEMs [73] Question: What is the growth outlook for 2024? - Management remains optimistic about growth in 2024, balancing revenue growth with profitability amid macroeconomic challenges [74]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39453 Markforged Holding Corporation (Exact Name of Registrant as Specified in its Charter) Delaware 92-3037714 (Address of p ...

Financial Data and Key Metrics Changes - Revenue for Q2 2023 reached $25.4 million, a 5% increase from $24.2 million in Q2 2022 [39] - Operating expenses decreased to $26.6 million in Q2 2023 from $30 million in Q2 2022, reflecting improved cost control [25] - Net loss for Q2 2023 was $12.5 million, or a loss of $0.06 per share, with expectations for EPS loss per share between $0.25 and $0.27 for the year [25][26] Business Line Data and Key Metrics Changes - The company is focused on innovations that enhance production efficiency, particularly with the FX20 and Metal X systems, which are expected to expand into new sectors [22][36] - Gross profit margin for Q2 2023 was 48.3%, down from 53.8% in Q2 2022, attributed to ramping up FX20 production [39] Market Data and Key Metrics Changes - The company anticipates revenue guidance for the year to be between $101 million and $110 million, with Q3 expected to be in line with Q2 [9] - The demand for the Digital Forge is growing globally, despite a high cost of capital environment affecting capital expenditure investments [33] Company Strategy and Development Direction - The company aims to strengthen manufacturing resiliency and supply chains, targeting a $43 billion market opportunity [22] - Plans for multiple new product introductions in the second half of 2023 are expected to contribute to accelerated growth in 2024 [37] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of 2023, expecting growth compared to the first half [29] - The company is confident in achieving operational breakeven by the end of Q4 2024 and cash flow positivity in 2025 [51] Other Important Information - The company has seen an increase in utilization of its equipment, with over 90% of systems connected and showing growth quarter-over-quarter [50] - Cash used in operating activities decreased by approximately 26% in the first half of 2023 compared to the first half of 2022, indicating improved cash management [54] Q&A Session Summary Question: What is the current market visibility and sales cycle length? - Management noted that while sales cycles are lengthening, the pipeline is increasing materially year-over-year, and they feel good about upcoming opportunities [41][57] Question: How are gross margins trending, particularly with FX20 production costs? - Management confirmed that gross margins are expected to improve and are on track to return to over 50% in 2024 [58] Question: When can customers expect delivery of the PX100? - Orders placed today are expected to be delivered in Q1 or Q2 of 2024 [59] Question: How is the company managing its cash flow and balance sheet? - Management expressed confidence in their cash utilization and balance sheet, stating no need for external funding before reaching profitability [48] Question: What is the trend in equipment utilization? - Utilization continues to increase quarter-over-quarter, with some softness noted in Europe, but overall growth remains strong [50]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR Waltham, MA 02451 (Exact Name of Registrant as Specified in its Charter) (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (866) 496-1805 Delaware 92-3037714 (State or other jurisdiction of incorporation or organization) ☐ TRANSI ...

PART I. FINANCIAL INFORMATION [Item 1. Condensed Consolidated Financial Statements](index=6&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) Presents Markforged's unaudited condensed consolidated financial statements for Q1 2023 and Q1 2022, with detailed notes [Unaudited Condensed Consolidated Balance Sheets](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Details Markforged's assets, liabilities, and stockholders' equity as of March 31, 2023, and December 31, 2022 | (In thousands) | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $90,674 | $124,242 | | Short-term investments | $60,756 | $43,690 | | Total current assets | $212,515 | $229,816 | | Total assets | $327,887 | $345,941 | | **Liabilities and Stockholders' Equity** | | | | Total current liabilities | $39,127 | $40,964 | | Total liabilities | $89,826 | $93,387 | | Total stockholders' equity | $238,061 | $252,554 | | Total liabilities and stockholders' equity | $327,887 | $345,941 | [Unaudited Condensed Consolidated Statements of Operations](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) Presents Markforged's revenues, costs, and net loss for the three months ended March 31, 2023, and 2022 | (In thousands) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Revenue | $24,090 | $21,859 | | Cost of revenue | $12,508 | $10,253 | | Gross profit | $11,582 | $11,606 | | Total operating expenses | $33,084 | $32,758 | | Loss from operations | $(21,502) | $(21,152) | | Net (loss) profit | $(19,019) | $4,239 | | Net (loss) profit per share - basic | $(0.10) | $0.02 | [Unaudited Condensed Consolidated Statements of Other Comprehensive Income (Loss)](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Other%20Comprehensive%20Income%20(Loss)) Details Markforged's net loss and other comprehensive income (loss) for Q1 2023 and Q1 2022 | (In thousands) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 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 | [Unaudited Statement of Changes in Stockholders' Equity](index=9&type=section&id=Unaudited%20Statement%20of%20Changes%20in%20Stockholders'%20Equity) Summarizes changes in Markforged's stockholders' equity for Q1 2023 and Q1 2022, including net loss and stock-based compensation | (In thousands) | December 31, 2022 | March 31, 2023 | | :--- | :--- | :--- | | Total Stockholders' Equity | $252,554 | $238,061 | | Net loss | $(19,019) | | | Other comprehensive income | $108 | | | Stock-based compensation expense | $4,144 | | | Earnout stock-based compensation expense | $212 | | | (In thousands) | December 31, 2021 | March 31, 2022 | | :--- | :--- | :--- | | Total Stockholders' Equity | $244,169 | $254,410 | | Net income and comprehensive income | $4,239 | | | Stock-based compensation expense | $4,285 | | | Earnout stock-based compensation expense | $1,137 | | [Unaudited Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Presents Markforged's cash flow activities for the three months ended March 31, 2023, and 2022 | (In thousands) | For the Three Months Ended March 31, 2023 | For the Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | $(15,542) | $(19,247) | | Net cash used in investing activities | $(18,096) | $(798) | | Net cash provided by financing activities | $62 | $580 | | Net change in cash, cash equivalents, and restricted cash | $(33,568) | $(19,465) | | Cash, cash equivalents, and restricted cash - End of period | $90,674 | $269,138 | [Unaudited Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Unaudited%20Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed notes to the condensed consolidated financial statements, covering accounting policies, acquisitions, and other financial details [Note 1. Organization, Nature of the Business, and Risks and Uncertainties](index=11&type=section&id=Note%201.%20Organization,%20Nature%20of%20the%20Business,%20and%20Risks%20and%20Uncertainties) - Markforged, founded in 2013, specializes in additive manufacturing, producing 3D printers, materials, software, and services for high-strength, cost-effective parts, completing a merger on July 14, 2021[32](index=32&type=chunk)[33](index=33&type=chunk) - The company monitors supply chain disruptions and economic downturns, believing existing cash is sufficient for operating and capital expenditure requirements for at least one year[35](index=35&type=chunk)[36](index=36&type=chunk) [Note 2. Summary of Significant Accounting Policies](index=11&type=section&id=Note%202.%20Summary%20of%20Significant%20Accounting%20Policies) - Financial statements conform to US GAAP and SEC regulations, with key estimates including allowance for doubtful accounts, inventory reserves, fair value of contingent earnout liability, and valuation of intangibles and goodwill[38](index=38&type=chunk)[39](index=39&type=chunk)[41](index=41&type=chunk) - The company classifies financial instruments measured at fair value into Level 1, Level 2, and Level 3, with contingent earnout liability, private placement warrant liability, and Teton acquisition contingent earnout liability as **Level 3**[49](index=49&type=chunk)[50](index=50&type=chunk) - The Company adopted ASU 2016-13, Financial Instruments — Credit Losses (Topic 326), effective January 1, 2023, with no material effect on its condensed consolidated financial statements[79](index=79&type=chunk) Cash Equivalents and Short-term Investments (March 31, 2023) | (in thousands) | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | | :--- | :--- | :--- | :--- | :--- | | Money market funds | $82,704 | $— | $— | $82,704 | | Commercial paper | $27,447 | $— | $— | $27,447 | | Government bonds | $20,440 | $17 | $— | $20,457 | | Corporate bonds | $4,966 | $— | $(11) | $4,955 | | U.S. Treasury bills | $4,944 | $1 | $— | $4,945 | | Asset-backed securities | $2,955 | $— | $(3) | $2,952 | | **Total cash equivalents and short-term investments** | **$143,456** | **$18** | **$(14)** | **$143,460** | Changes in Allowance for Doubtful Accounts | (in thousands) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Balance at beginning of period | $1,559 | $1,021 | | Provision adjustment | $(523) | $(43) | | Write – offs | $(250) | $(7) | | Balance at end of period | $786 | $971 | [Note 3. Acquisitions](index=19&type=section&id=Note%203.%20Acquisitions) - On April 4, 2022, Markforged acquired Teton Simulation Software for **$6.6 million**, integrating its SmartSlice™ technology into Eiger™[80](index=80&type=chunk) - On August 31, 2022, Markforged acquired Digital Metal AB for approximately **$43.3 million** ($33.