Markforged (US:MKFG)2024-05-08 20:38Revenue Performance - Revenue for the three months ended March 31, 2024, was $20.5 million, a decrease of 15% compared to $24.1 million for the same period in 2023[154]. - Consolidated revenue for the three months ended March 31, 2024 was $20.5 million, a decrease of 15% compared to $24.1 million for the same period in 2023[159]. - Hardware revenue decreased by 26% to $11.3 million, while services revenue increased by 18% to $2.9 million, driven by the launch of a subscription offering[160]. Net Loss and Financial Health - Net loss for the three months ended March 31, 2024, was $35.9 million, compared to a net loss of $19.0 million for the same period in 2023, reflecting an increase in losses of $16.9 million[154]. - The company incurred a net loss of $35.9 million for the three months ended March 31, 2024, compared to a net loss of $19.0 million in 2023[176]. - Non-GAAP net loss for the three months ended March 31, 2024 was $12.2 million, compared to a non-GAAP net loss of $13.3 million in 2023[175]. Operating Expenses - Operating expenses increased to $47.2 million for the three months ended March 31, 2024, compared to $33.1 million for the same period in 2023, primarily due to a $17.3 million litigation judgment[154]. - Total operating expenses increased by 43% to $47.2 million, primarily due to a $17.3 million litigation judgment[163]. - Research and development expenses decreased by 4% to $9.9 million, reflecting cost management efforts[164]. Cash Position - Cash and cash equivalents as of March 31, 2024, were $107.9 million, with an accumulated deficit of $240.6 million[130]. - Cash and cash equivalents as of March 31, 2024 were $107.9 million, sufficient to meet working capital needs for the next 12 months[177]. - As of March 31, 2024, the company had $107.9 million in cash and cash equivalents[187]. Revenue Composition - Recurring revenue accounted for 45% of total revenue for the three months ended March 31, 2024, up from 37% in the same period of 2023[136]. - The company anticipates that its cost of revenue will increase in absolute dollars as revenues continue to grow[142]. Legal and Compliance Matters - The company incurred a $17.3 million accrual related to a patent infringement verdict during the three months ended March 31, 2024[130]. - The company has not engaged in any hedging activities since inception and does not expect to do so in the future[187]. - The company is classified as an "emerging growth company" under the JOBS Act, allowing it to delay adopting new accounting standards[185]. - The company intends to utilize the extended transition period provided by the JOBS Act for compliance with new accounting standards[185]. - Recent accounting pronouncements have been adopted and are detailed in Note 2 of the condensed consolidated financial statements[184]. - The company’s financial statements may not be comparable to those of companies that comply with new accounting standards as of public company effective dates[185]. - The company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[187]. Profitability Metrics - The gross profit for the three months ended March 31, 2024, was $10.1 million, down 13% from $11.6 million in the same period of 2023[154]. - Gross profit for the three months ended March 31, 2024 was $10.1 million, down from $11.6 million in 2023, with a gross margin of 49%, up from 48%[161]. Cash Flow - Net cash used in operating activities decreased by 52% to $7.4 million for the three months ended March 31, 2024, compared to $15.5 million in 2023[180].