Markforged (US:MKFG)2023-03-07 00:25Financial Data and Key Metrics Changes - For fiscal year 2022, revenue increased by 11% to $101 million compared to $91.2 million in 2021 [28] - Gross profit for Q4 2022 was $14.1 million, resulting in a gross profit margin of 47.5%, down from 57.6% in Q4 2021 [34] - The net loss for Q4 2022 was $13.3 million, or $0.07 per share, with a full-year net loss of $60.1 million, or $0.32 per share [35][37] - Operating expenses for Q4 2022 were $29.4 million, up from $26.3 million in Q4 2021 [27] Business Line Data and Key Metrics Changes - The company experienced growth across hardware, consumables, and services, with EMEA and APAC regions growing 18% and 41% respectively for the year [28][29] - The FX20, a new product, saw demand exceed expectations, with multisystem orders received in its first year of availability [8][19] Market Data and Key Metrics Changes - In the Americas, there were delayed purchase decisions due to macroeconomic uncertainty, while EMEA and APAC regions executed growth strategies with revenue growth of 36% and 20% year-over-year respectively [5][6] - The company anticipates continued growth in EMEA and APAC for 2023, while taking actions to optimize its go-to-market model in the Americas [6][7] Company Strategy and Development Direction - The company aims to make manufacturing more resilient and flexible through its Digital Forge, addressing a $43 billion market opportunity [17] - The strategy includes expanding the addressable market through product innovation and acquisitions, with a focus on operational leverage and cost control [7][29] - The company plans to launch the TX100 in Q1 2023, which is expected to double production speed for metal parts [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving profitable growth despite macroeconomic uncertainties, with expectations for reduced cash burn in 2023 [3][41] - The company aims to reach breakeven by the end of 2024, focusing on non-GAAP profitability [65][100] - Management noted that supply chain disruptions have been a catalyst for growth as manufacturers seek to shorten supply chains [16] Other Important Information - The company has removed approximately $20 million from its cost structure since Q2 2022 while investing over $70 million in its innovation pipeline [4][39] - The company expects non-GAAP gross margins for 2023 to be in the range of 47% to 49% [38] Q&A Session Summary Question: Geographic disparity in performance - Management noted that while the U.S. market is sensitive to inflation and recession, EMEA showed strong growth due to improved energy prices and leadership changes [44] Question: FX20 demand and customer breakdown - Strong demand for FX20 was reported, particularly in aerospace applications, with follow-on orders indicating positive customer reception [48][49] Question: Revenue guidance conservatism - Management indicated that the revenue guidance reflects current market uncertainties, with potential for improvement if the economy stabilizes [55] Question: Gross margin guidance - Management explained that the lower gross margin guidance is due to FX20 cost impacts and ongoing supply chain challenges, with a long-term target of returning to 55% gross margins [58][59] Question: Profitability target specifics - The company remains committed to reaching breakeven by the end of 2024, with expectations for Q4 profitability [65][100] Question: Cash management and R&D investments - Management highlighted a significant reduction in cash burn expected in 2023, alongside continued investment in R&D to support innovation [111][113]