Markforged (US:MKFG)2022-03-16 02:34Financial Data and Key Metrics Changes - In Q4 2021, revenue reached $26.6 million, bringing total revenue for 2021 to $91.2 million, representing a 27% annual organic growth with 58% gross margins [10][25] - Gross profit for the year increased to $52.9 million, achieving a gross profit margin of 57.9% compared to 58.4% in 2020 [27] - Adjusted EBITDA for the year was a loss of $38.7 million, or $0.21 per share based on 186 million shares outstanding [33] Business Line Data and Key Metrics Changes - Sales of industrial solutions saw approximately a 50% year-over-year increase, particularly in aerospace and automotive sectors [15] - Research and development expenses increased by 87.2% to $32.2 million compared to $17.2 million in the previous year, reflecting a commitment to accelerate new product time to market [30][32] Market Data and Key Metrics Changes - The company reported growth across all products and services and across all geographic regions [25] - The Digital Forge platform has over 12,000 active printers that have printed over 11 million parts, indicating strong market adoption [12] Company Strategy and Development Direction - The company aims to expand its addressable market by introducing new capabilities to the Digital Forge, which is a top priority for 2022 [18] - The FX20 printer and ULTEM 9085 Filament with Continuous Fiber Reinforcement are expected to drive significant demand in industries such as aerospace, defense, and automotive [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in overcoming supply chain challenges and maintaining revenue expectations for 2022 despite current global pressures [49][50] - The company anticipates full-year 2022 revenues to be between $114 million and $123 million, representing a year-over-year growth of 30% at the midpoint of that range [37] Other Important Information - The company ended the year with approximately 400 employees, nearly doubling its size, and focused on hiring for go-to-market and engineering teams [17] - Management highlighted the importance of maintaining industry-leading gross margins despite ongoing supply chain pressures [27] Q&A Session Summary Question: Can you discuss the challenges impacting gross margin? - Management noted supply chain issues, including extended lead times for mechanical components and increased costs for materials and labor, impacting gross margins by 200 to 300 basis points [45][47] Question: How confident are you in securing parts needed for production? - Management expressed confidence in overcoming supply chain challenges, having secured parts in advance to ensure availability through 2022 [49][50] Question: What is the current status of the FX20 order pipeline? - Management reported over 100 opportunities in the field, with several dozen orders already placed, indicating robust demand for the FX20 [56][60] Question: What are your thoughts on share-based compensation for 2022? - Management indicated that share-based compensation remains a significant part of employee compensation and is not expected to be an outlier in 2022 [61][63] Question: Are there any changes to pricing due to input costs? - Management confirmed minor price adjustments on the industrial series but emphasized sensitivity to customer relationships and long-term profitability [87][97]