Markforged announces second quarter 2024 financial results
Markforged Holding Corporation, headquartered in Watertown, Massachusetts, USA, has announced its financial results for the second quarter ended June 30, 2024. The company announced a revenue of $21.7 million compared to $25.4 million in the second quarter of 2023, and posted a net loss of $14.4 million compared to net loss of $19.0 million in Q2 2023. Non-GAAP net loss was $10.8 million compared to a loss of $12.5 million
“We demonstrated strong execution in Q2 while effectively navigating the persistent macroeconomic headwinds,” stated Shai Terem, President and CEO of Markforged. “During the quarter we shipped the first PX100 metal Binder Jetting system, the latest in a series of innovations Markforged is bringing to market. FX10 shipments have also accelerated in the 2nd quarter. The positive feedback and growing pipeline underscore the strength of our recent innovations, and positions the company to return to growth in the second half of year. The continued rollout of new products, combined with our cost realignment initiatives, keeps us on a path to achieve sustainable growth.”
Gross margin was 50.2% compared to 47.0% in the second quarter of the previous year. Non-GAAP gross margin was 51.9% compared to 48.3%. Second quarter operating expenses were $27.9 million, down from $32.1 million the year prior, whereas non-GAAP operating expenses were $23.3 million compared to $26.6 million.
Cash and cash equivalents including restricted cash were $93.9 million as of June 30, 2024, compared to $109.4 million as of March 31, 2024. The balance at the end of June 30, 2024, includes the funding of a $19.1 million surety bond recorded as restricted cash on the company’s balance sheet. This surety bond includes the $17.3 million verdict awarded in the Continuous Composite lawsuit in April 2024, plus $1.8 million of estimated interest on the judgment for the prejudgment period and duration of the appeal process.
Given the macroeconomic challenges and Markforged’s commitment to achieving sustainable growth, the company announced a $25 million cost reduction initiative that aims to reduce operating expenses to a yearly run rate of approximately $70 million. Markforged expects that most of these cost reductions will be completed in the second half of this year.
The company said it remains on plan to ship additional PX100 metal Binder Jetting machines in the second half of the year. It reportedly enters Q3 with a robust pipeline and intends to release additional capabilities prior to the IMTS conference in Q3 to drive growth in the second half of the year.
Markforged said that it anticipates fiscal year 2024 revenues to be between $90 and $95 million, compared to its prior expectation of between $95 and $105 million. This reflects more persistent macroeconomic headwinds than previously anticipated. The company expects to see year-over-year revenue growth return in the second half of the year, including low-single-digit quarter-over-quarter growth in Q3, underpinned by its new products, particularly the FX10.
