Markforged reports solid third quarter despite challenges
Markforged, Watertown, Massachusetts, USA, has announced its results for the third quarter ended September 30, 2022. Revenue increased by 5%, to $25.2 million in the third quarter of 2022, up from $24 million in Q3, while the net loss was $23 million in the same quarter compared to net profit of $21.7 million in the third quarter of 2021.
“Despite a challenging macro environment, we delivered another solid quarter as demand for The Digital Forge continues to grow globally. Ongoing supply chain challenges continue to be a catalyst for demand for our Digital Forge platform which brings industrial production to the point of need,” said Shai Terem, president and CEO of Markforged. “Excitement for our newest production-grade printer, the FX20, has been tremendous, and we are pleased to have expanded our addressable market by adding high-volume metal application capabilities to our technology offerings with the closing of the Digital Metal acquisition.
Gross margin was 48.6% in Q3 2022, compared to 57% year on year; non-GAAP gross margin was 49.1% (Q3 2021: 57.6%). Non-GAAP net loss was $15.2 million in the third quarter of 2022, compared to a loss of $11.7 million in the third quarter of 2021. Cash and cash equivalents were $181.8 million as of September 30, 2022.
Orders for Markforged’s newest production-grade Additive Manufacturing machine, the FX20, reportedly exceed the company’s expectations. However, as supply chain challenges continued globally, Markforged was not able to meet the demand for the FX20 and the cost of production of the FX20 exceeded estimates.
In the Americas and EMEA, inflation and geopolitical pressures continued to impact the company’s business. However, the APAC region met the company’s expectations for significant growth in the second half of 2022. Revenue in APAC grew 51% during the nine months ended September 30, 2022, compared to the same period in 2021, and 82% during the three months ended September 30, 2022, compared to the same period in 2021, reportedly led by a demand for mature products and accelerated demand for the FX20.
Markforged is updating its full-year 2022 financial guidance to reflect its updated fiscal year outlook, which considers the current market conditions. The company anticipates revenue for the fourth quarter to be in the range of $28-32 million which, at the midpoint, would result in 2022 full-year revenue near the lower end of the range the company provided previously.
Terem concluded, “While challenges including inflation, geopolitical tensions and supply chain disruption are putting near-term pressure on our margins, we are confident in our long term strong fundamentals, which are supported by our growing pipeline and market opportunity.”
