Markforged FY 2021 Revenue Grows by 27%, to $91.2 Million

Markforged Holding Corporation reported that its revenues increased 27%, to $91.2 million, in FY 2021, from $71.9 million in 2020. Gross profit grew 26%, to $52.9 million, in 2021 from $41.9 million in 2020 and gross margin was 58% in 2021, consistent with 2020. However net loss from operations also grew during the Markforged FY 2021, to $61.0 million (compared to a net loss from operations of $17.7 million in the year prior). Quarterly (Q4) revenues also grew. The result is even more significant as the company generated almost as much revenue as its competitor Dekstop Metal did after acquiring two large AM companies (and several smaller ones).

“This has been a tremendous growth year for Markforged. We executed on the plan we shared a year ago and beat our targets for 2021, making Markforged one of the fastest organically growing additive manufacturing companies, with industry-leading gross margins,” said Shai Terem, President and CEO of Markforged. “Thanks to the hard work of our team, we exceeded growth targets for both the fourth quarter and full fiscal year. We saw a 27% organic growth rate in 2021, as the Digital Forge continued to solve manufacturing challenges for customers around the world. Our closely integrated hardware, software and materials are designed to allow our customers to overcome ongoing global supply chain constraints by printing industrial-strength parts for critical applications directly at the point-of-need.”

In 2021, the Company continued to expand the addressable market of the Digital Forge by introducing 12 new solutions to the platform in the form of printers, software updates and materials. Most notably, the FX20 with ULTEM 9085 Filament with Continuous Fiber Reinforcement advanced the Company’s position as a leader in point-of-need production in industrial-strength parts. Built to scale distributed global production, the FX20 empowers Markforged customers to move their additive operations into robust production with strong, accurate parts that solve demanding, end-use applications.

Markforged also grew its team, nearly doubling in size with approximately 400 employees to close out 2021, including several key executive hires. The team is sharply focused on developing multiple products simultaneously to accelerate the growth of the Digital Forge’s addressable market.

“Between the release of new, expanded capabilities of the Digital Forge and the material uptick in volume shipment of the FX20 expected in the latter half of this year, we remain confident in our ability to achieve our targets again in 2022,” said Mark Schwartz, Chief Financial Officer.

The company now expects to be able to generate between $114.0 – $123.0 million, representing year-over-year growth of 30% at the midpoint of that range. Factoring in seasonality and FX20 revenue in the second half of the year, Markforged expects that 60% to 65% of revenue will be recognized in the second half of the year. Expectations continue for generating industry-leading gross margins, with full-year non-GAAP gross margin expected to be in the range of 55% – 57%.

Beginning in the first quarter of 2022, Markforged management intends to supplement the reporting of GAAP results with certain non-GAAP results for gross profit, operating profit, and earnings per share, intended to provide broader insight into how business is managed. The company believes this will provide a more meaningful set of data points, for comparison purposes, than prior non-GAAP reporting of adjusted EBITDA.

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Author: Davide Sher