Like most AM companies, Markforged FY2022 revenue also grew, by 11%, reaching 101 million. The result is even more significant as most Markforged’s growth is organic. The company’s Q4 2022 revenues also increased by 11%, to $29.7 million, from $26.6 million in the fourth quarter of 2021.
Among other financial Highlights for the Markforged FY 2022 period gross profit decreased by 4%, to $50.7 million, in 2022 from $52.9 million in 2021; gross margin was 50% in 2022, a decline from 58% in 2021.
Overall net loss was $25.4 million in 2022, compared to a net profit of $3.9 million in the year prior.
“We ended the year strong, with record quarterly revenues, as demand for The Digital Forge continued to grow worldwide despite a challenging operating environment. Supply chain disruption remains a key catalyst for growth, as manufacturers shorten their supply chains through point-of-need industrial production,” said Shai Terem, President and CEO of Markforged. “We made pivotal progress in 2022 on our strategy to achieve profitable growth. We materially expanded our addressable market organically, through the introduction of the FX20, and inorganically through our successful acquisitions of Teton Simulation and Digital Metal, and we are confident we will see material growth as a result in the coming years. And each step along the way we continued to develop operational efficiencies and implement cost controls to keep us on our path to profitability.”
We ended the year strong, with record quarterly revenues, as demand for The Digital Forge continued to grow worldwide despite a challenging operating environment. Supply chain disruption remains a key catalyst for growth, as manufacturers shorten their supply chains through point of need industrial productionShai Terem, President and CEO of Markforged
Macroeconomic uncertainty led manufacturers to delay purchase decisions. However, Markforged still executed on its growth strategy in both the EMEA and APAC regions in the fourth quarter of 2022, with revenues growing 36% in EMEA and 20% in APAC year-over-year.
In 2022 Markforged began commercializing the FX20, its largest solution for manufacturers requiring parts of industrial strength and high-temperature resistance. Demand for the FX20 continues to exceed the Company’s expectations. In its first year of general availability, Markforged received multi-system orders for the FX20 from multiple customers.
Markforged successfully executed its M&A strategy in 2022, acquiring Teton Simulation and Digital Metal, whose products are expected to expand the Company’s addressable market opportunity in 2023 and beyond. In November 2022, Markforged integrated Teton’s technology into The Digital Forge, through a feature known as Simulation, and rolled out a free beta trial to all of its customers. The response from customers has been positive with thousands of trial registrations to date. The Company expects to offer Simulation as a component of a tiered software-as-a-service subscription offering that it plans to launch this year. The newest system from Digital Metal, the PX100, doubles the speed and build size from its previous model, driving higher volume and lower cost per part in the production of end-use metal parts.
Markforged also met its operating cost targets in the fourth quarter of 2022 and, since the second quarter of 2022, removed nearly $20 million from its cost structure, after giving effect to the Teton Simulation and Digital Metal acquisitions. Key infrastructure investments the Company has made over the past 18 months have begun to yield financial and operational leverage. The Company expects this effect to become even more apparent in 2023 as the Company expects a decline in cash burn, on the path toward profitability.
The company now anticipates full-year 2023 revenues to be within the range of $101.0 million – $110.0 million. This guidance assumes a continuation of the existing global economic uncertainties and challenges but does not assume a deep recession in 2023. Markforged expects to continue to generate strong gross margins, with full-year non-GAAP gross margins expected to be in the range of 47% – 49%. Finally, Markforged expects operating expenses to decline as a percentage of revenues, including the impact of the two acquisitions completed in 2022, resulting in a non-GAAP operating loss in the range of $55.0 million – $58.0 million for the year.