Markforged (MKFG) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $21.7M, down 14.8%-15% year-over-year, with gross margin improving to 50%-51.9% due to operational efficiencies and product mix.

• Net loss for Q2 2024 narrowed to $14.4M from $19.0M; non-GAAP net loss was $10.8M, improved from $12.5M.

• Announced a $25M cost reduction initiative, targeting annual operating expenses of ~$70M by 2025.

• Shipped first PX100 and accelerated FX10 shipments, with new materials and a growing sales pipeline.

• Cash and equivalents, including $19.1M restricted for litigation, were $93.9M at June 30, 2024.

Financial highlights

• Q2 2024 revenue: $21.7M, down 14.8%-15% year-over-year, mainly due to lower system sales amid tough market conditions.

• Gross margin improved to 51.9% (non-GAAP) and 50%-50.2% (GAAP), up from 47%-48.3% year-over-year.

• Operating expenses decreased to $23.3M (non-GAAP) and $27.9M (GAAP), reflecting strong cost controls.

• Net loss for Q2 2024 was $14.4M (GAAP), non-GAAP net loss was $10.8M; net loss per share improved to $(0.07).

• Net cash used in operations for the first six months was $21.9M, a 29% improvement year-over-year.

Outlook and guidance

• FY 2024 revenue expected between $90M and $95M, revised down from $95M–$105M, reflecting macroeconomic headwinds.

• Anticipates low single-digit quarter-over-quarter revenue growth in Q3 and double-digit year-over-year growth in H2, driven by new product sales.

• Non-GAAP gross margin expected at the upper end of 48%-50% guidance.

• Non-GAAP operating loss projected at $42.5M–$47M; non-GAAP loss per share $0.19–$0.22.

• Guidance excludes potential additional costs from ongoing litigation.