MKFG Markforged Holding Corporation

Announcing Cost Restructuring Initiatives

Markforged Holding Corporation (NYSE: MKFG) (the “Company”), the company strengthening manufacturing resiliency by enabling industrial production at the point of need, today announced its financial results for the third quarter and nine months ended September 30, 2023.

Third Quarter 2023 Financial Results Compared To Third Quarter 2022

• Revenue was $20.1 million compared to $25.2 million.
• Gross margin was 45.7% compared to 48.6%.
• Non-GAAP gross margin was 46.9% compared to 49.2%.
• Operating expenses were $59.6 million, inclusive of a non-cash goodwill impairment charge of $29.5 million as a result of the Company’s performance during the third quarter and decline in forecasted revenue in 2023, compared to $35.1 million.
• Non-GAAP operating expenses were $24.9 million compared to $28.5 million.
• Net loss was $51.4 million compared to net loss of $23.0 million.
• Non-GAAP net loss was $13.8 million compared to a loss of $15.1 million.
• Cash, cash equivalents, and short-term investments were $126.0 million as of September 30, 2023 compared to $136.0 million as of June 30, 2023.

Nine Months Ended September 30, 2023 Financial Results Compared To Nine Months Ended September 30, 2022

• Revenue was $69.6 million compared to $71.3 million.
• Gross margin was 47.0% compared to 51.6%.
• Non-GAAP gross margin was 48.2% compared to 52.1%.
• Net cash used in operating activities was $40.0 million compared to $65.3 million.

Reconciliations of the non-GAAP financial measures provided in this press release to their most directly comparable GAAP financial measures are provided in the financial tables included at the end of this press release. An explanation of these measures and how they are calculated is also included under the heading “Non-GAAP Financial Measures.”

“While the medium-to-long-term opportunity for Markforged to help manufacturers reduce costs and strengthen supply chain resiliency remains intact, our third quarter results reflect worsening macroeconomic headwinds in the final weeks of the quarter, which delayed several large deals that we had expected to close,” said Shai Terem, President and CEO of Markforged. “We remain laser focused on profitability. In light of these headwinds, which have persisted into the fourth quarter, we have implemented cost reduction efforts to align our operating expenses to match anticipated near-term demand. With that, the overwhelming excitement surrounding our new product introductions at Formnext 2023 last week is a testament to the transformative impact our offerings are set to make in the manufacturing industry. In particular, the customer enthusiasm surrounding the FX10 is reinforcing our confidence that Markforged is well-positioned for strong growth as macroeconomic uncertainty clears.”

Business Updates

• Accelerated Macroeconomic Uncertainty Impacts Near-Term Demand. In line with Markforged’s preliminary announced results, revenue for the third quarter was $20.1 million. Stronger than expected macroeconomic headwinds impacted demand for the Digital Forge and delayed orders toward the end of the quarter. These challenges have continued into the fourth quarter. The persistent high cost of capital and uncertainty in the macro environment is restricting capital investment in the short term, more than previously anticipated.

• Accelerating Cost Reduction Efforts. In response to these continuing economic headwinds, Markforged has completed a restructuring that coupled with other cost reduction efforts is expected to deliver operating costs savings of approximately $9 - $12 million in 2024, mostly driven by an approximately ~10% headcount reduction.

• Digital Source Launch. In the third quarter, Markforged achieved another critical milestone toward the future of distributed manufacturing with the launch of Digital Source. Digital Source is an on-demand parts platform for the licensing and 3D-printing of manufacturer-certified parts when and where they are needed, without the cost or hassle of physical inventory. While the Company’s focus in 2024 is building out the Digital Source platform, the Company believes the opportunity for high margin revenue streams will be a growth catalyst in the years to come as Markforged is already seeing early engagement from customers.

• New Innovations Expand Addressable Market. Continuing Markforged’s track record of innovation, the Company introduced two new products last week at Formnext. The first, the FX10, is Markforged’s next generation composite 3D printer for the factory floor. Building on the precision and reliability of the X7, but nearly twice as large and twice as fast as its predecessor, the FX10 is built to supercharge manufacturing productivity and profitability by boosting production yields while decreasing operating costs. The company started building a backlog of orders for the FX10 into 2024. Markforged also introduced Vega, an ultra high-performance, carbon fiber filled PEKK material for 3D printing critical aerospace parts. These innovations complement the Digital Forge, and further increase the Company’s addressable market by helping customers solve more applications on the factory floor.

2023 Financial Outlook

The uncertain macro environment and relatively high cost of capital have weighed on Markforged’s customers’ purchasing behavior more than expected. Therefore, Markforged is maintaining its revised revenue guidance the Company shared with preliminary results of $90.0 - $95.0 million.

Markforged expects Non-GAAP gross margins to be within the range of 47% to 48%, which is within the range of the Company’s previous guidance.

Markforged is committed to pursuing profitable growth over time. As such, Markforged has recently announced a company-wide reorganization that coupled with additional cost reduction efforts is expected to generate annualized opex savings of $9 to $12 million in 2024. Including a one time restructuring costs, estimated at approximately $0.9 million, operating loss for the year is expected to be within the range $59 - $61 million.

Non-GAAP EPS loss per share is expected to be between $0.26 - $0.28 including restructuring costs.

Conference Call and Webcast Information

The Company will host a webcast and conference call at 5:00 p.m. ET today, Monday, November 13, to discuss the results.

Participants may access the earnings press release, related materials and the audio webcast by visiting the investors section of the Company's website at https://investors.markforged.com/

To participate in the call, please dial 1-877-407-9039 or 1-201-689-8470 ten minutes before the scheduled start.

For those unable to listen to the live conference call, a replay will be available on the Company's website and telephonically until Monday, November 27, 2023, 11:59 PM ET by dialing 1-844-512-2921 or 1-412-317-6671, passcode 13737743.

About Markforged

Markforged (NYSE:MKFG) is enabling more resilient and flexible supply chains by bringing industrial 3D printing right to the factory floor. Our additive manufacturing platform The Digital Forge allows manufacturers to create strong, accurate parts in both metal and advanced composites. With over 10,000 customers in 70+ countries, we’re bringing on-demand industrial production to the point of need. We are headquartered in Waltham, Mass where we design the hardware, software and advanced materials that makes The Digital Forge reliable and easy to use. To learn more, visit www.markforged.com.

Non-GAAP Financial Measures

In addition to our financial results determined in accordance with U.S. generally accepted accounting principles (“GAAP”), we believe that non-GAAP gross margin, non-GAAP operating profit (loss), and non-GAAP earnings per share, each a non-GAAP financial measure, is useful in evaluating the performance of our business.

These non-GAAP measures have limitations as an analytical tool. We do not, nor do we suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors should also note that the non-GAAP financial measures we use may not be the same non-GAAP financial measures, and may not be calculated in the same manner, as that of other companies, including other companies in our industry.

We recommend that you review the reconciliation of these non-GAAP measures to the most directly comparable GAAP financial measures provided in the financial statement tables included below in this press release, and that you not rely on any single financial measure to evaluate our business. Additionally, to the extent that forward-looking non-GAAP financial measures are provided, they are presented on a non-GAAP basis without reconciliations of such forward-looking non-GAAP measures due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations.

Investors should note that beginning with the second quarter of 2022, we have modified the presentation of “non-recurring costs” included in non-GAAP gross margin, non-GAAP operating profit (loss), non-GAAP net profit (loss) and non-GAAP earnings per share metrics to include certain non-recurring litigation costs. Beginning with the fourth quarter of 2022, we modified the presentation to remove the impact of the amortization of our intangible assets. We use these metrics to provide an understanding of the results of our core business performance and believe these litigation and amortization costs are not indicative of the performance of our core business’ operations. This change increases “non-recurring costs” by $0.6 million, $1.0 million, and $0.8 million in the first through third quarters of 2022, respectively. The exclusion of amortization impacts non-GAAP net profit (loss) by $5.0 thousand and $37.0 thousand in the second through third quarters of 2022, respectively. To conform to the current period’s presentation, we have included non-recurring litigation costs as “non-recurring costs” when presenting the foregoing non-GAAP figures for the year to date period.

The following are the non-GAAP financial measures referenced in this press release and presented in the tables below:

• Non-GAAP gross margin is defined as GAAP gross profit (loss), less stock-based compensation expense, amortization, and certain non-recurring costs, divided by revenue.
• Non-GAAP operating profit (loss) is defined as GAAP operating profit (loss) less stock-based compensation expense, amortization, and certain non-recurring costs.
• Non-GAAP net profit (loss) is defined as GAAP net profit (loss) less stock-based compensation expense, net change in fair value of warrant liabilities and contingent earnout liabilities, amortization, and certain non-recurring costs.
• Non-GAAP earnings per share is defined as GAAP net profit (loss) less stock-based compensation expense, net change in fair value of warrant liabilities and contingent earnout liabilities, amortization, and certain non-recurring costs, divided by diluted weighted average shares outstanding for the period.

Special Note Regarding Forward-Looking Statements

This press release contains forward-looking statements that are based on beliefs and assumptions and on information currently available. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “strategy,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing,” “opportunity” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. Although Markforged believes that it has a reasonable basis for each forward-looking statement contained in this press release, Markforged cautions you that these statements are based on a combination of facts and factors currently known by it and its projections of the future, about which it cannot be certain. Forward-looking statements in this press release include, but are not limited to, future growth rate, revenue, gross profit margin and earnings guidance; the impact of infrastructure investments; the impact of the company-wide restructuring; timing for achieving profitability; our ability to fulfill orders for our products in a timely fashion in the future; expected growth of the size of and opportunity to increase our addressable market; the timing of launches and the rate and extent of adoption of our products, including, but not limited to, our most recently introduced products; market trends in the manufacturing industry; the duration and impact of macroeconomic factors; and the benefits to consumers, functionality and applications of Markforged’s products. Markforged cannot assure you that the forward-looking statements in this press release will prove to be accurate. These forward looking statements are subject to a number of risks and uncertainties, including, among others, general economic, political and business conditions; the ability of Markforged to maintain its listing on the New York Stock Exchange; the effect of COVID-19 on Markforged’s business and financial results; the outcome of any legal proceedings against Markforged; and those factors discussed under the header “Risk Factors” in Markforged’s most recent periodic and other filings with the SEC. Furthermore, if the forward-looking statements prove to be inaccurate, the inaccuracy may be material. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by us or any other person that Markforged will achieve its objectives and plans in any specified time frame, or at all. The forward-looking statements in this press release represent Markforged’s views as of the date of this press release. Markforged anticipates that subsequent events and developments will cause its views to change. However, while Markforged may elect to update these forward-looking statements at some point in the future, Markforged has no current intention of doing so except to the extent required by applicable law. You should, therefore, not rely on these forward-looking statements as representing Markforged’s views as of any date subsequent to the date of this press release.

MARKFORGED HOLDING CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS As of September 30, 2023 and December 31, 2022 (In thousands, except share data and par value amounts) (Unaudited)   September 30,2023 December 31,2022 Assets Current assets Cash and cash equivalents

$

98,166

 

$

124,242

 

Short-term investments

 

27,800

 

 

43,690

 

Accounts receivable, net of allowance for expected credit losses ($483 and $1,559, respectively)

 

22,298

 

 

29,294

 

Inventory

 

28,720

 

 

26,409

 

Prepaid expenses

 

2,172

 

 

2,847

 

Other current assets

 

3,296

 

 

3,334

 

Total current assets

 

182,452

 

 

229,816

 

Property and equipment, net

 

17,210

 

 

18,298

 

Goodwill

 

—

 

 

31,116

 

Intangible assets

 

16,182

 

 

17,626

 

Right-of-use assets

 

38,080

 

 

45,955

 

Other assets

 

3,520

 

 

3,130

 

Total assets

$

257,444

 

$

345,941

 

Liabilities and Stockholders’ Equity Current liabilities Accounts payable

$

11,612

 

$

14,425

 

Accrued expenses

 

8,352

 

 

9,663

 

Deferred revenue

 

8,423

 

 

8,854

 

Operating lease liabilities

 

7,592

 

 

8,022

 

Other current liabilities

 

44

 

 

—

 

Total current liabilities

 

36,023

 

 

40,964

 

Long-term deferred revenue

 

5,689

 

 

5,358

 

Contingent earnout liability

 

4,924

 

 

2,415

 

Long-term operating lease liabilities

 

37,060

 

 

40,608

 

Other liabilities

 

3,104

 

 

4,042

 

Total liabilities

 

86,800

 

 

93,387

 

Commitments and contingencies Stockholders’ equity Common stock, $0.0001 par value; 1,000,000,000 shares authorized at September 30, 2023 and December 31, 2022; 197,605,658 and 194,560,946 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively

 

19

 

 

19

 

Additional paid-in capital

 

362,604

 

 

352,564

 

Accumulated deficit

 

(190,466

)

 

(101,097

)

Accumulated other comprehensive (loss) income

 

(1,513

)

 

1,068

 

Total stockholders’ equity

 

170,644

 

 

252,554

 

Total liabilities and stockholders’ equity

$

257,444

 

$

345,941

 

  MARKFORGED HOLDING CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS For the Three and Nine Months Ended September 30, 2023 and 2022 (In thousands, except share data and per share data) (Unaudited)   Three Months EndedSeptember 30, Nine Months EndedSeptember 30,

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Revenue

$

20,075

 

$

25,208

 

$

69,614

 

$

71,294

 

Cost of revenue

 

10,907

 

 

12,959

 

 

36,891

 

 

34,514

 

Gross profit

 

9,168

 

 

12,249

 

 

32,723

 

 

36,780

 

Operating expenses Sales and marketing

 

8,194

 

 

11,783

 

 

28,436

 

 

35,104

 

Research and development

 

9,724

 

 

10,421

 

 

30,390

 

 

31,375

 

General and administrative

 

12,202

 

 

12,873

 

 

36,450

 

 

38,094

 

Goodwill impairment

 

29,467

 

 

—

 

 

29,467

 

 

—

 

Total operating expenses

 

59,587

 

 

35,077

 

 

124,743

 

 

104,573

 

Loss from operations

 

(50,419

)

 

(22,828

)

 

(92,020

)

 

(67,793

)

Change in fair value of derivative liabilities

 

(94

)

 

(448

)

 

220

 

 

1,221

 

Change in fair value of contingent earnout liability

 

(2,502

)

 

(656

)

 

(2,509

)

 

50,982

 

Other expense, net

 

(55

)

 

(39

)

 

(277

)

 

(429

)

Interest expense

 

(127

)

 

(2

)

 

(243

)

 

(11

)

Interest income

 

1,602

 

 

1,006

 

 

4,870

 

 

1,380

 

Loss before income taxes

 

(51,595

)

 

(22,967

)

 

(89,959

)

 

(14,650

)

Income tax (benefit) expense

 

(233

)

 

3

 

 

(590

)

 

6

 

Net loss

$

(51,362

)

$

(22,970

)

$

(89,369

)

$

(14,656

)

Weighted average shares outstanding - basic

 

197,410,137

 

 

189,766,945

 

 

196,391,315

 

 

188,225,543

 

Weighted average shares outstanding - diluted

 

197,410,137

 

 

189,766,945

 

 

196,391,315

 

 

188,255,543

 

Net loss per share - basic

$

(0.26

)

$

(0.12

)

$

(0.46

)

$

(0.08

)

Net loss per share - diluted

 

(0.26

)

 

(0.12

)

 

(0.46

)

 

(0.08

)

MARKFORGED HOLDING CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) For the Three and Nine Months Ended September 30, 2023 and 2022 (In thousands) (Unaudited)   Three Months EndedSeptember 30, Nine Months EndedSeptember 30,

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Net loss

$

(51,362

)

$

(22,970

)

$

(89,369

)

$

(14,656

)

Other comprehensive loss, net of taxes: Unrealized loss on available-for-sale marketable securities, net

 

(17

)

 

—

 

 

(42

)

 

—

 

Foreign currency translation adjustment

 

(993

)

 

(1,612

)

 

(2,539

)

 

(1,612

)

Total comprehensive loss

$

(52,372

)

$

(24,582

)

$

(91,950

)

$

(16,268

)

  MARKFORGED HOLDING CORPORATION RECONCILIATION OF GAAP TO NON-GAAP MEASURES For the Three and Nine Months Ended September 30, 2023 and 2022 (In thousands) (Unaudited)   ​ Three Months EndedSeptember 30, ​ Nine Months EndedSeptember 30, ​

 

2023

 

 

2022

 

​

 

2023

 

 

2022

 

Net loss ​

$

(51,362

)

$

(22,970

)

​

$

(89,369

)

$

(14,656

)

Stock compensation expense ​

 

4,112

 

 

5,286

 

​

 

10,158

 

 

15,620

 

Change in fair value of warrant liabilities

 

94

 

 

448

 

 

(220

)

 

(1,221

)

Change in fair value of contingent earnout liability

 

2,502

 

 

656

 

 

2,509

 

 

(50,982

)

Amortization

 

249

 

 

37

 

 

780

 

 

42

 

Goodwill impairment

 

29,467

 

 

—

 

 

29,467

 

 

—

 

Non-recurring costs1

 

1,147

 

 

1,436

 

​

 

7,039

 

 

4,420

 

Non-GAAP net loss 2 ​

$

(13,791

)

$

(15,107

)

​

$

(39,636

)

$

(46,777

)

        Three Months EndedSeptember 30, ​ Nine Months EndedSeptember 30,

 

2023

 

2022

​

 

2023

 

2022

Cost of revenue

$

253

$

156

$

861

$

378

  Sales and marketing

 

483

 

928

 

1,543

 

2,551

Research and development

 

1,195

 

1,326

 

3,524

 

4,317

General and administrative

 

3,577

 

4,349

 

12,049

 

12,836

Goodwill impairment

 

29,467

 

—

 

29,467

 

—

Total operating expense

 

34,722

 

6,603

 

46,583

 

19,704

Total adjustments

$

34,975

$

6,759

$

47,444

$

20,082

  MARKFORGED HOLDING CORPORATION DISAGGREGATED REVENUE BY NATURE OF PRODUCTS AND SERVICES (In thousands) (Unaudited)

Three Months Ended September 30,

 

Nine Months Ended September 30,

(in thousands)

 

2023

 

2022

 

2023

 

2022

Hardware

$

12,154

$

17,571

$

43,855

$

48,098

Consumables

 

5,162

 

5,568

 

18,099

 

16,913

Services

 

2,759

 

2,069

 

7,660

 

6,283

Total Revenue

$

20,075

$

25,208

$

69,614

$

71,294

        MARKFORGED HOLDING CORPORATION DISAGGREGATED REVENUE BY GEOGRAPHIC LOCATION (In thousands) (Unaudited) Three Months EndedSeptember 30, Nine Months EndedSeptember 30, (in thousands)

 

2023

 

2022

 

2023

 

2022

Americas

$

10,047

$

12,591

$

32,487

$

34,150

EMEA

 

5,713

 

5,353

 

21,823

 

19,618

APAC

 

4,315

 

7,264

 

15,304

 

17,526

Total Revenue

$

20,075

$

25,208

$

69,614

$

71,294

  MARKFORGED HOLDING CORPORATION RECONCILIATION OF GAAP TO NON-GAAP MEASURES For the Three and Nine Months Ended September 30, 2023 and 2022 (In thousands) (Unaudited)   ​ Three Months EndedSeptember 30, ​ Nine Months EndedSeptember 30, ​

 

2023

 

 

2022

 

​

 

2023

 

 

2022

 

Net loss ​

$

(51,362

)

$

(22,970

)

​

$

(89,369

)

$

(14,656

)

Stock compensation expense ​

 

4,112

 

 

5,286

 

​

 

10,158

 

 

15,620

 

Change in fair value of warrant liabilities

 

94

 

 

448

 

 

(220

)

 

(1,221

)

Change in fair value of contingent earnout liability

 

2,502

 

 

656

 

 

2,509

 

 

(50,982

)

Amortization

 

249

 

 

37

 

 

780

 

 

42

 

Goodwill impairment

 

29,467

 

 

—

 

 

29,467

 

 

—

 

Non-recurring costs1

 

1,147

 

 

1,436

 

 

7,039

 

 

4,420

 

Non-GAAP net loss ​

$

(13,791

)

$

(15,107

)

​

$

(39,636

)

$

(46,777

)

  1Non-recurring costs incurred during the three months ended September 30, 2023 relate to litigation expenses of $1.1 million. Non-recurring costs incurred during the three months ended September 30, 2022 relate to litigation expenses of $0.8 million and transaction costs of $0.6 million. Non-recurring costs incurred during the nine months ended September 30, 2023 relate to long-lived asset impairment of $4.0 million and litigation expenses of $3.0 million. Non-recurring costs incurred during the nine months ended September 30, 2022 relate to litigation expenses of $2.5 million and transaction costs of $1.9 million.   ​ Three Months EndedSeptember 30, ​ Nine Months EndedSeptember 30, Non-GAAP Cost of Revenue ​

 

2023

 

 

2022

 

​

 

2023

 

 

2022

 

Cost of revenue ​

$

10,907

 

$

12,959

 

​

$

36,891

 

$

34,514

 

Stock compensation expense ​

 

39

 

 

130

 

​

 

201

 

 

347

 

Amortization

 

214

 

 

26

 

 

660

 

 

31

 

Non-GAAP Cost of Revenue

 

10,654

 

 

12,803

 

 

36,030

 

 

34,136

 

  ​ Three Months EndedSeptember 30, ​ Nine Months EndedSeptember 30, Non-GAAP Gross Profit ​

 

2023

 

 

2022

 

​

 

2023

 

 

2022

 

Gross profit ​

$

9,168

 

$

12,249

 

​

$

32,723

 

$

36,780

 

Stock compensation expense ​

 

39

 

 

130

 

​

 

201

 

 

347

 

Amortization

 

214

 

 

26

 

 

660

 

 

31

 

Non-GAAP gross profit

 

9,421

 

 

12,405

 

 

33,584

 

 

37,158

 

  ​ Three Months EndedSeptember 30, ​ Nine Months EndedSeptember 30, Non-GAAP Sales and Marketing Expenses ​

 

2023

 

 

2022

 

​

 

2023

 

 

2022

 

Sales and marketing expenses ​

$

8,194

 

$

11,783

 

​

$

28,436

 

$

35,104

 

Stock compensation expense ​

 

448

 

 

917

 

​

 

1,423

 

 

2,540

 

Amortization

 

35

 

 

11

 

 

120

 

 

11

 

Non-GAAP sales and marketing expenses

 

7,711

 

 

10,855

 

 

26,893

 

 

32,553

 

  ​ Three Months EndedSeptember 30, ​ Nine Months EndedSeptember 30, Non-GAAP Research and Development Expenses ​

 

2023

 

 

2022

 

​

 

2023

 

 

2022

 

Research and development expenses ​

$

9,724

 

$

10,421

 

​

$

30,390

 

$

31,375

 

Stock compensation expense ​

 

1,195

 

 

1,326

 

​

 

3,524

 

 

4,317

 

Non-GAAP research and development expenses

 

8,529

 

 

9,095

 

 

26,866

 

 

27,058

 

  ​ Three Months EndedSeptember 30, ​ Nine Months EndedSeptember 30, Non-GAAP General and Administrative Expenses ​

 

2023

 

 

2022

 

​

 

2023

 

 

2022

 

General and administrative expenses ​

$

12,202

 

$

12,873

 

​

$

36,450

 

$

38,094

 

Stock compensation expense ​

 

2,430

 

 

2,913

 

​

 

5,010

 

 

8,416

 

Non-recurring costs1

 

1,147

 

 

1,436

 

 

7,039

 

 

4,420

 

Non-GAAP general and administrative expenses

 

8,625

 

 

8,524

 

 

24,401

 

 

25,258

 

  1Non-recurring costs incurred during the three months ended September 30, 2023 relate to litigation expenses of $1.1 million. Non-recurring costs incurred during the three months ended September 30, 2022 relate to litigation expenses of $0.8 million and transaction costs of $0.6 million. Non-recurring costs incurred during the nine months ended September 30, 2023 relate to long-lived asset impairment of $4.0 million and litigation expenses of $3.0 million. Non-recurring costs incurred during the nine months ended September 30, 2022 relate to litigation expenses of $2.5 million and transaction costs of $1.9 million.   ​ Three Months EndedSeptember 30, ​ Nine Months EndedSeptember 30, Non-GAAP Operating Loss ​

 

2023

 

 

2022

 

​

 

2023

 

 

2022

 

Operating loss ​

$

(50,419

)

$

(22,828

)

​

$

(92,020

)

$

(67,793

)

Stock compensation expense ​

 

4,112

 

 

5,286

 

​

 

10,158

 

 

15,620

 

Amortization

 

249

 

 

37

 

 

780

 

 

42

 

Goodwill impairment

 

29,467

 

 

—

 

 

29,467

 

 

—

 

Non-recurring costs1

 

1,147

 

 

1,436

 

 

7,039

 

 

4,420

 

Non-GAAP operating loss

 

(15,444

)

 

(16,069

)

 

(44,576

)

 

(47,711

)

  1Non-recurring costs incurred during the three months ended September 30, 2023 relate to litigation expenses of $1.1 million. Non-recurring costs incurred during the three months ended September 30, 2022 relate to litigation expenses of $0.8 million and transaction costs of $0.6 million. Non-recurring costs incurred during the nine months ended September 30, 2023 relate to long-lived asset impairment of $4.0 million and litigation expenses of $3.0 million. Non-recurring costs incurred during the nine months ended September 30, 2022 relate to litigation expenses of $2.5 million and transaction costs of $1.9 million.  

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20231113508146/en/

Media Sam Manning, Public Relations Manager sam.manning@markforged.com Investors Austin Bohlig, Director of Investor Relations investors@markforged.com