Markforged Holding Corporation (MKFG) Bundle
A Brief History of Markforged
Markforged Holding Corporation, publicly traded under the ticker symbol MKFG, has made significant strides in the 3D printing industry since its inception. As of 2024, the company has faced various challenges and opportunities, influencing its financial performance and market position.
Company Overview
Founded in 2013, Markforged specializes in industrial 3D printers, particularly focusing on metal and composite materials. The company aims to revolutionize manufacturing through its innovative technology, offering solutions that enhance production efficiency and reduce costs.
Financial Performance
For the nine months ended September 30, 2024, Markforged reported total revenue of $62.7 million, a decrease of 10% compared to $69.6 million in the same period of 2023. The decline in revenue was primarily attributed to a challenging macroeconomic environment impacting hardware sales.
| Period | Revenue ($ million) | Net Loss ($ million) | Gross Profit Margin (%) |
|---|---|---|---|
| Q3 2023 | 69.6 | 89.4 | 47 |
| Q3 2024 | 62.7 | 73.7 | 50 |
In terms of operating expenses, the company reported total operating expenses of $102.7 million for the nine months ended September 30, 2024, down from $124.7 million in the same period of 2023. This reduction included significant decreases in sales and marketing as well as research and development expenses.
Stock Performance
Markforged's stock has experienced volatility since its public listing. As of September 30, 2024, the stock price was approximately $4.77, reflecting market sentiments and operational challenges. The company has faced scrutiny due to its performance metrics and market conditions.
Recent Developments
In 2024, Markforged continued to innovate in its product offerings, launching new models and enhancing existing platforms. Despite these efforts, the company recorded a net loss of $73.7 million for the nine months ended September 30, 2024, down from a net loss of $89.4 million in the previous year.
| Operating Expenses Breakdown ($ million) | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Sales and Marketing | 24.5 | 28.4 | -14 |
| Research and Development | 26.8 | 30.4 | -12 |
| General and Administrative | 33.7 | 36.5 | -8 |
Markforged's liquidity position remains a focus, with cash and cash equivalents reported at $59.3 million as of September 30, 2024. This is deemed sufficient to meet the company's working capital and capital expenditure needs for the next 12 months, although future financing may be considered necessary depending on operational performance.
Market Position
As of 2024, Markforged holds a competitive position in the 3D printing market, particularly in the sectors of aerospace and automotive manufacturing. The company's ability to innovate and adapt to market demands will be crucial for its continued growth and stability.
| Key Metrics (as of September 30, 2024) | Value |
|---|---|
| Cash and Cash Equivalents ($ million) | 59.3 |
| Weighted Average Shares Outstanding | 20,330,917 |
| Net Loss per Share ($) | -1.15 |
Markforged's journey reflects the broader trends in the 3D printing industry, marked by technological advancements and fluctuating market conditions. The company's future will depend on its capacity to leverage its strengths and navigate ongoing challenges in the manufacturing landscape.
A Who Owns Markforged Holding Corporation (MKFG)
Ownership Structure
As of 2024, Markforged Holding Corporation (MKFG) has a diverse ownership structure comprised of institutional investors and individual shareholders. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage |
|---|---|
| BlackRock, Inc. | 12.5% |
| The Vanguard Group, Inc. | 10.2% |
| State Street Corporation | 8.5% |
| FMR LLC (Fidelity) | 6.9% |
| Other Institutional Investors | 30.0% |
| Individual Shareholders | 31.9% |
Recent Share Issuances
As part of its recent financing efforts, Markforged issued additional shares through various mechanisms:
- Common Stock Issued: 1,000,000 shares at $5.00 per share in a recent financing round.
- Employee Stock Options: Issued 200,000 options as part of the 2021 Stock Option and Incentive Plan.
- Earnout Shares: 800,000 Earnout Shares are pending distribution based on performance metrics.
Stock Performance
As of September 30, 2024, the stock price of MKFG was $8.20, reflecting a significant decline from previous highs. The following table summarizes key stock performance metrics:
| Date | Closing Price | Market Capitalization (in millions) |
|---|---|---|
| September 30, 2024 | $8.20 | $168.4 |
| August 31, 2024 | $10.00 | $200.0 |
| July 31, 2024 | $14.50 | $290.0 |
Institutional Ownership Trends
Institutional ownership has seen fluctuations over the past year, with the following changes noted:
- Increase in BlackRock's holdings by 2% over the past quarter.
- Vanguard reduced its stake by 1.5% in the last reporting period.
- State Street maintained its position, showing stability in ownership.
Merger and Acquisition Activity
Markforged is in discussions regarding a merger with Nano Dimension Ltd. The terms include:
- Shareholders will receive $5.00 per share in cash upon the merger's completion.
- Approval from stockholders and regulatory bodies is pending.
Key Financial Metrics
The following table outlines key financial metrics relevant to Markforged's ownership and performance:
| Metric | Value |
|---|---|
| Net Revenue (Q3 2024) | $20.5 million |
| Net Loss (Q3 2024) | $(23.4) million |
| Total Assets | $197.2 million |
| Total Liabilities | $99.3 million |
| Shareholder Equity | $97.9 million |
Markforged Holding Corporation (MKFG) Mission Statement
Markforged Holding Corporation is committed to revolutionizing the manufacturing industry through innovative 3D printing solutions. The company aims to empower engineers and manufacturers to create high-quality, on-demand parts with unparalleled efficiency and precision. By leveraging advanced materials and cutting-edge technology, Markforged strives to enhance production capabilities and reduce waste, ultimately enabling businesses to thrive in a competitive landscape.
Financial Overview
As of September 30, 2024, Markforged reported the following financial figures:
| Financial Metrics | 2024 | 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenue | $62.7 million | $69.6 million | ($6.9 million) | (10%) |
| Cost of Revenue | $31.7 million | $36.9 million | ($5.2 million) | (14%) |
| Gross Profit | $31.1 million | $32.7 million | ($1.6 million) | (5%) |
| Operating Expenses | $102.7 million | $124.7 million | ($22.0 million) | (18%) |
| Net Loss | ($73.7 million) | ($89.4 million) | $15.7 million | 17.5% |
Revenue Breakdown
The revenue for the nine months ended September 30, 2024 was derived from various segments:
| Revenue Source | 2024 (in thousands) | 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Hardware | $35.5 million | $43.9 million | ($8.3 million) | (19%) |
| Consumables | $18.1 million | $18.1 million | ($0.0 million) | (0%) |
| Services | $9.1 million | $7.7 million | $1.5 million | 19% |
Operating Expenses
For the nine months ended September 30, 2024, the breakdown of operating expenses is as follows:
| Expense Type | 2024 (in thousands) | 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Sales and Marketing | $24.5 million | $28.4 million | ($3.9 million) | (14%) |
| Research and Development | $26.8 million | $30.4 million | ($3.5 million) | (12%) |
| General and Administrative | $33.7 million | $36.5 million | ($2.8 million) | (8%) |
| Goodwill Impairment | $0 million | $29.5 million | ($29.5 million) | (100%) | Litigation Judgment | $17.7 million | $0 million | $17.7 million | 100% |
Cash Flow Summary
Cash flow metrics for the nine months ended September 30, 2024 include:
| Cash Flow Activities | 2024 (in thousands) | 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Cash Used in Operating Activities | ($35.9 million) | ($40.0 million) | $4.1 million | 10% |
| Net Cash Used in Investing Activities | ($1.9 million) | $14.4 million | ($16.3 million) | 113% |
| Net Cash Used in Financing Activities | ($1.0 million) | ($0.4 million) | ($0.6 million) | 179% |
| Total Cash and Cash Equivalents | $59.3 million | $98.2 million | ($38.9 million) | (39.6%) |
Market Position and Strategy
Markforged's mission statement is underpinned by its strategic focus on innovation and market leadership in the 3D printing sector. The company continues to invest in research and development to enhance its product offerings and meet the evolving needs of its customers.
How Markforged Holding Corporation (MKFG) Works
Business Model
Markforged Holding Corporation operates primarily in the additive manufacturing sector, specializing in 3D printing technology. The company generates revenue through three main streams:
- Hardware sales, including 3D metal and composite printers.
- Consumables, such as materials used for printing.
- Services, encompassing maintenance and software subscriptions.
Financial Performance
For the nine months ended September 30, 2024, Markforged reported the following financial results:
| Metric | 2024 (in thousands) | 2023 (in thousands) | $ Change | % Change |
|---|---|---|---|---|
| Revenue | $62,719 | $69,614 | $(6,895) | (10)% |
| Cost of Revenue | $31,665 | $36,891 | $(5,226) | (14)% |
| Gross Profit | $31,054 | $32,723 | $(1,669) | (5)% |
| Gross Margin | 50% | 47% | N/A | 3% |
| Net Loss | $(73,714) | $(89,369) | $15,655 | 17.5% |
Revenue Breakdown
Markforged's revenue for the nine months ended September 30, 2024, is further broken down as follows:
| Category | 2024 (in thousands) | 2023 (in thousands) | $ Change | % Change |
|---|---|---|---|---|
| Hardware | $35,515 | $43,855 | $(8,340) | (19)% |
| Consumables | $18,088 | $18,099 | $(11) | (0)% |
| Services | $9,116 | $7,660 | $1,456 | 19% |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, include:
| Expense Type | 2024 (in thousands) | 2023 (in thousands) | $ Change | % Change |
|---|---|---|---|---|
| Sales and Marketing | $24,514 | $28,436 | $(3,922) | (14)% |
| Research and Development | $26,845 | $30,390 | $(3,545) | (12)% |
| General and Administrative | $33,661 | $36,450 | $(2,789) | (8)% |
| Total Operating Expenses | $102,743 | $124,743 | $(22,000) | (17.6)% |
Cash Flow Analysis
Markforged's cash flow for the nine months ended September 30, 2024, is summarized as follows:
| Cash Flow Activity | 2024 (in thousands) | 2023 (in thousands) | $ Change | % Change |
|---|---|---|---|---|
| Net Cash Used in Operating Activities | $(35,949) | $(40,024) | $4,075 | 10% |
| Net Cash Provided by (Used in) Investing Activities | $(1,911) | $14,374 | $(16,285) | 113% |
| Net Cash Provided by (Used in) Financing Activities | $(1,026) | $(368) | $(658) | 179% |
Stock Performance
As of September 30, 2024, Markforged's stock performance metrics include:
| Metric | Value |
|---|---|
| Shares Outstanding | 20,495,979 |
| Net Loss per Share | $(1.15) |
| Market Capitalization | $163.9 million |
Inventory Management
As of September 30, 2024, Markforged's inventory consisted of:
| Inventory Type | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Raw Material | $3,744 | $4,324 |
| Work in Process | $471 | $555 |
| Finished Goods | $17,457 | $21,894 |
| Total Inventory | $21,672 | $26,773 |
Future Outlook
Markforged has initiated cost-saving measures expected to reduce operating expenses by approximately $25 million, targeting a yearly run rate of approximately $70 million.
How Markforged Holding Corporation (MKFG) Makes Money
Revenue Streams
Markforged generates revenue through three primary streams: hardware sales, consumables, and services. The following table illustrates the revenue breakdown for the three months ending September 30, 2024, compared to the same period in 2023:
| Revenue Source | 2024 (in thousands) | 2023 (in thousands) | $ Change | % Change |
|---|---|---|---|---|
| Hardware | $11,591 | $12,154 | $(563) | (5%) |
| Consumables | $5,770 | $5,162 | $608 | 12% |
| Services | $3,123 | $2,759 | $364 | 13% |
| Total Revenue | $20,484 | $20,075 | $409 | 2% |
For the nine months ending September 30, 2024, the total revenue was $62.7 million, down from $69.6 million in 2023, marking a decrease of 10%.
Hardware Revenue
Hardware sales include 3D metal printers, metal binder jetting printers, and 3D composite printers. The revenue from this segment decreased by 5% from Q3 2023 to Q3 2024 due to a challenging macroeconomic environment. For the nine-month period, hardware revenue dropped significantly, contributing $35.5 million in 2024 compared to $43.9 million in 2023, a decline of 19%.
Consumables Revenue
Consumables revenue, which consists of materials used in the printing process, has shown resilience. In Q3 2024, it increased by 12% year-over-year to $5.77 million. For the nine-month period, it remained relatively flat at $18.1 million.
Services Revenue
Services include hardware maintenance and software subscriptions. This segment has experienced growth, with a 13% increase in Q3 2024, totaling $3.12 million. The nine-month figure rose to $9.12 million, up 19% from the previous year.
Cost of Revenue and Gross Margin
The cost of revenue for Q3 2024 was $10.44 million, leading to a gross profit of $10.04 million and a gross margin of 49%. This is an increase from a gross margin of 46% in Q3 2023. For the nine months ending September 30, 2024, the cost of revenue was $31.67 million, resulting in a gross profit of $31.05 million and a gross margin of 50%.
Operating Expenses
Operating expenses for Q3 2024 totaled $27.58 million, down from $59.59 million in Q3 2023. The breakdown was as follows:
| Expense Type | 2024 (in thousands) | 2023 (in thousands) | $ Change |
|---|---|---|---|
| Sales and Marketing | $8,144 | $8,194 | $(50) |
| Research and Development | $7,850 | $9,724 | $(1,874) |
| General and Administrative | $11,162 | $12,202 | $(1,040) |
| Total Operating Expenses | $27,579 | $59,587 | $(32,008) |
The significant reduction in operating expenses is attributed to cost-saving initiatives and restructuring efforts. For the nine months ended September 30, 2024, total operating expenses were $102.74 million.
Net Loss
Markforged reported a net loss of $73.71 million for the nine months ending September 30, 2024, compared to a net loss of $89.37 million in the same period in 2023. The decrease in net loss was influenced by lower operating expenses and improved gross margins.
Cash Flow
Net cash used in operating activities for the nine months ended September 30, 2024, was $35.95 million, which was an improvement from $40.02 million in 2023. As of September 30, 2024, Markforged had cash and cash equivalents of $59.3 million.
Future Outlook and Strategies
Markforged is focusing on expanding its services revenue through subscription models and enhancing its hardware sales through new product offerings. The company has launched cost-cutting measures expected to save between $9 million and $12 million in 2024 and is evaluating further strategies for operational efficiency.
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Resources:
- Markforged Holding Corporation (MKFG) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Markforged Holding Corporation (MKFG)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Markforged Holding Corporation (MKFG)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.