Key product launches see Markforged’s Q2 2021 revenue up 44% year-on-year

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Metal and carbon fiber 3D printer manufacturer Markforged has announced its financial results for Q2 2021, reporting a revenue increase of 44.1 percent compared to Q2 2020.

Over the course of Q2 2021, the company’s financials show that it generated $20.4 million, a 44.1 percent increase on the $14.2 million reported in the second quarter of last year. 

The firm is attributing its revenue increase to the recent launch of new key products to its Digital Forge platform, including two new 3D printers and a software update. Going forward, Markforged is looking to build on the momentum of finalizing its merger with Special Purpose Acquisition Company (SPAC) one last month, in a deal that values the combined company at $2.1 billion and sees the firm listed on the New York Stock Exchange (NYSE) under the ticker ‘MKFG’. 

“We are pleased with our results as we look to build momentum for the remainder of the year,” said Shai Terem, Markforged’s President and CEO. “The Digital Forge is helping solve critical manufacturing and supply chain challenges for our customers. We launched new key products and software updates this quarter as part of our strategy to meet the growing demand for our solutions.

“Our recent debut on the NYSE energized and motivated our talented and hardworking team, and I look forward to seeing what we will accomplish together in the remainder of 2021.”

Traders looking up at a Markforged sign outside the NYSE.
Markforged has reported a revenue increase of 44.1 percent in Q2 2021 compared to Q2 2020. Photo via Markforged.

Markforged’s Q2 2021 financials

Markforged’s increased revenue for Q2 2021 was spearheaded by growth across all geographic regions, with 52 percent of the firm’s second quarter revenue generated outside of the Americas. 

The company cites the launch of its new Metal X Gen 2 and X7 Field Edition 3D printers as key drivers of the firm’s revenue growth for Q2 2021.

Gross profit for the quarter increased 60 percent year-over-year to $11.9 million compared to $7.5 million in Q2 2020, driven largely by strong business performance in hardware production and a favorable product mix in hardware sales, Markforged CFO Mark Schwartz told investors on the firm’s Q2 2021 earnings call. 

“As a reminder, in connection with the closing of our merger with SPAC sponsor one and the closing of the PIPE, Markforged received approximately $361 million of gross proceeds, $44 million in share repurchases and approximately $27 million of transaction expenses,” he said. “As of July 31, 2021, our cash balance, including net proceeds from the transaction as described above, was approximately $318 million. We intend to invest this capital in our team in innovation and across our business to meet customer demand for the digital forge and drive our long-term growth.”

The company’s Q2 2021 financials reaffirm its previously provided guidance for 2021 annual revenue of $87.6 million, gross profit margin of 58% and Adjusted EBITDA loss of $37 million.

in $MQ2 2021Q2 2020H1 2021H2 2020
Cost of revenue8.56.716.415
Gross profit11.97.524.116.9
The X7 FE 3D printer. Photo via Markforged.
The X7 FE 3D printer. Photo via Markforged.

Bolstering revenue with Digital Forge additions

Markforged announced three new additions to its cloud-based Digital Forge platform in June, with the aim of enabling customers to better solve their manufacturing and supply chain problems. The new Metal X Gen 2 and X7 Field Edition (FE) 3D printers are intended as successors to the original Metal X and X7 systems, while the Next Day Metal over-the-air software update is designed to enable print speeds up to twice as fast as was previously possible. 

The Metal X Gen 2 comes complete with a whole host of key hardware developments that improve both user experience and operator safety, while the X7 FE is capable of 3D printing within two minutes of being unpacked, streamlining spare part production and emergency repairs in the harshest of remote locations.

In July, the company announced plans to debut its newest 3D printer, the FX20, which is hailed by the company as the “biggest, fastest, and most sophisticated” 3D printer the firm has produced yet. 

“Together with our software and materials, the FX20 will transform the Digital Forge into a next generation additive manufacturing platform and help our customers print high temperature thermoplastics reinforced with continuous fiber at the click of a button,” added Terem. “These high-strength, higher performance parts continue to fuel the Digital Forge growth in the most demanding and regulated industries such as aerospace, defense, automotive, and oil and gas. These launches were simultaneously executed as our company worked for the closing of the merger with one.”

In preparation for becoming a publicly traded company, Markforged made several high profile hires to its management team and Board of Directors. In March, the firm appointed Ken Clayton as its Senior VP of Global Sales to drive growth across its American, EMEA and APAC businesses, while in April the company hired Schwartz to the role of CFO to aid in bringing the SPAC merger to fruition.

Alan Masarek, Carol Meyers and technology industry veteran Kevin Hartz have also joined Markforged’s Board of Directors upon completion of the merger. 

The Metal X Gen 2. Photo via Markforged.
The Metal X Gen 2. Photo via Markforged.

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Featured image shows Markforged has reported a revenue increase of 44.1 percent in Q2 2021 compared to Q2 2020. Photo via Markforged.