Markforged Q1 2021 revenue up nearly 15%, looks to finalize SPAC merger

Metal and carbon fiber 3D printer manufacturer Markforged has announced its financial results for Q1 2021, reporting a revenue increase of 14.7 percent compared to Q1 2020.

Over the course of Q1 2021, the company’s financials show that it generated $20.3 million in revenue, 14.7 percent more than the $17.7 million reported in Q1 last year. 

The company cites “growing demand” for its Digital Forge platform and the release of its AI-powered Blacksmith software as drivers of the revenue increase, as the firm looks to finalise its merger with special purpose acquisition company one (NYSE: AONE) to go public on the NYSE exchange later this summer.

According to Markforged’s President and CEO Shai Terem, the firm is intent on building on its “strong momentum” from 2020 ahead of the merger, bolstered by recent additions to its senior leadership team and expanding its global partner network.

“These results reflect the growing demand for our Digital Forge platform and the strength of our partners and team,” he said. “Earlier this year we achieved an important milestone with the release of our AI-powered Blacksmith software. We continue to add deep industry expertise to our sales channels through the addition of global partners such as Phillips Corporation, a manufacturing-focused reseller with a strong Haas footprint.

“The addition of seasoned leaders such as Mark Schwartz, our Chief Financial Officer, and Ken Clayton, our SVP, Global Sales, speaks volumes to our ability to scale and meet the requirements of our customers, partners and investors.”

A print farm of Markforged 3D printers.
A print farm of Markforged 3D printers. Photo via Markforged.

Markforged’s Q1 2021 financials

Markforged reports its revenue across three main segments: Hardware, Consumables, and Services. The company’s Hardware revenue increased by 15.1 percent between Q1 2020 and Q1 2021, rising from $12.6 million to $14.4 million.

Meanwhile, its Consumables segment saw its revenue increase by 11.2 percent to $4.6 million, and its Services revenue leapt 27.2 percent to $1.3 million. 

Largely as a result of increased revenues and cost reductions gained through operational efficiencies, Markforged’s financials also reported its gross profit grew by almost a third (31.9 percent) to $12.4 million in Q1 2021. As a result, the firm has reaffirmed its previously provided guidance of revenues of $87.6 million and gross profit of $50.7 million for FY 2021. 

Revenue in $M% change
Q1 2020Q1 2021
Total revenue17.720.314.7

Looking ahead, Markforged is predicting a 60 percent compound annual growth rate (CAGR) for its installed base of active online printers, rising from 11,520 at present to 76,334 in 2025. For context, between 2016 and 2020 the company’s base of connected 3D printers experienced 74 percent CAGR.

In terms of revenue performance, Markforged is forecasting 68 percent CAGR to $706 million in total revenue in 2025. The report also outlines the company’s roadmap to profitable growth, highlighting planned investment in future product development between now and 2023. 

“We’re committed to continuing to accelerate product innovation and expand customer adoption as we finalize the merger transaction with one and begin trading under the Markforged ticker MKFG,” added Terem.

Blacksmith leverages the in-built laser micrometer on the X7 system. Photo via Markforged.
Blacksmith leverages the in-built laser micrometer on the X7 system. Photo via Markforged.

Markforged to go public this summer

Markforged announced its intention to merge with one, a blank check company led by technology industry veteran Kevin Hartz, in February earlier this year. The move will see the company valued at $2.1 billion and listed on the NYSE under the ticker symbol ‘MKFG’.

The transaction is expected to generate up to $425 million in proceeds, which Markforged will use to advance its growth strategy across key verticals and strengthen the competitiveness of its new products and proprietary materials

In November last year, the company launched its new industrial 3D printing platform, the Digital Forge, designed to connect all Markforged systems in use across the globe. In March, the firm deployed its new AI-based Blacksmith software for use with its X7 3D printer, designed to accurately measure the dimensional precision of parts as they are being printed.

Markforged is currently finalising its merger with one, and expects the transaction to be completed later this summer.

The company’s move to go public is another in a string of SPAC mergers undertaken by 3D printing firms recently, with transactions of this nature amounting to $11 billion in the first quarter of 2021 alone. Other 3D printing companies following this trend include the likes of Desktop MetalRocket LabVELO3D, and Redwire.

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Featured image shows a print farm of Markforged 3D printers. Photo via Markforged.