Markforged Holding Corporation, a leader in advanced manufacturing technology, released its preliminary financial results for the third quarter (Q3) ended on September 30, 2023. The announcement was followed by a stock price decline that raised concerns among investors.
At the time of this publication, Markforged Holding Corp stock (MKFG) has witnessed a decline.
Markforged Holding Corp
Current Price: $0.79
Change : -0.30
Change (%): (-27.31%)
Source: Tomorrow Events Market Data
In a preliminary earnings report, Markforged revealed that their revenue for the third quarter stood at approximately $20 million. Furthermore, the company reported that they ended the third quarter with a cash, cash equivalent, and short-term investment balance totaling approximately $126 million. These figures, while substantial, were not met with a positive market response.
Macroeconomic headwinds that intensified toward the end of the quarter, caused unexpected delays in the closure of deals that the company had initially anticipated to finalize in the third quarter.
Shai Terem, President and CEO of Markforged, expressed, “Towards the end of September, we experienced a meaningful slowdown in deal conversion, which caused third-quarter revenues to come in below our expectations.” He went on to explain that as the company entered the fourth quarter, the persistently high cost of capital and ongoing macroeconomic uncertainty continued to restrain capital investments more than initially anticipated.
Due to these challenges, Markforged Holding Corporation has made the difficult decision to adjust its full-year guidance. The revised projection for 2023 revenue now stands between $90 million and $95 million, which is notably below the previously expected range, with a low-end estimate of $101 million.
Terem also addressed the ongoing concerns, stating, “In light of these headwinds, we are accelerating cost reduction efforts to align our operating expenses with anticipated near-term demand trends. Despite these near-term challenges, our conviction in our long-term growth trajectory is unchanged as we bring industrial production to the point of need. We believe the FX20, PX100, Digital Source, and an additional new product release coming this quarter will drive our growth over time as the macro uncertainty clears.”
Markforged Holding Corporation plans to provide more detailed information regarding its Q3 results and the updated outlook for the full year during its scheduled third-quarter earnings report, which is set to take place on Monday, November 13, 2023.
Investors and industry experts will eagerly await the forthcoming earnings report, hoping for a clearer picture of Markforged Holding Corporation’s strategies for navigating the current economic challenges and their long-term vision for growth.
In conclusion, Markforged Holding Corporation’s preliminary Q3 2023 results underscore the impact of macroeconomic headwinds on their business operations. While the short-term outlook has been adjusted to reflect these challenges, the company remains steadfast in its commitment to advancing industrial production technology, signaling optimism for future growth once macroeconomic uncertainties subside.