Markforged Holding Corporation (NYSE:MKFG) Q1 2023 Results Conference Call May 11, 2023 5:00 PM ET

Company Participants

Austin Bohlig - Director of Investor Relations

Shai Terem - President and CEO

Mark Schwartz - CFO

Conference Call Participants

Troy Jensen - Lake Street Capital Markets

Greg Palm - Craig Hallum

Shannon Cross - Credit Suisse

Brian Drab - William Blair

Jared Maymon - Berenberg

Operator

Hello, and welcome to the Markforged's First Quarter 2023 Earnings Conference Call and Webcast [Operator Instructions]. As a reminder, this conference is being recorded.

It is now my pleasure to turn the call over to Austin Bohlig, Director of Investor Relations. Thank you, Austin.

Austin Bohlig

Good afternoon. I'm Austin Bohlig, Director of Investor Relations of Markforged Holding Corporation. Welcome to our first quarter of 2023 results conference call. We will be discussing the results announced in our earnings press release issued after market close today. With me on the call is our President and CEO, Shai Terem; and our CFO, Mark Schwartz.

Before we get started, I'd like to remind everyone that management will be making statements during this call that include estimates and other forward-looking statements, which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements contained in this call that are not statements of historical facts should be deemed to be forward-looking statements. These statements represent management's views as of today, May 11, 2023 and are subject to material risks and uncertainties that could cause actual results to differ materially. Markforged disclaims any intention or obligation, except as required by law, to update or revise forward-looking statements. Also, during the course of today's call, we'll refer to certain non-GAAP financial measures. There's a reconciliation schedule showing the GAAP versus non-GAAP results currently available in our press release issued after market close today, which can also be found on our Web site, at investors.markforged.com.

I'll now turn the call over to Shai Terem, President and CEO of Markforged.

Shai Terem

Thank you, Austin. And thank you, everyone, for joining us on our Q1 2023 earnings call. We started the year strong with yet another record first quarter revenues and the largest pipeline in our company's history. We've shared our strategy before around product innovation, go-to-market and financial efficiency gains and infrastructure buildup. We believe our Q1 revenue and our gross margin results, in particular, are a reflection of strong execution of our strategy and an early indicator of the meaningful opportunity for Markforged in the coming quarters. Demand for the Digital Forge grew across all geographies in Q1. An increasing number of manufacturers are choosing our metal and composite solutions to solve mission critical, metal applications at the point of need. But especially great to see strong pipeline buildup in the Americas, which is our biggest region and can support our plant growth. The incremental improvements we've made to for FX20 cost structure, coupled with our strong operating expense controls enabled us to make our Q1 EPS target. As we spoke before, a couple of macro trends in manufacturing are helping us to fuel demand for digital forge platform. The first, manufacturers across the globe are focused on creating more resilient and flexible production by investing in solutions that derisk their supply chains. The second is it increased focus on digital transformation and industrial automation. We believe our platform is uniquely positioned to address the $40 billion market opportunity available to us on the manufacturing floor today. Our customers tell us that Digital Forge is the perfect tool for the manufacturing store and accelerates the production of new and replacement forge.