Markforged Holding Corporation (NYSE:MKFG) Q3 2023 Earnings Conference Call November 13, 2023 5:00 PM ET

Company Participants

Austin Bohlig - Director, IR

Shai Terem - President, CEO

Assaf Zipori - CFO

Conference Call Participants

Greg Palm - Craig-Hallum Capital Group

Jacob Stephan - Lake Street Capital Markets

Blake Keating - William Blair

Operator

Greetings, and welcome to the Markforged Third Quarter 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Austin Bohlig, Director of Investor Relations. Thank you. You may begin.

Austin Bohlig

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

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, November 13, 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 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 website 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 Q3 2023 earnings call.

While the medium- to long-term opportunity for Markforged to help manufacturers reduce costs and strengthen supply chain resiliency remains intact, we were disappointed with our third quarter results with top line of $20 million. The current macroeconomic uncertainty and increasing interest rates had a material impact on our ability to close deals in the last two weeks of the quarter.

As we shared on our October 23 press release, we have also updated our full year 2023 outlook to reflect our current view. At our Investor Day in mid-September, we still believe our 2023 target were attainable. But macroeconomic headwinds in dramatically accelerated in the final weeks of the quarter, and we saw delays in several large deals that we had expected to close. As we progress into the fourth quarter, we believe that the persistent high cost of capital and uncertainty in the macro environment will continue to restrict capital investment in the short term.