Markforged Holding Corporation

Good afternoon, and welcome to the Mark Forged First Quarter 2022 Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key, followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Austin Foley, Director of Investor Relations. Please go ahead.

Good afternoon. I'm Austin Boleg, Director of Investor Relations of Mark Forged Holding Corporation. Welcome to our first quarter fiscal year 2022 results conference call. We will be discussing the results announced in our earnings press release issued after market closed today. With me on the call is our President and CEO, Shai Terrell, 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 the 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 12, 2022, and are subject to material risks and uncertainties that could cause actual results to defer materially. Mark Forge 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 closed today. which can also be found on our website at investors.markforged.com. I'll now turn the call over to Shai Turem, President and CEO of Markforged.

Thank you, Austin, and thank you all for joining us today to learn more about our Q1 2022 performance. I'm very happy to share that we continue to execute successfully on our plan at both the top line and bottom line. We achieved our growth targets and finished the first quarter of the year at $21.9 million in revenues and non-gap loss of $0.08 per share. We continue to feel confident about our momentum and outlook for 2022. The underlying demand trends across all of our business segments are strong. Our customers continue to solve more and more mission-critical applications with our technology. With the increased pressure on supply chains, more manufacturers are realizing the value of additive to help alleviate these concerns and are turning to Markforged for a sustainable solution. This idea is no longer just a buzzword, but a directive coming out of the White House. As you saw last week, the Biden administration announced the Additive Manufacturing Forward Initiative to encourage companies to adopt 3D printing technologies. to bolster and strengthen their supply chains. Of course, we've already been doing this since our inception. From our beginning, Markforged has been focused on manufacturing applications, enabling deglobalization and bringing production to the point of need. We applaud the US government's efforts to accelerate adoption and look forward to helping businesses across all industries transform their supply chains and bring manufacturing back to America. I'm very proud to share that thanks to amazing efforts by our team, production and delivery of the FX20 is on track. We shipped several FX20 systems to our channel partners and customers in the first quarter, and we expect the pace of shipments to accelerate in the second half of the year in line with our plans as we have mentioned previously. The FX20 increases our addressable market into larger part size high-temp resistant material, and robust production, and we expect it to have a significant impact on our future, particularly in aerospace and automotive applications, among others. As more people see the FX20 in action, we're excited and humbled by the increased interest and positive feedback. Next week, our team will be attending Rapid TCT and displaying the FX20 in North America for the first time. I'm spending a lot of time in the field helping connect people to the power of the digital forge. There is this magic aha moment I love when someone holds a strong and accurate part printed on the digital forge platform in their hand for the first time. I can literally see the mental gears turning as they begin to imagine the manufacturing problems they can solve with such high quality parts. I can't wait for our team to bring this energy and the Fx20 to the threshold floor in Detroit next week. In addition to the Fx20 for robust production, we continue to drive our strategy of expanding our addressable market for early-stage design with the addition of precise PLA to our portfolio of materials. This cost-effective, specialized version of polylactic acid, or PLA, now enables the Digital Forge to address the full product development lifecycle from validation to end-use applications, all on the same platform. Markforge customer Zero Tolerance and Injection Molding and Machine Shop used other 3D printers and PLA materials as part of their design phase and were not satisfied with the quality of their results. Now, with Markforge Precise PLA, they can print reliable and high-quality designs and move directly into production using Markforge Onyx, with continuous cover for strength, all on the same platform. With the full lifecycle development, the customer told us, this is the most reliable additive platform we ever used. It just works. Software has always been a key differentiator for Markforged and core to the DigitalForge solution. So it's natural that our first acquisition is a high-value software technology that will add production-grade capabilities for our customers. I'm very excited to welcome the Teton Simulation Software Company to our team as the deal goes subsequent to the quarter end. Teton's Smart Slice technology automates validation and optimizes power performance for additive manufacturing applications. We'll integrate it into our agri-software as a subscription add-on providing a streamlined workflow, including virtual validation. By replacing time-consuming and wasteful physical testing, we give customers a better understanding of the strengths of their parts. This technology aids customers in configuring slicing parameters for end-user requirements. With a deeper understanding of the composition of their parts, we anticipate engineers will utilize our advanced composites like our continuous fiber reinforcement technology in more critical manufacturing applications. This means deeper utilization of the digital forge in critical manufacturing applications in sticky relationships with our customers. As everyone is well aware, challenges across the global landscape continues as the war against Ukraine has escalated. I want to clearly state that SmartPort has never done business directly in Russia and does not intend to do so. Our customers and team in EMEA continue to navigate the uncertainties this ongoing conflict has created without a clear resolution in sight. Between the worsening conflict in Ukraine and more regional COVID shutdowns, we're experiencing, along with every other company in the world, continuing disruption to the global supply chain. To date, we have overcome these challenges and remain confident that our team will continue to work creatively to secure supply to meet demand from our customers. I would like to share with you why, especially now, I personally believe that Markforged is a very different player in the additive market. First, it's our mission and focus to help our customers solve for high-value products and use mission-critical applications, enabling point-of-need production. Second, our digital forge platform, driven by a proprietary advanced composite technology, is a reliable, affordable, and easy-to-use platform that our customers love. Third, our software infrastructure and our blacksmith AI engine ensures our platform learns and improves over time. Fourth, thanks to our robust balance sheet, and very strong talent base were able to accelerate our organic product innovation and continuously increase our addressable market with products like the FX20 and more to come. This results in growing install base with strong unit economics and leading gross margins. Coupled with our rigorous financial discipline, this model will create operational leverage over time. As such, And in spite of many global challenges, we remain confident that our strategy and execution capabilities will continue to support our growth in 2022 and beyond. We'll continue to take pride in just doing what we say we are going to do. I now turn the call over to Mark, who will review our financial performance in more detail.