Markforged Holding Corporation

Hello, and welcome to the Markforged first quarter 2024 earnings conference call. If anyone should require operator assistance, please press star zero on your telephone keypad. A question and answer session will follow the formal presentation. You may be placed into question queue at any time by pressing star one on your telephone keypad. As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Austin Bullock, Director of Investor Relations. Please go ahead.

Good afternoon. I'm Austin Bollig, Director of Investor Relations of Mark Ford Holding Corporation. Welcome to our first quarter of 2024 results conference call. We'll 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 Turem, and CFO, Azaf Sapori. 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 8, 2024, and are subject to material risks and uncertainties that could cause actual results to differ 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.markforge.com. I'll now turn the call over to Shai Turem, President and CEO of Markforged.

Thank you, Austin, and thank you everyone for joining us on our Q1 2024 earnings call. We started 2024 with strong execution, setting a solid foundation for the year ahead. While the CapEx environment remained challenging in Q1, the market response to our new product has been very encouraging, and we are optimistic about the opportunities these products will bring in the second half. With the FX10, FX20, PX100, and digital source, we believe we are positioned for growth as we drive the adoption of additive manufacturing on the factory floor to increase efficiency, reduce costs, and improve supply chain resiliency. We want to begin by providing an update on the patent lawsuit with continuous composites. In April 2023, the court eliminated 20 of the 22 patent infringement claims made against Mark Forge. Last month, a jury found that Mark Forge had infringed on one of the two remaining claims and awarded monetary damages in the amount of $17.3 million. We strongly disagree with this verdict and intend to seek to overturn the verdict in post-trial motions with the district court. We are exploring all available options, including seeking to overturn the resulting judgment through the appeals process. We continue to believe that there is a massive opportunity to help manufacturers bring industrial production to the point of need. With effective cost controls, prudent cash management, and new, innovative product line, we remain focused and excited about the future of the company. and our ability to continue to drive the adoption of additive manufacturing on the factory floor. We reached a pivotal milestone in Q1 by shipping the first FX10 units, which is Markforged's next-generation 3D printer for the factory floor. The FX10 delivers high print quality at print speeds that are nearly twice as fast and print sizes that are up to twice as large compared to its predecessor, the X7. The initial market feedback has been encouraging. Customers are already printing mission-critical parts for the factory floor. In fact, Toyota is one of our first customers accelerating part production or towing application on their assembly line with FX10. As we enter Q2, our FX10 pipeline continues to grow and we remain on plan to accelerate deliveries in the coming quarters as we continue to scale up production. We believe the FX10 meaningfully enhances the digital forge and our massive opportunity on the factory floor. Manufacturers' need to reduce cost and build more resilient supply chains remain a secular tailwind driving demand for the digital forge. Our customers across the world increasingly recognize the digital forge as a powerful platform to achieve these goals and more. Harvest Tents, a design and engineering customer specializing in additive manufacturing, provides another example of Mark Forge on the factory floor. Harvest Tents needed a solution to produce customized, lightweight, and strong vacuum grippers for collaborative robots aimed at automation production lines. Only with the DHL Forge could Harvest Tents meet the flexural and impact strength these parts required for certification. With a combination of onyx and carbon fiber reinforcement, HoverStands reduced the gripper's weight 80% while improving strength and reducing delivery time from two weeks to two days compared to conventional machine grippers. HoverStands turned to the FX20 when they needed to print larger tools such as customized grippers for palletizing and heavy pick and carry tools for large industrial robots. We believe growing demand for industrial automation technologies is a robust tailwind for the digital forge, as similar robotic applications continue to spread across the factory floor. Looking ahead, currently, we remain on plan to achieve the 2024 targets we laid out at the beginning of the year. We believe we are positioned for growth in the second half of 2024, driven by our new products, robust fleet utilization, and improving efficiencies in our go-to-market operations. With that, I now turn the call over to Asaf Dipori, our CFO, who will offer more details on our financial performance and guidance for the remainder of the year.