MKFG - Earnings call transcript Q4 2021 | Markforged Holding Corporation

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Operator

Greetings, and welcome to the Markforged Fourth Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note that this conference is being recorded. I would now turn the conference over to our host, Stephen Karp, General Counsel. begin. may you you, Thank

Stephen Karp

Good afternoon. Holding fiscal Counsel Markforged Karp, XXXX am Welcome to Stephen Corporation. and conference General our results of call. I fourth year quarter

discussing today. With Schwartz. on earnings be We CEO, in President is me results our Shai after close issued Terem a our and will market press the our release and call announced Mark CFO,

operating of statements call profit All growth, statements will financial I Securities call upon XXXX. future that the provisions forward-looking regarding revenue and are opportunity statements, and we product year, current expected limitation, to projected business risks undue forward-looking current to based estimates gross various management safe statements facts, like strategy federal started, Reform this our involve Any of pursuant statements laws, not within statements. that Act our or would forward-looking are and and market implied deemed be the of assumptions. Accordingly, performance, these and introduction historical that get that not during including actual without harbor of new securities the Private results are this should Before everyone remind in and statements. statements making made could include material these the to forward-looking those differ by meaning which statements contained be Litigation These statements. should you anticipated reliance cause on materially place from uncertainties be for to

information press obligation, release currently call measures. over disclaims date non-GAAP as filings with required President Also, I'll Markforged at our see forward-looking be update any issued the investors.markforged.com. and a on provided the For can website the showing or close law, The today, and to now a call, non-GAAP of versus other as results most with certain to revise our today's to hereof. of market refer statements. available intention of periodic turn There uncertainties which GAAP our Terem, associated course SEC. conference of and or CEO financial is by speaks this Markforged. the found we during in investor please Shai in except risks the only description schedule reconciliation the our after call business,

Shai Terem

I joining Thank growth you, to tremendous has today. year a Steve. everyone for Markforged. like would thank for been us This

manufacturing leading We is XXXX. and to ago proud exceeded annual lead the gross growth a on paradigm for Markforged products. for the the on manufacture founded gross plan that We of our in XX% as targets beat fastest shared total manufacturing. building brings we and are network share that $XX.X on premise largest humans of In executed both a digital the the was XX% Markforged with XXXX we margin. particular, revenue which connected in quarter, shift guidance industry revenue, the how to companies organic our with $XX.X Markforged growing resulting full additive in the the of for million. technologies future we organically year year quarter is million additive factories margins. delivered distributed to can create we fourth

Forge, of also planet. solve critical carbon for our supply transportation emission to challenges helps impact and The which designed powered from the The carbon and production, logistics need customers reduce inventory. by additive applications. high-value, Digital digital metal to chain is platform global Forge helps technology on cloud move of manufacturing Digital and mission [indiscernible], Our overcome physical integrated fiber point our negative native

which The With break these solution Digital use repeatable a have for end parts, deeper technology. that applications the directly active of on XX solve between cycles. rely printed for Our floor. Forge Forge the Digital parts, over manufacturing manufacturing adoption maintenance accelerates printers, reliable the Digital our customers cannot on provides rigorous Forge million demanding which over and XX,XXX

Reinforcement parts than critical that We for in in stronger parts. enables differentiator composites is importance are and Our utilize of Continuous the a metal. Markforged. Fiber unique of understand end It our lighter production to strength creating the use customers advanced

the industrial This for parts our We aerospace leaders technology further customers accelerating continuous been Global our demand Markforged Markforged is for challenges increased are printing proprietary material shorter to in of to chain industries. AI-driven year-over-year especially standalone data times customers opportunity field printers. validating to our increase supply The cloud with proprietary remotely highlighting printer primed end distributed need saw a of creating its tomorrow the for need With and our have in today. using better complete the to this solution. vision shortage in increasing we our of need print the and advanced seen using collecting and is our digital data own where automotive generated software and demand approach, in growth fleet manufacturing. network, and quality is market factory, which learnings and scalable used improve timeframe. single for from accuracy secure, part use XX% stronger assurance composites every all our our is Blacksmith significant our are solution approximately view the parts we from Each global of have solution. printers controlled, produce a the sales testing. growth platform, since fiber point founding, everywhere, software transition the entire large noticed certified XXXX, increasing at a of connects in therefore In and on at

need realizing digital need you portability high pressures quickly their produce when to what Our it, are compounding facing value operations customers where you the of and you need across the are it.

line, Forge nature Forge the global of go cycles to building in able challenges into our manufacturing pandemic these even accelerated our is the task. complicated by parts itself. easy are We use end a the development and own Digital for on that Digital Navigating no

accomplishment customer proud meet very an demand our it’s that Our performance. products, is team and our ability of reflected in is for to

doubling Speaking hiring to year same ended the market at multiple size. we employees, focusing to of efforts develop products teams XXX its go-to We're nearly expand on approximately engineering and time our market. our our our team, the addressable with

us leadership Hally deep help in around stage out also now team Markforged Most XXXX our our and the Andrew Chief recently, next our We capable technology maturity. Digital team is executive the Andrew Forge of the built Officer. us growth. our strategies of Marketing we scaling appointed to accelerate experience, and helping refine With as

already did just on feel Digital introduction ability market our And we XXXX, in our forward, execute plans as on the addressable executing the in new increasing capabilities is Forge look we we plan. to we to our of for confident priority. that for As XXXX, top are the

are critical XD FXXX recall, the Since of need. our high for ULTEM of volume, of the we we our strong that robust the as the in announcement, and and world. higher and biggest, heat last you Fiber aerospace, application customers robust this announced and printer view, has accessible the high FXXX a mission platform demand ULTEM in printer grows for at November smartest point production the with The from excitement early year. industrial As our validates for and Filament Digital backlog XXXX all of and release demanding Filament such over Reinforcement seeing Continuous and the building solution industries, parts produced the is strength team ever for solution Forge resistant to an defense fastest, automotive. performance need grid FXXX

which second in see in adoption volume Digital with the to half of to shipping continue and of FXXX the the significant enterprise more a We accounts, see more Forge. accelerated our certify increase expect the year. We applications within

of of of our needed usage its directly [indiscernible] This operation, printing a fleet our Digital use application and Forge full that over overcoming and hours the to almost parts of manufacturer. cars, even automotive extending leading world’s printer printing last supply with They XX including who by destruction strong For example, use an doubled is as their one across into time XXX they’re the of over the printers manufacturers FXXX its solving. chain quarter, the are goes customers offering connected the example

the from tapping market higher our the to precise the Digital robust with and ULTEM reinforcement. new our increase with Forge, continuous addressable PLA use and we applications design production and their As product FXXX of fiber XXXX customers with new accessible are expanding filament

of solve I on XXXX, of our and for to turn offer a give the elements materials, ability reflect same performance. to our in and success, the critical performance to in face talented in confidence of challenges mission chain our for at the our I over what software, strong supply detailed our team. growth the applications to the great more a base, look overview capabilities These our Mark hardware, As of ability fueled XXXX. And now our Digital expansion deliver customer call financial Force me

Mark Schwartz

Thanks, Shai.

financial fourth XXXX. the Let’s quarter fiscal results fiscal the our turn for year our and well for as for year XXXX, guidance as to full

revenue year all XX, across across For and the ended experienced regions. products million our We December to $XX.X XX% services of the compared $XX.X for year, million revenue with all growth increased XXXX. and geographic

fourth representing our million of of million quarter an of is million in history. $X.X single compared fourth revenue the Alley the to recognized Notable XXXX. impact revenues Alley, XXXX. quarter the year-over-year quarter Fourth $XX.X ended the XXXX fourth impact XX% remains largest increased revenue quarter the $X transaction of in compared to XXXX. sale for For for XX, as of X.X% with the December Automation Removing $XX.X XXXX revenue comparison the quarter the increased in million Automation that

profit the ended to year, XXXX. compared increased December to XX, $XX.X million for $XX.X the gross For million year

the As we profit XXXX. a for XX.X% a gross XX.X% compared year in achieved to result, margin

supply long-term to we serving believe industry calendar manufacturing critical to automation the attributable needs industrial on Nonetheless, we challenges remains will year our of focus which chain maintain XXXX. leading continue through view gross by was continue mission industry. strong presented the broader margin margins gross our Our global pressures, expect unchanged. and will despite We

million expenses over Moving charges year, on, for million during of our time was to in operating strong when for based with operating related spending and year. merger than $XX.X adjusted expenses which million of the million $XXX.X controls target compensation previous the our the XXXX, $XX.X year. $X million $XX.X stock one incurred in less compared maintained we expenses transaction our We public

million due company but noted, the of included of expenses magnitude to operating excluded published forecast public year of document. $X.X This expenses the full expenses. XXXX our deliberately S-X were that from timing in public and also our uncertainty those Our was

new with research The commitment Our million to to result our year million $XX.X the of and time for compared accelerate $XX.X in development increased XX.X% market. the to product previous expenses year.

expenses increased with Operating or For additional our Forge the stock thus in quarter Research December XXXX. million. the for based and Adjusted the quarter million million strategy for million committed innovation of compared XXXX. platform software the compared the quarter system of with charges were of in fourth development million our fourth through $XX.X market quarter to quarter, release $XX.X the million the for expenses customers. to $XX $X.X fourth compared $XX.X of to million XXXX. our fourth fourth operating expenses of Digital development, compensation ended were every for increasing XX, We $X.X value with our $XX.X remain material, increasing to addressable quarter

XX, year, year. the based as based a associated adjusted of $X.XX outstanding million. $XX.X of $X.XX $XX.X Adjusted share, and based audit, million the transaction of excludes on of legal with loss million December other of a of income expenses as expense XXX of SPAC count or compensation other EBITDA shares weighted share million, $X loss XXX per the outstanding and average the the million on of million non-recurring For was per EBITDA XX.X end of or share stock XXXX

As the a line merger. to income mark-to-market SPAC of reminder, liabilities derivative the item adjustment our related represents other

adjustment or quarter loss other million million. excludes the and of of fourth average per our of related on based the stock weighted share to $X.XX $XX.X million based was XXX Adjusted outstanding expense adjusted share derivative a million. for $X.X quarter, For EBITDA Again, mark-to-market of of the liabilities. EBITDA income count compensation $XX

to to reporting get other On non-recurring GAAP compensation, some intended intend exclude changes. I we a and forward the infrequent into supplement Non-GAAP broader go from to of our based our we share Before GAAP insight results our to how and with reporting business. reporting unusual results we guidance, will other results. income charges certain want highlight manage provide basis, non-GAAP

reporting supplemental share. this comparison non-GAAP profit, data of operating provide And per non-GAAP gross profit more EBITDA. adjusted meaningful We than this will reporting earnings believe provide will purposes set prior for a points and our of for

XXXX year XX% to growth full of guidance. of representing at to of We our million midpoint the onto Now million range revenues $XXX be anticipate that range. within year-over-year the $XXX

our second this of XXXX year, FXXX second in expect of expected half to commercial to will XX% recognized we half the year. availability continue the With during the the the revenues of XX% of be

expect generate industry XX%. global the gross year of We challenges be even to expected with range to to leading full the non-GAAP the gross in continue margin XX% supply margins, factoring to of chain in

accelerating operating over will show the our we Our control exert to top growth line in with begin operating combined leverage XXXX. expenses

We expect a million year. million as expenses range to the of a non-GAAP operating revenue in $XX our to in operating of decline loss for percentage $XX resulting the

call today. remarks results phone please of year non-GAAP the $X.XX questions. $X.XX we Finally, per for up be full range open EPS concludes to share. the for the expect prepared in That to loss Operator, our a

Operator

comes Thank Drab with from you. Our question Please your first Brian William [Operator Blair. question. Instructions] state

Brian Drab

taking Mark. Hey, for my Shai. questions here. Thanks Hey,

Shai Terem

Brian. you, Thank

Mark Schwartz

Hi, Brian.

Brian Drab

basis wanted a I maybe this margin with granularity, and be and the how can about like, just bit, basis experiencing this when that. like see – challenges, obviously on how but That’d so we it’s chain, little can something or like and I to down like at that some or mean, XXX supply challenges past that I’ve you just talk sense get understand like, a point the specific for challenges looks at you’ll many you all with I XXX gross which of those move some the great. moment hey, a points you’re the you’re that more contributing, of break seeing? a headwind is but little it the discussed

Mark Schwartz

Brian. Yes. Thank you,

of highlight maybe too challenges So facing. some perhaps without couple a of give getting granular, examples to highlighting of I extreme examples can we’re you the

time of mechanical seeing sort over XXX consider usual in lead what a XX with components having business we XX a we’re as lead times to weeks. week times to would So – to out be extended

think a item. now can $XXX I is a seeing controller. also microchip example was That We’re specific a which for of $XX item, an approximately

is short it’s and are supplier chip for that these is U.S. that the air the into other the what ability of are and the to seeing. cases, Now that impacting extreme things term there freight In get we’re But because two both to this meet examples from that we before for we’ve accelerating cost increased freight example, increased labor and said make from We’ve materials. from a the ship Brian targets. to But there's growth certain it chatted cost and to a our air, continue about bit. of

proactive We products. the growth. And some result, we’ve in measures and have cases of that our our have our made we because negatively innovative in done market importance so that the prioritized impacted believe capturing we’ve margin as a gross with

that’s items a you across the seeing terms to points? time couple to itself also start margin that introduction mean are in year. as meaningful impact units. break later of well. having component Small It commercially XXX out basis is on lead at So level And of next we’re to half mentioned. product of this pulled year. a a attributable how these labor And unit available, our FXXX got obviously second numbers the of higher to and in of that year that of We’ll be gross But revenue into that and do down of expecting as the where that’s in getting our numbers meaningfully XXX new tag. our year it where board. – a half the contribute units costs. basis increased really the ramp per we’re and of we’ve It’s early that And in. inflation by longer commercial that building becomes and FXXX to out units second the a will the it’s as be the costs price And then Shai combination

Brian Drab

feel have confident for about I’ll revenue lead the the do printers one Thanks how hit then ask time FXXX given detail. that you you other feel to a need do have all parts all How for that just you – And to target that get you ability build that the the you of some the year? now. the XXX-week want follow-up for that to and

Mark Schwartz

can that challenges. in then Shai Yes, something maybe and to I’ll we’re these alone touch it, not add on but

and these would and of we I terms these buying fight XXXX. year, that our last and companies outs in times, a good We confidence every think about lead impacted we did that availability ahead comfort very cetera. lots and lot overcome et parts as are balance day shortages through us ability have but We of of push work sheet, facing gave part of securing our certainty in battles talked we them. to have

but So we us there every that day, work revenue impact a that causes today these our concern expectations. problems is would nothing

Shai Terem

as one Yes. team differentiators I’m Maybe very over very we was and Brian, proud of you order every and agile, of finding know, all year able we’re on I will key in creative and the here, deliver of solutions I our had. able very flexible, be very that’s to to add think right that our team last our

So I we XXXX believe well. of into see as that didn’t confidence lot a

Brian Drab

much of very Thanks both Okay. you.

Mark Schwartz

Thanks, Brian.

Shai Terem

you. Thank

Operator

your with question Rod comes Please Goldman next Our Sachs. state question. Hall from

Rod Hall

just Yes. And where probably you – given I commentary moved question. improved, kind us the things the positive FXXX, curious pipeline the that way guys pipeline that thought I’ve is of got know qualitatively up improved, quantitatively, back. this wonder but track has came there’s Hi if just the I more I point you you can, then since point follow up. Thanks it and where pipeline not a on could of if stand today. on at picked guys. be FXXX you I about sets, you would kind the anything not understand the us guess tell that say on it we could public, that the for of help if order that

Shai Terem

Sure.

pleased. are So we very

I say demand over we XXX opportunities think working the field. in robust. I would is are the now on by

less. the with would Some in is more the market. happy But we to from importantly, of hear very are we the more, are the in them customers. we very them pleased some demand stages, say of progress I But that current feedback see

So solution. printing that hours. are of the we it. continuing hundreds They’re with customers They have love

as feel a of production. into accessible You on need to with hours to very the from difference the being that They happy these to materials solution later solution. are understand They’re usage of lot very converted well. robust

So a part take very now one can high to hours used move into that production with so solution. six about happy take hour, And we volume they this it. are

Mark Schwartz

opportunity see that in part customers folks is an And add see What excited or the haven’t the of lining share But the outside the it for that FXXX to we’re the feel as from having surprised most last able lot even in and of to the of are and occasionally opportunities produced future COVID have Rod to part. about FXXX up a been of are or we that, at that Formnext we fact touch able website, not product. that I there able a what November are were And units are, in would of field positively. to outside on our the has the middle us Germany. they to

Rod Hall

Are mean, machines that to those, have And still product this of some you you of just you for opportunities, you the it’s a clarify is these actually hard looks just about, into people’s Do process you talking say, are who gives the any you ideas, orders speaking have people hands. to when orders the it just at in stage? guys when that like? to been any people I to placed get So are people? XXX like say order book what

do to actual kind have that. what book You for understand product. to just that order looks And of trying the like

Shai Terem

Yes.

orders. not with this more of but than you share we read have that will We do to I go to dozens be details, level able a of couple can

we are them the increase to out and build to ship So now pipeline. printers the continue trying and

Rod Hall

check as then higher we bit what the than just I share XXXX. just And ideas and can you comp on share And that. a in guys curious, I our comp is? compensation mean, share just we your little wanted what I’m Okay. appreciate with then well, for but it then about based thinking, bit elaborate is talked I you That’s guys of, Thanks. philosophy and to there have general of are kind on anticipated. we had great. kind double a you thoughts

Mark Schwartz

sure. Yes,

component in that to about employees company So the Equity philosophy. participate employees general to success compensation and our success. participate want the we the our meaningful a just to and of a all just able for in of is they want be of

be that, comp a So in teams. how it And terms terms continue something not is that incentivizing of think fiscal share us will to is outlier on I important an that in you think go in based for of I our XXXX basis. model forward

Rod Hall

Okay. guys. lot, question ask there. Appreciate Thanks chance a to the a

Shai Terem

Rod. calling Thanks for in. Thanks Yes.

Mark Schwartz

you. Thank

Operator

next Our comes question Capital. your Please Jensen Lake question. from Troy state Street with

Troy Jensen

gentlemen. Hey

on the congrats quarter and of great year. all, First great

Shai Terem

Thanks Troy.

Mark Schwartz

you. Thank

Troy Jensen

the you, How for like a Shai, FXXX just I all curious OnyX above? more the ask ULTEM guess few it parts? and answer is I to producing of the there’s I’m larger Or guess in probably interest Okay. is about or if on I’d

Shai Terem

It’s all the of above.

like a parts speed then of the print XX assemble them today they and know, have the production. later. to with of multiple robust in it move of high can lot we one as build really love the you that So need printer and customers volume the do they can But that FXXX, all and to

for the into the replace which can aircraft. that especially aluminum world On the especially fiber, and of can which our printed be see kind and time aerospace hand, customers on first are in in we with ULTEM that the about automotive, can other extremely ULTEM go continuous parts excited is and new really

it’s the of So definitely above. all

Troy Jensen

on thoughts understand. Quick materials Totally Yes. maybe like next here.

the pipeline pack stuff kind Just and in it curious others? and medical some if and like is peak of says

Shai Terem

a and has in and Digital the main about around three to envelope push and on Forge software, materials. but all the continue time always hardware, share develop know work parallel. three in we continue we going to materials, the materials, develop we’re and new And didn’t I to So, component new

Troy Jensen

All Shai, that's thoughts percentage in used you the, just maybe that of right. parts on applications, just production this Perfect. How for how changed year versus last being maybe the last about the your one are year?

Shai Terem

did shared We and our the of should. desktop comments that, the We do the But printing Yeah. our means not it with did I we the yet. significant more printers, solution. in XX%, XX survey in again XX. which more see versus increase customers And industrial with probably meaning before. our It's about and

grade time So our we metal customers that be had clear I but composites. higher they higher with last just would aluminum going it's parts, at our definitely XX% us of parts that do the grade that because indicated looked or say to to are higher wise, probably And advanced need and survey we to we Troy, steel, materials were replacing Yeah. this intuition and again. to same platform,

Troy Jensen

open of survey keep see Is to again. and pursue on throw love just more, locked always opportunities or think just I'll you kind Exactly, just for see you the Great. Shai would but it thoughts that proprietary? something up then Markforged. out and that material ever floor, one

Shai Terem

our it They want such, and what's want full between to full and as making come it something must don't don't We're different the solve as a the for your but I and helping goes if they goes for solution cycles, rigorous and customers cannot it a problem. you We're break it think prototype not as Markforged. solution. then applications mission wrong, from pieces know a places biggest critical take must to company. most back mission customer bites And requirements. critical applications, to withheld a differentiator they

We break. part I a into the provide the full are will solution, goes line, and as that full such, manufacturing full aircraft, into think we cannot And it certifying continue to a and just a customers. with certify the solution our into solution car, an

you it have change manufacturing you over How before – solution. on each example, the the You full tests. them for have XXX,XXX you material? put line, do Some in to do to must time automotive, they of they can tests XXX,XXX want

Troy Jensen

work. Well stated. the good Right keep guys, up

Mark Schwartz

Thank you, Troy.

Shai Terem

Troy. you, Thank

Operator

[Operator Instructions] your with Group. state you. question from Palm next Craig-Hallum question. Our Please Thank Greg Capital comes

Greg Palm

weeks, demand questions. guess, thanks clearly supply few or follow-up of secondly, but you any global And on procure chains Starting half QX? color in some so, a, a a over lot to revenue, what in know it's Yeah, happened on first versus here you the of taking seeing an kind second for I seeing change events any the question, off, are parts? in earlier but terms gave ability I on half specifically you're color more last

Shai Terem

it's of put other and large with parts it regular Yeah. line. they over you and the digital efficient in car it the and have to the sometimes solution solution I more cannot and you, can see the our customer cannot very manufacturing a visited over using would overcome parts To over X,XXX actually level to more now, applications, see or it of they I with definitely do find automotive dozens all again I way challenges. say a manufacturing line more And across they majority they're Markforged. chain of our get the bigger a that files part printed supply in X,XXX a any need we is And have tell in the ways. the again because ours dozens if they and that they by

driver our for supply So solution. demand say a would is the I for think huge increasing I chain

you we we question, know, anyhow second cyclical bigger second usually a do the half. the industry, first it's For see so as from half, which is

be shipments. to FXXX it's year this little a think more I magnified bit of going the because

Greg Palm

take also should well, based larger amount just as that And than it. some on we trends? normal QX seasonality QX Got as at

Shai Terem

have it's I good see don't historically of right, a the and It's Greg, been that, think that's fair the to that. to change we any sense think you case industry.

Greg Palm

have of it. going the made taking just you Got brunt are to pricing And any on of costs happened kind the input you everything changes to here? or given of really ahead what's

Shai Terem

on changes some the especially but play increasing industrial can. increasing to side. bit, we There metal costs try prices series little areas see But the have the We on try to minor a are or series, to we overcome on just where with flexibility. we our less the

Greg Palm

but Okay. any you broad patterns just And XX, guess consumption comments are patterns. it's really compares units material in the I to some, maybe? early, on FXXX, you out and on there's of material made that initial can know us on consumption you expectations give then last I only seeing field, a one your versus handful how some how sense

Shai Terem

I say would of normalized just there. Usually takes until it's systems about there's it's year too to said, But level out in build the it way, are size we are spools bigger. much little is understand Sure. we the of to the much speed talking a multiples. bit of the The see by a The compared a because as a few pace much you XX, each it system, consumption bigger. early the faster. is about printer. The

that system. lot months over by this the so a customer system. speed rightfully FXXX just now, a of size increase keeps on some it's We production there's going. to with of print really consumption see significant the already see the of print the hours of the that. few There's going we're So a parts consumption it's with And no significant doubt XXX can but of probably. now, and compared a And normalized it like XX to of the about of it materials

Greg Palm

and All of there. luck leave right, Thanks forward. going sense. best I'll Makes it

Shai Terem

Thank you.

Mark Schwartz

Thanks Greg.

Operator

you. Thank

with from comes Citigroup. question state Jim next Please Our question. your Suva

Jim Suva

is a since I of to seasonality. And much. my normal that world since time so seasonality a you us, information you appreciation which especially we for very been gave the want express helpful, long have Thank

consumables. ask gross tremendously, prices moved just it's full I probably XX% in within kind current the The margin of is, XX%? to shipping thank and reason believe impacts you of past there's So built said which I is you year? you your that. you've there lot that it correctly margin a for Is us regarding comments fair margins, assume gross and moving mentioned you gross On investors to parts which it's that costs, materials, week into detailed gave me some appreciated. literally for guidance, oil that resins, why

I on wanted kind So that? to check just of in

Shai Terem

that other seen oil but that give done Jim, in best the up now tell to it me we've that, opportunity the direction. you days, Even factor in. a play Yes. over our little because last you, an would you moving few Thank I bit, to we've

best information tried be takes have difficult you account very all of recent really into most but ball and we've those this we've crystal into account and speculate to otherwise, to take inputs. to-date So the given obviously not a information having to we

Jim Suva

just your as on that customers. be a you curious little item it of went like implemented of that, the side, at with can of invoice, you mentioned pretty to line Great. And how because follow-up, the side was that Was shipping bottom consumable the increases kind bit price I my machine about sensitive or a the surcharge or you customers?

Shai Terem

went We of side on and with machine Right? only them. few the just a

said, be very it very, As sensitive. you could

profitability counting as us on by now customers have for We they a their journey. our long-term are and solution It's well. over XX,XXX using are that

a it's sensitive So very situation.

Jim Suva

reason to market out more stocking, there increase is lastly, a behind inventories material and around prices? that want and maintain prices not then that that, all oil lot move destocking, is consumables upon then have based buffer consistent and logic restocking, the not and And you it have not the resin just changing to a

Shai Terem

furiously you all These data Jim, points as can are imagine. fast coming and at us

an real the quarter on making adjustment precluding that. that in not on from And we but to-date adjustments, we're themselves. do – seen fourth machines So to the it's haven't of need focused we we have XXXX that any a are

Mark Schwartz

Jim. I Maybe add

Jim Suva

ahead. Go

Mark Schwartz

the key We need again, differentiator. remember to

are We prototype company. a not

We based on down this to per a is cost of goes and And eventually lot solution testing solution. part. a certifying a are

long it's time. understand that order what to as be are help be the a will they understand And solution. need, certify them our customers we to be ride, we going we it's long in for once doing to levels same years, XX of to the able in, next keep So going there as for there our it's

why very sensitive it's a us. area this So for is

cost We are per helping kind precision critical applications. manufacturing mission helping of We're part cost. to solve to overcome,

So help there very, be careful be successful. our an need that we area very to there's customers very and

Jim Suva

Thank for you, details. Thank the Shai so Mark. and you much Great.

Mark Schwartz

Thank you.

Shai Terem

Jim. Thanks

Operator

I'll further to are floor questions There time. turn Shai back this at you. closing the no for remarks. Terem Thank

Shai Terem

a had us. a XXXX. and you We year very XXXX for having in great much, in joining everyone better forward Thank for year looking

Operator

a today's may day. concludes Thank parties Have All you. This call. disconnect. great

Markforged Holding (MKFG) 16 Mar 222021 Q4 Earnings call transcript