| MARKFORGED HOLDING CORPORATION | ||||||||||||||||
| RECONCILIATION OF GAAP TO NON-GAAP MEASURES | ||||||||||||||||
| (In thousands) (Unaudited) | ||||||||||||||||
| | Three Months Ended June 30, | | Six Months Ended June 30, | |||||||||||||
| | 2024 | 2023 | | 2024 | 2023 | |||||||||||
| Net loss | | $ | (14,398 | ) | $ | (18,988 | ) | | $ | (50,344 | ) | $ | (38,007 | ) | ||
| Stock compensation expense | | 3,245 | 1,690 | | 6,706 | 6,046 | ||||||||||
| Change in fair value of derivative liabilities | (95 | ) | (125 | ) | (126 | ) | (314 | ) | ||||||||
| Change in fair value of contingent earnout liability | (1,295 | ) | 817 | (1,134 | ) | 7 | ||||||||||
| Amortization | 371 | 254 | 749 | 531 | ||||||||||||
| Litigation judgment | — | — | 17,300 | — | ||||||||||||
| Non-recurring costs 1 | 1,395 | 3,812 | 3,841 | 5,893 | ||||||||||||
| Non-GAAP net loss | | $ | (10,777 | ) | $ | (12,540 | ) | | $ | (23,008 | ) | $ | (25,844 | ) | ||
| 1 Non-recurring costs incurred during the three and six months ended June 30, 2024 and 2023 relate to litigation expense. | ||||||||||||||||
| | Three Months Ended June 30, | | Six Months Ended June 30, | |||||||||||||
| Non-GAAP Cost of Revenue | | 2024 | 2023 | | 2024 | 2023 | ||||||||||
| Cost of revenue | | $ | 10,810 | $ | 13,476 | | $ | 21,224 | $ | 25,984 | ||||||
| Stock compensation expense | | 35 | 89 | | 84 | 162 | ||||||||||
| Amortization | 351 | 218 | 708 | 446 | ||||||||||||
| Non-GAAP Cost of Revenue | 10,424 | 13,169 | 20,432 | 25,376 | ||||||||||||
| | Three Months Ended June 30, | | Six Months Ended June 30, | |||||||||||||
| Non-GAAP Gross Profit | | 2024 | 2023 | | 2024 | 2023 | ||||||||||
| Gross profit | | $ | 10,878 | $ | 11,973 | | $ | 21,011 | $ | 23,555 | ||||||
| Stock compensation expense | | 35 | 89 | | 84 | 162 | ||||||||||
| Amortization | 351 | 218 | 708 | 446 | ||||||||||||
| Non-GAAP gross profit | 11,264 | 12,280 | 21,803 | 24,163 | ||||||||||||
| | Three Months Ended June 30, | | Six Months Ended June 30, | |||||||||||||
| Non-GAAP Sales and Marketing Expenses | | 2024 | 2023 | | 2024 | 2023 | ||||||||||
| Sales and marketing expenses | | $ | 8,526 | $ | 9,666 | | $ | 16,370 | $ | 20,242 | ||||||
| Stock compensation expense | | 387 | 499 | | 792 | 975 | ||||||||||
| Amortization | 20 | 36 | 41 | 85 | ||||||||||||
| Non-GAAP sales and marketing expenses | 8,119 | 9,131 | 15,537 | 19,182 | ||||||||||||
| | Three Months Ended June 30, | | Six Months Ended June 30, | |||||||||||||
| Non-GAAP Research and Development Expenses | | 2024 | 2023 | | 2024 | 2023 | ||||||||||
| Research and development expenses | | $ | 9,060 | $ | 10,286 | | $ | 18,995 | $ | 20,666 | ||||||
| Stock compensation expense | | 1,009 | 1,160 | | 2,110 | 2,329 | ||||||||||
| Non-GAAP research and development expenses | 8,051 | 9,126 | 16,885 | 18,337 | ||||||||||||
| | Three Months Ended June 30, | | Six Months Ended June 30, | |||||||||||||
| Non-GAAP General and Administrative Expenses | | 2024 | 2023 | | 2024 | 2023 | ||||||||||
| General and administrative expenses | | $ | 10,334 | $ | 12,120 | | $ | 22,499 | $ | 24,248 | ||||||
| Stock compensation expense | | 1,814 | (58 | ) | | 3,720 | 2,580 | |||||||||
| Non-recurring costs 1 | 1,395 | 3,812 | 3,841 | 5,893 | ||||||||||||
| Non-GAAP general and administrative expenses | 7,125 | 8,366 | 14,938 | 15,775 | ||||||||||||
| | Three Months Ended June 30, | | Six Months Ended June 30, | |||||||||||||
| Non-GAAP Operating Loss | | 2024 | 2023 | | 2024 | 2023 | ||||||||||
| Operating loss | | $ | (17,042 | ) | $ | (20,099 | ) | | $ | (54,153 | ) | $ | (41,601 | ) | ||
| Stock compensation expense | | 3,245 | 1,690 | | 6,706 | 6,046 | ||||||||||
| Amortization | 371 | 254 | 749 | 531 | ||||||||||||
| Litigation judgment | — | — | 17,300 | — | ||||||||||||
| Non-recurring costs 1 | 1,395 | 3,812 | 3,841 | 5,893 | ||||||||||||
| Non-GAAP operating loss | (12,031 | ) | (14,343 | ) | (25,557 | ) | (29,131 | ) | ||||||||
| 1 Non-recurring costs incurred during the three and six months ended June 30, 2024 and 2023 relate to litigation expense. | ||||||||||||||||
