| MARKFORGED HOLDING CORPORATION | ||||||||
| RECONCILIATION OF GAAP TO NON-GAAP MEASURES | ||||||||
| (In thousands) (Unaudited) | ||||||||
| | Three Months Ended March 31, | |||||||
| | 2024 | 2023 | ||||||
| Net loss | | $ | (35,946 | ) | $ | (19,019 | ) | |
| Stock compensation expense | | 3,461 | 4,356 | |||||
| Change in fair value of derivative liabilities | (31 | ) | (189 | ) | ||||
| Change in fair value of contingent earnout liability | 161 | (808 | ) | |||||
| Amortization | 378 | 277 | ||||||
| Litigation judgment | 17,300 | — | ||||||
| Non-recurring costs1 | 2,446 | 2,081 | ||||||
| Non-GAAP net loss | | $ | (12,231 | ) | $ | (13,302 | ) | |
| 1Non-recurring costs incurred during the three months ended March 31, 2024 and 2023 relate to litigation expense. | ||||||||
| | Three Months Ended March 31, | |||||||
| Non-GAAP Cost of Revenue | | 2024 | 2023 | |||||
| Cost of revenue | | $ | 10,414 | $ | 12,508 | |||
| Stock compensation expense | | 49 | 73 | |||||
| Amortization | 357 | 228 | ||||||
| Non-GAAP Cost of Revenue | 10,008 | 12,207 | ||||||
| | Three Months Ended March 31, | |||||||
| Non-GAAP Gross Profit | | 2024 | 2023 | |||||
| Gross profit | | $ | 10,133 | $ | 11,582 | |||
| Stock compensation expense | | 49 | 73 | |||||
| Amortization | 357 | 228 | ||||||
| Non-GAAP gross profit | 10,539 | 11,883 | ||||||
| | Three Months Ended March 31, | |||||||
| Non-GAAP Sales and Marketing Expenses | | 2024 | 2023 | |||||
| Sales and marketing expenses | | $ | 7,844 | $ | 10,576 | |||
| Stock compensation expense | | 405 | 475 | |||||
| Amortization | 21 | 49 | ||||||
| Non-GAAP sales and marketing expenses | 7,418 | 10,052 | ||||||
| | Three Months Ended March 31, | |||||||
| Non-GAAP Research and Development Expenses | | 2024 | 2023 | |||||
| Research and development expenses | | $ | 9,935 | $ | 10,380 | |||
| Stock compensation expense | | 1,100 | 1,147 | |||||
| Non-GAAP research and development expenses | 8,835 | 9,233 | ||||||
| | Three Months Ended March 31, | |||||||
| Non-GAAP General and Administrative Expenses | | 2024 | 2023 | |||||
| General and administrative expenses | | $ | 12,165 | $ | 12,128 | |||
| Stock compensation expense | | 1,907 | 2,661 | |||||
| Non-recurring costs 1 | 2,446 | 2,081 | ||||||
| Non-GAAP general and administrative expenses | 7,812 | 7,386 | ||||||
| | Three Months Ended March 31, | |||||||
| Non-GAAP Operating Loss | | 2024 | 2023 | |||||
| Operating loss | | $ | (37,111 | ) | $ | (21,502 | ) | |
| Stock compensation expense | | 3,461 | 4,356 | |||||
| Amortization | 378 | 277 | ||||||
| Litigation judgment | 17,300 | — | ||||||
| Non-recurring costs 1 | 2,446 | 2,081 | ||||||
| Non-GAAP operating loss | (13,526 | ) | (14,788 | ) | ||||
| 1 Non-recurring costs incurred during the three months ended March 31, 2024 and 2023 relate to litigation expense. | ||||||||
