Fast Radius, Inc.

Second-quarter revenue increased 49% year over year to $7.3 million, versus $4.9 million last year. Gross margin was 4% in Q2 2022, down from 17% in the prior-year period. Sales and marketing expense was $5.9 million versus $5.3 million a year ago; G&A was $14.7 million versus $8.8 million; R&D was $1.9 million versus $1.5 million. Loss from operations was $22.2 million, compared with a loss of $14.8 million last year, and adjusted EBITDA was a loss of $17.3 million versus a loss of $13.5 million. Bookings were approximately $7 million, up 13% year over year, and cash and cash equivalents were approximately $38 million as of June 30, 2022. For the back half of 2022, revenue guidance was updated to $27 million to $30 million.

Lou Rassey framed Fast Radius as a cloud manufacturing and digital supply chain platform aimed at making manufacturing more software-driven, local, and flexible. His strategic focus was on improving customer acquisition, enhancing the user experience in Studio, expanding the supplier marketplace, and securing additional capital. His tone was optimistic about product progress, but he also acknowledged challenging market conditions and said the company is balancing growth investment with preserving the balance sheet.

Pat McCusker highlighted that revenue grew nearly 50% year over year to $7.3 million, but gross margin fell to 4% because of underutilized manufacturing assets, shipping, and duties. He also noted meaningful operating expense growth, including $5.9 million of sales and marketing, $14.7 million of G&A, and $1.9 million of R&D, which contributed to a $22.2 million operating loss and a $17.3 million adjusted EBITDA loss. Cash and cash equivalents were approximately $38 million at quarter-end, and management said the company expects gross margin to improve in the second half as utilization and efficiency improve.

Analysts pressed on what drove the reduced revenue guidance, and management pointed to restructuring actions, including pulling back some growth investments, plus macro uncertainty. On margins, management said the main first-half headwind was underutilization of internal manufacturing assets, especially the CNC factory set up last year, and said most of that drag should be mitigated in the second half. They also addressed supplier onboarding, saying adoption of the new supplier portal accelerated in Q2, and noted the customer mix remained primarily industrial with the majority of revenue still coming from existing customers.