Successfully Executing on Realignment
Priorities
Strong Demand Provides Significant Second
Quarter Visibility
Strategic Review Process to Maximize
Shareholder Value Remains Ongoing
- Continued sales execution in Q1 2024
- Bookings of $17 million; 50% of orders from existing customers
- $27 million in bookings since mid-December 2023
- $22 million in backlog exiting Q124
- Continued defense sector expansion – added 3 new customers in
Q124
- Q2 revenue visibility – expect >30% sequential revenue
growth
- Successfully reduced quarterly operating expenses
- Down 30% year over year – down 15% sequentially (excluding
one-time charges)
- On track for Q224 cost reduction goals
- Operating cash flow – 35% year over year improvement, well
positioned to achieve cash flow breakeven in the second half of FY
2024
Velo3D, Inc. (NYSE: VLD), a leading additive manufacturing
technology company for mission-critical metal parts, today
announced financial results for its first quarter ended March 31,
2024.
“We were pleased with our first quarter performance as we
continued to successfully execute on our strategic priorities,”
said Brad Kreger, CEO of Velo3D. “Specifically, we are now just
starting to see the benefit of our new go to market initiatives as
we booked $17 million in new orders during the quarter.
Additionally, we entered the second quarter with $22 million in
backlog. We believe this strength reflects the continued customer
confidence in our technology as well as our success in expanding
our footprint in our core markets, including the defense sector, as
we added 3 new defense customers in the first quarter. Our
re-alignment efforts are also showing progress as we further
reduced our quarterly costs and improved our operational
efficiency. We also executed on our initiatives to improve system
reliability which is reflected in the fact that approximately 50%
of first quarter bookings were from existing customers. Finally, we
remain committed to achieving cash flow breakeven in the second
half of the year.”
Key highlights related to the company’s strategic
initiatives:
- Ensuring customer success / system reliability – resolved 100%
of high priority tickets in Q124
- Increased revenue 1H24 visibility through bookings growth –
booked $17 million in new orders in Q124 - $27 million since
mid-December with approximately 50% of orders from existing
customers
- Improved Sapphire printer quality – increased sequential
Sapphire XC installation efficiency - >40% reduction in install
days and labor
- Improving cash flow and cost structure – successfully reduced
year over year operating expenses by 30%, expect sequential
quarterly improvement in operating cash flow for FY 2024
“Looking forward, we believe the focus on our key priorities, as
well as further executing on our margin and cash flow initiatives,
will position us to profitably capitalize on the increasing
industry demand for leading-edge additive manufacturing solutions,”
concluded Kreger.
($ in Millions, except percentages and
per-share data)
1st Quarter 2024
4th Quarter 2023
1st Quarter 2023
GAAP revenue
$9.8
$2.5
$26.7
GAAP gross margin
(28.8)%
(>100)%
9.5%
GAAP net loss1
$(28.3)
$(56.1)
$36.3
GAAP net loss per diluted share
$(0.11)
$(0.27)
$0.19
Non-GAAP net loss2
$(20.2)
$(58.6)
$17.9
Non-GAAP net loss per diluted share2
$(0.08)
($0.28)
$0.09
Cash and Investments
$11
$31
$64
- Information about Velo3D’s use of non-GAAP information,
including a reconciliation to U.S. GAAP, is provided at the end of
this release under “Non-GAAP Financial Information”. The non-GAAP
financial measures presented in this release should not be
considered as the sole measure of the company’s performance and
should not be considered in isolation from, or as a substitute for,
comparable financial measures calculated in accordance with
generally accepted accounting principles accepted in the United
States.
- Non-GAAP net loss and non-GAAP net loss per diluted share
exclude stock-based compensation expense, fair value adjustments
for the Company’s warrants, contingent earnout and debt derivative
liabilities, and loss on extinguishment of debt.
Summary of First Quarter 2024 Results
Revenue for the first quarter was $10 million. Revenue increased
compared to the fourth quarter of 2023, primarily driven by an
increase in shipments. Given its strong backlog and shipping
forecast exiting the first quarter, the company expects revenue
growth of more than 30% in the second quarter of 2024. Support
services and recurring payment revenue increased sequentially due
to a higher number of systems in operation.
Gross margin for the first quarter was negative 29%. While
shipments increased sequentially, gross margin primarily reflected
the impact of lower fixed cost absorption. The company expects
positive gross margin in the second quarter of 2024 as a result of
increased system shipments, improvements in its system balance of
material costs, benefits from its new long term supply contracts
and higher operating and manufacturing efficiency.
GAAP operating expenses for the first quarter were $18.6 million
compared to $25.9 million in the fourth quarter of 2023. Non-GAAP
operating expenses, excluding re-alignment charges and stock-based
compensation expense of $4.5 million, was $14.1 million, down 15%
sequentially from the fourth quarter of 2023. The company expects
non-GAAP quarterly operating expenses to decline by more than 10%
in the second quarter of 2024 compared to the first quarter of 2024
as the company continues to execute on its cost initiatives.
Net loss for the quarter was $28.3 million and reflected a
non-cash loss of $3.1 million on the change in the fair value of
warrants and contingent earnout liabilities. Non-GAAP net loss, was
$20.2 million in the three months ended March 31, 2024. Adjusted
EBITDA for the quarter, was a loss of $11.7 million. For more
information regarding the company’s non-GAAP financial measures,
see “Non-GAAP Financial Information” below.
The company ended the quarter with $11 million in cash, cash
equivalents and investments. First quarter cash flow, excluding
financing activities, was in line company's forecasts and improved
more than 35% on a year over year basis. The company continues to
expect sequential quarterly improvement in cash flow in 2024.
Guidance
The company continues to expect sequential improvement in
revenue, gross margin and operating expenses in the second quarter
of 2024. The company also believes the continued execution of its
realignment strategy will enable it to reach its goal of free cash
flow breakeven in the second half of 2024.
The company’s 2024 guidance is unchanged and is as follows:
- Q2 2024 revenue growth of more than 30%
- FY 2024 revenue in the range of $80 million to $95 million
- Sequential quarterly improvement in gross margin with fourth
quarter 2024 gross margin of approximately 30%, excluding
non-recurring charges related to its cost reduction
initiatives
- Non-GAAP operating expenses of $40 to $50 million
The company will host a conference call for investors this
afternoon to discuss its first quarter 2024 financial results at
2:00 p.m. Pacific Time. The call will be webcast and can be
accessed from the Events page of the Investor Relations section of
Velo3D’s website at ir.velo3d.com.
About Velo3D:
Velo3D is a metal 3D printing technology company. 3D
printing—also known as additive manufacturing (AM)—has a unique
ability to improve the way high-value metal parts are built.
However, legacy metal AM has been greatly limited in its
capabilities since its invention almost 30 years ago. This has
prevented the technology from being used to create the most
valuable and impactful parts, restricting its use to specific
niches where the limitations were acceptable.
Velo3D has overcome these limitations so engineers can design
and print the parts they want. The company’s solution unlocks a
wide breadth of design freedom and enables customers in space
exploration, aviation, power generation, energy, and semiconductor
to innovate the future in their respective industries. Using
Velo3D, these customers can now build mission-critical metal parts
that were previously impossible to manufacture. The fully
integrated solution includes the Flow print preparation software,
the Sapphire family of printers, and the Assure quality control
system—all of which are powered by Velo3D’s Intelligent Fusion
manufacturing process. The company delivered its first Sapphire
system in 2018 and has been a strategic partner to innovators such
as SpaceX, Honeywell, Honda, Chromalloy, and Lam Research. Velo3D
has been named as one of Fast Company’s Most Innovative Companies
for 2023. For more information, please visit Velo3D.com, or follow
the company on LinkedIn or X (formerly known as Twitter).
VELO, VELO3D, SAPPHIRE and INTELLIGENT FUSION, are registered
trademarks of Velo3D, Inc.; and WITHOUT COMPROMISE, FLOW and ASSURE
are trademarks of Velo3D, Inc. All Rights Reserved © Velo3D,
Inc.
Amounts herein pertaining to March 31, 2024 represent a
preliminary estimate as of the date of this earnings release and
may be revised upon filing our Quarterly Report on Form 10-Q with
the Securities and Exchange Commission (the “SEC”). More
information on our results of operations for the three months ended
March 31, 2024 will be provided upon filing our Quarterly Report on
Form 10-Q with the SEC.
Forward-Looking Statements:
This press release includes “forward-looking statements” within
the meaning of the “safe harbor” provisions of the Private
Securities Litigation Reform Act of 1996. The company’s actual
results may differ from its expectations, estimates and projections
and consequently, you should not rely on these forward-looking
statements as predictions of future events. Words such as “expect”,
“estimate”, “project”, “budget”, “forecast”, “anticipate”,
“intend”, “plan”, “may”, “will”, “could”, “should”, “believes”,
“predicts”, “potential”, “continue”, and similar expressions are
intended to identify such forward-looking statements. These
forward-looking statements include, without limitation, the
company’s guidance for the second quarter and full year 2024
(including the company’s estimates for revenue, gross margin and
non-GAAP operating expenses), the company's expectations regarding
its performance during 2024, the company's strategic realignment
and initiatives, the company’s expectations regarding its liquidity
and capital requirements, and the company’s other expectations,
hopes, beliefs, intentions or strategies for the future. These
forward-looking statements involve significant risks and
uncertainties that could cause the actual results to differ
materially from the expected results. You should carefully consider
the risks and uncertainties described in the “Risk Factors” section
of the company’s Annual Report on Form 10-K for the fiscal year
ended December 31, 2023 (the “FY 2023 10-K”), which was filed by
the company with the SEC on April 4, 2024 and the other documents
filed by the company from time to time with the SEC. These filings
identify and address other important risks and uncertainties that
could cause actual events and results to differ materially from
those contained in the forward-looking statements. Most of these
factors are outside the company’s control and are difficult to
predict. Factors that may cause such differences include, but are
not limited to: (1) the inability of the company to execute its
business plan, which may be affected by, among other things,
competition, the ability of the company to grow and manage growth
profitably, maintain relationships with customers and suppliers and
retain its key employees; (2) the company’s ability to continue as
a going concern; (3) the company’s ability to maintain its listing
on the New York Stock Exchange; (4) the company’s ability to
service and comply with its indebtedness; (5) the company’s ability
to raise additional capital in the future; (6) the possibility that
the company may be adversely affected by other economic, business,
and/or competitive factors; and (7) other risks and uncertainties
indicated from time to time described in the FY 2023 10-K,
including those under “Risk Factors” therein, and in the company’s
other filings with the SEC. The company cautions that the foregoing
list of factors is not exclusive and not to place undue reliance
upon any forward-looking statements, including projections, which
speak only as of the date made. The company does not undertake or
accept any obligation to release publicly any updates or revisions
to any forward-looking statements to reflect any change in its
expectations or any change in events, conditions or circumstances
on which any such statement is based.
The information in the table below sets forth the non-GAAP
financial measures that the company uses in this release. Because
of the limitations associated with these non-GAAP financial
measures, “Non-GAAP Net Loss”, “EBITDA”, “Adjusted EBITDA” and
“Non-GAAP Operating Expenses”, should not be considered in
isolation or as a substitute for performance measures calculated in
accordance with GAAP. The company compensates for these limitations
by relying primarily on its GAAP results and using Non-GAAP Net
Loss, EBITDA, Adjusted EBITDA, and Non-GAAP Operating Expenses on a
supplemental basis. You should review the reconciliation of the
non-GAAP financial measures below and not rely on any single
financial measure to evaluate the company's business.
The following tables reconcile Net income (loss) to Non-GAAP Net
Loss, EBITDA, and Adjusted EBITDA and Total Operating Expenses to
Non-GAAP Operating Expenses during the periods below:
Velo3D, Inc.
NON-GAAP Net Income (Loss)
Reconciliation
(Unaudited)
Three months ended March 31,2024 December
31,2023 March 31,2023 (In thousands, except for
percentages)
% of Rev % of Rev % of Rev
Revenue
$
9,786
100.0
%
$
2,455
100.0
%
$
26,687
100.0
%
Gross Profit
(2,815
)
(28.8
)%
(31,498
)
(1283.0
)%
2,532
9.5
%
Net Income (Loss)
$
(28,314
)
(289.3
)%
$
(56,149
)
(2287.1
)%
$
(36,325
)
(136.1
)%
Stock-based compensation
5,087
52.0
%
5,445
221.8
%
6,236
23.4
%
(Gain) Loss on fair value of warrants
2,620
26.8
%
(2,476
)
(100.9
)%
2,553
9.6
%
(Gain) Loss on fair value of contingent earnout liabilities
437
4.5
%
(12,958
)
(527.8
)%
9,653
36.2
%
Gain on fair value of debt derivative
—
—
%
(11,649
)
(474.5
)%
—
—
%
Loss on extinguishment of debt
—
—
%
19,197
782.0
%
—
—
%
Non-GAAP Net Loss
$
(20,170
)
(206.1
)%
$
(58,590
)
(2386.6
)%
$
(17,883
)
(67.0
)%
Velo3D, Inc.
NON-GAAP Adjusted EBITDA
Reconciliation
(Unaudited)
Three months ended March 31,2024 December
31,2023 March 31,2023 (In thousands, except for
percentages)
% of Rev % of Rev % of Rev
Revenue
$
9,786
100.0
%
$
2,455
100.0
%
$
26,687
100.0
%
Net Income (Loss)
(28,314
)
(289.3
)%
(56,149
)
(2287.1
)%
(36,325
)
(136.1
)%
Interest expense
3,897
39.8
%
6,140
250.1
%
220
0.8
%
Tax expense
4
0.0
%
—
—
%
—
—
%
Depreciation and amortization
4,567
46.7
%
4,794
195.3
%
1,560
5.8
%
EBITDA
$
(19,846
)
(202.8
)%
$
(45,215
)
(1841.8
)%
$
(34,545
)
(129.4
)%
Stock-based compensation
5,087
52.0
%
5,445
221.8
%
6,236
23.4
%
(Gain) Loss on fair value of warrants
2,620
26.8
%
(2,476
)
(100.9
)%
2,553
9.6
%
(Gain) Loss on fair value of contingent earnout liabilities
437
4.5
%
(12,958
)
(527.8
)%
9,653
36.2
%
Gain on fair value of debt derivative
—
—
%
(11,649
)
(474.5
)%
—
—
%
Loss on extinguishment of debt
—
—
%
19,197
782.0
%
—
—
%
Adjusted EBITDA
$
(11,702
)
(119.6
)%
$
(47,656
)
(1941.2
)%
$
(16,103
)
(60.3
)%
Velo3D, Inc.
NON-GAAP Adjusted Operating
Expenses Reconciliation
(Unaudited)
Three months ended March 31,2024 December
31,2023 March 31,2023 (In thousands, except for
percentages)
% of Rev % of Rev % of Rev
Revenue
$
9,786
100.0
%
$
2,455
100.0
%
$
26,687
100.0
%
Operating expenses Research and development
5,043
51.5
%
9,886
402.7
%
10,417
39.0
%
Selling and marketing
4,809
49.1
%
5,175
210.8
%
6,174
23.1
%
General and administrative
8,783
89.8
%
10,877
443.1
%
10,191
38.2
%
Total operating expenses
18,635
190.4
%
25,938
1056.5
%
26,782
100.4
%
Stock-based compensation in operating expenses
4,503
46.0
%
4,780
194.7
%
5,970
22.4
%
Adjusted operating expenses
$
14,132
144.4
%
$
21,158
861.8
%
$
20,812
78.0
%
Velo3D, Inc. CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited)
(in thousands, except share and per share data)
Three
months ended March 31, 2024 December 31, 2023
March 31, 2023 Revenue 3D Printer
$
7,660
$
513
$
24,448
Recurring payment
470
535
575
Support services
1,656
1,407
1,664
Total Revenue
9,786
2,455
26,687
Cost of revenue Cost of 3D Printer
9,394
31,455
22,168
Cost of Recurring Payment
315
398
447
Cost of Support Services
2,892
2,100
1,540
Total cost of revenue
12,601
33,953
24,155
Gross profit (loss)
(2,815
)
(31,498
)
2,532
Operating expenses Research and development
5,043
9,886
10,417
Selling and marketing
4,809
5,175
6,174
General and administrative
8,783
10,877
10,191
Total operating expenses
18,635
25,938
26,782
Loss from operations
(21,450
)
(57,436
)
(24,250
)
Interest expense
(3,897
)
(6,140
)
(220
)
Gain (loss) on fair value of warrants
(2,620
)
2,476
(2,553
)
Gain (loss) on fair value of contingent earnout liabilities
(437
)
12,958
(9,653
)
Gain on fair value of debt derivative
—
11,649
—
Loss on extinguishment of debt
—
(19,197
)
—
Other income, net
94
(459
)
351
Loss before provision for income taxes
(28,310
)
(56,149
)
(36,325
)
Provision for income taxes
(4
)
—
—
Net loss
(28,314
)
(56,149
)
(36,325
)
Net loss per share: Basic
$
(0.11
)
$
(0.27
)
$
(0.19
)
Diluted
$
(0.11
)
$
(0.27
)
$
(0.19
)
Shares used in computing net loss per share: Basic
260,294,161
207,869,092
189,609,021
Diluted
260,294,161
207,869,092
189,609,021
Net loss
$
(28,314
)
$
(56,149
)
$
(36,325
)
Net unrealized holding gain (loss) on available-for-sale
investments
52
156
288
Total comprehensive loss
$
(28,262
)
$
(55,993
)
$
(36,037
)
Velo3D, Inc. CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (In thousands, except share and per share data)
March 31, December 31,
2024
2023
(in thousands, except share and per share data) Assets Current
assets: Cash and cash equivalents
$
7,754
$
24,494
Short-term investments
3,151
6,621
Accounts receivable, net
11,653
9,583
Inventories
62,799
60,816
Contract assets
9,906
7,510
Prepaid expenses and other current assets
3,082
4,000
Total current assets
98,345
113,024
Property and equipment, net
15,253
16,326
Equipment on lease, net
5,482
6,667
Other assets
17,068
17,782
Total assets
$
136,148
$
153,799
Liabilities and Stockholders' Equity Current liabilities:
Accounts payable
$
15,595
$
15,854
Accrued expenses and other current liabilities
6,244
6,491
Debt - current portion
34,300
21,191
Contract liabilities
4,719
5,135
Total current liabilities
60,858
48,671
Long-term debt - less current portion
2,003
11,941
Contingent earnout liabilities
1,893
1,456
Warrant liabilities
14,455
11,835
Other noncurrent liabilities
11,489
11,556
Total liabilities
$
90,698
$
85,459
Commitments and contingencies Stockholders’ equity:
Common stock, $0.00001 par value - 500,000,000 shares authorized at
March 31, 2024 and December 31, 2023, 261,704,589 and 258,418,695
shares issued and outstanding as of March 31, 2024 and December 31,
2023, respectively
2
2
Additional paid-in capital
430,843
425,471
Accumulated other comprehensive income
(44
)
(96
)
Accumulated deficit
(385,351
)
(357,037
)
Total stockholders’ equity
$
45,450
$
68,340
Total liabilities and stockholders’ equity
$
136,148
$
153,799
Velo3D, Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS (Unaudited) (In thousands) Three
Months Ended March 31,2024 March 31,2023 Cash
flows from operating activities Net loss
(28,314
)
(36,325
)
Adjustments to reconcile net loss to net cash used in operating
activities Depreciation and amortization
4,567
1,560
Stock-based compensation
5,087
6,236
Loss on fair value of warrants
2,620
2,553
Loss on fair value of contingent earnout liabilities
437
9,653
Changes in assets and liabilities Accounts receivable
(2,070
)
(5,162
)
Inventories
2,645
(1,425
)
Contract assets
(2,118
)
(1,124
)
Prepaid expenses and other current assets
1,078
2,776
Other assets
396
247
Accounts payable
(4,199
)
(2,694
)
Accrued expenses and other liabilities
(218
)
(1,848
)
Contract liabilities
(416
)
(4,583
)
Other noncurrent liabilities
(18
)
(698
)
Net cash used in operating activities
(20,523
)
(30,834
)
Cash flows from investing activities Purchase of property
and equipment
(6
)
(403
)
Production of equipment for lease to customers
(1
)
(135
)
Proceeds from maturities of available-for-sale investments
3,500
21,500
Net cash provided by investing activities
3,493
20,962
Cash flows from financing activities Proceeds from ATM
offering, net of issuance costs
—
10,458
Proceeds from revolver facility
—
5,000
Repayment of equipment loans
—
(734
)
Issuance of common stock upon exercise of stock options
285
310
Net cash provided by financing activities
285
15,034
Effect of exchange rate changes on cash and cash equivalents
5
(6
)
Net change in cash and cash equivalents
(16,740
)
5,156
Cash and cash equivalents and restricted cash at beginning of
period
25,294
32,783
Cash and cash equivalents and restricted cash at end of period
$
8,554
$
37,939
Supplemental disclosure of cash flow information Cash
paid for interest
$
556
$
220
Supplemental disclosure of non-cash information Unpaid
liabilities related to property and equipment
(59
)
(16
)
Equipment for lease to customers returned to inventory
912
—
The following table provides a
reconciliation of cash, cash equivalents, and restricted cash
reported within the condensed consolidated balance sheets to the
total of such amounts shown on the condensed consolidated
statements of cash flows:
Three Months Ended March 31,2024 March
31,2023 Cash and cash equivalents
$
7,754
$
37,139
Restricted cash (Other assets)
800
800
Total cash and cash equivalents, and restricted cash
$
8,554
$
37,939
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240515971294/en/
Investor Relations: Velo3D Bob Okunski, VP Investor Relations
investors@velo3d.com
Media Contact: Velo3D Dan Sorensen, Senior Director of PR
press@velo3d.com
Velo3D (NYSE:VLD)
Historical Stock Chart
From Aug 2024 to Sep 2024
Velo3D (NYSE:VLD)
Historical Stock Chart
From Sep 2023 to Sep 2024