Velo3D announces $17 million new orders in first quarter 2024
May 20, 2024
Velo3D, Inc., headquartered in Campbell, California, USA, has announced the financial results for its first quarter ended March 31, 2024. The revenue for Q1 stood at $10 million, an increase compared to Q4 2023. Given its backlog and shipping forecast exiting the first quarter, the company has stated that it expects revenue growth of more than 30% in the second quarter of 2024.
Net loss for the quarter was $28.3 million, reflecting a non-cash loss of $3.1 million reported to be due to the change in the fair value of warrants and contingent earnout liabilities. Adjusted EBITDA for the quarter was a loss of $11.7 million.
“We were pleased with our first quarter performance as we continued to successfully execute on our strategic priorities,” stated 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 defence sector, as we added three new defence 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.”
The company expects a 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.
“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 capitalise on the increasing industry demand for leading-edge additive manufacturing solutions,” concluded Kreger.
Velo3D ended the quarter with $11 million in cash, cash equivalents and investments. First quarter cash flow, excluding financing activities, was in line with the company’s forecasts and improved by more than 35% on a year-over-year basis. The company continues to expect sequential quarterly improvement in cash flow in 2025.
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