Velo3D announces fourth quarter and fiscal year 2023 financial results
April 2, 2024
Velo3D, Inc., headquartered in Campbell, California, USA, has announced its financial results for its fourth quarter and fiscal year 2023 ended December 31. Revenue for the fourth quarter was $2 million, reportedly reflecting a reduction in system shipments due to lower than planned bookings in the second half of 2023 and the company’s re-alignment transition. For fiscal year 2023, revenue was $77.6 million compared to $80.8 million in 2022.
“2023 was a transformational year for the company as we re-aligned our strategic and business priorities from driving revenue growth to ensuring customer success, improving system reliability and materially reducing our cost structure,” said Brad Kreger, CEO of Velo3D. “We are pleased with the significant progress we are making related to our key initiatives as we have significantly reduced our costs and materially improved our operational efficiency.”
Given the decline in bookings and challenging industry conditions, the company has instituted a number of strategic sales initiaives in the fourth quarter to drive bookings growth. As a result, as of March 26, 2024, the company has reportedly booked more than $15 million in new orders since mid-December 2023.
“Additionally, our new go to market approach is paying dividends as we have resumed our bookings growth, including signing a number of new, strategic customers in the defence industry with Kratos Defense and Bechtel Plant Machinery. I remain very excited about our market opportunities in 2024, especially in defence given the recent $825 billion Department of Defense funding approval. We have already received one purchase order tied to this approval and expect we will close additional orders by the end of the quarter as a result. I firmly believe the benefits from our re-alignment are just beginning,” Kreger added.
Adjusted EBITDA for the quarter, excluding, among other items, the gain on fair value of warrants, contingent earnout and debt derivative liabilities and the loss on debt extinguishment as well as stock-based compensation expense, was a loss of $51.5 million.
The company ended the quarter with $31 million in cash and investments. Additionally, as a result of its re-alignment initiatives, the company recorded a $27 million non-cash charge related to the valuation of its inventory during the quarter. Fourth quarter free cash flow, excluding financing activities, was in line with the company’s forecasts and improved 35% on a year over year basis. The company expects sequential quarterly improvement in cash flow in 2024.
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