Velo3D, Campbell, California, USA, has announced financial results for its first fiscal quarter of 2022, reporting revenue of $12.2 million, an increase of 17% compared to the fourth quarter of 2021 and more than 900% year on year. The improvement in revenue was said to have been driven by an increase in average selling price, as well as higher revenue from support services and recurring payment transactions due to the company’s increasing installed base of systems.
“Strong execution enabled us to post our third straight quarter of revenue growth as a public company, add to our backlog and expand our new customer footprint,” stated Benny Buller, CEO. “Demand for our industry leading Sapphire systems remains high as our total backlog exiting the quarter increased more than 80% year over year to $55 million and we now have more than 75% of our 2022 revenue either recognised or booked. When combined with our strong first quarter bookings momentum of seven systems, we now have significant visibility and increasing confidence in our ability to achieve our 2022 outlook.”
The gross margin for the quarter was 0% and is said to reflect the impact of launch customer pricing for the company’s Sapphire XC systems shipped during the quarter (a total of eight). This pricing is expected to impact gross margin through the third quarter of 2022 as the company completes the delivery of its remaining Sapphire XC systems under its launch customer contract. With the completion of its launch customer contract and ongoing material improvements in production efficiencies, the Velo3D is said to remain on track to achieve a gross margin of 30% in the fourth quarter of this year.
“We continued to successfully manage our supply chain to meet our production goals despite the ongoing global challenges,” Buller added. “Our European market expansion also remains on plan and we expect to add a significant number of new customers in this growing market by the end of the year. Finally, we reached a key milestone as we started volume production of our Sapphire XC system during the quarter.”
“We are continuing to cement ourselves as a differentiated technology leader in high value manufacturing. Our metal Additive Manufacturing technology changes the way products in Aerospace, Energy, Power and other industrial segments are designed and produced,” he continued. “It is used to make some of the most critical parts in these products and we are maintaining our focus on driving the vast blue ocean market opportunity we see before us. This success is reflected in our first quarter results as our customers are using our differentiated technology to design and build the high value metal parts they need to succeed without compromise.”
Operating expenses for the quarter rose sequentially to $28.2 million, primarily the result of increased sales and marketing costs to fund the company’s global expansion plans as well as higher research and development investment. Non-GAAP operating expenses, which excluded stock-based compensation expense of $5.0 million, was $23.2 million.
Net loss for the quarter was $65.3 million. Non-GAAP net loss, which excludes loss on fair value of warrants, loss on fair value of contingent earnout liabilities and stock-based compensation, was $23.1 million. Adjusted EBITDA for the quarter, excluding loss on fair value of warrants, loss on fair value of contingent earnout liabilities and stock-based compensation, was a loss of $22.0 million.
The company ended the quarter with a strong balance sheet with $186 million in cash and investments. As a result, the Velo3D believes it has the liquidity for ongoing technology investments as well as providing the resources needed to fund its growth plans.
“Looking forward, given our first quarter execution, continued bookings growth, revenue visibility through our backlog and the successful ramp up of our Sapphire XC production, we are increasingly confident in our ability to meet our 2022 revenue guidance of $89 million,” concluded Buller.