Velo3D reports 28% revenue increase in second quarter 2023
August 24, 2023
Velo3D, Inc, headquartered in Campbell, California, USA, has announced its financial results for its second quarter, ended June 30, 2023, reporting a revenue of $25.1 million – a 28% increase from the previous year. Operating expenses for the second quarter were $28.7 million, compared to $27 million in the first quarter of 2023. Non-GAAP operating expenses, which excludes stock-based compensation expense of $6.5 million, was $22.2 million.
The net loss for the quarter was $23.2 million, which included a gain of $2.7 million on the fair value of warrants and contingent earnout liabilities. The non-GAAP net loss, which excludes, among other items, the gain on fair value of warrants and contingent earnout liabilities, as well as stock-based compensation expense, was $19.3 million for the three months ended June 30, 2023. Adjusted EBITDA for the quarter, excluding the same metrics, was a loss of $17.5 million.
“Our second quarter results reflect strong execution as we expanded our global footprint, improved manufacturing cycle times through our efficiency initiatives and prudently managed our costs,” said Benny Buller, CEO of Velo3D. “Demand for our industry leading technology remains strong as we booked a record amount of new customer orders during the quarter and exited Q223 with a growing pipeline across a diverse set of industries. In particular, we continued to expand our presence in the defence vertical while maintaining our leading position as a preferred supplier to the global space industry. However, despite these positive demand trends, second quarter bookings came in below plan, primarily due to delays in booking certain orders, which will impact our second half revenue forecast. As a result, we now expect our fiscal year 2023 revenue to be in the range of $105 million to $115 million. Importantly, our path to profitability remains clear and with the announcement of our registered direct offering of $70 million of senior secured convertible notes, we believe we have strong liquidity to reach our goal of sustained profitability.”
Buller continued, “Operationally, manufacturing cycle times continue to improve for our Sapphire XC and Sapphire XC 1MZ systems. As these systems have become the majority of our quarterly shipments, we are now seeing the benefits of scale in our production processes. This scale, combined with the continued improvement in materials costs and manufacturing efficiency, has enabled us to improve our gross margin in the second quarter. We also remain committed to managing our expense structure and expect to materially reduce our operating costs in the second half of the year.”
“Finally, we continue to execute on our 2023 strategic priorities and our focus for the balance of the year continues to be on margin expansion, reducing our manufacturing and operating costs and improving cash flow. We are excited about the future as demand for our industry leading technology remains high as customers continue to look to Velo3D to manufacture the critical, high value metal parts they need,” Buller concluded.
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