Velo3D, Inc. (NYSE: VLD), a leading additive manufacturing technology company for mission-critical metal parts, today announced financial results for its first fiscal quarter of 2022.
Revenue for the first quarter was $12.2 million, an increase of 17% compared to the fourth quarter of 2021 and more than 900% year over year. The Company shipped 8 systems in the first quarter. The improvement in revenue was 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.
Gross margin for the quarter was 0% and reflects the impact of launch customer pricing for the Company’s Sapphire XC systems shipped during the quarter. 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 Company remains on plan to achieve a gross margin of 30 percent in the fourth quarter of this year.
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 (gain) 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 (gain) on fair value of contingent earnout liabilities and stock-based compensation, was a loss of $22.0 million. For more information regarding the Company’s non-GAAP financial measures, see “Non-GAAP Financial Information” below.
The Company ended the quarter with a strong balance sheet with $186 million in cash and investments. As a result, the Company believes it has the liquidity for ongoing technology investments as well as providing the resources needed to fund its growth plans.
| ($ in Millions, except percentages and per-share data) | 1st Quarter 2022 | 4th Quarter 2021 | 1st Quarter 2021 |
| GAAP revenue | $12.2 | $10.4 | $1.2 |
| GAAP gross margin | 0% | 16% | (33%) |
| GAAP net loss1 | ($65.3) | ($14.4) | ($13.5) |
| GAAP net loss per diluted share | ($0.36) | ($0.08) | ($0.85) |
| Non-GAAP net loss2 | ($23.1) | ($17.5) | ($11.7) |
| Non-GAAP net loss per diluted share2 | ($0.13) | ($0.10) | ($0.73) |
| Cash and Investments | $186 | $223 | $16 |
Information about Velo3d’s use of non-GAAP information, including a reconciliation to U.S. GAAP, is provided at the end of this release.
- Reconciliations to U.S. generally accepted accounting principles (GAAP) financial measures are presented below under “Non-GAAP Financial Information”.
- Non-GAAP net loss and non-GAAP net loss per diluted share exclude stock-based compensation expense, and fair value adjustments for the Company’s warrants and earnout liabilities.
Guidance
For fiscal year 2022, given its strong first quarter results and increasing backlog, the Company’s previous guidance remains unchanged.
- Revenue – $89 million
- Total bookings – 47-49
- Total shipments – 47-49
- Sapphire XC shipments – 23-25
- New customer additions – 23-25
The Company will host a conference call for investors this afternoon to discuss its first quarter 2022 performance 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/.
For the full release with financial tables, including GAAP to non-GAAP reconciliation, visit ir.velo3d.com.
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