3D printer manufacturer Velo3D can look back on a challenging 2023 financial year. Although the company recorded a decline in sales compared to 2022, it focused on realigning its strategic priorities. The focus was on ensuring customer satisfaction, improving system reliability and significantly reducing the cost structure.
“2023 was a transformative year in which we shifted our priorities from revenue growth to customer success, improved reliability and significant cost reductions,” explained CEO Brad Kreger. Specifically, response times for deployments were reduced by over 45 percent and system downtime was cut by 10 percent.
The new sales approaches also paid off. Since mid-December 2023, Velo3D has recorded bookings of over 15 million US dollars, more than half of which come from existing customers. According to Kreger, important new customers from the defense industry in particular contributed to this.
In the past quarter, Velo3D generated a turnover of 1.8 million US dollars with a negative gross margin. The net loss amounted to 58.2 million US dollars, which, however, included value adjustments for derivatives and debt.
Operating expenses in the quarter were reduced by over 15 percent compared to the previous quarter. For the first quarter of 2024, the company even expects an over 30% reduction in adjusted operating expenses compared to the third quarter of 2023.
For the full year 2024, Velo3D is forecasting revenue of between USD 80 and 95 million with a gross margin of 20 to 30 percent. In the fourth quarter, the margin is even expected to reach around 30 percent. The company is also aiming to reach cash flow breakeven in the second half of 2024.
More details on the figures can be found here.
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