Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Velo3D Announces Second Quarter 2024 Financial Results By: Velo3D, Inc. via Business Wire August 14, 2024 at 16:05 PM EDT Continued Focus on Realignment Priorities Company Institutes Additional Cost Reduction Programs Strategic Review Process Remains Ongoing Q2 2024 sales update 2024 year to date bookings of $21 million; >40% of orders from existing customers $17 million in backlog exiting Q2 2024 Continued defense sector expansion – >20% of 1H’24 shipments Reduced quarterly operating expenses Down 37% year over year Instituted additional cost control programs - ~30% headcount reduction Improved year over year operating cash flow in Q2 2024 Operating and financial conditions remain challenging Velo3D, Inc. (NYSE: VLD), a leading additive manufacturing technology company for mission-critical metal parts, today announced financial results for its second quarter ended June 30, 2024. “Our second quarter results reflected continued execution on our strategic priorities as we added to our year-to-date bookings, maintained a healthy backlog and reduced our operating expenses,” said Brad Kreger, CEO of Velo3D. “Specifically, we continued to expand our defense and space sector footprint during the quarter and expect to add to our backlog in these important industries in the second half of the year. We also further executed on our re-alignment efforts as we reduced our quarterly operating costs by 37% year over year and improved our manufacturing and operational efficiency. However, while we have made significant financial and operational progress year to date, we have made the difficult decision to right size the business as we expect industry conditions to remain challenging into the second half of 2024.” “Our second quarter results also reflected the impact of delays in the funding of certain governmental projects with those system orders now expected in the second half of the year. While we still expect to close these transactions, these delays have negatively impacted our revenue forecast for the balance of the year. As a result, we have instituted a number of material cost reduction programs to reduce expenses and manage our liquidity, including a headcount reduction of approximately 30%. We expect these programs to drive significant annual operating savings and we continue to look at various options to support our balance sheet during our ongoing the strategic review process.” “Looking forward, we believe the continued focus on our key priorities will position us well to capitalize on the increasing industry demand for leading-edge additive manufacturing solutions,” concluded Kreger. ($ in Millions, except percentages and per-share data) 2nd Quarter 2024 2nd Quarter 2023 GAAP revenue $10.3 $25.1 GAAP gross margin (28.0)% 10.1% GAAP net loss1 ($0.2) ($23.2) GAAP net loss per share - basic and diluted ($0.02) ($4.10) Non-GAAP net loss2 ($21.7) ($19.3) Non-GAAP net loss per basic and diluted share2 ($2.57) ($3.42) Information about Velo3D’s use of non-GAAP information, including a reconciliation to U.S. GAAP, is provided at the end of this release under “Non-GAAP Financial Information”. The non-GAAP financial measures presented in this release should not be considered as the sole measure of the company’s performance and should not be considered in isolation from, or as a substitute for, comparable financial measures calculated in accordance with generally accepted accounting principles accepted in the United States. Non-GAAP net loss and non-GAAP net loss per diluted share exclude stock-based compensation expense, fair value adjustments for the Company’s warrants, and contingent earnout. Summary of Second Quarter 2024 Results Revenue for the second quarter was $10.3 million. System revenue increased compared to the first quarter of 2024, primarily driven by a mix shift to the company’s higher priced Sapphire XC systems. Support services and recurring payment revenue declined sequentially compared to the first quarter of 2024 due to the expiration of certain lease contracts as well as a slight reduction in customers with active field service contracts. Gross margin for the second quarter was negative 28% and primarily reflected the impact of lower fixed cost absorption as certain systems orders were delayed to the second half of 2024. GAAP operating expenses for the second quarter were $17.6 million compared to $28.2 million in the second quarter of 2023. Non-GAAP operating expenses, excluding stock-based compensation expense of $3.8 million, was $13.8 million, down 37% compared to the second quarter of 2023. Net loss for the quarter was $0.2 million and reflected a non-cash gain of $27.1 million on the change in the fair value of warrants and contingent earnout liabilities. Non-GAAP net loss was $21.7 million in the three months ended June 30, 2024. Adjusted EBITDA for the quarter, was negative $15.0 million. For more information regarding the company’s non-GAAP financial measures, see “Non-GAAP Financial Information” below. Second quarter cash flow, excluding financing activities, was in line with the company's forecast and improved more than 70% on a year over year basis. The company ended the quarter with $3 million in cash and cash equivalents. Guidance Given the uncertainty of timing of the company’s deferred orders and other factors, the company is withdrawing its previously announced financial guidance for fiscal year 2024. About Velo3D: Velo3D is a metal 3D printing technology company. 3D printing—also known as additive manufacturing (AM)—has a unique ability to improve the way high-value metal parts are built. However, legacy metal AM has been greatly limited in its capabilities since its invention almost 30 years ago. This has prevented the technology from being used to create the most valuable and impactful parts, restricting its use to specific niches where the limitations were acceptable. Velo3D has overcome these limitations so engineers can design and print the parts they want. The company’s solution unlocks a wide breadth of design freedom and enables customers in space exploration, aviation, power generation, energy, and semiconductor to innovate the future in their respective industries. Using Velo3D, these customers can now build mission-critical metal parts that were previously impossible to manufacture. The fully integrated solution includes the Flow print preparation software, the Sapphire family of printers, and the Assure quality control system—all of which are powered by Velo3D’s Intelligent Fusion manufacturing process. The company delivered its first Sapphire system in 2018 and has been a strategic partner to innovators such as SpaceX, Aerojet Rocketdyne, Lockheed Martin, Avio, and General Motors. Velo3D has been named as one of Fast Company’s Most Innovative Companies for 2023. For more information, please visit Velo3D.com, or follow the company on LinkedIn or Twitter. VELO, VELO3D, SAPPHIRE and INTELLIGENT FUSION, are registered trademarks of Velo3D, Inc.; and WITHOUT COMPROMISE, FLOW, FLOW DEVELOPER, and ASSURE are trademarks of Velo3D, Inc. All Rights Reserved © Velo3D, Inc. Amounts herein pertaining to June 30, 2024 represent a preliminary estimate as of the date of this earnings release and may be revised upon filing our Quarterly Report on Form 10-Q with the Securities and Exchange Commission (the “SEC”). More information on our results of operations for the three months ended June 30, 2024 will be provided upon filing our Quarterly Report on Form 10-Q with the SEC. Forward-Looking Statements: This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1996. The company’s actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect”, “estimate”, “project”, “budget”, “forecast”, “anticipate”, “intend”, “plan”, “may”, “will”, “could”, “should”, “believes”, “predicts”, “potential”, “continue”, and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, the company's expectations regarding its performance during the remainder of 2024, the company's strategic realignment and initiatives, the company’s expectations regarding its liquidity and capital requirements, the company’s expectations regarding the timing of deferred orders, the company’s expectations regarding its potential cost savings, and the company’s other expectations, beliefs, intentions or strategies for the future. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. You should carefully consider the risks and uncertainties described in the “Risk Factors” section of the company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (the “FY 2023 10-K”), which was filed by the company with the SEC on April 4, 2024, the “Risk Factors” section of the company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, which will be filed by the company with the SEC no later than August 19, 2024 (the “Q2 2024 10-Q"), and the other documents filed by the company from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Most of these factors are outside the company’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: (1) the inability of the company to execute its business plan, which may be affected by, among other things, competition, the company’s liquidity position//lack of available cash, the ability of the company to grow and manage growth profitably, maintain relationships with customers and suppliers and retain its key employees; (2) the company’s ability to continue as a going concern; (3) the company’s ability to maintain its listing on the New York Stock Exchange; (4) the company’s ability to service and comply with its indebtedness; (5) the company’s ability to raise additional capital in the near-term; (6) the possibility that the company may be adversely affected by other economic, business, and/or competitive factors; and (7) other risks and uncertainties described in the FY 2023 10-K and the Q2 2024 10-Q, including those under “Risk Factors” therein, and in the company’s other filings with the SEC. The company cautions that the foregoing list of factors is not exclusive and not to place undue reliance upon any forward-looking statements, including projections, which speak only as of the date made. The company does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based. Non-GAAP Financial Information The information in the table below sets forth the non-GAAP financial measures that the company uses in this release. Because of the limitations associated with these non-GAAP financial measures, “Non-GAAP Net Loss”, “EBITDA”, “Adjusted EBITDA” and “Non-GAAP Operating Expenses”, should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. The company compensates for these limitations by relying primarily on its GAAP results and using Non-GAAP Net Loss, EBITDA, Adjusted EBITDA, and Non-GAAP Operating Expenses on a supplemental basis. You should review the reconciliation of the non-GAAP financial measures below and not rely on any single financial measure to evaluate the company's business. The following tables reconcile Net income (loss) to Non-GAAP Net Loss, EBITDA, and Adjusted EBITDA and Total Operating Expenses to Non-GAAP Operating Expenses during the periods below: Velo3D, Inc. NON-GAAP Net Loss Reconciliation (Unaudited) Three months ended Six months ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 (In thousands, except for percentages) % of Rev % of Rev % of Rev % of Rev Revenue $ 10,344 100.0 % $ 25,134 100.0 % $ 20,130 100.0 % $ 51,821 100.0 % Gross Profit (2,897 ) (28.0 )% 2,536 10.1 % (5,712 ) (28.4 )% 5,068 9.8 % Net Income (Loss) $ (172 ) (1.7 )% $ (23,201 ) (92.3 )% $ (28,486 ) (141.5 )% $ (59,526 ) (114.9 )% Stock-based compensation 4,247 41.1 % 6,535 26.0 % 9,334 46.4 % 12,771 24.6 % (Gain) Loss on fair value of warrants (25,310 ) (244.7 )% (828 ) (3.3 )% (22,690 ) (112.7 )% 1,725 3.3 % (Gain) Loss on fair value of contingent earnout liabilities (1,824 ) (17.6 )% (1,843 ) (7.3 )% (1,387 ) (6.9 )% 7,810 15.1 % Non-cash cost of issuance of common stock warrants on BEPO Offering 1,313 12.7 % — — % 1,313 6.5 % — — % Non-GAAP Net Loss $ (21,746 ) (210.2 )% $ (19,337 ) (76.9 )% $ (41,916 ) (208.2 )% $ (37,220 ) (71.8 )% Velo3D, Inc. NON-GAAP Adjusted EBITDA Reconciliation (Unaudited) Three months ended Six months ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 (In thousands, except for percentages) % of Rev % of Rev % of Rev % of Rev Revenue $ 10,344 100.0 % $ 25,134 100.0 % $ 20,130 100.0 % $ 51,821 100.0 % Net Income (Loss) (172 ) (1.7 )% (23,201 ) (92.3 )% (28,486 ) (141.5 )% (59,526 ) (114.9 )% Interest expense 5,463 52.8 % 344 1.4 % 9,360 46.5 % 564 1.1 % Provision for income taxes (4 ) (0.0 )% — — % — — % — — % Depreciation and amortization 1,311 12.7 % 1,466 5.8 % 2,707 13.4 % 3,026 5.8 % EBITDA $ 6,598 63.8 % $ (21,391 ) (85.1 )% $ (16,419 ) (81.6 )% $ (55,936 ) (107.9 )% Stock-based compensation 4,247 41.1 % 6,535 26.0 % 9,334 46.4 % 12,771 24.6 % (Gain) Loss on fair value of warrants (25,310 ) (244.7 )% (828 ) (3.3 )% (22,690 ) (112.7 )% 1,725 3.3 % (Gain) Loss on fair value of contingent earnout liabilities (1,824 ) (17.6 )% (1,843 ) (7.3 )% (1,387 ) (6.9 )% 7,810 15.1 % Non-cash cost of issuance of common stock warrants on BEPO Offering 1,313 12.7 % — — % 1,313 6.5 % — — % Adjusted EBITDA $ (14,976 ) (144.8 )% $ (17,527 ) (69.7 )% $ (29,849 ) (148.3 )% $ (33,630 ) (64.9 )% Velo3D, Inc. NON-GAAP Adjusted Operating Expenses Reconciliation (Unaudited) Three months ended Six months ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 (In thousands, except for percentages) % of Rev % of Rev % of Rev % of Rev Revenue $ 10,344 100.0 % $ 25,134 100.0 % $ 20,130 100.0 % $ 51,821 100.0 % Operating expenses Research and development 4,545 43.9 % 12,238 48.7 % 9,588 47.6 % 22,655 43.7 % Selling and marketing 4,273 41.3 % 6,108 24.3 % 9,082 45.1 % 12,282 23.7 % General and administrative 8,823 85.3 % 9,896 39.4 % 17,606 87.5 % 20,087 38.8 % Total operating expenses 17,641 170.5 % 28,242 112.4 % 36,276 180.2 % 55,024 106.2 % Stock-based compensation in operating expenses 3,839 37.1 % 6,091 24.2 % 8,342 41.4 % 12,060 23.3 % Adjusted operating expenses $ 13,802 133.4 % $ 22,151 88.1 % $ 27,934 138.8 % $ 42,964 82.9 % Velo3D, Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited) (In thousands, except share and per share data) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Revenue 3D Printer $ 8,679 $ 23,190 $ 16,339 $ 47,638 Recurring payment 292 35 762 610 Support services 1,373 1,909 3,029 3,573 Total Revenue 10,344 25,134 20,130 51,821 Cost of revenue 3D Printer 10,744 20,052 20,138 42,220 Recurring payment 232 335 547 782 Support services 2,265 2,211 5,157 3,751 Total cost of revenue 13,241 22,598 25,842 46,753 Gross profit (loss) (2,897 ) 2,536 (5,712 ) 5,068 Operating expenses Research and development 4,545 12,238 9,588 22,655 Selling and marketing 4,273 6,108 9,082 12,282 General and administrative 8,805 9,896 17,588 20,087 Total operating expenses 17,623 28,242 36,258 55,024 Loss from operations (20,520 ) (25,706 ) (41,970 ) (49,956 ) Interest expense (5,463 ) (344 ) (9,360 ) (564 ) Gain (loss) on fair value of warrants 25,310 828 22,690 (1,725 ) Gain (loss) on fair value of contingent earnout liabilities 1,824 1,843 1,387 (7,810 ) Other income, net (1,327 ) 178 (1,233 ) 529 Income (loss) before provision for income taxes (176 ) (23,201 ) (28,486 ) (59,526 ) Provision for income taxes 4 — — — Net income (loss) $ (172 ) $ (23,201 ) $ (28,486 ) $ (59,526 ) Net income (loss) per share: Basic $ (0.02 ) $ (4.10 ) $ (3.55 ) $ (10.63 ) Diluted $ (0.02 ) $ (4.10 ) $ (3.55 ) $ (10.63 ) Shares used in computing net income (loss) per share: Basic 8,475,386 5,659,601 8,015,722 5,598,386 Diluted 8,475,386 5,659,601 8,015,722 5,598,386 Velo3D, Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except share and per share data) June 30, December 31, 2024 2023 Assets Current assets: Cash and cash equivalents $ 2,462 $ 24,494 Short-term investments 699 6,621 Accounts receivable, net 8,338 9,583 Inventories 59,521 60,816 Contract assets 8,861 7,510 Prepaid expenses and other current assets 2,289 4,000 Total current assets 82,170 113,024 Property and equipment, net 14,186 16,326 Equipment on lease, net 3,958 6,667 Other assets 16,338 17,782 Total assets $ 116,652 $ 153,799 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 14,008 $ 15,854 Accrued expenses and other current liabilities 5,864 6,491 Debt – current portion 24,592 21,191 Contract liabilities 4,090 5,135 Total current liabilities 48,554 48,671 Long-term debt – less current portion — 11,941 Contingent earnout liabilities 69 1,456 Warrant liabilities 4,933 11,835 Other noncurrent liabilities 10,977 11,556 Total liabilities 64,533 85,459 Commitments and contingencies (Note 13) Stockholders’ equity: Common stock, $0.00001 par value - 500,000,000 shares authorized at June 30, 2024 and December 31, 2023, 8,611,219 and 7,502,478 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively 2 2 Additional paid-in capital 437,642 425,471 Accumulated other comprehensive loss (2 ) (96 ) Accumulated deficit (385,523 ) (357,037 ) Total stockholders’ equity 52,119 68,340 Total liabilities and stockholders’ equity $ 116,652 $ 153,799 Velo3D, Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands) Six Months Ended June 30, 2024 2023 Cash flows from operating activities Net loss $ (28,486 ) $ (59,526 ) Adjustments to reconcile net loss to net cash used in operating activities Depreciation and amortization 2,707 2,983 Amortization of debt discount and deferred financing costs 8,281 43 Stock-based compensation 9,334 12,771 (Gain) loss on fair value of warrants (22,690 ) 1,725 (Gain) loss on fair value of contingent earnout liabilities (1,387 ) 7,810 Non-cash cost of issuance of common stock warrants on BEPO Offering 1,313 — Realized loss on available for sale securities 21 — Changes in assets and liabilities Accounts receivable 1,245 (5,099 ) Inventories 3,891 3,538 Contract assets (1,351 ) (8,323 ) Prepaid expenses and other current assets 1,871 3,609 Other assets 1,369 292 Accounts payable (2,391 ) (1,716 ) Accrued expenses and other liabilities (595 ) (6,249 ) Contract liabilities (345 ) (9,422 ) Other noncurrent liabilities (1,279 ) (1,214 ) Net cash used in operating activities (28,492 ) (58,778 ) Cash flows from investing activities Purchase of property and equipment (8 ) (690 ) Production of equipment for lease to customers — (3,694 ) Sales of available for sale securities 2,474 — Proceeds from maturity of available-for-sale investments 3,500 29,984 Net cash provided by investing activities 5,966 25,600 Cash flows from financing activities Proceeds from ATM offering, net of issuance costs — 15,591 Proceeds from revolver facility — 14,000 Proceeds from equipment loans — 1,600 Repayment of equipment loans — (1,467 ) Proceeds from BEPO Offering, net of issuance costs 10,675 — Repayment of secured notes (10,500 ) — Issuance of common stock upon exercise of stock options 315 350 Net cash provided by financing activities 490 30,074 Effect of exchange rate changes on cash and cash equivalents 4 (11 ) Net change in cash and cash equivalents (22,032 ) (3,115 ) Cash and cash equivalents and restricted cash at beginning of period 25,294 32,783 Cash and cash equivalents and restricted cash at end of period $ 3,262 $ 29,668 The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets to the total of such amounts shown on the condensed consolidated statements of cash flows: June 30, 2024 2023 Cash and cash equivalents $ 2,462 $ 28,868 Restricted cash (Other assets) 800 800 Total cash and cash equivalents and restricted cash $ 3,262 $ 29,668 View source version on businesswire.com: https://www.businesswire.com/news/home/20240814795329/en/Contacts Investor Relations: Velo3D Bob Okunski, VP Investor Relations investors@velo3d.com Media Contact: Velo3D Dan Sorensen, Senior Director of PR dan.sorensen@velo3d.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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Velo3D Announces Second Quarter 2024 Financial Results By: Velo3D, Inc. via Business Wire August 14, 2024 at 16:05 PM EDT Continued Focus on Realignment Priorities Company Institutes Additional Cost Reduction Programs Strategic Review Process Remains Ongoing Q2 2024 sales update 2024 year to date bookings of $21 million; >40% of orders from existing customers $17 million in backlog exiting Q2 2024 Continued defense sector expansion – >20% of 1H’24 shipments Reduced quarterly operating expenses Down 37% year over year Instituted additional cost control programs - ~30% headcount reduction Improved year over year operating cash flow in Q2 2024 Operating and financial conditions remain challenging Velo3D, Inc. (NYSE: VLD), a leading additive manufacturing technology company for mission-critical metal parts, today announced financial results for its second quarter ended June 30, 2024. “Our second quarter results reflected continued execution on our strategic priorities as we added to our year-to-date bookings, maintained a healthy backlog and reduced our operating expenses,” said Brad Kreger, CEO of Velo3D. “Specifically, we continued to expand our defense and space sector footprint during the quarter and expect to add to our backlog in these important industries in the second half of the year. We also further executed on our re-alignment efforts as we reduced our quarterly operating costs by 37% year over year and improved our manufacturing and operational efficiency. However, while we have made significant financial and operational progress year to date, we have made the difficult decision to right size the business as we expect industry conditions to remain challenging into the second half of 2024.” “Our second quarter results also reflected the impact of delays in the funding of certain governmental projects with those system orders now expected in the second half of the year. While we still expect to close these transactions, these delays have negatively impacted our revenue forecast for the balance of the year. As a result, we have instituted a number of material cost reduction programs to reduce expenses and manage our liquidity, including a headcount reduction of approximately 30%. We expect these programs to drive significant annual operating savings and we continue to look at various options to support our balance sheet during our ongoing the strategic review process.” “Looking forward, we believe the continued focus on our key priorities will position us well to capitalize on the increasing industry demand for leading-edge additive manufacturing solutions,” concluded Kreger. ($ in Millions, except percentages and per-share data) 2nd Quarter 2024 2nd Quarter 2023 GAAP revenue $10.3 $25.1 GAAP gross margin (28.0)% 10.1% GAAP net loss1 ($0.2) ($23.2) GAAP net loss per share - basic and diluted ($0.02) ($4.10) Non-GAAP net loss2 ($21.7) ($19.3) Non-GAAP net loss per basic and diluted share2 ($2.57) ($3.42) Information about Velo3D’s use of non-GAAP information, including a reconciliation to U.S. GAAP, is provided at the end of this release under “Non-GAAP Financial Information”. The non-GAAP financial measures presented in this release should not be considered as the sole measure of the company’s performance and should not be considered in isolation from, or as a substitute for, comparable financial measures calculated in accordance with generally accepted accounting principles accepted in the United States. Non-GAAP net loss and non-GAAP net loss per diluted share exclude stock-based compensation expense, fair value adjustments for the Company’s warrants, and contingent earnout. Summary of Second Quarter 2024 Results Revenue for the second quarter was $10.3 million. System revenue increased compared to the first quarter of 2024, primarily driven by a mix shift to the company’s higher priced Sapphire XC systems. Support services and recurring payment revenue declined sequentially compared to the first quarter of 2024 due to the expiration of certain lease contracts as well as a slight reduction in customers with active field service contracts. Gross margin for the second quarter was negative 28% and primarily reflected the impact of lower fixed cost absorption as certain systems orders were delayed to the second half of 2024. GAAP operating expenses for the second quarter were $17.6 million compared to $28.2 million in the second quarter of 2023. Non-GAAP operating expenses, excluding stock-based compensation expense of $3.8 million, was $13.8 million, down 37% compared to the second quarter of 2023. Net loss for the quarter was $0.2 million and reflected a non-cash gain of $27.1 million on the change in the fair value of warrants and contingent earnout liabilities. Non-GAAP net loss was $21.7 million in the three months ended June 30, 2024. Adjusted EBITDA for the quarter, was negative $15.0 million. For more information regarding the company’s non-GAAP financial measures, see “Non-GAAP Financial Information” below. Second quarter cash flow, excluding financing activities, was in line with the company's forecast and improved more than 70% on a year over year basis. The company ended the quarter with $3 million in cash and cash equivalents. Guidance Given the uncertainty of timing of the company’s deferred orders and other factors, the company is withdrawing its previously announced financial guidance for fiscal year 2024. About Velo3D: Velo3D is a metal 3D printing technology company. 3D printing—also known as additive manufacturing (AM)—has a unique ability to improve the way high-value metal parts are built. However, legacy metal AM has been greatly limited in its capabilities since its invention almost 30 years ago. This has prevented the technology from being used to create the most valuable and impactful parts, restricting its use to specific niches where the limitations were acceptable. Velo3D has overcome these limitations so engineers can design and print the parts they want. The company’s solution unlocks a wide breadth of design freedom and enables customers in space exploration, aviation, power generation, energy, and semiconductor to innovate the future in their respective industries. Using Velo3D, these customers can now build mission-critical metal parts that were previously impossible to manufacture. The fully integrated solution includes the Flow print preparation software, the Sapphire family of printers, and the Assure quality control system—all of which are powered by Velo3D’s Intelligent Fusion manufacturing process. The company delivered its first Sapphire system in 2018 and has been a strategic partner to innovators such as SpaceX, Aerojet Rocketdyne, Lockheed Martin, Avio, and General Motors. Velo3D has been named as one of Fast Company’s Most Innovative Companies for 2023. For more information, please visit Velo3D.com, or follow the company on LinkedIn or Twitter. VELO, VELO3D, SAPPHIRE and INTELLIGENT FUSION, are registered trademarks of Velo3D, Inc.; and WITHOUT COMPROMISE, FLOW, FLOW DEVELOPER, and ASSURE are trademarks of Velo3D, Inc. All Rights Reserved © Velo3D, Inc. Amounts herein pertaining to June 30, 2024 represent a preliminary estimate as of the date of this earnings release and may be revised upon filing our Quarterly Report on Form 10-Q with the Securities and Exchange Commission (the “SEC”). More information on our results of operations for the three months ended June 30, 2024 will be provided upon filing our Quarterly Report on Form 10-Q with the SEC. Forward-Looking Statements: This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1996. The company’s actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect”, “estimate”, “project”, “budget”, “forecast”, “anticipate”, “intend”, “plan”, “may”, “will”, “could”, “should”, “believes”, “predicts”, “potential”, “continue”, and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, the company's expectations regarding its performance during the remainder of 2024, the company's strategic realignment and initiatives, the company’s expectations regarding its liquidity and capital requirements, the company’s expectations regarding the timing of deferred orders, the company’s expectations regarding its potential cost savings, and the company’s other expectations, beliefs, intentions or strategies for the future. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. You should carefully consider the risks and uncertainties described in the “Risk Factors” section of the company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (the “FY 2023 10-K”), which was filed by the company with the SEC on April 4, 2024, the “Risk Factors” section of the company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, which will be filed by the company with the SEC no later than August 19, 2024 (the “Q2 2024 10-Q"), and the other documents filed by the company from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Most of these factors are outside the company’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: (1) the inability of the company to execute its business plan, which may be affected by, among other things, competition, the company’s liquidity position//lack of available cash, the ability of the company to grow and manage growth profitably, maintain relationships with customers and suppliers and retain its key employees; (2) the company’s ability to continue as a going concern; (3) the company’s ability to maintain its listing on the New York Stock Exchange; (4) the company’s ability to service and comply with its indebtedness; (5) the company’s ability to raise additional capital in the near-term; (6) the possibility that the company may be adversely affected by other economic, business, and/or competitive factors; and (7) other risks and uncertainties described in the FY 2023 10-K and the Q2 2024 10-Q, including those under “Risk Factors” therein, and in the company’s other filings with the SEC. The company cautions that the foregoing list of factors is not exclusive and not to place undue reliance upon any forward-looking statements, including projections, which speak only as of the date made. The company does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based. Non-GAAP Financial Information The information in the table below sets forth the non-GAAP financial measures that the company uses in this release. Because of the limitations associated with these non-GAAP financial measures, “Non-GAAP Net Loss”, “EBITDA”, “Adjusted EBITDA” and “Non-GAAP Operating Expenses”, should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. The company compensates for these limitations by relying primarily on its GAAP results and using Non-GAAP Net Loss, EBITDA, Adjusted EBITDA, and Non-GAAP Operating Expenses on a supplemental basis. You should review the reconciliation of the non-GAAP financial measures below and not rely on any single financial measure to evaluate the company's business. The following tables reconcile Net income (loss) to Non-GAAP Net Loss, EBITDA, and Adjusted EBITDA and Total Operating Expenses to Non-GAAP Operating Expenses during the periods below: Velo3D, Inc. NON-GAAP Net Loss Reconciliation (Unaudited) Three months ended Six months ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 (In thousands, except for percentages) % of Rev % of Rev % of Rev % of Rev Revenue $ 10,344 100.0 % $ 25,134 100.0 % $ 20,130 100.0 % $ 51,821 100.0 % Gross Profit (2,897 ) (28.0 )% 2,536 10.1 % (5,712 ) (28.4 )% 5,068 9.8 % Net Income (Loss) $ (172 ) (1.7 )% $ (23,201 ) (92.3 )% $ (28,486 ) (141.5 )% $ (59,526 ) (114.9 )% Stock-based compensation 4,247 41.1 % 6,535 26.0 % 9,334 46.4 % 12,771 24.6 % (Gain) Loss on fair value of warrants (25,310 ) (244.7 )% (828 ) (3.3 )% (22,690 ) (112.7 )% 1,725 3.3 % (Gain) Loss on fair value of contingent earnout liabilities (1,824 ) (17.6 )% (1,843 ) (7.3 )% (1,387 ) (6.9 )% 7,810 15.1 % Non-cash cost of issuance of common stock warrants on BEPO Offering 1,313 12.7 % — — % 1,313 6.5 % — — % Non-GAAP Net Loss $ (21,746 ) (210.2 )% $ (19,337 ) (76.9 )% $ (41,916 ) (208.2 )% $ (37,220 ) (71.8 )% Velo3D, Inc. NON-GAAP Adjusted EBITDA Reconciliation (Unaudited) Three months ended Six months ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 (In thousands, except for percentages) % of Rev % of Rev % of Rev % of Rev Revenue $ 10,344 100.0 % $ 25,134 100.0 % $ 20,130 100.0 % $ 51,821 100.0 % Net Income (Loss) (172 ) (1.7 )% (23,201 ) (92.3 )% (28,486 ) (141.5 )% (59,526 ) (114.9 )% Interest expense 5,463 52.8 % 344 1.4 % 9,360 46.5 % 564 1.1 % Provision for income taxes (4 ) (0.0 )% — — % — — % — — % Depreciation and amortization 1,311 12.7 % 1,466 5.8 % 2,707 13.4 % 3,026 5.8 % EBITDA $ 6,598 63.8 % $ (21,391 ) (85.1 )% $ (16,419 ) (81.6 )% $ (55,936 ) (107.9 )% Stock-based compensation 4,247 41.1 % 6,535 26.0 % 9,334 46.4 % 12,771 24.6 % (Gain) Loss on fair value of warrants (25,310 ) (244.7 )% (828 ) (3.3 )% (22,690 ) (112.7 )% 1,725 3.3 % (Gain) Loss on fair value of contingent earnout liabilities (1,824 ) (17.6 )% (1,843 ) (7.3 )% (1,387 ) (6.9 )% 7,810 15.1 % Non-cash cost of issuance of common stock warrants on BEPO Offering 1,313 12.7 % — — % 1,313 6.5 % — — % Adjusted EBITDA $ (14,976 ) (144.8 )% $ (17,527 ) (69.7 )% $ (29,849 ) (148.3 )% $ (33,630 ) (64.9 )% Velo3D, Inc. NON-GAAP Adjusted Operating Expenses Reconciliation (Unaudited) Three months ended Six months ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 (In thousands, except for percentages) % of Rev % of Rev % of Rev % of Rev Revenue $ 10,344 100.0 % $ 25,134 100.0 % $ 20,130 100.0 % $ 51,821 100.0 % Operating expenses Research and development 4,545 43.9 % 12,238 48.7 % 9,588 47.6 % 22,655 43.7 % Selling and marketing 4,273 41.3 % 6,108 24.3 % 9,082 45.1 % 12,282 23.7 % General and administrative 8,823 85.3 % 9,896 39.4 % 17,606 87.5 % 20,087 38.8 % Total operating expenses 17,641 170.5 % 28,242 112.4 % 36,276 180.2 % 55,024 106.2 % Stock-based compensation in operating expenses 3,839 37.1 % 6,091 24.2 % 8,342 41.4 % 12,060 23.3 % Adjusted operating expenses $ 13,802 133.4 % $ 22,151 88.1 % $ 27,934 138.8 % $ 42,964 82.9 % Velo3D, Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited) (In thousands, except share and per share data) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Revenue 3D Printer $ 8,679 $ 23,190 $ 16,339 $ 47,638 Recurring payment 292 35 762 610 Support services 1,373 1,909 3,029 3,573 Total Revenue 10,344 25,134 20,130 51,821 Cost of revenue 3D Printer 10,744 20,052 20,138 42,220 Recurring payment 232 335 547 782 Support services 2,265 2,211 5,157 3,751 Total cost of revenue 13,241 22,598 25,842 46,753 Gross profit (loss) (2,897 ) 2,536 (5,712 ) 5,068 Operating expenses Research and development 4,545 12,238 9,588 22,655 Selling and marketing 4,273 6,108 9,082 12,282 General and administrative 8,805 9,896 17,588 20,087 Total operating expenses 17,623 28,242 36,258 55,024 Loss from operations (20,520 ) (25,706 ) (41,970 ) (49,956 ) Interest expense (5,463 ) (344 ) (9,360 ) (564 ) Gain (loss) on fair value of warrants 25,310 828 22,690 (1,725 ) Gain (loss) on fair value of contingent earnout liabilities 1,824 1,843 1,387 (7,810 ) Other income, net (1,327 ) 178 (1,233 ) 529 Income (loss) before provision for income taxes (176 ) (23,201 ) (28,486 ) (59,526 ) Provision for income taxes 4 — — — Net income (loss) $ (172 ) $ (23,201 ) $ (28,486 ) $ (59,526 ) Net income (loss) per share: Basic $ (0.02 ) $ (4.10 ) $ (3.55 ) $ (10.63 ) Diluted $ (0.02 ) $ (4.10 ) $ (3.55 ) $ (10.63 ) Shares used in computing net income (loss) per share: Basic 8,475,386 5,659,601 8,015,722 5,598,386 Diluted 8,475,386 5,659,601 8,015,722 5,598,386 Velo3D, Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except share and per share data) June 30, December 31, 2024 2023 Assets Current assets: Cash and cash equivalents $ 2,462 $ 24,494 Short-term investments 699 6,621 Accounts receivable, net 8,338 9,583 Inventories 59,521 60,816 Contract assets 8,861 7,510 Prepaid expenses and other current assets 2,289 4,000 Total current assets 82,170 113,024 Property and equipment, net 14,186 16,326 Equipment on lease, net 3,958 6,667 Other assets 16,338 17,782 Total assets $ 116,652 $ 153,799 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 14,008 $ 15,854 Accrued expenses and other current liabilities 5,864 6,491 Debt – current portion 24,592 21,191 Contract liabilities 4,090 5,135 Total current liabilities 48,554 48,671 Long-term debt – less current portion — 11,941 Contingent earnout liabilities 69 1,456 Warrant liabilities 4,933 11,835 Other noncurrent liabilities 10,977 11,556 Total liabilities 64,533 85,459 Commitments and contingencies (Note 13) Stockholders’ equity: Common stock, $0.00001 par value - 500,000,000 shares authorized at June 30, 2024 and December 31, 2023, 8,611,219 and 7,502,478 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively 2 2 Additional paid-in capital 437,642 425,471 Accumulated other comprehensive loss (2 ) (96 ) Accumulated deficit (385,523 ) (357,037 ) Total stockholders’ equity 52,119 68,340 Total liabilities and stockholders’ equity $ 116,652 $ 153,799 Velo3D, Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands) Six Months Ended June 30, 2024 2023 Cash flows from operating activities Net loss $ (28,486 ) $ (59,526 ) Adjustments to reconcile net loss to net cash used in operating activities Depreciation and amortization 2,707 2,983 Amortization of debt discount and deferred financing costs 8,281 43 Stock-based compensation 9,334 12,771 (Gain) loss on fair value of warrants (22,690 ) 1,725 (Gain) loss on fair value of contingent earnout liabilities (1,387 ) 7,810 Non-cash cost of issuance of common stock warrants on BEPO Offering 1,313 — Realized loss on available for sale securities 21 — Changes in assets and liabilities Accounts receivable 1,245 (5,099 ) Inventories 3,891 3,538 Contract assets (1,351 ) (8,323 ) Prepaid expenses and other current assets 1,871 3,609 Other assets 1,369 292 Accounts payable (2,391 ) (1,716 ) Accrued expenses and other liabilities (595 ) (6,249 ) Contract liabilities (345 ) (9,422 ) Other noncurrent liabilities (1,279 ) (1,214 ) Net cash used in operating activities (28,492 ) (58,778 ) Cash flows from investing activities Purchase of property and equipment (8 ) (690 ) Production of equipment for lease to customers — (3,694 ) Sales of available for sale securities 2,474 — Proceeds from maturity of available-for-sale investments 3,500 29,984 Net cash provided by investing activities 5,966 25,600 Cash flows from financing activities Proceeds from ATM offering, net of issuance costs — 15,591 Proceeds from revolver facility — 14,000 Proceeds from equipment loans — 1,600 Repayment of equipment loans — (1,467 ) Proceeds from BEPO Offering, net of issuance costs 10,675 — Repayment of secured notes (10,500 ) — Issuance of common stock upon exercise of stock options 315 350 Net cash provided by financing activities 490 30,074 Effect of exchange rate changes on cash and cash equivalents 4 (11 ) Net change in cash and cash equivalents (22,032 ) (3,115 ) Cash and cash equivalents and restricted cash at beginning of period 25,294 32,783 Cash and cash equivalents and restricted cash at end of period $ 3,262 $ 29,668 The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets to the total of such amounts shown on the condensed consolidated statements of cash flows: June 30, 2024 2023 Cash and cash equivalents $ 2,462 $ 28,868 Restricted cash (Other assets) 800 800 Total cash and cash equivalents and restricted cash $ 3,262 $ 29,668 View source version on businesswire.com: https://www.businesswire.com/news/home/20240814795329/en/Contacts Investor Relations: Velo3D Bob Okunski, VP Investor Relations investors@velo3d.com Media Contact: Velo3D Dan Sorensen, Senior Director of PR dan.sorensen@velo3d.com
Continued Focus on Realignment Priorities Company Institutes Additional Cost Reduction Programs Strategic Review Process Remains Ongoing Q2 2024 sales update 2024 year to date bookings of $21 million; >40% of orders from existing customers $17 million in backlog exiting Q2 2024 Continued defense sector expansion – >20% of 1H’24 shipments Reduced quarterly operating expenses Down 37% year over year Instituted additional cost control programs - ~30% headcount reduction Improved year over year operating cash flow in Q2 2024 Operating and financial conditions remain challenging
Velo3D, Inc. (NYSE: VLD), a leading additive manufacturing technology company for mission-critical metal parts, today announced financial results for its second quarter ended June 30, 2024. “Our second quarter results reflected continued execution on our strategic priorities as we added to our year-to-date bookings, maintained a healthy backlog and reduced our operating expenses,” said Brad Kreger, CEO of Velo3D. “Specifically, we continued to expand our defense and space sector footprint during the quarter and expect to add to our backlog in these important industries in the second half of the year. We also further executed on our re-alignment efforts as we reduced our quarterly operating costs by 37% year over year and improved our manufacturing and operational efficiency. However, while we have made significant financial and operational progress year to date, we have made the difficult decision to right size the business as we expect industry conditions to remain challenging into the second half of 2024.” “Our second quarter results also reflected the impact of delays in the funding of certain governmental projects with those system orders now expected in the second half of the year. While we still expect to close these transactions, these delays have negatively impacted our revenue forecast for the balance of the year. As a result, we have instituted a number of material cost reduction programs to reduce expenses and manage our liquidity, including a headcount reduction of approximately 30%. We expect these programs to drive significant annual operating savings and we continue to look at various options to support our balance sheet during our ongoing the strategic review process.” “Looking forward, we believe the continued focus on our key priorities will position us well to capitalize on the increasing industry demand for leading-edge additive manufacturing solutions,” concluded Kreger. ($ in Millions, except percentages and per-share data) 2nd Quarter 2024 2nd Quarter 2023 GAAP revenue $10.3 $25.1 GAAP gross margin (28.0)% 10.1% GAAP net loss1 ($0.2) ($23.2) GAAP net loss per share - basic and diluted ($0.02) ($4.10) Non-GAAP net loss2 ($21.7) ($19.3) Non-GAAP net loss per basic and diluted share2 ($2.57) ($3.42) Information about Velo3D’s use of non-GAAP information, including a reconciliation to U.S. GAAP, is provided at the end of this release under “Non-GAAP Financial Information”. The non-GAAP financial measures presented in this release should not be considered as the sole measure of the company’s performance and should not be considered in isolation from, or as a substitute for, comparable financial measures calculated in accordance with generally accepted accounting principles accepted in the United States. Non-GAAP net loss and non-GAAP net loss per diluted share exclude stock-based compensation expense, fair value adjustments for the Company’s warrants, and contingent earnout. Summary of Second Quarter 2024 Results Revenue for the second quarter was $10.3 million. System revenue increased compared to the first quarter of 2024, primarily driven by a mix shift to the company’s higher priced Sapphire XC systems. Support services and recurring payment revenue declined sequentially compared to the first quarter of 2024 due to the expiration of certain lease contracts as well as a slight reduction in customers with active field service contracts. Gross margin for the second quarter was negative 28% and primarily reflected the impact of lower fixed cost absorption as certain systems orders were delayed to the second half of 2024. GAAP operating expenses for the second quarter were $17.6 million compared to $28.2 million in the second quarter of 2023. Non-GAAP operating expenses, excluding stock-based compensation expense of $3.8 million, was $13.8 million, down 37% compared to the second quarter of 2023. Net loss for the quarter was $0.2 million and reflected a non-cash gain of $27.1 million on the change in the fair value of warrants and contingent earnout liabilities. Non-GAAP net loss was $21.7 million in the three months ended June 30, 2024. Adjusted EBITDA for the quarter, was negative $15.0 million. For more information regarding the company’s non-GAAP financial measures, see “Non-GAAP Financial Information” below. Second quarter cash flow, excluding financing activities, was in line with the company's forecast and improved more than 70% on a year over year basis. The company ended the quarter with $3 million in cash and cash equivalents. Guidance Given the uncertainty of timing of the company’s deferred orders and other factors, the company is withdrawing its previously announced financial guidance for fiscal year 2024. About Velo3D: Velo3D is a metal 3D printing technology company. 3D printing—also known as additive manufacturing (AM)—has a unique ability to improve the way high-value metal parts are built. However, legacy metal AM has been greatly limited in its capabilities since its invention almost 30 years ago. This has prevented the technology from being used to create the most valuable and impactful parts, restricting its use to specific niches where the limitations were acceptable. Velo3D has overcome these limitations so engineers can design and print the parts they want. The company’s solution unlocks a wide breadth of design freedom and enables customers in space exploration, aviation, power generation, energy, and semiconductor to innovate the future in their respective industries. Using Velo3D, these customers can now build mission-critical metal parts that were previously impossible to manufacture. The fully integrated solution includes the Flow print preparation software, the Sapphire family of printers, and the Assure quality control system—all of which are powered by Velo3D’s Intelligent Fusion manufacturing process. The company delivered its first Sapphire system in 2018 and has been a strategic partner to innovators such as SpaceX, Aerojet Rocketdyne, Lockheed Martin, Avio, and General Motors. Velo3D has been named as one of Fast Company’s Most Innovative Companies for 2023. For more information, please visit Velo3D.com, or follow the company on LinkedIn or Twitter. VELO, VELO3D, SAPPHIRE and INTELLIGENT FUSION, are registered trademarks of Velo3D, Inc.; and WITHOUT COMPROMISE, FLOW, FLOW DEVELOPER, and ASSURE are trademarks of Velo3D, Inc. All Rights Reserved © Velo3D, Inc. Amounts herein pertaining to June 30, 2024 represent a preliminary estimate as of the date of this earnings release and may be revised upon filing our Quarterly Report on Form 10-Q with the Securities and Exchange Commission (the “SEC”). More information on our results of operations for the three months ended June 30, 2024 will be provided upon filing our Quarterly Report on Form 10-Q with the SEC. Forward-Looking Statements: This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1996. The company’s actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect”, “estimate”, “project”, “budget”, “forecast”, “anticipate”, “intend”, “plan”, “may”, “will”, “could”, “should”, “believes”, “predicts”, “potential”, “continue”, and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, the company's expectations regarding its performance during the remainder of 2024, the company's strategic realignment and initiatives, the company’s expectations regarding its liquidity and capital requirements, the company’s expectations regarding the timing of deferred orders, the company’s expectations regarding its potential cost savings, and the company’s other expectations, beliefs, intentions or strategies for the future. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. You should carefully consider the risks and uncertainties described in the “Risk Factors” section of the company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (the “FY 2023 10-K”), which was filed by the company with the SEC on April 4, 2024, the “Risk Factors” section of the company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, which will be filed by the company with the SEC no later than August 19, 2024 (the “Q2 2024 10-Q"), and the other documents filed by the company from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Most of these factors are outside the company’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: (1) the inability of the company to execute its business plan, which may be affected by, among other things, competition, the company’s liquidity position//lack of available cash, the ability of the company to grow and manage growth profitably, maintain relationships with customers and suppliers and retain its key employees; (2) the company’s ability to continue as a going concern; (3) the company’s ability to maintain its listing on the New York Stock Exchange; (4) the company’s ability to service and comply with its indebtedness; (5) the company’s ability to raise additional capital in the near-term; (6) the possibility that the company may be adversely affected by other economic, business, and/or competitive factors; and (7) other risks and uncertainties described in the FY 2023 10-K and the Q2 2024 10-Q, including those under “Risk Factors” therein, and in the company’s other filings with the SEC. The company cautions that the foregoing list of factors is not exclusive and not to place undue reliance upon any forward-looking statements, including projections, which speak only as of the date made. The company does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based. Non-GAAP Financial Information The information in the table below sets forth the non-GAAP financial measures that the company uses in this release. Because of the limitations associated with these non-GAAP financial measures, “Non-GAAP Net Loss”, “EBITDA”, “Adjusted EBITDA” and “Non-GAAP Operating Expenses”, should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. The company compensates for these limitations by relying primarily on its GAAP results and using Non-GAAP Net Loss, EBITDA, Adjusted EBITDA, and Non-GAAP Operating Expenses on a supplemental basis. You should review the reconciliation of the non-GAAP financial measures below and not rely on any single financial measure to evaluate the company's business. The following tables reconcile Net income (loss) to Non-GAAP Net Loss, EBITDA, and Adjusted EBITDA and Total Operating Expenses to Non-GAAP Operating Expenses during the periods below: Velo3D, Inc. NON-GAAP Net Loss Reconciliation (Unaudited) Three months ended Six months ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 (In thousands, except for percentages) % of Rev % of Rev % of Rev % of Rev Revenue $ 10,344 100.0 % $ 25,134 100.0 % $ 20,130 100.0 % $ 51,821 100.0 % Gross Profit (2,897 ) (28.0 )% 2,536 10.1 % (5,712 ) (28.4 )% 5,068 9.8 % Net Income (Loss) $ (172 ) (1.7 )% $ (23,201 ) (92.3 )% $ (28,486 ) (141.5 )% $ (59,526 ) (114.9 )% Stock-based compensation 4,247 41.1 % 6,535 26.0 % 9,334 46.4 % 12,771 24.6 % (Gain) Loss on fair value of warrants (25,310 ) (244.7 )% (828 ) (3.3 )% (22,690 ) (112.7 )% 1,725 3.3 % (Gain) Loss on fair value of contingent earnout liabilities (1,824 ) (17.6 )% (1,843 ) (7.3 )% (1,387 ) (6.9 )% 7,810 15.1 % Non-cash cost of issuance of common stock warrants on BEPO Offering 1,313 12.7 % — — % 1,313 6.5 % — — % Non-GAAP Net Loss $ (21,746 ) (210.2 )% $ (19,337 ) (76.9 )% $ (41,916 ) (208.2 )% $ (37,220 ) (71.8 )% Velo3D, Inc. NON-GAAP Adjusted EBITDA Reconciliation (Unaudited) Three months ended Six months ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 (In thousands, except for percentages) % of Rev % of Rev % of Rev % of Rev Revenue $ 10,344 100.0 % $ 25,134 100.0 % $ 20,130 100.0 % $ 51,821 100.0 % Net Income (Loss) (172 ) (1.7 )% (23,201 ) (92.3 )% (28,486 ) (141.5 )% (59,526 ) (114.9 )% Interest expense 5,463 52.8 % 344 1.4 % 9,360 46.5 % 564 1.1 % Provision for income taxes (4 ) (0.0 )% — — % — — % — — % Depreciation and amortization 1,311 12.7 % 1,466 5.8 % 2,707 13.4 % 3,026 5.8 % EBITDA $ 6,598 63.8 % $ (21,391 ) (85.1 )% $ (16,419 ) (81.6 )% $ (55,936 ) (107.9 )% Stock-based compensation 4,247 41.1 % 6,535 26.0 % 9,334 46.4 % 12,771 24.6 % (Gain) Loss on fair value of warrants (25,310 ) (244.7 )% (828 ) (3.3 )% (22,690 ) (112.7 )% 1,725 3.3 % (Gain) Loss on fair value of contingent earnout liabilities (1,824 ) (17.6 )% (1,843 ) (7.3 )% (1,387 ) (6.9 )% 7,810 15.1 % Non-cash cost of issuance of common stock warrants on BEPO Offering 1,313 12.7 % — — % 1,313 6.5 % — — % Adjusted EBITDA $ (14,976 ) (144.8 )% $ (17,527 ) (69.7 )% $ (29,849 ) (148.3 )% $ (33,630 ) (64.9 )% Velo3D, Inc. NON-GAAP Adjusted Operating Expenses Reconciliation (Unaudited) Three months ended Six months ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 (In thousands, except for percentages) % of Rev % of Rev % of Rev % of Rev Revenue $ 10,344 100.0 % $ 25,134 100.0 % $ 20,130 100.0 % $ 51,821 100.0 % Operating expenses Research and development 4,545 43.9 % 12,238 48.7 % 9,588 47.6 % 22,655 43.7 % Selling and marketing 4,273 41.3 % 6,108 24.3 % 9,082 45.1 % 12,282 23.7 % General and administrative 8,823 85.3 % 9,896 39.4 % 17,606 87.5 % 20,087 38.8 % Total operating expenses 17,641 170.5 % 28,242 112.4 % 36,276 180.2 % 55,024 106.2 % Stock-based compensation in operating expenses 3,839 37.1 % 6,091 24.2 % 8,342 41.4 % 12,060 23.3 % Adjusted operating expenses $ 13,802 133.4 % $ 22,151 88.1 % $ 27,934 138.8 % $ 42,964 82.9 % Velo3D, Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited) (In thousands, except share and per share data) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Revenue 3D Printer $ 8,679 $ 23,190 $ 16,339 $ 47,638 Recurring payment 292 35 762 610 Support services 1,373 1,909 3,029 3,573 Total Revenue 10,344 25,134 20,130 51,821 Cost of revenue 3D Printer 10,744 20,052 20,138 42,220 Recurring payment 232 335 547 782 Support services 2,265 2,211 5,157 3,751 Total cost of revenue 13,241 22,598 25,842 46,753 Gross profit (loss) (2,897 ) 2,536 (5,712 ) 5,068 Operating expenses Research and development 4,545 12,238 9,588 22,655 Selling and marketing 4,273 6,108 9,082 12,282 General and administrative 8,805 9,896 17,588 20,087 Total operating expenses 17,623 28,242 36,258 55,024 Loss from operations (20,520 ) (25,706 ) (41,970 ) (49,956 ) Interest expense (5,463 ) (344 ) (9,360 ) (564 ) Gain (loss) on fair value of warrants 25,310 828 22,690 (1,725 ) Gain (loss) on fair value of contingent earnout liabilities 1,824 1,843 1,387 (7,810 ) Other income, net (1,327 ) 178 (1,233 ) 529 Income (loss) before provision for income taxes (176 ) (23,201 ) (28,486 ) (59,526 ) Provision for income taxes 4 — — — Net income (loss) $ (172 ) $ (23,201 ) $ (28,486 ) $ (59,526 ) Net income (loss) per share: Basic $ (0.02 ) $ (4.10 ) $ (3.55 ) $ (10.63 ) Diluted $ (0.02 ) $ (4.10 ) $ (3.55 ) $ (10.63 ) Shares used in computing net income (loss) per share: Basic 8,475,386 5,659,601 8,015,722 5,598,386 Diluted 8,475,386 5,659,601 8,015,722 5,598,386 Velo3D, Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except share and per share data) June 30, December 31, 2024 2023 Assets Current assets: Cash and cash equivalents $ 2,462 $ 24,494 Short-term investments 699 6,621 Accounts receivable, net 8,338 9,583 Inventories 59,521 60,816 Contract assets 8,861 7,510 Prepaid expenses and other current assets 2,289 4,000 Total current assets 82,170 113,024 Property and equipment, net 14,186 16,326 Equipment on lease, net 3,958 6,667 Other assets 16,338 17,782 Total assets $ 116,652 $ 153,799 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 14,008 $ 15,854 Accrued expenses and other current liabilities 5,864 6,491 Debt – current portion 24,592 21,191 Contract liabilities 4,090 5,135 Total current liabilities 48,554 48,671 Long-term debt – less current portion — 11,941 Contingent earnout liabilities 69 1,456 Warrant liabilities 4,933 11,835 Other noncurrent liabilities 10,977 11,556 Total liabilities 64,533 85,459 Commitments and contingencies (Note 13) Stockholders’ equity: Common stock, $0.00001 par value - 500,000,000 shares authorized at June 30, 2024 and December 31, 2023, 8,611,219 and 7,502,478 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively 2 2 Additional paid-in capital 437,642 425,471 Accumulated other comprehensive loss (2 ) (96 ) Accumulated deficit (385,523 ) (357,037 ) Total stockholders’ equity 52,119 68,340 Total liabilities and stockholders’ equity $ 116,652 $ 153,799 Velo3D, Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands) Six Months Ended June 30, 2024 2023 Cash flows from operating activities Net loss $ (28,486 ) $ (59,526 ) Adjustments to reconcile net loss to net cash used in operating activities Depreciation and amortization 2,707 2,983 Amortization of debt discount and deferred financing costs 8,281 43 Stock-based compensation 9,334 12,771 (Gain) loss on fair value of warrants (22,690 ) 1,725 (Gain) loss on fair value of contingent earnout liabilities (1,387 ) 7,810 Non-cash cost of issuance of common stock warrants on BEPO Offering 1,313 — Realized loss on available for sale securities 21 — Changes in assets and liabilities Accounts receivable 1,245 (5,099 ) Inventories 3,891 3,538 Contract assets (1,351 ) (8,323 ) Prepaid expenses and other current assets 1,871 3,609 Other assets 1,369 292 Accounts payable (2,391 ) (1,716 ) Accrued expenses and other liabilities (595 ) (6,249 ) Contract liabilities (345 ) (9,422 ) Other noncurrent liabilities (1,279 ) (1,214 ) Net cash used in operating activities (28,492 ) (58,778 ) Cash flows from investing activities Purchase of property and equipment (8 ) (690 ) Production of equipment for lease to customers — (3,694 ) Sales of available for sale securities 2,474 — Proceeds from maturity of available-for-sale investments 3,500 29,984 Net cash provided by investing activities 5,966 25,600 Cash flows from financing activities Proceeds from ATM offering, net of issuance costs — 15,591 Proceeds from revolver facility — 14,000 Proceeds from equipment loans — 1,600 Repayment of equipment loans — (1,467 ) Proceeds from BEPO Offering, net of issuance costs 10,675 — Repayment of secured notes (10,500 ) — Issuance of common stock upon exercise of stock options 315 350 Net cash provided by financing activities 490 30,074 Effect of exchange rate changes on cash and cash equivalents 4 (11 ) Net change in cash and cash equivalents (22,032 ) (3,115 ) Cash and cash equivalents and restricted cash at beginning of period 25,294 32,783 Cash and cash equivalents and restricted cash at end of period $ 3,262 $ 29,668 The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets to the total of such amounts shown on the condensed consolidated statements of cash flows: June 30, 2024 2023 Cash and cash equivalents $ 2,462 $ 28,868 Restricted cash (Other assets) 800 800 Total cash and cash equivalents and restricted cash $ 3,262 $ 29,668 View source version on businesswire.com: https://www.businesswire.com/news/home/20240814795329/en/
Investor Relations: Velo3D Bob Okunski, VP Investor Relations investors@velo3d.com Media Contact: Velo3D Dan Sorensen, Senior Director of PR dan.sorensen@velo3d.com
