Velo3D, Inc. (NYSE: VLD), a leading additive manufacturing technology company for mission-critical metal parts, reported that it has generated $12 million in sales in Q1 2022, which represents an increase of 17% compared to Q4 2021 and more than 900% year over year.
“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,” said Benny Buller, CEO of Velo3D. “Demand for our industry-leading Sapphire systems remains high as our total backlog exiting the quarter increased more than 80 percent year over year to $55 million and we now have more than 75 percent of our 2022 revenue either recognized or booked. When combined with our strong first quarter booking momentum of 7 systems, we now have significant visibility and increasing confidence in our ability to achieve our 2022 outlook. Additionally, we continued to successfully manage our supply chain to meet our production goals despite the ongoing global challenges. 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. 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,” continued Buller.
“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.
Q1 2022 results
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.
The 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 expenses of $5.0 million, were $23.2 million.
Net loss for the quarter was $65.3 million. Non-GAAP net loss, which excludes loss on the fair value of warrants, loss on the fair value of contingent earnout liabilities, and stock-based compensation, was $23.1 million. Adjusted EBITDA for the quarter, excluding loss on the fair value of warrants, loss on the 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.
For the fiscal year 2022, given its strong first quarter results and increasing backlog, the Company’s previous guidance remains unchanged. Targets are $89 million for FY 2022 revenues with total bookings of 47-49 systems, total shipments of 47-49 systems, of which 23-25 Sapphire XC shipments and 23-25 new customer additions