Velo3D, Inc., a leading additive manufacturing technology company for mission-critical metal parts, announced financial results for its fourth quarter and fiscal year ended December 31, 2021.
“Our performance reflects strong execution as we exceeded our fourth quarter and fiscal year 2021 revenue forecast, surpassed our bookings target and achieved a key strategic milestone as we shipped our first Sapphire XC system which will be a significant driver of our growth in 2022,” said Benny Buller, CEO of Velo3D. “Overall, 2021 was an important and successful year for Velo3D, and I’m enormously proud of everything we achieved. Customer demand for our industry leading Sapphire systems remains high as we help some of the world’s most innovative companies create the future using our advanced additive manufacturing technology”.
“In addition to shipping a record number of systems in the fourth quarter, our strong bookings reflected increasing demand across a number of verticals as we execute on our land and expand strategy. For the year, shipments increased more than 75% and we continued to add new customers, including our first customer in Europe, which is a significant market opportunity we are looking to capitalize on this year. Also, we believe we remain well positioned to achieve our 2022 goals given our fourth quarter execution as well as the strong revenue visibility provided by our current backlog of 23 systems, including 18 Sapphire XC systems. As a result, we are reiterating our previous 2022 revenue guidance of $89 million,” continued Buller.
“Looking forward, we are excited about our long-term opportunities given our industry leading technology, continued execution on our growth plans and strong customer demand. Specifically for 2022, our strategic priorities will focus on expanding our new and existing customer footprint in both the U.S and Europe reflecting the increasing demand for our Sapphire XC system. Additionally, we will continue the buildout of our new manufacturing facility which will enable us to more than double annual shipments in 2022. Finally, we will remain focused on delivering the highest level of service possible to enable our customers to design and build the high value metal parts they need to succeed-without compromise,” concluded Buller.
|
($ Millions, except percentages and per-share data) |
4th Quarter 2021 |
3rd Quarter 2021 |
4th Quarter 2020 |
FY2021 |
FY2020 |
|
|
GAAP revenue |
$10.4 |
$8.7 |
$6.7 |
$27.4 |
$19.0 |
|
|
GAAP gross margin |
16% |
17% |
35% |
18% |
34% |
|
|
GAAP Net Loss1 |
($14.4) |
($66.6) |
($4.2) |
($107.1) |
($21.8) |
|
|
GAAP Net Loss per diluted share |
($0.08) |
($3.36) |
($0.26) |
($2.51) |
($0.56) |
|
|
Non-GAAP Net Loss2 |
($17.5) |
($14.6) |
($4.0) |
($51.9) |
($20.4) |
|
|
Non-GAAP Net Loss per diluted share2 |
($0.10) |
($0.74) |
($0.25) |
($1.21) |
($1.30) |
|
|
Cash and investments |
$223 |
$297 |
$16 |
$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.
- Third quarter and full year 2021 results include $51 million extraordinary charge related to the loss on fair value on the convertible note modification in conjunction with the JAWS Spitfire merger transaction.
- 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, fair value adjustment for the Company’s warrants and earnout liabilities and charge related to the loss on fair value on the convertible note modification.
Summary of Fourth Quarter and FY 2021 results
Revenue for the fourth quarter was $10.4 million, an increase of 20% compared to the third quarter of 2021. For fiscal year 2021, revenue rose 45% to $27 million. The improvement in revenue was driven primarily by higher Sapphire system sales as well as increased revenue from support services and recurring payment transactions due to the Company’s increasing installed base of systems.
The Company shipped a record 8 systems in the fourth quarter including its first Sapphire XC system. For 2021, the Company shipped a total of 23 systems compared to 13 systems in 2020, an increase of 77%, including shipments to 10 new customers. Finally, with the booking of 34 systems in 2021, the Company has increasing confidence in its ability to reach its revenue goals this year.
Gross margin for the quarter was 16% and primarily reflected the impact of launch customer price concessions for the Company’s first Sapphire XC system shipped during the quarter. This pricing reduced the Company’s gross margin for the fourth quarter by approximately 400 basis points and is expected to impact gross margin through the third quarter of 2022 as the Company completes the delivery of an additional 9 Sapphire XC systems under its launch customer contract. Additionally, as we gain experience with Sapphire XC production, the Company expects to lower its material costs and reduce labor and overhead expenses per unit. As a result of these efficiencies, the Company expects to achieve a gross margin of 30% in the fourth quarter.
Operating expenses for the quarter rose 26% sequentially to $20.8 million, primarily driven by increased headcount and other general and administrative costs to fund the Company’s global expansion plans. Non-GAAP operating expenses, which excluded stock-based compensation expense of $2.6 million, was $18.2 million.
Net loss for the quarter was $14.4 million. Non-GAAP net loss, which excludes loss on fair value of warrants, gain on fair value of earnout liabilities and stock-based compensation, was $17.5 million. Adjusted EBITDA for the quarter, excluding loss on fair value of warrants, gain on fair value of earnout liabilities and stock-based compensation, was a loss of $14.7 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 $223 million in cash and investments which reflects the repayment of $20.8 million in debt. 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.
Guidance
For fiscal year 2022, the Company is providing the following guidance.
- Reiterating previous revenue guidance of $89 million
- Total bookings – 47-49
- Total shipments – 47-49
- Sapphire XC shipments – 23-25
- New customer additions – 23-25
For fiscal year 2022, given its significant backlog and increasing demand for its Sapphire XC solution, the Company remains confident in its ability to achieve its 2022 revenue forecast of $89 million.
The Company will host a conference call for investors this afternoon to discuss its fourth quarter 2021 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.
