Velo3D(US:VLD)2022-05-16 20:09Revenue and Sales Performance - Revenue for the three months ended March 31, 2022, was $12.2 million, a significant increase from $1.2 million in the same period of 2021, representing a growth of 916.7%[174] - Total revenue for the three months ended March 31, 2022, was $12.2 million, an increase of $11.0 million or 942.5% compared to $1.2 million in the same period of 2021[206] - 3D Printer sales accounted for $10.2 million, representing 83.3% of total revenue, a significant increase from $0.2 million in 2021, attributed to six 3D Printer sales compared to zero in the prior year[207] - Recurring payment revenue increased to $0.9 million, or 7.6% of total revenue, from $0.3 million in 2021, due to an increase in the number of 3D Printer systems in service[208] - Support services revenue rose to $1.1 million, or 9.1% of total revenue, from $0.7 million in 2021, driven by an increase in the number of 3D Printers in service[209] - Bookings for the three months ended March 31, 2022, were 7, up from 6 in the same period of 2021, indicating a 16.7% increase[175] Customer and Market Dynamics - Sales to the top three customers accounted for 87.5% of revenue in Q1 2022, compared to 83.9% in Q1 2021, highlighting continued customer concentration risks[178] - The company shipped a total of 54 3D printer systems to 20 cumulative customers as of March 31, 2022, compared to 11 cumulative customers in the same period of 2021[177] - The company expects demand for the Sapphire® and Sapphire® XC to increase revenue, with a backlog of firm orders totaling $55.0 million for 3D Printers as of March 31, 2022[210] Financial Performance and Expenses - The loss on fair value of contingent earnout liabilities was $31.2 million for the three months ended March 31, 2022, with no similar expense recorded in Q1 2021[200] - The company incurred net losses of $65.3 million for the three months ended March 31, 2022, compared to a net loss of $13.6 million for the same period in 2021[234] - Gross profit for the period was less than $0.1 million, with a gross margin of 0.0%, compared to a gross loss of $(0.4) million and a margin of (33.3%) in 2021[218] - Total cost of revenue for the three months ended March 31, 2022, was $12.2 million, an increase of $10.6 million or 681.2% compared to $1.6 million in 2021[212] - Research and development expenses increased to $12.9 million, up $8.2 million from $4.7 million in 2021, primarily due to the development of the Sapphire® XC system[221] - Selling and marketing expenses rose to $6.0 million, an increase of $4.0 million from $2.0 million in 2021, driven by additional headcount and marketing initiatives[224] - General and administrative expenses were $9.3 million, up $4.5 million from $4.8 million in 2021, largely due to increased headcount and public company-related expenses[226] Cash Flow and Capital Management - Cash and cash equivalents as of March 31, 2022, were $186.2 million, down from $223.1 million as of December 31, 2021[234] - Net cash used in operating activities for the three months ended March 31, 2022, was $30.1 million, an increase of $27.5 million compared to $2.6 million in the same period of 2021[241] - Net cash used in investing activities during the three months ended March 31, 2022, was $72.7 million, compared to $3.4 million in the same period of 2021[246] - The company expects cash used in operating activities to increase for the remainder of 2022 due to working capital requirements and operating expenses[245] - The company anticipates raising additional capital through equity or debt financings to support operations and growth initiatives[236] - The company has an accumulated deficit of $295.2 million as of March 31, 2022, compared to $229.9 million as of December 31, 2021[234] Operational Challenges - The company continues to face supply chain constraints due to the COVID-19 pandemic, impacting the timing of customer orders and product shipments[181] - Research and development expenses are expected to increase as the company focuses on advancing its additive manufacturing technologies, which may adversely affect near-term profitability[180] - The gross profit and gross margin are expected to vary due to the mix of products sold and operational cost optimization efforts[194] - The company invested $8.2 million in lab equipment and leasehold improvements for the Sapphire® XC manufacturing facility, with an additional investment of $2.0 million to $3.0 million planned[240] - As of March 31, 2022, the outstanding balance on the working capital revolver line of credit was $3.0 million[238]