Velo3D(VLD) - 2022 Q3 - Quarterly Report

Revenue and Bookings - Revenue for the three months ended September 30, 2022, was $19 million, a 111% increase from $9 million in the same period in 2021[204]. - Bookings for the three months ended September 30, 2022, reached $27 million, up 125% from $12 million in the prior year[204]. - Total revenue for the three months ended September 30, 2022, was $19.1 million, an increase of $10.4 million or 119.4% compared to $8.7 million in 2021[234]. - Total revenue for the nine months ended September 30, 2022, was $50.977 million, an increase of $33.948 million or 199.4% compared to $17.029 million in 2021[265]. Sales Performance - 3D Printer sales reached $16.5 million for the three months ended September 30, 2022, up 127.1% from $7.3 million in 2021, primarily due to the launch of the Sapphire® XC system[235]. - 3D Printer sales reached $44.336 million for the nine months ended September 30, 2022, up 226.1% from $13.594 million in 2021, primarily due to the launch of the Sapphire® XC system[266]. Backlog and Demand - Backlog as of September 30, 2022, was $66 million, compared to $34 million in the same period in 2021, indicating strong demand[204]. - The company expects a backlog of firm orders for 3D Printers to be $66 million as of September 30, 2022, indicating strong future demand[237]. Expenses and Profitability - Research and development expenses are expected to continue increasing, which may adversely affect near-term profitability as the company invests in innovative AM technologies[207]. - Research and development expenses rose to $12.6 million in Q3 2022, an increase of $4.6 million from $8.0 million in Q3 2021, driven by the development of new systems[249]. - Selling and marketing expenses increased to $5.6 million in Q3 2022 from $3.3 million in Q3 2021, reflecting a $2.3 million rise due to additional headcount and marketing initiatives[252]. - General and administrative expenses were $9.6 million for Q3 2022, up from $5.2 million in Q3 2021, an increase of $4.4 million attributed to higher headcount and public company-related expenses[254]. - Gross profit for Q3 2022 was $(0.1) million, resulting in a gross margin of (0.6)%, down from a gross profit of $1.5 million and a margin of 16.9% in Q3 2021[246]. - Gross profit for the nine months ended September 30, 2022, was $1.126 million, with a gross margin of 2.2%, down from $3.268 million and 19.2% in 2021[276]. Costs and Financial Impact - General economic conditions, including inflation and supply chain challenges, have increased material costs and impacted gross margins[209]. - The cost of revenue as a percentage of revenue was 100.6% for Q3 2022, up from 83.1% in Q3 2021, primarily due to a shift in product mix towards more Sapphire® XC systems[244]. - Total cost of revenue for the three months ended September 30, 2022, was $19.2 million, an increase of $12.0 million or 166% compared to $7.2 million in 2021[240]. - Cost of revenue for the nine months ended September 30, 2022, was $49.851 million, an increase of $36.090 million or 262.3% compared to $13.761 million in 2021[270]. Tax and Valuation - No provision for federal and state income taxes was recorded due to projected losses, maintaining a full valuation allowance on deferred tax assets as of September 30, 2022[230]. - No provision for federal and state income taxes was recorded for both the nine months ended September 30, 2022, and 2021, due to projected losses[285]. Cash Flow and Financing - Cash and cash equivalents as of September 30, 2022, were $112.8 million, down from $223.1 million as of December 31, 2021, with an accumulated deficit of $242.5 million[286]. - Net cash used in operating activities for the nine months ended September 30, 2022, was $92.2 million, an increase of $60.9 million compared to $31.3 million for the same period in 2021[296]. - Net cash used in investing activities during the nine months ended September 30, 2022, was $74.5 million, primarily due to property and equipment purchases and investments[300]. - Net cash provided by financing activities for the nine months ended September 30, 2022, was $323.5 million, primarily from the Merger and PIPE financing[303]. - The company may require additional funds for working capital, product development, and potential acquisitions, indicating a need for future equity or debt financing[288]. - The company has a revolving credit line increased to $30.0 million, with a maturity date extended to December 31, 2024[292]. Other Financial Metrics - The company recorded a gain of $58.110 million on the fair value of contingent earnout liabilities for the nine months ended September 30, 2022, compared to a gain of $2.014 million in 2021[283]. - Other income (expense), net was $0.993 million for the nine months ended September 30, 2022, compared to a loss of $0.156 million in 2021[284]. - The company incurred a net loss of $12.6 million for the nine months ended September 30, 2022, compared to a net loss of $92.7 million for the same period in 2021[286].