Velo3D(VLD) - 2024 Q4 - Annual Results

Overview and Strategic Initiatives The company underwent a significant ownership change, implemented a new go-to-market strategy, and launched a new 'Rapid Production Solutions' business to drive future growth and profitability Management Commentary and Strategic Outlook Management details Q4 2024 as a transformational period, focusing on new strategies, revenue expansion, and the launch of the 'Rapid Production Solutions' business for future profitability - Arrayed Notes Acquisition Corp. became the majority shareholder following a debt-for-equity exchange, significantly strengthening the company's balance sheet[1][2] - The company launched a new 'Rapid Production Solutions' (RPS) business for parts production, which is expected to account for up to 40% of revenue in 2026[3][5] - The new go-to-market strategy focuses on a total solutions approach, integrating internal parts production with system sales, particularly targeting U.S. defense and aerospace industries[4] Financial Performance Analysis This section analyzes Velo3D's Q4 and full-year 2024 financial results, highlighting revenue trends, margin improvements, expense reductions, and providing fiscal year 2025 guidance Financial Highlights Velo3D's Q4 2024 revenue significantly increased, while full-year revenue decreased, alongside improvements in gross margin and net loss, and a 25% reduction in operating expenses Q4 and FY 2024 Financial Results (GAAP) | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | :--- | | Revenue (Millions USD) | $12.6 | $2.5 | $41.0 | $77.4 | | Gross Margin (%) | (3.5) | (>100) | (5.1) | (33.9) | | Net Loss (Millions USD) | ($21.7) | ($56.1) | ($73.3) | ($135.1) | | Net Loss per Share (USD) | ($0.84) | ($9.45) | ($5.77) | ($23.97) | - The company ended 2024 with a backlog of $16 million[3] - Full-year 2024 operating expenses decreased by 25% compared to 2023[3] Fourth Quarter 2024 Performance Q4 2024 saw revenue of $12.6 million driven by Sapphire XC sales, with improved but negative gross margin, reduced GAAP operating expenses, and a net loss of $21.7 million - Q4 revenue of $12.6 million was driven by an increase in Sapphire XC system sales[6] - Gross margin was negative 3.5% due to lower fixed cost absorption from a reduced number of systems shipped[7] Q4 Operating Expenses | Expense Type | Q4 2024 (Millions USD) | Q4 2023 (Millions USD) | | :--- | :--- | :--- | | GAAP Operating Expenses | $21.1 | $25.9 | | Non-GAAP Operating Expenses | $18.7 | $20.5 | - The company reported a Q4 net loss of $21.7 million and an Adjusted EBITDA of negative $14.6 million[9] Fiscal Year 2025 Guidance Velo3D projects FY 2025 revenue of $50-60 million, targeting over 30% gross margin by Q4 2025, with positive EBITDA expected in H1 2026 FY 2025 Guidance | Metric | Guidance | | :--- | :--- | | Revenue (Millions USD) | $50 - $60 | | Gross Margin (Q4 2025) (%) | >30 | | Non-GAAP Operating Expenses (Millions USD) | $40 - $50 | | Capex (Millions USD) | $15 - $20 | - The company forecasts annual revenue growth of over 30% for 2025[3] - Velo3D expects to be EBITDA positive in the first half of 2026[3][10] Financial Statements and Reconciliations This section presents the consolidated statements of operations, balance sheets, cash flows, and non-GAAP reconciliations for Velo3D's fiscal year 2024 Consolidated Statements of Operations FY 2024 total revenue decreased to $41.0 million, primarily due to lower 3D Printer sales, while gross loss significantly improved and net loss reduced to $73.3 million FY 2024 vs. FY 2023 Income Statement Highlights (in thousands) | Line Item | FY 2024 (Thousands USD) | FY 2023 (Thousands USD) | | :--- | :--- | :--- | | Total Revenue | $41,003 | $77,443 | | Gross Loss | ($2,085) | ($26,267) | | Loss from Operations | ($82,347) | ($133,254) | | Net Loss | ($73,297) | ($135,139) | | Net Loss per Share (Basic) | ($5.77) | ($23.97) | Consolidated Balance Sheets As of December 31, 2024, total assets decreased to $89.2 million, driven by reduced cash and inventories, while total liabilities also decreased to $49.5 million Balance Sheet Highlights (in thousands) | Account | Dec 31, 2024 (Thousands USD) | Dec 31, 2023 (Thousands USD) | | :--- | :--- | :--- | | Cash and cash equivalents | $1,212 | $24,494 | | Total Current Assets | $57,724 | $113,024 | | Total Assets | $89,180 | $153,799 | | Total Liabilities | $49,516 | $85,459 | | Total Stockholders' Equity | $39,664 | $68,340 | Consolidated Statements of Cash Flows FY 2024 net cash used in operating activities significantly improved to $32.7 million, with cash and cash equivalents ending at $1.2 million after a $23.5 million decrease Cash Flow Summary (in thousands) | Cash Flow Activity | FY 2024 (Thousands USD) | FY 2023 (Thousands USD) | | :--- | :--- | :--- | | Net cash used in operating activities | ($32,677) | ($105,636) | | Net cash provided by investing activities | $7,767 | $38,891 | | Net cash provided by financing activities | $1,460 | $59,261 | | Net change in cash and cash equivalents | ($23,454) | ($7,489) | | Cash and cash equivalents at end of period | $1,212 | $24,494 | Non-GAAP Reconciliations This section reconciles non-GAAP measures to GAAP equivalents, showing FY 2024 Non-GAAP Net Loss of $86.6 million and Adjusted EBITDA of negative $61.6 million FY 2024 GAAP vs. Non-GAAP (in thousands) | Metric | GAAP (Thousands USD) | Non-GAAP (Thousands USD) | | :--- | :--- | :--- | | Net Loss | ($73,297) | ($86,567) | | Operating Expenses | $80,262 | $64,899 | - For FY 2024, Adjusted EBITDA was negative $61.6 million, an improvement from negative $98.5 million in FY 2023[24] - Major adjustments from GAAP to Non-GAAP Net Loss include stock-based compensation, gain on fair value of warrants, and loss on extinguishment of debt[22]