Velo3D reports 120% revenue growth in Q3 2022 despite encountering shipping delays

The 3D Printing Industry Awards 2022 shortlists are now available for voting. Who will win the 2022 3DPI Awards? Have your say by casting your vote now.

3D printer manufacturer Velo3D (VLD) has announced a 119.5% revenue rise in its Q3 2022 financial results. 

Over Q3 2022, Velo3D generated $19.1 million in revenue, a substantial increase on the $8.7 million it brought in during Q3 2021, but 2.6% less than the $19.6 million it reported in Q2 2022. The firm says its year-on-year growth was driven by increased system sales and a more favorable product mix, which drove its average sale upwards, but shipping issues caused it to suffer a sequential quarterly dip. 

“Our third quarter performance reflects solid execution as we again posted strong year over year revenue growth, increased our sizeable backlog and expanded our new and existing customer footprint,” said Velo3D CEO Benny Buller. “However, our third quarter financial results were impacted by key component shortages which affected our production schedule, resulting in certain system shipment delays.”

Velo3D CEO Benny Buller. Photo via Benny Buller, Linkedin.
Velo3D CEO Benny Buller. Photo via Benny Buller, Linkedin.

Velo3D’s Q3 2022 Financials 

In each of its five financials since Velo3D went public on the NYSE in late-2021, it has reported annual revenue growth, and Q3 2022 is no different. On the firm’s earnings call, Buller said that it saw “high demand” for the Sapphire and Sapphire XC in the quarter, reflecting its success in continuing to expand into markets and address new applications. 

In practice, Velo3D’s CEO explained how this increased traction has attracted orders from two market-leading European aerospace firms, as well as a ‘top tier automotive OEM’ over in the US. However, while the company’s technology continues to address new use cases, Buller admitted that supply disruptions have previously limited its ability to build the machines necessary to meet demand. 

As such, despite Velo3D’s bookings growing 50% sequentially to $27 million, and its backlog now totalling $66 million, missing its production targets means it has had to lower its FY 2022 guidance to $75-$80 million. That said, as it now has all the system-level electronics parts needed to fulfill its production plan in Q4, the firm doesn’t anticipate suffering the same issues. Buller added that as Velo3D “gains production experience,” challenges posed by new product launches “will diminish.”

Financials ($)Q2 2022 Q3 2022 Difference ($)Difference (%)Q3 2021Q3 2022Difference ($)Difference (%)
GAAP Revenue 19.6m19.1m-0.5m-2.68.7m19.1m+10.4m+119.5
GAAP Gross Margin (%) 6.3-0.6-6.9m-90.516.9-0.6-17.5-103.6
GAAP Net Proft/Loss128.0m-75.2m-203.2m-41.3-66.6m-75.2m-8.6m-12.9
Cash & Investments 142.0m113.0m-29.0m-20.4297.0m113.0m-184.0m-62.0

Building on growth opportunities 

Supply chain issues aside, Velo3D managed to pass a number of sales milestones during Q3 2022, which no doubt position it well for future growth. In August, Velo3D sold a Sapphire XC to Pratt & Whitney, a high-profile manufacturer that operates as part of Raytheon, an aerospace company which has itself been known to dabble in 3D printing. In fact, Raytheon and Hexagon unveiled a metal 3D printing defect detection software earlier this month, with widespread potential use cases. 

Velo3D’s Hartech Group partnership could also prove a key revenue driver for some time to come. Struck during the quarter, the deal will see Hartech distribute the firm’s machines to US federal agencies. Given that the firm works exclusively with customers in the federal government like the US Department of Defense, it could soon become an important (and lucrative) partner. 

Having built up a strong backlog and sales channels, Buller explained on Velo3D’s earnings call that it’s now focusing on streamlining its production process and targeting profitability. These efforts have not only seen the company reduce its material balance, but outsource the creation of certain sub-assemblies, while seeking to drive greater efficiency on its factory floor. 

“We are confident that we have a clear path to profitability given our current capital resources,” added Buller. “We expect to achieve this by leveraging our strong top line growth, our focus on rapidly accelerating production efficiency, prudent expense and working capital management and a return to normalized pricing.”

Rendering of a Sapphire 3D printer production facility. Image via VELO3D.
Rendering of a Sapphire 3D printer production facility. Image via Velo3D.

Forecasting further revenue rises

Heading into Q4 2022, Velo3D has set its guidance at $24-29 million, which if realized, would constitute sequential growth of 25.7% to 51.8%. According to Buller, this projected revenue rise, fuelled largely by the firm’s backlog, reflects the strength of its expansion into new industries, particularly those with high-value applications. 

“We are continuing to expand our industry footprint outside the space sector with new customer additions and follow-on purchases from companies in the aviation, hypersonics, automotive, defense, and energy industries,” concluded Buller. “We are excited about the future opportunity and believe we are well positioned to capitalize on the growing demand for high-value 3D printed metal parts.”

To stay up to date with the latest 3D printing news, don’t forget to subscribe to the 3D Printing Industry newsletter or follow us on Twitter or liking our page on Facebook.

While you’re here, why not subscribe to our Youtube channel? featuring discussion, debriefs, video shorts and webinar replays.

Are you looking for a job in the additive manufacturing industry? Visit 3D Printing Jobs for a selection of roles in the industry.

Featured image shows a render of a Sapphire 3D printer production facility. Image via Velo3D.