Velo3D Announces Third Quarter 2021 Financial Results

by | November 9, 2021

– Completed merger transaction to become publicly traded company

– Strong revenue growth – 23% sequential increase from Q2

– Shipments up 50% YTD – 15 in 2021 vs 10 in 2020

– Strong third quarter bookings – 10 systems in Q3 vs 6 in Q2

– Market expansion into Europe – first system shipped to EU customer

– Sapphire® XC development program on track – first customer parts printed in Q3

– Significant backlog for 2022 – 17 XC firm orders, $85M total bookings/pre-orders

CAMPBELL, Calif., Nov. 9, 2021 – Velo3D, Inc. (NYSE: VLD), a leading additive manufacturing technology company for mission-critical metal parts, today announced financial results for its third quarter ended September 30, 2021.

“Our strong third quarter results reflect increasing demand for our industry changing end-to-end Sapphire® solution which is redefining the production of high value metal parts for mission critical applications”, said Benny Buller, CEO of Velo3D. “We remain committed to helping our customers design and build the parts they need—without compromise. With the upcoming release of our Sapphire® XC solution, we intend to accelerate the deployment of the next generation technologies our customers are creating.”

“One of the key highlights for the quarter was the closing of our merger with JAWS Spitfire. This merger was a huge milestone for the Company, enabling us to become a publicly traded company and generating approximately $274 million of net cash proceeds from the transaction. We believe we now have the liquidity to continue to invest in driving technology innovation while providing the resources needed to fund our future growth plans”.

“Operationally, we were also pleased with our strong growth momentum as we exceeded our revenue target and posted very strong bookings for the quarter. Demand for our new Sapphire® XC system continues to grow strongly with bookings of $40 million and pre-orders of $45 million at the end of October. We are also on plan for our first customer shipment of our Sapphire® XC system by the end of the year. The third quarter also marked another strategic milestone for the Company as we shipped our first system to a European customer, expanding our footprint to a market that we believe offers significant long-term opportunity. Finally, we continue to invest for future growth as we build out our new manufacturing facility which we expect to open by the end of the year. We expect this expansion will be a key driver of our 2022 growth and will provide us with the capacity to meet our demand forecasts through 2024”, continued Buller.

“Given our industry leading technology, increasing demand from our diverse customer base, strong balance sheet and a focus on maintaining our commitment to quality, we believe we are well positioned for future growth as we continue to push the boundaries of what is achievable with metal additive manufacturing”, concluded Buller.

($ Millions, except percentages and per-share data)3rd Quarter 20212nd Quarter 20213rd Quarter 2020
GAAP revenue$8.7$7.1$2.3
GAAP gross margin17%31%21%
GAAP net income (loss)1($66.6)($12.5)($7.1)
GAAP net income (loss) per diluted share($3.36)($0.78)($0.44)
Non-GAAP net income (loss)2($14.6)($10.0)($6.6)
Non-GAAP net income (loss) per diluted share2($0.74)($0.62)($0.42)

Information about Velo3d’s use of non-GAAP information, including a reconciliation to U.S. GAAP, is provided at the end of this release

  1. Third quarter 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
  2. Reconciliations to U.S. generally accepted accounting principles (GAAP) financial measures are presented below under “Non-GAAP Financial Information”. Non-GAAP net income (loss) and non-GAAP net income (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 Third Quarter results

Revenue for the third quarter was $8.7 million, an increase of 22% compared to the second quarter of 2021. The improvement in revenue was driven primarily by higher Sapphire® system sales. Additionally, recurring revenue for the third quarter rose 34% compared to the second quarter as the Company continued to benefit from its expanding installed base of systems.

The Company shipped 5 systems in the third quarter and 15 year to date. Year to date shipments rose 50% compared to the same time period in 2020. This increase reflects the Company’s repeat purchases by existing customers and its expanding customer base, with the addition of nine new customers so far in 2021, more than doubling the Company’s customer base since year end 2020. Finally, the Company increased its revenue visibility for the fourth quarter and fiscal year 2022 as it had booked 10 systems, compared to five in the second quarter and 20 for all of 2020.

Gross margin for the quarter was 17% and reflected the impact of increased overhead expenses, primarily related to under absorbed production and service network costs as the Company scaled up its operations in anticipation of strong growth in 2022, new metal development costs and higher than anticipated material and shipping expenses. The Company also increased its spend for customer system upgrades to improve performance and quality. The Company believes that these continued investments will increase its addressable market, improve customer utilization rates and position the Company for growth in 2022.

Operating expenses for the quarter rose 18% sequentially to $16.5 million, primarily driven by headcount costs associated with the Company’s expansion plans and increased spend related to the Company’s technology development initiatives. Non-GAAP operating expenses, which exclude merger related costs of $0.9 million as well as stock compensation expense of $0.7 million, were $15 million.

Net loss for the quarter was $66.6 million. This included a $51 million extraordinary charge related to the loss on fair value on the convertible note modification in conjunction with the JAWS Spitfire merger transaction. Non-GAAP net loss, which excludes the loss on fair value on the convertible note modification, merger costs and other items such as stock based compensation, was $14.6 million. Adjusted EBITDA for the quarter, excluding the loss on fair value on the convertible note modification was a loss of $13.0 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 $297 million in cash including $274 million in net proceeds from its merger transaction. As a result, the Company believes it has the liquidity to continue to invest in driving technology innovation while providing the resources needed to fund its future growth plans.


For fiscal year 2021, the Company is providing the following guidance.

a. Revenue of $26 million

b. Total Sapphire® shipments – 22-24

c. Total Sapphire® bookings – more than 24

d. Total Sapphire® XC backlog – 20

e. New customer additions – 12-15

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 third 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 at

About Velo3D:

Velo3D is a metal 3D printing technology company. 3D printing—also known as additive manufacturing (AM)—has a unique ability to improve the way high-value metal parts are built. However, legacy metal AM has been greatly limited in its capabilities since its invention almost 30 years ago. This has prevented the technology from being used to create the most valuable and impactful parts, restricting its use to specific niches where the limitations were acceptable.

Velo3D has overcome these limitations so engineers can design and print the parts they want. The company’s solution unlocks a wide breadth of design freedom and enables customers in space exploration, aviation, power generation, energy and semiconductor to innovate the future in their respective industries. Using Velo3D, these customers can now build mission-critical metal parts that were previously impossible to manufacture. The end-to-end solution includes the Flow™ print preparation software, the Sapphire® family of printers, and the Assure™ quality control system—all of which are powered by Velo3D’s Intelligent Fusion® manufacturing process. The company delivered its first Sapphire® system in 2018 and has been a strategic partner to innovators such as SpaceX, Honeywell, Honda, Chromalloy, and Lam Research. Velo3D has been named to Fast Company’s prestigious annual list of the World’s Most Innovative Companies for 2021. For more information, please visit, or follow the company on LinkedIn or Twitter.

Investor Relations:

Bob Okunski, VP Investor Relations

Media Contact:

Dan Sorensen, Senior Director of PR

About the Author

Dan Sorensen

Senior Director Public Relations & Social Media

Dan Sorensen is the Sr. Director of Public Relations and Social Media at Velo3D, where he oversees the company’s public image and communications efforts. Dan works closely with customers to better understand their needs and to execute joint announcements. Prior to joining Velo3D, Dan worked for various companies in enterprise tech, including those in software, hardware, and venture capital.