Velo3D Announces 119% Year Over Year Revenue Growth for the Third Quarter of 2022

by | November 9, 2022

Path to Profitability Driven by Strong Demand and Improved Efficiency

Q3 Bookings Growth / Increased Backlog by 20% Sequentially

Third Quarter Results Impacted by Supply Chain Shortages

  • Continued revenue growth – up 119% year over year
  • Strong demand – $27 million in new bookings / backlog at $66 million
  • New customer expansion –2 European OEMs, U.S. automotive sector
  • Updated 2022 revenue guidance of $75-$80M – result of supply chain disruptions causing Q322 shipment delays and potential Q422 impact

CAMPBELL, Calif., Nov. 8, 2022 – Velo3D, Inc. (NYSE: VLD), a leading additive manufacturing technology company for mission-critical metal parts, today announced financial results for its third fiscal quarter of 2022.

“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 Benny Buller, CEO of Velo3D.  “However, our third quarter financial results were primarily impacted by key component shortages which affected our production schedule, resulting in certain system shipment delays.  We have instituted a number of strategic initiatives to address these challenges and are confident in achieving our fourth quarter financial forecasts.  As a result of the shipment delays, and potential fourth quarter supply chain and production disruptions, we are reducing our 2022 revenue forecast from $89 million to a range of $75 million to $80 million.”

“Specifically, demand for our industry-leading Sapphire family of systems remains high as we expanded both our new and existing customer footprint during the quarter.  For example, new customer additions included two marquee European aerospace OEMs as well as our first sale to a strategic, Fortune 100, U.S. automotive manufacturer.   Additionally, we had three customers purchasing multiple systems, reinforcing our credibility as a technology leader in the AM market.   We also booked $27 million in new orders in the third quarter and our backlog now totals $66 million.  This success provides significant revenue visibility for the fourth quarter as well as building a strong foundation for future growth as we enter 2023.”

“Looking forward, we remain very excited about the future as our bookings and backlog growth reflect the increasing adoption of our technology.  We are confident that we have a clear path to profitability given our current capital resources.  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.  As a result, we believe we are well positioned to profitably capitalize on the rapidly expanding market for mission critical, high value metal parts,” concluded Buller.

($ in Millions, except percentages and per-share data) 3rd Quarter 2022 2nd Quarter 2022 3rd Quarter 2021
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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. Reconciliations to U.S. generally accepted accounting principles (GAAP) financial measures are presented below under “Non-GAAP Financial Information”. 
  1. Non-GAAP net loss and non-GAAP net loss per diluted share exclude stock-based compensation expense, and fair value adjustments for the Company’s warrants and earnout liabilities, as well as, in the three months ended September 30, 2021, transaction costs related to the JAWS Spitfire merger transaction and charge related to the loss on fair value on the convertible note modification in conjunction with the merger transaction.

Summary of Third Quarter 2022 results

Revenue for the third quarter was $19.1 million, in line with the second quarter of 2022 and an increase of 119% compared to the third quarter of 2021.  Compared to our original 2022 plan, third quarter 2022 revenue reflected the impact of system shipment delays due to supply chain component shortages and production constraints.  On a sequential basis, year of sale revenue was impacted by system sales mix as well as a higher proportion of launch customer shipments than in the second quarter.  This impact was partially offset by higher recurring revenue due to a greater number of systems in the field.  The year over year improvement in revenue was primarily driven by increased system sales and a more favorable mix of Sapphire XC system sales resulting in an increase in average selling price.

Gross margin for the quarter was negative 1% and down sequentially due to the margin impact of an increased number of launch customer deliveries for the company’s Sapphire XC systems, higher than expected inventory adjustment charges associated with the production of its Sapphire XC product.  Labor and overhead costs for the third quarter were in line with forecasts and the company expects further improvement in its bill of material costs through the first half of 2023.

Operating expenses for the quarter were in line with the second quarter at $27.8 million. General and administrative cost increased due to re-allocations of facilities and IT costs between departments, higher professional services and taxes. Research and development expenses and selling and marketing expenses decreased slightly due to the above re-allocations.  Non-GAAP operating expenses, which excludes, among other items, stock-based compensation expense of $5.2 million, was $22.7 million in the three months ended September 30, 2022.

Net loss for the quarter was $75.2 million and reflected a loss of $47.5 million on the fair value of warrants and contingent liabilities.  Non-GAAP net loss, which excludes, among other items, the gain on fair value of warrants and contingent earnout liabilities as well as stock-based compensation, was $22.5 million in the three months ended September 30, 2022. Adjusted EBITDA for the quarter, excluding the same metrics, was a loss of $21.2 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 $113 million in cash and investments. As a result, the company believes it has the liquidity for ongoing technology investments as well as providing the resources needed to fund its growth plans.


Given its strong bookings and significant backlog, the company expects fourth quarter sequential revenue growth in the range of 25-50%.  However, due to the impact of the third quarter shipment delays as well as potential fourth quarter supply chain and production disruptions, the company now expects 2022 revenue to be in the range of $75-$80 million compared to its previous guidance of $89 million.

Additional information for fiscal year 2022:

  • The company shipped its final launch customer system in the fourth quarter.
  • The company expects fourth quarter revenue in the range of $24 to $29 million.

The company will host a conference call for investors this afternoon to discuss its third quarter 2022 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 San Francisco Chronicle’s prestigious annual list of Top Workplaces in the Bay Area 2022. For more information, please visit, or follow the company on LinkedIn or Twitter.

VELO, VELO3D, SAPPHIRE and INTELLIGENT FUSION, are registered trademarks of Velo3D, Inc. WITHOUT COMPROMISE, FLOW and ASSURE are trademarks of Velo3D, Inc. All Rights Reserved © Velo3D, Inc.

Investor Relations:

Bob Okunski, VP Investor Relations

Media Contact:

Dan Sorensen, Senior Director of PR

Amounts herein pertaining to September 30, 2022 represent a preliminary estimate as of the date of this earnings release and may be revised upon filing our Quarterly Report on Form 10-Q with the Securities and Exchange Commission (the “SEC”). More information on our results of operations for the three months ended September 30, 2022 will be provided upon filing our Quarterly Report on Form 10-Q with the SEC.

Forward-Looking Statements:

This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1996. The company’s actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect”, “estimate”, “project”, “budget”, “forecast”, “anticipate”, “intend”, “plan”, “may”, “will”, “could”, “should”, “believes”, “predicts”, “potential”, “continue”, and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, the company’s guidance for the fourth quarter and full year 2022 (including the company’s estimates for revenue and revenue growth), the company’s expectations regarding its ability to achieve profitability, its improved bill of materials costs during the first half of 2023 and its strong foundation for continued growth in 2023, the company’s strategic priorities for 2022 and 2023 (including the company’s market and customer expansion plans), the company’s expectations regarding its liquidity and capital requirements, and the company’s other expectations, hopes, beliefs, intentions or strategies for the future. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. You should carefully consider the risks and uncertainties described in the “Risk Factors” section of the company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 (the “FY 2021 10-K”), which was filed by the company with the SEC on March 28, 2022 and the other documents filed by the company from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Most of these factors are outside the company’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: (1) the inability to recognize the anticipated benefits of the merger transaction, which may be affected by, among other things, competition, the ability of the company to grow and manage growth profitably, maintain relationships with customers and suppliers and retain its key employees; (2) costs related to the merger transaction; (3) changes in the applicable laws or regulations; (4) the possibility that the company may be adversely affected by other economic, business, and/or competitive factors; (5) the impact of the global COVID-19 pandemic; and (6) other risks and uncertainties indicated from time to time described in the FY 2021 10-K, including those under “Risk Factors” therein, and in the company’s other filings with the SEC. The company cautions that the foregoing list of factors is not exclusive and not to place undue reliance upon any forward-looking statements, including projections, which speak only as of the date made. The company does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based.

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.