Velo3D records a +119% increase in revenues in the third quarter of 2022

Velo3D – the American manufacturer of Sapphire series industrial 3D printers for metal, reported revenues of $ 19.1 million in Q3 2022, an increase of + 119% year-on-year. The year-on-year improvement in revenues resulted mainly from increased sales of 3D printers and a more favorable combination of sales of Sapphire XC systems, which resulted in an increase in the average selling price. Despite such an excellent performance compared to the original plan for 2022, third-quarter revenues reflected the impact of delays in 3D printer deliveries due to component shortages, supply chain disruptions and production constraints.

Q3 gross margin was negative by 1% and decreased quarterly due to the margin impact of increased shipments of Sapphire XC 3D printers and higher-than-expected inventory adjustment fees related to production. Labor and overhead costs for the third quarter were in line with forecasts, and the company expects a further improvement in material costs through the first half of 2023.

Velo3D’s operating expenses for the third quarter were in line with the second quarter at $ 27.8 million. General and administrative expenses increased due to facility reallocation and IT costs between departments, higher professional services, and taxes. Research and development costs as well as sales and marketing costs decreased slightly due to the above reallocations. 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 liquidity for its ongoing technology investments and also provides the resources needed to finance its expansion plans.

Given the high number of new machine bookings and significant backlogs in this area, the company expects fourth-quarter revenue growth in the range of + 25-50%. However, due to the impact of shipping delays in the third quarter, as well as potential supply chain and manufacturing disruptions in the fourth quarter, Velo3D now expects revenues to be $ 75-80 million in 2022, up from previous forecasts of $ 89 million. dollars.

Source: www.velo3d.com