Velo3D, Inc. (NYSE: VLD), a leading additive manufacturing technology company for mission-critical metal parts, closed FY 2021, the first full year since going public, with revenues for $27 million, growing 45%, and exceeding expectations. Among other highlights the company shipped the first Sapphire XC system to an aerospace customer in Q421 and achieved the 2021 shipments goal of 23 systems (77% year over year unit growth). Velo3D FY 2021 also saw 34 systems booked in 2021 (versus a goal of 24) and a significant backlog for 2022 – 23 Sapphire systems (of which 18 Sapphire XC)
“Our performance reflects strong execution as we exceeded our fourth quarter and fiscal year 2021 revenue forecast, surpassed our bookings target and achieved a key strategic milestone as we shipped our first Sapphire XC system which will be a significant driver of our growth in 2022,” said Benny Buller, CEO of Velo3D. “Overall, 2021 was an important and successful year for Velo3D, and I’m enormously proud of everything we achieved. Customer demand for our industry-leading Sapphire systems remains high as we help some of the world’s most innovative companies create the future using our advanced additive manufacturing technology”.
“In addition to shipping a record number of systems in the fourth quarter, our strong bookings reflected increasing demand across a number of verticals as we execute on our land and expand strategy. For the year, shipments increased more than 75% and we continued to add new customers, including our first customer in Europe, which is a significant market opportunity we are looking to capitalize on this year. Also, we believe we remain well-positioned to achieve our 2022 goals given our fourth quarter execution as well as the strong revenue visibility provided by our current backlog of 23 systems, including 18 Sapphire XC systems. As a result, we are reiterating our previous 2022 revenue guidance of $89 million,” continued Buller.
Revenue for the fourth quarter was $10.4 million, an increase of 20% compared to the third quarter of 2021. Along with the overall growth for Velo3D FY 2021, the improvement in revenue was driven primarily by higher Sapphire system sales as well as increased revenue from support services and recurring payment transactions due to the Company’s increasing installed base of systems.
The Company shipped a record 8 systems in the fourth quarter including its first Sapphire XC system. For 2021, the Company shipped a total of 23 systems compared to 13 systems in 2020, an increase of 77%, including shipments to 10 new customers. Finally, with the booking of 34 systems in 2021, the Company has increasing confidence in its ability to reach its revenue goals this year.
Net loss for the quarter was $14.4 million and adjusted EBITDA for the quarter, excluding loss on fair value of warrants, gain on fair value of earnout liabilities and stock-based compensation, was a loss of $14.7 million. Ultimately Velo3D ended the quarter with a strong balance sheet with $223 million in cash and investments which reflects the repayment of $20.8 million in debt. 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.
For Velo3D FY 2022, the previous revenue guidance of $89 million has been confirmed, including total bookings and shipments of 47-49 units, of which 23-25 Sapphire XC shipments. Velo3D also projects 23-25 new customer additions.
“Looking forward, we are excited about our long-term opportunities given our industry-leading technology, continued execution on our growth plans and strong customer demand. Specifically for 2022, our strategic priorities will focus on expanding our new and existing customer footprint in both the U.S and Europe reflecting the increasing demand for our Sapphire XC system. Additionally, we will continue the buildout of our new manufacturing facility which will enable us to more than double annual shipments in 2022. Finally, we will remain focused on delivering the highest level of service possible to enable our customers to design and build the high-value metal parts they need to succeed-without compromise,” concluded Buller.
From a purely financial point of view, the Velo3D stock is trading below initial or peak valuation, like most major pure player 3D printing stocks in the past few months, but it’s trending upwards.