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Velo3D: Strong Financial Indicators for Q4 and FY 2024

Velo3D, Inc. (OTC: VLDX), renowned for its cutting-edge additive manufacturing technology, has recently published its financial results for the fourth quarter and fiscal year ending December 31, 2024. With an impressive revenue growth trajectory and strategic decisions that promise a bright future, the report showcases the company’s commitment to innovation and profitability.

Transformative Quarter Report

Velo3D's CEO, Arun Jeldi, highlighted the significant steps taken during the fourth quarter that led to a transformational shift for the company. They completed a debt-to-equity exchange with Arrayed Notes Acquisition Corp, marking this subsidiary as their new majority shareholder. Jeldi noted that the strategic initiatives instituted are designed to expand revenue streams, improve gross margins, and enhance manufacturing efficiencies.

The company successfully reduced operating expenses by 25% year-over-year, positioning itself advantageously for the future. In the fourth quarter alone, Velo3D reported revenues of $13 million and exited the year with an impressive backlog of $16 million, demonstrating strong demand for its innovative solutions. The company is optimistic about achieving EBITDA positivity by the first half of 2026.

New Go-to-Market Strategy

Velo3D has unveiled a new go-to-market strategy that is experiencing robust traction, particularly in the U.S. defense and aerospace sectors. These industries are increasingly pursuing domestic supply chain expansions, and Velo3D aims to leverage this trend. This new approach builds on their legacy sales to Original Equipment Manufacturers (OEMs) by incorporating internal parts production capabilities for their customers. This enhances their service offering while expanding revenue streams significantly.

The newly launched Rapid Production Solutions (RPS) business model caters to clients seeking high-quality, scalable production parts efficiently. RPS is expected to contribute up to 40% of total revenue by 2026, as it reduces design cycles and streamlines production qualification for clients.

Financial Highlights

Velo3D's Q4 2024 financial results include:

• - Revenue: $12.6 million, up from $2.5 million in Q4 2023.
• - Operating Expenses: Reduced to $21.1 million from $25.9 million in the previous year.
• - Net Loss: Reported at $21.7 million, an improvement compared to $56.1 million the previous year.

For the annual fiscal year 2024, the company generated a total revenue of $41 million, which marked a notable decline from $77.4 million in 2023, largely attributed to a shift in business focus and market conditions.

However, management is optimistic about the upcoming fiscal year, forecasting a revenue range of $50 million to $60 million for 2025, alongside an anticipated gross margin exceeding 30% in Q4 2025.

Future Outlook

As Velo3D consolidates its market position, the management team has reaffirmed its commitment to achieving long-term profitability through strategic execution and operational efficiencies. By nurturing its partnerships and capitalizing on emerging market demands, the company aims to reclaim its leadership in the additive manufacturing industry notably.

With the backdrop of evolving technological innovations and demand for additive manufacturing solutions, Velo3D appears primed for future growth, making it a company to watch as it embarks on this ambitious journey towards profitability.