Velo3D, Inc. reported a significant decline in its financial performance for the fiscal year ending December 31, 2024, with total revenue of $41.0 million, a decrease of 47.1% from $77.4 million in 2023. The company's 3D printer sales dropped to $25.4 million from $68.9 million, primarily due to a reduction in system sales and backlog. However, support services revenue increased by 40.3% to $9.6 million, attributed to enhanced services provided to key customers like SpaceX. The company also generated $5.0 million in other revenue from a licensing agreement with SpaceX, marking a new revenue stream.
In terms of profitability, Velo3D reported a net loss of $73.3 million for 2024, an improvement from the $135.1 million loss in 2023. This reduction in losses was influenced by a decrease in operating expenses, which fell to $80.3 million from $107.0 million, driven by cuts in research and development and selling and marketing expenses. The company’s gross loss narrowed to $2.1 million from $26.3 million, reflecting a shift in product mix towards higher-priced systems, although the overall cost of revenue also decreased significantly.
Strategically, Velo3D has undergone a significant restructuring, including a reduction in workforce by approximately 45% and the closure of several facilities. This realignment aims to optimize cash flow and improve operational efficiency. The company also engaged in a debt-for-equity exchange in December 2024, issuing 185.2 million shares to cancel $22.4 million in principal of its secured notes, resulting in Arrayed Notes Acquisition Corp. acquiring approximately 95% of Velo3D's common stock. This transaction was part of a broader strategic review process initiated by the Board of Directors to explore options for maximizing shareholder value.
Operationally, Velo3D's customer base remains concentrated, with the top three customers accounting for 47% of revenue in 2024, compared to 24.5% in 2023. The company has reported a backlog of $16 million in firm orders as of December 31, 2024, indicating potential future revenue growth. Velo3D is also focusing on expanding its global customer relationships, particularly in the aerospace, defense, and automotive sectors, while enhancing the quality and capabilities of its Sapphire family of printers.
Looking ahead, Velo3D anticipates continued challenges in achieving profitability and maintaining liquidity, with substantial doubt about its ability to continue as a going concern. The company plans to engage in additional financing to support operations and is actively working on improving its operational efficiencies. The outlook remains cautious, with expectations of increased revenue from support services and a gradual recovery in system sales as the company implements its strategic initiatives.
About Velo3D, Inc.
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