Velo3d, Inc. · NASDAQ:VELO
Velo3d — Q4 2023 Earnings Presentation
18 slides from Velo3d's earnings presentation, Mar 26, 2024
Slide 1: Fourth Quarter 2023 Supplemental Slides
Slide 2: Forward-looking statements
This presentation 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
Slide 3: Summary
Vv’ Summary Significant progress on re-alignment plan in Q423 Transition quarter — entered 2024 in stronger position Lowered cost structure by >15% sequentially! Q423 year over year free cash flow improved by 35% Strategic shift to customer driven model - manufacturing / reliability improvement Succ
Slide 4: Key End Market Update
Vv” Key End Market Update O Space Customer Diversification 4 FY 2023 System Revenue Improved performance / ability to rapidly implement design changes 9 NA launch customers / added NASA, Avio vam. Defense ‘el Reduced lead times / increased readiness / weapon development 3 new defense contractors in
Slide 5: Engineer-led to customer-led strategy
Engineer-led to customer-led strategy Building Business Value Assessments for each opportunity Exploring new pricing and packaging models Ak Gross Margin / Manufacturing Realization of raw material cost reductions Increasing production efficiency and velocity Engineering programs for more cost- effe
Slide 6: 2024 Strategic Priorities Update
V* 2024 Strategic Priorities Update v __ Significantly reduced the installation time of Sapphire printers by 40% over the last 6 Enhance quality of newly manufactured —— Sapphire printers Y Improved system uptime across footprint / customer issue resolution timing - reduced by >45% over the past 6 m
Slide 7: Bernard Chung, CFO
Bernard Chung CFO
Slide 8: Financial Summary
Vv Financial Summary 1 Q423 Q3 23 Q422 2023 2022 Total Revenue $1.8 $23.8 $29.8 $77.6 $80.8 Year of Sale (0.1) 21.4 27.0 69.1 71.3 Recurring Revenue 19 24 2.8 8.5 9.4 Cost of Goods sold 35.3 22.3 28.0 103.7 77.9 Gross Profit (33.5) 1.5 1.8 (26.1) 2.9 % Gross Margin (1,857)% 6% 6% (34)% 4% Total Oper
Slide 9: Gross Margin Expansion
Vv ° Gross Margin Expansion 30% <a Q3 2023 GM BOM Savings Product Mix OH Efficiencies Service Support Efficiencies Q4 2024E GM 2024 drivers Bill of Material cost reduction - ~25 programs to lower Sapphire XC BOM costs by >30% in 2024 Product Mix - Continued mix shift to Sapphire XC; Higher maintenan
Slide 10: Cost reduction and facility consolidation
▪ ▪ through complete / facility consolidation ▪
Slide 11: Q424 Cash Flow
V*” Q424 Cash Flow $72M $19M $2M $20M a Q322 Cash Debt Repayment-Netof Re-AlignmentExpenses Working Capital Change Financing $31M Q423 End u
Slide 12: 2024 Outlook
V*’ 2024 Outlook FY 2024 Guidance Revenue: $80 - $95M Gross margin: 20% - 30%* Q424: ~30% Non-GAAP Opex: $40-$50M** Expect to achieve free cash flow breakeven in 2H24* * Excludes impact of one-time realignment / financing activities ** The Company has not provided a reconciliation of non-GAAP operat
Slide 13: L Of V Q
L Of V Q
Slide 14: Without Compromise
Without Comp
Slide 15: Non-GAAP Adjusted Operating Expenses Reconciliation
Velo3D, Inc. NON-GAAP Adjusted Operating Expenses Reconciliation (Unaudited) Three months ended Year ended Three months ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 September 30, 2023 September 30, 2022 (In thousands, except for percentages) % of Rev % of Rev % of Re
Slide 16: Non-GAAP Adjusted EBITDA Reconciliation
Velo3D, Inc. NON-GAAP Adjusted EBITDA Reconciliation (Unaudited) Three months ended Year ended Three months ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 September 30, 2023 September 30, 2022 (In thousands, except for percentages) % of Rev % of Rev % of Rev % of Rev %
Slide 17: Non-GAAP Net Loss Reconciliation
Velo3D, Inc. NON-GAAP Net Loss Reconciliation (Unaudited) Three months ended Year ended Three months ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 September 30, 2023 September 30, 2022 (In thousands, except for percentages) % of Rev % of Rev % of Rev % of Rev % of Rev
Slide 18: Industry and Market Data
Ve Industry and Market Data In this presentation, the Company relies on and refers to publicly available information and statistics regarding the market in which the Company competes and other industry data. The Company obtained this information and statistics from third-party sources, including rep