Velo3d, Inc. · NASDAQ:VELO
Velo3d — Q3 2023 Earnings Presentation
19 slides from Velo3d's earnings presentation, Nov 6, 2023
Slide 1: Third Quarter 2023 Supplemental Slides
Slide 2: Disclaimer: Forward Looking Statement
Ve Disclaimer Forward Looking Statement 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 con
Slide 3: Q323 Summary
V* Q323 Summary Significant free cash flow progress >30% sequential improvement— ending cash of $72M Expect quarterly free cash flow improvement through FY 2024 Revenue and bookings below plan Revenue of $24M — reflects impact of delayed shipments Bookings of $11M—new / existing customer order delay
Slide 4: Q423 Strategic Initiatives
V*° Q423 Strategic Initiatives Expenditure reduction Solidify path to 2024 profitability goal Inventory constrained manufacturing plan— reduces working capital Indefinite pause on procurement of new inventory Drive improved customer satisfaction and system performance Direct impact on existing custo
Slide 5: Expenditure and Cash Flow Initiatives
Vv” Expenditure and Cash Flow Initiatives Reducing expenditures Expected 40% reduction in total quarterly spend (Q124 vs Q323) Lowering quarterly cash opex / fixed cost COGS spend 20% headcount reduction complete / facility consolidation Inventory constrained manufacturing plan Backlog driven procur
Slide 6: Rapid Growth Impacted Customer Support
V~ Rapid Growth Impacted Customer Support Significant growth in FY 2022 Revenue tripled year over year — reflected strong customer demand Driven by new product launches - Sapphire XC, Sapphire IMZ, Sapphire XC-IMZ Rapid growth affected capability to support expanding customer base Customer support o
Slide 7: Initiatives to Re-build Bookings / Backlog
V® Initiatives to Re-build Bookings / Backlog Bookings growth affected by weak new customer acquisitions Result of sales process / proof of concept execution Offset by strong demand from existing customers in 2022 Impacted 2023 bookings growth as existing customer demand declined Building a discipli
Slide 8: Strategic Summary
Vv” Strategic Summary Q423 to be a transition quarter — position company for profitable growth Right-sized business — expected 40% cost reduction (Q124 vs Q323) Adjusted procurement / manufacturing plan —- improving cash flow Prioritization to ensure customer success - drives follow-on sales Laying
Slide 9: Bernard Chung, CFO
Bernard Chung CFO
Slide 10: Financial Summary
Vv” Financial Summary Q3 23 Q2 23 Q3 22 Total Revenue $24.1 $25.1 $19.1 Year of Sale 21.7 23.2 16.5 Recurring Revenue 24 1.9 2.6 Cost of Goods Sold 22.3 22.2 19.2 Gross Profit 17 3.0 (0.1) % Gross Margin 7% 12% (1%) Total Operating Expenses 26.7 28.7 27.8 Non-GAAP Operating Expenses! 20.0 22.2 22.7
Slide 11: Significant Free Cash Flow Improvement
Vv’ Significant Free Cash Flow Improvement” $40 $30 $20 $0 Q4'22 Ql'23 Q2'23 Q3'23 Q4'23E = Operating Costs — = Fixed Manufacturing / Service Costs * Excludes impact of financing activities
Slide 12: Realignment Costs / Cash Highlights
V” Realignment Costs / Cash Highlights Expected Q423 one-time charges Severance costs - $1.0- $2.0M Facility consolidation - $2.0 - $3.0M Review of current inventory valuation Additional expected Q423 cash flow highlights Customer lease terminations - $3.0- $6.0M Return of Physics X investment - $3.
Slide 13: 2023 Outlook
V*’ 2023 Outlook Q4 2023 Guidance Revenue: $15-$27M Gross margin: 5% - 17%* Non-GAAP Opex: $15 - $18M** Updated FY 2023 Guidance Revenue: $91 - $103M Gross margin: 9% - 12%* Non-GAAP Opex: $78 - $81M** Expect to achieve free cash flow breakeven in Q224* * Excludes impact of one-time realignment / fi
Slide 14: L Of V Q
L Of V Q
Slide 15: Appendix
VELO Appendix 1 (408) 610-3915 511 Division St. Campbell, CA 95008
Slide 16: Non-GAAP Reconciliation - Non-GAAP Operating Expenses
Vv’ Non-GAAP Reconciliation - Non-GAAP Operating Expenses (naucitea) Revenue Operating expenses Research and development Selling and marketing General and administrative Total operating expenses ‘Stock-based compensation Adjusted opera expenses Velo3D, Inc. NON-GAAP Adjusted Operating Expenses Recon
Slide 17: Non-GAAP Reconciliation - Adjusted EBITDA
Ve Non-GAAP Reconciliation - Adjusted EBITDA (unaucitea) Velo3D, Inc. NON-GAAP Adjusted EBITDA Reconc (Unaudited) ‘Three months ended Nine months ended Three months ended ‘September 30, 2023 September 30, 2022 September 30, 2023 ‘September 30, 2022 June 30, 2023 June 30, 2022 (in thousands, except f
Slide 18: Non-GAAP Reconciliation - Non-GAAP Net Loss
V 3D Non-GAAP Reconciliation - Non-GAAP Net Loss (unauditea) Revenue Gross Profit Net Income (Loss) Stock-based compensation (Gain) Loss on fair value of warrants {Gain) Loss on fair value of contingent earnout liabilities Loss on fair value of debt extir Loss on extinguishment of debt Non-GAAP Net
Slide 19: 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