Velo3d, Inc. · NASDAQ:VELO
Velo3d — Q1 2024 Earnings Presentation
18 slides from Velo3d's earnings presentation, May 15, 2024
Slide 1: First Quarter 2024 Supplemental Slides
VELO” First Quarter 2024 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 Continued execution on strategic priorities Strong bookings in Q] — continued momentum in Q2 Lowered cost structure by >15% sequentially / 30% YoY Q1'24 year over year cash flow improved by >30% Completed shift to customer driven model - focus remains on reliability improvement Continue
Slide 4: Benefitting From New Go to Market Strategy
Vv” Benefitting From New Go to Market Strategy Completed key changes in sales strategy Focus on customer driven model showing success — new and existing demand nstituted disciplined sales process — 4-fold sequential increase in win rate jarrowing focus to those sectors with proven success - Space/De
Slide 5: Continued Execution on 2024 Strategic Priorities
Vv’ Continued Execution on 2024 Strategic Priorities v Increased sequential Sapphire XC install efficiency - >40% reduction in install days and Enhance quality of newly manufactured labor Sapphire printers ¥ Improved customer issue resolution timing - 100% of high priority tickets resolved in Qi'24
Slide 6: Leveraging Diverse Applications
Vv’ Leveraging Diverse Applications Defense / Industrial Technology Sector Space / Aerospace BE: —_— * Turbo fan demonstrator part * Heat exchanger example * Ramjet surface finishing trial * Built on Sapphire XC * Used in next gen Al * Eliminates $20K cost in post * One of the largest CP1 AM parts s
Slide 7: Slide 7
Slide 8: Financial Summary
Vv” Financial Summary Ql'24 Q4'23 Q1'23 Total Revenue $9.8 $2.5 $26.7 3D Printer Sales 7.7 0.5 24.5 Support Service / Recurring Revenue 21 20 22 Cost of Goods sold 12.6 34.0 24.2 Gross Profit (2.8) (31.5) 25 % Gross Margin (28.8)% (1,283)% 9.5% Total Operating Expenses 18.6 25:9 26.8 Non-GAAP Operat
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 maintenance
Slide 10: Operating expenses by quarter
$5 $10 $15 $20 $25 $30 Q2 2023A Q3 2023A Q4 2023A Q1 2024A R&D (excl. SBC) S&M (excl. SBC) G&A (excl. SBC)
Slide 11: 2024 Outlook
V’ 2024 Outlook Q2'24- sequential revenue growth of >30% FY 2024 Guidance Unchanged Revenue: $80 - $95M Gross margin: Q424: ~30%* Non-GAAP Opex: $40- $50M** Expect to achieve cash flow breakeven in 2H24* * Excludes impact of one-time realignment / financing activities ** The Company has not provided
Slide 12: Q&A
Qé&A
Slide 13: Appendix
VELO” Appendix
Slide 14: Non-GAAP Financial Information
Vv Non-GAAP Financial Information The Company uses non-GAAP financial measures, such as Non-GAAP / Adjusted operating expenses, EBITDA, Adjusted EBITDA, Adjusted EBITDA excluding merger related transactional costs, loss on convertible note modification, and Non-GAAP net (loss), to help it make strat
Slide 15: Adjusted operating expenses reconciliation
% of Rev % of Rev % of Rev Revenue $ 9,785 100.0 % $ 2,455 100.0 % $ 26,687 100.0 % Operating expenses Research and development 5,043 51.5 % 9,886 402.7 % 10,417 39.0 % Selling and marketing 4,809 49.1 % 5,175 210.8 % 6,174 23.1 % General and administrative 8,783 89.8 % 10,877 443.1 % 10,191 38.2 %
Slide 16: Adjusted EBITDA reconciliation
% of Rev % of Rev % of Rev Revenue $ 9,785 100.0 % $ 2,455 100.0 % $ 26,687 100.0 % Net Income (Loss) (28,314) (289.4)% (56,149) (2287.1)% (36,325) (136.1)% Interest expense 3,897 39.8 % 6,140 250.1 % 220 0.8 % Tax expense 4 0.0 % — — % — — % Depreciation and amortization 4,568 46.7 % 4,794 195.3 %
Slide 17: Non-GAAP net loss reconciliation
% of Rev % of Rev % of Rev Revenue $ 9,785 100.0 % $ 2,455 100.0 % $ 26,687 100.0 % Gross Profit (2,815) (28.8)% (31,498) (1283.0)% 2,532 9.5 % Net Income (Loss) $ (28,314) (289.4)% $ (56,149) (2287.1)% $ (36,325) (136.1)% Stock-based compensation 5,087 52.0 % 5,445 221.8 % 6,236 23.4 % (Gain) Loss
Slide 18: Thank You
VELO” Thank You