Velo3d, Inc. · NASDAQ:VELO
Velo3d — Q2 2023 Earnings Presentation
18 slides from Velo3d's earnings presentation, Aug 10, 2023
Slide 1: Second 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: Q2'23 Summary
V*” Q223 Summary Continued strong demand Q2 revenue of $25M - up 28% YoY Fastest growing 3D printing co/#2 market share in LPBF' (doubled in last 12 mos) Progress on plan for profitability Sequential GM improvement - 11% to 12% Printer margins up more than 400 basis points to 15% Q223 bookings Booki
Slide 4: Technology Driving Market Share Gains
Vv” Technology Driving Market Share Gains Velo3D Year over Year Metal AM Market Share Year over Year Metal AM Hardware Share Changes (Q1 2021 - Q1 2023)! (Q1 2023 vs Q1 2022)? 20% 15% B HB Other Bound Metal Extrusion Oe | | HD Blother Binder Jetting zz _ CO ee 5% a « ; HE RENISHAW) »» Qi'21 Ql'22 Qi
Slide 5: Growth Through Land and Expand Strategy
Number of Systems Growth Through Land and Expand Strategy Number of Systems by Customer Vintage! note a 2019 a2 >100 systems in the field / ~40 customers >400% growth in installed base in 3 years Strong repeat customer demand ~50% of base have multiple systems ~20% of base have 4+ systems ~200 parts
Slide 6: Key Industry Update
Vv” Key Industry Update Space Improved performance / ability to rapidly implement design changes Added NASA, Avio as customers in Q223 Defense Reduced lead times / increased readiness / weapon development 3 new leading defense contractors (9 total) / >35% of 1H systems revenue Aerospace New manufact
Slide 7: 2023 Strategic Priorities - Q2'23 Update
V* 2023 Strategic Priorities -Q223 Update Grow revenue by >35% Continue to expand new customer base - record bookings in Q223 Drive revenue growth at existing customers — new parts / applications Visibility on rebounding existing customer demand in 2H23 Continue to grow in key verticals: space, defe
Slide 8: Cre
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Slide 9: Financial Summary
V* Financial Summary Q2 23 Ql 23 Q2 22 Total Revenue $25.1 $26.8 $19.6 Year of Sale 23.2 24.6 17.6 Recurring Revenue LQ) 2.2 2.0 Cost of Goods Sold 22.2 Zo) 18.4 Gross Profit 3.0 29 2 % Gross Margin 12% 11% 6% Total Operating Expenses 28.7 27.0 27.5 Non-GAAP Operating Expenses! 22.2 20.8 22.5 Adjust
Slide 10: Gross Margin Expansion
Vv” Gross Margin Expansion LTM Gross Profit Q223 drivers $4,500 18.0% Improved material costs 15.0% ; ; - $3,500 Increasing production efficiency 12.0% 2023 driver: 023 drivers $2,500 9.0% Bill of Material cost reduction $1,500 6.0% Volume - overhead cost absorption/labor efficiencies .., ASP improv
Slide 11: Strong Balance Sheet Supports Growth Plan
Vv’ Strong Balance Sheet Supports Growth Plan Balance Sheet-June 30, 2023 ($M) $65M $17M P| $12M $16M $47M — Q12023 Adj. EBITDA Inventory Other CAPEX Financings Q2 2023 Cash Working End Capital Cash and Investments $47 Other Current Assets m1 Long Term Assets ZK) Total Assets $207 Current Liabilitie
Slide 12: 2023 Outlook
V* 2023 Outlook Q3 2023 Guidance Revenue: $25 - $29M Gross margin: 14% - 18%* Updated FY 2023 Guidance Revenue: $105 - $115M, up >35% YoY Gross margin: 14% - 18% (21 - 25% in Q423)* Focus for 2023: improving profitability and cash flow * Q323 / FY 2023 gross margin ranges assumes no impact from pote
Slide 13: Q&A
Slide 14: Appendix
VELO Appendix 1 (408) 610-3915 511 Division St. Campbell, CA 95008
Slide 15: Non-GAAP Adjusted Operating Expenses Reconciliation
Velo3D, Inc. NON-GAAP Adjusted Operating Expenses Reconciliation (Unaudited) Three months ended Six months ended Three months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 March 31, 2023 March 31, 2022 (In thousands, except for percentages) % of Rev % of Rev % of Rev % of Rev % of Re
Slide 16: Non-GAAP Adjusted EBITDA Reconciliation
Velo3D, Inc. NON-GAAP Adjusted EBITDA Reconciliation (Unaudited) Three months ended Six months ended Three months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 March 31, 2023 March 31, 2022 (In thousands, except for percentages) % of Rev % of Rev % of Rev % of Rev % of Rev % of Rev R
Slide 17: Non-GAAP Net Income (Loss) Reconciliation
Velo3D, Inc. NON-GAAP Net Income (Loss) Reconciliation (Unaudited) Three months ended Six months ended Three months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 March 31, 2023 March 31, 2022 (In thousands, except for percentages) % of Rev % of Rev % of Rev % of Rev % of Rev % of Rev
Slide 18: Disclaimer
V Disclaimer 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, inc