VLD - Velo3D stock soars 34% as Q2 revenue more than doubles; FY22 outlook affirmed

Velo3D ( NYSE: VLD ) stock rose ~34% on Aug. 10 after Q2 revenue increased ~175% Y/Y and the company reiterated its FY22 revenue outlook.

Revenue grew to $19.64M, compared to $7.15M in Q2 2021.

The company said the increase was mainly due to a more favorable mix of Sapphire XC system sales resulting in an increase in average selling price. Recurring revenue was in line with forecasts and is expected to increase in H2 2022 due to the higher number of systems in the field.

Velo3D added that it booked $18M in new orders in Q2 and has a total backlog of $55M.

"As a result of this strong demand, we now have significant visibility in achieving our revenue guidance this year as more than 95% of our 2022 revenue forecast is now either recognized, booked or recurring revenue," said Velo3D CEO Benny Buller.

The company, however, noted that while gross margin for Q2 (6%) was in line with expectations, ongoing supply chain challenges changed the timing of certain forecasted cost reduction benefits that will impact gross margin in H2 2022.

Bill of material cost savings which were expected for H2 2022 were now expected to be delayed until the H1 2023 as the company reduces pre-purchased, higher cost inventory acquired in H1 2022 to offset ongoing component shortages and delivery delays.

The company added that the challenges will impact the delivery schedule of its remaining launch customer systems with certain shipments shifting to Q3 and Q4 resulting in more gross margin impact in these quarters than initially expected.

Q2 Non-GAAP net loss widened to -$21M, compared to -$10M in Q2 2021. Meanwhile, GAAP net income was $128M, compared to a net loss of -$12.5M, in the prior year period.

The company ended Q2 with $142M in cash and investments.

Outlook :

"Looking forward, given our first half execution, strong second quarter bookings, revenue visibility through our backlog and the further scaling of Sapphire XC production, we are very confident in our ability to meet our 2022 revenue guidance of $89 million," commented Buller.

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