2024 is a challenging year for Velo3D, as the company undergoes financial restructuring, leadership changes, and strategic adjustments to lay the foundation for stable growth in the future. Velo3D’s total revenue for 2024 is only $41 million, nearly halving compared to 2023, but the new management states that the company is entering a clearer development path.
To cope with financial pressure, Velo3D has implemented a series of measures, includingreducing operational costs, optimizing production efficiency, and redesigning its business model. CEO Arun Jeldi referred to the fourth quarter of 2024 as “transformative,” as the company has made significant progress in reducing costs and enhancing operational capabilities. Meanwhile, its newly launched Rapid Production Solutions (RPS) business has begun to show results, capable of quickly delivering high-quality components, and is expected to contribute up to 40% of revenue by 2026.New Business Model: From Hardware Sales to Comprehensive SolutionsIn addition to internal management, Velo3D’s transformation is also reflected in its change in market strategy. Velo3D previously focused on hardware sales, but is now shifting towards providing comprehensive solutions, especially for clients in the defense and aerospace sectors. For example, four Orbiter engines from Launcher were manufactured using Velo3D’s additive manufacturing technology, showcasing its potential in high-end applications.
△Four Orbiter engines from Launcher are 3D printed using Velo3D technologyJeldi emphasized that this new model aims tointegrate multiple revenue sources, improve gross margins, and reduce operational costs. He believes this will accelerate the company’s path to long-term profitability and help regain its leadership position in the additive manufacturing industry. According to forecasts,Velo3D’s revenue is expected to grow by over 30% in 2025, with plans to achieve EBITDA profitability in the first half of 2026.Debt Restructuring and Changes in Shareholder StructureAnother key turning point was Velo3D’s successful completion of a debt restructuring. Previously, Velo3D borrowed from two investment firms due to financial difficulties, but during a tight cash flow period, a third company, Arrayed Notes Acquisition Corp., intervened and acquired this debt. As part of the agreement, Arrayed canceled approximately $22 million of debt in exchange for a significant amount of Velo3D stock, becoming the new major shareholder. This move not only alleviated the company’s financial pressure but also injected stability into its balance sheet. Meanwhile, Velo3D significantly reduced expenses, with operational costs in 2024 down 25% from the previous year. This indicates that Velo3D has made substantial efforts to control spending, creating more room for future development.Looking Back: Glory and SetbacksTo understand Velo3D’s current situation, one must review its rise and fall. Founded in 2015, Velo3D aimed to push metal additive manufacturing technology to new heights. In 2021, it went public through a SPAC merger and enjoyed a period of great success. However, due to rapid expansion and increasing market competition, the company soon fell into financial trouble.
△Velo3D team at Formnext 2023At the end of 2023, Velo3D fired founder and CEO Benny Buller and initiated a comprehensive reform. Subsequently, the company received a non-compliance notice from the NYSE and was ultimately delisted to the over-the-counter (OTC) market. In the same year, Velo3D announced layoffs of nearly 45% and reached a debt restructuring agreement with creditors to maintain operations.Looking Ahead: Confidence and Challenges
△On October 7, 2021, the NYSE bell rang, and the VELO3D management team took a group photoAlthough the financial data for 2024 still shows a loss (net loss of $73.3 million for the year), the situation has improved compared to before. For instance, the gross margin improved from -33.9% in 2023 to -5.1% in 2024, and operational efficiency has gradually recovered. Management expects that as production scales up and operations are optimized, the gross margin will turn positive in 2025 and is expected to exceed 30%.Velo3D has set a revenue target of $50 million to $60 million for 2025, with capital expenditures expected to reach $20 million. Jeldi pointed out that the early demand for the RPS business is strong, coupled with close ties with key industry clients, making the future outlook more optimistic.Antarctic Bear’s Commentary: The Opportunity for RebirthVelo3D’s story is a typical tale of business ups and downs. Although it has gone through painful restructuring and strategic adjustments, through innovation and flexible changes, Velo3D has found a new direction. With a new business model, optimized cost structure, and strong technical support, Velo3D is moving towards “sustainable growth.” Whether this once-industry pioneer can rise again remains to be seen!
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