Velo3D ended 2024 with a 47% revenue drop, but remains optimistic about the coming years
The Atomic Layers: S9E3 (00240)
Atomic Layer of the Day:
Last year, Velo3D narrowly escaped financial demise at the last moment. Thanks to a debt-for-equity swap, Arrayed Notes Acquisition Corp. took control of the majority stake, while also canceling $22 million in debt. This gave Velo3D some breathing room, but it also raised a crucial question—do the new owners have the patience and resources to wait for a return on their investment?
After last year’s gloom and silent desperation, it now seems that Velo3D has gained some positive vibes. The company and its key representatives have become very active on social media, frequently referencing national values and appearing to look toward the new administration with confidence.
But in the end, it all comes down to money. While we don’t yet know how Velo3D is faring under its new owner, we do know how the past year went.
On Monday, March 31, Velo3D released its financial results for 2024.
Revenue in Q4 2024 reached $12.6 million, a significant increase compared to the same period in 2023, when the company reported only $2.5 million. Unfortunately, total revenue for 2024 amounted to just $41 million, a 47% decline from 2023’s $77.4 million.
This drop was primarily due to fewer 3D printing systems sold, which also affected margins.
The gross margin in Q4 2024 stood at -3.5%, a substantial improvement compared to Q4 2023, when it exceeded -100%. On a full-year basis, the gross margin for 2024 was -5.1%, whereas in 2023, it stood at -33.9%.
Velo3D hopes to reverse this trend with the launch of its new service business, Rapid Production Solutions (RPS). The company claims that RPS could account for as much as 40% of its revenue by 2026.
Net loss in 2024 amounted to -$73.3 million, nearly half of the $135.1 million loss recorded in 2023. This reduction was driven by a significant 25% year-over-year decrease in operating expenses.
Velo3D’s outlook for 2025 is optimistic—the company expects revenue to grow by more than 30% compared to 2024, reaching a range of $50-60 million. A gradual improvement in gross margin is also anticipated, with a forecast of exceeding 30% in Q4 2025. Additionally, Velo3D aims to achieve positive EBITDA in the first half of 2026.
What will come of all this? Donald Trump’s administration’s policy of systematically closing off the U.S. economy to foreign products and technologies (tariff wars) could certainly help. Velo3D is placing a strong focus on the defense sector, where competition—at least in theory—will be limited.
On paper, things don’t look so bad, but this is 3D printing… anything is possible…
Atomic Layer from the Past:
04-03-2018: Xact Metal introduced two metal 3D printers – XM200C and XM200S.
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News & Gossip:
Today, there will be three news items from the software sector. We start with Divergent Technologies, which has announced a partnership with webAI to integrate privacy-focused AI into digital manufacturing systems. The collaboration aims to enhance industrial robotics, logistics, and vehicles by combining Divergent’s adaptive production platform with webAI’s AI solutions. The partnership promises smarter, more secure AI-driven hardware.
SP3D (formerly Spare Parts 3D) opened early access for THEIA, its AI-powered 2D-to-3D conversion platform. The solution transforms technical drawings into 3D models, enabling faster quoting, logistics optimization, and AR/VR content creation. Targeting industries with legacy 2D assets, THEIA requires no CAD expertise. The software was developed with École Normale Supérieure.
Phasio and AMIS have formed a strategic partnership to integrate their complementary software solutions. The collaboration combines Phasio's digital production workflow platform with AMIS Pro's advanced build preparation capabilities, creating an automated order-to-delivery system. This integrated solution streamlines the entire production process from quoting to final delivery while minimizing manual intervention. The system automatically transfers job data between platforms, optimizes build setups for various 3D printing technologies including MJF and SLS, and maintains comprehensive production records. Both companies will showcase the integrated solution at the upcoming RAPID + TCT event in Detroit.
Pawel. Do you view Velo3D competing with its own Customer Base by offering Production Services? Where’s the line???