Metal 3D printing company Velo3D reports impressive second quarter results – 3DPrint.com

US financial markets appear to be in a state of uncertainty. On the one hand, few clear opinions are circulating on whether or not the US economy is in recession. On top of that, even if the answer to this question is “yes”, there seems to be even less agreement on whether this should be interpreted positively or negatively by investors.

Much of the uncertainty, of course, has to do with the trajectory of Federal Reserve interest rate hikes. Thus, the general financial ambiguity is likely to continue, until investors have a better idea of ​​the effects that the US central bank’s efforts have already had on manipulating inflation, how far the Fed seems to want to go. , etc. As I pointed out recently (also regarding Velo3D), it is currently quite difficult to know what to make of any positive short-term financial results.

Nonetheless, a strong quarter is still a strong quarter, and earlier this week Velo3D reported that in the second quarter of 2022, the company’s year-over-year growth (compared to the second quarter of 2021) was 160%. Perhaps even more impressively, Velo3D’s second quarter revenue was up 60% from the first quarter of 2022 – at the same time as the US GDP as a whole suffered a slight contraction.

In a press release, Benny Buller, founder and CEO of Velo3D, said: “We have accomplished this [growth] while the revenues of our peers have been relatively stable over the same period. … we may be the industry leader in metal additive manufacturing [AM] as we exit 2022, faster than we anticipated. …Looking ahead, given our execution in the first half, strong bookings in the second quarter, revenue visibility through our backlog, and continued production scale-up of Sapphire XC, we are very confident in our ability to achieve our 2022 revenue guidance of $89 million.

As Buller points out, Velo3D’s success so far this year is largely attributable to the latest addition to its Sapphire printer series, the Sapphire XC. So assuming the company is able to fill its backlog – currently representing $55 million in revenue in 2022 – Velo3D already appears to be meeting revenue expectations for the year. If the XC 1MZ rollout in Q3 is similarly successful, the company could be in a favorable position to exceed its 2022 expectations.

The issue of backlogs will be critical to the success of scaling the AM industry over the next few years. It will also likely play a role in determining which original equipment manufacturers (OEMs) have longevity and which are acquired or simply fail. A large number of pending orders can certainly be considered a plus, at least temporarily. However, in an industry where it seems like every OEM is touting it as a plus, too many companies with a large backlog of orders could quickly tip into customer skepticism about an emerging technology’s ability to deliver.

In this sense, the outcome of competing for supremacy in metal AM machine markets could end up coming down, quite simply, to companies’ ability to deliver orders in a timely manner. Velo3D already has a reputation for responding quickly to customer demand, setting deadlines and meeting them. Additionally, the company’s budding relationship with the federal government should also help it retain control of its supply chains. Again, it seems next to impossible at the moment to consider signs of momentary success, no matter how solid, as anything but momentary. But Velo3D is at least worth watching.

Images courtesy of Velo3D