Velo3D is a tech company that employs an innovative method of 3D metal printing to manufacture high-end hardware and parts for specific use cases, including spaceships and rocket engines. The company, with a market cap of only $224 million, has been partnered with Elon Musk's SpaceX since 2018, after the space exploration company tried (and failed) to acquire Velo3D (VLD) -).
SpaceX now uses Velo3D and its machines to create specific parts for its Raptor engineers. Its customers additionally include Honda, Honeywell and Lockheed Martin.
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Following the surprise resignation of the firm's CFO Sept. 26, Velo3D's stock plummeted 19% in a single day, tumbling from $1.40 per share to $1.14. Velo3D shares, down more than 36% for the year, have been struggling lately; the last time the company broke a share price in excess of $6 was in March 2022, when it briefly hit $10.
Velo3D narrowly missed analyst loss projects for the second quarter of the year and failed to deliver on revenue projections. Still, the company reported $25 million in revenue for the quarter, a 28% increase from the year-ago period, and record new customer demand.
Benny Buller, Velo3D's CEO, said that demand remains strong as the company looks to continue its global expansion. "Importantly, our path to profitability remains clear," he said in a statement.
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The company reported a non-GAAP net loss per share of $.10 for the quarter, in line with the nine-cent per-share loss it reported in the first quarter of the year.
As the stock fell to its 52-week low, Cathie Wood, the CEO and investment lead of Ark Invest, saw a chance to boost Ark's holding in the company. Ark picked up a total of 1.6 million shares of Velo3D Sept. 27, worth around $1.8 million.
Ark's autonomous tech and robotics ETF picked up the bulk of the purchase, boosting its holding by 1.2 million shares. The fund now holds a total of 8.1 million shares of Velo3D, worth a little over $9 million and weighted at .95% of the ETF.
"We are excited about the future as demand for our industry-leading technology remains high as customers continue to look to Velo3D to manufacture the critical, high-value metal parts they need," Buller said in August.
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