Company: VLDXW
Filing Date: 2025-08-07
Form Type: S-1
Source: 0001641172-25-022475
Chunk: 93

Company: Velo3D, Inc.
Filing Date: 2025-08-07
Form: S-1
Chunk 93
---
 bookings and backlog,
we expect the demand for the Sapphire, Sapphire 1MZ, Sapphire XC and Sapphire XC 1MZ to increase our revenue in the future. We expect
Recurring Payment revenue to remain flat or decrease as we continue to shift our focus to 3D Printer system sales. We expect our Support
Service revenue to increase as the number of systems we have in the field increases. As of December 31, 2024, our backlog for firm orders
was $16 million for 3D Printers. Our focus for revenue has shifted to ensuring customer success and improving system reliability to strengthen
our existing customer network and developing new customer networks to increase demand.

| 59 |

Revenue trends from our largest customer have
historically been driven by the timing of its major orders for 3D Printers and the timing of the shipments under those orders. We shipped
our first Sapphire system to our largest customer in 2018, and as of December 31, 2024, we have shipped to this customer 26 in total
(Sapphire and Sapphire XC systems). We expect our largest customer to remain an important relationship going forward. However, the largest
customer’s contribution as a percentage of our total revenue will depend on the growth of our customer base. As of December 31,
2024, over 50% of our customers have multiple Sapphire family of systems.

Cost of Revenue

The following table presents the Cost of Revenue
disaggregated by product and service type, as well as the percentage of total cost of revenue.

|                           |     | Year                  
 Ended December 31,    |   2024 |     |       |   |     |   |    2023 |     |       |   |     |   |  Change |   |     |     |     % |    |
|:--------------------------|:----|:----------------------|-------:|:----|------:|:--|:----|:--|--------:|:----|------:|:--|:----|:--|--------:|:--|:----|:----|------:|:---|
|                           |     | -in thousands, except 
 percentages           |        |     |       |   |     |   |         |     |       |   |     |   |         |   |     |     |       |    |
| Cost of Revenue           |     |                       |        |     |       |   |     |   |