Velo3D Inc. (NASDAQ:VELO) CEO Arun Jeldi says the intensifying space race is pushing companies to accelerate production, driving growing demand for additive manufacturing as customers move from prototypes to large-scale deployments.

Multiple Customers Moving To Production

During Velo3D’s second-quarter earnings call on Tuesday, Jeldi noted that the Space race had intensified to the point where there were “multiple space companies” in the market and that the companies were “pushing the limits to speed up their production rates.”

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He then said that several “existing customers” of the company, who had proven their prototypes, were “going to production level at a high scale” and pointed towards the company’s energy market customers.

“To run all this energy market, electricity is the key,” Jeldi said, adding that clean energy customers were incorporating “various turbines and design changes” which have “led to a greater demand on production.”

Velo3D’s Production Ramp, Earnings

Jeldi, during the earnings call, signaled the need to up production of its 3D printers, saying that the company absolutely needed 100 machines to “actually run all the programs on the demand” that it had. The company expects to have half that capacity in place by next year.

The additive manufacturing company reported second-quarter revenue of $20.66 million, which exceeded market expectations of around $13.52 million. Velo3D also reported an EPS loss of 30 cents per share, edging out the analyst consensus of 31 cents. The company’s revenue grew 52.3% YoY.

The company collaborates with Space Exploration Technologies Corp. (NASDAQ:SPCX) and has historically provided the commercial space flight company with the 3D metal printing technology that is used for fabricating complex aerospace components, such as Raptor engines.

Velo provides a favorable price trend in the Long term, according to Benzinga Edge Rankings.

Price Action: Velo shares jumped 18.92% to $16.28 during overnight trading on Tuesday.

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