Nuburu, Inc. (BURU)·Q1 2023 Earnings Summary

Executive Summary

• Q1 2023 revenue was $0.47M, up 422% YoY, with gross profit of $(0.74)M and gross margin of (158)%; operating expenses rose to $4.6M driven by public-company and one-time business combination costs, resulting in a net loss of $(4.77)M and $(0.19) EPS .
• Management reiterated full-year 2023 guidance: revenue >$3M, EBITDA $(21)–$(23)M, and free cash flow $(24)–$(26)M; confidence is predicated on raising capital in the next 6–9 months .
• Strategic progress: BL Series launch and orders, ongoing deliveries to Essentium, DoD multiple-award contract participation (ceiling $75M across seven contractors), and Air Force program milestones; the DoD award is not yet revenue-defined for BURU .
• Potential stock catalysts: BL-1000 launch (June), Air Force program update “in the weeks to come,” continued commercial qualifications, and capital-raising visibility; revenue is guided to be 2H-weighted .

What Went Well and What Went Wrong

• What Went Well
  • 422% YoY revenue growth to ~$0.47M; management cites “continued forward progress” in welding, 3D printing, and defense, and says Q1 was “very impactful” .
  • BL Series launch with orders; continued deliveries to Essentium; world’s first blue 3D printer light engine delivered under an Air Force contract .
  • Management reiterates 2023 guidance; quote: “we reiterate the full year 2023 guidance… revenue greater than $3 million… EBITDA loss in the range of $21–$23 million… free cash flow… $24–$26 million” .
• What Went Wrong
  • Gross margin remained negative at (158)%, though improved from (517)% YoY; negative gross profit reflects early-stage shipments and scale effects .
  • Operating expenses rose to $4.6M (from $1.8M), driven by ~$1.2M in one-time business combination costs and ~$(0.7)M higher R&D; recurring public-company costs also elevated OpEx .
  • Liquidity tightness at quarter-end ($1.5M cash); management’s reiterated outlook assumes successful capital raise within 6–9 months, introducing execution risk .

Financial Results

Income statement and non-GAAP metrics (oldest → newest):

KPIs and balance sheet trend (oldest → newest; includes the subsequent quarter for context):

Context:

• Q1 2023 YoY margin improvement (still negative) stems from early-unit shipments and anticipated scale benefits; CFO: gross margin (158)% vs (517)% prior year .
• Q2 2023 included a $0.6M AO-line inventory write-off that pressured gross profit; gross margin was (136)% with higher revenue and mix effects .

Guidance Changes

Notes:

• Management reiterated guidance on the Q1 call and ties confidence to raising capital in 6–9 months .

Earnings Call Themes & Trends

Management Commentary

• Strategic positioning: “We have seen continued forward progress in our key markets of welding, 3D printing and defense… building momentum in our commercial pipeline” — Dr. Mark Zediker, CEO .
• Commercial progress: “Completed our first delivery of units to Essentium… potentially a multimillion dollar, multiyear agreement” .
• Product roadmap: “Next release… approximately 1 kilowatt with sufficient brightness… requested by all of the electric vehicle customers” .
• Margin trajectory: “Gross margin… (158)% compared to (517)% for the same period in the prior year… as we scale the company, our gross profit margins will improve substantially” — CFO .
• Funding needs: “Reiterating this guidance reflects our confidence in our ability to raise the appropriate level of capital within the next 6 to 9 months” — CFO .

Q&A Highlights

• Cadence and guidance visibility: Management will update cadence quarterly; revenue is a key KPI for 2023 execution against reiterated guidance .
• DoD IDIQ context: BURU will receive RFQs under the $75M multiple-award ceiling; BURU’s role and revenue contribution not yet defined (ceiling is across seven contractors) .

Estimates Context

• Wall Street consensus estimates via S&P Global were unavailable at the time of this analysis (no usable estimate data retrieved). As a result, we cannot quantify beats/misses versus consensus for Q1 2023.

Key Takeaways for Investors

• Execution progress with meaningful YoY revenue growth and commercial milestones, but the model remains pre-scale with negative gross margins; margin path depends on production scale, mix shift to BL Series, and cost-downs .
• 2023 outlook is unchanged (>$3M revenue; EBITDA and FCF losses as guided), but explicitly contingent on capital raises within 6–9 months; funding milestones are critical to the thesis and the near-term stock narrative .
• Defense pipeline (Air Force progress, DoD IDIQ participation) offers credibility and potential longer-term upside, but revenue timing is uncertain; watch for contract task orders and scope definition updates .
• BL-1000 introduction and additional customer qualifications in 2H could serve as commercialization catalysts; management continues to target EV batteries, consumer electronics, and 3D printing .
• Liquidity improved post-Q1 (cash $6.6M at 6/30/23) amid capital actions, but cash burn remains substantial; ongoing balance-sheet management will drive estimate revisions once coverage matures .
• The investment case near term is a milestones trade (product launches, funding, contract traction); medium term depends on converting evaluations into volume supply agreements and improving gross margins .

Appendix: Other Relevant Q1 2023 Period Disclosures

• Investor presentation (May 2, 2023) re-affirmed target markets, IP portfolio (190+ patents/patent applications as of March 2023), and sustainability value proposition of blue lasers .
• FY22/Q4 2022 press release provides the immediate prior-quarter baseline: Q4 2022 revenue $0.44M; EBITDA $(3.86)M; FCF $(3.19)M .
• March 21, 2023 guidance announcement (pre-Q1 results) set FY23 guidance that was reiterated with Q1 results .