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Nuburu, Inc. (BURU)·Q4 2022 Earnings Summary
Executive Summary
- Q4 2022 revenue was $0.44M, up 602% year over year, with full-year 2022 revenue of $1.44M (+282% YoY), reflecting initial deliveries under contracts with Essentium and the U.S. Air Force’s AFWERX program and early commercialization momentum .
- Profitability remained deeply negative: Q4 gross profit was a loss of $0.77M and EBITDA loss was $3.86M; free cash flow in Q4 was a use of $3.19M. Full-year 2022 EBITDA loss was $13.55M and FCF was a use of $10.76M .
- Balance sheet at year-end showed cash and equivalents of $2.88M, current liabilities of $14.59M (including $7.3M of convertible notes), and stockholders’ deficit of $(1.84)M, underscoring the need for external financing as the company scales .
- Management launched the second-generation BL‑Series lasers, with shipments expected to begin in Q2 2023, and completed the SPAC business combination and NYSE American listing—key catalysts for commercialization and capital access; updated financial guidance was deferred to March 2023 .
What Went Well and What Went Wrong
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What Went Well
- Triple-digit growth: Q4 revenue grew 602% YoY to $0.44M; FY revenue rose 282% to $1.44M as commercialization began to scale .
- Customer traction: “We began making deliveries under our previously announced contracts with Essentium and AFWERX… and we continue to ship laser systems,” said CEO Dr. Mark Zediker .
- Product roadmap: Launch of BL‑Series lasers at Photonics West; “we expect [it] will further enhance our competitive position… with shipments beginning in Q2” (Dr. Zediker) .
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What Went Wrong
- Persistent negative unit economics: Q4 total gross margin was a loss of $0.77M; FY gross loss was $3.42M, indicating scale-up and cost absorption pressures .
- Cash burn and widening losses: Q4 EBITDA loss of $3.86M (vs. $2.51M prior-year Q4) and Q4 FCF use of $3.19M; FY EBITDA loss of $13.55M and FCF use of $10.76M .
- Liquidity/structure: Year-end cash stood at $2.88M with current liabilities of $14.59M (incl. $7.3M convertible notes), and stockholders’ equity was negative $(1.84)M, heightening financing risk .
Financial Results
Quarterly comparison (Q4 2021 → Q4 2022)
Annual comparison (FY 2021 → FY 2022)
Balance sheet snapshot
Notes:
- Management reported Q4 revenue YoY growth of 601.6% and FY revenue YoY growth of 282.0% as part of the highlights .
- EBITDA and Free Cash Flow are non‑GAAP measures; the company provides definitions and reconciliations (see Non‑GAAP section and tables) .
- Prior-quarter (QoQ) comparisons for Q3 2022 were not disclosed in the company’s Q4 materials; Nuburu operated privately prior to the January 31, 2023 business combination .
Guidance Changes
Earnings Call Themes & Trends
Management Commentary
- “We ended 2022 on a high note as we began making deliveries under our previously announced contracts with Essentium and AFWERX… We also launched our latest product, the NUBURU BL‑Series… which we expect will further enhance our competitive position… with shipments beginning in Q2.” — Dr. Mark Zediker, CEO .
- “These recent milestones further validate the potential for our solutions in metal processing in attractive end markets such as 3D printing, aerospace, consumer electronics and e‑mobility…” — Dr. Mark Zediker, CEO .
- “Despite the difficult market conditions, we are pleased to have successfully completed our business combination… we plan to provide the market with updated financial guidance in March 2023.” — Brian Knaley, CFO .
- Non‑GAAP methodology: Company defines EBITDA as net income (loss) plus/minus interest, taxes, depreciation and amortization; Free cash flow as net cash from (used in) operating activities less capital expenditures. Limitations and reconciliations were provided .
Q&A Highlights
- No Q4 2022 earnings call transcript is available in company filings; the results were communicated via an 8‑K press release with detailed financial tables and non‑GAAP reconciliations .
Estimates Context
- The company did not reference Wall Street consensus in the Q4 2022 press release, and it deferred providing updated guidance until March 2023; as such, we are not presenting estimate comparisons for Q4 2022 .
Key Takeaways for Investors
- Early commercialization evidence: Q4 revenue inflected to $0.44M (+602% YoY) on initial deliveries to Essentium and AFWERX, supporting product‑market fit for blue-laser applications in welding and additive manufacturing .
- Execution vs. liquidity: While orders and deliveries are ramping, gross margins remain negative and cash was $2.88M vs. $14.59M in current liabilities at year-end, necessitating continued access to capital as operations scale .
- Product catalyst: BL‑Series launch with shipments slated for Q2 2023 should broaden addressable use cases and may accelerate adoption if customer validations convert to production volumes .
- Programmatic milestones: Continued progress on AFWERX and Essentium supports credibility with government and industrial customers; monitor for additional wins and production conversions .
- Watch for guidance: Management indicated an updated financial outlook would be provided in March 2023; guidance detail and order visibility will be key to underwriting revenue cadence and cash needs .
- Risk/reward skew: Negative equity, convertible notes and cash burn raise financing and dilution risk; upside depends on converting pilot/qualification units into recurring shipments and improving unit economics .
Appendix: Source Documents Read
- 8‑K (Feb 22, 2023): Announces Fourth Quarter and Full Year 2022 Financial Results; includes Exhibit 99.1 press release with detailed financial tables and reconciliations .
- 8‑K (Mar 8, 2023): Announces Full Year 2022 Financial Results for Tailwind (SPAC entity prior to business combination) — context on listing/business combination timing .
Notes on availability:
- Prior two quarters’ (Q2 and Q3 2022) Nuburu earnings materials and a Q4 2022 earnings call transcript were not present in company filings; Nuburu completed its business combination on Jan 31, 2023 and subsequently began reporting as a public company .