Velo3D shares rose after the company posted higher revenue and said it reduced its debt.

The stock climbed 23.9% to $17.42 in premarket trading on Wednesday.

The additive manufacturing technology company said revenue rose 48% to $13.8 million.

Velo3D's loss narrowed to $7 million, or 28 cents a share, from a loss of $25 million, or $1.87 a share, the year before.

Velo3D also had a positive gross margin in the quarter, which Chief Executive Arun Jeldi said marked a key inflection point.

Demand remains strong in defense and aerospace, Jeldi said. To meet rising demand, Velo3D completed an equity offering in April to secure capital to invest in talent and infrastructure, the CEO said.

Gross proceeds of the offering were $50 million, the company said. Velo3D also completed a debt-to-equity conversion of $15 million during the first quarter, reducing its outstanding debt by about 70% to $9 million.

It also said it got a $9.8 million contract to support a program of the Defense Logistics Agency over the next five years.