Over $22 million in revenue and bookings of $38
million in the third quarter 2023
Achieved over $120 million in annualized cost
savings, one quarter ahead of schedule
Announced targets for revenue growth, expanding
gross margins, and additional cost management
Ouster, Inc. (NYSE: OUST) (“Ouster” or the “Company”), a leading
provider of high-performance lidar sensors for the automotive,
industrial, robotics, and smart infrastructure industries,
announced today financial results for the three and nine months
ended September 30, 20231.
Third Quarter 2023 Highlights
- Over $22 million in revenue, up 15% quarter over quarter.
- Booked2 $38 million in business with new and existing
customers, representing a book-to-bill ratio of 1.7x.
- GAAP gross margins of 14%, compared to 1% in the second quarter
of 2023.
- Non-GAAP gross margins3 of 33%, compared to 26% in the second
quarter of 2023.
- Shipped over 3,300 sensors for revenue in the third quarter, up
10% quarter over quarter.
- Adjusted EBITDA3 loss improved to $18 million, compared to a
loss of $24 million in the second quarter of 2023.
- Net loss of $35 million in the third quarter of 2023, compared
to $123 million in the second quarter of 2023.4
- Cash, cash equivalents, restricted cash, and short-term
investments balance of $202 million as of September 30, 2023.
"Ouster continued to realize the benefits of our merger with
Velodyne as we exceeded revenue guidance, maintained strong
quarterly bookings, improved gross margins, and further reduced
costs to bring spending below third quarter 2022 pre-merger
levels," said Ouster CEO Angus Pacala. "We are pleased with the
traction of our software offerings and are making progress towards
being a provider of complete digital lidar solutions. In addition,
we are encouraged by the positive customer feedback on our
solid-state automotive Digital Flash (DF) sensor. As we look to our
new operating framework, we are taking major steps to achieve
profitability."
Ouster delivered sequentially higher gross margins in the third
quarter of 2023, in line with its expectations for improvements
during the second half of the year. Margin expansion was driven by
higher revenues, a favorable mix shift in Ouster’s product
portfolio, and lower manufacturing costs attributable to
operational improvements. GAAP gross margins of 14% include certain
expenses outside of ordinary operations associated with the
consolidation of product lines and outsourced manufacturing of
Velodyne products. Non-GAAP gross margins improved to 33%, a
near-record level since becoming a public company. Management
expects gross margins to improve further in the fourth quarter of
2023.
____________________________________ 1 The comparative financial
results for the three and nine months ended September 30, 2022
reflect only the results of standalone Ouster. The financial
results for the nine months ended September 30, 2023 are composed
of Ouster standalone performance through February 10, 2023 and
combined performance of Ouster and Velodyne for the remainder of
the period. The results for the three months ended September 30,
2023 and June 30, 2023 reflect the combined performance of Ouster
and Velodyne. 2 Bookings represent binding contract orders entered
during the period. 3 Adjusted EBITDA loss and non-GAAP gross margin
are non-GAAP financial measures. See Non-GAAP Financial Measures
for additional information and reconciliations of these measures to
their respective most directly comparable financial measures
calculated in accordance with U.S. GAAP. 4 Net loss includes
goodwill impairment non-cash charges of $67 million in the second
quarter 2023.
2023 Business Objective Updates
- Drive new business through targeted sales approach to deliver
near-term growth
- Execute on the digital lidar roadmap for OS and DF series to
expand serviceable market
- Develop a robust software ecosystem to accelerate lidar
adoption
- Build a financially strong business to support long-term growth
and deliver value to shareholders
Drive New Business: During the
quarter, Ouster booked a multi-million dollar contract to supply
REV7 sensors for use in a mapping application. REV7's enhanced
range, accuracy, and precision are expanding the addressable market
by uncovering new opportunities within this sub-vertical. The
Company also booked a significant contract to provide a complete
lidar solution to a leading logistics company. This win leverages
the breadth of Ouster’s REV7 sensor suite paired with its advanced
Gemini Detect perception software platform.
Execute on Digital Product Roadmap:
Ouster progressed on its solid-state DF product roadmap in the
third quarter, including demos of its early B-samples with over a
dozen OEMs and Tier 1s in Europe, North America, Korea and Japan.
At only 40mm tall, these final form-factor DF sensors can detect
10% reflective objects at up to 200 meters range with camera-like
resolution. With the upcoming Chronos powered DF sensor, Ouster
expects 2024 to reflect the culmination of years of investing in
building the end-state architecture for automotive lidar.
Develop Robust Software Ecosystem:
Ouster achieved major software milestones in the third quarter,
which are expected to accelerate product adoption and reflect
growing demand for lidar-powered smart infrastructure solutions.
This included completing the unification of Blue City and Ouster
Gemini and adding new performance improving deep learning AI
perception models. In addition, the Company booked software coupled
sales worth millions of dollars, which will increase its software
installed base to over 375 cumulative sites.
Build Financially Strong
Business:
- Cost savings: Ouster achieved annualized cost savings of over
$120 million during the third quarter, baselined against the
standalone cost structures of the two companies as of the third
quarter 2022. Notably, this brings Ouster below the pre-merger
spending levels it incurred as a standalone company during the
third quarter of 2022.
- Lowering cost of capital: Ouster closed on a new credit
facility and repaid its existing term loan on October 25, 2023.
This is expected to result in a significantly lower interest
expense and increased financial and operational flexibility going
forward.
- Long-term financial framework: Ouster has set a financial
framework focused on achieving 30-50% annual revenue growth,
expanding gross margins to 35-40%, and maintaining operating
expenses at or below third quarter 2023 levels. The Company expects
to achieve meaningful progress against these goals over the next 18
months.
Fourth Quarter 2023 Outlook
For the fourth quarter of 2023, Ouster expects to achieve $23
million to $25 million in revenue.
Conference Call
Information
Ouster will host a conference call and live webcast for analysts
and investors at 5:00 p.m. ET today, November 9, 2023 to discuss
its financial results and business outlook. To access the call,
please register at
https://conferencingportals.com/event/ERDXYEAl.
Upon registering, each participant will be provided with call
details and a registrant ID. The webcast and related presentation
materials will be accessible for at least 30 days on Ouster’s
investor relations website at https://investors.ouster.com. A
telephonic replay of the conference call will be available through
November 23, 2023. To access the replay, please dial (800) 770-2030
from the U.S. or (647) 362-9199 from outside the U.S. and enter the
conference ID number: 93428.
About Ouster
Ouster (NYSE: OUST) is a leading global provider of
high-resolution scanning and solid-state digital lidar sensors,
Velodyne Lidar sensors, and software solutions for the automotive,
industrial, robotics, and smart infrastructure industries. Ouster
is on a mission to build a safer and more sustainable future by
offering affordable, high-performance sensors that drive mass
adoption across a wide variety of applications. Ouster is
headquartered in San Francisco, CA, with offices in the Americas,
Europe, Asia-Pacific, and the Middle East. For more information,
visit www.ouster.com, or connect with us on Twitter or
LinkedIn.
Forward-Looking
Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. The Company intends such forward-looking statements to be
covered by the safe harbor provisions for forward-looking
statements contained in Section 27A of the Securities Act of 1933,
as amended and Section 21E of the Securities Exchange Act of 1934,
as amended. Such statements are based upon current plans, estimates
and expectations of management that are subject to various risks
and uncertainties that could cause actual results to differ
materially from such statements. The inclusion of forward-looking
statements should not be regarded as a representation that such
plans, estimates and expectations will be achieved. Words such as
“anticipate,” “expect,” “project,” “intend,” “believe,” “may,”
“will,” “should,” “plan,” “could,” “may,” “continue,” “target,”
“contemplate,” “estimate,” “forecast,” “guidance,” “predict,”
“possible,” “potential,” “pursue,” “likely,” and the negative of
these terms and similar expressions are intended to identify
forward-looking statements, though not all forward-looking
statements use these words or expressions. All statements, other
than historical facts, including statements regarding Ouster’s
revenue and gross margin guidance; anticipated new product launches
and developments; its future results of operations, cash reserve
and financial position; anticipated cost savings, including
reductions in cost of capital; execution against the Company’s
product roadmap and demand for products; the Company’s path to
profitability and long-term financial framework; industry and
business trends; its business objectives, plans, strategic
partnerships, market growth; manufacturing transitions; benefits of
the Company’s merger with Velodyne; and its competitive market
position constitute forward-looking statements. All forward-looking
statements are subject to risks and uncertainties that may cause
actual results to differ materially from those that we expected,
including, but not limited to, risks related to Ouster’s limited
operating history and history of losses; the negotiating power and
product standards of its customers; fluctuations in its operating
results; its ability to successfully integrate its business with
Velodyne and achieve the anticipated benefits of the Velodyne
merger; supply chain constraints and challenges; cancellation or
postponement of contracts or unsuccessful implementations; the
ability of its lidar technology roadmap and new software solutions
to catalyze growth; the adoption of its products and the growth of
the lidar market generally; Ouster’s ability to grow its sales and
marketing organization; substantial research and development costs
needed to develop and commercialize new products; the competitive
environment in which Ouster operates; selection of Ouster’s
products for inclusion in target markets; Ouster’s future capital
needs and ability to secure additional capital on favorable terms
or at all; its ability to use tax attributes; Ouster’s dependence
on key third party suppliers, in particular Benchmark Electronics,
Inc., Fabrinet, and other suppliers; Ouster’s ability to maintain
inventory and the risk of inventory write-downs; inaccurate
forecasts of market growth; Ouster’s ability to manage growth and
recognize anticipated cost savings; the creditworthiness of
Ouster’s customers; risks related to acquisitions; risks related to
international operations; risks of product delivery problems or
defects; costs associated with product warranties; Ouster’s ability
to maintain competitive average selling prices or high sales
volumes or reduce product costs; conditions in its customers’
industries; Ouster’s ability to recruit and retain key personnel;
Ouster’s ability to adequately protect and enforce its intellectual
property rights, including as relates to Hesai Group; Ouster’s
ability to effectively respond to evolving regulations and
standards; risks related to operating as a public company; and
other important factors discussed in the Company’s Annual Report on
Form 10-K for the year ended December 31, 2022, that are further
updated from time to time in the Company’s other filings with the
SEC. Readers are urged to consider these factors carefully and in
the totality of the circumstances when evaluating these
forward-looking statements, and not to place undue reliance on any
of them. Any such forward-looking statements represent management’s
reasonable estimates and beliefs as of the date of this press
release. While Ouster may elect to update such forward-looking
statements at some point in the future, it disclaims any obligation
to do so, other than as may be required by law, even if subsequent
events cause its views to change.
In addition, see information below concerning non-GAAP financial
measures.
Non-GAAP Financial
Measures
In addition to its results determined in accordance with
generally accepted accounting principles in the United States
(“GAAP”), Ouster believes the non‑GAAP measures of Non-GAAP Gross
Profit, Non-GAAP Gross Margin and Adjusted EBITDA are useful in
evaluating its operating performance. Ouster calculates Non-GAAP
Gross Profit as gross profit (loss) excluding amortization of
acquired intangibles, certain excess and obsolete expenses and
losses on firm purchase commitments, and stock-based compensation
expenses. Non-GAAP Gross Margin is calculated as Non-GAAP Gross
Profit divided by revenues. Ouster calculates Adjusted EBITDA as
net loss excluding interest expense (income), net, other expense
(income), net, stock-based compensation expense, provision for
income tax expense, goodwill impairment charges, amortization of
acquired intangible assets, depreciation expenses, certain
restructuring costs excluding stock-based compensation expenses,
certain excess and obsolete expenses and losses on firm purchase
commitments, certain litigation and litigation related expenses and
merger and acquisition related expenses. Ouster believes that
Non-GAAP Gross Profit, Non-GAAP Gross Margin, and Adjusted EBITDA
may be helpful to investors because it provides consistency and
comparability with past financial performance and may be helpful in
comparison with other companies, some of which use similar non‑GAAP
information to supplement their GAAP results. The non-GAAP
financial information is presented for supplemental informational
purposes only, and should not be considered a substitute for
financial information presented in accordance with GAAP, and may be
different from similarly titled non‑GAAP measures used by other
companies. Reconciliation tables of the most comparable GAAP
financial measures to the non-GAAP financial measures are included
at the end of this press release.
OUSTER, INC. CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited) (in thousands) September 30,2023
December 31,2022 Assets Current assets:
Cash and cash equivalents
$
75,585
$
122,932
Restricted cash, current
540
257
Short-term investments
124,913
—
Accounts receivable, net
13,404
11,233
Inventory
26,474
19,533
Prepaid expenses and other current assets
11,971
8,543
Total current assets
252,887
162,498
Property and equipment, net
11,529
9,695
Operating lease, right-of-use assets
19,812
12,997
Unbilled receivable, long-term portion
7,583
—
Goodwill
—
51,152
Intangible assets, net
26,053
18,165
Restricted cash, non-current
1,090
1,089
Other non-current assets
2,877
541
Total assets
$
321,831
$
256,137
Liabilities and stockholders’ equity Current
liabilities: Accounts payable
$
7,932
$
8,798
Accrued and other current liabilities
35,793
17,071
Contract liabilities
10,776
402
Operating lease liability, current portion
7,078
3,221
Total current liabilities
61,579
29,492
Operating lease liability, long-term portion
20,376
13,400
Debt
40,422
39,574
Contract liabilities, long-term portion
3,914
342
Other non-current liabilities
1,493
1,710
Total liabilities
127,784
84,518
Commitments and contingencies Stockholders’ equity:
Common stock
39
19
Additional paid-in capital
971,419
613,665
Accumulated deficit
(777,031
)
(441,916
)
Accumulated other comprehensive loss
(380
)
(149
)
Total stockholders’ equity
194,047
171,619
Total liabilities and stockholders’ equity
$
321,831
$
256,137
OUSTER, INC. CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE LOSS (unaudited) (in
thousands, except share and per share data)
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
Revenue
$
22,209
$
11,204
$
58,835
$
30,091
Cost of revenue
19,116
7,488
55,932
21,002
Gross (loss) profit
3,093
3,716
2,903
9,089
Operating expenses: Research and development
16,678
17,212
75,584
49,011
Sales and marketing
7,887
8,541
33,086
23,194
General and administrative
14,270
14,008
63,437
40,306
Goodwill impairment charges
—
—
166,675
—
Total operating expenses
38,835
39,761
338,782
112,511
Loss from operations
(35,742
)
(36,045
)
(335,879
)
(103,422
)
Other income (expense): Interest income
2,495
733
6,459
1,231
Interest expense
(1,825
)
(699
)
(5,222
)
(1,143
)
Other income (expense), net
(13
)
61
(124
)
7,071
Total other income, net
657
95
1,113
7,159
Loss before income taxes
(35,085
)
(35,950
)
(334,766
)
(96,263
)
Provision for income tax expense
17
37
349
121
Net loss
$
(35,102
)
$
(35,987
)
$
(335,115
)
$
(96,384
)
Other comprehensive loss Changes in unrealized
gain (loss) on available for sale securities
$
63
$
—
$
40
$
—
Foreign currency translation adjustments
$
(213
)
$
(87
)
$
(271
)
$
(88
)
Total comprehensive loss
$
(35,252
)
$
(36,074
)
$
(335,346
)
$
(96,559
)
Net loss per common share, basic and diluted
$
(0.89
)
$
(1.98
)
$
(9.39
)
$
(5.48
)
Weighted-average shares used to compute basic and diluted net loss
per share
39,228,118
18,136,135
35,670,408
17,576,509
OUSTER, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited) (in thousands) Nine Months Ended
September 30,
2023
2022
CASH FLOWS FROM OPERATING ACTIVITIES Net loss
$
(335,115
)
$
(96,384
)
Adjustments to reconcile net loss to net cash used in operating
activities: Goodwill impairment charges
166,675
—
Depreciation and amortization
14,290
7,070
Loss on write-off of construction in progress and right-of-use
asset impairment
1,423
—
Gain on lease termination
(807
)
—
Stock-based compensation
46,618
25,324
Reduction of revenue related to stock warrant issued to customer
288
—
Amortization of right-of-use asset
3,268
2,075
Interest expense
1,112
290
Amortization of debt issuance costs and debt discount
190
104
Accretion or amortization on short-term investments
(3,303
)
—
Change in fair value of warrant liabilities
(67
)
(7,350
)
Inventory write-downs and purchase commitment losses
8,223
894
Provision for doubtful accounts
1,015
9
Loss/(Gain) from disposal of property and equipment
(248
)
(100
)
Changes in operating assets and liabilities, net of acquisition
effects: Accounts receivable
4,498
(69
)
Inventory
(4,474
)
(14,249
)
Prepaid expenses and other assets
676
(1,540
)
Accounts payable
(4,112
)
3,225
Accrued and other liabilities
(10,229
)
(158
)
Contract liabilities
410
—
Operating lease liability
(4,034
)
(2,431
)
Net cash used in operating activities
(113,703
)
(83,290
)
CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from
sale of property and equipment
560
275
Purchases of property and equipment
(2,633
)
(2,353
)
Purchase of short-term investments
(82,021
)
—
Proceeds from sales of short-term investments
115,481
—
Cash and cash equivalents acquired in the Velodyne Merger
32,137
—
Net cash provided by (used in) investing activities
63,524
(2,078
)
CASH FLOWS FROM FINANCING ACTIVITIES Repurchase of
common stock
—
(46
)
Proceeds from ESPP purchase
310
—
Proceeds from exercise of stock options
243
398
Proceeds from borrowings, net of debt discount and issuance costs
—
19,077
Proceeds from the issuance of common stock under at-the-market
offering, net of commissions and fees
2,936
16,322
At-the-market offering costs for the issuance of common stock
(104
)
(278
)
Taxes paid related to net share settlement of restricted stock
units
—
(59
)
Net cash provided by financing activities
3,385
35,414
Effect of exchange rates on cash and cash equivalents
(269
)
(175
)
Net decrease in cash, cash equivalents and restricted cash
(47,063
)
(50,129
)
Cash, cash equivalents and restricted cash at beginning of period
124,278
184,656
Cash, cash equivalents and restricted cash at end of period
$
77,215
$
134,527
OUSTER, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES (unaudited) (in thousands)
Three Months EndedSeptember 30, Nine Months
EndedSeptember 30, Three MonthsEnded June 30,
2023
2022
2023
2022
2023
GAAP net loss
$
(35,102
)
$
(35,987
)
$
(335,115
)
$
(96,384
)
$
(122,733
)
Interest income, net
(670
)
(34
)
(1,237
)
(88
)
(517
)
Other expense (income), net
13
(61
)
124
(7,071
)
165
Stock-based compensation(1)
8,372
8,455
46,618
25,324
16,466
Provision for income tax expense
17
37
349
121
50
Goodwill impairment charge
—
—
166,675
—
67,266
Restructuring costs, excluding stock-based compensation expense
—
—
15,977
—
3,342
Excess and obsolete expenses and loss on firm purchase commitments
3,187
—
10,567
—
3,750
Amortization of acquired intangibles(2)
1,759
1,122
4,972
3,366
1,702
Depreciation expenses(2)
1,739
1,210
9,132
3,705
2,744
Litigation expenses(3)
3,536
1,123
7,437
1,715
3,364
Merger and acquisition related expenses(4)
—
—
6,058
—
—
Gain on lease termination and other items
(1,256
)
—
(1,256
)
—
—
Adjusted EBITDA
$
(18,405
)
$
(24,135
)
$
(69,699
)
$
(69,312
)
$
(24,401
)
(1) Includes stock-based
compensation expense as follows:
Three Months EndedSeptember
30, Nine Months EndedSeptember 30,
Three MonthsEnded June 30,
2023
2022
2023
2022
2023
Cost of revenue
$
570
$
207
$
1,998
$
570
$
654
Research and development
4,056
3,681
19,765
11,248
8,204
Sales and marketing
1,345
1,913
7,726
5,276
3,500
General and administrative
2,401
2,654
17,129
8,230
4,108
Total stock-based compensation
$
8,372
$
8,455
$
46,618
$
25,324
$
16,466
(2) Includes depreciation and
amortization expense as follows:
Three Months EndedSeptember
30, Nine Months EndedSeptember 30,
Three MonthsEnded June 30,
2023
2022
2023
2022
2023
Cost of revenue
$
1,155
$
227
$
4,678
$
820
$
1,772
Research and development
741
889
4,596
2,600
892
Sales and marketing
250
75
690
225
258
General and administrative
1,352
1,140
4,139
3,426
1,524
Total depreciation and amortization expense
$
3,498
$
2,331
$
14,103
$
7,071
$
4,446
(3) Litigation expenses and
litigation-related expenses outside of the Company’s ordinary
business operations (4) Merger and acquisition related expenses
represent transaction costs for the Velodyne Merger which include
legal and accounting professional service fees
Three Months EndedSeptember 30, Nine
Months EndedSeptember 30, Three MonthsEnded June
30,
2023
2022
2023
2022
2023
Gross profit (loss) on GAAP basis
$
3,093
$
3,716
$
2,903
$
9,089
$
186
Stock-based compensation
570
207
1,998
570
654
Amortization of acquired intangible assets
467
—
1,127
—
412
Excess and obsolete expenses and loss on firm purchase commitments
3,187
—
10,567
—
3,750
Gross profit on non-GAAP basis
$
7,316
$
3,923
$
16,595
$
9,659
$
5,002
Gross margin on GAAP
basis
14
%
33
%
5
%
30
%
1
%
Gross margin on non-GAAP basis
33
%
35
%
28
%
32
%
26
%
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Ouster (NYSE:OUST)
過去 株価チャート
から 10 2024 まで 11 2024
Ouster (NYSE:OUST)
過去 株価チャート
から 11 2023 まで 11 2024
