$41 million in revenue with 27% gross margins
in 2022
Secured company record $70 million in bookings
in 2022
Shipped new REV7 sensors with double the range
to 29 customers in the fourth quarter 2022
Completed merger of equals with Velodyne in
February 2023 to strengthen financial position
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 financial results for the year end and three months ended
December 31, 2022.
Fourth Quarter 2022 Highlights1
- $11 million in revenue, down 8% year over year.
- 17% gross margins, compared to 30% in fourth quarter 2021.
- Shipped a record of over 2,950 sensors for revenue in the
fourth quarter, up 23% year over year.
- Net loss increased to $42 million in the fourth quarter of
2022, compared to $28 million in the fourth quarter of 2021.
- Adjusted EBITDA2 loss decreased to $23 million, compared to a
loss of $24 million in the fourth quarter of 2021.
Full Year 2022 Financial Highlights1
- Achieved 2022 guidance with $41 million in revenue and 27%
gross margins.
- Booked $70 million in business with new and existing customers
in 2022.
- Shipped over 8,650 sensors for revenue in 2022, totaling over
18,500 sensors shipped to date.
- Net loss increased to $139 million in 2022, compared to $94
million in 2021.
- Adjusted EBITDA1 loss of $93 million in 2022, compared to a
loss of $67 million3 in 2021.
Ouster’s fourth quarter revenue was driven primarily by growth
in the industrial and robotics verticals, which accounted for 62%
of revenues in the quarter. This included substantial orders from
customers for port automation, material handling vehicles, and
warehouse automation applications.
Lower fourth quarter gross margins were primarily driven by some
large unit volume sales to certain customers with lower average
selling prices, as well as higher expenses associated with the
manufacturing transition to the REV7 sensor platform. However,
Ouster expects to deliver higher margins over time as it completes
the Velodyne integration and increases shipments of the REV7
sensors.
_____________________
1 Financial highlights only reference Ouster standalone
financials results. 2 Adjusted EBITDA loss is a non-GAAP financial
measure. See Non-GAAP Financial Measures for additional information
and a reconciliation to Net loss, the most directly comparable
financial measure calculated in accordance with U.S. GAAP. 3 Prior
periods have been adjusted to conform to current year
presentation.
Ouster achieved its 2022 revised guidance targets, delivering
$41 million in revenue and delivered industry-leading 27% gross
margins. Across its target markets in 2022, Ouster saw the most
traction in the industrial and robotics verticals, with 35% and 34%
of sensors shipped in 2022, respectively, due to continued demand
for automation across the supply chain. The automotive vertical
accounted for 22% of sensors shipped for robotaxis, robotrucking,
shuttles and buses in 2022. Finally, 9% of sensors were shipped to
customers in the smart infrastructure vertical in 2022. Ouster also
doubled its smart infrastructure programs with 213 awarded projects
in 2022, up 94% year-over-year, for digital lidar for intelligent
transportation systems, crowd analytics, and security
applications.
Business Updates
Merger: Ouster completed the merger
with Velodyne on February 10, 2023, which will drive cost synergies
and value creation for the combined company. The Company remains on
track to exceed previously projected annualized cost synergies of
$75 million within 9 months. The synergy estimate is baselined
against the standalone cost structures of the two companies, as of
the third quarter 2022. Following the completion of the merger,
Ouster immediately took steps to significantly reduce costs. By the
end of the first quarter of 2023, the Company expects to reduce
approximately $50 million in annual run-rate costs, which will
result in one-time cash costs of approximately $12 million to 14
million4, to complete the first stage of integration. As of
December 31, 2022, the combined cash, cash equivalent and
short-term investments balance was approximately $315 million.
Execution on Product Roadmap:
Ouster continued to execute on its product roadmap, dominated by
the October 2022 launch of its new REV7 OS digital lidar sensors
powered by its next-generation L3 chip, which are designed to
deliver dramatic performance gains for customers. This included
shipments to 29 customers who purchased the first units of the new
REV7 sensors. During the second half of 2022, the Company also
provided early access to Ouster Gemini, its cloud-backed digital
lidar perception platform for smart infrastructure applications,
closing deals with more than 10 companies before broadly releasing
the software in January 2023. Following the merger, Ouster also now
offers certain Velodyne Lidar sensors as well as BlueCity software,
a turnkey lidar-based solution for intelligent transportation
systems with over 100 active deployments in 2022.
“Ouster made huge strides throughout 2022, from the release of
our first A-samples for the solid-state DF series to the launch of
our REV7 OS sensors, making us more competitive across the board.
We also built our first subscription software, Ouster Gemini, for
smart infrastructure applications, which will expand the
opportunities for digital lidar,” said Ouster CEO Angus Pacala.
“Further, we recently completed our merger with Velodyne,
bolstering our financial position and amplifying our product
portfolio with new hardware and software solutions, which we
anticipate will further expand our serviceable market and catalyze
growth across the business in 2023.”
First Quarter 2023 Outlook
For the first quarter 2023, Ouster expects to achieve $15
million to 17 million in revenue.5
_____________________
4 Excluding stock-based compensation expenses. 5 Excludes
revenues from Velodyne products prior to the merger on February 10,
2023.
Conference Call
Information
Ouster will host a conference call and live webcast for analysts
and investors at 5:00 p.m. EDT today, March 23, 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
April 6, 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. With a global team
and high-volume manufacturing, Ouster supports over 850 customers
in approximately 50 countries. 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. We intend 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
ability to meet its revenue goals and guidance; the anticipated
benefits of and costs associated with the Velodyne merger; the
expectations surrounding the Velodyne merger and its ability to
grow the Company’s sales and bolster the Company’s financial
position; its expected contractual obligations and capital
expenditures; the capabilities of its products; anticipated new
product launches; its future results of operations and financial
position; industry and business trends; its business strategy,
plans, strategic partnerships, market growth and its objectives for
future operations; and its strategic market position as it relates
to its competitors within the industry 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 USA Inc., 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; 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; 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 measure of Adjusted EBITDA
is useful in evaluating its operating performance. The calculation
of Adjusted EBITDA for this reporting period does not include
litigation expenses. 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, depreciation and amortization, litigation and litigation
related expenses and other non-recurring expenses. Ouster believes
that 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, except share
and per share data)
December 31,
2022
2021
Assets Current assets: Cash and cash equivalents
$
122,932
$
182,644
Restricted cash, current
257
977
Accounts receivable, net
11,233
10,723
Inventory
19,533
7,448
Prepaid expenses and other current assets
8,543
5,566
Total current assets
162,498
207,358
Property and equipment, net
9,695
10,054
Operating lease, right-of-use assets
12,997
15,156
Goodwill
51,152
51,076
Intangible assets, net
18,165
22,652
Restricted cash, non-current
1,089
1,035
Other non-current assets
541
371
Total assets
$
256,137
$
307,702
Liabilities, redeemable convertible preferred stock and
stockholders’ equity Current liabilities: Accounts payable
$
8,798
$
4,863
Accrued and other current liabilities
17,473
14,173
Operating lease liability, current portion
3,221
3,067
Total current liabilities
29,492
22,103
Operating lease liability, long-term portion
13,400
16,208
Warrant Liabilities
180
7,626
Debt
39,574
—
Other non-current liabilities
1,872
1,065
Total liabilities
84,518
47,002
Commitments and contingencies Redeemable convertible preferred
stock
—
—
Stockholders’ equity: Common stock
19
17
Additional paid-in capital
613,665
564,045
Accumulated deficit
(441,916
)
(303,356
)
Accumulated other comprehensive loss
(149
)
(6
)
Total stockholders’ equity
171,619
260,700
Total liabilities, redeemable convertible preferred stock, and
stockholders’ equity
$
256,137
$
307,702
OUSTER, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(unaudited)
(in thousands, except share
and per share data)
Three Months Ended December
31,
Year Ended December
31,
2022
2021
2022
2021
Product revenue
$
10,938
$
11,852
$
41,029
$
33,578
Cost of revenue
9,097
8,280
30,099
24,492
Gross profit
1,841
3,572
10,930
9,086
Operating expenses: Research and development
15,306
15,003
64,317
34,579
Sales and marketing
7,639
7,481
30,833
22,258
General and administrative
20,897
15,782
61,203
51,959
Total operating expenses
43,842
38,266
156,353
108,796
Loss from operations
(42,001
)
(34,694
)
(145,423
)
(99,710
)
Other (expense) income: Interest income
977
166
2,208
471
Interest expense
(1,551
)
—
(2,694
)
(504
)
Other income (expense), net
583
3,390
7,654
2,968
Total other income (expense), net
9
3,556
7,168
2,935
Loss before income taxes
(41,992
)
(31,138
)
(138,255
)
(96,775
)
Provision (benefit from) for income tax expense
184
(2,794
)
305
(2,794
)
Net loss
$
(42,176
)
$
(28,344
)
$
(138,560
)
$
(93,981
)
Other comprehensive loss Foreign currency translation adjustments
$
32
$
(6
)
$
(143
)
$
(6
)
Total comprehensive loss
$
(42,144
)
$
(28,350
)
$
(138,703
)
$
(93,987
)
Net loss per common share, basic and diluted
$
(0.23
)
$
(0.17
)
$
(0.78
)
$
(0.70
)
Weighted-average shares used to compute basic and diluted net loss
per share
184,237,953
165,853,915
177,923,156
133,917,571
OUSTER, INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(unaudited)
(in thousands)
For the Years ended December
31,
2022
2021
CASH FLOWS FROM OPERATING ACTIVITIES Net loss
$
(138,560
)
$
(93,981
)
Adjustments to reconcile net loss to net cash used in operating
activities: Depreciation and amortization
9,456
5,477
Stock-based compensation
33,321
25,363
Deferred income taxes
—
(2,477
)
Change in right-of-use asset
2,730
2,180
Interest expense
799
36
Amortization of debt issuance costs and debt discount
160
250
Change in fair value of warrant liabilities
(7,446
)
(2,947
)
Inventory write down
1,600
808
Provision for doubtful accounts
346
379
Loss from disposal of property and equipment
430
—
Changes in operating assets and liabilities: Accounts receivable
(856
)
(8,007
)
Inventory
(13,684
)
(3,440
)
Prepaid expenses and other assets
(3,148
)
350
Accounts payable
4,191
(2,442
)
Accrued and other liabilities
3,196
9,060
Operating lease liability
(3,225
)
(1,670
)
Net cash used in operating activities
(110,690
)
(71,061
)
CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of
property & equipment
275
—
Purchases of property and equipment
(5,422
)
(4,283
)
Acquisition, net of cash acquired
—
(10,946
)
Net cash used in investing activities
(5,147
)
(15,229
)
CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from the
merger and private offering
—
291,442
Payment of offering costs
—
(26,620
)
Repayment of debt
—
(7,000
)
Proceeds from issuance of promissory notes to related parties
—
5,000
Repayment of promissory notes to related parties
—
(5,000
)
Repurchase of common stock
(45
)
(45
)
Proceeds from exercise of stock options
470
526
Proceeds from ESPP purchase
378
—
Proceeds from exercise of warrants
—
1
Proceeds from issuance of redeemable convertible preferred stock,
net off issuance cost of $265
—
—
Proceeds from borrowings, net of debt discount and issuance costs
39,077
—
Proceeds from the issuance of common stock under at-the-market
offering, net of commissions and fees
16,322
—
At-the-market offering costs for the issuance of common stock
(541
)
—
Taxes paid related to net share settlement of restricted stock
units
(59
)
—
Net cash provided by financing activities
55,602
258,304
Effect of exchange rates on cash and cash equivalents
(143
)
—
Net increase (decrease) in cash, cash equivalents and restricted
cash
(60,378
)
172,014
Cash, cash equivalents and restricted cash at beginning of year
184,656
12,642
Cash, cash equivalents and restricted cash at end of year
$
124,278
$
184,656
OUSTER, INC.
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
(unaudited)
(in thousands)
Three Months Ended December
31,
Year Ended December
31,
2022
2021
2022
2021
GAAP net loss
$
(42,176
)
$
(28,344
)
$
(138,560
)
$
(93,981
)
Interest expense (income), net
574
(166
)
486
33
Other (income), net
(583
)
(3,390
)
(7,654
)
(2,968
)
Stock-based compensation(1)
7,997
6,806
33,321
25,363
Provision for income tax expense
184
(2,794
)
305
(2,794
)
Depreciation and amortization expense(2)
2,386
2,049
9,456
5,477
Litigation expenses(3)
1,484
85
3,200
585
Non-recurring acquisition expense(4)
6,950
1,535
6,950
1,535
Adjusted EBITDA
$
(23,184
)
$
(24,219
)
$
(92,496
)
$
(66,750
)
(1)Includes stock-based compensation expense as follows:
Three Months Ended December
31,
Year Ended December
31,
2022
2021
2022
2021
Cost of revenue
$
213
$
180
$
783
$
637
Research and development
3,363
2,935
14,611
7,240
Sales and marketing
1,789
1,122
7,065
3,823
General and administrative
2,632
2,569
10,862
13,663
Total stock-based compensation
$
7,997
$
6,806
$
33,321
$
25,363
(2)Includes depreciation and amortization expense as follows:
Three Months Ended December
31,
Year Ended December
31,
2022
2021
2022
2021
Cost of revenue
$
322
$
247
$
1,142
$
1,179
Research and development
867
441
3,466
1,079
Sales and marketing
78
—
303
—
General and administrative
1,119
1,361
4,545
3,219
Total depreciation and amortization expense
$
2,386
$
2,049
$
9,456
$
5,477
(3)Litigation expenses and litigation-related expenses outside of
the Company’s ordinary business operations (4)Non-recurring
acquisition expense represents transaction costs for the Velodyne
Lidar, Inc. and Sense Photonics, Inc. mergers which include legal
and accounting professional service fees.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230323005649/en/
For Investors Sarah Ewing investors@ouster.io
For Media Heather Shapiro press@ouster.io
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