On Track to Meet/Beat All 2023 Company
Milestones and Financial Guidance
Q2 Revenue & EPS Exceed Guidance; Revenue
Up 63% Year-over-Year
Today Luminar (NASDAQ: LAZR), a leading global automotive
technology company, provided its quarterly business update and
financial results for the second quarter of 2023.
“As we realize our long-term vision, Luminar continues to prove
that it can execute our ambitious plan across hardware,
software/AI, and beyond. This puts us on the path to meet or beat
our company-level milestones for the third consecutive year,” said
Austin Russell, Luminar Founder and CEO. “This execution supports
rapid new advancements for our customers and partners enabled by
our technology, including: Nissan showcasing new intersection
collision avoidance capabilities, Mobileye powering a new OEM
autonomous vehicle program, the Polestar 3 becoming available to
order with Luminar, NVIDIA advancing the collaboration, and our
partnership with Scale delivering on our AI Engine.”
2023 Company-Level Milestone Targets
and Financial Guidance:
Luminar provided a progress report on its three key business
milestone targets to achieve by year-end 2023 and maintained its
financial guidance.
1. Industrialization
Year-end Goal: Bring the
high volume, automated facility in Mexico online and meet automaker
SOP requirements (e.g., Volvo).
Status: The company
brought the high volume facility online at the end Q1, ahead of
guidance, and is making rapid progress towards meeting all
automaker requirements to achieve start of production (SOP)
readiness for the new factory by year end.
- In Q2, the facility continued to be optimized and thorough
process validation is now underway.
- In Q2, Luminar also announced a partnership with TPK to build
and operate an additional high volume factory in Asia.
- Recently, Luminar recruited Kevin Hinge
as Executive VP of Manufacturing, Supply Chain and Quality, who
will be responsible for the company’s industrialization
efforts.
2. Product and
Technology
Year-end Goal: Enter Iris+
C phase; complete software requirements for Volvo and Mercedes
programs; develop a next-gen lidar prototype.
Status: The company is on
track to meet or beat each of these goals. In Q2:
- Iris+ underwent validation and testing from its lead series
production OEM.
- Luminar remains on schedule for its software1 deliverables for
Volvo and achieved a key software milestone in Q2.
- Luminar integrated Iris+ software1 into
its lead customer’s data collection vehicles.
3. Business
Growth
Year-end Goal: Add at
least $1 billion to the Order Book.
Status: The company is on
track to meet or beat this goal. Throughout 2023, the company is
signing deals across hardware, software/AI, and semiconductors with
new and existing customers.
- In Q2, Plus announced that it is exclusively partnering with
Luminar to equip its technology into PlusDrive, to be
factory-installed with commercial truck OEMs. Plus will also be
Luminar’s exclusive provider of AI-based enhanced driver assist
software for commercial trucking.
Key Q2 2023 Financials:
In Q2, Luminar exceeded the mid-point of its revenue guidance
and its guidance for non-GAAP EPS, and maintained a strong balance
sheet for accelerating business growth and reaching its
profitability targets.
- Revenue: In line with expectations; Q2 revenue was $16.2
million, up 63% compared to Q2’22.
- GAAP and Non-GAAP net loss: Q2 GAAP net loss was $141.8
million, or $(0.37) per share; Q2 Non-GAAP net loss was $81.5
million, or $(0.21) per share.
- Cash, Cash Equivalents and Marketable Securities:
Maintained strong cash position, including marketable securities,
of $365.8 million as of June 30, 2023. Net cash used in operating
activities was $(73.3) million. Free cash flow (operating cash flow
less capital expenditures) was $(78.5) million.
2023 Financial Outlook:
Luminar is on track to meet or beat its financial guidance.
- Revenue Growth: Luminar expects at least 100% revenue
growth in 2023.
- Gross Margin: The company expects to reach positive
gross margin on a non-GAAP basis by the fourth quarter.
- Cash, Cash Equivalents and Marketable Securities (including
Liquidity): The company expects to end the year with a balance
of greater than $300 million, which is more than required to
execute on its current plan for profitability. As Luminar’s
business ramps up and launch costs ramp down throughout the year,
the company expects to reduce its free cash flow spend in Q4 by
approximately 50% relative to Q1, and Q2 of $(78.5) million.
Webcast Details:
Founder and CEO Austin Russell and CFO Tom Fennimore will host a
video webcast, featuring a business update followed by a live
Q&A session.
- What: Video webcast featuring quarterly business update,
Q2 financials and live Q&A
- Date: Today, August 8, 2023
- Time: 2:00 p.m. PDT (5:00 p.m. EDT)
A live webcast of the event will be available on Luminar’s
investor site at https://luminartech.com/quarterlyreview. A replay
of the webcast will be available following the presentation. For
additional information or to be added to Luminar’s investor
distribution list, please visit us at
https://investors.luminartech.com/ir-resources/email-alerts.
Footnote: 1Luminar software capabilities are still in
development and have not achieved technological feasibility or
production ready status.
Non-GAAP Financial
Measures
In addition to disclosing financial measures prepared in
accordance with U.S. generally accepted accounting principles
(GAAP), this press release contains certain non-GAAP financial
measures and certain other metrics. Non-GAAP financial measures and
these other metrics do not have any standardized meaning and are
therefore unlikely to be comparable to similarly titled measures
and metrics presented by other companies. Luminar considers these
non-GAAP financial measures and metrics to be important because
they provide useful measures of the operating performance of the
Company, exclusive of factors that do not directly affect what we
consider to be our core operating performance, as well as unusual
events. The Company’s management uses these measures and metrics to
(i) illustrate underlying trends in the Company’s business that
could otherwise be masked by the effect of income or expenses that
are excluded from non-GAAP measures, and (ii) establish budgets and
operational goals for managing the Company’s business and
evaluating its performance. In addition, investors often use
similar measures to evaluate the operating performance of a
company. Non-GAAP financial measures and metrics are presented only
as supplemental information for purposes of understanding the
Company’s operating results. The non-GAAP financial measures and
metrics should not be considered a substitute for financial
information presented in accordance with GAAP.
This release includes non-GAAP financial measures, including
non-GAAP cost of sales, gross loss/gross profit, net loss and Free
Cash Flow. Non-GAAP cost of sales is defined as GAAP cost of sales
adjusted for stock-based compensation expense and amortization of
intangible assets. Non-GAAP gross loss/gross profit is defined as
GAAP gross loss/gross profit adjusted for stock-based compensation
expense and amortization of intangible assets. Non-GAAP net loss is
defined as GAAP net loss adjusted for stock-based compensation
expense, amortization of intangible assets, transaction costs
relating to acquisition activities, change in fair value of warrant
liabilities, and provision for income taxes. Free Cash Flow is
defined as operating cash flow less capital expenditures. We use
“Order Book” as a metric to measure performance against anticipated
achievement of planned key milestones of our business. Order Book
is defined as the forward-looking cumulative billings estimate of
Luminar’s hardware and software products over the lifetime of given
vehicle production programs which Luminar’s technology is expected
to be integrated into or provided for, based primarily on projected
/ actual contractual pricing terms and our good faith estimates of
“take rate” of Luminar’s technology on vehicles. “Take rates” are
the anticipated percentage of new vehicles to be equipped with
Luminar’s technology based on a combination of original equipment
manufacturer (“OEM”) product offering decisions and predicted end
consumer purchasing decisions. We include programs in our Order
Book when (a) we have obtained a written agreement (e.g.,
non-binding expression of interest arrangement or an agreement for
non-recurring engineering project) or public announcement with a
major industry player, and (b) we expect to ultimately be awarded a
significant commercial program. We believe Order Book provides
useful information to investors as a supplemental performance
metric as our products are currently in a pre-production stage and
therefore there are currently no billings or revenues from
commercial grade product sales. OEMs customarily place
non-cancelable purchase orders with their automotive component
suppliers only shortly before or during production. Consequently,
we use Order Book to inform investors about the progress of
expected adoption of our technologies by OEMs because there is, in
our view, no other better metric available at our stage. The Order
Book estimate may be impacted by various factors, as described in
“Risk Factors” in Item 1A of Part I of our Annual Report on Form
10-K for the fiscal year ended December 31, 2022 and subsequent
filings with the Securities and Exchange Commission, including, but
not limited to the following: (i) None of our customers make
contractual commitments to use our lidar sensors and software until
all test and validation activities have been completed, they have
finalized plans for integrating our systems, have a positive
expectation of the market demand for our features, and unrelated to
us, have determined that their vehicle is ready for market and
there is appropriate consumer demand. Consequently, there is no
assurance or guarantee that any of our customers, including any
programs which we included in our Order Book estimates will ever
complete such testing and validation or enter into a definitive
volume production agreement with us or that we will receive any
billings or revenues forecasted in connection with such programs;
(ii) The development cycles of our products with new customers vary
widely depending on the application, market, customer and the
complexity of the product. In the automotive market, for example,
this development cycle can be as long as seven or more years.
Variability in development cycles make it difficult to reliably
estimate the pricing, volume or timing of purchases of our products
by our customers; (iii) Customers cancel or postpone implementation
of our technology; (iv) We may not be able to integrate our
technology successfully into a larger system with other sensing
modalities; and (v) The product or vehicle model that is expected
to include our lidar products may be unsuccessful, including for
reasons unrelated to our technology. These risks and uncertainties
may cause our future actual sales to be materially different than
that implied by the Order Book metric.
Forward-Looking
Statements
Certain statements included in this press release that are not
historical facts are forward-looking statements for purposes of the
safe harbor provisions under the Private Securities Litigation
Reform Act of 1995. Forward-looking statements generally are
accompanied by words such as “aims,” “believe,” “may,” “will,”
“estimate,” “set,” “continue,” “towards,” “anticipate,” “intend,”
“expect,” “should,” “would,” “forward,” and similar expressions
that predict or indicate future events or trends or that are not
statements of historical matters. These forward-looking statements
include, but are not limited to, statements regarding expected
achievement and timing of manufacturing scale up, OEM production
readiness, next-gen lidar prototype development, continued software
development, program milestones and Order Book growth, and expected
financial performance and position metrics. These statements are
based on various assumptions, whether or not identified in this
press release, and on the current expectations of Luminar’s
management and are not guarantees of actual performance.
Forward-looking statements are subject to a number of risks and
uncertainties that could cause actual results to differ materially
from the forward-looking statements, including the risks discussed
in the “Risk Factors,” and “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” sections of
Luminar’s most recently filed periodic reports on Form 10-K and
Form 10-Q, and other documents Luminar files with the SEC in the
future. You are cautioned not to place undue reliance upon any
forward-looking statements, which speak only as of the date made,
and Luminar undertakes no obligation to update any forward-looking
statement to reflect events or circumstances after the date of this
press release.
About Luminar
Luminar is a global automotive technology company ushering in a
new era of vehicle safety and autonomy. For the past decade,
Luminar has built an advanced hardware and software platform to
enable its more than 50 industry partners, including the majority
of global automotive OEMs. From Volvo Cars and Mercedes-Benz for
consumer vehicles and Daimler Trucks for commercial trucks, to tech
partners NVIDIA and Mobileye, Luminar is poised to be the first
automotive technology company to enable next-generation safety and
autonomous capabilities for production vehicles. For more
information, please visit www.luminartech.com.
LUMINAR TECHNOLOGIES, INC. AND
SUBSIDIARIES Condensed Consolidated Balance Sheets
(In thousands)
June 30, 2023
December 31, 2022
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents
$
89,115
$
69,552
Restricted cash
2,381
1,553
Marketable securities
276,678
419,314
Accounts receivable
16,809
11,172
Inventory
20,317
8,792
Prepaid expenses and other current
assets
29,949
44,203
Total current assets
435,249
554,586
Property and equipment, net
79,144
30,260
Operating lease right-of-use assets
21,043
21,244
Intangible assets, net
28,157
22,077
Goodwill
19,879
18,816
Other non-current assets
16,302
40,344
Total assets
$
599,774
$
687,327
LIABILITIES AND STOCKHOLDERS’
DEFICIT
Current liabilities:
Accounts payable
$
21,909
$
18,626
Accrued and other current liabilities
66,039
52,962
Operating lease liabilities
6,071
5,953
Total current liabilities
94,019
77,541
Warrant liabilities
4,033
3,005
Convertible senior notes
613,810
612,192
Operating lease liabilities,
non-current
16,701
16,989
Other non-current liabilities
358
4,005
Total liabilities
728,921
713,732
Stockholders’ deficit:
Class A common stock
31
29
Class B common stock
10
10
Additional paid-in capital
1,741,053
1,558,685
Accumulated other comprehensive loss
(808
)
(4,226
)
Treasury stock
(312,477
)
(312,477
)
Accumulated deficit
(1,556,956
)
(1,268,426
)
Total stockholders’ deficit
(129,147
)
(26,405
)
Total liabilities and stockholders’
deficit
$
599,774
$
687,327
LUMINAR TECHNOLOGIES, INC. AND
SUBSIDIARIES Condensed Consolidated Statements of
Operations (In thousands, except share and per share
data) (Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
Revenue:
Products
$
9,923
$
1,798
$
17,290
$
3,339
Services
6,274
8,134
13,416
13,448
Total revenue
16,197
9,932
30,706
16,787
Cost of sales:
Products
25,059
16,987
44,262
28,805
Services
9,473
11,105
19,403
15,941
Total cost of sales
34,532
28,092
63,665
44,746
Gross loss
(18,335
)
(18,160
)
(32,959
)
(27,959
)
Operating expenses:
Research and development
67,483
40,941
136,535
74,050
Sales and marketing
15,654
7,189
29,383
16,587
General and administrative
42,420
38,150
86,910
68,175
Total operating expenses
125,557
86,280
252,828
158,812
Loss from operations
(143,892
)
(104,440
)
(285,787
)
(186,771
)
Other income (expense), net:
Change in fair value of warrant
liabilities
26
11,733
(1,028
)
7,876
Interest expense
(1,273
)
(3,148
)
(2,938
)
(6,428
)
Interest income
1,605
1,346
3,510
2,417
Other income (expense)
1,787
(743
)
(2,278
)
(275
)
Total other income (expense), net
2,145
9,188
(2,734
)
3,590
Loss before provision for (benefit from)
income taxes
(141,747
)
(95,252
)
(288,521
)
(183,181
)
Provision for (benefit from) income
taxes
9
(13
)
9
391
Net loss
$
(141,756
)
$
(95,239
)
$
(288,530
)
$
(183,572
)
Net loss per share:
Basic and diluted
$
(0.37
)
$
(0.27
)
$
(0.77
)
$
(0.52
)
Shares used in computing net loss per
share:
Basic and diluted
382,424,675
352,054,529
376,616,066
350,378,494
LUMINAR TECHNOLOGIES, INC. AND
SUBSIDIARIES Condensed Consolidated Statements of Cash
Flows (In thousands) (Unaudited)
Six Months Ended June
30,
2023
2022
Cash flows from operating
activities:
Net loss
$
(288,530
)
$
(183,572
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
7,536
2,544
Amortization of operating lease
right-of-use assets
3,303
2,139
Amortization of premium (discount) on
marketable securities
(1,611
)
919
Loss on marketable securities
1,859
—
Change in fair value of private
warrants
1,028
(7,876
)
Vendor stock-in lieu of cash program
21,114
19,916
Amortization of debt discount and issuance
costs
1,618
1,618
Inventory write-offs and write downs
13,432
4,778
Share-based compensation
115,149
65,323
Product warranty and other
3,084
171
Changes in operating assets and
liabilities:
Accounts receivable
(5,635
)
7,038
Inventories
(24,958
)
(2,814
)
Prepaid expenses and other current
assets
13,858
(2,417
)
Other non-current assets
(5,287
)
(532
)
Accounts payable
3,761
7,392
Accrued and other current liabilities
10,927
1,106
Other non-current liabilities
(8,631
)
(931
)
Net cash used in operating activities
(137,983
)
(85,198
)
Cash flows from investing
activities:
Acquisition of Freedom Photonics LLC (net
of cash acquired)
—
(2,759
)
Acquisition of certain assets from Solfice
Research, Inc.
—
(2,001
)
Acquisition of Seagate's lidar
business
(12,608
)
—
Purchases of marketable securities
(171,118
)
(270,440
)
Proceeds from maturities of marketable
securities
277,771
147,053
Proceeds from sales/redemptions of
marketable securities
39,152
50,315
Purchases of property and equipment
(16,831
)
(7,491
)
Advances for capital projects and
equipment
—
(1,673
)
Net cash provided by (used in) investing
activities
116,366
(86,996
)
Cash flows from financing
activities:
Net proceeds from issuance of Class A
common stock under the Equity Financing Program
29,604
—
Proceeds from issuance of Class A common
stock to a wholly owned subsidiary of TPK
10,000
—
Proceeds from exercise of stock
options
1,570
1,791
Proceeds from sale of Class A common stock
under ESPP
1,406
—
Payments of employee taxes related to
stock-based awards
(572
)
(1,724
)
Repurchase of common stock
—
(80,878
)
Net cash provided by (used in) financing
activities
42,008
(80,811
)
Net increase (decrease) in cash, cash
equivalents and restricted cash
20,391
(253,005
)
Beginning cash, cash equivalents and
restricted cash
71,105
330,702
Ending cash, cash equivalents and
restricted cash
$
91,496
$
77,697
LUMINAR TECHNOLOGIES, INC. AND
SUBSIDIARIES Reconciliation of GAAP Cost of Sales to
Non-GAAP Cost of Sales (In thousands)
(Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
GAAP cost of sales
$
34,532
$
28,092
$
63,665
$
44,746
Non-GAAP adjustments:
Stock-based compensation
(1,925
)
(6,989
)
(4,587
)
(8,775
)
Amortization of intangible assets
(166
)
(259
)
(331
)
(303
)
Non-GAAP cost of sales
$
32,441
$
20,844
$
58,747
$
35,668
LUMINAR TECHNOLOGIES, INC. AND
SUBSIDIARIES Reconciliation of GAAP Gross Loss to Non-GAAP
Gross Loss (In thousands) (Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
GAAP gross loss
$
(18,335
)
$
(18,160
)
$
(32,959
)
$
(27,959
)
Non-GAAP adjustments:
Stock-based compensation
1,925
6,989
4,587
8,775
Amortization of intangible assets
166
259
331
303
Non-GAAP gross loss
$
(16,244
)
$
(10,912
)
$
(28,041
)
$
(18,881
)
LUMINAR TECHNOLOGIES, INC. AND
SUBSIDIARIES Reconciliation of GAAP Net Loss to Non-GAAP Net
Loss (In thousands, except share and per share data)
(Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
GAAP net loss
$
(141,756
)
$
(95,239
)
$
(288,530
)
$
(183,572
)
Non-GAAP adjustments:
Stock-based compensation
59,195
38,625
115,149
65,323
Amortization of intangible assets
1,098
793
2,160
856
Legal reserve related to employee
matters
—
2,000
—
2,000
Transaction costs relating to acquisition
activities
3
524
36
2,037
Change in fair value of warrant
liabilities
(26
)
(11,733
)
1,028
(7,876
)
Provision for income taxes
—
—
—
165
Non-GAAP net loss
$
(81,486
)
$
(65,030
)
$
(170,157
)
$
(121,067
)
GAAP net loss per share:
Basic and diluted
$
(0.37
)
$
(0.27
)
$
(0.77
)
$
(0.52
)
Non-GAAP net loss per share:
Basic and diluted
$
(0.21
)
$
(0.18
)
$
(0.45
)
$
(0.35
)
Shares used in computing GAAP net loss per
share:
Basic and diluted
382,424,675
352,054,529
376,616,066
350,378,494
Shares used in computing Non-GAAP net loss
per share:
Basic and diluted
382,424,675
352,054,529
376,616,066
350,378,494
LUMINAR TECHNOLOGIES, INC. AND
SUBSIDIARIES Reconciliation of GAAP Operating Cash Flow to
Non-GAAP Free Cash Flow (In thousands)
(Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
GAAP operating cash flow
$
(73,309
)
$
(52,361
)
$
(137,983
)
$
(85,198
)
Non-GAAP adjustments:
Capital expenditure:
Purchases of property and equipment
(5,151
)
(2,487
)
(16,831
)
(7,491
)
Advances for capital projects and
equipment
—
(1,673
)
—
(1,673
)
Non-GAAP free cash flow
$
(78,460
)
$
(56,521
)
$
(154,814
)
$
(94,362
)
LUMINAR TECHNOLOGIES, INC. AND
SUBSIDIARIES Summary of Stock-Based Compensation and
Intangibles Amortization (In thousands)
(Unaudited)
Three Months Ended June
30,
2023
2022
Stock-Based
Compensation
Intangibles
Amortization
Stock-Based
Compensation
Intangibles
Amortization
Cost of Sales
$
1,925
$
166
$
6,989
$
259
Research and development
20,541
599
8,714
201
Sales and marketing
9,792
333
2,741
333
General and administrative
26,937
—
20,181
—
Total
$
59,195
$
1,098
$
38,625
$
793
Six Months Ended June
30,
2023
2022
Stock-Based
Compensation
Intangibles
Amortization
Stock-Based
Compensation
Intangibles
Amortization
Cost of Sales
$
4,587
$
331
$
8,775
$
303
Research and development
38,012
1,163
15,816
201
Sales and marketing
15,620
666
5,609
352
General and administrative
56,930
—
35,123
—
Total
$
115,149
$
2,160
$
65,323
$
856
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230808589695/en/
Media Relations: Milin Mehta Press@luminartech.com
Investor Relations: Aileen Smith Investors@luminartech.com
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