Cepton, Inc. (“Cepton”) (Nasdaq: CPTN), a Silicon Valley
innovator and leader in high performance lidar solutions, today
announced business updates and financial results for the fourth
quarter and full year ended December 31, 2023.
“We are building upon our extensive OEM project experience in
commercializing automotive grade lidars, in collaboration with our
tier 1 partner, to pursue sourcing wins with global OEMs,” said Jun
Pei, Cepton’s Co-Founder and CEO. “At CES 2024, we showcased our
best-in-class next generation product, Cepton Ultra, demonstrating
our leadership in lidar innovation.”
Business Highlights
Partnership with Koito
- Received non-binding indication of interest from long-term
automotive Tier 1 partner, Koito Manufacturing Co., Ltd. (“Koito”),
to acquire 100% of our outstanding shares, as disclosed in our 8-K
filed on December 21, 2023; the indication of interest is under
evaluation.
Automotive
- Continued final round of sourcing discussions with a Top 10
global automotive OEM for long-range lidar
- Received RFQ from a Top 3 global automotive OEM
Smart Infrastructure
- Continued lidar shipments to major airports through our
partnership with The Indoor Lab
- Completed a significant development milestone for a major
autonomous industrial vehicles OEM using our Nova product
- Incorporated our lidar technology with Koito’s new product,
ILLUMIERE™ a detection system designed for smart infrastructure
customers; showcased at CES 2024
Technology
- Launched Cepton Ultra, our next generation of high-performance
long-range lidar with the smallest form factor in the industry to
date, at CES 2024
- Developed and demonstrated MagnoSteer™, our proprietary
scanning and imaging technology, one of the top offerings in lidar
imaging solutions in the market
Financial Highlights
Revenue and Gross Margin
- Achieved full year 2023 revenue of $13.1 million, an increase
of 76% compared to the prior year, and above the full year 2023
revenue guidance provided in our third quarter 2023 earnings
release
- Fourth quarter 2023 product revenue was $2.5 million, an
increase of 152% compared to the prior year comparable period and a
decrease of 35% sequentially
- Fourth quarter 2023 development revenue was $2.5 million, an
increase of 314% compared to the prior year comparable period.
There was minimal development revenue during the third quarter 2023
(sequential quarter)
- Full year gross margin was 27% and fourth quarter 2023 gross
margin was 54%
Net Loss and Non-GAAP Net Loss
- Fourth quarter 2023 GAAP net loss was $8.3 million, or $(0.52)
per share, basic and diluted, and full year GAAP net loss was $48.5
million, or $(3.08) per share, basic and diluted
- Fourth quarter 2023 non-GAAP net loss was $6.4 million, or
$(0.41) per share, basic and diluted, and full year Non-GAAP net
loss was $38.9 million, or $(2.47) per share, basic and
diluted
Adjusted EBITDA
- Fourth quarter 2023 adjusted EBITDA was $(7.1) million, and the
full year adjusted EBITDA was $(41.2) million
Conference Call Details
Cepton will host a live conference call and webcast to discuss
the business updates and results at 2:30 p.m. PT (5:30 p.m. ET)
today. The live call can be accessed by dialing 1-877-423-9813
(toll free) or 1-201-689-8573 (international) and by webcast at
https://investors.cepton.com/.
A telephonic replay of the conference call will be available
approximately three hours after the live call and until April 11,
2024, and can be accessed by dialing 1-844-512-2921 (toll free) or
1-412-317-6671 (international) and entering the passcode 13745079.
An archived webcast of the conference call will be accessible on
Cepton’s Investor Relations page at
https://investors.cepton.com/.
About Cepton, Inc.
Cepton is a Silicon Valley innovator of lidar-based solutions
for automotive (ADAS/AV), smart cities, smart spaces, and smart
industrial applications. With its patented lidar technology, Cepton
aims to take lidar mainstream and achieve a balanced approach to
performance, cost and reliability, while enabling scalable and
intelligent 3D perception solutions across industries.
Founded in 2016 and led by industry veterans with decades of
collective experience across a wide range of advanced lidar and
imaging technologies, Cepton is focused on the mass market
commercialization of high performance, high quality lidar
solutions. Cepton is headquartered in San Jose, CA and has a center
of excellence facility in Troy, MI to provide local support to
automotive customers in the Detroit Metropolitan area. Cepton also
has a presence in Germany to serve a fast-growing global customer
base. For more information, visit www.cepton.com and follow Cepton
on Twitter and LinkedIn. Information on or that can be accessed
through our website, our Twitter account, our LinkedIn account, or
that is contained in any website to which a hyperlink is provided
herein is not part of this press release.
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of the “safe harbor” provisions of the United States
Private Securities Litigation Reform Act of 1995. All statements
other than statements of historical or current fact included in
this press release are forward-looking statements. The statements
included above as well as any other statements that refer to
projections, forecasts or other characterizations of future events
or circumstances, including any underlying assumptions, are
forward-looking statements. Forward-looking statements may be
identified by the use of words such as “estimate,” “objective,”
“plan,” “project,” “forecast,” “intend,” “will,” “expect,”
“anticipate,” “believe,” “seek,” “target,” “milestone,” “designed
to,” “proposed” or other similar expressions that predict or imply
future events or trends or that are not statements of historical
matters. Cepton cautions readers of this press release that these
forward-looking statements are subject to risks and uncertainties,
most of which are difficult to predict and many of which are beyond
Cepton’s control, that could cause the actual results to differ
materially from the expected results. These forward-looking
statements include, but are not limited to, statements regarding
the indication of interest received from Koito and uncertainty as
to the pricing, timing or terms of any transaction with Koito,
estimates and forecasts of financial and performance metrics,
projections of market opportunity and market share, potential
benefits and the commercial attractiveness to its customers of
Cepton’s products and services, the potential success of Cepton’s
marketing and expansion strategies, and the potential for Cepton to
achieve design awards.
These statements are based on various assumptions, whether or
not identified in this press release, and on the current
expectations of Cepton’s management and are not predictions of
actual performance. These forward-looking statements are provided
for illustrative purposes only and are not intended to serve as,
and must not be relied on by any investor as, a guarantee, an
assurance, a prediction or a definitive statement of fact or
probability. Actual events and circumstances are difficult or
impossible to predict and will differ from assumptions. These
forward-looking statements are subject to a number of risks and
uncertainties, including (1) the conditions affecting the markets
in which Cepton operates; (2) the success of Cepton’s strategic
relationships, including with Koito, which is not exclusive; (3)
fluctuations in sales by Cepton’s major customers; (4) fluctuations
in capital spending in the automotive and smart infrastructure
markets; (5) negative impact on the global economy and capital
markets resulting from macroeconomic conditions, including
inflation and rising interest rates, the effects of public health
crises, and the potential impact of geopolitical conflicts, such as
the ongoing conflicts in Ukraine and the Middle East; (6) changes
in applicable laws or regulations; (7) the possibility that
Cepton’s business may be adversely affected by other economic,
business, or competitive factors; (8) the risk that current trends
in the automotive and smart infrastructure markets decelerate or do
not continue; (9) errors or material differences in Cepton’s
estimates and expectations for its financial performance and
growth, including when Cepton will generate positive cash flow from
operations; (10) risks relating to the uncertainty of projected
financial and operating information, including whether Cepton will
be able to achieve its target milestones, its pricing and sales
volume targets, and win the engagements contemplated in its
projected pipeline, and the ability of OEMs and other strategic
partners to re-source or cancel vehicle or technology programs;
(11) risks related to future market adoption of Cepton’s offerings;
(12) risks related to Cepton’s marketing and growth strategies;
(13) the effects of competition on Cepton’s future business; (14)
Cepton’s ability to issue equity or equity-linked securities in the
future; (15) Cepton’s ability to raise funding on reasonable terms
as necessary to develop its products in the timeframe contemplated
by its business plan, and to comply with the terms of any
restrictive, financial or other covenants in the agreements
governing such funding, including the consent and other rights
granted to Koito as part of Koito’s convertible preferred stock
investment; (16) Cepton’s ability to execute its business plans and
strategy; (17) the outcome of any legal proceedings that may be
instituted against Cepton, including any related to the business
combination with Growth Capital Acquisition Corp.; and (18) the
other risks and uncertainties indicated from time to time in the
reports and documents Cepton files with the Securities and Exchange
Commission (the “SEC”), including in its Annual Report on Form
10-K. If any of these risks materialize or any of Cepton’s
assumptions prove incorrect, actual results could differ materially
from the results implied by these forward-looking statements. There
may be additional risks that Cepton does not presently know or that
Cepton currently believes are immaterial that could also cause
actual results to differ from those contained in the
forward-looking statements. In addition, forward-looking statements
reflect Cepton’s expectations, plans or forecasts of future events
and views as of the date of this press release. Cepton anticipates
that subsequent events and developments will cause its assessments
to change. These forward-looking statements should not be relied
upon as representing Cepton’s assessments as of any date subsequent
to the date of this press release. Accordingly, undue reliance
should not be placed upon the forward-looking statements. Cepton
undertakes no obligation to update any forward-looking statement to
reflect events or circumstances after the date on which the
statement is made or to reflect the occurrence of unanticipated
events, except as required by law.
Actual results, performance or achievements may, and are likely
to, differ materially, and potentially adversely, from any
projections and forward-looking statements and the assumptions on
which those forward-looking statements were based. There can be no
assurance that the data contained herein is reflective of future
performance to any degree. You are cautioned not to place undue
reliance on forward-looking statements as a predictor of future
performance as projected financial information and other
information are based on estimates and assumptions that are
inherently subject to various significant risks, uncertainties and
other factors, many of which are beyond Cepton’s control.
Non-GAAP Financial
Measures
Some of the financial information and data contained in this
press release, such as non-GAAP net loss and adjusted EBITDA, have
not been prepared in accordance with generally accepted accounting
principles in the United States (“GAAP”). Non-GAAP net loss is
defined as GAAP net (loss) income excluding stock-based
compensation, non-recurring transaction expenses, gain or loss on
changes in fair value of earnout liability and warrants, loss on
extinguishment of debt, loss on impairment of property and
equipment, and foreign currency transaction loss, net. As a result
of the cancellation of the GM series production award in December
2023, Cepton recognized an impairment loss of $0.4 million
associated with long-lived assets acquired specifically for
production of ADAS lidar sensors. This loss is excluded from the
calculation of Non-GAAP net loss. Adjusted EBITDA is defined as
non-GAAP net loss before interest income or expense, provision for
income taxes, and depreciation and amortization.
Cepton believes these non-GAAP financial measures of financial
results provide useful information to management and investors
regarding certain financial and business trends relating to
Cepton’s financial condition and results of operations. Cepton
believes that the use of these non-GAAP financial measures provides
an additional tool for investors to use in evaluating actual and
projected operating results and trends in comparing Cepton’s
financial measures with other similar companies, many of which
present similar non-GAAP financial measures to investors. Cepton
also believes that adjusted EBITDA is useful to investors and
analysts in assessing our operating performance during the periods
these charges were incurred on a consistent basis with the periods
during which these charges were not incurred. Our presentation of
adjusted EBITDA should not be considered as an inference that our
future results and financial position will be unaffected by unusual
items. Cepton does not consider these non-GAAP financial measures
in isolation or as an alternative to financial measures determined
in accordance with GAAP. The principal limitation of these non-GAAP
financial measures is that they exclude significant expenses and
other amounts that are required by GAAP to be recorded in Cepton’s
financial statements. In addition, they are subject to inherent
limitations as they reflect the exercise of judgments by management
about which expenses and other amounts are excluded or included in
determining these non-GAAP financial measures.
CEPTON, INC. AND
SUBSIDIARIES
Reconciliation of GAAP Net
(Loss) Income to Non-GAAP Net Loss and Non-GAAP Adjusted
EBITDA(1)
(In thousands, except share and
per share data)
(unaudited)
Three Months Ended December
31,
Year Ended December
31,
2023
2022 (1)
2023
2022 (1)
Net (loss) income
$
(8,320
)
$
(15,251
)
$
(48,546
)
$
9,380
Stock-based compensation
1,583
2,289
8,572
8,243
Non-recurring transaction expenses
—
—
—
3,009
Gain on changes in fair value of earnout
liability
—
(3,210
)
(827
)
(74,078
)
Gain on changes in fair value of warrant
liability
(98
)
(326
)
(397
)
(2,875
)
Loss on extinguishment of debt
—
958
1,123
958
Loss on impairment of property and
equipment
387
—
387
—
Foreign currency transaction loss, net
—
2,168
757
2,168
Non-GAAP net loss
(6,448
)
(13,372
)
(38,931
)
(53,195
)
Interest expense (income), net
(777
)
914
(2,792
)
2,511
Provision (benefit) for income taxes
13
(6
)
16
16
Depreciation and amortization
126
120
496
344
Non-GAAP adjusted EBITDA
(7,086
)
(12,344
)
(41,211
)
(50,324
)
GAAP net income (loss) per share
attributable to common stockholders:
Basic
$
(0.52
)
$
(0.97
)
$
(3.08
)
$
0.64
Diluted
$
(0.52
)
$
(0.97
)
$
(3.08
)
$
0.60
Non-GAAP net loss per share
attributable to common stockholders:
Basic
$
(0.41
)
$
(0.85
)
$
(2.47
)
$
(3.62
)
Diluted
$
(0.41
)
$
(0.85
)
$
(2.47
)
$
(3.62
)
Shares used in computing GAAP net income
(loss) per share attributable to common stockholders:
Basic
15,852,949
15,651,523
15,776,387
14,691,793
Diluted
15,852,949
15,651,523
15,776,387
15,572,845
Shares used in computing Non-GAAP net
loss per share attributable to common stockholders:
Basic
15,852,949
15,651,523
15,776,387
14,691,793
Diluted
15,852,949
15,651,523
15,776,387
14,691,793
(1)
Prior period figures are presented as
adjusted for the one-for-ten reverse stock split of the Company's
issued common stock (the “Reverse Stock Split”) effective on
September 21, 2023.
CEPTON, INC. AND
SUBSIDIARIES
Consolidated Balance
Sheets
(In thousands, except share
data)
December 31,
2023
2022 (1)
ASSETS
Current assets:
Cash and cash equivalents
$
50,406
$
31,953
Short-term investments
5,969
3,703
Accounts receivable, net of allowance for
credit losses of $0 and $0, respectively
3,625
1,301
Inventories
2,396
2,985
Prepaid expenses and other current
assets
1,253
6,272
Total current assets
63,649
46,214
Property and equipment, net
1,450
982
Restricted cash
1,283
2,565
Other assets
10,067
555
Total assets
$
76,449
$
50,316
LIABILITIES, CONVERTIBLE PREFERRED
STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Accounts payable
$
1,128
$
1,979
Operating lease liabilities, current
1,875
211
Accrued expenses and other current
liabilities
4,066
2,265
Short-term debt
—
42,587
Total current liabilities
7,069
47,042
Warrant liability
43
440
Earnout liability
93
920
Operating lease liabilities,
non-current
8,720
281
Total liabilities
15,925
48,683
Commitments and contingencies (Note
17)
Convertible preferred stock:
Convertible preferred stock – Par value
$0.00001 per share – 5,000,000 shares authorized at December 31,
2023 and 2022; 100,000 shares issued and outstanding at December
31, 2023 (aggregate liquidation preference of $104.1 million at
December 31, 2023; no shares issued and outstanding at December 31,
2022;
98,891
—
Stockholders’ equity (deficit):
Common stock – Par value $0.00001 per
share – 35,000,000 shares authorized at December 31, 2023 and 2022;
15,861,494 and 15,674,781 shares issued and outstanding at December
31, 2023 and 2022, respectively
—
—
Additional paid-in capital
96,583
88,058
Accumulated other comprehensive income
(345
)
(366
)
Accumulated deficit
(134,605
)
(86,059
)
Total stockholders’ equity (deficit)
(38,367
)
1,633
Total liabilities, convertible preferred
stock and stockholders’ equity (deficit)
$
76,449
$
50,316
(1)
Prior period figures are presented as
adjusted for the Reverse Stock Split effective on September 21,
2023.
CEPTON, INC. AND
SUBSIDIARIES
Consolidated Statements of
Operations
(In thousands, except share and
per share data)
Three Months Ended December
31,
Year Ended December
31,
2023
2022 (1)
2023
2022 (1)
Lidar sensor and prototype revenue
$
2,457
$
974
$
10,270
$
5,616
Development revenue
2,494
602
2,786
1,810
Total revenue
$
4,951
$
1,576
$
13,056
$
7,426
Lidar sensor and prototype cost of
revenue
1,804
775
8,939
6,383
Development cost of revenue
451
249
567
849
Total cost of revenue
$
2,255
$
1,024
$
9,506
$
7,232
Gross profit
2,696
552
3,550
194
Operating expenses:
Research and development
6,570
8,646
29,879
33,013
Selling, general and administrative
5,322
6,674
24,374
28,629
Total operating expenses
11,892
15,320
54,253
61,642
Operating loss
(9,196
)
(14,768
)
(50,703
)
(61,448
)
Other income (expense):
Gain on change in fair value of earnout
liability
—
3,210
827
74,078
Gain on change in fair value of warrant
liability
98
326
397
2,875
Foreign currency transaction loss, net
—
(2,168
)
(757
)
(2,168
)
Loss on extinguishment of debt
—
(958
)
(1,123
)
(958
)
Other (expense) income, net
14
15
37
(472
)
Interest (expense) income, net
777
(914
)
2,792
(2,511
)
(Loss) income before income taxes
(8,307
)
(15,257
)
(48,530
)
9,396
(Provision) benefit for income taxes
(13
)
6
(16
)
(16
)
Net (loss) income
$
(8,320
)
$
(15,251
)
$
(48,546
)
$
9,380
Net income (loss) per share, basic
$
(0.52
)
$
(0.97
)
$
(3.08
)
$
0.64
Net income (loss) per share, diluted
$
(0.52
)
$
(0.97
)
$
(3.08
)
$
0.60
Weighted-average common shares, basic
15,852,949
15,651,523
15,776,387
14,691,793
Weighted-average common shares,
diluted
15,852,949
15,651,523
15,776,387
15,572,845
(1)
Prior period figures are presented as
adjusted for the Reverse Stock Split effective on September 21,
2023.
CEPTON, INC. AND
SUBSIDIARIES
Consolidated Statements of
Cash Flows
(In thousands)
Year Ended December
31,
2023
2022
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net (loss) income
$
(48,546
)
$
9,380
Adjustments to reconcile net (loss) income
to net cash used in operating activities:
Depreciation and amortization
496
344
Stock-based compensation
8,572
8,243
Amortization of right-of-use asset
1,596
1,360
Amortization, other
347
1,721
Accretion from short-term investments
(1,157
)
(80
)
Gain on change in fair value of earnout
liability
(827
)
(74,078
)
Gain on change in fair value of warrant
liability
(397
)
(2,875
)
Loss on impairment of property and
equipment
387
—
Loss from extinguishment of debt
1,123
958
Foreign currency transaction loss, net
757
2,168
Other
—
181
Changes in operating assets and
liabilities:
Accounts receivable, net
(2,324
)
(801
)
Inventories
575
(448
)
Prepaid expenses and other current
assets
4,032
(1,920
)
Other long-term assets
202
(296
)
Accounts payable
(1,073
)
(653
)
Accrued expenses and other current
liabilities
1,800
99
Operating lease liabilities
(1,086
)
(1,611
)
Other long-term liabilities
—
311
Net cash used in operating activities
(35,523
)
(57,997
)
CASH FLOWS FROM INVESTING
ACTIVITIES:
Purchases of property and equipment
(1,292
)
(760
)
Proceeds from sale of property and
equipment
36
—
Purchases of short-term investments
(37,806
)
(32,368
)
Proceeds from sales of short-term
investments
—
8,303
Proceeds from maturities of short-term
investments
36,700
23,274
Net cash used in investing activities
(2,362
)
(1,551
)
CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from Business Combination and
private offering
—
76,107
Payments of Business Combination and
private offering transaction costs
—
(29,031
)
Proceeds from issuance of Trinity debt and
warrants, net of debt discount
—
9,724
Repayment of Trinity debt
—
(10,400
)
Repayment of secured term loan with
Koito
(45,220
)
—
Proceeds from issuance of secured term
loan with Koito
—
39,442
Proceeds from issuance of common stock
options
31
1,008
Payment of employee taxes related to
vested restricted stock units
(63
)
—
Proceeds from convertible preferred stock,
net of issuance costs
99,884
—
Proceeds from issuance of common stock
—
1,700
Net cash provided by financing
activities
54,632
88,550
Effect of exchange rate changes on
cash
424
1,862
Net increase in cash, cash equivalents and
restricted cash
17,171
30,864
Cash, cash equivalents and restricted
cash, beginning of period
34,518
3,654
Cash, cash equivalents and restricted
cash, end of period
$
51,689
$
34,518
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240328163749/en/
Cepton, Inc. Contacts Investors:
InvestorRelations@cepton.com Media: Faithy Li, media@cepton.com
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