- First quarter 2021 revenue of $17.7 million
- 29 total active multi-year agreements as of May 1, 2021
- Pipeline of 198 projects at May 1, 2021, 23 of which include
software as a component
- $383.6 million of cash and short-term investments on the
balance sheet at March 31, 2021
Velodyne Lidar, Inc. (NASDAQ: VLDR, VLDRW), the first pure-play
public lidar company, today announced financial results for its
first quarter ended March 31, 2021.
Business and Financial Metrics
- Units and ASPs: Velodyne shipped a market leading 2,684 sensor
units in the first quarter of 2021. The company shipped 65% of its
sensors to customers as spot-buys and 35% of its sensors to
customers under multi-year agreements. The company also continued
its leadership position in solid state sensor sales with more than
600 sensors sold.
- Agreements: 29 total active multi-year agreements as of May 1,
2021, expected to grow to 34 by the end of 2021.
- Pipeline Strength: Velodyne’s pipeline of projects grew to 198
projects at May 1, 2021, up from 131 projects reported at January
1, 2020.
- First quarter 2021 revenue of $17.7 million.
- Full year 2021 revenue guidance of between $77 and $94
million.
- $383.6 million of cash and short-term investments on the
balance sheet at March 31, 2021.
Dr. Anand Gopalan, CEO of Velodyne Lidar, commented, “Velodyne
Lidar is the leading lidar developer and producer in the world and
we have continued our track record of consistent execution with
first quarter of 2021 revenue of $17.7 million and our pipeline of
projects growing to 198. Our commercial strategy of leveraging our
manufacturing scale to seed the global lidar market with our
products is working extremely well. This is evidenced both by our
strong spot-buy business and the continued conversion of these
customers into multi-year agreements. We continue to win in ADAS
with new EV entrants and our traditional automotive partners. We
are also growing our pipeline, especially in the Robotics &
Industrial segments where we see an opportunity to provide
hardware+solutions. Twenty-three projects in our pipeline now
include software as a component. On the technology front, we
continue to innovate and bring forth exciting new technologies and
solutions furthering our mission of bringing lidar technology to
many applications that can touch everyday lives meaningfully.
“Our focus in 2021 on geographies with strong growth, such as
China and the United States, should drive our product based
revenues to grow year over year and increase our multi-year
agreements to 34 by the end of the year. This is despite the
continued impact of COVID-19 in markets such as Europe and India,
and the current global supply chain shortages. Our scale as the
market leader, our best-in-class breadth of product offerings, and
our strong cash position enables us to pivot and capitalize on the
best near-term opportunities for Velodyne, while also investing and
optimizing for long-term growth.”
Since the company’s earnings call in February, Velodyne
announced multiple key business developments and operational
developments which affirm the company’s ongoing success and support
its long-term outlook:
- Customer Announcements
- Faraday Future selected Velodyne to be the exclusive supplier
of lidar for Faraday’s flagship FF 91 all-electric vehicle (EV).
Velodyne’s solid state sensors will power the FF 91’s autonomous
driving system that aims to deliver a comprehensive suite of
highway, urban and parking ADAS features.
- Gatik is the industry leader in automating on-road
transportation networks for B2B middle mile logistics. Gatik uses
Velodyne’s lidar sensors as a key part of a fully redundant sensor
suite to deliver goods safely and efficiently between
micro-fulfilment centers, dark stores and retail locations for
multiple Fortune 500 companies, including Walmart.
- AGM Systems LLC provides state-of-the-art hardware and software
technology for the collection, processing and analysis of air and
mobile mapping data to leading energy companies globally. AGM
launched a new Velodyne Lidar-based UAV mapping solution for
leading energy companies worldwide.
- Knightscope selected Velodyne Lidar’s technology to power its
future 5th Generation Autonomous Security Robots (ASRs).
- Technology
- Launched Intelligent Infrastructure Solution, which is designed
to solve some of the most challenging and pervasive infrastructure
problems. It generates real-time data analytics and predictions,
helping to improve traffic and crowd flow efficiency, advance
sustainability and protect vulnerable road users.
- Demonstrated how Velodyne’s affordable lidar-based PAEB
solution delivers superior performance in all conditions, a
decisive advantage over radar+camera-based systems, which can
significantly improve pedestrian safety.
- Corporate
- Expansion of executive team with the appointment of Sinclair
Vass as Chief Commercial Officer, James L. Barnhart as Chief
Operating Officer and Mike Jellen’s promotion to Chief Strategy
Officer.
- Appointment of Deborah Hersman, former chair of the National
Transportation Safety Board (NTSB), and Hamid Zarringhalam,
Corporate Vice President of Nikon Corporation, to the Board of
Directors.
First Quarter 2021 Financial Highlights
- Revenue: Total revenue of $17.7 million compared to
$17.8 million in the fourth quarter of 2020. Product revenue was
$10.6 million compared to $14.4 million in the fourth quarter of
2020. The overall product revenue reduction reflects a previously
discussed decline in unit sales due to Covid-19 and ongoing
evolution of product mix. License and Services revenue of $7.1
million included a $5.5 million licensing fee. Total license and
services revenue was $3.4 million in the fourth quarter of
2020.
- Gross Profit: GAAP gross profit was $1.9 million and
non-GAAP gross profit was $2.7 million, compared to a fourth
quarter 2020 GAAP gross loss of $5.3 million and non-GAAP gross
profit of $2.1 million. GAAP gross profit was reduced by $0.8
million of stock-based compensation expense, including employer
taxes, compared to fourth quarter 2020 GAAP gross loss that
included $7.4 million of stock-based compensation expense.
- Operating Expenses: GAAP operating expenses of $42.5
million and non-GAAP operating expenses of $28.6 million included
increased spending in research and development that is in response
to the visibility provided by the company’s multi-year agreement
pipeline. Fourth quarter 2020 GAAP operating expenses were $106.1
million and non-GAAP operating expenses were $22.1 million. GAAP
operating expenses included $13.3 million of stock-based
compensation expense, including employer taxes, compared to fourth
quarter 2020 GAAP operating expenses that included $83.8 million of
stock-based compensation expense.
- Net Loss and EPS: GAAP net loss was $40.8 million and
non-GAAP net loss was $26.1 million. GAAP net loss per share was
$0.22 and non-GAAP net loss per share was $0.14. This compared to a
fourth quarter of 2020 GAAP net loss of $111.5 million and non-GAAP
net loss of $20.1 million. Fourth quarter of 2020 GAAP net loss per
share was $0.64 and non-GAAP net loss per share was $0.12.
- Shares Outstanding: EPS for the first quarter of 2021 is
calculated using weighted average shares outstanding of 189.2
million. As of March 31, actual shares outstanding were 190.8
million.
- Liquidity: Velodyne completed the quarter with $383.6
million in cash and short-term investments on its balance sheet,
which included $89.3 million in proceeds from the exercise of
publicly traded warrants.
A reconciliation between historical GAAP and non-GAAP
information is provided in the tables below.
Business Outlook and 2021 Guidance
As of the end of the first quarter, Velodyne estimates that it
could have the opportunity for over $1.0 billion of revenue from
signed and awarded projects through 2025 plus a pipeline of
projects that are not yet signed and awarded of $4.5 billion. In
addition, it continues to be Velodyne’s top priority to invest in
scalable lidar architectures, advanced manufacturing technology and
software solutions. This underpins the company’s long-term business
outlook of total gross margin percentage ranging in the mid to high
50s and EBITDA margin of more than 20%.
Velodyne anticipates its multi-year agreements increasing to at
least 34 by December 31, 2021.
For the full year of 2021,
- Revenue is expected to range between $77 and $94 million.
Velodyne’s revenue comes from a global customer base, to whom the
company is actively shipping product. Parts of the company’s served
market, such as the US and China, is anticipated to come back and
meet the expectations for the second half. Other geographies
Velodyne serves, such as Europe, the rest of Asia, and India are
impacted more negatively by the continued impact of COVID-19. This
compares to full year 2020 revenue of $95.4 million, which included
unique one-time items of $11 million in product revenue from a
restocking fee and $17.5 million in License and services revenue
that came from lump sum licensing activity.
- Non-GAAP Gross margins are expected to be between 16% to 24%.
This reflects fewer units sold to cover remaining fixed overhead
costs of the company’s factory in San Jose. On a GAAP basis, gross
margins will include approximately $2 million of stock-based
compensation expense.
- On a non-GAAP basis operating expenses are expected to range
between $125 and $129 million. Based upon the visibility provided
by the company’s multi-year agreement pipeline, Velodyne is
increasing its spend in new product development by approximately
50% in 2021. General and administrative expenses will increase by
approximately 30% in 2021 due to increased public company and legal
expenses. On a GAAP basis, operating expense will include
approximately $83 million of stock based compensation expense that
reflect approximately $52 million to be charged against sales and
marketing in the second quarter related to Velodyne’s 2020 merger
with Graf Industrial.
- On a GAAP basis, income tax expense is anticipated to be
approximately $600,000.
- Weighted average shares outstanding for the year are estimated
to be 193.5 million.
Conference Call Information
Velodyne will host a conference call and live webcast for
analysts and investors at 4:30 p.m. Eastern Time on May 10, 2021.
Parties in the United States and Canada can access the call by
866-777-2509, using conference code 10154608. The webcast will be
accessible on Velodyne’s investor relations website at
https://investors.velodynelidar.com/. A telephonic replay of the
conference call will be available through May 17, 2021. To access
the replay, parties in the United States and Canada should call
877-344-7529 and enter conference code 10154608.
Forward-Looking Statements
This press release contains “forward-looking statements” within
the meaning of the “safe harbor” provisions of the Private
Securities Litigation Reform Act of 1995, including but not limited
to, statements regarding our financial outlook and market
positioning. Forward-looking statements give our current
expectations and projections relating to our financial condition,
results of operations, plans, objectives, future performance and
business. You can identify forward-looking statements by the fact
that they do not relate strictly to historical or current facts.
These statements may include words such as "anticipate",
"estimate", "expect", "project", "plan", "intend", "believe",
"may", "will", "should", "can have", "likely" and other words and
terms of similar meaning in connection with any discussion of the
timing or nature of future operating or financial performance or
other events. All forward-looking statements are subject to risks
and uncertainties that may cause actual results to differ
materially from those that we expected, including: the impact on
our operations and financial condition from the effects of the
current COVID-19 pandemic both on Velodyne’s business and those of
its customers and suppliers; Velodyne’s ability to execute its
business plan; the timing of revenue from existing customers,
including uncertainties related to the ability of Velodyne’s
customers to commercialize their products and the ultimate market
acceptance of these products; uncertainties related to Velodyne
Lidar’s estimates of the size of the markets for its products and
future revenue opportunities; the rate and degree of market
acceptance of Velodyne Lidar’s products; the success of other
competing lidar and sensor-related products and services that exist
or may become available; rising costs adversely affecting
Velodyne’s profitability; uncertainties related to Velodyne Lidar’s
current litigation and potential litigation involving Velodyne
Lidar or the validity or enforceability of Velodyne Lidar’s
intellectual property; Velodyne Lidar’s ability to partner with and
rely on third party manufacturers; general economic and market
conditions impacting demand for Velodyne Lidar’s products and
services; and changes in applicable laws or regulations.
Given these factors, as well as other variables that may affect
Velodyne Lidar’s operating results, you should not rely on
forward-looking statements, assume that past financial performance
will be a reliable indicator of future performance, or use
historical trends to anticipate results or trends in future
periods. The forward-looking statements included in this press
release relate only to events as of the date hereof. Velodyne Lidar
undertakes no obligation to update or revise any forward-looking
statement as a result of new information, future events or
otherwise, except as otherwise required by law.
Non-GAAP Financial Measures
In addition to our results determined in accordance with
generally accepted accounting principles in the United States
(“GAAP”), we believe the non‑GAAP measures of non-GAAP gross profit
(loss), non-GAAP gross margin, non-GAAP operating expenses,
non‑GAAP operating loss, non-GAAP net loss, and non‑GAAP net loss
per share are useful in evaluating our operating performance.
Certain of these non-GAAP measures exclude stock-based
compensation, RSU release tax expense, litigation settlements,
amortization of acquisition-related intangibles assets,
restructuring, and discrete tax items. We believe that non‑GAAP
financial information, when taken collectively, may be helpful to
investors because it provides consistency and comparability with
past financial performance and assists in comparisons 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 used in this press
release. The impact of these items in future periods is uncertain
and depends on various factors. Accordingly, a reconciliation for
forward-looking non-GAAP operating income is not available without
unreasonable effort.
About Velodyne Lidar, Inc.
Velodyne Lidar (NASDAQ: VLDR, VLDRW) ushered in a new era of
autonomous technology with the invention of real-time surround view
lidar sensors. Velodyne is the first public pure-play lidar company
and is known worldwide for its broad portfolio of breakthrough
lidar technologies. Velodyne’s revolutionary sensor and software
solutions provide flexibility, quality and performance to meet the
needs of a wide range of industries, including autonomous vehicles,
advanced driver assistance systems (ADAS), robotics, unmanned
aerial vehicles (UAV), smart cities, and security. Through
continuous innovation, Velodyne strives to transform lives and
communities by advancing safer mobility for all. For more
information, please visit: ir.velodynelidar.com and follow us on
Twitter: @VelodyneLidar.
VELODYNE LIDAR, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands)
March 31,
December 31,
2021
2020
(Unaudited)
Assets
Current assets:
Cash and cash equivalents
$
155,205
$
204,648
Short-term investments
228,408
145,636
Accounts receivable, net
13,469
13,979
Inventories, net
20,894
18,132
Prepaid and other current assets
12,043
22,319
Total current assets
430,019
404,714
Property, plant and equipment, net
15,541
16,805
Goodwill
1,189
1,189
Intangible assets, net
531
627
Contract assets
10,378
8,440
Other assets
19,934
937
Total assets
$
477,592
$
432,712
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
3,815
$
7,721
Accrued expense and other current
liabilities
30,187
50,349
Contract liabilities
9,388
7,323
Total current liabilities
43,390
65,393
Long-term tax liabilities
566
569
Other long-term liabilities
41,959
25,927
Total liabilities
85,915
91,889
Commitments and contingencies
Stockholders’ equity:
Preferred stock
—
—
Common stock
19
18
Additional paid-in capital
746,824
656,717
Accumulated other comprehensive loss
(252
)
(230
)
Accumulated deficit
(354,914
)
(315,682
)
Total stockholders’ equity
391,677
340,823
Total liabilities and stockholders’
equity
$
477,592
$
432,712
VELODYNE LIDAR, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands, except share
and per share data)
(Unaudited)
Three Months Ended
March 31, 2021
December 31, 2020
March 31, 2020
Revenue:
Product
$
10,593
$
14,407
$
16,422
License and services
7,133
3,439
609
Total revenue
17,726
17,846
17,031
Cost of revenue:
Product
15,629
23,088
15,126
License and services
179
99
303
Total cost of revenue
15,808
23,187
15,429
Gross profit (loss)
1,918
(5,341
)
1,602
Operating expenses:
Research and development
18,378
48,427
14,527
Sales and marketing
7,075
18,955
5,299
General and administrative
17,036
38,790
10,733
Restructuring
—
(59
)
1,046
Total operating expenses
42,489
106,113
31,605
Operating loss
(40,571
)
(111,454
)
(30,003
)
Interest income
103
33
112
Interest expense
(36
)
(37
)
(6
)
Other expense, net
(17
)
15
(165
)
Loss before income taxes
(40,521
)
(111,443
)
(30,062
)
Provision for (benefit from) income
taxes
296
14
(6,677
)
Net loss
$
(40,817
)
$
(111,457
)
$
(23,385
)
Net loss per share:
Basic and diluted
$
(0.22
)
$
(0.64
)
$
(0.17
)
Weighted-average shares used in computing
net loss per share:
Basic and diluted
189,222,807
173,888,792
137,911,975
VELODYNE LIDAR, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended March
31,
2021
2020
Cash flows from operating
activities:
Net loss
$
(40,817
)
$
(23,385
)
Adjustments to reconcile net loss to cash
used in operating activities:
Depreciation and amortization
2,053
2,171
Reduction in carrying amount of ROU
assets
787
—
Stock-based compensation
11,530
21
Provision for doubtful accounts
1,682
314
Other
161
—
Changes in operating assets and
liabilities:
Accounts receivable, net
(1,172
)
191
Inventories, net
(2,762
)
(154
)
Prepaid and other current assets
1,702
(4,676
)
Contract assets
(2,438
)
—
Other assets
(2
)
98
Accounts payable
(3,856
)
4,591
Accrued expenses and other liabilities
(3,867
)
(6,227
)
Contract liabilities
1,892
(6,232
)
Net cash used in operating activities
(35,107
)
(33,288
)
Cash flows from investing
activities:
Purchase of property, plant and
equipment
(601
)
(829
)
Proceeds from sales of short-term
investments
2,000
—
Proceeds from maturities of short-term
investments
7,000
2,200
Purchase of short-term investments
(91,932
)
—
Net cash provided by (used in) investing
activities
(83,533
)
1,371
Cash flows from financing
activities:
Payment of transaction costs related to
Business Combination
(20,006
)
(25
)
Proceeds from warrant exercises
89,222
—
Tax withholding payment for vested equity
awards
(37
)
—
Cash paid for IPO costs
—
(634
)
Net cash provided by (used in) financing
activities
69,179
(659
)
Effect of exchange rate fluctuations on
cash and cash equivalents
18
(23
)
Net decrease in cash and cash
equivalents
(49,443
)
(32,599
)
Beginning cash and cash
equivalents
204,648
60,004
Ending cash and cash
equivalents
$
155,205
$
27,405
VELODYNE LIDAR, INC. AND
SUBSIDIARIES
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
(In thousands, except share
and per share data)
(Unaudited)
Three Months Ended
March 31, 2021
December 31, 2020
March 31, 2020
Gross profit (loss) on GAAP
basis
$
1,918
$
(5,341
)
$
1,602
Gross margin on GAAP basis
11
%
(30
)
%
9
%
Stock-based compensation
536
7,415
—
RSU release tax expense
275
—
—
Gross profit on non-GAAP basis
$
2,729
$
2,074
$
1,602
Gross margin on non-GAAP basis
15
%
12
%
9
%
Operation expenses on GAAP
basis
$
42,489
$
106,113
$
31,605
Stock-based compensation
(10,994
)
(83,844
)
(21
)
Legal settlements
(450
)
(105
)
(2,461
)
RSU release tax expense
(2,351
)
—
—
Amortization of acquisition-related
intangible assets
(96
)
(97
)
(96
)
Restructuring charges
—
59
(1,046
)
Operation expenses on non-GAAP
basis
$
28,598
$
22,126
$
27,981
Operation loss on GAAP basis
$
(40,571
)
$
(111,454
)
$
(30,003
)
Stock-based compensation
11,530
91,259
21
Legal settlements
450
105
2,461
RSU release tax expense
2,626
—
—
Amortization of acquisition-related
intangible assets
96
97
96
Restructuring charges
—
(59
)
1,046
Operation loss on non-GAAP
basis
$
(25,869
)
$
(20,052
)
$
(26,379
)
Provision for (benefit from) income
taxes on GAAP basis
$
296
$
14
$
(6,677
)
Non-GAAP tax reconciling adjustments
—
—
6,686
Provision for income taxes on non-GAAP
basis
$
296
$
14
$
9
Net loss on GAAP basis
$
(40,817
)
$
(111,457
)
$
(23,385
)
Stock-based compensation
11,530
91,259
21
Legal settlements
450
105
2,461
RSU release tax expense
2,626
—
—
Amortization of acquisition-related
intangible assets
96
97
96
Restructuring charges
—
(59
)
1,046
Non-GAAP tax reconciling adjustments
—
—
(6,686
)
Net loss on non-GAAP basis
$
(26,115
)
$
(20,055
)
$
(26,447
)
Net loss per share on GAAP
basis
Basic and diluted
$
(0.22
)
$
(0.64
)
$
(0.17
)
Weighted-average shares on GAAP
basis
Basic and diluted
189,222,807
173,888,792
137,911,975
Net loss per share on non-GAAP
basis
Basic and diluted
$
(0.14
)
$
(0.12
)
$
(0.19
)
Weighted-average shares on non-GAAP
basis
Basic and diluted
189,222,807
173,888,792
137,911,975
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210510005907/en/
Investor Contact: Drew Hamer Chief Financial Officer
InvestorRelations@velodyne.com
Media Contact: Sean Dowdall Landis Communications Inc.
Sean@landispr.com
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