Reported Q3 2022 billings of $12.5 million
and revenue of $9.6 million
Velodyne Lidar, Inc. (NASDAQ: VLDR, VLDRW), a leading lidar
company known worldwide for its broad portfolio of breakthrough
lidar technologies, today announced financial results for its third
quarter, which ended September 30, 2022.
“We delivered another solid quarter, experiencing strong demand
while making significant progress on initiatives to improve our
gross margin and lower our cost structure,” said Dr. Ted Tewksbury,
CEO of Velodyne Lidar. “Our growing customer traction across
multiple markets, as evidenced by the agreements we have recently
announced, further validates Velodyne’s position as a go-to
supplier of affordable lidar solutions that deliver the performance
needed to navigate complex indoor and outdoor industrial and
factory settings. The acquisition of Bluecity further bolsters our
ability to deliver end-to-end system solutions by integrating
software and hardware, providing us with a competitive advantage in
multiple end markets.
“A critical element of our previously announced gross margin
improvement plan was the transition of Velodyne’s production to our
contract manufacturer in Thailand, which is progressing on
schedule,” continued Dr. Tewksbury. “We also implemented a cost
rationalization plan in the third quarter to better align our
operating expense structure with revenue expectations. We saw an
initial benefit from these actions in the third quarter and expect
further improvements in the coming quarters.
“In addition, yesterday we announced a proposed all-stock merger
with Ouster to accelerate the adoption of lidar in fast-growing
global markets while strengthening our financial position,”
continued Dr. Tewksbury. “The transaction is expected to be
completed in the first half of 2023, at which time I will serve as
Executive Chairman of the Board and Ouster’s CEO Angus Pacala will
serve as CEO. As one combined company, we expect to unlock
significant synergies in order to scale and deliver
industry-leading solutions for customers while accelerating time to
profitability and enhancing value for shareholders."
Third Quarter 2022 Financial Summary
- Total revenue for the third quarter of 2022 was approximately
$9.6 million and includes an approximately $2.9 million contra
revenue impact from the Amazon warrant. This compares with total
revenue of $11.5 million, which included an approximately $1.0
million impact from the Amazon warrant in the second quarter.
- Billings were $12.5 million, flat with the second quarter.
Please see the Billings Metric definition below.
- GAAP gross loss was $10.9 million. This compares with a GAAP
gross loss of $7.1 million in the second quarter of 2022. The third
quarter gross loss was negatively impacted by $4.6 million from
inventory reserves and losses related to a product transition and
$2.4 million from terminated contracts.
- Non-GAAP gross loss was $3.3 million. This compares with a
non-GAAP gross loss of $4.2 million in the second quarter of
2022.
- GAAP operating expenses were $31.4 million, compared with $37.5
million in the second quarter of 2022.
- Non-GAAP operating expenses were $25.1 million, compared with
$31.8 million in the second quarter of 2022. The reduction reflects
the implementation of the ongoing cost rationalization plan.
- GAAP net loss was $41.6 million, or $(0.19) per share. This
compares with a GAAP net loss of $44.3 million, or $(0.22) per
share, in the second quarter of 2022.
- Non-GAAP net loss was $27.6 million, or $(0.13) per share. This
compares with a non-GAAP net loss of $35.7 million, or $(0.18) per
share, in the second quarter of 2022.
- The Company had $220.1 million in cash and short-term
investments as of September 30, 2022, compared with $229.2 million
as of June 30, 2022.
A reconciliation between GAAP and non-GAAP information is
provided in the tables below.
Fourth Quarter 2022 Outlook
Demand remains robust across our entire business. We expect
billings for the fourth quarter to be between $13 million and $15
million and revenue to be between $12 million and $14 million. The
difference is due to estimated non-cash contra revenue of up to $1
million related to the Amazon warrants.
“Our gross margin improvement plans are in full motion and, when
combined with the company-wide cost rationalization efforts, we are
reducing cash usage and driving toward breakeven,” said Dr.
Tewksbury.
Recent Corporate Highlights
- Acquired software company Bluecity, further strengthening our
portfolio of solutions for intelligent infrastructure.
- Announced the proposed merger of equals with Ouster, Inc.
(NYSE: OUST) on November 7, 2022.
- Signed a multi-year sales agreement with Stanley Robotics to
provide our Puck and Velarray M1600 lidar sensors for an automated
valet parking solution.
- Signed a multi-year sales agreement with Yamaha Motor to
provide our Puck lidar sensors for eve autonomy’s autonomous goods
transport service. eve autonomy is a joint venture between Yamaha
Motor and Tier IV Incorporated and provides logistical support for
factories to improve efficiency and safety.
- Signed a new multi-year agreement with long-time partner
Visimind to provide Velodyne’s Puck and Ultra Puck lidar sensors
for multiple applications. Visimind is a provider of airborne and
portable mapping solutions for major European energy
distributors.
- Made significant progress on the transition of manufacturing to
our low-cost partner in Thailand.
Conference Call Information
Velodyne will host a conference call and live webcast for
analysts and investors at 1:30 p.m. Pacific Time / 4:30 p.m.
Eastern Time today, November 8, 2022. Participants in the United
States and Canada can access the call by dialing 844-890-1797 or
412-317-5487. The live and recorded webcast will be accessible on
Velodyne’s investor relations website here. A telephonic replay of
the conference call will be available through November 22, 2022. To
access the replay, parties in the United States should call
1-877-344-7529, in Canada 855-669-9658 and internationally
412-317-0088 and enter the passcode 8759187.
Billings Metric
The third quarter of 2022 includes the accounting for the
warrants associated with the Amazon agreement that was announced on
February 4, 2022. The primary impact for the accounting of the
Amazon warrants is that reported revenues will diverge from cash
flow.
As a result, Velodyne is expanding the financial information
provided by including a billings metric. Billings represents the
dollar value of products and services provided during the current
period and invoiced to the customer. Management uses this metric to
track commercial growth, establish performance targets and make
budgetary and operating decisions. Billings excludes the effect of
the contra revenue recognized in connection with the Amazon
warrants.
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 a discontinued product
line, inventory reserves and losses related to a product
transition, terminated contract expense, stock-based compensation
and related employer payroll taxes, litigation settlements and
amortization of acquisition-related intangibles assets. 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.
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; supply chain issues in the
semiconductor market; 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, including projects that are not yet signed or
awarded; charges related to the vesting of the Amazon Warrant; the
rate and degree of market acceptance of Velodyne Lidar’s products
in a variety of industries; 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; the risk that the proposed merger with Ouster may be
delayed or not occur at all for a variety of reasons, including the
failure of either party to obtain a shareholder vote or delays in
obtaining such vote, or termination of the agreement by either
party under customary termination rights; disruptions to our
business during the pendency of the proposed merger, including
management distraction as well as the response of business partners
and employees; the risk of negative publicity and litigation as a
result of the proposed merger; the diversion of management time in
connection with the proposed merger; customary operating covenants
in the merger agreement that limit Velodyne Lidar’s ability to
engage in certain actions without the consent of Ouster (which
shall not be unreasonably withheld); the risk that the combined
company may fail to realize the anticipated benefits and cost
savings from the merger; 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.
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, a global leader in lidar, is known 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 robotics, industrial, intelligent
infrastructure, autonomous vehicles and advanced driver assistance
systems (ADAS). Through continuous innovation, Velodyne strives to
transform lives and communities by advancing safer mobility for
all.
VELODYNE LIDAR, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands)
(Unaudited)
September 30,
December 31,
2022
2021
Assets
Current assets:
Cash and cash equivalents
$
51,487
$
24,064
Short-term investments
168,570
270,357
Accounts receivable, net
6,129
8,881
Inventories, net
11,498
9,299
Prepaid and other current assets
8,201
14,822
Total current assets
245,885
327,423
Property, plant and equipment, net
11,684
14,710
Operating lease right-of-use (ROU)
assets
16,727
16,891
Goodwill
1,189
1,189
Intangible assets, net
402
724
Contract assets
9,182
12,962
Other assets
851
1,522
Total assets
$
285,920
$
375,421
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
5,001
$
5,105
Accrued expense and other current
liabilities
31,074
33,028
Operating lease liabilities, current
3,062
2,623
Contract liabilities, current
5,456
6,348
Total current liabilities
44,593
47,104
Operating lease liabilities,
non-current
14,674
15,210
Contract liabilities, non-current
9,841
12,740
Long-term tax liabilities
459
443
Other long-term liabilities
814
661
Total liabilities
70,381
76,158
Commitments and contingencies
Stockholders’ equity:
Preferred stock
—
—
Common stock
23
20
Additional paid-in capital
877,935
825,988
Accumulated other comprehensive loss
(1,103
)
(412
)
Accumulated deficit
(661,316
)
(526,333
)
Total stockholders’ equity
215,539
299,263
Total liabilities and stockholders’
equity
$
285,920
$
375,421
VELODYNE LIDAR, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands, except share
and per share data)
(Unaudited)
Three Months Ended
Nine Months Ended
September 30, 2022
June 30, 2022
September 30, 2021
September 30, 2022
September 30, 2021
Revenue:
Product
$
7,442
$
9,652
$
11,782
$
21,456
$
34,345
License and services
2,199
1,855
1,278
5,872
10,037
Total revenue
9,641
11,507
13,060
27,328
44,382
Cost of revenue:
Product
20,353
18,347
17,716
53,896
52,555
License and services
165
257
84
689
433
Total cost of revenue
20,518
18,604
17,800
54,585
52,988
Gross loss
(10,877
)
(7,097
)
(4,740
)
(27,257
)
(8,606
)
Operating expenses:
Research and development
16,918
18,757
20,221
56,972
55,608
Sales and marketing
4,878
5,340
6,547
16,223
60,798
General and administrative
9,583
13,430
23,271
35,330
59,440
Total operating expenses
31,379
37,527
50,039
108,525
175,846
Operating loss
(42,256
)
(44,624
)
(54,779
)
(135,782
)
(184,452
)
Interest income
732
294
109
1,253
321
Interest expense
—
—
(6
)
(3
)
(83
)
Other income (expense), net
2
(110
)
(22
)
(104
)
10,097
Loss before income taxes
(41,522
)
(44,440
)
(54,698
)
(134,636
)
(174,117
)
Provision for (benefit from) income
taxes
41
(141
)
14
347
649
Net loss
$
(41,563
)
$
(44,299
)
$
(54,712
)
$
(134,983
)
$
(174,766
)
Net loss per share:
Basic and diluted
$
(0.19
)
$
(0.22
)
$
(0.28
)
$
(0.66
)
$
(0.91
)
Weighted-average shares used in computing
net loss per share:
Basic and diluted
213,518,699
198,947,058
196,204,671
203,504,556
192,835,674
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
Nine Months Ended
September 30, 2022
June 30, 2022
September 30, 2021
September 30, 2022
September 30, 2021
Gross loss on GAAP basis
$
(10,877
)
$
(7,097
)
$
(4,740
)
$
(27,257
)
$
(8,606
)
Gross margin on GAAP basis
(113
)%
(62
)%
(36
)%
(100
)%
(19
)%
Discontinued product line
—
2,151
—
2,151
—
Inventory reserves and losses related to
product transition
4,608
—
—
4,608
—
Terminated contract expense
2,436
—
—
2,436
—
Stock-based compensation and related
employer payroll taxes
565
767
545
1,860
1,807
Gross loss on non-GAAP basis
$
(3,268
)
$
(4,179
)
$
(4,195
)
$
(16,202
)
$
(6,799
)
Gross margin on non-GAAP basis
(34
)%
(36
)%
(32
)%
(59
)%
(15
)%
Operating expenses on GAAP
basis
$
31,379
$
37,527
$
50,039
$
108,525
$
175,846
Terminated contract expense
(1,064
)
—
—
(1,064
)
—
Stock-based compensation and related
employer payroll taxes
(4,370
)
(5,600
)
(16,262
)
(14,444
)
(83,233
)
Legal settlements
—
—
(275
)
—
(1,520
)
Amortization of acquisition-related
intangible assets
—
(96
)
(96
)
(192
)
(288
)
Severance
(894
)
—
—
(894
)
—
Operating expenses on non-GAAP
basis
$
25,051
$
31,831
$
33,406
$
91,931
$
90,805
Operating loss on GAAP basis
$
(42,256
)
$
(44,624
)
$
(54,779
)
$
(135,782
)
$
(184,452
)
Discontinued product line
—
2,151
—
2,151
—
Inventory reserves and losses related to
product transition
4,608
—
—
4,608
—
Terminated contract expense
3,500
—
—
3,500
—
Stock-based compensation and related
employer payroll taxes
4,934
6,367
16,807
16,303
85,040
Legal settlements
—
—
275
—
1,520
Amortization of acquisition-related
intangible assets
—
96
96
192
288
Severance
894
—
—
894
—
Operating loss on non-GAAP
basis
$
(28,320
)
$
(36,010
)
$
(37,601
)
$
(108,134
)
$
(97,604
)
Other income (expense), net on GAAP
basis
$
2
$
(110
)
$
(22
)
$
(104
)
$
10,097
Gain from forgiveness of PPP loan
—
—
—
—
(10,124
)
Other income (expense), net on non-GAAP
basis
$
2
$
(110
)
$
(22
)
$
(104
)
$
(27
)
Net loss on GAAP basis
$
(41,563
)
$
(44,299
)
$
(54,712
)
$
(134,983
)
$
(174,766
)
Discontinued product line
—
2,151
—
2,151
—
Inventory reserves and losses related to
product transition
4,608
—
—
4,608
—
Terminated contract expense
3,500
—
—
3,500
—
Stock-based compensation and related
employer payroll taxes
4,934
6,367
16,807
16,303
85,040
Legal settlements
—
—
275
—
1,520
Amortization of acquisition-related
intangible assets
—
96
96
192
288
Severance
894
—
—
894
—
Gain from forgiveness of PPP loan
—
—
—
—
(10,124
)
Net loss on non-GAAP basis
$
(27,627
)
$
(35,685
)
$
(37,534
)
$
(107,335
)
$
(98,042
)
Net loss per share on GAAP
basis
Basic and diluted
$
(0.19
)
$
(0.22
)
$
(0.28
)
$
(0.66
)
$
(0.91
)
Weighted-average shares on GAAP
basis
Basic and diluted
213,518,699
198,947,058
196,204,671
203,504,556
192,835,674
Net loss per share on non-GAAP
basis
Basic and diluted
$
(0.13
)
$
(0.18
)
$
(0.19
)
$
(0.53
)
$
(0.51
)
Weighted-average shares on non-GAAP
basis
Basic and diluted
213,518,699
198,947,058
196,204,671
203,504,556
192,835,674
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221108005778/en/
Investor Contact Darrow Associates, Inc.
InvestorRelations@velodyne.com
Media Contact: Velodyne Lidar Jane Maynard
PR@velodyne.com
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