$8.6 million in revenue with 30% gross margins
in Q1 2022
Reiterates FY 2022 guidance
Ouster, Inc. (NYSE: OUST) (“Ouster” or the “Company”), a leading
provider of high-resolution digital lidar sensors for the
automotive, industrial, smart infrastructure, and robotics
industries, today announced financial results for the three months
ended March 31, 2022.
First Quarter 2022 Financial Highlights
- $8.6 million in revenue, up 29% year over year.
- 30% gross margins, compared to 26% in the first quarter of
2021.
- Shipped 1,550 sensors in the first quarter, up 58% year over
year.
- Increased the number of Strategic Customer Agreements to 72, up
from 68 in the prior quarter, collectively representing over $550
million in contracted revenue opportunity through 2026.1
- Net loss increased to $32 million, compared to $21 million in
the first quarter 2021.
- Adjusted EBITDA loss increased to $23 million, compared to $10
million in the first quarter 2021.
Ouster achieved its second highest revenue quarter despite
expected variability in customer orders in the first quarter. The
Company maintained industry-leading gross margins of 30% in the
first quarter, as it successfully navigated global supply chain
challenges and recorded a higher average selling price from spot
buys across its four industry verticals.
“Following a breakout year in 2021, Ouster continued to see
strong demand for our solutions, validating our position in the
marketplace,” said Ouster CEO Angus Pacala. “Further, we maintained
positive gross margins, introduced new solutions, and delivered on
major automotive milestones along our product roadmap together with
our strategic global automotive OEM partner.”
Business Updates
Achieved Major Automotive
Milestones: Ouster made progress on its path towards
automotive readiness with the introduction of its Chronos chip – an
automotive-grade, fully custom digital lidar silicon receiver that
will power its DF series to enable more performant, power
efficient, and compact digital lidar sensors for mass production
vehicles. Ouster further delivered on its DF series product
roadmap, manufacturing its first A-sample in the first quarter, and
achieved a major milestone in its strategic development agreement
with its global automotive OEM partner, shipping the first A-sample
in April 2022.
Introduced Joint Security Solution:
Ouster executed on its go-to-market strategy within the smart
infrastructure vertical with the launch of Ouster x Accur8vision, a
joint security solution that combines 3D digital lidar with
industry-leading security software to target the multibillion
dollar security market. The Company believes this collaboration
will accelerate the adoption of digital lidar by providing a more
flexible and performant security system than the camera-based
systems on the market today.
Continued Customer Traction: In the
first quarter, Ouster sold sensors to 90 new customers2 and
increased the number of multi-year SCAs to 72. Revenue in the first
quarter was driven by shipments to multiple trucking companies;
autonomous bus, shuttle, and robotaxi customers; large industrial
OEMs for material handling applications; multiple warehouse
automation customers; customers deploying intelligent
transportation applications; and a diverse set of emerging robotics
customers for drone-based mapping and inspection systems,
sanitation vehicles, defense applications, and last-mile delivery
robots.
Strengthened Financial Position:
Following the close of the first quarter, Ouster further
strengthened its financial position with a $50 million term loan
with no dilution to equity holders, including immediate access to
$40 million in cash and a potential additional $10 million in 2023,
subject to satisfying certain conditions. Please see the Company’s
Current Report on Form 8-K filed with the SEC on dated April 29,
2022 for further details.
2022 Outlook
Ouster reiterates its FY 2022 guidance of $65 million to $85
million in revenue and 25% to 30% gross margins.
The Company's bottom up analysis – based on sales pipeline,
bookings, and commercial expansion plans coupled with major product
announcements planned for later in the year – provides a commercial
path to deliver on its full year 2022 revenue and margin guidance,
which it expects will follow a similar trajectory to 2021 with
larger customer orders and shipments hitting in the second half of
the year.
“Our go-to-market strategy, leading cost structure, and
continued customer traction across each of our four verticals help
position us to drive near and long-term revenue growth,” said
Ouster CFO Anna Brunelle. “We continue to increase our foundation
of pre-production and production customers, and build greater
predictability into our business as the industry matures. This,
coupled with our bottom-up commercial pipeline, supports our Full
Year 2022 guidance.”
Conference Call Information
Ouster will host a conference call and live webcast for analysts
and investors at 5 p.m. EST today, May 3rd, to discuss its
financial results and business outlook. To access the call, please
register by visiting the website
https://conferencingportals.com/event/xojjoxlp.
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
May 17, 2022. 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 building a safer and more sustainable
future through its high-resolution digital lidar sensors for the
automotive, industrial, smart infrastructure, and robotics
industries. Ouster’s sensors offer an excellent combination of
price and performance with the flexibility to span hundreds of
use-cases and enable revolutionary autonomy across industries. With
a global team and high-volume manufacturing, Ouster supports over
600 customers in over 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 “safe harbor” provisions of the Private
Securities Litigation Reform Act of 1995, including but not limited
to, statements regarding Ouster’s technological advancements,
strategic partnerships and outlook, its ability to meet its revenue
goals and guidance, its strategy, and market positioning, effects
of bottoms-up analysis and cost structure, sales pipeline, bookings
and commercial expansion plans, anticipated product announcements,
ability to drive near and long term revenue growth, and building
greater predictability in our business. Forward-looking statements
give Ouster’s current expectations and projections relating to its
financial condition, competitive position, financial position,
future results of operations, plans, objectives, future orders
whether binding or non-binding, and business. You may 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 “aim”, “anticipate”, “estimate”, “expect”,
“project”, “plan”, “forecast”, “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 but not limited to Ouster’s limited
operating history and history of losses; the negotiating power and
product standards of its customers; fluctuations in its operating
results; supply chain constraints and challenges; cancellation or
postponement of contracts or unsuccessful implementations; the
adoption of its products and the growth of the lidar market
generally; its 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 it operates; selection of its products for inclusion in
target markets; its future capital needs and ability to secure
additional capital on favorable terms or at all; its ability to use
tax attributes; its dependence on key third party suppliers, in
particular Benchmark Electronics, Inc., and manufacturers; ability
to maintain inventory and the risk of inventory write-downs;
inaccurate forecasts of market growth; its ability to manage
growth; the creditworthiness of customers; risks related to
acquisitions; risks related to international operations; risks of
product delivery problems or defects; costs associated with product
warranties; its ability to maintain competitive average selling
prices or high sales volumes or reduce product costs; conditions in
its customers’ industries; its ability to recruit and retain key
personnel; its use of professional employer organizations; its
ability to adequately protect and enforce its intellectual property
rights; its ability to effectively respond to evolving regulations
and standards; risks related to operating as a public company;
risks related to the COVID-19 pandemic; and other important factors
discussed in the Company’s Annual Report on Form 10-K for the year
ended December 31, 2021, and in other reports the Company files
with or furnishes to the Securities and Exchange Commission. 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 required by law, even if subsequent events cause its views
to change.
The financials herein are unaudited and subject to the
finalization of year-end audit procedures. 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. Ouster
calculates Adjusted EBITDA as net loss excluding interest expense
(income), net, other expense (income), net, stock-based
compensation expense, depreciation and amortization 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.
1 “Strategic Customer Agreements” or “SCAs” establish a
multi-year purchase and supply framework for Ouster and the
customer, and include details about customer programs and
applications where the customer intends to use Ouster products.
SCAs also include multi-year non-binding customer forecasts
(typically of three to five years in length) giving Ouster
visibility to the customer's long-term purchasing requirements,
mutually agreed upon pricing over the duration of the agreement,
and in certain cases include multi-year binding purchase
commitments. “Contracted revenue opportunity” represents the sum of
both binding purchase commitments and non-binding forecasts. No
assurances can be given that non-binding forecasts will mature into
binding purchase commitments, or that any contracted revenue
opportunity will result in revenue. No additional revenue
opportunity beyond the customer’s actual forecast has been
imputed.
2 “Customer” is defined as having purchased a sensor within the
past twelve months ended March 31, 2022.
OUSTER, INC. CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited) (in thousands, except share and per share
data)
March 31,
December 31
2022
2021
Assets Current assets: Cash and cash equivalents
$
160,783
$
182,644
Restricted cash, current
977
977
Accounts receivable, net
9,881
10,723
Inventory
11,619
7,448
Prepaid expenses and other current assets
3,006
5,566
Total current assets
186,266
207,358
Property and equipment, net
8,968
10,054
Operating lease, right-of-use assets
14,582
15,156
Goodwill
51,076
51,076
Intangible assets, net
21,530
22,652
Restricted cash, non-current
1,035
1,035
Other non-current assets
452
371
Total assets
$
283,909
$
307,702
Liabilities, redeemable convertible preferred stock and
stockholders' equity Current liabilities: Accounts payable
$
9,469
$
4,863
Accrued and other current liabilities
11,789
14,173
Operating lease liability, current portion
2,888
3,067
Total current liabilities
24,146
22,103
Operating lease liability, long-term portion
15,685
16,208
Warrant liabilities
5,881
7,626
Other non-current liabilities
1,018
1,065
Total liabilities
46,730
47,002
Commitments and contingencies Redeemable convertible preferred
stock, $0.0001 par value per share; 100,000,000 shares authorized
at March 31, 2022 and December 31, 2021; Nil shares issued and
outstanding at March 31, 2022 and December 31, 2021, respectively
(aggregate liquidation preference of Nil at March 31, 2022 and
December 31, 2021, respectively)
—
—
Stockholders’ equity (deficit): Common stock, $0.0001 par value;
1,000,000,000 shares authorized at March 31, 2022 and December 31,
2021; 173,602,503 and 172,200,417 issued and outstanding at March
31, 2022 and December 31, 2021, respectively
17
17
Additional paid-in capital
572,933
564,045
Accumulated deficit
(335,753
)
(303,356
)
Accumulated other comprehensive loss
(18
)
(6
)
Total stockholders’ equity
237,179
260,700
Total liabilities, redeemable convertible preferred stock, and
stockholders’ equity
$
283,909
$
307,702
OUSTER, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(unaudited)
(in thousands, except share
and per share data)
Three Months Ended March
31,
2022
2021
Product revenue
$
8,558
$
6,611
Cost of product revenue
5,967
4,868
Gross profit
2,591
1,743
Operating expenses: Research and development
15,906
4,712
Sales and marketing
7,090
3,426
General and administrative
13,783
9,907
Total operating expenses
36,779
18,045
Loss from operations
(34,188
)
(16,302
)
Other income (expense): Interest income
154
1
Interest expense
—
(504
)
Other income (expense), net
1,684
(4,152
)
Total other income (expense), net
1,838
(4,655
)
Loss before income taxes
(32,350
)
(20,957
)
Provision for income taxe expense
47
—
Net loss
(32,397
)
(20,957
)
Other comprehensive loss Foreign currency translation adjustments
(12
)
—
Total comprehensive loss
(32,409
)
(20,957
)
Net loss per common share, basic and diluted
$
(0.19
)
$
(0.38
)
Weighted-average shares used to compute basic and diluted net loss
per share
170,906,196
55,688,281
OUSTER, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
(in thousands)
Three Months Ended March
31,
2022
2021
CASH FLOWS FROM OPERATING ACTIVITIES Net loss
$
(32,397
)
$
(20,957
)
Adjustments to reconcile net loss to net cash used in operating
activities: Depreciation and amortization
2,385
1,095
Stock-based compensation
8,750
5,256
Change in right-of-use asset
644
520
Interest expense on notes and convertible debt
-
36
Amortization of debt issuance costs and debt discount
-
250
Change in fair value of warrant liabilities
(1,745
)
4,152
Inventory write down
203
-
Gain from disposal of property and equipment
(100
)
-
Changes in operating assets and liabilities: Accounts receivable
842
(140
)
Inventory
(4,373
)
(476
)
Prepaid expenses and other assets
2,480
(1,202
)
Accounts payable
4,807
(1
)
Accrued and other liabilities
(2,551
)
(254
)
Operating lease liability
(772
)
(678
)
Net cash used in operating activities
(21,827
)
(12,399
)
CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of
property & equipment
275
-
Purchases of property and equipment
(416
)
(597
)
Net cash used in investing activities
(141
)
(597
)
CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from the
merger and private offering
-
291,454
Payment of offering costs
-
(26,116
)
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
(31
)
(43
)
Proceeds from exercise of stock options
209
504
Taxes paid related to net share settlement of restricted stock
awards
(59
)
-
Net cash provided by financing activities
119
258,799
Effect of exchange rates on cash and cash equivalents
(12
)
-
Net increase (decrease) in cash, cash equivalents and restricted
cash
(21,862
)
245,803
Cash, cash equivalents and restricted cash at beginning of year
184,657
12,642
Cash, cash equivalents and restricted cash at end of year
$
162,795
$
258,445
SUPPLEMENTAL DISCLOSURES OF OPERATING ACTIVITIES: Cash paid
for interest
$
-
$
635
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING
INFORMATION: Property and equipment purchases included in
accounts payable and accrued liabilities
$
377
$
100
Private placement warrants acquired as part of the merger
$
-
$
19,377
Issuance of redeemable convertible preferred stock upon exercise of
warrants
$
-
$
58,097
Conversion of redeemable convertible preferred stock to common
stock
$
-
$
97,322
Deferred transaction costs not yet paid
$
-
$
504
OUSTER, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES (unaudited) (in thousands)
Three Months Ended March
31,
2022
2021
GAAP net loss
$
(32,397
)
$
(20,957
)
Interest expense (income), net
(154
)
503
Other expense (income), net
(1,684
)
4,152
Stock-based compensation(1)
8,750
5,256
Income taxes
47
-
Non-GAAP operating loss
(25,438
)
(11,046
)
Depreciation and amortization expense(2)
2,385
1,095
Adjusted EBITDA
$
(23,053
)
$
(9,951
)
(1) Includes stock-based compensation expense as follows:
Three Months Ended March
31,
2022
2021
Cost of revenue
$
383
$
118
Research and development
3,595
921
Sales and marketing
1,524
265
General and administrative
3,248
3,952
Total stock-based compensation
$
8,750
$
5,256
(2) Includes depreciation and amortization expense as
follows:
Three Months Ended March
31,
2022
2021
Cost of revenue
$
577
$
350
Research and development
577
192
Sales and marketing
75
—
General and administrative
1,156
553
Total depreciation and amortization expense
$
2,385
$
1,095
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220503006203/en/
For Investors Sarah Ewing investors@ouster.io
For Media Heather Shapiro press@ouster.io
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