Cepton, Inc. Reports First Quarter 2024 Results
Cepton, a leader in high-performance lidar solutions, reported its Q1 2024 financial results. The company secured a new series production award with a global OEM for its near-range lidar, in collaboration with Koito. Cepton also signed a $10 million engineering services contract with Koito for product development. The company achieved a 31% increase in revenue, totaling $1.9 million, with a net GAAP loss of $6.8 million and a non-GAAP net loss of $8.3 million. Cepton's adjusted EBITDA was $(8.9) million. A $4.0 million gain was recorded from cost recovery of a canceled OEM project. The company expects full-year revenue of $15 to $25 million and operating expenses below $50 million.
- Secured a new series production award with a global OEM for near-range lidar.
- Signed a $10 million engineering services contract with Koito.
- Achieved a 31% increase in revenue, reaching $1.9 million.
- Recorded a $4.0 million gain from cost recovery of a canceled OEM project.
- Projected full-year revenue of $15 to $25 million.
- Operating expenses expected to be below $50 million.
- Q1 2024 GAAP net loss of $6.8 million, or $(0.43) per share.
- Q1 2024 Non-GAAP net loss of $8.3 million, or $(0.52) per share.
- Q1 2024 adjusted EBITDA was $(8.9) million.
- Total revenue of $1.9 million, while higher than prior periods, still relatively low.
Insights
Cepton's Q1 2024 financial results reveal a mixed performance. The 31% year-over-year revenue increase to
Cepton's technological advancements are noteworthy. The Ultra B sample represents a significant leap in lidar technology with smallest form factor and integrated MagnoSteer™. This innovation could provide a competitive edge in the ADAS and AV development market. Additionally, the launch of StudioViz™ for high-fidelity 3D point cloud simulation will reduce development costs and time for clients. These advancements indicate Cepton’s commitment to driving technology leadership in the lidar space.
Cepton's recent business developments, such as the new series production award with a global OEM and the $10 million engineering services contract with Koito, highlight the company's strategic partnerships and growth prospects. The final submission for RFQ responses to top automotive OEMs shows that Cepton is actively pursuing major contracts which could significantly boost future revenue streams. However, the success will depend on converting these opportunities into tangible sales amid competitive pressures in the lidar market.
“We started fiscal year 2024 with strong results in our commercial activities, securing a new series production award along with our tier 1 partner, Koito, from a global OEM for our near-range lidar,” said Jun Pei, Cepton’s Co-Founder and CEO. “We believe we have positioned ourselves as a leader in industrializing lidar for the automotive market.”
Business Highlights
Automotive
- Secured a new series production award with a global OEM over a multi-year period for our near-range lidar, in collaboration with Koito
-
Signed an engineering services contract with Koito for approximately
$10 million
- Final submission for RFQ response to a Top 10 global automotive OEM for our long-range lidar
- First submission for RFQ response from a Top 3 global automotive OEM for both our long-range lidar and near-range lidar.
Technology
-
Achieved B sample for the Cepton Ultra, our next generation of high-performance long-range lidar with the smallest form factor in the industry to date, which has been demonstrated to customers in
North America ,Europe , andJapan
- Fully integrated MagnoSteer™ into Ultra B samples. MagnoSteer™ is our proprietary scanning and imaging technology and is one of the top offerings in lidar imaging solutions in the market
- Launched our end-to-end lidar simulation platform, StudioViz™, which provides high-fidelity 3D point cloud simulation to expedite lidar-based ADAS and AV development at minimized physical implementation costs.
Financial Highlights
Revenue
-
First quarter 2024 total revenue was
$1.9 million $1.1 million $0.8 million
-
First quarter 2024 total revenue increase by
31% compared to$1.5 million
Net Loss and Non-GAAP Net Loss
-
First quarter 2024 GAAP net loss was
$6.8 million $(0.43)
-
First quarter 2024 Non-GAAP net loss was
$8.3 million $(0.52)
Adjusted EBITDA
-
First quarter 2024 adjusted EBITDA was
$(8.9) million
OEM Project Cancellation Cost Recovery
-
We recorded a
$4.0 million
Full Year 2024 Financial Outlook
-
Full year revenue is expected to be between
$15 $25 million
-
Full year operating expenses are expected to be below
$50 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 May 27, 2024, and can be accessed by dialing 1-844-512-2921 (toll free) or 1-412-317-6671 (international) and entering the passcode 13745911. 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
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 estimates and forecasts of financial and performance metrics, projections of market opportunity and market share, statements regarding the new series production award, including those relating to potential fees with respect thereto, 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
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
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 to Non-GAAP Net Loss and Non-GAAP Adjusted EBITDA (In thousands, except share and per share data) (unaudited) |
|||||||
|
Three Months Ended
|
||||||
|
|
2024 |
|
|
|
2023 |
|
Net loss |
$ |
(6,833 |
) |
|
$ |
(14,742 |
) |
Stock-based compensation |
|
926 |
|
|
|
2,289 |
|
Gain from project cancellation cost recovery |
|
(4,000 |
) |
|
|
— |
|
Non-recurring transaction expenses |
|
1,560 |
|
|
|
— |
|
Gain on change in fair value of earnout liability |
|
— |
|
|
|
(762 |
) |
(Loss) gain on change in fair value of warrant liability |
|
7 |
|
|
|
(94 |
) |
Loss on extinguishment of debt |
|
— |
|
|
|
1,123 |
|
Foreign currency transaction loss, net |
|
1 |
|
|
|
750 |
|
Non-GAAP net loss |
$ |
(8,339 |
) |
|
$ |
(11,436 |
) |
Interest income, net |
|
(654 |
) |
|
|
(299 |
) |
Provision for income taxes |
|
7 |
|
|
|
— |
|
Depreciation and amortization |
|
103 |
|
|
|
110 |
|
Adjusted EBITDA |
$ |
(8,883 |
) |
|
$ |
(11,625 |
) |
|
|
|
|
||||
GAAP net loss per share attributable to common stockholders: |
|
|
|
||||
Basic |
$ |
(0.43 |
) |
|
$ |
(0.94 |
) |
Diluted |
$ |
(0.43 |
) |
|
$ |
(0.94 |
) |
Non-GAAP net loss per share attributable to common stockholders: |
|
|
|
||||
Basic |
$ |
(0.52 |
) |
|
$ |
(0.73 |
) |
Diluted |
$ |
(0.52 |
) |
|
$ |
(0.73 |
) |
Shares used in computing GAAP net loss per share attributable to common stockholders: |
|
|
|
||||
Basic |
|
15,888,267 |
|
|
|
15,677,956 |
|
Diluted |
|
15,888,267 |
|
|
|
15,677,956 |
|
Shares used in computing Non-GAAP net loss per share attributable to common stockholders: |
|
|
|
||||
Basic |
|
15,888,267 |
|
|
|
15,677,956 |
|
Diluted |
|
15,888,267 |
|
|
|
15,677,956 |
|
CEPTON, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (In thousands, except share data) (unaudited) |
|||||||
|
March 31,
|
|
December 31,
|
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
49,218 |
|
|
$ |
50,406 |
|
Short-term investments |
|
— |
|
|
|
5,969 |
|
Accounts receivable, net of allowance for credit losses of |
|
5,078 |
|
|
|
3,625 |
|
Inventories |
|
1,861 |
|
|
|
2,396 |
|
Prepaid expenses and other current assets |
|
2,236 |
|
|
|
1,253 |
|
Total current assets |
|
58,393 |
|
|
|
63,649 |
|
Property and equipment, net |
|
1,346 |
|
|
|
1,450 |
|
Restricted cash |
|
1,283 |
|
|
|
1,283 |
|
Other assets |
|
9,614 |
|
|
|
10,067 |
|
Total assets |
$ |
70,636 |
|
|
$ |
76,449 |
|
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
1,668 |
|
|
$ |
1,128 |
|
Operating lease liabilities, current |
|
1,953 |
|
|
|
1,875 |
|
Accrued expenses and other current liabilities |
|
4,136 |
|
|
|
4,066 |
|
Total current liabilities |
|
7,757 |
|
|
|
7,069 |
|
Warrant liability |
|
50 |
|
|
|
43 |
|
Earnout liability |
|
93 |
|
|
|
93 |
|
Operating lease liabilities, non-current |
|
8,186 |
|
|
|
8,720 |
|
Total liabilities |
|
16,086 |
|
|
|
15,925 |
|
Commitments and contingencies (Note 17) |
|
|
|
||||
Convertible preferred stock: |
|
|
|
||||
Convertible preferred stock – Par value |
|
98,891 |
|
|
|
98,891 |
|
Stockholders’ equity (deficit): |
|
|
|
||||
Common stock – Par value |
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
97,446 |
|
|
|
96,583 |
|
Accumulated other comprehensive loss |
|
(349 |
) |
|
|
(345 |
) |
Accumulated deficit |
|
(141,438 |
) |
|
|
(134,605 |
) |
Total stockholders’ equity (deficit) |
|
(44,341 |
) |
|
|
(38,367 |
) |
Total liabilities, convertible preferred stock and stockholders' equity (deficit) |
$ |
70,636 |
|
|
$ |
76,449 |
|
CEPTON, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Operations (In thousands, except share and per share data) (unaudited) |
|||||||
|
Three Months Ended
|
||||||
|
|
2024 |
|
|
|
2023 |
|
Lidar sensor and prototype revenue |
$ |
1,141 |
|
|
$ |
1,240 |
|
Development revenue |
|
805 |
|
|
|
245 |
|
Total revenue |
$ |
1,946 |
|
|
$ |
1,485 |
|
|
|
|
|
||||
Lidar sensor and prototype cost of revenue |
|
1,211 |
|
|
|
1,448 |
|
Development cost of revenue |
|
311 |
|
|
|
111 |
|
Total cost of revenue |
|
1,522 |
|
|
|
1,559 |
|
Gross profit (loss) |
|
424 |
|
|
|
(74 |
) |
|
|
|
|
||||
Operating expenses: |
|
|
|
||||
Research and development |
|
5,654 |
|
|
|
7,238 |
|
Selling, general and administrative |
|
6,264 |
|
|
|
6,731 |
|
Total operating expenses |
|
11,918 |
|
|
|
13,969 |
|
Operating loss |
|
(11,494 |
) |
|
|
(14,043 |
) |
Other income (expense): |
|
|
|
||||
Gain on change in fair value of earnout liability |
|
— |
|
|
|
762 |
|
(Loss) gain on change in fair value of warrant liability |
|
(7 |
) |
|
|
94 |
|
Foreign currency transaction loss, net |
|
(1 |
) |
|
|
(750 |
) |
Loss on extinguishment of debt |
|
— |
|
|
|
(1,123 |
) |
Other income, net |
|
4,022 |
|
|
|
19 |
|
Interest income, net |
|
654 |
|
|
|
299 |
|
Loss before income taxes |
|
(6,826 |
) |
|
|
(14,742 |
) |
Provision for income taxes |
|
(7 |
) |
|
|
— |
|
|
|
|
|
||||
Net loss |
$ |
(6,833 |
) |
|
$ |
(14,742 |
) |
|
|
|
|
||||
Net loss per share, basic |
$ |
(0.43 |
) |
|
$ |
(0.94 |
) |
Net loss per share, diluted |
$ |
(0.43 |
) |
|
$ |
(0.94 |
) |
Weighted-average common shares, basic |
|
15,888,267 |
|
|
|
15,677,956 |
|
Weighted-average common shares, diluted |
|
15,888,267 |
|
|
|
15,677,956 |
|
CEPTON, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (In thousands) (unaudited) |
|||||||
|
Three Months Ended
|
||||||
|
|
2024 |
|
|
|
2023 |
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
||||
Net loss |
$ |
(6,833 |
) |
|
$ |
(14,742 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
||||
Depreciation and amortization |
|
103 |
|
|
|
110 |
|
Stock-based compensation |
|
926 |
|
|
|
2,289 |
|
Amortization of right-of-use asset |
|
416 |
|
|
|
382 |
|
Amortization (accretion), other |
|
(25 |
) |
|
|
107 |
|
Gain on change in fair value of earnout liability |
|
— |
|
|
|
(762 |
) |
Loss (gain) on change in fair value of warrant liability |
|
7 |
|
|
|
(94 |
) |
Foreign currency transaction loss, net |
|
1 |
|
|
|
750 |
|
Loss from extinguishment of debt |
|
— |
|
|
|
1,123 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable, net |
|
(1,453 |
) |
|
|
260 |
|
Inventories |
|
534 |
|
|
|
(453 |
) |
Prepaid expenses and other current assets |
|
(983 |
) |
|
|
513 |
|
Other long-term assets |
|
37 |
|
|
|
181 |
|
Accounts payable |
|
541 |
|
|
|
(680 |
) |
Accrued expenses and other current liabilities |
|
71 |
|
|
|
502 |
|
Operating lease liabilities |
|
(457 |
) |
|
|
89 |
|
Net cash used in operating activities |
|
(7,115 |
) |
|
|
(10,425 |
) |
|
|
|
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
||||
Purchases of property and equipment |
|
— |
|
|
|
(556 |
) |
Purchases of short-term investments |
|
— |
|
|
|
(37,806 |
) |
Proceeds from maturities of short-term investments |
|
6,000 |
|
|
|
3,700 |
|
Net cash provided by (used in) investing activities |
|
6,000 |
|
|
|
(34,662 |
) |
|
|
|
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
||||
Proceeds from convertible preferred stock, net of transaction costs |
|
— |
|
|
|
99,884 |
|
Repayment of Koito secured term loan |
|
— |
|
|
|
(45,220 |
) |
Payments of employee taxes related to vested restricted stock units |
|
(63 |
) |
|
|
— |
|
Proceeds from issuance of common stock options |
|
— |
|
|
|
8 |
|
Net cash (used in) provided by financing activities |
|
(63 |
) |
|
|
54,672 |
|
|
|
|
|
||||
Effect of exchange rate changes on cash |
|
(10 |
) |
|
|
434 |
|
|
|
|
|
||||
Net (decrease) increase in cash, cash equivalents and restricted cash |
|
(1,188 |
) |
|
|
10,019 |
|
Cash, cash equivalents and restricted cash, beginning of period |
|
51,689 |
|
|
|
34,518 |
|
Cash, cash equivalents and restricted cash, end of period |
$ |
50,501 |
|
|
$ |
44,537 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240513905554/en/
Cepton, Inc.
Investors: InvestorRelations@cepton.com
Media: Faithy Li, media@cepton.com
Source: Cepton, Inc.
FAQ
What was Cepton's revenue for Q1 2024?
What was Cepton's GAAP net loss for Q1 2024?
What is Cepton's full-year revenue guidance for 2024?
What collaboration or contracts did Cepton secure in Q1 2024?
What was Cepton's adjusted EBITDA for Q1 2024?
What gain did Cepton record from a canceled OEM project?
What were Cepton's operating expense expectations for the full year 2024?
