Cepton, Inc. Reports Second Quarter 2023 Results
“We set new company records for shipment volumes across both automotive and smart infrastructure end markets during the second quarter,” said Jun Pei, Cepton’s Co-Founder and CEO. “Our strong execution capabilities while maintaining our commitment to quality and reliability will be key differentiating factors as our shipments continue to grow for the remainder of this year to meet our OEM customer needs.”
Business Highlights
Business
-
Record shipments of lidar units in both Automotive and Smart Infrastructure end markets
- Record shipment volume to automotive customers, expect shipment volume to more than double in each sequential quarter for the remainder of the year
- Continued fulfillment on multi-million dollar tolling contract; our largest contract for tolling use case
Series Production Execution
- On-track to fulfill orders to support OEM start of production at the end of this year
- Developed and deployed automated manufacturing equipment to fulfill series production order volumes
Automotive
- Accelerated interest from major consumer and commercial vehicle OEMs in lidar enabled ADAS systems to compete in the US market; new RFI received from an international top-ten OEM
- Completed multiple on-site technical reviews for existing RFI/RFQ activities across multiple top-ten OEM customers spanning multiple continents
Smart Infrastructure
- Received first of several production orders for lidar installations across multiple airports in the US
- Continued fulfillment for our largest tolling contract, in advanced discussions to expand projects to additional states and countries
Technology
- Completed engineering validation of point cloud processing ASIC (Komodo) and shipped first commercial units of Nova sensors incorporating Komodo to our lead OEM customer in autonomous ground vehicles
- Designed and developed automated testing equipment for mass production quality control
- Developed enhanced calibration equipment to enable scalability across multiple products, improve manufacturing efficiency and reduce manufacturing footprint
Financial Highlights
Revenue and Gross Margin
-
Second quarter 2023 total revenue was
$2.8 million 9% compared to the prior year comparable period and88% sequentially- Second quarter 2023 revenue growth driven by record shipment volumes and an increase in average selling prices due to changes in product mix
-
Second quarter 2023 gross margin achieved company record of
16%
-
Second quarter 2023 product revenue was
$2.8 million 92% compared to the prior year comparable period and123% sequentially -
Minimal development revenue in second quarter 2023, a decrease of
$1.1 million $0.2 million
Net Loss and Non-GAAP Net Loss
-
Second quarter 2023 GAAP net loss was
$14.2 million $(0.09) -
Second quarter 2023 non-GAAP net loss was
$11.8 million $(0.08)
Adjusted EBITDA
-
Second quarter 2023 adjusted EBITDA was
$(12.6) 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 August 21, 2023, and can be accessed by dialing 1-844-512-2921 (toll free) or 1-412-317-6671 (international) and entering the passcode 13739319. 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.
Cepton has been awarded a significant ADAS lidar series production award with Koito on the General Motors business. Cepton is also engaged with all Top 10 global OEMs.
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 regarding estimates and forecasts of financial and performance metrics, projections of market opportunity, future sensor sales numbers 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 the COVID-19 pandemic or other future public health crises, and the potential impact of geopolitical conflicts, such as the ongoing conflict 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) Income to Non-GAAP Net Loss and Non-GAAP Adjusted EBITDA |
||||||||||||||||
(In thousands, except share and per share data) |
||||||||||||||||
(unaudited) |
||||||||||||||||
|
|
|
|
|
||||||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net (loss) income |
$ |
(14,190 |
) |
|
$ |
843 |
|
|
$ |
(28,932 |
) |
|
$ |
42,042 |
|
|
Stock-based compensation |
|
2,365 |
|
|
|
2,239 |
|
|
|
4,654 |
|
|
|
3,586 |
|
|
Non-recurring transaction expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,709 |
|
|
Loss (gain) on change in fair value of earnout liability |
|
26 |
|
|
|
(15,630 |
) |
|
|
(736 |
) |
|
|
(72,308 |
) |
|
Gain on change in fair value of warrant liability |
|
(36 |
) |
|
|
(1,904 |
) |
|
|
(130 |
) |
|
|
(2,684 |
) |
|
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
1,123 |
|
|
|
— |
|
|
Foreign currency transaction loss, net |
|
— |
|
|
|
— |
|
|
|
750 |
|
|
|
— |
|
|
Non-GAAP net loss |
$ |
(11,835 |
) |
|
$ |
(14,452 |
) |
|
$ |
(23,271 |
) |
|
$ |
(26,655 |
) |
|
Interest (income) expense, net |
|
(917 |
) |
|
|
585 |
|
|
|
(1,216 |
) |
|
|
1,278 |
|
|
Provision for income taxes |
|
3 |
|
|
|
12 |
|
|
|
3 |
|
|
|
16 |
|
|
Depreciation and amortization |
|
125 |
|
|
|
79 |
|
|
|
235 |
|
|
|
147 |
|
|
Adjusted EBITDA |
$ |
(12,624 |
) |
|
$ |
(13,776 |
) |
|
$ |
(24,249 |
) |
|
$ |
(25,214 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
GAAP net (loss) income per share attributable to common stockholders: |
|
|
|
|
|
|
|
|||||||||
Basic |
$ |
(0.09 |
) |
|
$ |
0.01 |
|
|
$ |
(0.18 |
) |
|
$ |
0.31 |
|
|
Diluted |
$ |
(0.09 |
) |
|
$ |
0.01 |
|
|
$ |
(0.18 |
) |
|
$ |
0.29 |
|
|
Non-GAAP net loss per share attributable to common stockholders: |
|
|
|
|
|
|
|
|||||||||
Basic |
$ |
(0.08 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.15 |
) |
|
$ |
(0.20 |
) |
|
Diluted |
$ |
(0.08 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.15 |
) |
|
$ |
(0.20 |
) |
|
Shares used in computing GAAP net (loss) income per share attributable to common stockholders: |
|
|
|
|
|
|
|
|||||||||
Basic |
|
157,379,175 |
|
|
|
154,108,677 |
|
|
|
157,081,027 |
|
|
|
135,160,187 |
|
|
Diluted |
|
157,379,175 |
|
|
|
161,831,284 |
|
|
|
157,081,027 |
|
|
|
145,187,227 |
|
|
Shares used in computing Non-GAAP net loss per share attributable to common stockholders: |
|
|
|
|
|
|
|
|||||||||
Basic |
|
157,379,175 |
|
|
|
154,108,677 |
|
|
|
157,081,027 |
|
|
|
135,160,187 |
|
|
Diluted |
|
157,379,175 |
|
|
|
154,108,677 |
|
|
|
157,081,027 |
|
|
|
135,160,187 |
|
|
CEPTON, INC. AND SUBSIDIARIES |
||||||||
Condensed Consolidated Balance Sheets |
||||||||
(In thousands, except share data) |
||||||||
(unaudited) |
||||||||
|
|
|
|
|
||||
|
|
June 30,
|
|
December 31,
|
||||
ASSETS |
|
|
|
|||||
Current assets: |
|
|
|
|||||
Cash and cash equivalents |
$ |
32,605 |
|
|
$ |
31,953 |
|
|
Short-term investments |
|
37,036 |
|
|
|
3,703 |
|
|
Accounts receivable, net of allowance for credit losses of |
|
2,092 |
|
|
|
1,301 |
|
|
Inventories |
|
4,188 |
|
|
|
2,985 |
|
|
Prepaid expenses and other current assets |
|
3,327 |
|
|
|
6,272 |
|
|
Total current assets |
|
79,248 |
|
|
|
46,214 |
|
|
Property and equipment, net |
|
2,028 |
|
|
|
982 |
|
|
Restricted cash |
|
1,924 |
|
|
|
2,565 |
|
|
Other assets |
|
10,891 |
|
|
|
555 |
|
|
Total assets |
$ |
94,091 |
|
|
$ |
50,316 |
|
|
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) |
|
|
|
|||||
Current liabilities: |
|
|
|
|||||
Accounts payable |
$ |
2,942 |
|
|
$ |
1,979 |
|
|
Operating lease liabilities, current |
|
1,697 |
|
|
|
211 |
|
|
Accrued expenses and other current liabilities |
|
3,056 |
|
|
|
2,265 |
|
|
Short-term debt |
|
— |
|
|
|
42,587 |
|
|
Total current liabilities |
|
7,695 |
|
|
|
47,042 |
|
|
Warrant liability |
|
310 |
|
|
|
440 |
|
|
Earnout liability |
|
184 |
|
|
|
920 |
|
|
Operating lease liabilities, non-current |
|
9,696 |
|
|
|
281 |
|
|
Total liabilities |
|
17,885 |
|
|
|
48,683 |
|
|
Commitments and contingencies (Note 17) |
|
|
|
|||||
Convertible preferred stock: |
|
|
|
|||||
Convertible preferred stock – Par value |
|
98,891 |
|
|
|
— |
|
|
Stockholders’ equity (deficit): |
|
|
|
|||||
Common stock – Par value |
|
2 |
|
|
|
2 |
|
|
Additional paid-in capital |
|
92,648 |
|
|
|
88,056 |
|
|
Accumulated other comprehensive loss |
|
(344 |
) |
|
|
(366 |
) |
|
Accumulated deficit |
|
(114,991 |
) |
|
|
(86,059 |
) |
|
Total stockholders’ equity (deficit) |
|
(22,685 |
) |
|
|
1,633 |
|
|
Total liabilities, convertible preferred stock and stockholders’ equity (deficit) |
$ |
94,091 |
|
|
$ |
50,316 |
|
|
CEPTON, INC. AND SUBSIDIARIES |
||||||||||||||||
Condensed Consolidated Statements of Operations |
||||||||||||||||
(In thousands, except share and per share data) |
||||||||||||||||
(unaudited) |
||||||||||||||||
|
|
|
|
|
||||||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Lidar sensor and prototype revenue |
$ |
2,771 |
|
|
$ |
1,441 |
|
|
$ |
4,011 |
|
|
$ |
2,863 |
|
|
Development revenue |
|
16 |
|
|
|
1,118 |
|
|
|
261 |
|
|
|
1,181 |
|
|
Total revenue |
$ |
2,787 |
|
|
$ |
2,559 |
|
|
$ |
4,272 |
|
|
$ |
4,044 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Lidar sensor and prototype cost of revenue |
|
2,348 |
|
|
|
2,520 |
|
|
|
3,796 |
|
|
|
3,736 |
|
|
Development cost of revenue |
|
5 |
|
|
|
562 |
|
|
|
116 |
|
|
|
598 |
|
|
Total cost of revenue |
$ |
2,353 |
|
|
$ |
3,082 |
|
|
$ |
3,912 |
|
|
$ |
4,334 |
|
|
Gross profit (loss) |
|
434 |
|
|
|
(523 |
) |
|
|
360 |
|
|
|
(290 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Operating expenses: |
|
|
|
|
|
|
|
|||||||||
Research and development |
|
9,365 |
|
|
|
8,386 |
|
|
|
16,603 |
|
|
|
16,140 |
|
|
Selling, general and administrative |
|
6,185 |
|
|
|
7,189 |
|
|
|
12,916 |
|
|
|
15,232 |
|
|
Total operating expenses |
|
15,550 |
|
|
|
15,575 |
|
|
|
29,519 |
|
|
|
31,372 |
|
|
Operating loss |
|
(15,116 |
) |
|
|
(16,098 |
) |
|
|
(29,159 |
) |
|
|
(31,662 |
) |
|
Other income (expense): |
|
|
|
|
|
|
|
|||||||||
(Loss) gain on change in fair value of earnout liability |
|
(26 |
) |
|
|
15,630 |
|
|
|
736 |
|
|
|
72,308 |
|
|
Gain on change in fair value of warrant liability |
|
36 |
|
|
|
1,904 |
|
|
|
130 |
|
|
|
2,684 |
|
|
Foreign currency transaction loss, net |
|
— |
|
|
|
— |
|
|
|
(750 |
) |
|
|
— |
|
|
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
(1,123 |
) |
|
|
— |
|
|
Other income, net |
|
2 |
|
|
|
4 |
|
|
|
21 |
|
|
|
6 |
|
|
Interest income (expense), net |
|
917 |
|
|
|
(585 |
) |
|
|
1,216 |
|
|
|
(1,278 |
) |
|
(Loss) income before income taxes |
|
(14,187 |
) |
|
|
855 |
|
|
|
(28,929 |
) |
|
|
42,058 |
|
|
Provision for income taxes |
|
(3 |
) |
|
|
(12 |
) |
|
|
(3 |
) |
|
|
(16 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Net (loss) income |
$ |
(14,190 |
) |
|
$ |
843 |
|
|
$ |
(28,932 |
) |
|
$ |
42,042 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Net (loss) income per share, basic |
$ |
(0.09 |
) |
|
$ |
0.01 |
|
|
$ |
(0.18 |
) |
|
$ |
0.31 |
|
|
Net (loss) income per share, diluted |
$ |
(0.09 |
) |
|
$ |
0.01 |
|
|
$ |
(0.18 |
) |
|
$ |
0.29 |
|
|
Weighted-average common shares, basic |
|
157,379,175 |
|
|
|
154,108,677 |
|
|
|
157,081,027 |
|
|
|
135,160,187 |
|
|
Weighted-average common shares, diluted |
|
157,379,175 |
|
|
|
161,831,284 |
|
|
|
157,081,027 |
|
|
|
145,187,227 |
|
|
CEPTON, INC. AND SUBSIDIARIES |
||||||||
Condensed Consolidated Statements of Cash Flows |
||||||||
(In thousands) |
||||||||
(unaudited) |
||||||||
|
|
|
||||||
|
|
Six Months Ended
|
||||||
|
|
2023 |
|
2022 |
||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|||||
Net (loss) income |
$ |
(28,932 |
) |
|
$ |
42,042 |
|
|
Adjustments to reconcile net (loss) income to net cash used in operating activities: |
|
|
|
|||||
Depreciation and amortization |
|
235 |
|
|
|
147 |
|
|
Stock-based compensation |
|
4,654 |
|
|
|
3,586 |
|
|
Amortization of right-of-use asset |
|
773 |
|
|
|
642 |
|
|
Amortization (accretion), other |
|
(373 |
) |
|
|
800 |
|
|
Gain on change in fair value of earnout liability |
|
(736 |
) |
|
|
(72,308 |
) |
|
Gain on change in fair value of warrant liability |
|
(130 |
) |
|
|
(2,684 |
) |
|
Foreign currency transaction loss, net |
|
750 |
|
|
|
— |
|
|
Loss from extinguishment of debt |
|
1,123 |
|
|
|
— |
|
|
Changes in operating assets and liabilities: |
|
|
|
|||||
Accounts receivable, net |
|
(791 |
) |
|
|
(1,176 |
) |
|
Inventories |
|
(1,216 |
) |
|
|
(466 |
) |
|
Prepaid expenses and other current assets |
|
1,958 |
|
|
|
(670 |
) |
|
Other long-term assets |
|
202 |
|
|
|
(1,406 |
) |
|
Accounts payable |
|
741 |
|
|
|
(178 |
) |
|
Accrued expenses and other current liabilities |
|
791 |
|
|
|
(148 |
) |
|
Operating lease liabilities |
|
(289 |
) |
|
|
(753 |
) |
|
Other long-term liabilities |
|
— |
|
|
|
298 |
|
|
Net cash used in operating activities |
|
(21,240 |
) |
|
|
(32,274 |
) |
|
|
|
|
|
|||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|||||
Purchases of property and equipment |
|
(1,186 |
) |
|
|
(567 |
) |
|
Purchases of short-term investments |
|
(37,806 |
) |
|
|
(32,368 |
) |
|
Proceeds from sales of short-term investments |
|
— |
|
|
|
5,902 |
|
|
Proceeds from maturities of short-term investments |
|
5,200 |
|
|
|
2,773 |
|
|
Net cash used in investing activities |
|
(33,792 |
) |
|
|
(24,260 |
) |
|
|
|
|
|
|||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|||||
Proceeds from convertible preferred stock, net of transaction costs |
|
99,884 |
|
|
|
— |
|
|
Repayment of Koito secured term loan |
|
(45,220 |
) |
|
|
— |
|
|
Proceeds from Business Combination and private offering |
|
— |
|
|
|
76,107 |
|
|
Payments of Business Combination and private offering transaction costs |
|
— |
|
|
|
(28,897 |
) |
|
Proceeds from issuance of debt and warrants, net of debt discount |
|
— |
|
|
|
9,724 |
|
|
Proceeds from issuance of common stock options |
|
13 |
|
|
|
447 |
|
|
Payments of employee taxes related to vested restricted stock units |
|
(63 |
) |
|
|
— |
|
|
Issuance of common stock |
|
— |
|
|
|
50 |
|
|
Net cash provided by financing activities |
|
54,614 |
|
|
|
57,431 |
|
|
|
|
|
|
|||||
Effect of exchange rate changes on cash |
|
429 |
|
|
|
(13 |
) |
|
|
|
|
|
|||||
Net increase in cash, cash equivalents and restricted cash |
|
11 |
|
|
|
884 |
|
|
Cash, cash equivalents and restricted cash, beginning of period |
|
34,518 |
|
|
|
3,654 |
|
|
Cash, cash equivalents and restricted cash, end of period |
$ |
34,529 |
|
|
$ |
4,538 |
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230807250115/en/
Cepton, Inc. Contacts
Investors: InvestorRelations@cepton.com
Media: Faithy Li, media@cepton.com
Source: Cepton, Inc.
