Cepton, Inc. Reports Third Quarter 2024 Results
“As we enter the fourth and final quarter of 2024, we are making significant strides in the commercialization of our lidar technology,” said Jun Pei, Cepton’s Co-Founder and CEO. “With an RFQ with a Top 10 global automotive OEM for our long-range lidar in its final stages and a growing pipeline of opportunities, we are well-positioned to further strengthen our leadership in the automotive lidar market. Additionally, the recently announced acquisition by Koito underscores our shared vision for long-term growth and innovation. As we work toward completing this transaction, our focus remains on executing our strategy, deepening OEM partnerships, and driving the adoption of our advanced lidar solutions across key industries.”
Business Highlights
-
On July 29, 2024, Cepton signed an Agreement and Plan of Merger providing for the acquisition by KOITO MANUFACTURING CO., LTD. (“Koito”) (TSE: 7276) of all of the outstanding common stock of Cepton not owned by Koito for
per share in an all-cash transaction, other than those shares expected to be contributed to a wholly owned subsidiary of Koito by certain executives of Cepton. The proposed transaction with Koito is expected to close in the first quarter of 2025, subject to approval of our stockholders representing at least a majority of the outstanding shares, regulatory approvals, and other customary closing conditions.$3.17 - Continued execution for the final phase of long-range lidar RFQ with a Top 10 global automotive OEM.
- Continued execution for our OEM awarded business for near-range lidar development.
- Achieved next major milestone for near-range lidar industrial vehicles business.
Financial Highlights
Revenue
-
Third quarter 2024 total revenue was
, compared to$0.5 million in the prior year comparable quarter, a decrease of$3.8 million .$3.3 million
Net Loss, Non-GAAP Net Loss, and Per Share Data
-
Third quarter 2024 GAAP net loss was
. Net loss attributable to common stockholders was$10.6 million , or$11.8 million per share, basic and diluted.$(0.73) -
Third quarter 2024 non-GAAP net loss was
. Non-GAAP net loss attributable to common stockholders was$7.5 million , or$8.6 million per share, basic and diluted.$(0.53)
Adjusted EBITDA
-
Third quarter 2024 adjusted EBITDA was
.$(8.0) million
No Conference Call This Quarter
Due to the previously announced entry into the Agreement and Plan of Merger with Koito on July 29, 2024 and the pendency of the proposed transaction, which remains subject to stockholder approval and the satisfaction of or (to the extent permitted by law) waiver of other specified closing conditions, Cepton will not host an earnings conference call this quarter.
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 regarding the Company’s expectations, plans and opinions regarding the proposed transaction with Koito, statements, estimates and forecasts of financial and performance metrics, projections of market opportunity and market share, statements regarding 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) Cepton’s proposed transaction with Koito, including its ability to close such proposed transaction in a timely manner or at all; (2) the conditions affecting the markets in which Cepton operates; (3) the success of Cepton’s strategic relationships, including with Koito, which is not exclusive; (4) fluctuations in sales by Cepton’s major customers; (5) fluctuations in capital spending in the automotive and smart infrastructure markets; (6) negative impact on the global economy and capital markets resulting from macroeconomic conditions such as inflation, 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
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net loss |
$ |
(10,642 |
) |
|
$ |
(11,294 |
) |
|
$ |
(17,294 |
) |
|
$ |
(40,226 |
) |
Stock-based compensation |
|
1,269 |
|
|
|
2,335 |
|
|
|
3,693 |
|
|
|
6,989 |
|
Gain from project cancellation cost recovery |
|
— |
|
|
|
— |
|
|
|
(4,000 |
) |
|
|
— |
|
Contingent loss |
|
349 |
|
|
|
— |
|
|
|
349 |
|
|
|
— |
|
Non-recurring transaction expenses |
|
1,563 |
|
|
|
— |
|
|
|
3,185 |
|
|
|
— |
|
Loss (gain) on sales of property and equipment |
|
1 |
|
|
|
— |
|
|
|
(59 |
) |
|
|
— |
|
Gain on change in fair value of earnout liability |
|
— |
|
|
|
(91 |
) |
|
|
(59 |
) |
|
|
(827 |
) |
Loss (gain) on change in fair value of warrant liability |
|
5 |
|
|
|
(169 |
) |
|
|
23 |
|
|
|
(299 |
) |
Foreign currency transaction loss, net |
|
— |
|
|
|
7 |
|
|
|
— |
|
|
|
757 |
|
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,123 |
|
Non-GAAP net loss |
$ |
(7,455 |
) |
|
$ |
(9,212 |
) |
|
$ |
(14,162 |
) |
|
$ |
(32,483 |
) |
Interest income, net |
|
(622 |
) |
|
|
(799 |
) |
|
|
(1,889 |
) |
|
|
(2,015 |
) |
(Benefit) provision for income taxes |
|
— |
|
|
|
— |
|
|
|
(14 |
) |
|
|
3 |
|
Depreciation and amortization |
|
98 |
|
|
|
135 |
|
|
|
302 |
|
|
|
370 |
|
Adjusted EBITDA |
$ |
(7,979 |
) |
|
$ |
(9,876 |
) |
|
$ |
(15,763 |
) |
|
$ |
(34,125 |
) |
|
|
|
|
|
|
|
|
||||||||
Net loss |
$ |
(10,642 |
) |
|
$ |
(11,294 |
) |
|
$ |
(17,294 |
) |
|
$ |
(40,226 |
) |
Less: cumulative preferred stock dividends |
|
(1,130 |
) |
|
|
(1,083 |
) |
|
|
(3,353 |
) |
|
|
(2,992 |
) |
Net loss attributable to common stockholders |
$ |
(11,772 |
) |
|
$ |
(12,377 |
) |
|
$ |
(20,647 |
) |
|
$ |
(43,218 |
) |
|
|
|
|
|
|
|
|
||||||||
Non-GAAP net loss |
$ |
(7,455 |
) |
|
$ |
(9,212 |
) |
|
$ |
(14,162 |
) |
|
$ |
(32,483 |
) |
Less: cumulative preferred stock dividends |
|
(1,130 |
) |
|
|
(1,083 |
) |
|
|
(3,353 |
) |
|
|
(2,992 |
) |
Non-GAAP net loss attributable to common stockholders |
$ |
(8,585 |
) |
|
$ |
(10,295 |
) |
|
$ |
(17,515 |
) |
|
$ |
(35,475 |
) |
|
|
|
|
|
|
|
|
||||||||
GAAP net loss per share attributable to common stockholders: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
(0.73 |
) |
|
$ |
(0.78 |
) |
|
$ |
(1.29 |
) |
|
$ |
(2.74 |
) |
Diluted |
$ |
(0.73 |
) |
|
$ |
(0.78 |
) |
|
$ |
(1.29 |
) |
|
$ |
(2.74 |
) |
Non-GAAP net loss per share attributable to common stockholders: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
(0.53 |
) |
|
$ |
(0.65 |
) |
|
$ |
(1.10 |
) |
|
$ |
(2.25 |
) |
Diluted |
$ |
(0.53 |
) |
|
$ |
(0.65 |
) |
|
$ |
(1.10 |
) |
|
$ |
(2.25 |
) |
Shares used in computing GAAP net loss per share attributable to common stockholders: |
|
|
|
|
|
|
|
||||||||
Basic |
|
16,047,213 |
|
|
|
15,834,152 |
|
|
|
15,971,448 |
|
|
|
15,750,586 |
|
Diluted |
|
16,047,213 |
|
|
|
15,834,152 |
|
|
|
15,971,448 |
|
|
|
15,750,586 |
|
Shares used in computing Non-GAAP net loss per share attributable to common stockholders: |
|
|
|
|
|
|
|
||||||||
Basic |
|
16,047,213 |
|
|
|
15,834,152 |
|
|
|
15,971,448 |
|
|
|
15,750,586 |
|
Diluted |
|
16,047,213 |
|
|
|
15,834,152 |
|
|
|
15,971,448 |
|
|
|
15,750,586 |
|
CEPTON, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (In thousands, except share data) (unaudited) |
|||||||
|
September 30,
|
|
December 31,
|
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
47,651 |
|
|
$ |
50,406 |
|
Short-term investments |
|
— |
|
|
|
5,969 |
|
Accounts receivable, net of allowance for credit losses of |
|
556 |
|
|
|
3,625 |
|
Inventories |
|
1,048 |
|
|
|
2,396 |
|
Prepaid expenses and other current assets |
|
3,060 |
|
|
|
1,253 |
|
Total current assets |
|
52,315 |
|
|
|
63,649 |
|
Property and equipment, net |
|
1,150 |
|
|
|
1,450 |
|
Restricted cash |
|
1,283 |
|
|
|
1,283 |
|
Other assets |
|
8,703 |
|
|
|
10,067 |
|
Total assets |
$ |
63,451 |
|
|
$ |
76,449 |
|
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
2,416 |
|
|
$ |
1,128 |
|
Operating lease liabilities, current |
|
2,141 |
|
|
|
1,875 |
|
Accrued expenses and other current liabilities |
|
4,914 |
|
|
|
4,066 |
|
Total current liabilities |
|
9,471 |
|
|
|
7,069 |
|
Warrant liability |
|
66 |
|
|
|
43 |
|
Earnout liability |
|
34 |
|
|
|
93 |
|
Operating lease liabilities, non-current |
|
7,063 |
|
|
|
8,720 |
|
Total liabilities |
|
16,634 |
|
|
|
15,925 |
|
Commitments and contingencies (Note 17) |
|
|
|
||||
Convertible preferred stock with a related party: |
|
|
|
||||
Convertible preferred stock – Par value |
|
98,891 |
|
|
|
98,891 |
|
Stockholders’ equity (deficit): |
|
|
|
||||
Common stock – Par value |
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
100,177 |
|
|
|
96,583 |
|
Accumulated other comprehensive loss |
|
(352 |
) |
|
|
(345 |
) |
Accumulated deficit |
|
(151,899 |
) |
|
|
(134,605 |
) |
Total stockholders’ equity (deficit) |
|
(52,074 |
) |
|
|
(38,367 |
) |
Total liabilities, convertible preferred stock and stockholders’ equity (deficit) |
$ |
63,451 |
|
|
$ |
76,449 |
|
CEPTON, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Operations (In thousands, except share and per share data) (unaudited) |
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Lidar sensor and prototype revenue |
$ |
466 |
|
|
$ |
3,802 |
|
|
$ |
1,981 |
|
|
$ |
7,813 |
|
Development revenue |
|
81 |
|
|
|
31 |
|
|
|
10,940 |
|
|
|
292 |
|
Total revenue |
|
547 |
|
|
|
3,833 |
|
|
|
12,921 |
|
|
|
8,105 |
|
|
|
|
|
|
|
|
|
||||||||
Lidar sensor and prototype cost of revenue |
|
600 |
|
|
|
3,339 |
|
|
|
2,788 |
|
|
|
7,135 |
|
Development cost of revenue |
|
29 |
|
|
|
— |
|
|
|
3,438 |
|
|
|
116 |
|
Total cost of revenue |
|
629 |
|
|
|
3,339 |
|
|
|
6,226 |
|
|
|
7,251 |
|
Gross (loss) profit |
|
(82 |
) |
|
|
494 |
|
|
|
6,695 |
|
|
|
854 |
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Research and development |
|
5,524 |
|
|
|
6,706 |
|
|
|
14,412 |
|
|
|
23,309 |
|
Selling, general and administrative |
|
5,332 |
|
|
|
6,136 |
|
|
|
15,305 |
|
|
|
19,052 |
|
Total operating expenses |
|
10,856 |
|
|
|
12,842 |
|
|
|
29,717 |
|
|
|
42,361 |
|
Operating loss |
|
(10,938 |
) |
|
|
(12,348 |
) |
|
|
(23,022 |
) |
|
|
(41,507 |
) |
Other income (expense): |
|
|
|
|
|
|
|
||||||||
Gain on change in fair value of earnout liability |
|
— |
|
|
|
91 |
|
|
|
59 |
|
|
|
827 |
|
(Loss) gain on change in fair value of warrant liability |
|
(5 |
) |
|
|
169 |
|
|
|
(23 |
) |
|
|
299 |
|
Other (expense) income, net |
|
(321 |
) |
|
|
2 |
|
|
|
3,789 |
|
|
|
23 |
|
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,123 |
) |
Foreign currency transaction loss, net |
|
— |
|
|
|
(7 |
) |
|
|
— |
|
|
|
(757 |
) |
Interest income, net |
|
622 |
|
|
|
799 |
|
|
|
1,889 |
|
|
|
2,015 |
|
Loss before income taxes |
|
(10,642 |
) |
|
|
(11,294 |
) |
|
|
(17,308 |
) |
|
|
(40,223 |
) |
Benefit (provision) for income taxes |
|
— |
|
|
|
— |
|
|
|
14 |
|
|
|
(3 |
) |
|
|
|
|
|
|
|
|
||||||||
Net loss |
$ |
(10,642 |
) |
|
$ |
(11,294 |
) |
|
$ |
(17,294 |
) |
|
$ |
(40,226 |
) |
Less: cumulative preferred stock dividends |
|
(1,130 |
) |
|
|
(1,083 |
) |
|
|
(3,353 |
) |
|
|
(2,992 |
) |
Net loss attributable to common stockholders |
$ |
(11,772 |
) |
|
$ |
(12,377 |
) |
|
$ |
(20,647 |
) |
|
$ |
(43,218 |
) |
|
|
|
|
|
|
|
|
||||||||
Net loss per share attributable to common stockholders, basic |
$ |
(0.73 |
) |
|
$ |
(0.78 |
) |
|
$ |
(1.29 |
) |
|
$ |
(2.74 |
) |
Net loss per share attributable to common stockholders, diluted |
$ |
(0.73 |
) |
|
$ |
(0.78 |
) |
|
$ |
(1.29 |
) |
|
$ |
(2.74 |
) |
Weighted-average common shares, basic |
|
16,047,213 |
|
|
|
15,834,152 |
|
|
|
15,971,448 |
|
|
|
15,750,586 |
|
Weighted-average common shares, diluted |
|
16,047,213 |
|
|
|
15,834,152 |
|
|
|
15,971,448 |
|
|
|
15,750,586 |
|
CEPTON, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (In thousands) (unaudited) |
|||||||
|
Nine Months Ended
|
||||||
|
|
2024 |
|
|
|
2023 |
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
||||
Net loss |
$ |
(17,294 |
) |
|
$ |
(40,226 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
||||
Depreciation and amortization |
|
302 |
|
|
|
370 |
|
Stock-based compensation |
|
3,693 |
|
|
|
6,989 |
|
Amortization of right-of-use asset |
|
1,253 |
|
|
|
1,177 |
|
Gain on sales of property and equipment |
|
(59 |
) |
|
|
— |
|
Accretion, other |
|
(25 |
) |
|
|
(682 |
) |
Gain on change in fair value of earnout liability |
|
(59 |
) |
|
|
(827 |
) |
Loss (gain) on change in fair value of warrant liability |
|
23 |
|
|
|
(299 |
) |
Foreign currency transaction loss, net |
|
— |
|
|
|
757 |
|
Loss from extinguishment of debt |
|
— |
|
|
|
1,123 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable, net |
|
3,068 |
|
|
|
(802 |
) |
Inventories |
|
1,348 |
|
|
|
(941 |
) |
Prepaid expenses and other current assets |
|
(1,806 |
) |
|
|
2,974 |
|
Other long-term assets |
|
111 |
|
|
|
202 |
|
Accounts payable |
|
1,288 |
|
|
|
(805 |
) |
Accrued expenses and other current liabilities |
|
848 |
|
|
|
1,144 |
|
Operating lease liabilities |
|
(1,391 |
) |
|
|
(680 |
) |
Net cash used in operating activities |
|
(8,700 |
) |
|
|
(30,526 |
) |
|
|
|
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
||||
Purchases of property and equipment |
|
(3 |
) |
|
|
(1,292 |
) |
Purchases of short-term investments |
|
— |
|
|
|
(37,806 |
) |
Proceeds from sales of property and equipment |
|
60 |
|
|
|
— |
|
Proceeds from maturities of short-term investments |
|
6,000 |
|
|
|
25,200 |
|
Net cash provided by (used in) investing activities |
|
6,057 |
|
|
|
(13,898 |
) |
|
|
|
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
||||
Proceeds from convertible preferred stock with a related party, net of transaction costs |
|
— |
|
|
|
99,884 |
|
Repayment of secured term loan from a related party |
|
— |
|
|
|
(45,220 |
) |
Proceeds from issuance of common stock options |
|
4 |
|
|
|
22 |
|
Payments of employee taxes related to vested restricted stock units |
|
(103 |
) |
|
|
(63 |
) |
Net cash (used in) provided by financing activities |
|
(99 |
) |
|
|
54,623 |
|
|
|
|
|
||||
Effect of exchange rate changes on cash |
|
(13 |
) |
|
|
426 |
|
|
|
|
|
||||
Net (decrease) increase in cash, cash equivalents and restricted cash |
|
(2,755 |
) |
|
|
10,625 |
|
Cash, cash equivalents and restricted cash, beginning of period |
|
51,689 |
|
|
|
34,518 |
|
Cash, cash equivalents and restricted cash, end of period |
$ |
48,934 |
|
|
$ |
45,143 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241107072328/en/
Cepton, Inc. Contacts
Investors: InvestorRelations@cepton.com
Media: Faithy Li, media@cepton.com
Source: Cepton, Inc.