Ouster Achieves 2022 Guidance, Reporting 22% Full Year Revenue Growth
Ouster reported $41 million in revenue for 2022, achieving a 27% gross margin despite a Q4 revenue decline of 8% year-over-year to $11 million. The company recorded a net loss of $42 million in Q4, up from $28 million in 2021, while full-year losses reached $139 million, up from $94 million. In 2022, Ouster secured $70 million in bookings and shipped over 8,650 sensors. Following its merger with Velodyne in February 2023, Ouster anticipates achieving cost synergies of $75 million within nine months. The company plans to generate $15 million to $17 million in revenue for Q1 2023.
- Achieved $70 million in bookings in 2022.
- Shipped a record of over 8,650 sensors for revenue in 2022.
- Successfully completed the merger with Velodyne, expected to create $75 million in annualized cost synergies.
- Net loss increased to $139 million in 2022 from $94 million in 2021.
- Fourth quarter revenue declined 8% year-over-year.
- Gross margins decreased to 17% in Q4 2022 from 30% in Q4 2021.
Secured company record
Shipped new REV7 sensors with double the range to 29 customers in the fourth quarter 2022
Completed merger of equals with Velodyne in
Fourth Quarter 2022 Highlights1
-
in revenue, down$11 million 8% year over year. -
17% gross margins, compared to30% in fourth quarter 2021. -
Shipped a record of over 2,950 sensors for revenue in the fourth quarter, up
23% year over year. -
Net loss increased to
in the fourth quarter of 2022, compared to$42 million in the fourth quarter of 2021.$28 million -
Adjusted EBITDA2 loss decreased to
, compared to a loss of$23 million in the fourth quarter of 2021.$24 million
Full Year 2022 Financial Highlights1
-
Achieved 2022 guidance with
in revenue and$41 million 27% gross margins. -
Booked
in business with new and existing customers in 2022.$70 million - Shipped over 8,650 sensors for revenue in 2022, totaling over 18,500 sensors shipped to date.
-
Net loss increased to
in 2022, compared to$139 million in 2021.$94 million -
Adjusted EBITDA1 loss of
in 2022, compared to a loss of$93 million 3 in 2021.$67 million
Ouster’s fourth quarter revenue was driven primarily by growth in the industrial and robotics verticals, which accounted for
Lower fourth quarter gross margins were primarily driven by some large unit volume sales to certain customers with lower average selling prices, as well as higher expenses associated with the manufacturing transition to the REV7 sensor platform. However, Ouster expects to deliver higher margins over time as it completes the Velodyne integration and increases shipments of the REV7 sensors.
_____________________
1 Financial highlights only reference Ouster standalone financials results.
2 Adjusted EBITDA loss is a non-GAAP financial measure. See Non-GAAP Financial Measures for additional information and a reconciliation to Net loss, the most directly comparable financial measure calculated in accordance with
3 Prior periods have been adjusted to conform to current year presentation.
Ouster achieved its 2022 revised guidance targets, delivering
Business Updates
Merger: Ouster completed the merger with Velodyne on
Execution on Product Roadmap: Ouster continued to execute on its product roadmap, dominated by the
“Ouster made huge strides throughout 2022, from the release of our first A-samples for the solid-state DF series to the launch of our REV7 OS sensors, making us more competitive across the board. We also built our first subscription software, Ouster Gemini, for smart infrastructure applications, which will expand the opportunities for digital lidar,” said Ouster CEO
First Quarter 2023 Outlook
For the first quarter 2023, Ouster expects to achieve
_____________________
4 Excluding stock-based compensation expenses.
5 Excludes revenues from Velodyne products prior to the merger on
Conference Call Information
Ouster will host a conference call and live webcast for analysts and investors at
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
About Ouster
Ouster (NYSE: OUST) is a leading global provider of high-resolution scanning and solid-state digital lidar sensors, Velodyne Lidar sensors, and software solutions for the automotive, industrial, robotics, and smart infrastructure industries. Ouster is on a mission to build a safer and more sustainable future by offering affordable, high-performance sensors that drive mass adoption across a wide variety of applications. With a global team and high-volume manufacturing, Ouster supports over 850 customers in approximately 50 countries. Ouster is headquartered in
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are based upon current plans, estimates and expectations of management that are subject to various risks and uncertainties that could cause actual results to differ materially from such statements. The inclusion of forward-looking statements should not be regarded as a representation that such plans, estimates and expectations will be achieved. Words such as “anticipate,” “expect,” “project,” “intend,” “believe,” “may,” “will,” “should,” “plan,” “could,” “may,” “continue,” “target,” “contemplate,” “estimate,” “forecast,” “guidance,” “predict,” “possible,” “potential,” “pursue,” “likely,” and the negative of these terms and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. All statements, other than historical facts, including statements regarding Ouster’s ability to meet its revenue goals and guidance; the anticipated benefits of and costs associated with the Velodyne merger; the expectations surrounding the Velodyne merger and its ability to grow the Company’s sales and bolster the Company’s financial position; its expected contractual obligations and capital expenditures; the capabilities of its products; anticipated new product launches; its future results of operations and financial position; industry and business trends; its business strategy, plans, strategic partnerships, market growth and its objectives for future operations; and its strategic market position as it relates to its competitors within the industry constitute forward-looking statements. 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, risks related to Ouster’s limited operating history and history of losses; the negotiating power and product standards of its customers; fluctuations in its operating results; its ability to successfully integrate its business with Velodyne and achieve the anticipated benefits of the Velodyne merger; supply chain constraints and challenges; cancellation or postponement of contracts or unsuccessful implementations; the ability of its lidar technology roadmap and new software solutions to catalyze growth; the adoption of its products and the growth of the lidar market generally; Ouster’s 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 Ouster operates; selection of Ouster’s products for inclusion in target markets; Ouster’s future capital needs and ability to secure additional capital on favorable terms or at all; its ability to use tax attributes; Ouster’s dependence on key third party suppliers, in particular Benchmark Electronics, Inc.,
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
|
|||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
(unaudited) |
|||||||
(in thousands, except share and per share data) |
|||||||
|
|
||||||
|
|
2022 |
|
|
|
2021 |
|
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ |
122,932 |
|
$ |
182,644 |
|
|
Restricted cash, current |
|
257 |
|
|
977 |
|
|
Accounts receivable, net |
|
11,233 |
|
|
10,723 |
|
|
Inventory |
|
19,533 |
|
|
7,448 |
|
|
Prepaid expenses and other current assets |
|
8,543 |
|
|
5,566 |
|
|
Total current assets |
|
162,498 |
|
|
207,358 |
|
|
Property and equipment, net |
|
9,695 |
|
|
10,054 |
|
|
Operating lease, right-of-use assets |
|
12,997 |
|
|
15,156 |
|
|
|
51,152 |
|
|
51,076 |
|
||
Intangible assets, net |
|
18,165 |
|
|
22,652 |
|
|
Restricted cash, non-current |
|
1,089 |
|
|
1,035 |
|
|
Other non-current assets |
|
541 |
|
|
371 |
|
|
Total assets | $ |
256,137 |
|
$ |
307,702 |
|
|
Liabilities, redeemable convertible preferred stock and stockholders’ equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ |
8,798 |
|
$ |
4,863 |
|
|
Accrued and other current liabilities |
|
17,473 |
|
|
14,173 |
|
|
Operating lease liability, current portion |
|
3,221 |
|
|
3,067 |
|
|
Total current liabilities |
|
29,492 |
|
|
22,103 |
|
|
Operating lease liability, long-term portion |
|
13,400 |
|
|
16,208 |
|
|
Warrant Liabilities |
|
180 |
|
|
7,626 |
|
|
Debt |
|
39,574 |
|
|
— |
|
|
Other non-current liabilities |
|
1,872 |
|
|
1,065 |
|
|
Total liabilities |
|
84,518 |
|
|
47,002 |
|
|
Commitments and contingencies | |||||||
Redeemable convertible preferred stock |
|
— |
|
|
— |
|
|
Stockholders’ equity: | |||||||
Common stock |
|
19 |
|
|
17 |
|
|
Additional paid-in capital |
|
613,665 |
|
|
564,045 |
|
|
Accumulated deficit |
|
(441,916 |
) |
|
(303,356 |
) |
|
Accumulated other comprehensive loss |
|
(149 |
) |
|
(6 |
) |
|
Total stockholders’ equity |
|
171,619 |
|
|
260,700 |
|
|
Total liabilities, redeemable convertible preferred stock, and stockholders’ equity | $ |
256,137 |
|
$ |
307,702 |
|
|
|||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS |
|||||||||||||||
(unaudited) |
|||||||||||||||
(in thousands, except share and per share data) |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Product revenue | $ |
10,938 |
|
$ |
11,852 |
|
$ |
41,029 |
|
$ |
33,578 |
|
|||
Cost of revenue |
|
9,097 |
|
|
8,280 |
|
|
30,099 |
|
|
24,492 |
|
|||
Gross profit |
|
1,841 |
|
|
3,572 |
|
|
10,930 |
|
|
9,086 |
|
|||
Operating expenses: | |||||||||||||||
Research and development |
|
15,306 |
|
|
15,003 |
|
|
64,317 |
|
|
34,579 |
|
|||
Sales and marketing |
|
7,639 |
|
|
7,481 |
|
|
30,833 |
|
|
22,258 |
|
|||
General and administrative |
|
20,897 |
|
|
15,782 |
|
|
61,203 |
|
|
51,959 |
|
|||
Total operating expenses |
|
43,842 |
|
|
38,266 |
|
|
156,353 |
|
|
108,796 |
|
|||
Loss from operations |
|
(42,001 |
) |
|
(34,694 |
) |
|
(145,423 |
) |
|
(99,710 |
) |
|||
Other (expense) income: | |||||||||||||||
Interest income |
|
977 |
|
|
166 |
|
|
2,208 |
|
|
471 |
|
|||
Interest expense |
|
(1,551 |
) |
|
— |
|
|
(2,694 |
) |
|
(504 |
) |
|||
Other income (expense), net |
|
583 |
|
|
3,390 |
|
|
7,654 |
|
|
2,968 |
|
|||
Total other income (expense), net |
|
9 |
|
|
3,556 |
|
|
7,168 |
|
|
2,935 |
|
|||
Loss before income taxes |
|
(41,992 |
) |
|
(31,138 |
) |
|
(138,255 |
) |
|
(96,775 |
) |
|||
Provision (benefit from) for income tax expense |
|
184 |
|
|
(2,794 |
) |
|
305 |
|
|
(2,794 |
) |
|||
Net loss | $ |
(42,176 |
) |
$ |
(28,344 |
) |
$ |
(138,560 |
) |
$ |
(93,981 |
) |
|||
Other comprehensive loss | |||||||||||||||
Foreign currency translation adjustments | $ |
32 |
|
$ |
(6 |
) |
$ |
(143 |
) |
$ |
(6 |
) |
|||
Total comprehensive loss | $ |
(42,144 |
) |
$ |
(28,350 |
) |
$ |
(138,703 |
) |
$ |
(93,987 |
) |
|||
Net loss per common share, basic and diluted | $ |
(0.23 |
) |
$ |
(0.17 |
) |
$ |
(0.78 |
) |
$ |
(0.70 |
) |
|||
Weighted-average shares used to compute basic and diluted net loss per share |
|
184,237,953 |
|
|
165,853,915 |
|
|
177,923,156 |
|
|
133,917,571 |
|
|
|||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(unaudited) |
|||||||
(in thousands) |
|||||||
|
|
|
|
||||
|
For the Years ended |
||||||
|
|
2022 |
|
|
|
2021 |
|
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net loss | $ |
(138,560 |
) |
$ |
(93,981 |
) |
|
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Depreciation and amortization |
|
9,456 |
|
|
5,477 |
|
|
Stock-based compensation |
|
33,321 |
|
|
25,363 |
|
|
Deferred income taxes |
|
— |
|
|
(2,477 |
) |
|
Change in right-of-use asset |
|
2,730 |
|
|
2,180 |
|
|
Interest expense |
|
799 |
|
|
36 |
|
|
Amortization of debt issuance costs and debt discount |
|
160 |
|
|
250 |
|
|
Change in fair value of warrant liabilities |
|
(7,446 |
) |
|
(2,947 |
) |
|
Inventory write down |
|
1,600 |
|
|
808 |
|
|
Provision for doubtful accounts |
|
346 |
|
|
379 |
|
|
Loss from disposal of property and equipment |
|
430 |
|
|
— |
|
|
Changes in operating assets and liabilities: | |||||||
Accounts receivable |
|
(856 |
) |
|
(8,007 |
) |
|
Inventory |
|
(13,684 |
) |
|
(3,440 |
) |
|
Prepaid expenses and other assets |
|
(3,148 |
) |
|
350 |
|
|
Accounts payable |
|
4,191 |
|
|
(2,442 |
) |
|
Accrued and other liabilities |
|
3,196 |
|
|
9,060 |
|
|
Operating lease liability |
|
(3,225 |
) |
|
(1,670 |
) |
|
Net cash used in operating activities |
|
(110,690 |
) |
|
(71,061 |
) |
|
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Proceeds from sale of property & equipment |
|
275 |
|
|
— |
|
|
Purchases of property and equipment |
|
(5,422 |
) |
|
(4,283 |
) |
|
Acquisition, net of cash acquired |
|
— |
|
|
(10,946 |
) |
|
Net cash used in investing activities |
|
(5,147 |
) |
|
(15,229 |
) |
|
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Proceeds from the merger and private offering |
|
— |
|
|
291,442 |
|
|
Payment of offering costs |
|
— |
|
|
(26,620 |
) |
|
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 |
|
(45 |
) |
|
(45 |
) |
|
Proceeds from exercise of stock options |
|
470 |
|
|
526 |
|
|
Proceeds from ESPP purchase |
|
378 |
|
|
— |
|
|
Proceeds from exercise of warrants |
|
— |
|
|
1 |
|
|
Proceeds from issuance of redeemable convertible preferred stock, net off issuance cost of |
|
— |
|
|
— |
|
|
Proceeds from borrowings, net of debt discount and issuance costs |
|
39,077 |
|
|
— |
|
|
Proceeds from the issuance of common stock under at-the-market offering, net of commissions and fees |
|
16,322 |
|
|
— |
|
|
At-the-market offering costs for the issuance of common stock |
|
(541 |
) |
|
— |
|
|
Taxes paid related to net share settlement of restricted stock units |
|
(59 |
) |
|
— |
|
|
Net cash provided by financing activities |
|
55,602 |
|
|
258,304 |
|
|
Effect of exchange rates on cash and cash equivalents |
|
(143 |
) |
|
— |
|
|
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
(60,378 |
) |
|
172,014 |
|
|
Cash, cash equivalents and restricted cash at beginning of year |
|
184,656 |
|
|
12,642 |
|
|
Cash, cash equivalents and restricted cash at end of year | $ |
124,278 |
|
$ |
184,656 |
|
|
|||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES |
|||||||||||||||
(unaudited) |
|||||||||||||||
(in thousands) |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
GAAP net loss | $ |
(42,176 |
) |
$ |
(28,344 |
) |
$ |
(138,560 |
) |
$ |
(93,981 |
) |
|||
Interest expense (income), net |
|
574 |
|
|
(166 |
) |
|
486 |
|
|
33 |
|
|||
Other (income), net |
|
(583 |
) |
|
(3,390 |
) |
|
(7,654 |
) |
|
(2,968 |
) |
|||
Stock-based compensation(1) |
|
7,997 |
|
|
6,806 |
|
|
33,321 |
|
|
25,363 |
|
|||
Provision for income tax expense |
|
184 |
|
|
(2,794 |
) |
|
305 |
|
|
(2,794 |
) |
|||
Depreciation and amortization expense(2) |
|
2,386 |
|
|
2,049 |
|
|
9,456 |
|
|
5,477 |
|
|||
Litigation expenses(3) |
|
1,484 |
|
|
85 |
|
|
3,200 |
|
|
585 |
|
|||
Non-recurring acquisition expense(4) |
|
6,950 |
|
|
1,535 |
|
|
6,950 |
|
|
1,535 |
|
|||
Adjusted EBITDA | $ |
(23,184 |
) |
$ |
(24,219 |
) |
$ |
(92,496 |
) |
$ |
(66,750 |
) |
(1)Includes stock-based compensation expense as follows: |
Three Months Ended |
|
Year Ended |
|||||||||||||
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
||
Cost of revenue | $ |
213 |
$ |
180 |
$ |
783 |
$ |
637 |
|||||||
Research and development |
|
3,363 |
|
2,935 |
|
14,611 |
|
7,240 |
|||||||
Sales and marketing |
|
1,789 |
|
1,122 |
|
7,065 |
|
3,823 |
|||||||
General and administrative |
|
2,632 |
|
2,569 |
|
10,862 |
|
13,663 |
|||||||
Total stock-based compensation | $ |
7,997 |
$ |
6,806 |
$ |
33,321 |
$ |
25,363 |
(2)Includes depreciation and amortization expense as follows: |
Three Months Ended |
|
Year Ended |
|||||||||||||
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
||
Cost of revenue | $ |
322 |
$ |
247 |
$ |
1,142 |
$ |
1,179 |
|||||||
Research and development |
|
867 |
|
441 |
|
3,466 |
|
1,079 |
|||||||
Sales and marketing |
|
78 |
|
— |
|
303 |
|
— |
|||||||
General and administrative |
|
1,119 |
|
1,361 |
|
4,545 |
|
3,219 |
|||||||
Total depreciation and amortization expense | $ |
2,386 |
$ |
2,049 |
$ |
9,456 |
$ |
5,477 |
(3)Litigation expenses and litigation-related expenses outside of the Company’s ordinary business operations | ||||
(4)Non-recurring acquisition expense represents transaction costs for the Velodyne Lidar, Inc. and |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230323005649/en/
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FAQ
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