Ouster Announces Record Revenue and Margin for First Quarter 2024
Ouster, Inc. (NYSE: OUST) reported record revenue of $26 million, up 51% year over year, with a GAAP gross margin of 29% and a non-GAAP gross margin of 36%. The company's net loss decreased significantly compared to the previous year. Ouster aims to achieve profitability in 2024 through revenue growth, expanding software solutions, advancing digital lidar hardware, and improving the long-term financial framework.
Record revenue of $26 million, up 51% year over year
GAAP gross margin of 29% and record non-GAAP gross margin of 36%
Net loss decreased to $24 million from $177 million year over year
Advancing software solutions and growing the installed base
Progress in developing digital lidar hardware
Improvement in financial metrics towards profitability
Net loss of $24 million in the first quarter
Adjusted EBITDA loss of $12 million
Cash balance decreased compared to the previous quarter
Insights
Ouster's recently reported financials indicate a significant upswing in both revenue and margins. A 51% year-over-year revenue growth is noteworthy as it suggests a robust demand for their lidar sensors and software solutions. The improvement in both GAAP and non-GAAP gross margins, with the latter hitting a record 36%, reflects a more profitable product mix and efficient cost management. This is especially important for a company in the technology sector where margins are closely watched indicators of scalability and operational efficiency.
However, despite these positive signs, a net loss of
The reported surge in Ouster's revenue is attributed to large orders from the robotics and automotive sectors. This indicates a strong product-market fit, particularly for applications in warehouse robotics, mapping and autonomous vehicles. These industries are on a clear growth trajectory which suggests a sustainable demand for Ouster's offerings. The expansion of software solutions, like the new deep learning model and the development of next-generation hardware highlight Ouster's commitment to innovation and their strategic positioning to tap into the multi-billion dollar security industry.
Furthermore, the introduction of the L4 custom silicon chip and the planned integration of the Chronos chip into solid-state digital flash sensors are forward-looking moves that could solidify Ouster's competitive advantage in the market. These technological advancements could potentially lead to higher performance and reliability, which would be vital in maintaining the growth momentum and expanding the customer base. The market for lidar technology is evolving rapidly and Ouster's focus on hardware and software synergy could prove to be a differential factor in a crowded market.
Ouster's financial results suggest that their operational and strategic initiatives are bearing fruit. The ‘taping out’ of the L4 custom silicon chip is an important milestone in semiconductor development, signaling a transition to the manufacturing phase. This move could have significant implications for Ouster's sensor capabilities and overall product competitiveness. As sensors are critical in various burgeoning fields like autonomous driving and smart infrastructure, advancements in this area could dramatically enhance Ouster's market share and growth prospects.
Moreover, the emphasis on safety certifications for the OS sensor family is important for instilling trust among automakers and other commercial clients, potentially opening up more opportunities in stringent markets. It's important for investors to monitor the adoption rate of Ouster's newer products and their impact on the company's financials over upcoming quarters.
Record revenue of
GAAP gross margin of
First Quarter 2024 Highlights
-
$26 million 51% year over year and6% sequentially. - Shipped approximately 4,500 sensors for revenue.
-
GAAP gross margin of
29% , compared to (2% ) in the first quarter of 2023 and22% in the fourth quarter of 2023. -
Non-GAAP gross margin2 of
36% , compared to25% in the first quarter of 2023 and35% in the fourth quarter of 2023. -
Net loss of
$24 million $177 million $39 million -
Adjusted EBITDA2 loss of
$12 million $27 million $14 million -
Cash, cash equivalents, restricted cash, and short-term investments balance of
$189 million
“Ouster continued its momentum into the first quarter after a strong 2023. We delivered revenue of
Revenue growth in the first quarter was driven by large orders from customers in the robotics and automotive verticals, specifically for warehouse robotics, mapping, and autonomous vehicles. GAAP gross margin improved to
| _______________ |
1 The financial results for the three months ended March 31, 2023 are composed of Ouster standalone performance through February 10, 2023 and combined performance of Ouster and Velodyne for the remainder of the period. The results for the three months ended March 31, 2024 and December 31, 2023 reflect the combined performance of Ouster and Velodyne. |
2 Adjusted EBITDA loss and non-GAAP gross margin are non-GAAP financial measures. See Non-GAAP Financial Measures for additional information and reconciliations of these measures to their respective most directly comparable financial measures calculated in accordance with |
2024 Business Objective Updates
- Expand software solutions and grow the installed base
- Advance the development of digital lidar hardware
- Progress on the long-term financial framework
Expand software solutions and grow the installed base: During the first quarter, Ouster continued to expand its software solutions with a new deep learning model that increases accuracy and detection range. The Company also enhanced Ouster Gemini with the ability to more seamlessly integrate with leading video management system vendors, helping to accelerate adoption in the multi-billion dollar security industry. Ouster also recently collaborated with a recipient of the
Advance the development of digital lidar hardware: Ouster continued to execute on its product roadmap in the first quarter. The Company introduced new firmware designed to improve the performance capabilities of its REV7 sensors, coinciding with heightened interest from AI and robotics customers. Ouster’s next generation “L4” custom silicon chip is taped out and is expected to bring significant improvements in performance, reliability, and manufacturability, along with safety certifications to the OS sensor family. The Company plans to integrate the Chronos chip into its final form factor, solid-state digital flash (“DF”) sensors in the next year.
Progress on the long-term financial framework: Ouster advanced on its long-term financial framework during the first quarter. With revenue growth of
Second Quarter 2024 Outlook
For the second quarter of 2024, Ouster expects to achieve
Upcoming Investor Events
Ouster management will participate in the following upcoming investor event:
- Oppenheimer 9th Annual Emerging Growth Conference – Virtual, May 10th, 2024
Conference Call Information
Ouster will host a conference call and live webcast for analysts and investors at 5:00 p.m. ET today, May 9, 2024 to discuss its financial results and business outlook. To access the call, please register at https://registrations.events/direct/Q4I934282.
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 telephone replay of the call will be available 2 hours after the call ends, and can be accessed via phone through May 23, 2024 by dialing (800) 770-2030 from the
About Ouster
Ouster (NYSE: OUST) is a leading global provider of 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. 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. The Company intends 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,” “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 statements of historical fact, including statements regarding Ouster’s revenue guidance for the second quarter of 2024; anticipated new product launches and developments; Ouster’s future results of operations, cash reserve and financial position; the anticipated timing and development of Ouster’s next generation hardware and software solutions; the execution against the Company’s product roadmap and demand for products; the Company’s path to profitability and long-term financial framework; industry and business trends; Ouster’s business objectives, plans, strategic partnerships, and market growth; and Ouster’s competitive market position, all 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; fluctuations in its operating results; the substantial research and development costs needed to develop and commercialize new products; its ability to maintain competitive average selling prices, high sales volumes and reduce product costs; competition in Ouster's industry; the negotiating power and product standards of its customers; the adoption of its products and the growth of the lidar market generally; product quality and liability risks; Ouster’s future capital needs and ability to secure additional capital on favorable terms or at all; risks related to Ouster's indebtedness; its ability to manage growth, including growing the sales and marketing organization; risks related to international operations, including international manufacturing; cancellation or postponement of contracts or unsuccessful implementations; the Company's ability to manage its inventory; credit risk of customers; Ouster's ability to use tax attributes; Ouster’s dependence on key third party suppliers, in particular Benchmark Electronics, Inc., Fabrinet, and other suppliers; supply chain constraints and challenges; conditions in the industries the Company targets or the global economy; the ability of its lidar technology roadmap and new software solutions to catalyze growth; Ouster’s ability to recruit and retain key personnel; its ability to successfully integrate its business with Velodyne and achieve the anticipated benefits of the Velodyne merger; Ouster’s ability to adequately protect and enforce its intellectual property rights, including as it relates to Hesai Group; legal and regulatory risks; risks related to operating as a public company; and other important factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, as may be further updated from time to time in the Company’s other filings with the SEC. Readers are urged to consider these factors carefully and in the totality of the circumstances when evaluating these forward-looking statements, and not to place undue reliance on any of them. 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 may be required by law, even if subsequent events cause its views to change.
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
| OUSTER, INC. | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| (unaudited) | |||||||
| (in thousands) | |||||||
March 31, 2024 |
December 31, 2023 |
||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ |
48,270 |
|
$ |
50,991 |
|
|
| Restricted cash, current |
|
564 |
|
|
552 |
|
|
| Short-term investments |
|
139,546 |
|
|
139,158 |
|
|
| Accounts receivable, net |
|
12,220 |
|
|
14,577 |
|
|
| Inventory |
|
21,070 |
|
|
23,232 |
|
|
| Prepaid expenses and other current assets |
|
34,808 |
|
|
34,647 |
|
|
| Total current assets |
|
256,478 |
|
|
263,157 |
|
|
| Property and equipment, net |
|
10,513 |
|
|
10,228 |
|
|
| Operating lease, right-of-use assets |
|
17,411 |
|
|
18,561 |
|
|
| Unbilled receivable, non-current portion |
|
7,043 |
|
|
10,567 |
|
|
| Intangible assets, net |
|
22,592 |
|
|
24,436 |
|
|
| Restricted cash, non-current |
|
1,091 |
|
|
1,091 |
|
|
| Other non-current assets |
|
2,555 |
|
|
2,703 |
|
|
| Total assets | $ |
317,683 |
|
$ |
330,743 |
|
|
| Liabilities and stockholders’ equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ |
6,122 |
|
$ |
3,545 |
|
|
| Accrued and other current liabilities |
|
56,375 |
|
|
58,166 |
|
|
| Contract liabilities, current |
|
13,429 |
|
|
12,885 |
|
|
| Operating lease liability, current portion |
|
7,153 |
|
|
7,096 |
|
|
| Total current liabilities |
|
83,079 |
|
|
81,692 |
|
|
| Operating lease liability, non-current portion |
|
17,278 |
|
|
18,827 |
|
|
| Debt |
|
43,973 |
|
|
43,975 |
|
|
| Contract liabilities, non-current portion |
|
4,483 |
|
|
4,967 |
|
|
| Other non-current liabilities |
|
1,638 |
|
|
1,610 |
|
|
| Total liabilities |
|
150,451 |
|
|
151,071 |
|
|
| Commitments and contingencies | |||||||
| Stockholders’ equity: | |||||||
| Common stock |
|
44 |
|
|
42 |
|
|
| Additional paid-in capital |
|
1,007,502 |
|
|
995,464 |
|
|
| Accumulated deficit |
|
(839,875 |
) |
|
(816,026 |
) |
|
| Accumulated other comprehensive (loss) income |
|
(439 |
) |
|
192 |
|
|
| Total stockholders’ equity |
|
167,232 |
|
|
179,672 |
|
|
| Total liabilities and stockholders’ equity | $ |
317,683 |
|
$ |
330,743 |
|
|
| OUSTER, INC. | |||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | |||||||||||
| (unaudited) | |||||||||||
| (in thousands, except share and per share data) | |||||||||||
Three Months Ended March 31, |
Three Months Ended December 31, |
Three Months Ended March 31, |
|||||||||
2024 |
2023 |
2023 |
|||||||||
| Revenue | $ |
25,944 |
|
$ |
24,444 |
|
$ |
17,230 |
|
||
| Cost of product |
|
18,519 |
|
|
19,033 |
|
|
17,606 |
|
||
| Gross profit (loss) |
|
7,425 |
|
|
5,411 |
|
|
(376 |
) |
||
| Operating expenses: | |||||||||||
| Research and development |
|
13,806 |
|
|
15,626 |
|
|
32,459 |
|
||
| Sales and marketing |
|
6,860 |
|
|
8,553 |
|
|
13,533 |
|
||
| General and administrative |
|
12,580 |
|
|
18,545 |
|
|
31,325 |
|
||
| Goodwill impairment charges |
|
— |
|
|
— |
|
|
99,409 |
|
||
| Total operating expenses |
|
33,246 |
|
|
42,724 |
|
|
176,726 |
|
||
| Loss from operations |
|
(25,821 |
) |
|
(37,313 |
) |
|
(177,102 |
) |
||
| Other income (expense): | |||||||||||
| Interest income |
|
2,651 |
|
|
2,579 |
|
|
1,719 |
|
||
| Interest expense |
|
(741 |
) |
|
(4,081 |
) |
|
(1,669 |
) |
||
| Other income, net |
|
193 |
|
|
(6 |
) |
|
54 |
|
||
| Total other income, net |
|
2,103 |
|
|
(1,508 |
) |
|
104 |
|
||
| Loss before income taxes |
|
(23,718 |
) |
|
(38,821 |
) |
|
(176,998 |
) |
||
| Provision for income tax expense |
|
131 |
|
|
174 |
|
|
282 |
|
||
| Net loss | $ |
(23,849 |
) |
$ |
(38,995 |
) |
$ |
(177,280 |
) |
||
| Other comprehensive loss | |||||||||||
| Changes in unrealized (loss) gain on available for sale securities | $ |
(459 |
) |
$ |
314 |
|
$ |
51 |
|
||
| Foreign currency translation adjustments | $ |
(172 |
) |
$ |
258 |
|
$ |
(81 |
) |
||
| Total comprehensive loss | $ |
(24,480 |
) |
$ |
(38,423 |
) |
$ |
(177,310 |
) |
||
| Net loss per common share, basic and diluted | $ |
(0.55 |
) |
$ |
(0.95 |
) |
$ |
(6.03 |
) |
||
| Weighted-average shares used to compute basic and diluted net loss per share |
|
43,454,127 |
|
|
41,135,659 |
|
|
29,411,612 |
|
||
| OUSTER, INC. | |||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| (unaudited) | |||||||
| (in thousands) | |||||||
| Three Months Ended March 31, | |||||||
2024 |
2023 |
||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
| Net loss | $ |
(23,849 |
) |
$ |
(177,280 |
) |
|
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
| Goodwill impairment charges |
|
— |
|
|
99,409 |
|
|
| Depreciation and amortization |
|
2,897 |
|
|
6,159 |
|
|
| Loss on write-off of construction in progress and right-of-use asset impairment |
|
— |
|
|
1,423 |
|
|
| Stock-based compensation |
|
9,404 |
|
|
21,780 |
|
|
| Reduction of revenue related to stock warrant issued to customer |
|
195 |
|
|
— |
|
|
| Amortization of right-of-use asset |
|
1,150 |
|
|
1,112 |
|
|
| Interest expense |
|
— |
|
|
685 |
|
|
| Amortization of debt issuance costs and debt discount |
|
— |
|
|
62 |
|
|
| Accretion or amortization on short-term investments |
|
(1,486 |
) |
|
(805 |
) |
|
| Change in fair value of warrant liabilities |
|
21 |
|
|
(106 |
) |
|
| Inventory write down |
|
737 |
|
|
2,836 |
|
|
| Provision (recovery of) for doubtful accounts |
|
(208 |
) |
|
445 |
|
|
| Loss from disposal of property and equipment |
|
— |
|
|
145 |
|
|
| Realized gain on available for sale securities |
|
(275 |
) |
|
— |
|
|
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable |
|
6,089 |
|
|
(3,450 |
) |
|
| Inventory |
|
1,425 |
|
|
(2,329 |
) |
|
| Prepaid expenses and other assets |
|
(1,268 |
) |
|
672 |
|
|
| Accounts payable |
|
2,636 |
|
|
5,488 |
|
|
| Accrued and other liabilities |
|
(1,758 |
) |
|
(9,218 |
) |
|
| Contract liabilities |
|
60 |
|
|
944 |
|
|
| Operating lease liability |
|
(1,492 |
) |
|
(984 |
) |
|
| Net cash used in operating activities |
|
(5,722 |
) |
|
(53,012 |
) |
|
| CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
| Proceeds from sale of property and equipment |
|
— |
|
|
168 |
|
|
| Purchases of property and equipment |
|
(1,382 |
) |
|
(1,006 |
) |
|
| Purchase of short-term investments |
|
(24,485 |
) |
|
(5,003 |
) |
|
| Proceeds from sales of short-term investments |
|
25,398 |
|
|
19,981 |
|
|
| Cash and cash equivalents acquired in the Velodyne Merger |
|
— |
|
|
32,137 |
|
|
| Net cash (used in) provided by investing activities |
|
(469 |
) |
|
46,277 |
|
|
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
| Proceeds from exercise of stock options |
|
109 |
|
|
18 |
|
|
| Proceeds from the issuance of common stock under at-the-market offering, net of commissions and fees |
|
3,587 |
|
|
— |
|
|
| At-the-market offering costs for the issuance of common stock |
|
(43 |
) |
|
— |
|
|
| Net cash provided by financing activities |
|
3,653 |
|
|
18 |
|
|
| Effect of exchange rates on cash and cash equivalents |
|
(170 |
) |
|
(79 |
) |
|
| Net decrease in cash, cash equivalents and restricted cash |
|
(2,708 |
) |
|
(6,796 |
) |
|
| Cash, cash equivalents and restricted cash at beginning of period |
|
52,633 |
|
|
124,278 |
|
|
| Cash, cash equivalents and restricted cash at end of period | $ |
49,925 |
|
$ |
117,482 |
|
|
| OUSTER, INC. | |||||||||||
| RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES | |||||||||||
| (unaudited) | |||||||||||
| (in thousands) | |||||||||||
Three Months Ended March 31, |
Three Months Ended December 31, |
Three Months Ended March 31, |
|||||||||
2024 |
2023 |
2023 |
|||||||||
| GAAP net loss | $ |
(23,849 |
) |
$ |
(38,995 |
) |
$ |
(177,280 |
) |
||
| Interest expense (income), net |
|
(1,910 |
) |
|
1,502 |
|
|
(50 |
) |
||
| Other expense (income), net |
|
(193 |
) |
|
6 |
|
|
(54 |
) |
||
| Stock-based compensation(1) |
|
9,404 |
|
|
11,107 |
|
|
21,780 |
|
||
| Provision for income tax expense |
|
131 |
|
|
174 |
|
|
282 |
|
||
| Goodwill impairment charge |
|
— |
|
|
— |
|
|
99,409 |
|
||
| Restructuring costs, excluding stock-based compensation expense |
|
— |
|
|
— |
|
|
12,635 |
|
||
| Excess and obsolete expenses and loss on firm purchase commitments |
|
572 |
|
|
1,732 |
|
|
3,630 |
|
||
| Amortization of acquired intangibles(2) |
|
1,754 |
|
|
1,757 |
|
|
1,511 |
|
||
| Depreciation expense(2) |
|
1,053 |
|
|
1,239 |
|
|
4,648 |
|
||
| Litigation expenses(3) |
|
1,296 |
|
|
7,383 |
|
|
537 |
|
||
| Merger and acquisition related expenses(4) |
|
— |
|
|
— |
|
|
6,058 |
|
||
| Adjusted EBITDA | $ |
(11,743 |
) |
$ |
(14,095 |
) |
$ |
(26,893 |
) |
||
| (1)Includes stock-based compensation expense as follows: | |||||||||||
Three Months Ended March 31, |
Three Months Ended December 31, |
Three Months Ended March 31, |
|||||||||
2024 |
2023 |
2023 |
|||||||||
| Cost of revenue | $ |
913 |
|
$ |
856 |
|
$ |
774 |
|
||
| Research and development |
|
4,188 |
|
|
4,786 |
|
|
7,505 |
|
||
| Sales and marketing |
|
1,400 |
|
|
2,240 |
|
|
2,881 |
|
||
| General and administrative |
|
2,903 |
|
|
3,225 |
|
|
10,620 |
|
||
| Total stock-based compensation | $ |
9,404 |
|
$ |
11,107 |
|
$ |
21,780 |
|
||
| (2)Includes depreciation and amortization expense as follows: | |||||||||||
Three Months Ended March 31, |
Three Months Ended December 31, |
Three Months Ended March 31, |
|||||||||
2024 |
2023 |
2023 |
|||||||||
| Cost of revenue | $ |
1,100 |
|
$ |
1,180 |
|
$ |
1,750 |
|
||
| Research and development |
|
712 |
|
|
747 |
|
|
2,964 |
|
||
| Sales and marketing |
|
248 |
|
|
250 |
|
|
181 |
|
||
| General and administrative |
|
747 |
|
|
819 |
|
|
1,264 |
|
||
| Total depreciation and amortization expense | $ |
2,807 |
|
$ |
2,996 |
|
$ |
6,159 |
|
||
| (3)Litigation expenses and litigation-related expenses outside of the Company’s ordinary business operations | |||||||||||
| (4)Merger and acquisition related expenses represent transaction costs for the Velodyne Merger which include legal and accounting professional service fees | |||||||||||
Three Months Ended March 31, |
Three Months Ended December 31, |
Three Months Ended March 31, |
|||||||||
2024 |
2023 |
2023 |
|||||||||
| Gross (loss) profit on GAAP basis | $ |
7,425 |
|
$ |
5,411 |
|
$ |
(376 |
) |
||
| Stock-based compensation |
|
913 |
|
|
856 |
|
|
774 |
|
||
| Amortization of acquired intangible assets |
|
464 |
|
|
517 |
|
|
249 |
|
||
| Excess and obsolete expenses and loss on firm purchase commitments |
|
572 |
|
|
1,732 |
|
|
3,630 |
|
||
| Gross profit on non-GAAP basis | $ |
9,374 |
|
$ |
8,516 |
|
$ |
4,277 |
|
||
| Gross margin on GAAP basis |
|
29 |
% |
|
22 |
% |
|
(2 |
)% |
||
| Gross margin on non-GAAP basis |
|
36 |
% |
|
35 |
% |
|
25 |
% |
||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240509284836/en/
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Source: Ouster, Inc.
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