Ouster Reports 40% Year over Year Revenue Growth Driven by Automation in Industrial and Robotics Sectors
Ouster, Inc. (NYSE: OUST) reported Q2 2022 revenue of $10.3 million, a 40% increase year-over-year, with
gross margins at 27%. The company shipped 2,020 sensors, a 38% year-over-year rise. Ouster revised its FY 2022 revenue guidance to $40 million to $55 million amidst macroeconomic pressures.
Net loss decreased to $28 million, while adjusted EBITDA loss increased to $23 million. The number of Strategic Customer Agreements rose to 80, collectively representing approximately $575 million in contracted revenue through 2026.
- Q2 2022 revenue of $10.3 million, up 40% YoY.
- 27% gross margins, improving from 26% year over year.
- Shipped 2,020 sensors, a 38% increase YoY.
- Strategic Customer Agreements increased to 80, representing $575 million in revenue opportunity.
- Completed $20 million drawdown from a $50 million term loan facility.
- Adjusted EBITDA loss increased to $23 million, compared to $14 million YoY.
- Revised FY 2022 revenue guidance to $40 million to $55 million due to delayed customer ramp timelines.
Revises FY 2022 revenue guidance to
Second Quarter 2022 Financial Highlights
-
$10.3 million 40% year over year. -
27% gross margins, compared to26% in the second quarter of 2021. -
Shipped 2,020 sensors in the second quarter, up
38% year over year. -
Increased the number of Strategic Customer Agreements to 80, up from 72 in the prior quarter, collectively representing approximately
$575 million -
Net loss decreased to
$28 million $32 million -
Adjusted EBITDA loss2 increased to
$23 million $14 million
Ouster achieved its second highest revenue quarter, driven primarily by growth in the industrial and robotics verticals, predominantly from customers utilizing digital lidar for warehouse and port automation, off-highway mining and agriculture vehicles, construction robots, and drones for mapping and volumetric measurement. Sizeable orders in the automotive vertical, specifically for autonomous trucks, buses, and shuttles also meaningfully contributed to revenue in the second quarter followed by revenues from smart infrastructure deployments around the world. The Company delivered gross margins of
Business Updates
Continued Customer Traction: In the second quarter, Ouster sold sensors to approximately 90 new customers3, and converted another 8 customers to multi-year SCAs with binding commitments, further expanding its contracted revenue opportunity to approximately
Progressed Automotive Traction:
Strengthened Financial Position: Ouster continued to bolster its financial position through balance sheet initiatives, including a previously announced term loan facility of up to
“Ouster continues to capture share in a rapidly evolving market, increasing revenue by
2022 Outlook
Ouster revised its FY 2022 revenue guidance to
While the fundamentals of Ouster’s business remain unchanged, ongoing macroeconomic pressures are impacting customer ramp timelines, resulting in a significant number of large deals being delayed or staggered over a longer period of time than previously anticipated.
“Ouster’s differentiated technology, backed by a leading cost structure and our multi-market approach, positions us to continue to win head-to-head commercial opportunities and gain market share across our four market verticals,” said Ouster CFO
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 building a safer and more sustainable future through its high-resolution digital lidar sensors for the automotive, industrial, smart infrastructure, and robotics industries. Ouster’s sensors offer an excellent combination of price and performance with the flexibility to span hundreds of use-cases and enable revolutionary autonomy across industries. With a global team and high-volume manufacturing, Ouster supports over 600 customers in over 50 countries. Ouster is headquartered in
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding Ouster’s technological advancements, market opportunities, market growth expectations, potential pipeline of customers, strategic partnerships and outlook, its ability to meet its revenue goals and guidance, its strategy, and market positioning, effects of its near term bottom-up analysis and cost structure, sales pipeline, bookings and commercial expansion plans, anticipated product releases, and ability to drive near and long term revenue growth. Forward-looking statements give Ouster’s current expectations and projections relating to its financial condition, competitive position, financial position, future results of operations, plans, objectives, future orders whether binding or non-binding, and business. You may identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “aim”, “anticipate”, “estimate”, “expect”, “project”, “plan”, “forecast”, “intend”, “believe”, “may”, “will”, “should”, “can have”, “likely”, “guidance”, “continue”, “could”, “would”, “potentially”, “preliminary” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. 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 Ouster’s limited operating history and history of losses; the negotiating power and product standards of its customers; fluctuations in its operating results; supply chain constraints and challenges; cancellation or postponement of contracts or unsuccessful implementations; the adoption of its products and the growth of the lidar market generally; its 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 it operates; selection of its products for inclusion in target markets; its future capital needs and ability to secure additional capital on favorable terms or at all; its ability to use tax attributes; its dependence on key third party suppliers, in particular Benchmark Electronics, Inc., and manufacturers; its ability to maintain inventory and the risk of inventory write-downs; inaccurate forecasts of market growth; its ability to manage growth; the creditworthiness of its customers; risks related to acquisitions; risks related to international operations; risks of product delivery problems or defects; costs associated with product warranties; its ability to maintain competitive average selling prices or high sales volumes or reduce product costs; conditions in its customers’ industries; its ability to recruit and retain key personnel; its use of professional employer organizations; its ability to adequately protect and enforce its intellectual property rights; its ability to effectively respond to evolving regulations and standards; risks related to operating as a public company; risks related to the COVID-19 pandemic; risks related to certain of its warrants being accounted for as liabilities; and other important factors discussed in the Company’s Annual Report on Form 10-K for the year ended
The financials herein are unaudited and subject to the finalization of year-end audit procedures. In additional 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
1 "Strategic Customer Agreements” or “SCAs” establish a multi-year purchase and supply framework for Ouster and the customer, and include details about customer programs and applications where the customer intends to use Ouster products. SCAs also include multi-year non-binding customer forecasts (typically of three to five years in length) giving Ouster visibility to the customer's long-term purchasing requirements, mutually agreed upon pricing over the duration of the agreement, and in certain cases include multi-year binding purchase commitments. “Contracted revenue opportunity” represents the sum of both binding purchase commitments and non-binding forecasts. No assurances can be given that non-binding forecasts will mature into binding purchase commitments, or that any contracted revenue opportunity will result in revenue. No additional revenue opportunity beyond the customer’s actual forecast has been imputed.
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 "Customer” is defined as having purchased a sensor within the past twelve months ended
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
| (unaudited) | ||||||
| (in thousands, except share and per share data) | ||||||
2022 |
2021 |
|||||
| Assets | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ |
159,707 |
|
$ |
182,644 |
|
| Restricted cash, current |
|
977 |
|
|
977 |
|
| Accounts receivable, net |
|
9,382 |
|
|
10,723 |
|
| Inventory |
|
17,181 |
|
|
7,448 |
|
| Prepaid expenses and other current assets |
|
7,539 |
|
|
5,566 |
|
| Total current assets |
|
194,786 |
|
|
207,358 |
|
| Property and equipment, net |
|
8,393 |
|
|
10,054 |
|
| Operating lease, right-of-use assets |
|
14,369 |
|
|
15,156 |
|
|
51,151 |
|
|
51,076 |
|
|
| Intangible assets, net |
|
20,408 |
|
|
22,652 |
|
| Restricted cash, non-current |
|
1,088 |
|
|
1,035 |
|
| Other non-current assets |
|
355 |
|
|
371 |
|
| Total assets | $ |
290,550 |
|
$ |
307,702 |
|
| Liabilities, redeemable convertible preferred stock and stockholders’ equity | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ |
5,825 |
|
$ |
4,863 |
|
| Accrued and other current liabilities |
|
14,520 |
|
|
14,173 |
|
| Operating lease liability, current portion |
|
3,067 |
|
|
3,067 |
|
| Total current liabilities |
|
23,412 |
|
|
22,103 |
|
| Operating lease liability, long-term portion |
|
15,191 |
|
|
16,208 |
|
| Warrant Liabilities |
|
492 |
|
|
7,626 |
|
| Debt |
|
19,119 |
|
|
- |
|
| Other non-current liabilities |
|
1,365 |
|
|
1,065 |
|
| Total liabilities |
|
59,579 |
|
|
47,002 |
|
| Commitments and contingencies | ||||||
| Redeemable convertible preferred stock |
|
- |
|
|
- |
|
| Stockholders’ equity (deficit): | ||||||
| Common stock |
|
18 |
|
|
17 |
|
| Additional paid-in capital |
|
594,800 |
|
|
564,045 |
|
| Accumulated deficit |
|
(363,753 |
) |
|
(303,356 |
) |
| Accumulated other comprehensive loss |
|
(94 |
) |
|
(6 |
) |
| Total stockholders’ equity |
|
230,971 |
|
|
260,700 |
|
| Total liabilities, redeemable convertible preferred stock, and stockholders’ equity | $ |
290,550 |
|
$ |
307,702 |
|
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | ||||||||||||
| (unaudited) | ||||||||||||
| (in thousands, except share and per share data) | ||||||||||||
| Three Months Ended |
Six Months Ended |
|||||||||||
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
| Product revenue | $ |
10,329 |
|
$ |
7,360 |
|
$ |
18,887 |
|
$ |
13,971 |
|
| Cost of product |
|
7,547 |
|
|
5,465 |
|
|
13,514 |
|
|
10,333 |
|
| Gross (loss) profit |
|
2,782 |
|
|
1,895 |
|
|
5,373 |
|
|
3,638 |
|
| Operating expenses: | ||||||||||||
| Research and development |
|
15,893 |
|
|
6,474 |
|
|
31,799 |
|
|
11,186 |
|
| Sales and marketing |
|
7,563 |
|
|
4,614 |
|
|
14,653 |
|
|
8,040 |
|
| General and administrative |
|
12,515 |
|
|
12,197 |
|
|
26,298 |
|
|
22,104 |
|
| Total operating expenses |
|
35,971 |
|
|
23,285 |
|
|
72,750 |
|
|
41,330 |
|
| Loss from operations |
|
(33,189 |
) |
|
(21,390 |
) |
|
(67,377 |
) |
|
(37,692 |
) |
| Other (expense) income: | ||||||||||||
| Interest income |
|
344 |
|
|
139 |
|
|
498 |
|
|
140 |
|
| Interest expense |
|
(444 |
) |
|
- |
|
|
(444 |
) |
|
(504 |
) |
| Other income (expense), net |
|
5,326 |
|
|
(10,760 |
) |
|
7,010 |
|
|
(14,912 |
) |
| Total other expense, net |
|
5,226 |
|
|
(10,621 |
) |
|
7,064 |
|
|
(15,276 |
) |
| Loss before income taxes |
|
(27,963 |
) |
|
(32,011 |
) |
|
(60,313 |
) |
|
(52,968 |
) |
| Provision for income tax expense |
|
37 |
|
|
- |
|
|
84 |
|
|
- |
|
| Net loss | $ |
(28,000 |
) |
$ |
(32,011 |
) |
$ |
(60,397 |
) |
$ |
(52,968 |
) |
| Other comprehensive loss | ||||||||||||
| Foreign currency translation adjustments | $ |
(76 |
) |
$ |
- |
|
$ |
(88 |
) |
$ |
- |
|
| Total comprehensive loss | $ |
(28,076 |
) |
$ |
(32,011 |
) |
$ |
(60,485 |
) |
$ |
(52,968 |
) |
| Net loss per common share, basic and diluted | $ |
(0.16 |
) |
$ |
(0.21 |
) |
$ |
(0.35 |
) |
$ |
(0.50 |
) |
| Weighted-average shares used to compute basic and diluted net loss per share |
|
175,057,360 |
|
|
155,923,689 |
|
|
172,965,833 |
|
|
106,070,590 |
|
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
| (unaudited) | ||||||
| (in thousands) | ||||||
| Six months ended |
||||||
|
2022 |
|
|
2021 |
|
|
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
| Net loss | $ |
(60,397 |
) |
$ |
(52,968 |
) |
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||
| Depreciation and amortization |
|
4,739 |
|
|
2,254 |
|
| Stock-based compensation |
|
16,869 |
|
|
11,410 |
|
| Change in right-of-use asset |
|
1,358 |
|
|
1,047 |
|
| Interest expense |
|
402 |
|
|
36 |
|
| Amortization of debt issuance costs and debt discount |
|
42 |
|
|
250 |
|
| Change in fair value of warrant liabilities |
|
(7,134 |
) |
|
14,898 |
|
| Inventory write down |
|
447 |
|
|
144 |
|
| Gain from disposal of property and equipment |
|
(100 |
) |
|
- |
|
| Changes in operating assets and liabilities: | ||||||
| Accounts receivable |
|
1,341 |
|
|
(2,344 |
) |
| Inventory |
|
(10,180 |
) |
|
(48 |
) |
| Prepaid expenses and other assets |
|
(1,957 |
) |
|
(37 |
) |
| Accounts payable |
|
1,094 |
|
|
(3,317 |
) |
| Accrued and other liabilities |
|
(329 |
) |
|
1,692 |
|
| Operating lease liability |
|
(1,588 |
) |
|
(1,363 |
) |
| Net cash used in operating activities |
|
(55,393 |
) |
|
(28,346 |
) |
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
| Proceeds from sale of property & equipment |
|
275 |
|
|
- |
|
| Purchases of property and equipment |
|
(1,277 |
) |
|
(659 |
) |
| Net cash used in investing activities |
|
(1,002 |
) |
|
(659 |
) |
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
| Proceeds from the merger and private offering |
|
- |
|
|
291,454 |
|
| Payment of offering costs |
|
- |
|
|
(27,124 |
) |
| 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 |
|
(43 |
) |
|
(43 |
) |
| Proceeds from exercise of stock options |
|
252 |
|
|
504 |
|
| Proceeds from borrowings, net of debt discount and issuance costs |
|
19,077 |
|
|
- |
|
| Proceeds from the issuance of common stock under at-the-market offering, net of commissions and fees |
|
14,568 |
|
|
- |
|
| At-the-market offering costs for the issuance of common stock |
|
(196 |
) |
|
- |
|
| Taxes paid related to net share settlement of restricted stock awards |
|
(59 |
) |
|
- |
|
| Net cash provided by financing activities |
|
33,599 |
|
|
257,791 |
|
| Effect of exchange rates on cash and cash equivalents |
|
(88 |
) |
|
- |
|
| Net increase (decrease) in cash, cash equivalents and restricted cash |
|
(22,884 |
) |
|
228,786 |
|
| Cash, cash equivalents and restricted cash at beginning of period |
|
184,656 |
|
|
12,642 |
|
| Cash, cash equivalents and restricted cash at end of period | $ |
161,772 |
|
$ |
241,428 |
|
| RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES | ||||||||||||
| (unaudited) | ||||||||||||
| (in thousands) | ||||||||||||
| Three Months Ended |
Six Months Ended |
|||||||||||
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
| GAAP net loss | $ |
(28,000 |
) |
$ |
(32,011 |
) |
$ |
(60,397 |
) |
$ |
(52,968 |
) |
| Interest expense (income), net |
|
100 |
|
|
(139 |
) |
|
(54 |
) |
|
364 |
|
| Other expense (income), net |
|
(5,326 |
) |
|
10,760 |
|
|
(7,010 |
) |
|
14,912 |
|
| Stock-based compensation(1) |
|
8,119 |
|
|
6,154 |
|
|
16,869 |
|
|
11,410 |
|
| Provision for income tax expense |
|
37 |
|
|
- |
|
|
84 |
|
|
- |
|
| Non-GAAP operating loss |
|
(25,070 |
) |
|
(15,236 |
) |
|
(50,508 |
) |
|
(26,282 |
) |
| Depreciation and amortization expense(2) |
|
2,354 |
|
|
1,160 |
|
|
4,739 |
|
|
2,254 |
|
| Adjusted EBITDA | $ |
(22,716 |
) |
$ |
(14,076 |
) |
$ |
(45,769 |
) |
$ |
(24,028 |
) |
| (1)Includes stock-based compensation expense as follows: | ||||||||||||
| Three Months Ended |
Six Months Ended |
|||||||||||
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
| Cost of revenue | $ |
146 |
|
$ |
133 |
|
$ |
365 |
|
$ |
251 |
|
| Research and development |
|
3,806 |
|
|
1,321 |
|
|
7,566 |
|
|
2,242 |
|
| Sales and marketing |
|
1,839 |
|
|
719 |
|
|
3,362 |
|
|
985 |
|
| General and administrative |
|
2,328 |
|
|
3,981 |
|
|
5,576 |
|
|
7,932 |
|
| Total stock-based compensation | $ |
8,119 |
|
$ |
6,154 |
|
$ |
16,869 |
|
$ |
11,410 |
|
| (2)Includes depreciation and amortization expense as follows: | ||||||||||||
| Three Months Ended |
Six Months Ended |
|||||||||||
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
| Cost of revenue | $ |
309 |
|
$ |
275 |
|
$ |
593 |
|
$ |
678 |
|
| Research and development |
|
823 |
|
|
231 |
|
|
1,710 |
|
|
350 |
|
| Sales and marketing |
|
75 |
|
|
- |
|
|
150 |
|
|
- |
|
| General and administrative |
|
1,146 |
|
|
654 |
|
|
2,286 |
|
|
1,226 |
|
| Total depreciation and amortization expense | $ |
2,354 |
|
$ |
1,160 |
|
$ |
4,739 |
|
$ |
2,254 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20220804005933/en/
For Investors
investors@ouster.io
For Media
press@ouster.io
Source:
FAQ
What were Ouster's Q2 2022 financial results?
How many sensors did Ouster ship in Q2 2022?
What is Ouster's FY 2022 revenue guidance?
How many Strategic Customer Agreements does Ouster have?
What was Ouster's net loss in Q2 2022?
