Velodyne Lidar Reports Second Quarter 2022 Financial Results

Rhea-AI Summary

Velodyne Lidar reported second-quarter 2022 revenue of $11.5 million, marking an increase from $6.2 million in Q1 2022, driven by strong demand across various sectors including industrial and robotics and autonomous vehicles. Despite supply chain challenges, billings rose to $12.5 million.

However, the company faced a GAAP gross loss of $7.1 million and a net loss of $44.3 million, although losses reduced from prior quarters. Looking ahead, Velodyne anticipates Q3 2022 revenue between $8 million and $11 million amid ongoing supply constraints.

Positive

• Revenue increased to $11.5 million from $6.2 million in Q1 2022.
• Billings grew to $12.5 million, indicating demand resilience.
• Reduce GAAP operating expenses to $37.5 million from $39.6 million in Q1 2022.

Negative

• GAAP gross loss was $7.1 million; the non-GAAP gross loss was $4.2 million.
• Net loss was $44.3 million, slightly improved from $49.1 million in the previous quarter.
• Anticipated Q3 revenue forecast of $8 million to $11 million reflects ongoing supply chain constraints.

- Revenue of $11.5 million and billings of $12.5 million

SAN JOSE, Calif.--(BUSINESS WIRE)-- Velodyne Lidar, Inc. (NASDAQ: VLDR, VLDRW), a leading lidar company known worldwide for its broad portfolio of breakthrough lidar technologies, today announced financial results for its second quarter, which ended June 30, 2022.

“We saw strong customer traction in the second quarter across all three of our target markets: industrial and robotics, intelligent infrastructure and autonomous vehicles,” said Dr. Ted Tewksbury, CEO of Velodyne Lidar. “Thanks to solid execution by our operations team, we delivered sequential revenue growth in the face of continuing supply chain headwinds.

“We remain intensely focused on our dual goals of delivering intelligent vision solutions to our customers while scaling lidar into a profitable growth business with attractive shareholder returns,” said Dr. Tewksbury. “With our growth strategy defined and well underway, we are executing on several initiatives to expand gross margin and reduce costs. These actions are necessary to align our expense structure with current revenue expectations over the next 4 to 6 quarters. In parallel, we are investing selectively in strategic products that will be key to our long-term objectives.”

Second Quarter 2022 Financial Summary

• Total revenue was approximately $11.5 million and includes an approximately $1.0 million impact of the Amazon warrant. This compares with total revenue of $6.2 million, which included a $5.3 million impact of the Amazon warrant, in the prior quarter.
  • Total product revenue was $9.7 million. This compares with $4.4 million, which included a $5.3 million impact of the Amazon warrant, in the first quarter of 2022.
  • License and services revenue was $1.9 million, compared with $1.8 million in the first quarter of 2022.
• Billings were $12.5 million, compared with $11.5 million in the first quarter of 2022. Billings continue to be impacted by supply chain constraints, which were partially mitigated by price increases.
• GAAP gross loss was $7.1 million. This compares with a GAAP gross loss of $9.3 million in the first quarter of 2022. The second quarter gross loss was negatively impacted by $2.2 million from the discontinuation of a product line.
• Non-GAAP gross loss was $4.2 million. This compares with a non-GAAP gross loss of $8.8 million in the first quarter of 2022.
• GAAP operating expenses were $37.5 million, compared with $39.6 million in the first quarter of 2022.
• Non-GAAP operating expenses were $31.8 million, compared with $35.1 million in the first quarter of 2022. The reduction was partially due to initial cost containment strategies implemented during the quarter.
• GAAP net loss was $44.3 million, or $(0.22) per share. This compares with a GAAP net loss of $49.1 million, or $(0.25) per share in the first quarter of 2022.
• Non-GAAP net loss was $35.7 million, or $(0.18) per share. This compares with a non-GAAP net loss of $44.0 million, $(0.22) per share in the first quarter of 2022.
• The Company had $229.2 million in cash and short-term investments at June 30, 2022, compared with $256.4 million at March 31, 2022.

A reconciliation between historical GAAP and non-GAAP information is provided in the tables below.

Third Quarter 2022 Outlook

“We entered the third quarter with robust demand. Once again, however, supply constraints challenge our ability to fulfill this demand,” said Dr. Tewksbury. “Due to these continuing external factors, we expect billings to be between $10 million and $12 million and revenue to be between $8 million and $11 million. The difference is due to estimated non-cash contra revenue of between $1 million and $2 million related to the Amazon warrants.”

Recent Corporate Highlights

• Boston Dynamics, a global robotics market leader, selected Velodyne’s high performance sensors to enhance and extend the capabilities of their automated, highly mobile robots.
• Helsinki, Finland, selected Velodyne’s Intelligent Infrastructure Solution (IIS) for their traffic safety improvement project.
• Velodyne’s IIS won the GeoBuiz Summit Award for excellence in the Mapping Technology category. The GeoBuiz Summit is held by Geospatial World, a premier media outlet that advances geospatial knowledge in the world economy and society.
• Elected Andy Mattes, former CEO of Coherent, Inc., and former CEO of Diebold Nixdorf, to the Board of Directors.
• Strengthened the leadership team with appointment of Mark Weinswig as Chief Financial Officer.

Conference Call Information

Velodyne will host a conference call and live webcast for analysts and investors at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time today, August 8, 2022. Participants in the United States and Canada can access the call by dialing 844-890-1797 or 412-317-5487. The live and recorded webcast will be accessible on Velodyne’s investor relations website at here. A telephonic replay of the conference call will be available through August 22, 2022. To access the replay, parties in the United States and Canada should call or 412-317-0088 and entering the passcode 1217170.

Billings Metric

The second quarter of 2022 includes the accounting for the warrants associated with the Amazon agreement that was announced on February 4, 2022. The primary impact for the accounting of the Amazon warrants is that reported revenues will diverge from cash flow.

As a result, Velodyne is expanding the financial information it will report to provide more perspective on the company’s underlying business performance by including a billings metric. Billings represents the dollar value of products and services provided during the current period and invoiced to the customer. Management uses this metric to track commercial growth, establish performance targets, and make budgeting and operating decisions. Billings does not include the effect of the contra revenue associated with the Amazon warrants.

Non-GAAP Financial Measures

In addition to our results determined in accordance with generally accepted accounting principles in the United States (GAAP), we believe the non‑GAAP measures of non-GAAP gross profit (loss), non-GAAP gross margin, non-GAAP operating expenses, non‑GAAP operating loss, non-GAAP net loss, and non‑GAAP net loss per share are useful in evaluating our operating performance. Certain of these non-GAAP measures exclude a discontinued product line, stock-based compensation and related employer payroll taxes, litigation settlements and amortization of acquisition-related intangibles assets. We believe that non‑GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance and assists in comparisons with other companies, some of which use similar non‑GAAP information to supplement their GAAP results. The non‑GAAP financial information is presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly‑titled non‑GAAP measures used by other companies. Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures are used in this press release.

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 our financial outlook and market positioning. Forward-looking statements give our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business. You can 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 "anticipate", "estimate", "expect", "project", "plan", "intend", "believe", "may", "will", "should", "can have", "likely" 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: the impact on our operations and financial condition from the effects of the current COVID-19 pandemic both on Velodyne’s business and those of its customers and suppliers; supply chain issues in the semiconductor market; Velodyne’s ability to execute its business plan; the timing of revenue from existing customers, including uncertainties related to the ability of Velodyne’s customers to commercialize their products and the ultimate market acceptance of these products; uncertainties related to Velodyne Lidar’s estimates of the size of the markets for its products and future revenue opportunities, including projects that are not yet signed or awarded; charges related to the vesting of the Amazon Warrant; the rate and degree of market acceptance of Velodyne Lidar’s products in a variety of industries; the success of other competing lidar and sensor-related products and services that exist or may become available; rising costs adversely affecting Velodyne’s profitability; uncertainties related to Velodyne Lidar’s current litigation and potential litigation involving Velodyne Lidar or the validity or enforceability of Velodyne Lidar’s intellectual property; Velodyne Lidar’s ability to partner with and rely on third party manufacturers; general economic and market conditions impacting demand for Velodyne Lidar’s products and services; and changes in applicable laws or regulations.

Given these factors, as well as other variables that may affect Velodyne Lidar’s operating results, you should not rely on forward-looking statements, assume that past financial performance will be a reliable indicator of future performance, or use historical trends to anticipate results or trends in future periods. The forward-looking statements included in this press release relate only to events as of the date hereof. Velodyne Lidar undertakes no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

About Velodyne Lidar, Inc.

Velodyne Lidar (Nasdaq: VLDR, VLDRW) ushered in a new era of autonomous technology with the invention of real-time surround view lidar sensors. Velodyne, the global leader in lidar, is known for its broad portfolio of breakthrough lidar technologies. Velodyne’s revolutionary sensor and software solutions provide flexibility, quality and performance to meet the needs of a wide range of industries, including autonomous vehicles, advanced driver assistance systems (ADAS), robotics, unmanned aerial vehicles (UAV), smart cities and security. Through continuous innovation, Velodyne strives to transform lives and communities by advancing safer mobility for all. For more information, visit www.velodynelidar.com.

VELODYNE LIDAR, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
	June 30,				December 31,
	2022				2021
Assets
Current assets:
Cash and cash equivalents	$	77,024			$	24,064
Short-term investments		152,185				270,357
Accounts receivable, net		7,085				8,881
Inventories, net		13,467				9,299
Prepaid and other current assets		9,545				14,822
Total current assets		259,306				327,423
Property, plant and equipment, net		13,603				14,710
Operating lease right-of-use (ROU) assets		16,557				16,891
Goodwill		1,189				1,189
Intangible assets, net		448				724
Contract assets		9,182				12,962
Other assets		1,557				1,522
Total assets	$	301,842			$	375,421
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	8,445			$	5,105
Accrued expense and other current liabilities		28,133				33,028
Operating lease liabilities, current		2,896				2,623
Contract liabilities, current		5,347				6,348
Total current liabilities		44,821				47,104
Operating lease liabilities, non-current		14,646				15,210
Contract liabilities, non-current		10,740				12,740
Long-term tax liabilities		449				443
Other long-term liabilities		988				661
Total liabilities		71,644				76,158
Commitments and contingencies
Stockholders’ equity:
Preferred stock		—				—
Common stock		22				20
Additional paid-in capital		851,132				825,988
Accumulated other comprehensive loss		(1,203	)			(412	)
Accumulated deficit		(619,753	)			(526,333	)
Total stockholders’ equity		230,198				299,263
Total liabilities and stockholders’ equity	$	301,842			$	375,421

VELODYNE LIDAR, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)
	Three Months Ended												Six Months Ended
	June 30, 2022				March 31, 2022				June 30, 2021				June 30, 2022				June 30, 2021
Revenue:
Product	$	9,652			$	4,362			$	11,970			$	14,014			$	22,563
License and services		1,855				1,818				1,626				3,673				8,759
Total revenue		11,507				6,180				13,596				17,687				31,322
Cost of revenue:
Product		18,347				15,196				19,210				33,543				34,839
License and services		257				267				170				524				349
Total cost of revenue		18,604				15,463				19,380				34,067				35,188
Gross loss		(7,097	)			(9,283	)			(5,784	)			(16,380	)			(3,866	)
Operating expenses:
Research and development		18,757				21,297				17,009				40,054				35,387
Sales and marketing		5,340				6,005				47,176				11,345				54,251
General and administrative		13,430				12,317				19,133				25,747				36,169
Total operating expenses		37,527				39,619				83,318				77,146				125,807
Operating loss		(44,624	)			(48,902	)			(89,102	)			(93,526	)			(129,673	)
Interest income		294				227				109				521				212
Interest expense		—				(3	)			(41	)			(3	)			(77	)
Other income (expense), net		(110	)			4				10,136				(106	)			10,119
Loss before income taxes		(44,440	)			(48,674	)			(78,898	)			(93,114	)			(119,419	)
Provision for (benefit from) income taxes		(141	)			447				339				306				635
Net loss	$	(44,299	)		$	(49,121	)		$	(79,237	)		$	(93,420	)		$	(120,054	)
Net loss per share:
Basic and diluted	$	(0.22	)		$	(0.25	)		$	(0.41	)		$	(0.47	)		$	(0.63	)
Weighted-average shares used in computing net loss per share:
Basic and diluted		198,947,058				198,166,060				193,002,807				198,414,502				191,123,251

VELODYNE LIDAR, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except share and per share data)
(Unaudited)
	Three Months Ended												Six Months Ended
	June 30, 2022				March 31, 2022				June 30, 2021				June 30, 2022				June 30, 2021
Gross loss on GAAP basis	$	(7,097	)		$	(9,283	)		$	(5,784	)		$	(16,380	)		$	(3,866	)
Gross margin on GAAP basis		(62	)%			(150	)%			(43	)%			(93	)%			(12	)%
Discontinued product line		2,151				—				—				2,151				—
Stock-based compensation and related employer payroll taxes		767				528				451				1,295				1,262
Gross loss on non-GAAP basis	$	(4,179	)		$	(8,755	)		$	(5,333	)		$	(12,934	)		$	(2,604	)
Gross margin on non-GAAP basis		(36	)%			(142	)%			(39	)%			(73	)%			(8	)%
Operating expenses on GAAP basis	$	37,527			$	39,619			$	83,318			$	77,146			$	125,807
Stock-based compensation and related employer payroll taxes		(5,600	)			(4,474	)			(53,624	)			(10,074	)			(66,969	)
Legal settlements		—				—				(2,245	)			—				(1,245	)
Amortization of acquisition-related intangible assets		(96	)			(96	)			(97	)			(192	)			(193	)
Operating expenses on non-GAAP basis	$	31,831			$	35,049			$	27,352			$	66,880			$	57,400
Operating loss on GAAP basis	$	(44,624	)		$	(48,902	)		$	(89,102	)		$	(93,526	)		$	(129,673	)
Discontinued product line		2,151				—				—				2,151				—
Stock-based compensation and related employer payroll taxes		6,367				5,002				54,075				11,369				68,231
Legal settlements		—				—				795				—				1,245
Amortization of acquisition-related intangible assets		96				96				97				192				193
Operating loss on non-GAAP basis	$	(36,010	)		$	(43,804	)		$	(34,135	)		$	(79,814	)		$	(60,004	)
Other income (expense), net on GAAP basis	$	(110	)		$	4			$	10,136			$	(106	)		$	10,119
Gain from forgiveness of PPP loan		—				—				(10,124	)			—				(10,124	)
Other income (expense), net on non-GAAP basis	$	(110	)		$	4			$	12			$	(106	)		$	(5	)
Net loss on GAAP basis	$	(44,299	)		$	(49,121	)		$	(79,237	)		$	(93,420	)		$	(120,054	)
Discontinued product line		2,151				—				—				2,151				—
Stock-based compensation and related employer payroll taxes		6,367				5,002				54,075				11,369				68,231
Legal settlements		—				—				795				—				1,245
Amortization of acquisition-related intangible assets		96				96				97				192				193
Gain from forgiveness of PPP loan		—				—				(10,124	)			—				(10,124	)
Net loss on non-GAAP basis	$	(35,685	)		$	(44,023	)		$	(34,394	)		$	(79,708	)		$	(60,509	)
Net loss per share on GAAP basis
Basic and diluted	$	(0.22	)		$	(0.25	)		$	(0.41	)		$	(0.47	)		$	(0.63	)
Weighted-average shares on GAAP basis
Basic and diluted		198,947,058				198,166,060				193,002,807				198,414,502				191,123,251
Net loss per share on non-GAAP basis
Basic and diluted	$	(0.18	)		$	(0.22	)		$	(0.18	)		$	(0.40	)		$	(0.32	)
Weighted-average shares on non-GAAP basis
Basic and diluted		198,947,058				198,166,060				193,002,807				198,414,502				191,123,251

 

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Investor Contact

Jim Fanucchi

Darrow Associates, Inc.

InvestorRelations@velodyne.com

Media Contact:

Codeword

Liv Allen

velodyne@codeword.com

Source: Velodyne Lidar, Inc.

FAQ

What were Velodyne Lidar's Q2 2022 revenues and billings?

Velodyne Lidar reported revenues of $11.5 million and billings of $12.5 million for Q2 2022.

What is the outlook for Velodyne Lidar in Q3 2022?

Velodyne expects billings to be between $10 million and $12 million and revenue between $8 million and $11 million in Q3 2022.

What were the key financial losses reported by Velodyne Lidar for Q2 2022?

Velodyne reported a GAAP net loss of $44.3 million and a GAAP gross loss of $7.1 million for Q2 2022.

How did Velodyne Lidar's operating expenses change in Q2 2022?

Operating expenses were reduced to $37.5 million in Q2 2022 from $39.6 million in Q1 2022.

What impact did Amazon warrants have on Velodyne's financials?

The second quarter financials included a $1.0 million impact from Amazon warrants, showing a divergence between reported revenues and cash flow.