Velodyne Lidar Reports Third Quarter 2022 Financial Results
Velodyne Lidar reported Q3 2022 revenue of $9.6 million, down from $11.5 million in Q2, with total billings flat at $12.5 million. The company experienced a GAAP net loss of $41.6 million or $(0.19) per share, an improvement from $(0.22) per share in Q2. A gross loss of $10.9 million was attributed to inventory reserves and terminated contracts. Looking ahead, Velodyne anticipates Q4 revenues between $12 million and $14 million. In corporate highlights, they announced a merger with Ouster and acquired Bluecity.
- Anticipated Q4 2022 billings between $13 million and $15 million.
- Progress in gross margin improvement plans.
- Successful acquisition of software company Bluecity.
- Q3 revenue decreased from $11.5 million in Q2 to $9.6 million.
- GAAP gross loss increased to $10.9 million.
- GAAP net loss of $41.6 million, despite a slight improvement in loss per share.
Reported Q3 2022 billings of
“We delivered another solid quarter, experiencing strong demand while making significant progress on initiatives to improve our gross margin and lower our cost structure,” said Dr.
“A critical element of our previously announced gross margin improvement plan was the transition of Velodyne’s production to our contract manufacturer in
“In addition, yesterday we announced a proposed all-stock merger with Ouster to accelerate the adoption of lidar in fast-growing global markets while strengthening our financial position,” continued
Third Quarter 2022 Financial Summary
-
Total revenue for the third quarter of 2022 was approximately
and includes an approximately$9.6 million contra revenue impact from the Amazon warrant. This compares with total revenue of$2.9 million , which included an approximately$11.5 million impact from the Amazon warrant in the second quarter.$1.0 million -
Billings were
, flat with the second quarter. Please see the Billings Metric definition below.$12.5 million -
GAAP gross loss was
. This compares with a GAAP gross loss of$10.9 million in the second quarter of 2022. The third quarter gross loss was negatively impacted by$7.1 million from inventory reserves and losses related to a product transition and$4.6 million from terminated contracts.$2.4 million -
Non-GAAP gross loss was
. This compares with a non-GAAP gross loss of$3.3 million in the second quarter of 2022.$4.2 million -
GAAP operating expenses were
, compared with$31.4 million in the second quarter of 2022.$37.5 million -
Non-GAAP operating expenses were
, compared with$25.1 million in the second quarter of 2022. The reduction reflects the implementation of the ongoing cost rationalization plan.$31.8 million -
GAAP net loss was
, or$41.6 million per share. This compares with a GAAP net loss of$(0.19) , or$44.3 million per share, in the second quarter of 2022.$(0.22) -
Non-GAAP net loss was
, or$27.6 million per share. This compares with a non-GAAP net loss of$(0.13) , or$35.7 million per share, in the second quarter of 2022.$(0.18) -
The Company had
in cash and short-term investments as of$220.1 million September 30, 2022 , compared with as of$229.2 million June 30, 2022 .
A reconciliation between GAAP and non-GAAP information is provided in the tables below.
Fourth Quarter 2022 Outlook
Demand remains robust across our entire business. We expect billings for the fourth quarter to be between
“Our gross margin improvement plans are in full motion and, when combined with the company-wide cost rationalization efforts, we are reducing cash usage and driving toward breakeven,” said
Recent Corporate Highlights
- Acquired software company Bluecity, further strengthening our portfolio of solutions for intelligent infrastructure.
-
Announced the proposed merger of equals with
Ouster, Inc. (NYSE: OUST) onNovember 7, 2022 . - Signed a multi-year sales agreement with Stanley Robotics to provide our Puck and Velarray M1600 lidar sensors for an automated valet parking solution.
-
Signed a multi-year sales agreement with Yamaha Motor to provide our Puck lidar sensors for eve autonomy’s autonomous goods transport service. eve autonomy is a joint venture between Yamaha Motor and
Tier IV Incorporated and provides logistical support for factories to improve efficiency and safety. - Signed a new multi-year agreement with long-time partner Visimind to provide Velodyne’s Puck and Ultra Puck lidar sensors for multiple applications. Visimind is a provider of airborne and portable mapping solutions for major European energy distributors.
-
Made significant progress on the transition of manufacturing to our low-cost partner in
Thailand .
Conference Call Information
Velodyne will host a conference call and live webcast for analysts and investors at
Billings Metric
The third quarter of 2022 includes the accounting for the warrants associated with the Amazon agreement that was announced on
As a result, Velodyne is expanding the financial information provided 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 budgetary and operating decisions. Billings excludes the effect of the contra revenue recognized in connection with the Amazon warrants.
Non-GAAP Financial Measures
In addition to our results determined in accordance with generally accepted accounting principles 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 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
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.
About
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited)
|
|||||||
|
|
|
|
||||
|
|
2022 |
|
|
|
2021 |
|
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
51,487 |
|
|
$ |
24,064 |
|
Short-term investments |
|
168,570 |
|
|
|
270,357 |
|
Accounts receivable, net |
|
6,129 |
|
|
|
8,881 |
|
Inventories, net |
|
11,498 |
|
|
|
9,299 |
|
Prepaid and other current assets |
|
8,201 |
|
|
|
14,822 |
|
Total current assets |
|
245,885 |
|
|
|
327,423 |
|
Property, plant and equipment, net |
|
11,684 |
|
|
|
14,710 |
|
Operating lease right-of-use (ROU) assets |
|
16,727 |
|
|
|
16,891 |
|
|
|
1,189 |
|
|
|
1,189 |
|
Intangible assets, net |
|
402 |
|
|
|
724 |
|
Contract assets |
|
9,182 |
|
|
|
12,962 |
|
Other assets |
|
851 |
|
|
|
1,522 |
|
Total assets |
$ |
285,920 |
|
|
$ |
375,421 |
|
Liabilities and Stockholders’ Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
5,001 |
|
|
$ |
5,105 |
|
Accrued expense and other current liabilities |
|
31,074 |
|
|
|
33,028 |
|
Operating lease liabilities, current |
|
3,062 |
|
|
|
2,623 |
|
Contract liabilities, current |
|
5,456 |
|
|
|
6,348 |
|
Total current liabilities |
|
44,593 |
|
|
|
47,104 |
|
Operating lease liabilities, non-current |
|
14,674 |
|
|
|
15,210 |
|
Contract liabilities, non-current |
|
9,841 |
|
|
|
12,740 |
|
Long-term tax liabilities |
|
459 |
|
|
|
443 |
|
Other long-term liabilities |
|
814 |
|
|
|
661 |
|
Total liabilities |
|
70,381 |
|
|
|
76,158 |
|
Commitments and contingencies |
|
|
|
||||
Stockholders’ equity: |
|
|
|
||||
Preferred stock |
|
— |
|
|
|
— |
|
Common stock |
|
23 |
|
|
|
20 |
|
Additional paid-in capital |
|
877,935 |
|
|
|
825,988 |
|
Accumulated other comprehensive loss |
|
(1,103 |
) |
|
|
(412 |
) |
Accumulated deficit |
|
(661,316 |
) |
|
|
(526,333 |
) |
Total stockholders’ equity |
|
215,539 |
|
|
|
299,263 |
|
Total liabilities and stockholders’ equity |
$ |
285,920 |
|
|
$ |
375,421 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share data) (Unaudited)
|
|||||||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue: |
|
|
|
|
|
|
|
|
|
||||||||||
Product |
$ |
7,442 |
|
|
$ |
9,652 |
|
|
$ |
11,782 |
|
|
$ |
21,456 |
|
|
$ |
34,345 |
|
License and services |
|
2,199 |
|
|
|
1,855 |
|
|
|
1,278 |
|
|
|
5,872 |
|
|
|
10,037 |
|
Total revenue |
|
9,641 |
|
|
|
11,507 |
|
|
|
13,060 |
|
|
|
27,328 |
|
|
|
44,382 |
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
||||||||||
Product |
|
20,353 |
|
|
|
18,347 |
|
|
|
17,716 |
|
|
|
53,896 |
|
|
|
52,555 |
|
License and services |
|
165 |
|
|
|
257 |
|
|
|
84 |
|
|
|
689 |
|
|
|
433 |
|
Total cost of revenue |
|
20,518 |
|
|
|
18,604 |
|
|
|
17,800 |
|
|
|
54,585 |
|
|
|
52,988 |
|
Gross loss |
|
(10,877 |
) |
|
|
(7,097 |
) |
|
|
(4,740 |
) |
|
|
(27,257 |
) |
|
|
(8,606 |
) |
Operating expenses: |
|
|
|
|
|
|
|
|
|
||||||||||
Research and development |
|
16,918 |
|
|
|
18,757 |
|
|
|
20,221 |
|
|
|
56,972 |
|
|
|
55,608 |
|
Sales and marketing |
|
4,878 |
|
|
|
5,340 |
|
|
|
6,547 |
|
|
|
16,223 |
|
|
|
60,798 |
|
General and administrative |
|
9,583 |
|
|
|
13,430 |
|
|
|
23,271 |
|
|
|
35,330 |
|
|
|
59,440 |
|
Total operating expenses |
|
31,379 |
|
|
|
37,527 |
|
|
|
50,039 |
|
|
|
108,525 |
|
|
|
175,846 |
|
Operating loss |
|
(42,256 |
) |
|
|
(44,624 |
) |
|
|
(54,779 |
) |
|
|
(135,782 |
) |
|
|
(184,452 |
) |
Interest income |
|
732 |
|
|
|
294 |
|
|
|
109 |
|
|
|
1,253 |
|
|
|
321 |
|
Interest expense |
|
— |
|
|
|
— |
|
|
|
(6 |
) |
|
|
(3 |
) |
|
|
(83 |
) |
Other income (expense), net |
|
2 |
|
|
|
(110 |
) |
|
|
(22 |
) |
|
|
(104 |
) |
|
|
10,097 |
|
Loss before income taxes |
|
(41,522 |
) |
|
|
(44,440 |
) |
|
|
(54,698 |
) |
|
|
(134,636 |
) |
|
|
(174,117 |
) |
Provision for (benefit from) income taxes |
|
41 |
|
|
|
(141 |
) |
|
|
14 |
|
|
|
347 |
|
|
|
649 |
|
Net loss |
$ |
(41,563 |
) |
|
$ |
(44,299 |
) |
|
$ |
(54,712 |
) |
|
$ |
(134,983 |
) |
|
$ |
(174,766 |
) |
Net loss per share: |
|
|
|
|
|
|
|
|
|
||||||||||
Basic and diluted |
$ |
(0.19 |
) |
|
$ |
(0.22 |
) |
|
$ |
(0.28 |
) |
|
$ |
(0.66 |
) |
|
$ |
(0.91 |
) |
Weighted-average shares used in computing net loss per share: |
|
|
|
|
|
|
|
|
|
||||||||||
Basic and diluted |
|
213,518,699 |
|
|
|
198,947,058 |
|
|
|
196,204,671 |
|
|
|
203,504,556 |
|
|
|
192,835,674 |
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In thousands, except share and per share data) (Unaudited)
|
|||||||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross loss on GAAP basis |
$ |
(10,877 |
) |
|
$ |
(7,097 |
) |
|
$ |
(4,740 |
) |
|
$ |
(27,257 |
) |
|
$ |
(8,606 |
) |
Gross margin on GAAP basis |
|
(113 |
)% |
|
|
(62 |
)% |
|
|
(36 |
)% |
|
|
(100 |
)% |
|
|
(19 |
)% |
Discontinued product line |
|
— |
|
|
|
2,151 |
|
|
|
— |
|
|
|
2,151 |
|
|
|
— |
|
Inventory reserves and losses related to product transition |
|
4,608 |
|
|
|
— |
|
|
|
— |
|
|
|
4,608 |
|
|
|
— |
|
Terminated contract expense |
|
2,436 |
|
|
|
— |
|
|
|
— |
|
|
|
2,436 |
|
|
|
— |
|
Stock-based compensation and related employer payroll taxes |
|
565 |
|
|
|
767 |
|
|
|
545 |
|
|
|
1,860 |
|
|
|
1,807 |
|
Gross loss on non-GAAP basis |
$ |
(3,268 |
) |
|
$ |
(4,179 |
) |
|
$ |
(4,195 |
) |
|
$ |
(16,202 |
) |
|
$ |
(6,799 |
) |
Gross margin on non-GAAP basis |
|
(34 |
)% |
|
|
(36 |
)% |
|
|
(32 |
)% |
|
|
(59 |
)% |
|
|
(15 |
)% |
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating expenses on GAAP basis |
$ |
31,379 |
|
|
$ |
37,527 |
|
|
$ |
50,039 |
|
|
$ |
108,525 |
|
|
$ |
175,846 |
|
Terminated contract expense |
|
(1,064 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1,064 |
) |
|
|
— |
|
Stock-based compensation and related employer payroll taxes |
|
(4,370 |
) |
|
|
(5,600 |
) |
|
|
(16,262 |
) |
|
|
(14,444 |
) |
|
|
(83,233 |
) |
Legal settlements |
|
— |
|
|
|
— |
|
|
|
(275 |
) |
|
|
— |
|
|
|
(1,520 |
) |
Amortization of acquisition-related intangible assets |
|
— |
|
|
|
(96 |
) |
|
|
(96 |
) |
|
|
(192 |
) |
|
|
(288 |
) |
Severance |
|
(894 |
) |
|
|
— |
|
|
|
— |
|
|
|
(894 |
) |
|
|
— |
|
Operating expenses on non-GAAP basis |
$ |
25,051 |
|
|
$ |
31,831 |
|
|
$ |
33,406 |
|
|
$ |
91,931 |
|
|
$ |
90,805 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating loss on GAAP basis |
$ |
(42,256 |
) |
|
$ |
(44,624 |
) |
|
$ |
(54,779 |
) |
|
$ |
(135,782 |
) |
|
$ |
(184,452 |
) |
Discontinued product line |
|
— |
|
|
|
2,151 |
|
|
|
— |
|
|
|
2,151 |
|
|
|
— |
|
Inventory reserves and losses related to product transition |
|
4,608 |
|
|
|
— |
|
|
|
— |
|
|
|
4,608 |
|
|
|
— |
|
Terminated contract expense |
|
3,500 |
|
|
|
— |
|
|
|
— |
|
|
|
3,500 |
|
|
|
— |
|
Stock-based compensation and related employer payroll taxes |
|
4,934 |
|
|
|
6,367 |
|
|
|
16,807 |
|
|
|
16,303 |
|
|
|
85,040 |
|
Legal settlements |
|
— |
|
|
|
— |
|
|
|
275 |
|
|
|
— |
|
|
|
1,520 |
|
Amortization of acquisition-related intangible assets |
|
— |
|
|
|
96 |
|
|
|
96 |
|
|
|
192 |
|
|
|
288 |
|
Severance |
|
894 |
|
|
|
— |
|
|
|
— |
|
|
|
894 |
|
|
|
— |
|
Operating loss on non-GAAP basis |
$ |
(28,320 |
) |
|
$ |
(36,010 |
) |
|
$ |
(37,601 |
) |
|
$ |
(108,134 |
) |
|
$ |
(97,604 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Other income (expense), net on GAAP basis |
$ |
2 |
|
|
$ |
(110 |
) |
|
$ |
(22 |
) |
|
$ |
(104 |
) |
|
$ |
10,097 |
|
Gain from forgiveness of PPP loan |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(10,124 |
) |
Other income (expense), net on non-GAAP basis |
$ |
2 |
|
|
$ |
(110 |
) |
|
$ |
(22 |
) |
|
$ |
(104 |
) |
|
$ |
(27 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Net loss on GAAP basis |
$ |
(41,563 |
) |
|
$ |
(44,299 |
) |
|
$ |
(54,712 |
) |
|
$ |
(134,983 |
) |
|
$ |
(174,766 |
) |
Discontinued product line |
|
— |
|
|
|
2,151 |
|
|
|
— |
|
|
|
2,151 |
|
|
|
— |
|
Inventory reserves and losses related to product transition |
|
4,608 |
|
|
|
— |
|
|
|
— |
|
|
|
4,608 |
|
|
|
— |
|
Terminated contract expense |
|
3,500 |
|
|
|
— |
|
|
|
— |
|
|
|
3,500 |
|
|
|
— |
|
Stock-based compensation and related employer payroll taxes |
|
4,934 |
|
|
|
6,367 |
|
|
|
16,807 |
|
|
|
16,303 |
|
|
|
85,040 |
|
Legal settlements |
|
— |
|
|
|
— |
|
|
|
275 |
|
|
|
— |
|
|
|
1,520 |
|
Amortization of acquisition-related intangible assets |
|
— |
|
|
|
96 |
|
|
|
96 |
|
|
|
192 |
|
|
|
288 |
|
Severance |
|
894 |
|
|
|
— |
|
|
|
— |
|
|
|
894 |
|
|
|
— |
|
Gain from forgiveness of PPP loan |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(10,124 |
) |
Net loss on non-GAAP basis |
$ |
(27,627 |
) |
|
$ |
(35,685 |
) |
|
$ |
(37,534 |
) |
|
$ |
(107,335 |
) |
|
$ |
(98,042 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Net loss per share on GAAP basis |
|
|
|
|
|
|
|
|
|
||||||||||
Basic and diluted |
$ |
(0.19 |
) |
|
$ |
(0.22 |
) |
|
$ |
(0.28 |
) |
|
$ |
(0.66 |
) |
|
$ |
(0.91 |
) |
Weighted-average shares on GAAP basis |
|
|
|
|
|
|
|
|
|
||||||||||
Basic and diluted |
|
213,518,699 |
|
|
|
198,947,058 |
|
|
|
196,204,671 |
|
|
|
203,504,556 |
|
|
|
192,835,674 |
|
Net loss per share on non-GAAP basis |
|
|
|
|
|
|
|
|
|
||||||||||
Basic and diluted |
$ |
(0.13 |
) |
|
$ |
(0.18 |
) |
|
$ |
(0.19 |
) |
|
$ |
(0.53 |
) |
|
$ |
(0.51 |
) |
Weighted-average shares on non-GAAP basis |
|
|
|
|
|
|
|
|
|
||||||||||
Basic and diluted |
|
213,518,699 |
|
|
|
198,947,058 |
|
|
|
196,204,671 |
|
|
|
203,504,556 |
|
|
|
192,835,674 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20221108005778/en/
Investor Contact
InvestorRelations@velodyne.com
Media Contact:
PR@velodyne.com
Source:
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