$7.4 million in revenue, up 72% year over year,
and 26% gross margins Record shipments of over 1,460 sensors
Ouster, Inc. (NYSE: OUST) (“Ouster” or the “Company”), a leading
provider of high-resolution digital lidar sensors for the
industrial, smart infrastructure, robotics, and automotive
industries, today announced financial results for the three months
ended June 30, 2021.
Second Quarter 2021 Financial Highlights
- $7.4 million in revenue, up 72% year over year, and up 11% from
first quarter 2021.
- 26% gross margins, up from 9% in second quarter 2020 and
consistent with first quarter 2021.
- Shipped over 1,460 sensors, an increase of 342% year over year,
and a 49% increase over first quarter 2021.
- Increased the total number of Strategic Customer Agreements to
53, collectively representing over $422 million in contracted
revenue opportunity.1
- Net loss increased to $32.0 million, compared to $11.3 million
in second quarter 2020 and $21.0 million in first quarter
2021.
- Adjusted EBITDA loss increased to $14.1 million, up from $9.3
million year over year and $10.0 million in first quarter
2021.
Revenue growth was driven by the increases in sales volume
compared to the first quarter of 2021. Stability in margins was
attributable to decreases in cost per unit as the Company continued
to realize economies of scale in its production capabilities. The
Company maintained margin stability despite ongoing supply chain
challenges relating to the global shortage of semiconductors, and
Ouster’s move towards multi-year agreements with negotiated
customer pricing causing declines in average selling prices (ASPs).
The increase in Adjusted EBITDA loss was primarily due to the
Company’s continued investments in its hardware roadmap, software,
and expansion of its commercial team.
Business Outlook and 2021 Guidance
For the full year 2021, Ouster expects to achieve $33 million to
$35 million of revenue and 25% to 27% gross margins.
Ouster CEO Angus Pacala commented, “We believe our second
quarter results demonstrate that we continue on our path of
becoming the leading lidar company across each of our four
verticals. We believe we have the most differentiated technology
and the most diversified customer base among lidar companies, as
well as a proven ability to execute. Ouster continues to invest in
its long term growth by improving product performance, lowering
costs, and growing revenues.”
Ouster CFO Anna Brunelle added, “We are investing in growing a
best-in-class commercial organization to expand and support our
customer base as well as in developing our highly competitive
product roadmap, which we believe will allow Ouster to pull ahead
in each of our verticals over time.”
____________________________
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.
Conference Call Information
Ouster will host a conference call and live webcast for analysts
and investors at 5 p.m. EST on August 9, 2021 to discuss its
financial results for the second quarter 2021 and business outlook.
To access the call, please register by visiting the website
http://www.directeventreg.com/registration/event/3563829.
Upon registering, each participant will be provided with call
details and a registrant ID. The webcast 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 via phone through August 23,
2021. To access the replay, please dial (800) 585-8367 from the
U.S. or (416) 621-4642 from outside the U.S. and enter the
conference ID number: 3563829.
About Ouster
Ouster (NYSE: OUST) is a leading provider of high-resolution
digital lidar sensors for the industrial, smart infrastructure,
robotics, and automotive industries. Ouster products offer an
excellent combination of price and performance and are built to a
set of requirements that are flexible enough to span hundreds of
use cases and enable revolutionary autonomy across industries.
Ouster has approximately 600 customers in over 50 countries with
offices in the Americas, Europe, Asia-Pacific and the Middle East.
For more information, visit www.ouster.com, or connect with us on
Twitter or LinkedIn.
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 potential revenue opportunity
from Strategic Customer Agreements, financial outlook and market
positioning. Forward-looking statements give Ouster’s current
expectations and projections relating to its financial condition,
competitive position, future results of operations, plans,
objectives, future orders 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: Ouster’s limited operating history and
history of losses; the negotiating power and product standards of
its customers; fluctuations in its operating results; 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 our products for inclusion in
target markets; its future capital needs; its ability to use tax
attributes; its dependence on key third party suppliers, in
particular Benchmark Electronics, Inc., and manufacturers; ability
to maintain inventory and the risk of inventory write-downs;
inaccurate forecasts of market growth; its ability to manage
growth; the creditworthiness of our 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; and other important factors
discussed in the Company’s registration statement on Form S-1 filed
with the Securities and Exchange Commission (the “SEC”) on August
4, 2021, and in other reports the Company files with or furnishes
to the SEC. Any such forward-looking statements represent
management’s 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, other than as required by
law, it disclaims any obligation to do so, even if subsequent
events cause its views to change.
Non-GAAP Financial
Measures
In addition to its results determined in accordance with
generally accepted accounting principles in the United States
(“GAAP”), Ouster believes the non-GAAP measure of Adjusted EBITDA
is useful in evaluating its operating performance. Ouster
calculates Adjusted EBITDA as net loss excluding interest expense
(income), net, other expense (income), net, stock-based
compensation and depreciation and amortization. Ouster believes
that Adjusted EBITDA may be helpful to investors because it
provides consistency and comparability with past financial
performance and may be helpful in comparing 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 included at the end of this press
release.
OUSTER, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(unaudited)
(in thousands, except share
and per share data)
June 30, 2021
December 31, 2020
Assets
Current assets:
Cash and cash equivalents
$
240,148
$
11,362
Restricted cash, current
276
276
Accounts receivable, net
4,671
2,327
Inventory, net
4,721
4,817
Prepaid expenses and other current
assets
6,367
2,441
Total current assets
256,183
21,223
Property and equipment, net
8,562
9,731
Operating lease, right-of-use assets
10,024
11,071
Restricted cash, non-current
1,004
1,004
Other non-current assets
—
3,385
Total assets
$
275,773
$
46,414
Liabilities, redeemable convertible
preferred stock and stockholders’ equity / (deficit)
Current liabilities:
Accounts payable
$
3,825
$
6,894
Accrued and other current liabilities
6,259
4,121
Short-term debt
—
7,130
Operating lease liability, current
portion
2,895
2,772
Total current liabilities
12,979
20,917
Operating lease liability, long-term
portion
10,422
11,908
Warrant liabilities (At June 30, 2021 and
December 31, 2020 related party $5,154 and Nil, respectively)
25,471
49,293
Other non-current liabilities
899
978
Total liabilities
49,771
83,096
Commitments and contingencies (Note 7)
Redeemable convertible preferred stock,
$0.0001 par value per share; Nil and 131,411,372 shares authorized
at June 30, 2021 and December 31, 2020; Nil and 88,434,754 shares
issued and outstanding at June 30, 2021 and December 31, 2020,
respectively (aggregate liquidation preference of Nil and $41,791
at June 30, 2021 and December 31, 2020, respectively)
—
39,225
Stockholders’ equity / (deficit):
Common stock, $0.0001 par value;
1,000,000,000 and 210,956,516 shares authorized at June 30, 2021
and December 31, 2020, respectively; 161,449,205 and 33,327,294
issued and outstanding at June 30, 2021 and December 31, 2020,
respectively
16
—
Preferred stock, $0.0001 par value;
100,000,000 and Nil shares authorized at June 30, 2021 and December
31, 2020, respectively; Nil and Nil issued and outstanding at June
30, 2021 and December 31, 2020, respectively
—
—
Additional paid-in capital
488,329
133,468
Accumulated deficit
(262,343
)
(209,375
)
Total stockholders’ equity / (deficit)
226,002
(75,907
)
Total liabilities, redeemable convertible
preferred stock, and stockholders’ equity / (deficit)
$
275,773
$
46,414
OUSTER, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(unaudited)
(in thousands, except share
and per share data)
Three Months Ended June
30,
Six Months Ended June
30,
2021
2020
2021
2020
Product revenue
$
7,360
$
2,290
$
13,971
$
4,590
Service revenue
—
1,991
—
1,991
Total revenue
7,360
4,281
13,971
6,581
Cost of product revenue
Cost of product
5,465
3,862
10,333
8,078
Cost of services
—
26
—
26
Total cost of revenue
5,465
3,888
10,333
8,104
Gross profit (loss)
1,895
393
3,638
(1,523
)
Operating expenses:
Research and development
6,474
5,678
11,186
10,152
Sales and marketing
4,614
1,685
8,040
3,911
General and administrative
12,197
3,678
22,104
7,344
Total operating expenses
23,285
11,041
41,330
21,407
Loss from operations
(21,390
)
(10,648
)
(37,692
)
(22,930
)
Other (expense) income:
Interest income
139
1
140
23
Interest expense
—
(398
)
(504
)
(1,675
)
Other income (expense), net
(10,760
)
(267
)
(14,912
)
(5,423
)
Total other expense, net
(10,621
)
(664
)
(15,276
)
(7,075
)
Loss before income taxes
(32,011
)
(11,312
)
(52,968
)
(30,005
)
Provision for income tax expense
—
—
—
—
Net loss and comprehensive loss
$
(32,011
)
$
(11,312
)
$
(52,968
)
$
(30,005
)
Net loss per common share, basic and
diluted
$
(0.21
)
$
(1.02
)
$
(0.50
)
$
(2.23
)
Weighted-average shares used to compute
basic and diluted net loss per share
155,923,689
11,045,644
106,070,590
13,452,766
OUSTER, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)
Six Months Ended June
30,
2021
2020
CASH FLOWS FROM OPERATING
ACTIVITIES
Net loss
$
(52,968
)
$
(30,005
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
2,254
1,725
Stock-based compensation
11,410
635
Change in right-of-use asset
1,047
1,075
Interest expense on notes and convertible
debt
36
962
Amortization of debt issuance costs and
debt discount
250
146
Change in fair value of warrant
liabilities
14,898
115
Change in fair value of derivative
liability
—
5,308
Inventory write down
144
1,767
Changes in operating assets and
liabilities:
Accounts receivable
(2,344
)
(210
)
Inventory
(48
)
(2,933
)
Prepaid expenses and other assets
(37
)
130
Accounts payable
(3,317
)
(831
)
Accrued and other liabilities
1,692
(2,173
)
Operating lease liability
(1,363
)
20
Net cash used in operating activities
(28,346
)
(24,269
)
CASH FLOWS FROM INVESTING
ACTIVITIES
Purchases of property and equipment
(659
)
(1,775
)
Net cash used in investing activities
(659
)
(1,775
)
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
)
—
Proceeds from exercise of stock
options
504
2
Proceeds from issuance of Series B
redeemable convertible preferred stock, net of issuance cost of
$265
—
20,631
Net cash provided by financing
activities
257,791
20,633
Net increase (decrease) in cash, cash
equivalents and restricted cash
228,786
(5,411
)
Cash, cash equivalents and restricted cash
at beginning of period
12,642
18,405
Cash, cash equivalents and restricted cash
at end of period
$
241,428
$
12,994
OUSTER, INC.
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
(unaudited)
(in thousands)
Three Months Ended June
30,
Six Months Ended June
30,
2021
2020
2021
2020
GAAP net loss
$
(32,011
)
$
(11,312
)
$
(52,968
)
$
(30,005
)
Interest expense (income), net
(139
)
397
364
1,652
Other expense (income), net
10,760
267
14,912
5,423
Stock-based compensation (1)
6,154
460
11,410
635
Non-GAAP operating loss
(15,236
)
(10,188
)
(26,282
)
(22,295
)
Depreciation and amortization expense
1,160
903
2,254
1,725
Adjusted EBITDA
$
(14,076
)
$
(9,285
)
$
(24,028
)
$
(20,570
)
(1) Stock-based compensation for the six months ended June
30, 2021, in cost of revenue, research and development, sales and
marketing and general and administrative expenses were $0.3
million, $2.2 million, $1 million and $7.9 million, respectively,
and $0.1 million, $0.3 million, $0.1 million and $0.1 million,
respectively, for the same period in the prior year.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210809005766/en/
For Investors Sarah Ewing investors@ouster.io
For Media Heather Shapiro press@ouster.io
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