$11.9 million in revenue in Q4, up 53%
sequentially, with industry-leading 30% gross margins
Record shipments of over 2,400 sensors in Q4,
nearly tripling year-over-year
Delivers on Full Year 2021 guidance with $34
million of revenue and 27% gross margins
Ouster, Inc. (NYSE: OUST) (“Ouster” or the “Company”), a leading
provider of high-resolution digital lidar sensors for the
automotive, industrial, smart infrastructure, and robotics
industries, today announced financial results for the three and
twelve months ended December 31, 2021.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20220215006123/en/
Ouster delivers on 2021 guidance
following record fourth quarter (Graphic: Business Wire)
Fourth Quarter 2021 Financial Highlights
- $11.9 million in revenue, up 86% year over year.
- 30% gross margins, compared to 31% in fourth quarter 2020, and
24% in third quarter 2021.
- Shipped over 2,400 sensors in the fourth quarter, up 198% year
over year.
- Increased the number of Strategic Customer Agreements to 68, up
from 62 in the prior quarter, collectively representing
approximately $500 million in contracted revenue opportunity
through 2025.1
- Net loss decreased to $28 million, compared to $57 million in
fourth quarter 2020.
- Adjusted EBITDA2 loss increased to $24 million, compared to $9
million in fourth quarter 2020.
Investments in scaling the commercial organization as well as
advancements in hardware and firmware were key drivers of revenue
growth in the fourth quarter. The Company signed 68 Strategic
Customer Agreements (SCAs) through the end of the fourth quarter,
up from 10 SCAs as of the end of 2020. Ouster successfully launched
its new OS sensors equipped with the L2X chip, which unlocks new
customer opportunities across all verticals. The Company achieved
positive gross margins of 30% in the fourth quarter, due primarily
to increased sales volume, in spite of continued purchase price
variance related to the ongoing headwinds stemming from industry
supply chain challenges.
Full Year 2021 Financial Highlights
- Achieved full year 2021 guidance with $34 million in revenue
and 27% gross margins.
- Shipped over 6,475 sensors in 2021, totaling over 10,000
sensors shipped to date.
- Net loss decreased to $94 million, compared to $107 million in
2020.
- Adjusted EBITDA loss of $67 million, compared to $36 million in
2020.
“This year was a turning point for Ouster as we scaled up our
commercial engine, proved our high-volume manufacturing
capabilities, accelerated our automotive roadmap, and won key
customers across each of our target vertical markets. We expect
2022 to be even stronger, with important product and customer
milestones that we are excited to share throughout the year,” said
Ouster CEO Angus Pacala. “Ouster’s diversified, digital lidar
strategy has taken stride. We have a clear plan to grow our
business, further differentiate our product offerings, capture
market share and extend our market leadership.”
Business Updates
Accelerated Automotive Momentum:
Ouster established Ouster Automotive to advance negotiations with
global automotive OEMs for series production programs with
anticipated 2025 to 2026 start of production. The Company also
delivered on key milestones as part of its strategic OEM
development deal, shipping prototypes in the fourth quarter of
2021.
Continued Customer Traction: In
2021, Ouster sold sensors to over 600 customers3, including 40
distributors, and signed 58 additional multi-year SCAs. In 2021,
the automotive vertical accounted for 34% of sensors shipped. The
industrial vertical accounted for 25% of sensors shipped. Robotics
and Smart Infrastructure verticals accounted for 26% and 15% of
sensors shipped, respectively.
Delivered on Product Roadmap:
Ouster reached a substantial milestone with the introduction of its
L2X chip, which doubled both the processing power and data output
of its OS sensors, opening up additional market opportunities and
revenue in the fourth quarter and beyond. The Company also
introduced the Ouster Automotive DF series, its true solid-state
lidar sensors for high-volume automotive programs for anticipated
start of production in 2025.
2022 Outlook
For the full year 2022, Ouster aims to double revenue, targeting
a range of $65 million to $85 million. The Company also expects to
maintain positive gross margins, targeting a range of 25% to
30%.
Ouster expects key catalysts for growth to drive product volume
and increase revenue in 2022 and subsequent years. This includes at
least one OEM production program award expected this year, the
upcoming launch of its L3 chip, critical safety certifications to
displace legacy sensors across its verticals, and a more robust
software ecosystem, all of which is expected to accelerate lidar
adoption, expand market opportunities and provide customized
solutions for its customers.
“Ouster had a breakout year in 2021, reinforcing our view that
we chose the right technology with CMOS digital lidar, and the
right strategy with our multi-market approach,” said Ouster CFO
Anna Brunelle. “As a result of our meaningful customer growth, and
68 established SCAs through 2021, we are building greater
predictability in our business, and aim to double revenue in
2022.”
Conference Call Information
Ouster will host a conference call and live webcast for analysts
and investors at 5 p.m. EST today, February 15, to discuss its
financial results and business outlook. To access the call, please
register by visiting the website
https://conferencingportals.com/event/XOJjOxLp.
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
March 1, 2022. To access the replay, please dial (800) 770-2030
from the U.S. or (647) 362-9199 from outside the U.S. and enter the
conference ID number: 93428.
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
approximately 600 customers in over 50 countries. Ouster is
headquartered in San Francisco, CA 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 technological advancements,
competitive edge, strategic partnerships and outlook, its ability
to meet its revenue goals and guidance, supply requirements, the
scalability of its production, its strategy, and market positioning
as it relates to its brand and competitors. 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 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” 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; ability
to maintain inventory and the risk of inventory write-downs;
inaccurate forecasts of market growth; its ability to manage
growth; the creditworthiness of 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 final prospectus dated August 19, 2021,
and in other reports the Company files with or furnishes to the
Securities and Exchange Commission. 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 required by
law, even if subsequent events cause its views to change.
The financials herein are unaudited and subject to the
finalization of year-end audit procedures. 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 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 expense, depreciation and amortization and
non-recurring acquisition related expenses. 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 comparison 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.
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 U.S. GAAP.
3 "Customer” is defined as having purchased a sensor within the
past twelve months ended December 31, 2021.
OUSTER, INC. CONSOLIDATED BALANCE SHEETS
(unaudited) (in thousands) December 31
2021
2020
Assets Current assets: Cash and cash equivalents
$
182,644
$
11,362
Restricted cash, current
977
276
Accounts receivable, net
10,723
2,327
Inventory
7,448
4,817
Prepaid expenses and other current assets
5,566
2,441
Total current assets
207,358
21,223
Property and equipment, net
10,054
9,731
Operating lease, right-of-use assets
15,156
11,071
Goodwill
51,076
—
Intangible assets, net
22,652
—
Restricted cash, non-current
1,035
1,004
Other non-current assets
371
3,385
Total assets
$
307,702
$
46,414
Liabilities, redeemable convertible preferred stock and
stockholder's deficit Current liabilities: Accounts payable
$
4,863
$
6,894
Accrued and other current liabilities
14,173
4,121
Short-term debt
—
7,130
Operating lease liability, current portion
3,067
2,772
Total current liabilities
22,103
20,917
Operating lease liability, long term portion
16,208
11,908
Warrant liabilities
7,626
49,293
Other non-current liabilities
1,065
978
Total liabilities
47,002
83,096
Commitments and contingencies Redeemable convertible
preferred stock
—
39,225
Stockholders' equity (deficit): Common stock
17
—
Additional paid-in capital
564,045
133,468
Accumulated deficit
(303,356
)
(209,375
)
Accumulated other comprehensive loss
(6
)
—
Total stockholder's equity (deficit)
260,700
(75,907
)
Total liabilties, redeemable convertible preferred stock, and
stockholder's deficit
$
307,702
$
46,414
OUSTER, INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS (unaudited) (in thousands, except
share and per share data) Three Months Ended Dec 31,
Year Ended December 31,
2021
2020
2021
2020
Revenue Product revenue
$
11,852
$
6,362
$
33,578
$
16,886
Service revenue
-
14
—
2,018
Total revenue
11,852
6,376
33,578
18,904
Cost of revenue Cost of product
8,280
4,403
24,492
17,365
Cost of services
-
-
—
26
Total cost of revenue
8,280
4,403
24,492
17,391
Gross profit
3,572
1,973
9,086
1,513
Operating expenses: Research and development
15,003
4,289
34,579
23,317
Sales and marketing
7,481
2,693
22,258
8,998
General and administrative
15,782
9,104
51,959
20,960
Total operating expenses
38,266
16,086
108,796
53,275
Loss from operations
(34,694
)
(14,113
)
(99,710
)
(51,762
)
Other (expense) income: Interest income
166
-
471
24
Interest expense
-
(321
)
(504
)
(2,517
)
Other income (expense), net
3,390
(42,351
)
2,968
(52,150
)
Total other expense, net
3,556
(42,672
)
2,935
(54,643
)
Loss before income taxes
(31,138
)
(56,785
)
(96,775
)
(106,405
)
Provision for (benefit from) income taxes
(2,794
)
375
(2,794
)
375
Net loss
(28,344
)
(57,160
)
(93,981
)
(106,780
)
Other comprehensive loss Foreign currency translation adjustments
(6
)
—
(6
)
-
Total comprehensive loss
(28,350
)
(57,160
)
(93,987
)
(106,780
)
Net loss per common share, basic
$
(0.17
)
$
(2.37
)
$
(0.70
)
$
(5.98
)
Weighted-average common shares outstanding, basic
165,853,915
24,130,953
133,917,571
17,858,976
OUSTER, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited) (in thousands)
For the Years Ended December
31,
2021
2020
CASH FLOWS FROM OPERATING ACTIVITIES Net loss
$
(93,981
)
$
(106,780
)
Adjustments to reconcile net loss to net cash used in operating
activities: Depreciation and amortization
5,477
3,718
Stock-based compensation
25,363
12,057
Deferred income taxes
(2,477
)
-
Change in right-of-use asset
2,180
1,887
Interest expense on notes and convertible debt
36
1,030
Amortization of debt issuance costs and debt discount
250
258
Change in fair value of warrant liabilities
(2,947
)
48,440
Change in fair value of derivative liability
-
5,308
Gain on extinguishment of tranche right liability
-
(1,610
)
Provision for doubtful accounts
379
67
Inventory write down
808
797
Changes in operating assets and liabilities: Accounts receivable
(8,007
)
(1,457
)
Inventory
(3,440
)
(3,146
)
Prepaid expenses and other assets
854
(1,442
)
Accounts payable
(2,442
)
144
Accrued and other liabilities
9,060
(417
)
Operating lease liability
(1,670
)
(971
)
Net cash used in operating activities
(70,557
)
(42,117
)
CASH FLOWS FROM INVESTING ACTIVITIES Purchases of property
and equipment
(4,283
)
(3,509
)
Acquisition, net of cash acquired
(10,946
)
-
Net cash used in investing activities
(15,229
)
(3,509
)
CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from the
merger and private offering
291,442
-
Payment of offering costs
(27,124
)
-
Repayment of debt
(7,000
)
(3,000
)
Proceeds from issuance of promissory notes to related parties
5,000
-
Repayment of promissory notes to related parties
(5,000
)
-
Repurchase of common stock
(45
)
-
Proceeds from exercise of stock options
526
1,337
Proceeds from exercise of warrants
1
-
Proceeds from issuance of redeemable convertible preferred stock,
net off issuance cost of $265
-
41,526
Net cash provided by financing activities
257,800
39,863
Net increase (decrease) in cash, cash equivalents and restricted
cash
172,014
(5,763
)
Cash, cash equivalents and restricted cash at beginning of period
12,642
18,405
Cash, cash equivalents and restricted cash at end of period
$
184,656
$
12,642
OUSTER, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES (unaudited) (in thousands)
Three Months Ended December 31, Year Ended December
31,
2021
2020
2021
2020
GAAP net loss
$
(28,344
)
$
(57,160
)
$
(93,981
)
$
(106,780
)
Interest expense (income), net
(166
)
321
33
2,493
Other expense (income), net
(3,390
)
42,351
(2,968
)
52,150
Stock-based compensation
6,805
4,166
25,363
12,057
Income taxes
(2,794
)
375
(2,794
)
375
Non-GAAP operating loss
(27,889
)
(9,947
)
(74,347
)
(39,705
)
Depreciation and amortization expense
2,049
1,013
5,477
3,718
Non-recurring acquisition expense
1,535
-
1,535
-
Adjusted EBITDA
$
(24,306
)
$
(8,934
)
$
(67,336
)
$
(35,987
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220215006123/en/
For Investors Sarah Ewing investors@ouster.io
For Media Heather Shapiro press@ouster.io
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