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Velodyne Lidar Reports Second Quarter 2022 Financial Results

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

SAN JOSE, Calif. — (BUSINESS WIRE) — August 8, 2022 — 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

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

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

 

 



Contact:

Investor Contact
Jim Fanucchi
Darrow Associates, Inc.
InvestorRelations@velodyne.com

Media Contact:
Codeword
Liv Allen
velodyne@codeword.com