Ouster Bolsters Market Position, Reports Second-Highest Revenue

Ouster Bolsters Market Position, Reports Second-Highest Revenue Quarter

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 other non-recurring 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“Customer” is defined as having purchased a sensor within the past twelve months ended March 31, 2022.

OUSTER, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in thousands, except share and per share data)

	March 31,			December 31
	2022			2021
Assets
Current assets:
Cash and cash equivalents	$	160,783		$	182,644
Restricted cash, current		977			977
Accounts receivable, net		9,881			10,723
Inventory		11,619			7,448
Prepaid expenses and other current assets		3,006			5,566
Total current assets		186,266			207,358
Property and equipment, net		8,968			10,054
Operating lease, right-of-use assets		14,582			15,156
Goodwill		51,076			51,076
Intangible assets, net		21,530			22,652
Restricted cash, non-current		1,035			1,035
Other non-current assets		452			371
Total assets	$	283,909		$	307,702
Liabilities, redeemable convertible preferred stock and stockholders' equity
Current liabilities:
Accounts payable	$	9,469		$	4,863
Accrued and other current liabilities		11,789			14,173
Operating lease liability, current portion		2,888			3,067
Total current liabilities		24,146			22,103
Operating lease liability, long-term portion		15,685			16,208
Warrant liabilities		5,881			7,626
Other non-current liabilities		1,018			1,065
Total liabilities		46,730			47,002
Commitments and contingencies
Redeemable convertible preferred stock, $0.0001 par value per share; 100,000,000 shares authorized at March 31, 2022 and December 31, 2021; Nil shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively (aggregate liquidation preference of Nil at March 31, 2022 and December 31, 2021, respectively)		—			—
Stockholders’ equity (deficit):
Common stock, $0.0001 par value; 1,000,000,000 shares authorized at March 31, 2022 and December 31, 2021; 173,602,503 and 172,200,417 issued and outstanding at March 31, 2022 and December 31, 2021, respectively		17			17
Additional paid-in capital		572,933			564,045
Accumulated deficit		(335,753	)		(303,356	)
Accumulated other comprehensive loss		(18	)		(6	)
Total stockholders’ equity		237,179			260,700
Total liabilities, redeemable convertible preferred stock, and stockholders’ equity	$	283,909		$	307,702

OUSTER, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(unaudited)
(in thousands, except share and per share data)

	Three Months Ended March 31,
	2022			2021

Product revenue	$	8,558		$	6,611
Cost of product revenue		5,967			4,868
Gross profit		2,591			1,743
Operating expenses:
Research and development		15,906			4,712
Sales and marketing		7,090			3,426
General and administrative		13,783			9,907
Total operating expenses		36,779			18,045
Loss from operations		(34,188	)		(16,302	)
Other income (expense):
Interest income		154			1
Interest expense		—			(504	)
Other income (expense), net		1,684			(4,152	)
Total other income (expense), net		1,838			(4,655	)
Loss before income taxes		(32,350	)		(20,957	)
Provision for income taxe expense		47			—
Net loss		(32,397	)		(20,957	)
Other comprehensive loss
Foreign currency translation adjustments		(12	)		—
Total comprehensive loss		(32,409	)		(20,957	)
Net loss per common share, basic and diluted	$	(0.19	)	$	(0.38	)
Weighted-average shares used to compute basic and diluted net loss per share		170,906,196			55,688,281

OUSTER, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)
	Three Months Ended March 31,
	2022			2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(32,397	)	$	(20,957	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		2,385			1,095
Stock-based compensation		8,750			5,256
Change in right-of-use asset		644			520
Interest expense on notes and convertible debt		-			36
Amortization of debt issuance costs and debt discount		-			250
Change in fair value of warrant liabilities		(1,745	)		4,152
Inventory write down		203			-
Gain from disposal of property and equipment		(100	)		-
Changes in operating assets and liabilities:
Accounts receivable		842			(140	)
Inventory		(4,373	)		(476	)
Prepaid expenses and other assets		2,480			(1,202	)
Accounts payable		4,807			(1	)
Accrued and other liabilities		(2,551	)		(254	)
Operating lease liability		(772	)		(678	)
Net cash used in operating activities		(21,827	)		(12,399	)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of property & equipment		275			-
Purchases of property and equipment		(416	)		(597	)
Net cash used in investing activities		(141	)		(597	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the merger and private offering		-			291,454
Payment of offering costs		-			(26,116	)
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		(31	)		(43	)
Proceeds from exercise of stock options		209			504
Taxes paid related to net share settlement of restricted stock awards		(59	)		-
Net cash provided by financing activities		119			258,799
Effect of exchange rates on cash and cash equivalents		(12	)		-
Net increase (decrease) in cash, cash equivalents and restricted cash		(21,862	)		245,803
Cash, cash equivalents and restricted cash at beginning of year		184,657			12,642
Cash, cash equivalents and restricted cash at end of year	$	162,795		$	258,445
SUPPLEMENTAL DISCLOSURES OF OPERATING ACTIVITIES:
Cash paid for interest	$	-		$	635
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING INFORMATION:
Property and equipment purchases included in accounts payable and accrued liabilities	$	377		$	100
Private placement warrants acquired as part of the merger	$	-		$	19,377
Issuance of redeemable convertible preferred stock upon exercise of warrants	$	-		$	58,097
Conversion of redeemable convertible preferred stock to common stock	$	-		$	97,322
Deferred transaction costs not yet paid	$	-		$	504

OUSTER, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(unaudited)
(in thousands)

	Three Months Ended March 31,
	2022			2021
GAAP net loss	$	(32,397	)	$	(20,957	)
Interest expense (income), net		(154	)		503
Other expense (income), net		(1,684	)		4,152
Stock-based compensation ⁽¹⁾		8,750			5,256
Income taxes		47			-
Non-GAAP operating loss		(25,438	)		(11,046	)
Depreciation and amortization expense ⁽²⁾		2,385			1,095
Adjusted EBITDA	$	(23,053	)	$	(9,951	)

(1) Includes stock-based compensation expense as follows:
	Three Months Ended March 31,
	2022			2021
Cost of revenue	$	383		$	118
Research and development		3,595			921
Sales and marketing		1,524			265
General and administrative		3,248			3,952
Total stock-based compensation	$	8,750		$	5,256

(2) Includes depreciation and amortization expense as follows:
	Three Months Ended March 31,
	2022			2021
Cost of revenue	$	577		$	350
Research and development		577			192
Sales and marketing		75			—
General and administrative		1,156			553
Total depreciation and amortization expense	$	2,385		$	1,095

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