Ouster Achieves Q2 2023 Revenue Guidance; Increases Cost Savings Target

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 measures of Non-GAAP Gross Profit, Non-GAAP Gross Margin and Adjusted EBITDA are useful in evaluating its operating performance. Ouster calculates Non-GAAP Gross Profit as gross profit (loss) excluding amortization of acquired intangibles, certain excess and obsolete expenses and losses on firm purchase commitments, and stock-based compensation expenses. Non-GAAP Gross Margin is calculated as Non-GAAP Gross Profit divided by revenues. Ouster calculates Adjusted EBITDA as net loss excluding interest expense (income), net, other expense (income), net, stock-based compensation expense, provision for income tax expense, goodwill impairment charges, amortization of acquired intangible assets, depreciation expenses, certain restructuring costs excluding stock-based compensation expenses, certain excess and obsolete expenses and losses on firm purchase commitments, certain litigation and litigation related expenses and merger and acquisition related expenses. Ouster believes that Non-GAAP Gross Profit, Non-GAAP Gross Margin, and 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.

 
OUSTER, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in thousands)
 
June 30,
2023
December 31,
2022
Assets
Current assets:
Cash and cash equivalents

$

91,237

 

$

122,932

 

Restricted cash, current

 

528

 

 

257

 

Short-term investments

 

133,176

 

 

 

Accounts receivable, net

 

15,106

 

 

11,233

 

Inventory

 

27,812

 

 

19,533

 

Prepaid expenses and other current assets

 

12,565

 

 

8,543

 

Total current assets

 

280,424

 

 

162,498

 

Property and equipment, net

 

12,739

 

 

9,695

 

Operating lease, right-of-use assets

 

21,069

 

 

12,997

 

Unbilled receivable, long-term portion

 

7,433

 

 

 

Goodwill

 

 

 

51,152

 

Intangible assets, net

 

27,951

 

 

18,165

 

Restricted cash, non-current

 

1,090

 

 

1,089

 

Other non-current assets

 

3,079

 

 

541

 

Total assets

$

353,785

 

$

256,137

 

Liabilities and stockholders’ equity
Current liabilities:
Accounts payable

$

10,296

 

$

8,798

 

Accrued and other current liabilities

 

39,843

 

 

17,071

 

Contract liabilities

 

9,776

 

 

402

 

Operating lease liability, current portion

 

7,317

 

 

3,221

 

Total current liabilities

 

67,232

 

 

29,492

 

Operating lease liability, long-term portion

 

22,455

 

 

13,400

 

Debt

 

40,135

 

 

39,574

 

Contract liabilities, long-term portion

 

5,264

 

 

342

 

Other non-current liabilities

 

1,708

 

 

1,710

 

Total liabilities

 

136,794

 

 

84,518

 

Commitments and contingencies
Stockholders’ equity:
Common stock

 

39

 

 

19

 

Additional paid-in capital

 

959,111

 

 

613,665

 

Accumulated deficit

 

(741,929

)

 

(441,916

)

Accumulated other comprehensive loss

 

(230

)

 

(149

)

Total stockholders’ equity

 

216,991

 

 

171,619

 

Total liabilities and stockholders’ equity

$

353,785

 

$

256,137

 

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,

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Revenue

$

19,396

 

$

10,329

 

$

36,626

 

$

18,887

 

Cost of revenue

 

19,210

 

 

7,547

 

 

36,816

 

 

13,514

 

Gross (loss) profit

 

186

 

 

2,782

 

 

(190

)

 

5,373

 

Operating expenses:
Research and development

 

26,447

 

 

15,893

 

 

58,906

 

 

31,799

 

Sales and marketing

 

11,666

 

 

7,563

 

 

25,199

 

 

14,653

 

General and administrative

 

17,842

 

 

12,515

 

 

49,167

 

 

26,298

 

Goodwill impairment charges

 

67,266

 

 

 

 

166,675

 

 

 

Total operating expenses

 

123,221

 

 

35,971

 

 

299,947

 

 

72,750

 

Loss from operations

 

(123,035

)

 

(33,189

)

 

(300,137

)

 

(67,377

)

Other (expense) income:
Interest income

 

2,245

 

 

344

 

 

3,964

 

 

498

 

Interest expense

 

(1,728

)

 

(444

)

 

(3,397

)

 

(444

)

Other income (expense), net

 

(165

)

 

5,326

 

 

(111

)

 

7,010

 

Total other income, net

 

352

 

 

5,226

 

 

456

 

 

7,064

 

Loss before income taxes

 

(122,683

)

 

(27,963

)

 

(299,681

)

 

(60,313

)

Provision for income tax expense

 

50

 

 

37

 

 

332

 

 

84

 

Net loss

$

(122,733

)

$

(28,000

)

$

(300,013

)

$

(60,397

)

Other comprehensive loss
Changes in unrealized gain (loss) on available for sale securities

$

(74

)

$

 

$

(24

)

$

 

Foreign currency translation adjustments

$

23

 

$

(76

)

$

(57

)

$

(88

)

Total comprehensive loss

$

(122,784

)

$

(28,076

)

$

(300,094

)

$

(60,485

)

Net loss per common share, basic and diluted

$

(3.19

)

$

(1.60

)

$

(8.84

)

$

(3.49

)

Weighted-average shares used to compute basic and diluted net loss per share

 

38,448,241

 

 

17,505,736

 

 

33,937,505

 

 

17,296,583

 

OUSTER, INC. 
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited) 
(in thousands) 
   
Six Months Ended June 30,

 

2023

 

 

 

2022

 

CASH FLOWS FROM OPERATING ACTIVITIES      
Net loss

$

          (300,013

)

 

$

            (60,397

)

Adjustments to reconcile net loss to net cash used in operating activities:  
Goodwill impairment charges

 

               166,675

 

 

 

                        —

 

Depreciation and amortization

 

                 10,605

 

 

 

                   4,739

 

Loss on write-off of construction in progress and right-of-use asset impairment

 

                   1,423

 

 

 

                        —

 

Stock-based compensation

 

                 38,246

 

 

 

                 16,869

 

Reduction of revenue related to stock warrant issued to customer

 

                        61

 

 

 

                        —

 

Change in right-of-use asset

 

                   2,012

 

 

 

                   1,358

 

Interest expense

 

                      889

 

 

 

                      402

 

Amortization of debt issuance costs and debt discount

 

                      125

 

 

 

                        42

 

Accretion or amortization on short-term investments

 

                (2,097

)

 

 

                        —

 

Change in fair value of warrant liabilities

 

                   (126

)

 

 

                (7,134

)

Inventory write down

 

                   5,065

 

 

 

                      447

 

Provision for doubtful accounts

 

                      541

 

 

 

                        —

 

Loss/(Gain) from disposal of property and equipment

 

                   (248

)

 

 

                   (100

)

Changes in operating assets and liabilities, net of acquisition effects:  
Accounts receivable

 

                   3,420

 

 

 

                   1,341

 

Inventory

 

                (3,644

)

 

 

              (10,180

)

Prepaid expenses and other assets

 

                (1,126

)

 

 

                (1,957

)

Contract assets

 

                        —

 

 

 

                        —

 

Accounts payable

 

                (1,741

)

 

 

                   1,094

 

Accrued and other liabilities

 

                (4,779

)

 

 

                   (329

)

Contract liabilities

 

                      759

 

 

 

                        —

 

Operating lease liability

 

                (2,525

)

 

 

                (1,588

)

Net cash used in operating activities

 

              (86,478

)

 

 

              (55,393

)

CASH FLOWS FROM INVESTING ACTIVITIES      
Proceeds from sale of property and equipment

 

                      560

 

 

 

                      275

 

Purchases of property and equipment

 

                (1,973

)

 

 

                (1,277

)

Purchase of short-term investments

 

              (48,554

)

 

 

                        —

 

Proceeds from sales of short-term investments

 

                 72,481

 

 

 

                        —

 

Cash and cash equivalents acquired in the Velodyne Merger

 

                 32,137

 

 

 

                        —

 

Net cash provided by (used in) investing activities

 

                 54,651

 

 

 

                (1,002

)

CASH FLOWS FROM FINANCING ACTIVITIES      
Repurchase of common stock

 

                        —

 

 

 

                     (43

)

Proceeds from ESPP purchase

 

                      310

 

 

 

                        —

 

Proceeds from exercise of stock options

 

                      150

 

 

 

                      252

 

Proceeds from borrowings, net of debt discount and issuance costs

 

                        —

 

 

 

                 19,077

 

Proceeds from the issuance of common stock under at-the-market offering, net of commissions and fees

 

                        —

 

 

 

                 14,568

 

At-the-market offering costs for the issuance of common stock

 

                        —

 

 

 

                   (196

)

Taxes paid related to net share settlement of restricted stock units

 

                        —

 

 

 

                     (59

)

Net cash provided by financing activities

 

                      460

 

 

 

                 33,599

 

Effect of exchange rates on cash and cash equivalents

 

                     (56

)

 

 

                     (88

)

Net decrease in cash, cash equivalents and restricted cash

 

              (31,423

)

 

 

              (22,884

)

Cash, cash equivalents and restricted cash at beginning of period

 

               124,278

 

 

 

               184,656

 

Cash, cash equivalents and restricted cash at end of period

$

              92,855

 

 

$

            161,772

 

OUSTER, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(unaudited)
(in thousands)
Three Months Ended June 30, Six Months Ended June 30,

 

2023

 

 

2022

 

 

2023

 

 

2022

 

GAAP net loss

$

(122,733

)

$

(28,000

)

$

(300,013

)

$

(60,397

)

Interest expense (income), net

 

(517

)

 

100

 

 

(567

)

 

(54

)

Other expense (income), net

 

165

 

 

(5,326

)

 

111

 

 

(7,010

)

Stock-based compensation (1)

 

16,466

 

 

8,119

 

 

38,246

 

 

16,869

 

Provision for income tax expense

 

50

 

 

37

 

 

332

 

 

84

 

Goodwill impairment charge

 

67,266

 

 

 

 

166,675

 

 

 

Amortization of acquired intangibles (2)

 

1,702

 

 

1,122

 

 

3,213

 

 

2,244

 

Restructuring costs, excluding stock-based compensation expense

 

3,342

 

 

 

 

15,977

 

 

 

Excess and obsolete expenses and loss on firm purchase commitments

 

3,750

 

 

 

 

7,380

 

 

 

Depreciation expense (2)

 

2,744

 

 

1,232

 

 

7,392

 

 

2,495

 

Litigation expenses (3)

 

3,364

 

 

92

 

 

3,901

 

 

592

 

Merger and acquisition related expenses (4)

 

 

 

 

 

6,058

 

 

 

Adjusted EBITDA

$

(24,401

)

$

(22,624

)

$

(51,294

)

$

(45,177

)

 
(1) Includes stock-based compensation expense as follows:
Three Months Ended June 30, Six Months Ended June 30,

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Cost of revenue

$

654

 

$

146

 

$

1,428

 

$

365

 

Research and development

 

8,204

 

 

3,806

 

 

15,709

 

 

7,566

 

Sales and marketing

 

3,500

 

 

1,839

 

 

6,381

 

 

3,362

 

General and administrative

 

4,108

 

 

2,328

 

 

14,728

 

 

5,576

 

Total stock-based compensation

$

16,466

 

$

8,119

 

$

38,246

 

$

16,869

 

 
(2) Includes depreciation and amortization expense as follows:
Three Months Ended June 30, Six Months Ended June 30,

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Cost of revenue

$

1,772

 

$

310

 

$

3,522

 

$

690

 

Research and development

 

892

 

 

823

 

 

3,856

 

 

1,613

 

Sales and marketing

 

258

 

 

75

 

 

440

 

 

150

 

General and administrative

 

1,524

 

 

1,146

 

 

2,787

 

 

2,286

 

Total depreciation and amortization expense

$

4,446

 

$

2,354

 

$

10,605

 

$

4,739

 

 
(3) Litigation expenses and litigation-related expenses outside of the Company’s ordinary business operations
(4) Merger and acquisition related expenses represent transaction costs for the Velodyne Merger which include legal and accounting professional service fees
Three Months Ended June 30, Six Months Ended June 30,

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Gross profit (loss) on GAAP basis

$

186

 

$

2,782

 

$

(190

)

$

5,373

 

Stock-based compensation

 

654

 

 

146

 

 

1,428

 

 

365

 

Amortization of acquired intangible assets

 

412

 

 

 

 

661

 

 

 

Excess and obsolete expenses and loss on firm purchase commitments

 

3,750

 

 

 

 

7,380

 

 

 

Gross profit on non-GAAP basis

$

5,002

 

$

2,928

 

$

9,279

 

$

5,738

 

 
Gross margin on GAAP basis

 

1

%

 

27

%

 

(1

)%

 

28

%

Gross margin on non-GAAP basis

 

26

%

 

28

%

 

25

%

 

30

%





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