$10.3 million in revenue with 27% gross margins in Q2 2022
Revises FY 2022 revenue guidance to $40 to 55 million
Ouster, Inc. (NYSE: OUST) (“Ouster” or the “Company”), a leading provider of high-resolution digital lidar sensors for the automotive, industrial, robotics, and smart infrastructure industries, announced financial results for the three months ended June 30, 2022.
Second Quarter 2022 Financial Highlights
- $10.3 million in revenue, up 40% year over year.
- 27% gross margins, compared to 26% in the second quarter of 2021.
- Shipped 2,020 sensors in the second quarter, up 38% year over year.
- Increased the number of Strategic Customer Agreements to 80, up from 72 in the prior quarter, collectively representing approximately $575 million in contracted revenue opportunity through 2026.1
- Net loss decreased to $28 million, compared to $32 million in the second quarter of 2021.
- Adjusted EBITDA loss2 increased to $23 million, compared to $14 million in the second quarter of 2021.
Ouster achieved its second highest revenue quarter, driven primarily by growth in the industrial and robotics verticals, predominantly from customers utilizing digital lidar for warehouse and port automation, off-highway mining and agriculture vehicles, construction robots, and drones for mapping and volumetric measurement. Sizeable orders in the automotive vertical, specifically for autonomous trucks, buses, and shuttles also meaningfully contributed to revenue in the second quarter followed by revenues from smart infrastructure deployments around the world. The Company delivered gross margins of 27%, down slightly from the first quarter of 2022 due to continued supply chain headwinds and efforts to avoid production and shipping delays.
Business Updates
Continued Customer Traction: In the second quarter, Ouster sold sensors to approximately 90 new customers3, and converted another 8 customers to multi-year SCAs with binding commitments, further expanding its contracted revenue opportunity to approximately $575 million through 2026.
Progressed Automotive Traction: Ouster Automotive continued to expand its traction with OEMs, Tier 1s, and AV companies, driven by strong demand for its solid-state Digital Flash (DF) A-sample sensors, which started shipping in the first month of the second quarter.
Strengthened Financial Position: Ouster continued to bolster its financial position through balance sheet initiatives, including a previously announced term loan facility of up to $50 million. In the second quarter, the Company drew $20 million on the term loan facility and raised approximately $15 million from sales of common stock through an at-the-market offering. Combined with initiatives to optimize spend and accelerate growth, the Company believes these actions will strengthen the business and provide the flexibility and liquidity to execute on its business plan.
“Ouster continues to capture share in a rapidly evolving market, increasing revenue by 40% over the second quarter of 2021,” said Ouster CEO Angus Pacala. “Our ability to deliver performant and cost-efficient products to customers on-time is a key differentiator. Our diversified strategy ensures that we are well-positioned to leverage automation trends across the industrialized economy, as more companies take steps to increase productivity, improve safety, and address ongoing labor shortages across their supply chains. The positive momentum we’re seeing from automakers following the release of our DF A-sample, coupled with upcoming product releases planned for later this year, position us to capture additional market share and continue to outpace the competition.”
2022 Outlook
Ouster revised its FY 2022 revenue guidance to $40 million to $55 million and reaffirmed its gross margin target of 25% to 30%.
While the fundamentals of Ouster’s business remain unchanged, ongoing macroeconomic pressures are impacting customer ramp timelines, resulting in a significant number of large deals being delayed or staggered over a longer period of time than previously anticipated.
“Ouster’s differentiated technology, backed by a leading cost structure and our multi-market approach, positions us to continue to win head-to-head commercial opportunities and gain market share across our four market verticals,” said Ouster CFO Anna Brunelle. “By revising our revenue guidance for this year and taking prudent financial measures to ensure access to capital in the current environment, we are better positioned to navigate headwinds, while simultaneously scaling the business to achieve industry-leading growth.”
Conference Call Information
Ouster will host a conference call and live webcast for analysts and investors at 5 p.m. EDT today, August 4, 2022, to discuss its financial results and business outlook. To access the call, please register at 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 August 18, 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.
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