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, restructuring costs excluding stock-based compensation expenses, certain excess and obsolete expenses and losses on firm purchase commitments, amortization of acquired intangible assets, depreciation expenses, certain litigation and litigation related expenses, merger and acquisition related expenses, gain on lease termination and other items. 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. Adjusted EBITDA is also used by the Board and management as a performance metric for compensation purposes. 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 The comparative financial results for the three and twelve months ended December 31, 2022 reflect only the results of standalone Ouster. The financial results for the twelve months ended December 31, 2023 are composed of Ouster standalone performance through February 10, 2023 and combined performance of Ouster and Velodyne for the remainder of the period. The results for the three months ended December 31, 2023 and September 30, 2023 reflect the combined performance of Ouster and Velodyne. |
2 Adjusted EBITDA loss and non-GAAP gross margin are non-GAAP financial measures. See Non-GAAP Financial Measures for additional information and reconciliations of these measures to their respective most directly comparable financial measures calculated in accordance with U.S. GAAP. |
3 Bookings represent binding contract orders entered during the period. |
4 Annualized cost savings baselined against initial post-merger target of $75 million. |
| OUSTER, INC. | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (unaudited) | ||||||||
| (in thousands, except share and per share data) | ||||||||
| December 31, | ||||||||
2023 |
2022 |
|||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ |
50,991 |
|
$ |
122,932 |
|
||
| Restricted cash, current |
|
552 |
|
|
257 |
|
||
| Short-term investments |
|
139,158 |
|
|
— |
|
||
| Accounts receivable, net |
|
14,577 |
|
|
11,233 |
|
||
| Inventory |
|
23,232 |
|
|
19,533 |
|
||
| Prepaid expenses and other current assets |
|
34,647 |
|
|
8,543 |
|
||
| Total current assets |
|
263,157 |
|
|
162,498 |
|
||
| Property and equipment, net |
|
10,228 |
|
|
9,695 |
|
||
| Operating lease, right-of-use assets |
|
18,561 |
|
|
12,997 |
|
||
| Unbilled receivable, long-term portion |
|
10,567 |
|
|
— |
|
||
| Goodwill |
|
— |
|
|
51,152 |
|
||
| Intangible assets, net |
|
24,436 |
|
|
18,165 |
|
||
| Restricted cash, non-current |
|
1,091 |
|
|
1,089 |
|
||
| Other non-current assets |
|
2,703 |
|
|
541 |
|
||
| Total assets | $ |
330,743 |
|
$ |
256,137 |
|
||
| Liabilities and stockholders’ equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ |
3,545 |
|
$ |
8,798 |
|
||
| Accrued and other current liabilities |
|
58,166 |
|
|
17,071 |
|
||
| Contract liabilities |
|
12,885 |
|
|
402 |
|
||
| Operating lease liability, current portion |
|
7,096 |
|
|
3,221 |
|
||
| Total current liabilities |
|
81,692 |
|
|
29,492 |
|
||
| Operating lease liability, long-term portion |
|
18,827 |
|
|
13,400 |
|
||
| Debt |
|
43,975 |
|
|
39,574 |
|
||
| Contract liability, long-term portion |
|
4,967 |
|
|
342 |
|
||
| Other non-current liabilities |
|
1,610 |
|
|
1,710 |
|
||
| Total liabilities |
|
151,071 |
|
|
84,518 |
|
||
| Stockholders’ equity: | ||||||||
| Common stock |
|
42 |
|
|
19 |
|
||
| Additional paid-in capital |
|
995,464 |
|
|
613,665 |
|
||
| Accumulated deficit |
|
(816,026 |
) |
|
(441,916 |
) |
||
| Accumulated other comprehensive income (loss) |
|
192 |
|
|
(149 |
) |
||
| Total stockholders’ equity |
|
179,672 |
|
|
171,619 |
|
||
| Total liabilities and stockholders’ equity | $ |
330,743 |
|
$ |
256,137 |
|
||
| OUSTER, INC. | ||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | ||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||
| (in thousands, except share and per share data) | ||||||||||||||||||||
| Three Months Ended
December 31, |
Three Months Ended
September 30, |
Three Months Ended
December 31, |
Year Ended December 31, | |||||||||||||||||
| 2023 |
2023 |
2022 |
2023 |
2022 |
||||||||||||||||
| Revenue | $ |
24,444 |
|
$ |
22,209 |
|
$ |
10,938 |
|
$ |
83,279 |
|
$ |
41,029 |
|
|||||
| Cost of revenue |
|
19,033 |
|
|
19,116 |
|
|
9,097 |
|
|
74,965 |
|
|
30,099 |
|
|||||
| Gross profit |
|
5,411 |
|
|
3,093 |
|
|
1,841 |
|
|
8,314 |
|
|
10,930 |
|
|||||
| Operating expenses: | ||||||||||||||||||||
| Research and development |
|
15,626 |
|
|
16,678 |
|
|
15,306 |
|
|
91,210 |
|
|
64,317 |
|
|||||
| Sales and marketing |
|
8,553 |
|
|
7,887 |
|
|
7,639 |
|
|
41,639 |
|
|
30,833 |
|
|||||
| General and administrative |
|
18,545 |
|
|
14,270 |
|
|
20,897 |
|
|
81,982 |
|
|
61,203 |
|
|||||
| Goodwill impairment charges |
|
— |
|
|
— |
|
|
— |
|
|
166,675 |
|
|
— |
|
|||||
| Total operating expenses |
|
42,724 |
|
|
38,835 |
|
|
43,842 |
|
|
381,506 |
|
|
156,353 |
|
|||||
| Loss from operations |
|
(37,313 |
) |
|
(35,742 |
) |
|
(42,001 |
) |
|
(373,192 |
) |
|
(145,423 |
) |
|||||
| Other (expense) income: | ||||||||||||||||||||
| Interest income |
|
2,579 |
|
|
2,495 |
|
|
977 |
|
|
9,038 |
|
|
2,208 |
|
|||||
| Interest expense |
|
(4,081 |
) |
|
(1,825 |
) |
|
(1,551 |
) |
|
(9,303 |
) |
|
(2,694 |
) |
|||||
| Other income (expense), net |
|
(6 |
) |
|
(13 |
) |
|
583 |
|
|
(130 |
) |
|
7,654 |
|
|||||
| Total other (expense) income, net |
|
(1,508 |
) |
|
657 |
|
|
9 |
|
|
(395 |
) |
|
7,168 |
|
|||||
| Loss before income taxes |
|
(38,821 |
) |
|
(35,085 |
) |
|
(41,992 |
) |
|
(373,587 |
) |
|
(138,255 |
) |
|||||
| Provision for income tax expense |
|
174 |
|
|
17 |
|
|
184 |
|
|
523 |
|
|
305 |
|
|||||
| Net loss | $ |
(38,995 |
) |
$ |
(35,102 |
) |
$ |
(42,176 |
) |
$ |
(374,110 |
) |
$ |
(138,560 |
) |
|||||
| Other comprehensive loss | ||||||||||||||||||||
| Changes in unrealized gain (loss) on available for sale securities |
|
314 |
|
|
63 |
|
|
— |
|
|
354 |
|
|
— |
|
|||||
| Foreign currency translation adjustments |
|
258 |
|
|
(213 |
) |
|
32 |
|
|
(13 |
) |
|
(143 |
) |
|||||
| Total comprehensive loss | $ |
(38,423 |
) |
$ |
(35,252 |
) |
$ |
(42,144 |
) |
$ |
(373,769 |
) |
$ |
(138,703 |
) |
|||||
| Net loss per common share, basic and diluted | $ |
(0.95 |
) |
$ |
(0.89 |
) |
$ |
(2.54 |
) |
$ |
(10.10 |
) |
$ |
(7.79 |
) |
|||||
| Weighted-average shares used to compute basic and diluted net loss per share |
|
41,135,659 |
|
|
39,228,118 |
|
|
16,585,392 |
|
|
37,042,081 |
|
|
17,792,316 |
|
|||||
| OUSTER, INC. | ||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (unaudited) | ||||||||
| (in thousands) | ||||||||
| For the Years ended December 31, | ||||||||
| 2023 |
2022 |
|||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net loss | $ |
(374,110 |
) |
$ |
(138,560 |
) |
||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Goodwill impairment charges |
|
166,675 |
|
|
— |
|
||
| Depreciation and amortization |
|
17,148 |
|
|
9,456 |
|
||
| Loss on write-off of construction in progress and right-of-use asset impairment |
|
1,732 |
|
|
— |
|
||
| Gain on lease termination |
|
(807 |
) |
|
— |
|
||
| Stock-based compensation |
|
57,725 |
|
|
33,321 |
|
||
| Reduction of revenue related to stock warrant issued to customer |
|
528 |
|
|
— |
|
||
| Amortization of right-of-use asset |
|
4,519 |
|
|
2,730 |
|
||
| Interest expense and loss on debt extinguishment |
|
4,001 |
|
|
799 |
|
||
| Amortization of debt issuance costs and debt discount |
|
190 |
|
|
160 |
|
||
| Non-cash interest income |
|
(732 |
) |
|
— |
|
||
| Accretion or amortization on short-term investments |
|
(4,685 |
) |
|
— |
|
||
| Change in fair value of warrant liabilities |
|
49 |
|
|
(7,446 |
) |
||
| Inventory write down |
|
10,047 |
|
|
1,600 |
|
||
| Provision for doubtful accounts |
|
1,346 |
|
|
346 |
|
||
| (Gain)/loss from disposal of property and equipment |
|
(59 |
) |
|
430 |
|
||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable |
|
3,574 |
|
|
(856 |
) |
||
| Inventory |
|
(4,047 |
) |
|
(13,684 |
) |
||
| Prepaid expenses and other assets |
|
(21,575 |
) |
|
(3,148 |
) |
||
| Accounts payable |
|
(8,520 |
) |
|
4,191 |
|
||
| Accrued and other liabilities |
|
8,081 |
|
|
3,196 |
|
||
| Contract liabilities |
|
6,597 |
|
|
— |
|
||
| Operating lease liability |
|
(5,567 |
) |
|
(3,225 |
) |
||
| Net cash used in operating activities |
|
(137,890 |
) |
|
(110,690 |
) |
||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Proceeds from sale of property & equipment |
|
560 |
|
|
275 |
|
||
| Purchases of property and equipment |
|
(3,006 |
) |
|
(5,422 |
) |
||
| Purchase of short-term investments |
|
(137,104 |
) |
|
— |
|
||
| Proceeds from sales of short-term investments |
|
158,014 |
|
|
— |
|
||
| Cash and cash equivalents acquired in the Velodyne Merger |
|
32,137 |
|
|
— |
|
||
| Net cash used in investing activities |
|
50,601 |
|
|
(5,147 |
) |
||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Repurchase of common stock |
|
— |
|
|
(45 |
) |
||
| Proceeds from exercise of stock options |
|
271 |
|
|
470 |
|
||
| Proceeds from ESPP purchase |
|
1,174 |
|
|
378 |
|
||
| Proceeds from borrowings, net of debt discount and issuance costs |
|
43,975 |
|
|
39,077 |
|
||
| Repayments of borrowings |
|
(43,975 |
) |
|
— |
|
||
| Proceeds from the issuance of common stock under at-the-market offering, net of commissions and fees |
|
14,575 |
|
|
16,322 |
|
||
| At-the-market offering costs for the issuance of common stock |
|
(363 |
) |
|
(541 |
) |
||
| Taxes paid related to net share settlement of restricted stock units |
|
— |
|
|
(59 |
) |
||
| Net cash provided by financing activities |
|
15,657 |
|
|
55,602 |
|
||
| Effect of exchange rates on cash and cash equivalents |
|
(12 |
) |
|
(143 |
) |
||
| Net increase decrease in cash, cash equivalents and restricted cash |
|
(71,644 |
) |
|
(60,378 |
) |
||
| Cash, cash equivalents and restricted cash at beginning of year |
|
124,278 |
|
|
184,656 |
|
||
| Cash, cash equivalents and restricted cash at end of year | $ |
52,634 |
|
$ |
124,278 |
|
||
| OUSTER, INC. | ||||||||||||||||||||||||
| RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES | ||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||
| Three Months Ended December 31, | Three Months Ended September 30, | Year Ended December 31, | ||||||||||||||||||||||
| 2023 |
2022 |
2023 |
2022 |
2023 |
2022 |
|||||||||||||||||||
| GAAP net loss | $ |
(38,995 |
) |
$ |
(42,176 |
) |
$ |
(35,102 |
) |
$ |
(35,987 |
) |
$ |
(374,110 |
) |
$ |
(138,560 |
) |
||||||
| Interest income, net |
|
1,502 |
|
|
574 |
|
|
(670 |
) |
|
(34 |
) |
|
265 |
|
|
486 |
|
||||||
| Other expense (income), net |
|
6 |
|
|
(583 |
) |
|
13 |
|
|
(61 |
) |
|
130 |
|
|
(7,654 |
) |
||||||
| Stock-based compensation (1) |
|
11,107 |
|
|
7,997 |
|
|
8,372 |
|
|
8,455 |
|
|
57,725 |
|
|
33,321 |
|
||||||
| Provision for income tax expense |
|
174 |
|
|
184 |
|
|
17 |
|
|
37 |
|
|
523 |
|
|
305 |
|
||||||
| Goodwill impairment charge |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
166,675 |
|
|
— |
|
||||||
| Restructuring costs, excluding stock-based compensation expense |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
15,976 |
|
|
— |
|
||||||
| Excess and obsolete expenses and loss on firm purchase commitments |
|
1,732 |
|
|
— |
|
|
3,187 |
|
|
— |
|
|
12,299 |
|
|
— |
|
||||||
| Amortization of acquired intangibles (2) |
|
1,757 |
|
|
— |
|
|
1,759 |
|
|
1,122 |
|
|
6,729 |
|
|
4,487 |
|
||||||
| Depreciation expenses (2) |
|
1,239 |
|
|
2,386 |
|
|
1,739 |
|
|
1,210 |
|
|
10,371 |
|
|
4,969 |
|
||||||
| Litigation expenses (3) |
|
7,383 |
|
|
1,484 |
|
|
3,536 |
|
|
1,123 |
|
|
14,820 |
|
|
3,200 |
|
||||||
| Merger and acquisition related expenses (4) |
|
— |
|
|
6,950 |
|
|
— |
|
|
— |
|
|
6,058 |
|
|
6,950 |
|
||||||
| Gain on lease termination and other items |
|
— |
|
|
— |
|
|
(1,256 |
) |
|
— |
|
|
(1,256 |
) |
|
— |
|
||||||
| Adjusted EBITDA | $ |
(14,095 |
) |
$ |
(23,184 |
) |
$ |
(18,405 |
) |
$ |
(24,135 |
) |
$ |
(83,795 |
) |
$ |
(92,496 |
) |
||||||
| (1) Includes stock-based compensation expense as follows: | ||||||||||||||||||||||||
| Three Months Ended December 31, | Three Months Ended September 30, | Year Ended December 31, | ||||||||||||||||||||||
| 2023 |
2022 |
2023 |
2022 |
2023 |
2022 |
|||||||||||||||||||
| Cost of revenue | $ |
856 |
|
$ |
213 |
|
$ |
570 |
|
$ |
207 |
|
$ |
2,854 |
|
$ |
783 |
|
||||||
| Research and development |
|
4,786 |
|
|
3,363 |
|
|
4,056 |
|
|
3,681 |
|
|
24,551 |
|
|
14,611 |
|
||||||
| Sales and marketing |
|
2,240 |
|
|
1,789 |
|
|
1,345 |
|
|
1,913 |
|
|
9,966 |
|
|
7,065 |
|
||||||
| General and administrative |
|
3,225 |
|
|
2,632 |
|
|
2,401 |
|
|
2,654 |
|
|
20,354 |
|
|
10,862 |
|
||||||
| Total stock-based compensation | $ |
11,107 |
|
$ |
7,997 |
|
$ |
8,372 |
|
$ |
8,455 |
|
$ |
57,725 |
|
$ |
33,321 |
|
||||||
| (2) Includes depreciation and amortization expense as follows: | ||||||||||||||||||||||||
| Three Months Ended December 31, | Three Months Ended September 30, | Year Ended December 31, | ||||||||||||||||||||||
| 2023 |
2022 |
2023 |
2022 |
2023 |
2022 |
|||||||||||||||||||
| Cost of revenue | $ |
1,180 |
|
$ |
322 |
|
$ |
1,155 |
|
$ |
227 |
|
$ |
5,858 |
|
$ |
1,142 |
|
||||||
| Research and development |
|
747 |
|
|
867 |
|
|
741 |
|
|
889 |
|
$ |
5,343 |
|
|
3,466 |
|
||||||
| Sales and marketing |
|
250 |
|
|
78 |
|
|
250 |
|
|
75 |
|
$ |
940 |
|
|
303 |
|
||||||
| General and administrative |
|
819 |
|
|
1,119 |
|
|
1,352 |
|
|
1,140 |
|
$ |
4,958 |
|
|
4,545 |
|
||||||
| Total depreciation and amortization expense | $ |
2,996 |
|
$ |
2,386 |
|
$ |
3,498 |
|
$ |
2,331 |
|
$ |
17,099 |
|
$ |
9,456 |
|
||||||
| (3) Litigation expenses and litigation-related expenses outside of the Company’s ordinary business operations | ||||||||||||||||||||||||
| (4) Non-recurring acquisition expense represents transaction costs for the Velodyne Lidar, Inc. and Sense Photonics, Inc. mergers which include legal and accounting professional service fees. | ||||||||||||||||||||||||
| Three Months Ended December 31, | Three Months Ended September 30, | Year Ended December 31, | ||||||||||||||||||||||
| 2023 |
2022 |
2023 |
2022 |
2023 |
2022 |
|||||||||||||||||||
| Gross profit (loss) on GAAP basis | $ |
5,411 |
|
$ |
1,841 |
|
$ |
3,093 |
|
$ |
3,716 |
|
$ |
8,314 |
|
$ |
10,930 |
|
||||||
| Stock-based compensation |
|
856 |
|
|
213 |
|
|
570 |
|
|
207 |
|
|
2,854 |
|
|
783 |
|
||||||
| Amortization of acquired intangible assets |
|
517 |
|
|
— |
|
|
467 |
|
|
— |
|
|
1,644 |
|
|
— |
|
||||||
| Excess and obsolete expenses and loss on firm purchase commitments |
|
1,732 |
|
|
— |
|
|
3,187 |
|
|
— |
|
|
12,299 |
|
|
— |
|
||||||
| Gross profit on non-GAAP basis | $ |
8,516 |
|
$ |
2,054 |
|
$ |
7,316 |
|
$ |
3,923 |
|
$ |
25,111 |
|
$ |
11,713 |
|
||||||
| Gross margin on GAAP basis |
|
22 |
% |
|
17 |
% |
|
14 |
% |
|
33 |
% |
|
10 |
% |
|
27 |
% |
||||||
| Gross margin on non-GAAP basis |
|
35 |
% |
|
19 |
% |
|
33 |
% |
|
35 |
% |
|
30 |
% |
|
29 |
% |
||||||
