Ouster Announces Record Revenue for Fourth Quarter and Fiscal Year 2024
Record revenue of $30 million and GAAP gross margin of 44%
SAN FRANCISCO--(BUSINESS WIRE)--March 20, 2025--
Ouster, Inc. (Nasdaq: OUST) ("Ouster" or the "Company"), a leading global provider of high-performance lidar sensors and software solutions for the automotive, industrial, robotics, and smart infrastructure industries, announced today financial results for the three and twelve months ended December 31, 2024.
Fourth Quarter 2024 Financial Highlights
-- Revenue of $30 million, up 23% year over year and 7% sequentially.
-- Shipped more than 4,800 sensors for revenue.
-- GAAP gross margin of 44%, compared with 22% in the fourth quarter of 2023
and 38% in the third quarter of 2024.
-- Non-GAAP gross margin1 of 44%, compared with 35% in the fourth quarter of
2023 and 45% in the third quarter of 2024.
-- Net loss of $24 million, compared with $39 million in the fourth quarter
of 2023 and $26 million in the third quarter of 2024.
-- Adjusted EBITDA1 loss of $10 million, compared with $14 million in the
fourth quarter of 2023 and $10 million in the third quarter of 2024.
Full Year 2024 Highlights
-- Revenue of $111 million, an increase of 33% compared with fiscal year
2023.
-- Shipped more than 17,300 sensors for revenue.
-- GAAP gross margin of 36%, compared with 10% in fiscal year 2023.
-- Non-GAAP gross margin1 of 41%, compared with 30% in fiscal year 2023.
-- Net loss of $97 million, compared with a loss of $374 million in fiscal
year 2023.
-- Adjusted EBITDA1 loss of $42 million, compared with a loss of $84 million
in fiscal year 2023.
-- Ended 2024 with cash, cash equivalents, restricted cash, and short-term
investments balance of $175 million.
-- Fully repaid all outstanding balances under revolving credit line
utilizing cash on hand.
-- Increased software-attached bookings by over 60% as compared with fiscal
year 2023.
-- Expanded bookings for Ouster Gemini and BlueCity deployments to more than
700 sites.
__________________
(1) 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.
"The fourth quarter capped off a year of consistent execution, record financial results, and delivering increased value for our customers. In 2024, we grew OS sensor volumes by over 50%, increased our software-attached bookings by over 60%, and deployed sensors at iconic events like the Paris Olympics. We also reached major milestones in the development of our next-generation custom silicon chips and new tools to accelerate lidar adoption. Earlier this week, we announced 3D Zone Monitoring, marking the first time Ouster has embedded perception logic directly into its sensor lineup," said Ouster CEO Angus Pacala. "In 2025, Ouster, like other businesses, will be navigating a volatile and evolving climate. We are encouraged by the opportunities to empower global industries with high-performance, reliable, and accessible 3D sensing solutions. The product portfolio transformation we have planned in 2025 will result in the largest increase in Ouster's addressable market in our history."
Ouster delivered quarterly revenue of over $30 million with shipments exceeding 4,800 sensors. The fourth quarter was primarily driven by customers in the robotics and automotive verticals for use cases in robotaxis, mapping, and last mile delivery. GAAP gross margin increased to 44%, an improvement of approximately 2,200 basis points year over year, resulting from higher revenues, favorable product mix, and lower costs related to legacy inventory. Non-GAAP gross margin increased to 44%, an improvement of approximately 900 basis points year over year. Non-GAAP gross margin excludes the impact of stock-based compensation expenses and certain other items outside of ordinary operations.
First Quarter 2025 Outlook
For the first quarter of 2025, Ouster expects to achieve revenue in the range of $30 million to $32 million.
Conference Call Information
Ouster will host a conference call and live webcast for analysts and investors at 5:00 p.m. ET today, March 20, 2025 to discuss its financial results and business outlook.
Interested parties may listen to a live webcast of the conference call. Registration for the webcast can be completed by visiting the following website: https://edge.media-server.com/mmc/p/hnspeju8. The webcast will be available for replay for at least 30 days after the conference call on Ouster's investor website at https://investors.ouster.com/.
About Ouster
Ouster (Nasdaq: OUST) is a leading global provider of high-resolution scanning and solid-state lidar sensors and software solutions for the automotive, industrial, robotics, and smart infrastructure industries. Ouster is on a mission to build a safer and more sustainable future by offering affordable, high-performance sensors that drive mass adoption across a wide variety of applications. Ouster is headquartered in San Francisco, CA, with offices in the Americas, Europe, and Asia-Pacific. For more information about our products, visit www.ouster.com, contact our sales team, or connect with us on X or LinkedIn.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are based upon current plans, estimates and expectations of management that are subject to various risks and uncertainties that could cause actual results to differ materially from such statements. The inclusion of forward-looking statements should not be regarded as a representation that such plans, estimates and expectations will be achieved. Words such as "anticipate," "expect," "project," "intend," "believe," "may," "will, " "should," "plan," "could," "continue," "target," "contemplate," "estimate," "forecast," "guidance," "predict," "possible," "potential," "pursue," "likely," and the negative of these terms and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. All statements, other than statements of historical fact, including statements regarding Ouster's revenue guidance for the first quarter of 2025; anticipated new product launches and developments; Ouster's future results of operations and financial position; the anticipated timing and development of Ouster's next generation hardware and software solutions; increases in Ouster's addressable market; the execution against the Company's product roadmap and demand for products; the Company's path to profitability and long-term financial framework; industry and economic trends, including market volatility; Ouster's business objectives, plans, strategic partnerships, and market growth; and Ouster's competitive market position, all constitute forward-looking statements. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that we expected, including, but not limited to, risks related to Ouster's limited operating history and history of losses; the substantial research and development costs needed to develop and commercialize new products; Ouster's limited sales history and the ability to maintain confidence in the Company's long-term business prospect among customers in target markets; fluctuations in its operating results; its ability to maintain competitive average selling prices, high sales volumes and reduce product costs; competition in Ouster's industry; the negotiating power and product standards of its customers; the adoption of its products and the growth of the lidar market generally; product quality and liability risks; Ouster's future capital needs and ability to secure additional capital on favorable terms or at all; market acceptance of lidar and Ouster's forecasts for market growth; Ouster's ability to manage growth, including growing the sales and marketing organization; risks related to international operations, including international manufacturing; cancellation or postponement of contracts or unsuccessful implementations; the Company's ability to manage its inventory; credit risk of customers; Ouster's ability to use tax attributes; Ouster's dependence on key third party suppliers, in particular Benchmark Electronics, Inc., Fabrinet, and other suppliers; supply chain constraints and challenges; conditions in the industries the Company targets or the global economy; Ouster's ability to recruit and retain key personnel; its ability to complete or achieve the anticipated benefits of new acquisitions or investments; changes to trade policy, tariffs, and import/export regulations may have a material adverse effect on Ouster's business, financial condition and results of operations; risks related to the use of AI tools by us and others; Ouster's ability to adequately protect and enforce its intellectual property rights; legal and regulatory risks; risks related to operating as a public company; and other important factors discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, as will be updated in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, and as may be further updated from time to time in the Company's other filings with the SEC. Readers are urged to consider these factors carefully and in the totality of the circumstances when evaluating these forward-looking statements, and
not to place undue reliance on any of them. Any such forward-looking statements represent management's reasonable estimates and beliefs as of the date of this press release. While Ouster may elect to update such forward-looking statements at some point in the future, it disclaims any obligation to do so, other than as may be required by law, even if subsequent events cause its views to change.
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 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 expense. 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 expense, certain excess and obsolete expenses and loss on firm purchase commitments, amortization of acquired intangibles, depreciation expense, 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.
OUSTER, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in thousands)
December 31,
-------------------------
2024 2023
--------- --------
Assets
Current assets:
Cash and cash equivalents $ 45,542 $ 50,991
Restricted cash, current 722 552
Short-term investments 126,480 139,158
Accounts receivable, net 17,941 14,577
Inventory 16,417 23,232
Prepaid expenses and other current
assets 12,750 34,647
--------- --------
Total current assets 219,852 263,157
Property and equipment, net 10,164 10,228
Operating lease, right-of-use assets 14,308 18,561
Unbilled receivable, non-current portion 10,133 10,567
Intangible assets, net 17,830 24,436
Restricted cash, non-current 1,835 1,091
Other non-current assets 2,026 2,703
--------- --------
Total assets $ 276,148 $ 330,743
========= ========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 6,288 $ 3,545
Accrued and other current liabilities 30,591 58,166
Contract liabilities, current 34,351 12,885
Operating lease liability, current
portion 7,196 7,096
--------- --------
Total current liabilities 78,426 81,692
Operating lease liability, non-current
portion 13,054 18,827
Debt -- 43,975
Contract liabilities, non-current portion 2,538 4,967
Other non-current liabilities 1,219 1,610
--------- --------
Total liabilities 95,237 151,071
--------- --------
Stockholders' equity:
Common stock 47 42
Additional paid-in capital 1,094,938 995,464
Accumulated deficit (913,071) (816,026)
Accumulated other comprehensive (loss)
income (1,003) 192
--------- --------
Total stockholders' equity 180,911 179,672
--------- --------
Total liabilities and stockholders' equity $ 276,148 $ 330,743
========= ========
OUSTER, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(unaudited)
(in thousands, except share and per share data)
Three Months Three Months Three Months
Ended December Ended September Ended December
31, 30, 31, Year Ended December 31,
--------------- --------------- --------------- ----------------------------
2024 2024 2023 2024 2023
---------- ---------- ---------- ---------- ----------
Revenue $ 30,092 $ 28,075 $ 24,444 $ 111,101 $ 83,279
Cost of revenue 16,909 17,321 19,033 70,641 74,965
---------- ---------- ---------- ---------- ----------
Gross profit 13,183 10,754 5,411 40,460 8,314
Operating expenses:
Research and
development 14,719 15,127 15,626 58,084 91,210
Sales and
marketing 7,045 7,197 8,553 27,852 41,639
General and
administrative 17,017 15,938 18,545 58,701 81,982
Goodwill
impairment
charges -- -- -- -- 166,675
---------- ---------- ---------- ---------- ----------
Total operating
expenses 38,781 38,262 42,724 144,637 381,506
---------- ---------- ---------- ---------- ----------
Loss from
operations (25,598) (27,508) (37,313) (104,177) (373,192)
Other income
(expense):
Interest income 1,795 2,149 2,579 8,846 9,038
Interest
expense -- (342) (4,081) (1,823) (9,303)
Other income
(expense),
net 386 74 (6) 646 (130)
---------- ---------- ---------- ---------- ----------
Total other income
(expense), net 2,181 1,881 (1,508) 7,669 (395)
---------- ---------- ---------- ---------- ----------
Loss before income
taxes (23,417) (25,627) (38,821) (96,508) (373,587)
Provision for
income tax
expense 320 (37) 174 537 523
---------- ---------- ---------- ---------- ----------
Net loss $ (23,737) $ (25,590) $ (38,995) $ (97,045) $ (374,110)
========== ========== ========== ========== ==========
Other comprehensive
loss
Changes in
unrealized
gain (loss) on
available for
sale
securities (180) 298 314 (386) 354
Foreign
currency
translation
adjustments (679) 335 258 (809) (13)
---------- ---------- ---------- ---------- ----------
Total comprehensive
loss $ (24,596) $ (24,957) $ (38,423) $ (98,240) $ (373,769)
========== ========== ========== ========== ==========
Net loss per common
share, basic and
diluted $ (0.48) $ (0.54) $ (0.95) $ (2.08) $ (10.10)
Weighted-average
shares used to
compute basic and
diluted net loss
per share 49,958,448 47,684,363 41,135,659 46,584,479 37,042,081
OUSTER, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)
For the Years ended December 31,
------------------------------------------
2024 2023
------------- ------------
CASH FLOWS FROM OPERATING
ACTIVITIES
Net loss $ (97,045) $ (374,110)
Adjustments to reconcile net
loss to net cash used in
operating activities:
Goodwill impairment charges -- 166,675
Depreciation and
amortization 9,836 17,148
Loss on write-off and
disposal of property and
equipment and right-of-use
asset impairment 401 1,673
Gain on lease termination -- (807)
Stock-based compensation 40,459 57,725
Reduction of revenue
related to stock warrant
issued to customer 892 528
Amortization of
right-of-use asset 4,904 4,519
Interest expense and loss
on debt extinguishment -- 4,001
Amortization of debt
issuance costs and debt
discount -- 190
Non-cash interest income (619) (732)
Accretion or amortization
on short-term investments (5,095) (4,685)
Change in fair value of
warrant liabilities (103) 49
Inventory write down 2,080 10,047
Provision (recovery of) for
doubtful accounts (587) 1,346
Realized gain on sale of
investments (275) --
Changes in operating assets
and liabilities:
Accounts receivable (1,724) 3,574
Inventory 4,735 (4,047)
Prepaid expenses and
other assets 21,317 (21,575)
Accounts payable 2,476 (8,520)
Accrued and other
liabilities (28,059) 8,081
Contract liabilities 19,036 6,597
Operating lease
liability (6,323) (5,567)
------------- ------------
Net cash used in operating
activities (33,694) (137,890)
------------- ------------
CASH FLOWS FROM INVESTING
ACTIVITIES
Proceeds from sale of property
& equipment 668 560
Purchases of property and
equipment (3,756) (3,006)
Purchase of short-term
investments (144,573) (137,104)
Proceeds from sales of
short-term investments 162,313 158,014
Cash and cash equivalents
acquired in the Velodyne
Merger -- 32,137
------------- ------------
Net cash provided by investing
activities 14,652 50,601
------------- ------------
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from exercise of stock
options 205 271
Proceeds from ESPP purchase 1,703 1,174
Proceeds from borrowings, net
of debt discount and issuance
costs -- 43,975
Repayments of borrowings (43,975) (43,975)
Proceeds from the issuance of
common stock under
at-the-market offering, net of
commissions and fees 57,806 14,575
At-the-market offering costs
for the issuance of common
stock (346) (363)
------------- ------------
Net cash provided by financing
activities 15,393 15,657
------------- ------------
Effect of exchange rates on cash
and cash equivalents (887) (12)
------------- ------------
Net increase decrease in cash,
cash equivalents and restricted
cash (4,536) (71,644)
Cash, cash equivalents and
restricted cash at beginning of
year 52,634 124,278
------------- ------------
Cash, cash equivalents and
restricted cash at end of year $ 48,099 $ 52,634
============= ============
OUSTER, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(unaudited)
(in thousands)
Three Months
Three Months Ended December Ended September
31, 30, Year Ended December 31,
--------------------------- ---------------- ---------------------------
2024 2023 2024 2024 2023
------- ------- --- ------- ------ ------- --------
GAAP net loss $(23,737) $(38,995) $(25,590) $(97,045) $(374,110)
Interest (income)
expense, net (1,795) 1,502 (1,807) (7,023) 265
Other (income)
expense, net (386) 6 (74) (646) 130
Stock-based
compensation
expense(1) 8,841 11,107 11,519 40,459 57,725
Provision for
income tax
expense
(benefit) 320 174 (37) 537 523
Goodwill
impairment
charge -- -- -- -- 166,675
Restructuring
costs, excluding
stock-based
compensation
expense -- -- -- -- 15,976
Excess and
obsolete
expenses
(recovery) and
loss on firm
purchase
commitments (1,431) 1,732 -- (859) 12,299
Amortization of
acquired
intangibles(2) 1,342 1,757 1,759 6,516 6,729
Depreciation
expenses(2) 651 1,239 687 3,230 10,371
Litigation
expenses(3) 6,494 7,383 4,221 13,647 14,820
Merger and
acquisition
related
expenses(4) -- -- -- -- 6,058
Gain on lease
termination and
other items -- -- (513) (627) (1,256)
------- ------- --- ------- ----- ------- --------
Adjusted EBITDA $ (9,701) $(14,095) $ (9,835) $(41,811) $ (83,795)
======= ======= ======= ===== ======= ========
(1) Includes stock-based compensation expense as follows:
Three Months
Three Months Ended December Ended September
31, 30, Year Ended December 31,
--------------------------- ---------------- ---------------------------
2024 2023 2024 2024 2023
------- ------- --- ------- ------ ------- --------
Cost of revenue $ 1,140 $ 856 $ 1,345 $ 4,608 $ 2,854
Research and
development 4,181 4,786 5,241 18,260 24,551
Sales and
marketing 1,147 2,240 1,308 5,347 9,966
General and
administrative 2,373 3,225 3,625 12,244 20,354
------- ------- --- ------- ------ ------- --------
Total
stock-based
compensation $ 8,841 $ 11,107 $ 11,519 $ 40,459 $ 57,725
======= ======= === ======= ====== ======= ========
(2) Includes depreciation and amortization expense as follows:
Three Months
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