VLDR - Earnings call transcript Q2 2022

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Operator

Good day everyone and welcome to the Velodyne Lidar Second Quarter 2022 Financial Results Call. All participants will be in listen-only mode. Please also note, today's event is being recorded for replay purposes. [Operator Instructions] At this time, I would like to turn the conference over to Mr. Jim Fanucchi of Darrow Associates. ahead. go please Sir,

Jim Fanucchi

Chief budget-planning purposes and that to making XX-K with Please most non-GAAP. actual the management for including operating core these and projections Good results statements. also forward-looking me trends and Management operational are press differ recent published discussion on and Chief filings, the this second and metrics it Mark to stated, Tewksbury, otherwise operator. we after today's Relations performance provides joining business discuss discussed market believes cause financial discussion investor in financial closed measures supplement uses release evaluates third a announcing provide will financial results consistent and and refer SEC Please Dr. you the could an issued trends. XXXX documents us. in investors factors Velodyne’s because its forward-looking Velodyne’s our are shortly company’s includes Weinswig, and you how quarter. investors non-GAAP results. Officer With section the fiscal decisions financial results And to call press a and our Velodyne Executive Velodyne Officer. an Velodyne’s afternoon evaluate all of presentation. for providing as you, such also these GAAP Today’s On thank call, may financial everyone unless for quarter release quarter second help for them measures, XX-Q and note these that Ted today, Financial statements. and Thank to call for and from of today access non-GAAP velodynelidar.com. our a performance financial Investor the outlook materially

GAAP believes these competitors these is with the management versus comparisons reconciliation non-GAAP full other measures business of of companies. today. and operating the release company’s trends and description press results and measures financial facilitate issued and included In in A core addition,

Dr. Ted like Now, I’d to ahead. go please turn Ted, Tewksbury. over to call the

Ted Tewksbury

you Thanks today. us thank Jim, and all joining for

networks traffic Within including applications handling industrial of and monitoring. set diverse vehicles, roughly be to truck shipping. increased docks, markets; most of and of $XX.X results, on quarter of the our we continues range and across of to performance, and were second the adequate more asset efforts came last our requirements. the differentiators Mark LiDAR-based half able team, and quarter. of headwinds. saw continuing million superior the revenue million, include of to consecutive traction then to three execution for Velodyne one mile robotics robots, in Our an we update across the quantities review thanks solid intelligent space vehicle within of and key outlook now robust to critical Billings greater tireless industrial cargo both about and remained for in power I'd autonomous for financial was our results provide of efficiency, the infrastructure, systems, our markets. majority an meet used status of our of supply will and business guidance to the sensors infrastructure, diversified reliability Demand in our increasingly QX. security, second into face robotics, In XXXX $XX.X quarter our In procure QX, detail. suppliers industrial being are second of cases industries. components use all like and with of target infrastructure our LiDAR share across shipped chain transformation, and customer delivery solutions the our customers' one our robotics, solutions as products and infrastructure discuss

in solutions and our mapping, Lastly, virtual we and reality interactions. demand applications, augmented entertainment as such seeing online for are

the who Velodyne's The and of were LX and shipped systems. LX shuttle autonomous for on robotaxis in sensors depend quarter to other units customers, XX% power their

the multiyear We global agreement Dynamics, selected sales to their with robotics a new also market leader. agreements. During robots. our with enhance extend Boston expanded the several signed high-performance customer quarter, autonomous reach They mobile and capabilities Velodyne's of sensors a we

lidar its Intelligent traffic for improve detecting collision delivering near-miss deployed efficacy According proliferation to and monitoring running are was situations commercial adoption such counting Infrastructure IIS that intersections Our as wave Finland and with red by Yole, the flow research will total year multiple lights of market validates by to Solution, classification, first available use Helsinki, a thesis multimodal automation, $X.X estimated dominated these jaywalking. Along be billion or firm, to in IIS, safety. our be of industrial traffic robotics our at per nonautomotive cases demonstrated infrastructure. XXXX. and intelligent This in segments

solutions with As of on as a I and completion made past for announced to addition February Board the with pleased next accelerated call. will next our we've to highlight software appointment enhance that enter progress I To manufacturing advance of leadership, the Recently, of will changes Financial other sensors, Velodyne's the turnaround plan new help third my contract the targeted we've just governance lidar full and the examples, we Thailand into outsourcing significantly continue This take the ownership, in Weinswig fully, earnings Velodyne, our rationalized of in yields, company months. opportunities Mark in the stock growing low-cost Officer, business, day transition Chief two I profitable, I year. strategy and in of in resources HXXX. our We our the differentiated dramatic attractive discontinuation deploying delivering be we redistribution CEO few margins. execute our are I highly We discussed including quarter product increase And priority implemented expand including XX in in costs progress encompassing to including earnings every a on road efficiency reprioritized our next-generation over the have as take high to on defined that scaling From margins. ownership. the seasoned led it the that next investment by some us the introduced and returns reduce allowing products calls. XX members will improve Velarray attractive time be operations, while products will experienced to development, of management This founder and new day. to to we shareholder returns. and process and manufacturer technical in development to contribution of level with expect making the maps, valuable a reduction emphasized highly detail the capacity, one, gross

to to XXXX, and expense strategic taking that parallel, are to essential solutions while in look to forward the remainder our revenue will break our As to continue structure steps our XXXX of In we invest we differentiated even. with time expectations. we our vision are customers, These categories product high growth. are actions to smart industry-leading long-term accelerating designed deliver ROI to align

call to offer over our We Before around third want I commentary guidance quarter. demand. quarter the handing some to entered for Mark, with third the robust the

However, for making all extend expect this challenges support will based to difficult us supply our information on of suppliers, fully it into demand. XXXX we from

$X to will to be mitigate revenue expect between to million utilize sensors Combining and help million to of chain risks. between and sources be these factors, supply revenue partially track these to $XX and contra billings The due non-cash billings the alternative to us efforts revenue and $XX all between modify million. related Our Amazon is $XX difference is to warrants. million our on and we estimated

ahead. center use in capabilities is of improvements the the including expanded cost quarter Mark, half operating XXXX. benefit XXXX, outsourced that, initiatives, the with please pleasure deliver Our realized will the full of reduction second incremental With and efficiencies improvements offshore in be the call. this of Mark in to to to design third welcome it my manufacturers, expected of growth go

Mark Weinswig

about you, team Ted. evolution. the very Velodyne Good I contributing and I'm to afternoon, Thank of to stage excited next pivotal Velodyne's time, this look everyone. the forward during joining

I and for I the believe the opportunities During my closely improvement to time with room results. is there teams worked operating to significant efficiencies. our with initial improve analyze company, in executive our finance

in our steps to the breakeven. revenue a have Ted's focus would reach approximately want on to we echo cash balance order equivalents, with us structure We our reduce profitable on I cash that growth needed $XXX capital to take the of to million plan. with comments and healthy strategic and execute earlier in sheet goal providing cost the

impact million, while revenue Now million million. the the the from million, service million quarter. million loss a with an This turning and accounting. million the by quarter. first impact $X.X quarter, Amazon of with compared first was non-cash Total $XX.X chain billings warrant compares impacted the the in In quarter. first revenue non-cash for up were were $X.X License Billings had in This supply first our to million Amazon was on Total results. $X of million. our QX with product was Billings accounting QX. with $X.X the was $X.X approximately million $X.X gross revenue. revenue and constraints. continued GAAP compares $XX.X the million warrants $XX.X compared $X.X in $X.X in financial included

quarter cost was look from were share compared share was This progress QX. loss $XX.X discussed quarter. Ted million quarter. million by or $X.XX $XX.X $X.X quarters. Non-GAAP $X.XX quarter. $XX.X with future of million our $XX.X loss with per strategies operating discussing in the $XX.X million a the was in in in prior the gross to I or first partially per expenses of with million Lower in million, net were previously. $X.XX $X.X the compares prior during a was Non-GAAP $XX and quarter. of with expenses with share losses share quarter. expenses loss prior loss by per compares second as in per Non-GAAP more driven product operating $XX.X million GAAP million, $XX.X implemented the or $X.XX million. GAAP impacted were containment line, compared compared in forward The million $X.X the gross or net discontinuation million

the to on quarter, healthy. and investments liquidity our million approximately remains With moving balance capital the of Finally, the cash $XXX and sheet. in at end

burn. As look the new making develop we cash discussing need that, products through the Ted. reduce the we to progress turn call to the and operations we our in are year, move I growth balance to With back long-term improving our invest I'll performance our streamlining financial forward to while as in

Ted Tewksbury

lidar make Mark. our Velodyne With robotics, and shipped way. of markets, infrastructure exciting chains intelligent greener. supply day, our our date is new to the automotive, Thank you, over our planet and efficient into used sensors and our we more industrial safer, to examples see Every lidar of communities being three target XX,XXX leading

progress. of next-generation and to quarter our working industries new applications. We into bring to intensely was solutions products QX market are our expand and a

there we do. much However, is more know to

a completed our customers accelerate want investors, to hard to achieve support. have execute I capital business deliver break their of their work We thank most the reductions even. We I in to time in including believe thank on to goals. our team the with call to highest Velodyne to these are new and stakeholders, strong closing, while Operator, simultaneously open now investing suppliers questions. want to In implementing we us for for all, investment, programs the the plans. we need our and of continued the to top-to-bottom will analysis And helping us provides return sheet balance cost our

Operator

Please first Needham & [Operator with Gill Company. comes Instructions] question from go Raji ahead. The

Raji Gill

you're of costs components. a how it. the I trends of for get I thinking increased ASPs and Yeah. do pushing those were expect Last because component lower costs supply because more those Wondering Thank quarter, issues components, units into XXXX just trend the those clarity little supply wanted about were on chain that taking you of And remainder appreciate the pricing higher increasing to for how cost underlying sensor your issues. and XXXX? your to higher power. the question. we chain the of pricing my

Ted Tewksbury

for question, Thanks the Raji.

on of First two there's supply of chain all, maybe really here. background because little bit components separate a just the provide I can

year. is FPGAs, specific end we specific had of The them nearing life, a with our and retrofit scheduled and and this the to to on do those company's being some That end procedure complete design of is of the track by respect you're to aware, replace first went as through be that. component to were

when The the the second across everybody And macro constraint subside could don't visibility – that seeing of is suppliers component into that constraints deal lot last a industry. a we the our supply issues macro have XXXX. really supply great will into is are of those saying but

the in redesigns. So are we of what's happening doing those that, here process is

by is completed macroeconomic components, In expect more to scramble we normal pricing once into could increased will we determine into be we meantime, the down. procure But end expect get this start price we done, to and those We that they the to the expect once those to go designs, we ASP as order environment. that that's offset of get up we year. the to components. And in do to new continue scarce expect back come XXXX have of again,

Raji Gill

Appreciate it.

For the company to you mentioned when was robotics in ramp that joined number my you Lidar market. follow-up, industrial Ted, adoption priority the one

at the While you'd $XX. the mentioned cost below time, of vehicles, for believe the same lower Lidar for kind I passenger

the think of it with you got in structure? have volume. I'm maybe industrial a And kind passenger of as adoption based making where Thank about or of on side have bit current I on your that's go so ASPs little So on But seeing Lidar you're lot of do vehicles? know the ASPs, you seems the you like touch progress just we are of industrial where upon could what the you're well? or robotics. cost sight kind curious, a line you. a-third

Ted Tewksbury

really and getting which an the really the We're today. discussed have broad the some product that portfolio of good markets I of intelligent with industrial range prepared infrastructure across we and applications, we're market Yes. remarks. enormously traction And robotics in that seeding in

robotics grow production, years start next and go So an the where industrial to as or start will revenue infrastructure. expect those to two point see inflection designs in one to we to in

our But to vehicles the are market shuttles. second automotive and is as robotaxis product you autonomous Those in they designs revenue segments concerned, saw, XX% there's the far and them. be AV very are know, as there. away we've automotive has from you and are past calls, vehicles, been Tier discussions will we've good years passenger have. with that to prices came as all clear talked and have talked industry of the The that loud in to down about X's production. of we feedback in OEMs when happen, specifically the is away years $XXX the or progress autonomous have some markets those from expect in two primarily for still quarter range. materialize, $XXX And two there, in preferably there And as where $XXX, respect our with there's Velodyne below a to to when we now right which As we fit that prototype designs and products the probably be still segment, ready three production come full With already

Raji Gill

Thank you.

Operator

Instructions] next comes Colin with [Operator ahead. Rusch from Please Oppenheimer. go The question

Colin Rusch

Thanks so much, guys.

Within about versus indoor you're are diversity how now that of and including outdoor many market, can how you applications changing, that's right the the industrial applications? on talk going in

Ted Tewksbury

Thanks, of Colin, for There's the number an question. enormous applications. really

as as more is and greenhouse community intersections we're reduce public seeing As safety a and example, make stuff. IIS in outdoor flows applications, far spaces, outdoor as great efficient lots to monitor well gases of all traffic also and to solution, good spaces, that traffic, for the congestion, systems monitor and monitoring, space stadiums, parking solution our traffic

seems are and addition, truck delivery In growing Sidewalk day. they're see docks, we applications that applications, immense, the every it

want an see hazardous We And defense big there's a ones. people then to don't examples then data -- centers, for We applications others We at as indoors, design in centers well, the and last of into earnings the that's applications. quick in locations many And fulfillment Kinetic. procurement applications. continue centers, sending to few so mining, about enormous outdoor robotics. warehouses range industrial including just mapping are in call win the lidar agriculture, at where with just see talked applications the go,

Colin Rusch

And level, to Thanks. the the then manufacturing to side, can are walk going Great. for the gross key elements on you margins? and cost you cadence through that pieces at implementation us the Okay. positive get on

Ted Tewksbury

Yes.

it's a far gross So as margins as really concerned. plan three-point are

that talked insights. together analytics provide component as capabilities obtain our and help about increase ML we've and sensor business with ASPs before, the the to first The being through solutions, full system software the hardware to

actually we're insights allowing analytics products. business, So business point a a from to not and giving them derive we're cloud, just our

and that's derive one. eventually our to through That's SaaS So source ASPs revenue. to recurring enable us also the revenue number going of increase

talked The BOM we and OpEx regard that And as opportunities reduce innovation. operational for in through transition is second And development. the across remarks, efficiency efficiencies. revenue, Thailand We increase ADAS that, to prepared talked component to to down our lot manufacturing down Mark bringing with in have parallel we're already of about structures architectural we're cost costs And identifying the third the is drive our products with our to to in then the organization. realigning product cost a about with costs. efficiencies accelerating specifically, then

Colin Rusch

Thanks, helpful. guys. super That’s

Operator

The ahead. next from question comes Capital with Craig-Hallum Please go Group. Peterman Sam

Sam Peterman

to for question. taking product Thanks on you guys. I Hi the ask my wanted exit.

said you think you I with Velarray. exited the HXXX

a that had you products based think Velodyne I solid including architecture of the [ph]. state couple on other

exited So more you why that be some the around color architecture, great. that that Velarray other and on was what your give based are if that for would means products then could curious,

Ted Tewksbury

question, Sam. Great Yes.

So And our want we're that to of pricing. customers and kind that chance on learned loud the and need see able who of competitors don't as while state a need. power don't anybody I products alluded out efficiency, lower was and from price they it HXXX to and of profitability. test I The And about great requirements else success, we the the points much there. for HXXX development performance we mentioned market. sensors, we outstanding engineering and see customers first solid that And our earlier, heard resources investing and hit products and earlier. really limited of used greatest our offered those what we any really clear are meet that one We to really have our rationalizing our deal

And pillars talked makes invest cost improve trying existing on low us about, than to for sense exciting next-generation bringing so new rather and one of strategy. looking main more the I resources we really to became as product engineering products. now market map. our And really backwards road products a our it And of have those to

Sam Peterman

Thanks sense. makes there. detail That you. Got the for

the that you're going end product versus question, seeing quarter-over-quarter, just licensing I'm color about assuming to any weakness you're you a assuming talk side. guidance which on thinking Is markets of kind rather bit and about I'm the primarily that's can forward, little than or relative Second the down correct? relative there? And side strengthen

Ted Tewksbury

Yes. back from Again, from coming robotics as and enormous the we just enormous of the as I into constrained supply specific that's now AVs. thing And growth to get emphasize industrial with earlier, the and are we in supply. well underway And is which infrastructure strength me Pucks as yes, with expect continuing new let redesigning going And is backlog. the that company we're revenue holding intelligent only demand by QX the contributions explained this of out us year. use FPGAs, to right our well end

Operator

Peterman? follow-up, a Mr. there Was

Sam Peterman

Thanks. Gentlemen, it for sorry. That's me.

Operator

Thanks.

Ted Tewksbury

Okay.

I could up wrap takeaways. just the So main and maybe back big by the bringing picture everybody to

top new feel got have good upgraded great team management with about. We've all strategy talent. a the We we that

Directors the We're getting Board of the met and to overhang and off the We and an We second new great help infrastructure. traction investors. the revenue in have a sequentially quarter. uncertainty stock, customer right the Board of eliminating skills out industrial, the grew and robotics guidance of experience in founders next our intelligent for we company are The to level. take whole with

demand backlog strong QX. have in going into We

our supply redesign We track. efforts have products to constraints, but on our some are

increase solutions. have bank new a all low-cost detailed to $XXX the our to high-performance, path a we profitability. realign plan and million accelerate revenue a in cost things. margins our these map game-changing accomplish of to gross cash product to have have we with And structure We the road sensors to And balance

We Have everybody come. weeks to forward speaking to joining thank I look good us today. So with in afternoon. to that, for you a to want the

Operator

has you concluded. Thank today's conference attending presentation. The now for

disconnect. now may You

Velodyne Lidar (VLDR) 8 Aug 222022 Q2 Earnings call transcript