OUST - Earnings call 1 2023

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Operator

Good afternoon, and welcome, everyone, to the Ouster's First Quarter Earnings Conference Call. [Operator Instructions] The call today is being recorded, and a replay of the call will be available on the Ouster Investor Relations website an hour after the completion of this call. I'd now like to turn the conference over to Sarah Ewing, Director of Investor Relations. Please go ahead.

Sarah Ewing

Thank you, and good afternoon, everyone. us XXXX joining call. quarter for you for first our earnings Thank joined Executive Mark Financial Chief by Weinswig. Angus I'm Ouster's Chief Officer, today Pacala; and Officer,

you Ouster's from while with may for that to differ are applications and releases, forward-looking results are uncertainties intended Thus, of management's that actual customer commercial during Litigation Before potential published release XXXX Ouster's expectations Investor ouster.com. I'd current announcing like today. company's statements of product course benefits statements first conference quarter quarter on we the earlier we forward-looking recognize the results these customer call, the strategic from statements. There risks trajectory The Relations covered Ouster and presentation, information the its prepared merger financial are company's also company which be results. Act remind actual benefits anticipated company, near- safe you expectations customer management the the release, future shipments, forward-looking of we achieved. is by available several also today, provisions ability the and guidance press no of savings cost remind of business be from opportunities, everyone press investor Private this opportunities, that like that revenue and represent the would agreements, performance, products, guarantee a XXXX and issued XXXX future traction begin statements and with to future the that Velodyne, cause an section technological and targets, that to such market initiatives, paths, plans, of regarding to and will remarks, is materially discuss long-term harbor future Reform and second orders market advancements share certain outlook subject including new trends, share to Securities its will potential estimates may and synergies expectations, to forecasts, results anticipated

computations important required and this In files SEC. and annual the any or this you during to that call. Information no are reports affect rule on as risks or other may XX-K report any this factors reasonable with in the which knowledge expressed materially risk such assumptions on which from reviewing and assumptions upon and estimates, sources available as markets. from risks, are data and cause industry it information differ experience and based are other management derived and and Except recent addition forward-looking that for after of from definition, estimates. company the by research third-party of the to on results publicly regulation, in discussed organizations, operates are research Form consider company's law, internal is the company the on with any company's based disclosures obligation markets the as these of and by independent other date call, which reason call and industry most competitive in industry data analysts update future released uncertainty the statements from third-party sources position industry such to its subject to furnishes information and concerning the well those highlighted undertakes independent described should other made in results could and carefully By Ouster's

and supplement our in outlined transactions which we non-GAAP as outside of exclude core call, as operations measures a GAAP. financial for measures today's substitute the non-GAAP measures, financial a considered with and discuss to be we consider prepared should certain be release. These press to in not this During effects will accordance events

to measures, now the call like most turn during press discussed comparable directly to of reconciliation refer Angus. please the to over a this I'd For measures today's to GAAP non-GAAP release. financial call

Charles Pacala

thank and everyone, today. joining afternoon, Good you for us

quarter investors XXXX sharp can and continue Ouster's out update, investors Companies that alike and share dynamics, first sparks. entered realized share our be the positioning. have perception I strategic few challenging want these the lines number and market immune market the Ouster of has on out. feel. pain It's we results on our since with turn a a through the public LiDAR be companies to a the correction. the of is of industry led environment market challenging coupled to products time Before to of to that and state and manufacture taken industry has to not pushed This, I sharp macroeconomic a market clear thoughts business report LiDAR

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DF production map This with form road B our sampled DF early B digital samples critical the strategic customers automotive partner. samples These factor by also or for half OEM final including are first represent in are solid-state a series be deliver in our We for to is automotive sensors, time early our high-volume on for the commercial programs. track engagements year. to this which milestone of automotive of on automakers, and sensors second expected our the our flash

efficiency, will range chip, will DF already samples Chronos our targeting level, board, is cloud Godzilla, long at including chip. today, sensor current with range our We our detection our and take producing performance silicon silicon, rich time and next accuracy. dynamic sensors B With over Chronos the the power state-of-the-art the point improved across mature high chip by resolution, to resolution. The memory, next-generation operational data Godzilla, our DF replacing

tape the performance, into As Series, later ISO the second the integrate is half chip and advantage and the year. this DF to this meet according early intend year DF chip to cost line flexibility Ouster's to the Chronos XXXXX of next to designed ASIL-B wait AEC-QXXX in demonstrate Chronos year. product first I of to safety the the out the functional cannot requirements backbone qualifications. sample chip automotive automotive units We and of

including we're our software the digital on new LiDAR combination combined our BlueCity, a our customer seeing new of OSDome, to Ouster offerings, hardware, solutions. Turning fantastic and Gemini solutions with software business the response built to our

for on deployment sensor earlier this OS With for systems, unify vertical, of deployments plans system more included BlueCity opportunity also better cameras global the of as year of billion, is competitive growing LiDAR market high-performance dollar security infrastructure deliver that It at now cost bookings stockholders. Starting initiatives $XX than cost rebounded $XX merger opportunity on a Ouster for presents crowd partnering part deployments of U.S. Gemini world with and add to for a average support the of around to We long-term with our prices to to our for our capture. million X already market our business us infrastructure will quarter-on-quarter around first within the synergies software markets. Ouster position features more combined savings, products quarter and are and retail integrators the will an Ouster grant and requires analytics As support an of integration, intersections world provided growth to products. be market funding strong $XX value that go-forward infrastructure signalized in we bill. poised and Capturing have LiDAR infrastructure our we performance XXXX, strong deployments and we be new accelerate is part million for multibillion by program the BlueCity there transportation the of that these smart already estimated and large requires end active of including system software, these immediate and financially million. intelligent Each customers. annualized LiDAR a millions well and ongoing awarded basis to can smart a basis. hundreds the These are into selling with were solutions smart annualized targeting the monitoring. compatibility, overall the underpinned currently to security $XX the smart in to of

look synergies continue forward following We to with identify and credible later new this a to the providing and business thoughtful year. market integration model

second Thailand in this of by VLS-XXX fully the the transition end by outsourced the sensors to Fabrinet and completed on the first the end quarter. As part to the of also the of Ouster's strategy, track the we manufacturing in year. quarter VLP-XX VLP-XX transition We're of

catalyze steps In addition the property Chinese a ongoing Hesai. its growth, ensure strengthen competition with overall new efforts against the to Trade is maker, to complaint the to intellectual we enforce filed a Ouster patent April, business and LiDAR in International our and Commission U.S. fair also the taking market. In infringement

patent And has the industry seeking Court U.S. filed an patent for the families and holds infringement infringement a patent of in Ouster had LiDAR of Hesai enforced has largest its the District filed the also defended patent We monetary Delaware, against barred. and CFO, and complaint one well injunction while claims context on District Weinswig, progress. and turn damages. to We with multiple on integration against our our it, successfully second the Hesai in intend our for enforce outlook provide results further it more details for provide infringing I'll the our to first financial as that, previously. patents portfolio to until quarter quarter are Mark the near-term over as products vigorously

Mark Weinswig

Angus, includes first and the In multiple handling Ouster's completing driving towards automation automotive revenue with and sales warehouse includes our model and in of the plan sensors, XXXX. a average we million in to for customers and Velodyne existing by of and quarter closing customer results, rebound product the merger quarter large XXXX. autonomous the This material drove provide closely as we we represents applications. To for followed million aerial expected from our strong new of business you, This the which revenue, customers. Industrial efforts industry-leading February received of a customers over report our first a in trajectory. majority XX% significant robotics our REVX we business shuttles XXXX. in XXXX with increasing in mapping book-to-bill since on define from and quarter, realigning quarter, and Further, progress with XX, bookings growth first the approximately good everyone. saw fourth of sales, the Thank prices first for Starting selling revenue $XX.X in recognized We demand quarter quarter merger million this quarterly our afternoon, made ratio the accounting in sales period. of contract which off record we the our vertical. integration the bookings, color, orders ground additional first $XX X.X% binding vehicles, shipments booked and approximately in during quarter $X.X

booked over and fiscal increase opening shipments shipped up quarter increases the first is $XX sensors, may for XX% demand REVX our merger. we you competitiveness. new This doubles more the traction our in a market quarter, As Velodyne X,XXX million opportunities than of first inclusive commercial product sensors of We increased XXXX. which our by the serviceable over of XXXX, in overall after by recall, business driven

over quarter REVX XXXX fourth sensors position the the quarter sensors of through across in move the new from $XXX Ouster up sheet negative saw lower over XXXX. Ouster is quarter unusual XX a Ouster's product of X% OS of customers the XX incorporated purchase associated the cash, most of gross as quarter as from XXXX. with the million of and XX, balance including and the transitioning of recording XXXX, the sensors. We on XX% the cash March investments levels or and XXX commitment countries margins in losses gross customers shipped equivalents family in short-term lower performant certain and in non-GAAP expenses excess of gross margin with over of gross strong to market, These million first obsolete to nonrecurring REVX in first believe We in first we our were and XXXX, lines $X.X margins items, strong also with REVX a consolidation manufacturing margin. XXXX. XXX customers

a manufacturing of the demand the year. accelerated long-term demand completed our meet of our line transition we sensor the to XXXX. the end the all is combination of manufacturer VOS-XXX the transition the sensor Velodyne transition to The road outsourced outsource improved of On fundamentals the plan our the time expand next provide unusual price first in the to transition provide second rebound of in a the in gross remain a strategy higher sensors from all to REVX lines the quarters, improvement end integration, baseline in and of and an VLP to first high-performance the in effort leading Velodyne our the Ouster's XXXX. headway of significant to other XXXX We VOP-XX a over between to Given the few for the expenses over per by next-generation of products fourth performance. Despite the REVX and critical half the help an on gross of reduce of prior quarter value ASPs we the the XXXX, help activities illustrate quarter nonrecurring approximately and impacts, approximately quarter-on-quarter demand quarter quarter business ASPs to were to ASPs bolstered the in these premium integration-related and near-term to as or market. goal This first nature we future outsourced track quarter. out in sensor efforts the margins, by sensors increasing made sensor merger quarter delineation well in map our our demand clear as X,XXX of us significant costs. for by of in break manufacturing extraordinary operating impacts Thailand. We customer and to second nonrecurring for the us full in ability our in XXXX of to increasing product X,XXX with The margins

our to merger activities. integration Turning

cost we achieve rate to as a expense reduction companies structure with primarily annual million. of of cost baselined the an a over focus reductions cost significant of growth run necessary operations and cash of X implemented quarter by first activities that the lighter the the These of the resulted impacted approximately our on taken employees XXXX. programs, Exiting of team. Merger cost $XX of the business against XXX costs force our joint structures creation R&D that the synergies estimated have third as duplicative announced quarter, stand-alone build trajectory. steps end We and aligns integration included the reduced to first a the million $XX in general activities approximately administrative and industry's onetime quarter in

now track synergies are and on million, annualized increasing of our We $XX million $XX cost between our to fourth target quarter announced cost in exceed savings the exiting previously XXXX. million of estimate $XX to

expect up expenses. $X We in acquire additional million an to these efforts to onetime cash

Our integration as make we go-forward plan business long-term further combined success us completed, a realizing structure. By cost gives our company that our improvements cost these key earnings activities to quarter in third the a confidence for on well structure detail can present expect greater to on we as once basis. cost the are call, our savings business

Ouster working work the long-term We activities continue significant first to our we are the the and also progress long-term quarter, through necessary made the update market steps top on and while and develop position future taking are integration for line as success plan. we'll costs. to We revenues containing grow to in

to Now guidance. turning

the puts manufacturing in $XX second activities, targeting Similar OS For expect million revenue, XXXX, and in need million themselves. our to believe confident as And margins continue a REVX and efforts with in technology on in merger must place over pressure work, gross financial first to to quarter progress products year. we is we a our of path these like company competitive non-GAAP That transition and start profitability. include of outlook. continued the sensors call the us for we well Velodyne the put all as manufacturing we our due expect entire back said, Ultimately, diversified to will outsource resilient second GAAP would quarter towards of sensors. as We gross the between half is to Ouster of margin ongoing results and speak We to long-term period. the that, but converge second margins for the the market both to do XXXX remain experience make for that to combined to the quarter, and turn our have the on business right approach to LiDAR the model sales which $XX integration from Angus. I

Charles Pacala

Mark. Thanks,

and for every automotive position about and of an critical a diverse has that transportation automation set a long-term agrees that XXX Ouster solidifying exciting Just market and LiDAR is and road incredible upstart future over team, autonomy product as smart industrial OEM, the our technologies. an is of customers expert map leader.

mover like competitive our Our in advantage especially cash Q&A. it position open with industry. maturing scale, significant this gives I'd first for that, And status, to and technology us

Operator

We comes question-and-answer from the will today Cassidy from now the [Operator question from Instructions] session. begin first Our of Rosenblatt. Kevin line

Kevin Cassidy

on Congratulations outlook. can great is you backlog of we Can say willing how looking Are June you that quarter. revenue detail? give that guidance, on already? in -- much to the your much Nice

Mark Weinswig

We appreciate question. the

not from bookings, have very, included We well-balanced million giving as quarter the metric strong about really series, I levels. is thing metric. the And and very this highest Ouster. that a very that that for the was ever excited is VLP-XX, bookings that, it with. something products bookings OS $XX that quarter think the happy we're We VLP-XX, very, great level about in hit for VLS-XXX, The backlog been we're a

Kevin Cassidy

first But you you I over are I this many sampling to customers how guess work year to talking second you when customers do automotive, Okay. you'd half B the sampling? I'm on impressed get the that when willing sample? be about And DF be the testing How think understand. samples. you're of then with XXX REVX. the very to many

Charles Pacala

the in The the scale really the sensor. I'd OS Yes. quickly many base, that's that the these like quarter. last that REVX production in at Great of sensor REVX sampling customer first, benefits our adopted this have And customer point. cases of customers the not to majority revenue sensors are highlight And question, Kevin. REVX a base drove

that with dynamic that's XXX performance a business, automotive this The form -- DF samples factor customers that step but stage mature a final forward we're different super point rich spec of B QX our device very in is that well, a So alone. of going significant to customer hundreds development, for a a the across customers their cloud meets be is given real first putting time of the need hands. mature the in

anymore. to able so automakers. And aren't interested And easily already. industry to them entire Tier these in to one sample we'll be of prototypes of a is sample in X again, able partners, be the upwards sample. to and a contact OEMs with large And that large major taking of and that number There's to number of every XX we're those we'll

we assess in customer start So this for need a of at doesn't mature issue see product. pushing these this given a towards any handholding don't style to lot customers quite to is supplying this a it point, product of

Operator

Baird. Gerra Our next question comes of Tristan the from line from

Tristan Gerra

this I to the same raise have million in should you when burn look $XXX of ballpark as in your expectation? indication next for at the cash around need against the OpEx at position a that I terms of cash year. Is be cash this time, this how year? of your and could at year And good for this

Mark Weinswig

Yes.

of ahead first is which completing obviously merger the is schedule. now Our say right to we're priority integration, happy

been third $XX business. million year. a company key of as between a And million By earnings be integration be synergies prior QX realize able to million to quarter in synergies. call, for versus combined total present that long-term our we completed activities we're plan the We expect -- the the $XX and have the in $XX now seen will and able we'll forecasting

are financial And development in short-term from results these. both seen key certain the in And are we performance continuing with invest projects. have LiDAR the to We some great we long-term industry. balancing opportunity large the

need We to As Angus that mentioned capital as very fast sensor happy in can cash and to operate very, as on something our what so may continue levels what our those and our we we REVX we may we raise efficient new additional success grow business we we us can depending very opportunities. are to sure huge making we're the and been has in basis. invest that our with. a to that organization for utilize need we finance, how that well before, sure are can a future it's investment -- making the continue But on

Tristan Gerra

Great. design Velodyne That's second that Okay. guiding if should are own on how at before look useful. And revenue ramp be could very My question, that headwind not of understand my quarterly then your the beyond I be would quarters in question you're for rate? you QX. I wins run revenue that declining, more how much your a the future materially?

Charles Pacala

Velodyne to -- term and VLS-XXX that product for to digital of expecting company. kind Yes. to we're LiDAR set absolutely of Motional a positive the were business lot as of and stand products, the of we I is thing the talk have around. mature and building But behind. business good transitioning that still and I Fabrinet immediate the mean significant long-term a about have in Ouster's a market lines. continues of that exactly continue did margin they companies' significant products certain better for combination we kind well. we that. support to long which structure this And as intend do a part of performance The Motional a well, now an X of the feel -- those And really about the the of perform customers I combination great because is exclusive example I'd a extremely the highlight long-range outcome promise

products REVX release. and benefit the we and good ongoing the are investment bringing in long-term things the in feeling of the table see that digital these about the as really to So we're value road map that Velodyne invest like continue benefits to

Operator

question Chardan next from Brian of Capital from comes the Dobson Our line Markets.

Brian Dobson

stronger So pace seeing are out next the what years? potential of clients? over look increase you as among adoption guess, landscape, you I industrial orders confidence through you or a X in the And gives broader about industrial

Mark Weinswig

for Thanks question. the

couple industrial So business. positive there a are really around our notes of

put back as in through of highlighted -- really industrial first highly developing in and in came And that's strong deploying quarter think in going driving through orders capable good the building then of ASP and future. is as margin announced see momentum us term. company. XX% last $XX right I of we're where place the Ouster from XXXX it quarter concerted a dependable, as for last in we the business a at And that's that last and the those long robotics customers. the with the stand-alone highlight that bookings for and in at our we bookings technology -- year. indicator million quarter, our We this a million scale is I'd in bookings of we structure this business that for on the And in last $XX halfway and a production very customers strategy the

us. we're very grow So seeing for a strong more visibility and more this ratio future metric and into our as book-to-bill the bookings becomes

Brian Dobson

or municipalities type earlier Excellent. impressive When initiatives? it, you cities CES in year, met you pedestrian their, very safety interest we Are for technology technology. crosswalk of this at some from call that showcased seeing

Mark Weinswig

Absolutely.

the of incorporated merged were the there as was So triggering we an system overall offering of are of -- lights. even America smart there and business. there's the market. lights BlueCity Gemini have response that's traffic customer the been bill. and a first driving broader now traffic we've that a are Gemini. demonstrating BlueCity of crosswalks Velodyne on hundreds have seen Gemini software And that the a lot alone fantastic the And we capable real from portfolio in U.S. deployments whether that this North capability. is this expansion into is grants an platform And into infrastructure technology of and in that Collectively, named BlueCity -- release between expanded We've from the smart or of signals, what tailwinds we round cross infrastructure

to that along. X of initial in those other this are that helping nominated there business now are tailwinds We just grants smart show are

meaningful very I real part lot this expect a of have our one expectation It's into long grow business to I term. excitement So a of around industry. that and

Operator

Capital. next from Our Garrigan of from question line WestPark comes the Kevin

Kevin Garrigan

of and start ramp? On platform, generation opportunity really remind may you can us the Gemini the revenue there when revenue just to

Mark Weinswig

Yes.

under packaging traditional customer. Gemini sale LiDAR space. Gemini infrastructure released significant a combination company would offer of the solution. Historically, in hardware for other we one and And can best-in-class from in deals also CES. really at to already made we best-in-class And a of offer kind can complete the to but have a LiDAR is are On software a that now the what so us. platform alongside And bring shop where there's and and one-stop just program, one Gemini been Gemini And that as we number have the a is a now best-in-class hardware QX one what been seeing we've there the solution really table rich complete no we're customer have a such software and roof, of software combined suppliers, interaction those perspective, something integrators. with smart we've entity. perspective, product from been there dealing

So whatnot. a that becomes in start business, new is -- part. And Gemini a it's we benefits improved more and meaningful do we'll and we'll that break out margins my of to meaningful it part business, becomes hope bringing of when that show the overall terms as the

Kevin Garrigan

the Okay. to seeing you has been during how macroeconomic any quarters. then Got pressures it. going talked quarter of the last the worsening negotiation macroeconomic or And Are you've customers? past even over far with kind or any And X ago? couple front, improvements of quarter on compared months so about

Mark Weinswig

year results Well, I $XX a and very in million. it's strong mean rebounding We've of how out environment in technology. are growing for developing I more, macroeconomic our business Highlight think that for really baked to or this parse now results the ASPs difficult the a headwind. our -- been us, a own record into bookings and way at their revenue, and with the is this point it's into and QX customers

automotive downturn seen hit customers trucking we've something in robotics expecting be we're industrial really before, for again, diversification did despite robotaxi, industries to our climate. Ouster's this success. operating an robot others continued on customers So strong But have seeing. And harder We the see results the normal, some is see customers, in are customers. critical whatever now we from highlighted of my that some perspective, than in is of I've our headwinds been so basis may surge ongoing in a across and and the our new

and we've Now traction smart of invested infrastructure a vertical lot in see our there.

So we're filling that in think cannot. the a way I gaps diversified in other that companies haven't

Operator

from Craig-Hallum comes Group. Capital Richard of question Shannon next Our from the line

Richard Shannon

going asked about a or a something to couple got to I Any chance of today offer you're do wait quarters? Mark, on breakeven last the call, we model. you conference

Mark Weinswig

the appreciate question, I Richard.

and focus is subject you As now the about and in day of a We've completing taken every our of integration this to of before We've tell and significant the significant the organization about products We to talk the meeting. we on profitability can reduction right main administrative in those. Thailand most February. talk steps we path. we expedited our all that and a I general the that the put transfer of talked over about path headcount just call, We what to in put start activities. activities. really the made probably path actually our lot is started the that to us us on operations Velodyne consolidated

what look kind taken, key next entire of the some going would through phase But that integration the until the is R&D. elimination of the it's bit say, I little the, early too those profitability So a steps this of like. activities, get are to we've of walk plan probably of through to we duplicative

Richard Shannon

a then you couple of Fair Mark. in enough. Okay. quarters, I'll ask

quarter, have when when quarter. to Second of me sensor question you quite you half been REVX-based how get quantify, excited want last than from the the much come can't is in -- bookings a And when that. had can of suggest to more for your like bookings bookings a about products? you talked REVX, we first REVX if see strong we or I breakeven related see might sense I you guess on about you the sounded

Mark Weinswig

adopt general that ready in OS how sensor premium QX, to a overall again, margin delivery is REVXs demand QX kind industry and highlighting we ramped positive driven into great business happy to customers. and products. actually the full ASPs issue from Yes. the new And of came for for is customers capability, a it, to an quickly of the production the products and come majority has with those QX complete the that's hadn't and The not here now LiDAR REVX lineup. the the from say of were we've And these by to capability Well, OS our with being performance I'm with always time our this just by where with bookings where and issue great at REVX revenue again. And Ouster about over we products half gotten the pricing driven commanding. of to something and are premium proven sensor REVXs that the that to go in rebounding through and again, performance issue shipped

to those. and open And LX sets the So mentioned to chip this new REVX. because on we expect be in call. new road should the positive map those customer invest up release I digital the pricing further And new why invest we opportunities, as is the opportunity business. really we REVX, to -- reason we into it's we a for know continuing see

Richard Shannon

of REVX-based? end kind percentage And toward think of Angus, if look do this might question, would you of or I the bookings what if revenues the kind you your year, extend of be

Charles Pacala

of book be sensors, expect be sensors REVX. the the it Well, I if OS majority will to talking that we're we vast

not of the or it them. to mix, to sensor sensor something terms Velodyne estimate We the overall up base an leave position right whether OS to which is I'm at in the sensor, decide point. one this legacy a customer that's ultimately that a it's In for

Richard Shannon

here. me, proforma to about margins. trajectory first like number here question making gross nice progress manufacturing a had And we enough. in like not this a mix. last on closer more you're year. the I'm some mix side. I'll if sounds touching have On might you sure the Wondering for line It Fair throughout basis, It going how Okay. changing your jump quarter. think been seems on expecting I'm the normal. you're on any

us gross you how would So that? have expect in rest we the margins should Or the improving about year? improvements think throughout of

Charles Pacala

Yes.

a that our little the showing in quarter. will expansion margins integration-related and forward of would products of over on a to something great manufacturers a is it contract up, Richard, be. And bit couple non-GAAP, progress the of the the going One had We region higher that gross the excited talked and about for call quarters, those, about QX obviously, gross activities, lead making to from manufacturing that and improvement REVX third that the side of Velodyne to time. our very the bit factors for last appreciate saw getting progress to additional have you mentioned, the first you margin little on and the lower-cost of bringing I in progress having was impact through we're biggest the is as we move fourth some we what ASPs. We're to look is QX the but additional historical in

Operator

Our next question comes from Citi. the line of Itay Michaeli from

Itay Michaeli

A couple of questions.

win about think this to across could and announced, open do up led more you win might that for Angus, kind hoping first, what talk the Motional of robotaxi you specifically you players. other opportunities Just whether new

Charles Pacala

exclusive product. about say selling supplier I'm capability We're for step. are really sophisticated The companies a for great to hundreds and a all a is partner. And represents start Obviously, and -- is Getting that was the Ouster product very it's partner a the a product. Motional. that's technology speak And need product. Historically, the a been LiDAR happy and new now this for there one manufacturing supplier as today of won. reputable it's ultimately, to very mature it's key the a need company But itself, the get robotaxi reasons in partner, is to fantastic for that approach. that their production to platform of that of product to Thanks And that we Ouster fantastic VLS-XXX an a is the supplying partner where things. product Motional for. a to big question. point is actually, now engagement a about able company the been X Well, we're the we're Yes. fantastic that that's that VLS-XXX this like

to good And And and internally doing that, to -- more margin, also so things doing. sure that this positive we're chance build open sell by making we're these thing a more can we the the is which we up partners. with doing

it where this And do I We're to in the we think to part investing your make I want this. think so yes, parties expands of can sure as as many And interested can. we offer can question, to that start we XXX. get the we last VLS

Itay Michaeli

Maybe second competitive the and just you've landscape broader environment of environment a consolidation. That's the a several a today go all the was broadly or Is maybe macro same? about it talk -- to question. is today. Is easier lot competitive tough, some it months seen ago? Obviously, few of And very just the helpful. competition, back and just worse? than what

Ouster one has as competitive -- too continued I think itself the retain time There's environment and goes has that gets companies natural as ship in can that a to There's many field easier easier happen. winnowing the the to and on. merger can product LiDAR and for that over for and and and see customers field that activity. distinguish margins But much getting time investors us -- a I yes, the -- so things competitive with landscape and clearer positive thinning can being near-term also exception the generate analysts. gross this

Operator

final of Sheppard Andres from Fitzgerald. Our comes from Cantor question the line

Andres Sheppard-Slinger

we one to should think seasonality, us on color you about there? additional this in up of those the I of largest maybe a of Any second How to revenues. in of as comprise in that's touched those guess, able remaining of follow year where gross just terms know the the half wanted the amount be provide might we particular, the I strong I with thinking on quarter. questions. Congratulations for I margins. be year

Charles Pacala

Yes.

today's obviously, between our hit Ouster release. non-GAAP impacted any On press basis, a at that for looking quarter, those margins we GAAP in were So historically and given around gross the of items we some somewhere XX% quarter. has listed on been the XX%. XX% by

product allowed continue really a good operations sell is us that region. some in over products than activities to consolidation else the we've was of about of And margin. because goal margins. it -- ASPs talked expand increased the the REVX to our release significantly to a to at the a We've of continue terms to lower-cost importantly team, done anything at of Our moving our very more and

going there continue continue been So that confident hiccup. can a our we can sell kind companies in about one sensor, has over we're margin. be to very, especially the given I that can be of good gross or can it that to a deliver expect very feel a Obviously, of should expand we blip as overall, Ouster merger think in as that only of -- a a And through our fact our But long-term the and we products industry the trajectory. positive at -- that next-generation time. call we do our expect there and more integration, we'll margins quarter, any gross the

Andres Sheppard-Slinger

But it. And point. of Got have maybe just last helpful. questions super clarify a been one That's already. to asked lot our

again, of In will the and the $XXX fund to is industry. of that that the that's the my if least years, the cash understanding a next strong the at which terms in to business, million, with believe, position is sufficient I be to relative case, balance couple

cash So mind with what Or just can balance? the that? expected of current you kind runway of is kind confirming the

Mark Weinswig

Yes.

the of strong So end a in we're as you in March. $XXX mentioned, very cash million position, as cash of

opportunity. certain least to But the transfer Thailand, more $XX is on of early to over this the facilities. sure some path high-growth stay taken to to path. Velodyne know needed LiDAR decisive of manufacturing taking have included at put position million $XX is we're that certain going of are and products a to We This in business. that closing us million to steps. there our profitability, And to on we're on we the a actions capitalize that make action a fast-growing of synergies, multibillion-dollar this our

we a and in equipment as to some any are in some investments point. capital think such, may we We're need to see because leave -- as may and we we cash. this have capital not this the option we capital make are But we going in to do invest going definitely time, we're open this new million And cash may we need inventory. we As -- that future, do that products. do that, the need while at huge we at is additional enough $XXX going and opportunity,

Operator

turn I'd And Pacala for this Angus closing does conclude conference over our back like question-and-answer session. to remarks. the to

Charles Pacala

get the asking off. thank on to the questions. time sign I and that, all. everyone for you I'll Thanks. And want call to Thank with And spending

Operator

today's gentlemen, concluded. has and now conference Thank you the presentation. attending for Ladies

Ouster (OUST) 11 May 232023 Q1 Earnings call transcript