Luminar Technologies(LAZR)2024-02-26 16:00Financial Performance - Luminar achieved nearly $70 million in revenue for FY'23, representing a 71% year-over-year growth, with Q4'23 revenue growing almost 100% year-over-year and 30% quarter-over-quarter[35]. - Q4 2023 revenue reached $22.1 million, representing a 99% year-over-year increase and a 30% quarter-over-quarter increase, but fell short of the guidance of approximately $75 million due to lower adjacent market sensor sales and slower revenue recognition[45]. - Total revenue for Q4 2023 reached $22,114,000, a 99% increase compared to $11,126,000 in Q4 2022[57]. - Product revenue was $17,001,000, up 103% from $8,357,000 in the same quarter last year[57]. - The net loss for Q4 2023 was $(148.4) million, or $(0.36) per share, which was within the guidance range of $(0.17) to $(0.21) provided in the previous quarter[47]. - Net loss for the year ended December 31, 2023, was $(571,269,000), compared to $(445,939,000) for the previous year[59]. - Non-GAAP net loss for Q4 2023 was $(83,634,000), compared to $(94,878,000) in Q4 2022[63]. - Cash flows from operating activities resulted in a net cash used of $(247,304,000) for the year 2023[59]. Order Book and Future Revenue - The company has a multi-billion dollar Order Book, which is expected to begin converting into material revenue in 2024, particularly with the launch of the Volvo EX90[9][12]. - The updated Order Book stands at approximately $3.8 billion, an increase of $800 million from 2023 awards, but adjusted down by $400 million due to more conservative volume and take rate assumptions[51][52]. - The Order Book serves as a forward-looking cumulative billings estimate for Luminar's hardware and software products, reflecting anticipated adoption rates by OEMs[78]. - Luminar expects significant revenue growth in 2024 driven by series production sensor sales as it reaches Volvo's start of production in Q2'24[39]. - The company expects a quarterly run rate of revenue in the mid-$30 million range in 2H'24, equating to an annualized run rate of approximately $140 million[43]. Operational Efficiency and Costs - The company incurred approximately $11 million in additional costs in Q4'23, impacting financials due to the industrialization of Iris and Iris+[34]. - The company incurred approximately $11 million in fixed cost burden impact and yield losses during Q4 2023, contributing to higher industrialization costs[46]. - The company is prioritizing operational and financial efficiency in 2024, leveraging a $1 billion investment in technology and manufacturing to drive down costs[30]. - The company plans to industrialize its next-gen LiDAR technology and improve operational efficiency in 2024, marking a transformational year[42]. - The company expects launch costs to decline as products are successfully industrialized, which may positively impact future financial performance[69]. Cash and Liquidity - The company ended 2023 with nearly $290 million in cash and marketable securities, and with a recently executed $50 million credit facility, it has $340 million in cash and liquidity, sufficient for at least two years[37]. - Cash and liquidity at the end of Q4 2023 was $290 million, with a $31 million quarter-over-quarter change and a new $50 million credit facility obtained[45][49]. - The company expects to end FY'24 with over $150 million in cash and liquidity, providing at least two years of runway from the current date[43]. - Ending cash, cash equivalents, and restricted cash increased to $140,624,000 from $71,105,000 year-over-year[59]. Research and Development - The company is focusing on enhancing its LiDAR ecosystem, having launched the Luminar AI Engine and produced six new types of chips to improve performance and reduce costs[23][24]. - Various software capabilities are still in development and have not yet achieved 'technological feasibility' or 'production ready' status, indicating ongoing R&D efforts[70]. - The company is focused on achieving key milestones for FY 2024, including manufacturing scale-up and next-gen LIDAR prototype development[72]. - Research and development expenses were $62,745,000 for Q4 2023, slightly down from $64,925,000 in Q4 2022[57]. - Research and development expenses for Q4 2023 were $14.942 million, up from $12.886 million in Q3 2023, and $13.756 million in Q4 2022[66]. Partnerships and Product Development - Luminar's partnerships with automakers like Mercedes-Benz and Polestar have expanded, with new vehicle models being integrated into their next-generation lineups[19][21]. - Luminar's Iris sensor has passed Volvo Cars' initial production audit, and the company has begun delivering products to customers from its high-volume manufacturing facility in Mexico[15][16]. - The company aims to achieve global start of production (SOP) and ramp with Volvo in 2H'24, alongside launching a new TPK facility for additional capacity[44]. - Luminar plans to showcase next-generation LiDAR technology at the upcoming Luminar Day, highlighting improvements in performance, safety, and cost[27]. Financial Metrics - The gross loss for Q4 2023 was $(21.6) million on a GAAP basis, which was below the target for a positive non-GAAP gross margin[46]. - Gross loss for Q4 2023 was $(21,571,000), compared to $(16,600,000) in Q4 2022, reflecting a decline in gross margin[61]. - Operating expenses totaled $127,021,000 in Q4 2023, an increase from $124,077,000 in Q4 2022[62]. - The total cost of sales for the twelve months ended December 31, 2023, was $207.132 million, compared to $162.405 million for the same period in 2022, reflecting a year-over-year increase of 27.5%[66]. - The company incurred $4.323 million in intangible amortization for the twelve months ended December 31, 2023, compared to $2.237 million in 2022, indicating a significant increase[66]. - Total stock-based compensation for Q4 2023 was $47.101 million, an increase from $44.882 million in Q3 2023, and $44.531 million in Q4 2022[66].