Ouster(US:OUST)2022-11-08 23:12Financial Data and Key Metrics Changes - In Q3 2022, Velodyne reported billings of $12.5 million, exceeding guidance of $10 million to $12 million, while revenue was $9.6 million, within the guidance range of $8 million to $11 million [12][41] - The company experienced a GAAP gross loss of $10.9 million, compared to a gross loss of $7.1 million in Q2 2022, impacted by $7 million in charges [42] - Non-GAAP net loss was $27.6 million or $0.13 per share, an improvement from a non-GAAP net loss of $35.7 million or $0.18 per share in the previous quarter [44] Business Line Data and Key Metrics Changes - Sales in early autonomous markets, including industrial, robotics, and intelligent infrastructure, accounted for 85% of Q3 sales, up from 53% in the previous quarter [17] - Product revenue was $7.4 million, down from $9.7 million in Q2 2022, while license and services revenue increased to $2.2 million from $1.9 million [41] Market Data and Key Metrics Changes - The available market for lidar in industrial and robotics is projected to grow from $1.8 billion in 2021 to $2.6 billion in 2027, indicating strong future demand [17] - The smart infrastructure market is expected to grow from $108 million in 2021 to $1.1 billion in 2027, representing a 51% compound annual growth rate [21] Company Strategy and Development Direction - Velodyne aims to transform into a leading supplier of AI-powered lidar solutions, focusing on four strategic pillars: driving sales in early autonomous markets, developing low-cost sensors, expanding software solutions, and leading in high-volume manufacturing [16][29] - The acquisition of Bluecity enhances Velodyne's capabilities in intelligent infrastructure and traffic systems, integrating AI software with lidar sensors [22][23] Management's Comments on Operating Environment and Future Outlook - Management noted strong demand for Velodyne's products, with expectations for billings between $13 million and $15 million in Q4 2022, driven by new long-term customer agreements [34][35] - The company is optimistic about overcoming supply chain constraints and expects to see better financial results, including revenue growth and improved gross margins [33][84] Other Important Information - Velodyne announced a planned all-stock merger with Ouster, expected to close in the first half of 2023, which is anticipated to create significant synergies and enhance value for shareholders [36][38] Q&A Session Summary Question: What percentage of billings is from existing vs. new customers? - Approximately 80% to 90% of billings are from existing customers, but new multi-year agreements indicate growth in the customer base [53][54] Question: How prepared is the supply chain for scaling? - Significant progress has been made in improving the supply chain, with expectations to overcome constraints by early 2023 [56][57] Question: What are the competitive differentiations with Ouster? - Velodyne uses 905-nanometer laser time-of-flight technology, while Ouster employs SPAD and VCSEL-based technology, which are complementary [62] Question: How is the company addressing macroeconomic concerns? - Demand remains strong in early autonomous markets, with no significant hesitation from customers despite macroeconomic concerns [80][81]