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First Quarter 2025 Earnings Update May 8, 2025
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2 May 8, 2025First Quarter 2025 Earnings Update Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Ouster 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,” “brings,” “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; future patent royalty revenues; anticipated new product launches and developments, Ouster’s use of artificial intelligence; 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; Ouster’s mitigation of disruptions resulting from an unpredictable geopolitical and macroeconomic environment; and Ouster’s business objectives, plans, and market growth, 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, 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 presentation 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. 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 Profit and Non-GAAP Gross Margin 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 believes that Non-GAAP Gross Profit and Non-GAAP Gross Margin 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. 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 presentation in the Appendix. Use of Estimates Unless otherwise indicated, information contained in this presentation concerning our industry, competitive position and the markets in which Ouster operates is based on information from independent industry and research organizations, other third-party sources and management estimates. Management estimates are derived from publicly available information released by independent industry analysts and other third-party sources, as well as data from our internal research, and are based on assumptions made by the Company upon reviewing such data, and the Company’s experience in, and knowledge of, such industry and markets, which the Company believes to be reasonable. In addition, projections, assumptions and estimates of the future performance of the industry in which Ouster operates and its future performance are necessarily subject to uncertainty and risk due to a variety of factors, including those described above and in our filings with the SEC. These and other factors could cause results to differ materially from those expressed in the estimates made by independent parties and by the Company. Trademarks and Copyrights This Presentation may contain trademarks, service marks, trade names and copyrights of other companies, which are the property of their respective owners. Any use of them does not imply affiliation or endorsement, and may be for educational purposes. Solely for convenience, some of the trademarks, service marks, trade names and copyrights referred to in this Presentation may be listed without the TM, SM, © or ® symbols, but Ouster will assert, to the fullest extent under applicable law, the rights of the applicable owners, if any, to these trademarks, service marks, trade names, and copyrights.
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Ouster Brings Physical AI to Life AI Software Solutions Autonomy Across Industries Digital Lidar Technology 3 May 8, 2025First Quarter 2025 Earnings Update
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4 May 8, 2025First Quarter 2025 Earnings Update Message from the CEO We are starting off the year on solid footing, delivering our 9th consecutive quarter of meeting or exceeding guidance and making meaningful progress on all three of our 2025 goals. We delivered quarterly revenue of $33 million and gross margin of 41%. Our balance sheet remains one of the strongest in the industry, with $171 million of cash and equivalents and no debt. During the quarter, we won multi-million dollar deals across all four of our verticals to support the scaling of our customers’ commercialization. The thousands of sensors shipped each quarter and growing installed base of connected software solutions underscore our customers’ confidence in both our product performance and long-term roadmap. Ouster is a Physical AI company. Our advanced perception solutions, powered by digital lidar combined with AI software, empower machines to perceive, understand, and interact with the physical world in real-time. This demands hardware and software that is not only intelligent, but rugged and scalable – qualities that we embed in every product. From bustling cities and remote farms to mines, ports, and global supply chains, Ouster is bringing Physical AI to life. Angus Pacala CEO and Cofounder
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2025 Strategic Business Priorities 5 May 8, 2025First Quarter 2025 Earnings Update Scale the software- attached business Transform the product portfolio Execute towards profitability
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6 May 8, 2025First Quarter 2025 Earnings Update SCALE the Software Attached Business $19B TAM1 Capture the $19B smart infrastructure opportunity LOGISTICS CROWD ANALYTICS INTELLIGENT TRANSPORTATION SYSTEMS PERIMETER SECURITY 1 Ouster internal estimates, 2030E.
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July 19, 2024 7 © OUSTER INC. / 2024 PROPRIETARY AND CONFIDENTIAL TRANSFORM the Product Portfolio Innovations anticipated to more than double our current addressable market ● All new hardware powered by next-generation custom silicon ● Powerful new capabilities embedded in firmware ● New developer tools in the Ouster SDK and Ouster Studio ● Increased software functionality in Ouster Gemini and BlueCity L4 CHRONOS OS SERIES NEXT-GENERATION SYSTEM ON A CHIP DF SERIES NEXT-GENERATION SYSTEM ON A CHIP May 8, 2025First Quarter 2025 Earnings Update
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8 May 8, 2025First Quarter 2025 Earnings Update Achieve 30-50% annual revenue growth Maintain gross margin at 35-40% Keep operating expenses at or below Q3 2023 levels ● Support customers moving into commercial production ● Grow sales pipeline in high-volume end markets ● Consumer ADAS as a major upside catalyst ● Drive value proposition with higher performance products ● Leverage low-cost contract manufacturing model ● Increase contribution from software-attached sales ● Expand use of lower cost locations ● Streamline spending with external vendors ● Optimize underutilized fixed assets EXECUTE Towards Profitability
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Q1 2025 Results 91 Non-GAAP gross margin is a non-GAAP financial metric. For a reconciliation of non-GAAP gross margin to GAAP gross margin, please see Appendix. 46% Non-GAAP gross margin1 Up from 36% in the first quarter of 2024 41% GAAP gross margin Up from 29% in the first quarter of 2024 $33M Revenue Up 26% vs. the first quarter of 2024 4,700+ Sensors shipped Up 6% vs. the first quarter of 2024 May 8, 2025First Quarter 2025 Earnings Update
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10 Q2 2025 Revenue Guidance $32 to $35 Million May 8, 2025First Quarter 2025 Earnings Update
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GAAP to Non-GAAP Reconciliation 12 2025 2024 2024 Gross profit on GAAP basis 13,483 7,425 13,183 Stock-Based Compensation 1,137 913 1,140 Amortization of acquired intangible assets 457 464 467 Excess & obsolete expenses & loss on firm purchases commitments - 572 (1,431) Gross profit on a non-GAAP basis 15,077 9,374 13,359 Gross margin on GAAP basis 41% 29% 44% Gross margin on non-GAAP basis 46% 36% 44% GROSS PROFIT MARGIN ($K) THREE MONTHS ENDED March 31 March 31 Dec 31 May 8, 2025First Quarter 2025 Earnings Update