Earnings release
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Ouster Announces Strong Operating Results for First Quarter 2025 May 8, 2025 Revenue of $33 million and GAAP gross margin of 41% SAN FRANCISCO--(BUSINESS WIRE)--May 8, 2025-- Ouster, Inc. (Nasdaq: OUST) (“Ouster” or the “Company”), a global leader in high-performance lidar sensors and intelligent software solutions, powering Physical AI across the automotive, industrial, robotics and smart infrastructure sectors, announced today financial results for the three months ended March 31, 2025. First Quarter 2025 Highlights $33 million in revenue, up 26% year over year and 8% sequentially. Shipped approximately 4,700 sensors for revenue. GAAP gross margin of 41%, compared to 29% in the first quarter of 2024 and 44% in the fourth quarter of 2024. Non-GAAP gross margin 1 of 46%, compared to 36% in the first quarter of 2024 and 44% in the fourth quarter of 2024. Net loss of $22 million, compared to $24 million in the first quarter of 2024 and $24 million in the fourth quarter of 2024. Adjusted EBITDA1 loss of $8 million, compared to a loss of $12 million in the first quarter of 2024 and a loss of $10 million in the fourth quarter of 2024. Cash, cash equivalents, restricted cash, and short-term investments balance of $171 million as of March 31, 2025. “Our strong first quarter results demonstrate continued operational execution. We generated revenue of $33 million and gross margin of 41%, winning multimillion dollar deals across all four of our verticals. 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.” said Ouster CEO Angus Pacala. “As a Physical AI company, Ouster offers advanced perception solutions powered by digital lidar combined with AI software to empower machines to perceive, understand, and interact with the physical world in real time.” Ouster delivered quarterly revenue of $33 million, which includes revenue for certain patent royalty of approximately $2 million. Demand in the first quarter was primarily driven by customers in the industrial and automotive verticals for use cases in warehouse automation, yard logistics, and robotaxis. GAAP gross margin increased to 41%, an improvement of approximately 1,200 basis points year over year, resulting from higher revenues, favorable product mix, and the patent royalty. Non-GAAP gross margin increased to 46%, an improvement of approximately 1,000 basis points year over year. The patent royalty had a positive impact of approximately 300 basis points on GAAP and Non-GAAP gross margin. Non-GAAP gross margin excludes the impact of stock-based compensation expenses and certain other items outside of ordinary operations. The Company continues to work closely with customers to mitigate any disruptions resulting from the unpredictable geopolitical and macroeconomic environment. _______________ 1 Adjusted EBITDA loss and non-GAAP gross margin are non-GAAP financial measures. See Non-GAAP Financial Measures for additional information and reconciliations of these measures to their respective most directly comparable financial measures calculated in accordance with U.S. GAAP. Second Quarter 2025 Outlook For the second quarter of 2025, Ouster expects to achieve $32 million to $35 million in revenue. Upcoming Investor Events Ouster management will participate in the following upcoming investor event: Craig-Hallum 22nd Annual Institutional Investor Conference – May 28, 2025 in Minneapolis, MN Conference Call Information Ouster will host a conference call and live webcast for analysts and investors at 5:00 p.m. ET today, May 8, 2025 to discuss its financial results and business outlook. Interested parties may listen to a live webcast of the conference call. Registration for the webcast can be completed by visiting the following website: https://edge.media-server.com/mmc/p/uir6m4kc/. The webcast will be available for replay for at least 30 days after the conference call on Ouster’s investor website at https://investors.ouster.com/. About Ouster Ouster (Nasdaq: OUST) is a global leader in high-performance lidar sensors and intelligent software solutions, powering Physical
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AI across the automotive, industrial, robotics, and smart infrastructure sectors. Ouster’s technology delivers performance, reliability, and affordability to accelerate the adoption of autonomous systems at scale and drive meaningful improvements in safety, efficiency and sustainability. Ouster is headquartered in San Francisco, CA, with offices in the Americas, Europe, and Asia-Pacific. For more information about our products, visit www.ouster.com, contact our sales team, or connect with us on X or LinkedIn. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company 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,” “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 for the second quarter of 2025; 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 updated by the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2025, once filed, 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 press release. 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. In addition, see information below concerning non-GAAP financial measures. 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, Non-GAAP Gross Margin and Adjusted EBITDA 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. Adjusted EBITDA is calculated as net loss excluding interest expense (income), net, other expense (income), net, stock-based compensation expense, provision for income tax expense, certain excess and obsolete expenses and loss on firm purchase commitments, amortization of acquired intangibles, depreciation expense, certain litigation expenses and gain on lease termination. Ouster believes that Non-GAAP Gross Profit, Non-GAAP Gross Margin, and Adjusted EBITDA 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. Adjusted EBITDA is also used by the Board and management as a performance metric for compensation purposes. 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 press release.
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OUSTER, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (in thousands) March 31, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 53,984 $ 45,542 Restricted cash, current 731 722 Short-term investments 114,206 126,480 Accounts receivable, net 17,906 17,941 Inventory 15,105 16,417 Prepaid expenses and other current assets 16,659 12,750 Total current assets 218,591 219,852 Property and equipment, net 9,896 10,164 Operating lease, right-of-use assets 13,503 14,308 Unbilled receivable, non-current portion 6,047 10,133 Intangible assets, net 16,710 17,830 Restricted cash, non-current 1,835 1,835 Other non-current assets 2,005 2,026 Total assets $ 268,587 $ 276,148 Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 10,331 $ 6,288 Accrued and other current liabilities 39,985 30,591 Contract liabilities, current 27,374 34,351 Operating lease liability, current portion 7,272 7,196 Total current liabilities 84,962 78,426 Operating lease liability, non-current portion 11,693 13,054 Contract liabilities, non-current portion 2,999 2,538 Other non-current liabilities 990 1,219 Total liabilities 100,644 95,237 Commitments and contingencies Stockholders’ equity: Common stock 47 47 Additional paid-in capital 1,103,861 1,094,938 Accumulated deficit (935,088) (913,071) Accumulated other comprehensive (loss) income (877) (1,003) Total stockholders’ equity 167,943 180,911 Total liabilities and stockholders’ equity $ 268,587 $ 276,148 OUSTER, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (unaudited) (in thousands, except share and per share data) Three Months Ended March 31, Three Months Ended December 31, 2025 2024 2024 Revenue $ 32,632 $ 25,944 $ 30,092 Cost of revenue 19,149 18,519 16,909 Gross profit 13,483 7,425 13,183 Operating expenses:
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Research and development 14,985 13,806 14,719 Sales and marketing 6,423 6,860 7,045 General and administrative 15,905 12,580 17,017 Total operating expenses 37,313 33,246 38,781 Loss from operations (23,830) (25,821) (25,598) Other income (expense): Interest income 1,705 2,651 1,795 Interest expense — (741) — Other income, net 303 193 386 Total other income, net 2,008 2,103 2,181 Loss before income taxes (21,822) (23,718) (23,417) Provision for income tax expense 195 131 320 Net loss $ (22,017) $ (23,849) $ (23,737) Other comprehensive income (loss) Changes in unrealized gain (loss) on available for sale securities $ 46 $ (459) $ (180) Foreign currency translation adjustments 80 (172) (679) Total comprehensive loss $ (21,891) $ (24,480) $ (24,596) Net loss per common share, basic and diluted $ (0.42) $ (0.55) $ (0.48) Weighted-average shares used to compute basic and diluted net loss per share 52,488,199 43,454,127 49,958,448 OUSTER, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (in thousands) Three Months Ended March 31, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES Net loss $ (22,017) $ (23,849) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 1,795 2,897 Loss on write-off and disposal of property and equipment and right-of-use asset impairment 16 — Gain on lease termination (65) — Stock-based compensation 8,498 9,404 Reduction of revenue related to stock warrant issued to customer 397 195 Amortization of right-of-use asset 1,245 1,150 Accretion or amortization on short-term investments (822) (1,486) Change in fair value of warrant liabilities (112) 21 Inventory write down 261 737 Recovery of doubtful accounts (16) (208) Realized gain on available for sale securities — (275) Changes in operating assets and liabilities: Accounts receivable 4,137 6,089 Inventory 1,051 1,425 Prepaid expenses and other assets (3,883) (1,268) Accounts payable 4,120 2,636 Accrued and other liabilities 8,691 (1,758) Contract liabilities (6,515) 60 Operating lease liability (1,660) (1,492) Net cash used in operating activities (4,879) (5,722) CASH FLOWS FROM INVESTING ACTIVITIES Purchases of property and equipment (552) (1,382) Purchase of short-term investments (13,858) (24,485)
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Proceeds from sales of short-term investments 27,000 25,398 Net cash provided by (used in) investing activities 12,590 (469) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from exercise of stock options 28 109 Payments received (remitted) to fund employees tax obligation for vested RSUs 632 — Proceeds from the issuance of common stock under at-the-market offering, net of commissions and fees — 3,587 At-the-market offering costs for the issuance of common stock — (43) Net cash provided by financing activities 660 3,653 Effect of exchange rates on cash and cash equivalents 80 (170) Net increase (decrease) in cash, cash equivalents and restricted cash 8,451 (2,708) Cash, cash equivalents and restricted cash at beginning of period 48,099 52,633 Cash, cash equivalents and restricted cash at end of period $ 56,550 $ 49,925 OUSTER, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (unaudited) (in thousands) Three Months Ended March 31, Three Months Ended December 31, 2025 2024 2024 GAAP net loss $ (22,017) $ (23,849) $ (23,737) Interest income, net (1,705) (1,910) (1,795) Other income, net (303) (193) (386) Stock-based compensation expense (1) 8,498 9,404 8,841 Provision for income tax expense 195 131 320 Excess and obsolete expenses (recovery) and loss on firm purchase commitments — 572 (1,431) Amortization of acquired intangibles (2) 1,120 1,754 1,342 Depreciation expense(2) 675 1,053 651 Litigation expenses(3) 5,793 1,296 6,494 Gain on lease termination (65) — — Adjusted EBITDA $ (7,810) $ (11,743) $ (9,701) (1)Includes stock-based compensation expense as follows: Three Months Ended March 31, Three Months Ended December 31, 2025 2024 2024 Cost of revenue $ 1,137 $ 913 $ 1,140 Research and development 4,305 4,188 4,181 Sales and marketing 1,106 1,400 1,147 General and administrative 1,950 2,903 2,373 Total stock-based compensation $ 8,498 $ 9,404 $ 8,841 (2)Includes depreciation and amortization expense as follows: Three Months Ended March 31, Three Months Ended December 31, 2025 2024 2024 Cost of revenue $ 924 $ 1,100 $ 915 Research and development 642 712 626
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Sales and marketing 172 248 201 General and administrative 57 747 251 Total depreciation and amortization expense $ 1,795 $ 2,807 $ 1,993 (3)Represents litigation costs consisting primarily of legal fees and the estimated and actual costs to resolve the outstanding litigation cases offset by the estimated amounts recoverable and recovered under insurance, indemnity and contribution agreements for such costs. Three Months Ended March 31, Three Months Ended December 31, 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 and obsolete expenses (recovery) and loss on firm purchase commitments — 572 (1,431) Gross profit on 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% View source version on businesswire.com: https://www.businesswire.com/news/home/20250508615082/en/ For Investors investors@ouster.io For Media press@ouster.io Source: Ouster, Inc.