Ouster, Inc. Q3 FY2024 earnings call

• Recap: Ouster had strong third quarter results with record revenue and gross margin (38% GAAP).
• Market: Lidar adoption expanding, with many customers moving into production, including robotics customers with production-stage deals.
• Strategic priorities:
  • Increase software sales and grow installed base: BlueCity traffic management solution passed NEMA TS2 requirements, Gemini integrated with Genetec Security Center, and Gemini deployed in smart infrastructure for savings.
  • Digital lidar hardware roadmap: First L4-powered OS sensor prototypes turned on, next-gen Chronos chip development on track.
  • Path to profitability: Gross margin expanded from negative 2% in Q1 2023 to 38% in Q3 2024, targeting 30%-50% annual revenue growth and low-cost structure.

Ouster reported $28 million in revenue for the third quarter, the seventh straight quarter meeting or exceeding guidance. The robotics vertical was the largest contributor to revenue, with large shipments from mapping and last mile delivery customers. Smart infrastructure was the second largest contributor, driven by demand for perimeter security. Revenue contribution details: robotics and smart infrastructure were the key segments, with robotics having significant shipments and smart infrastructure benefiting from perimeter security demand.

For the fourth quarter of 2024, management expects to achieve between $29 million and $31 million of revenue.

Q: Kevin Garrigan asks about sensor shipments being down sequentially but revenue hitting guidance, mentioning ASPs and product mix.

A: Angus Pacala responds that favorable product mix due to REV7 adoption helped, and strong software attached sales also contributed.

Q: Kevin Garrigan follows up asking about size of robotics and smart infrastructure contracts compared to a year ago.

A: Angus Pacala says robotics has seen strong growth with recurring orders and expanding customer base, while smart infrastructure is growing with turnkey solutions like BlueCity and Gemini, with more growth expected.