Ouster, Inc. Q4 FY2024 earnings call

Software Solutions - Software attached bookings grew over 60% in 2024, with Gemini and Blue City solutions. - Blue City passed NEMA TS2, integrated with Genetec Security Center, and expanded distribution across nearly 20 states. - A leading global technology company renewed a $1 million+ annual Ouster Gemini license. ### Lidar Development - Made advancements in firmware with Firmware 3.1 (zero minimum range, improved accuracy) and Firmware 3.2 (new features). - Upgraded REV7 for reliability and thermal performance. - L4 sensor prototypes in validation, Chronos chip in bring-up. - Enhanced SDK with real-time localization, multi-sensor support, and faster data visualization; Ouster Studio Web offers 250GB free lidar data storage. ### Financial Results - 2024 revenue $111M, up 33% Y/Y, aligning with 30%-50% growth target. - Full year margin 36% within 35%-40% target. - Ended 2024 with $175M cash and equivalents, zero debt.

In the fourth quarter, Ouster generated $30 million in revenue with gross margins of 44%. For the full year 2024, revenue reached $111 million, up 33% year-over-year. Automotive and robotics were the largest contributors to fourth quarter revenues, followed closely by industrial. Software attached bookings grew by over 60% in 2024, exceeding double-digit percentages of total bookings each quarter. The software solutions, including Ouster Gemini and Blue City, contribute to the revenue mix, with Blue City having expanded its distribution and passed NEMA TS2 requirements.

First Quarter 2025 - Expect revenue between $30 million and $32 million. ### 2025 Priorities - Scale software attached business, focusing on the $19B smart infrastructure market; expand Gemini and Blue City use cases. - Transform product portfolio with new hardware, firmware capabilities, SDK features, and software functionality. - Continue towards profitability with 30%-50% revenue growth, 35%-40% gross margin, and operating expenses at or below Q3 2023 levels.

• Rapidly evolving tariff environment with uncertainty, but current supply chain not materially impacted.

Q: Elaboration on robotaxi and last mile delivery markets.

A: Robotaxi resurgence with Waymo, May Mobility, etc., providing momentum; last mile delivery tied to physical AI trends, with Ouster powering robotics in this space.

Q: China-based suppliers and TAM expansion.

A: Supply chain strategically positioned in Thailand and US; TAM split evenly among auto, industrial, smart infrastructure, robotics; TAM doubling with new products in development.

Q: 3D zoning in smart infra and margin profile.

A: 3D Zone Monitoring in industrial, with software attached business expected to be accretive to overall margin.

Q: Backlog and tariffs.

A: Backlog supports growth; tariffs environment evolving, no material impact seen currently; low capital needs for next-gen sensor development.