Ouster, Inc. Q2 FY2025 earnings call

Recap of Quarter: Ouster had strong second quarter results with over $35 million in revenue, above guidance, and 5,500 sensor shipments. Finished with $229 million in cash and equivalents with no debt. ### Market Overview: Lidar solutions enabling intelligent autonomy across industries. ### Strategic Priorities: - Scaling software-attached business: Won FIFA World Cup deployment, expanded BlueCity partnerships to 39 states, formalized partnership with major security integrator. - Product Development: Improvements in Gemini platform with multisensor AI model, launched Gemini Event Server, progressed on L4 and Chronos custom silicon. - Profitability: On track for 30%-50% annual revenue growth, 35%-40% gross margin, and operating expenses at or below third quarter 2023 levels.

Ouster delivered revenue just over $35 million in the second quarter of 2025, with a record 5,500 sensor shipments. The industrial vertical was the largest contributor to revenue, followed by automotive. Revenue growth was 30% year-over-year and 7% sequentially, with GAAP gross margin at 45% in the second quarter, up 11 points year-over-year.

For the third quarter of 2025, Ouster expects revenue between $35 million and $38 million.

Geopolitical and macroeconomic challenges, specifically around supply chain and tariffs, which could impact operations and margins.

Q: Congratulations on all the progress. As you get into the latter part of the year and start getting ready to ship commercial volumes of the L4 chip, can you talk about that...

A: Yes, the L4 is the fourth generation of silicon with a huge opportunity. We'll provide a smooth transition for existing customers while expanding addressable markets.

Q: Congrats on the quarter. This is Anand on for Andres. It looks like you've really cemented market leadership with this quarter, especially with the Blue UAS certification. And that seems to be a huge part of the story this quarter. So I was wondering perhaps what opportunities you're looking at there and how that could really translate for the company. I know you touched on that on the earnings call. And maybe potentially where could this go besides the first thing that comes to mind, the drones?

A: The Blue UAS milestone for the OS1 is a big deal as we're the first 3D lidar sensor certified for DoD aerial platforms. It's part of a bigger defense focus for the US and Western allies, with work already ongoing with the US Navy and Army.