Ouster, Inc. Q3 FY2025 earnings call

Recap of the Quarter: Revenue of $39.5 million, 11th straight quarter of growth, over 7,200 sensors shipped, gross margin 42%, $247 million cash and no debt.

Strategic Priorities: Progressed across 3 key focus areas - scaling software attached business, transforming product portfolio, executing towards profitability.

Software Attached Business: Gained traction with yard logistics driving demand, won deals for crowd management and perimeter security, partnered with Constellis for security solutions, expanded BlueCity in ITS market with new partnerships.

Product Portfolio: Invested in retraining AI algorithms for better detection, released RTLS in SDK, progressing with testing of next-gen L4 and Cronos custom silicon.

Execution to Profitability: Remain on track to meet long-term financial framework.

In the third quarter, Ouster achieved revenue of $39.5 million, representing the 11th straight quarter of revenue growth and a new quarterly record with over 7,200 sensors shipped. Smart Infrastructure was the largest contributor to revenue, followed by roughly equal contributions from robotics and industrial verticals. GAAP gross margin was 42%, and the company ended the quarter with $247 million of cash and equivalents and no debt.

For the fourth quarter, Ouster expects to achieve revenue between $39.5 million and $42.5 million.

Factors that could cause actual results to differ materially from forward-looking statements are set forth in the third quarter 2025 financial results release and in quarterly and annual reports filed with the SEC.

Q: Can you talk about where you're at in the testing process with the Rev8 and the Cronos offerings?

A: We're incredibly committed to investments in the digital Lidar portfolio, but won't talk ahead of product release beyond stating we're focused on getting products out as soon as possible.

Q: As you work through the design cycle with your customers, can you talk about the cadence of those programs moving forward?

A: We have over 1,000 end customers, with a small minority in full-scale production. Serve Robotics is an example of a customer shifting from pilot to commercial deployment. We support customers in closing gaps for faster market entry.

Q: With the rapid acceleration of self-driving vehicles, do you expect to pursue this vertical more aggressively?

A: Ouster has partners in robotaxi, but tempered expectations on OEM integration due to long time horizons. We're invested in DF and future products for potential OEM integration.

Q: What are the most recent updates related to Blue UAS certification?

A: Ouster is DoD Blue UAS certified, boosting business, but not splitting out sensor volumes. We have a moat as the first mover in this segment.

Q: With many customers moving from prototype to production, what steps are you taking to mitigate supply chain constraints?

A: We've invested in capacity, with 85% year-over-year sensor growth and 31% quarter-over-quarter growth. We'll continue investing in capacity to meet customer demands.

Q: With Amazon talking about adding robots, do you think there's a benefit to you?

A: Humanoid robotics need sensing technology, and we have customers using our Lidars in humanoid platforms, but impact is early and not significant yet.

Q: With 300,000 signalized intersections in U.S., is this the total addressable market for BlueCity?

A: Yes, it's the total addressable market, and we have partnerships covering majority regions. BlueCity is a best-in-class product with significant growth potential.

Q: How are you mitigating supply chain constraints as customers move from prototype to production?

A: We've invested in capacity, with strong growth in sensor shipments, and continue to invest in capacity to meet customer needs.

Q: Are customers able to use other sensors with your software?

A: No, you can't use a different sensor with our software; it's a software attached business, but some distributors sell Gemini on top of Ouster Lidars in certain cases.