Ouster, Inc. Q3 FY2024 earnings call

• Recap: Ouster had strong third quarter results with record revenue and gross margin, seventh straight quarter of meeting/exceeding guidance.
• Market Overview: Lidar adoption expanding, many large production-stage deals with robotics customers, BlueCity solution for traffic safety.
• Strategic Priorities: Increase software sales and grow installed base, digital lidar hardware roadmap progress with L4-powered OS sensor prototypes and next-gen Chronos chip, path to profitability with gross margin expansion from negative 2% to 38% since Q1 2023.
• Financial Results: Record revenue of $28 million, GAAP gross margin 38%, non-GAAP gross margin 45%, GAAP operating expenses $38 million with sequential increase due to litigation expenses.

Ouster reported $28 million in revenue for the third quarter. 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. In absolute terms, revenue was $28 million, with robotics leading in contribution and smart infrastructure second.

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

• Actual results may differ materially from forward-looking statements due to risks and uncertainties associated with the business, as mentioned in SEC filings and press release.

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

A: Angus Pacala responds that favorable product mix due to REV7 adoption helped, and software attached sales were record high, with REV7 adoption boosting ASPs and software adding to margin and revenue dynamics.

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

A: Angus Pacala states robotics is seeing strong growth with recurring orders and expanding customer base, and smart infrastructure is growing with turnkey solutions like Gemini and BlueCity, with more growth expected in these markets