Ouster, Inc. Q4 FY2024 earnings call

Angus Pacala started by recapitulating the quarter, noting consistent execution, record financial results, and delivering value to customers. Mentioned winning a $2 million contract for Blue City, OS sensor volumes growth, software attached bookings growth, and progress in lidar development. Chen Geng then covered financial results, including fourth quarter shipment and revenue figures, gross margin details, and full-year results such as revenue, shipments, and balance sheet strength. Also discussed the tariff environment and capital needs.

In the fourth quarter, Ouster generated $30 million in revenue with gross margins of 44%, marking the eighth straight quarter of meeting or exceeding guidance. Ending the year with $175 million of cash and equivalents with zero debt. Won a $2 million contract to deploy Blue City traffic management solution in Chattanooga. OS sensor volumes increased by over 50% in 2024, software attached bookings grew by over 60%. For 2024, revenue was $111 million, up 33% year-over-year, with GAAP gross margin of 36%. Fourth quarter shipped approximately 4,800 sensors and recognized $30 million in revenue, with fourth quarter gross margin at 44% on both GAAP and non-GAAP basis.

For the first quarter of 2025, Ouster expects to achieve revenue between $30 million and $32 million. In 2025, strategic priorities include scaling software attached business, transforming product portfolio, and executing towards profitability. Maintains long-term framework of 30% to 50% annual revenue growth, gross margin in the range of 35% to 40%, and operating expenses at or below third quarter 2023 levels.

Rapidly evolving tariff environment presents uncertainty, but currently, Ouster's supply chain is largely positioned outside the country impacted by recent tariffs and no material impact is expected at this time.

Q: Andres Sheppard asked about robotaxis and last mile delivery use cases.

A: Angus Pacala responded on robotaxi resurgence and last mile delivery robotics as positive tailwinds.

Q: Timothy Savageaux inquired about China-based suppliers and competitive environment.

A: Angus Pacala talked about supply chain positioning and competitive landscape in smart infrastructure.

Q: Unidentified Participant asked about 3D zoning in smart infra and manufacturing reshoring.

A: Angus Pacala discussed 3D zoning's application and manufacturing onshoring benefit.

Q: Casey Ryan asked about margin profile by vertical.

A: Angus and Chen Geng spoke about margin positivity across verticals and software growth impact.

Q: Madison de Paola asked about backlog.

A: Angus Pacala mentioned backlog supports continued growth.

Q: Andres Sheppard followed up on tariffs and capital needs.

A: Chen Geng commented on tariff environment and capital needs