Ouster, Inc. Q3 FY2025 earnings call

• Third quarter results show continued growth with revenue of $39.5 million, 41% year-over-year growth, and over 7,200 sensors shipped.
• In Smart Infrastructure, expanded deployments of Ouster Gemini and REV7 at logistics yards, tested new Gemini AI algorithms, and won new deals for Ouster BlueCity at intersections.
• In Industrial vertical, shipped REV7 sensors to a leading global tech company and a large European industrial equipment manufacturer; delivered sensors for Serve Robotics' last-mile delivery fleet.
• 2025 strategic priorities: scaling software attached business (gained traction with yard logistics and crowd management deals, partnership with Constellis), transforming product portfolio (invested in AI algorithm retraining, released RTLS in SDK, tested next-gen silicon), and executing towards profitability.
• Product portfolio investments: retrained AI algorithms for better detection accuracy, released RTLS in SDK, and continued testing next-gen L4 and Cronos custom silicon.

Revenue for the third quarter was $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 third quarter revenue, followed by roughly equal contributions from robotics and industrial verticals.

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

Actual results may differ materially from forward-looking statements due to factors set forth in the third quarter 2025 financial results release and SEC filings. Forward-looking statements are based on assumptions as of today and Ouster assumes no obligation to update them.

Q: Thoughts on defense vertical and retrofit opportunities?

A: Defense market is diverse; focused on non-retrofit opportunities, retrofit timeline unclear but Blue UAS surveying is current use case.

Q: Potential impact of DJI being blocked for U.S. shipments?

A: Could have positive impact on awareness of domestic technology sourcing, benefiting Ouster.

Q: About software business and using other sensors with it?

A: Cannot use different sensors with Ouster's software; it's a software attached business combining sensors and software, though some cases of partial use exist.

Q: On software model training and LLM?

A: Using cutting-edge deep learning models trained on field data, not traditional LLMs but cutting-edge deep learning models for Lidar perception.