Ouster, Inc. · NASDAQ:OUST
Ouster — Q4 2020 Earnings Presentation
41 slides from Ouster's earnings presentation, Feb 26, 2021
Slide 1: Fourth Quarter 2020 Investor Presentation
FOU RTH QU ARTER 2020 INVESTOR PRESENTATION February 25, 2021 YOUR SAFETY DRIVES US VELODYNELIDAR.COM | 1
Slide 2: Safe Harbor
SAFE HARBOR This presentation contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our financial outlook and market positioning, business strategy and plans
Slide 3: Investment Highlights
INVESTMENT HIGHLIGHTS • First mover with highest market share1 • 300+ customers across auto and non-auto markets Market • ~51,800 units shipped to date2 Leader • $670M+ cumulative revenue3 • First publicly traded pure-play lidar company on NASDAQ under the symbol VLDR and VLDRW 5 • Our auto and truc
Slide 4: Business Updates
B U S I N E S S U P D AT E S • Total sensors shipped in 2020 exceeded 11,700 with 4,237 units shipped in the 4 th quarter • Momentum in solid state sensors shipped increased to more than 700 in 4 th quarter • As of 2/19/21, the total number of multi-year agreements and projects in pipeline increased
Slide 5: Strong & Experienced Leadership Team
STRONG & EXPERIENCED LEADERSHIP TEAM Anand Matt Gopalan Rekow Chief Chief Executive Technology Officer Officer Drew Rick Hamer Tewell Chief Chief Financial Operations Officer Officer Mike Sally Jellen Frykman Chief Chief Commercial Marketing Officer Officer Kathy Michael McBeath Vella Chief General
Slide 6: Broad Portfolio Addresses Safety Needs for Diverse Applications
BROAD PORTFOLIO ADRESSES SAFETY N E E D S F O R D I V E R S E A P P L I C AT I O N S DELIVERY | MOVING GOODS AUTOMOTIVE | MOVING PEOPLE SMART CITY & SECURITY Includes touchless delivery, Includes intelligent intersections, advanced Includes ADAS, levels 1-5 AV, B2B transport, railways, and people mo
Slide 7: We Are the First Mover and Trusted Market Leader
WE ARE THE FIRST MOVER AND TRUSTED MARKET LEADER 2005 2007 TODAY HIGHLIGHTS Invented Real- Began World’s Leading Lidar Time 3D Lidar First Commercial Technology • Market leader for 13 years Production of • Broad product portfolio Real-Time 3D Lidar • Cumulative sales of over $670 million1 • 300+ cus
Slide 8: Velodyne Is the Leading Lidar Provider
VELODYNE IS THE LEADING LIDAR PROVIDER 1 ~$95M 26 300+ 2 55+ 3 51,800+ 3 2020 Signed / Awarded Customers Granted / Pending Revenue Multi-Year Agreements Patents Units Shipped David Hall invented smart Strategic investment Opened advanced Strategic investment Production partnership Manufacturing Acqu
Slide 9: Velodyne Lidar Product Roadmap
VELODYNE LIDAR PRODUCT ROADMAP Tireless Innovation to Bring New Technologies and Products Announced Future Products VelarrayTM H800 Broad Product Portfolio VLP-16 VLP-32 VLS-64 VLS-128 VelabitTM VelaDomeTM VellaTM HDL-64E HDL-32E PuckTM Ultra PuckTM Alpha-64TM Alpha VelarrayTM M1600 Series Series Pr
Slide 10: Vella System on a Chip (SoC)
VELLA SYSTEM ON A CHIP (SoC) Vella is Our Core Perception Technology That Enables Many Use Cases VELODYNELIDAR.COM | 10
Slide 11: Past Investments Drive Gross Margin Expansion at Scale
PA S T I N V E S T M E N T S D R I V E G R O S S M A R G I N E X PA N S I O N AT S C A L E TECHNOLOGY MINIATURIZATION PROPRIETARY MANUFACTURING IP Micro-lidar arrays and custom ASICs enable mass Fully automated wafer-scale lidar production at lower unit cost manufacturing processes MANUFACTURING PAR
Slide 12: Highly Diversified Projects Across Industries
H I G H LY D I V E R S I F I E D P R O J E C T S ACROSS INDUSTRIES 194 Projects Could Potentially Yield a Total of ~9M Units Shipped by 2025 Smart City Robotics & Industrial Mapping NUMBER OF PROJECTS Advanced Driver Assistance Systems (ADAS) 61 Autonomous Vehicles (AV) 32 Delivery Delivery 18 Mappi
Slide 13: Barriers to Entry: Robust Durability of Installed Customer Base
B A R R I E R S T O E N T RY: R O B U S T D U R A B I L I T Y O F I N S TA L L E D C U S T O M E R B A S E Why We Have a Sticky Our Commitment in Platform Development Drives Customer Loyalty Customer Base A. Technology differentiation B. Lengthy and rigorous validation process C. Long-term contracte
Slide 14: Demand Curve Reflects a Growing Market Opportunity
D E M A N D C U RV E R E F L E C T S A G R O W I N G MARKET OPPORTUNITY Velodyne is currently in the process of negotiating RFIs, RFQs, and long-term contracts with many customers. The below pipeline only reflects identified projects as of February 19, 2021. SIGNED & AWARDED PROGRESSION Chart repres
Slide 15: Velodyne's Competitive Moats
V E L O D Y N E ’ S C O M P E T I T I V E M O AT S 1 High switching cost as customers spend years and Entrenched Customer 1 millions of dollars developing and validating solutions around Velodyne’s technology, including Relationships system design and software development 5 2 2 Automated manufacturi
Slide 16: How Our Agreements Typically Work
H O W O U R A G R E E M E N T S T Y P I C A L LY W O R K PRE-RFI RFI RFQ CONTRACT Software Development System and Validation Discovery Initial Testing Production (Recurring) Specification Hardware System Validation 1-6 months 3-6 months Up to 12 months Up to 12 months Contract Purchase Order Awarded
Slide 17: Summary of Market Position
S U M M A RY O F M A R K E T P O S I T I O N Our Low-Cost Production Drives ASP Reduction and TAM Expansion Across Industries and Product Portfolio 1 SCALE Scale 2 COMMERCIALIZATION 3 PIPELINE / MODEL BUILD 4 PORTFOLIO Unmatched Breadth of ~51.8K Units 26 • Bottom-up approach Portfolio for All Appli
Slide 18: Representative Customers
R E P R E S E N TAT I V E C U S TO M E R S Automotive OEMs and AUTOMOTIVE Non-Automotive Auto System Integrator | MOVING PEOPLE Last Mile Delivery Tier 1 Suppliers Markets VELODYNELIDAR.COM | 18
Slide 19: Financial Summary
FINANCIAL SUMMARY VELODYNELIDAR.COM | 19
Slide 20: Financial Highlights: Fourth Quarter 2020
FINANCIAL HIGHLIGHTS: FOURTH QUARTER 2020 Q4 2020 FINANCIAL SNAPSHOT Shipped 51.8K sensors from inception Revenue (5.9%) 4,237 +1 Enabling new applications Profile Revenue Sensors Contracts Growth1 Shipped 25 active multi-year agreements at end of 2020 vs. 3 at the end of 2019 Expanding Profitabilit
Slide 21: Financial Highlights: FY 2020 Snapshot
FINANCIAL HIGHLIGHTS: FOURTH QUARTER 2020 FY 2020 FINANCIAL SNAPSHOT Shipped 51.8K sensors from inception Revenue (6.0%) 11,710 +22 Enabling new applications Profile Revenue Sensors Contracts Growth1 Shipped 25 active multi-year agreements at end of 2020 vs. 3 at the end of 2019 Expanding Profitabil
Slide 22: Strong Contract and Revenue Momentum
STRONG CONTRACT AND REVENUE MOMENTUM REVENUE PROJECTS IN OUR PIPELINE ($ in millions) 183 Projects Product Revenue License and Services 20 $0.8 131 Projects 18 ~9M 16 $3.4 Units 14 12 10 ~7M $18.1 Units 8 $14.4 6 4 2 0 4Q'19 4Q'20 FY19 Q4'20 VELODYNELIDAR.COM | 22
Slide 23: Strong Contract and Revenue Momentum
STRONG CONTRACT AND REVENUE MOMENTUM REVENUE PROJECTS IN OUR PIPELINE ($ in millions) 183 Projects Product Revenue License and Services 120 131 Projects ~9M 100 Units $20.0 80 $27.0 60 ~7M Units 40 $81.4 $68.4 20 0 FY 2019 FY 2020 FY 2019 Q4'20 VELODYNELIDAR.COM | 23
Slide 24: Gross Profit and Operating Income
G R O S S P R O F I T A N D O P E R AT I N G I N C O M E NON-GAAP GROSS PROFIT1 N O N - G A A P O P E R AT I N G L O S S 1 ($ in millions) ($ in millions) 2.5 0 -5 2 $2.1 -10 1.5 -15 1 ($20.1) -20 0.5 -25 ($27.2) $0.2 0 -30 Q4’19 Q4’20 Q4’19 Q4’20 % of Total % of Total NM NM 1.2% 11.6% Revenue Reven
Slide 25: Gross Profit and Operating Income
G R O S S P R O F I T A N D O P E R AT I N G I N C O M E NON-GAAP GROSS PROFIT1 N O N - G A A P O P E R AT I N G L O S S 1 ($ in millions) ($ in millions) -60 33 32.5 -61 32 $32.5 -62 ($62.4) 31.5 31 -63 30.5 -64 30 29.5 -65 $29.8 ($66.2) 29 -66 28.5 28 -67 FY’19 FY’20 Q4’19 Q4’20 % of Total % of To
Slide 26: Leveraging Efficient Cost Structure
LEVERAGING EFFICIENT COST STRUCTURE NON-GAAP RESEARCH NON-GAAP SALES NON-GAAP GENERAL & DEVELOPMENT & MARKETING & A D M I N I S T R AT I V E ($ in millions) ($ in millions) ($ in millions) $14.5 $5.9 $7.0 $11.3 $4.2 $6.6 Q4'19 Q4'20 Q4'19 Q4'20 Q4'19 Q4'20 % of Total Revenue % of Total Revenue % of
Slide 27: Leveraging Efficient Cost Structure
LEVERAGING EFFICIENT COST STRUCTURE NON-GAAP RESEARCH NON-GAAP SALES NON-GAAP GENERAL & DEVELOPMENT & MARKETING & A D M I N I S T R AT I V E ($ in millions) ($ in millions) ($ in millions) $56.6 $21.9 $27.3 $17.0 $17.6 $50.7 F Y2 0 1 9 F Y2 0 2 0 F Y2 0 1 9 F Y2 0 2 0 F Y2 0 1 9 F Y2 0 2 0 % of Tota
Slide 28: Target Business Model
TA R G E T B U S I N E S S M O D E L Product (Sensor) Gross Margin Mid-to-High 40%s Gross Margin Mid-to-High 50%s R&D as Percentage of Revenue 20% Sales as Percentage of Revenue 10% G&A as a Percentage of Revenue 7% EBITDA Margin 20+% Free Cash Flow 15% VELODYNELIDAR.COM | 28
Slide 29: Thank You
THANK YOU VELODYNELIDAR.COM | 29
Slide 30: Appendix
APPENDIX VELODYNELIDAR.COM | 30
Slide 31: GAAP to Non-GAAP Gross Profit Reconciliation
G A A P TO N O N - G A A P G R O S S P R O F I T R E C O N C I L I AT I O N NON-GAAP GROSS PROFIT ($ in millions) Q4 2019 Q4 2020 FY 2019 FY 2020 GAAP Gross Profit $0.2 ($5.3) $29.8 $25.1 Stock-Based Compensation – $7.4 – $7.4 Non-GAAP Gross Profit $0.2 $2.1 $29.8 $32.5 Margin % 1.2% 11.6% 29.4% 34.
Slide 32: GAAP to Non-GAAP Operating Loss Reconciliation
G A A P TO N O N - G A A P O P E R AT I N G L O S S R E C O N C I L I AT I O N NON-GAAP OPERATING LOSS ($ in millions) Q4 2019 Q4 2020 FY2019 FY2020 GAAP Operating Loss ($29.8) ($111.5) ($69.0) ($153.9) Stock-Based Compensation – $91.3 $0.1 $91.4 Gain on Sale of Assets Held-for-Sale – – – ($7.5) Wri
Slide 33: GAAP to Non-GAAP R&D Expense Reconciliation
G A A P TO N O N - G A A P O P E R AT I N G E X P E N S E R E C O N C I L I AT I O N RESEARCH & DEVELOPMENT ($ in millions) Q4 2019 Q4 2020 FY2019 FY2020 GAAP R&D Operating Expense $14.6 $48.4 $56.9 $88.1 Stock-Based Compensation – ($37.0) ($0.1) ($37.0) Amortization of Acquisition-Related ($0.1) ($
Slide 34: GAAP to Non-GAAP Sales & Marketing Reconciliation
G A A P TO N O N - G A A P O P E R AT I N G E X P E N S E R E C O N C I L I AT I O N SALES & MARKETING ($ in millions) Q4 2019 Q4 2020 FY2019 FY2020 GAAP Sales and Marketing Operating $5.9 $19.0 $21.9 $31.8 Expense Stock-Based Compensation – ($14.8) – ($14.8) Non-GAAP Sales and Marketing $5.9 $4.2 $
Slide 35: GAAP to Non-GAAP G&A Reconciliation
G A A P TO N O N - G A A P O P E R AT I N G E X P E N S E R E C O N C I L I AT I O N GENERAL & ADMINISTRATIVE ($ in millions) Q4 2019 Q4 2020 FY2019 FY2020 GAAP G&A Operating Expense $9.4 $38.8 $20.1 $65.7 Stock-Based Compensation – ($32.1) – ($32.3) Write-Off of IPO Costs – – – ($3.5) Legal Settlem
Slide 36: Traditional Vision Solutions Alone Have Severe Limitations
TRADITIONAL VISION SOLUTIONS ALONE HAVE SEVERE LIMITATIONS Camera Shortcomings Lack of precision at range Poor object detection and recognition at range, dangerous optical illusions Localization: lack of mapping High-Resolution Radar Field of view: multiple sensors required Poor performance at night
Slide 37: Velodyne Offers Multiple Lidar Architectures
VELODYNE OFFERS MULTIPLE LIDAR ARCHITECTURES Each Of Our Products Is Built With Solid State Lidar SURROUND DIRECTIONAL HEMISPHERICAL Sees 360-degrees around the Long-range directional vision Ultrawide field-of-view for near- vehicle simultaneously Subtle vehicle integration range perception Best-in-
Slide 38: Key Technologies for Smart Vision
KEY TECHNOLOGIES FOR SMART VISION EMBEDDED SOFTWARE & ALGORITHMS ADVANCED MANUFACTURING • Converts Unstructured Data to • Design for Manufacturing Structured Data • Precision Alignment • Maintains High Accuracy Across Techniques Operating Conditions • Calibration • Enables Advanced Levels of (1) Met
Slide 39: Velodyne Is the At-Scale Market Leader
VELODYNE IS THE AT-SCALE MARKET LEADER We Have the Broadest Product Portfolio with Superior Software-Driven Performance (1) Performance (Range x Resolution x Field of View) Velarray Velarray Velabit Puck Ultra Puck Alpha 64 Alpha Prime H1600 M1600 Pandar40M Pandar40P Pandar64 OS0 OS1 OS2 InnovizPro
Slide 40: Why Majority of Velodyne Products Are 905nm
WHY MAJORITY OF VELODYNE PRODUCTS ARE 905NM 905nm (pulsed) 1550nm (pulsed) Absorption in Low At least 2-4 times worse in rain Atmosphere Standard silicon detectors Expensive InGaAs Detectors Detector Technology Very high sensitivity Low sensitivity Fiber laser needed to achieve high laser power to L
Slide 41: Sales Footprint
SALES FOOTPRINT Direct Sales / Service Reselling Partner / Integrator VELODYNELIDAR.COM | 41