$41 million in revenue with 27% gross margins in 2022

Secured company record $70 million in bookings in 2022

Shipped new REV7 sensors with double the range to 29 customers in the fourth quarter 2022

Completed merger of equals with Velodyne in February 2023 to strengthen financial position

SAN FRANCISCO — (BUSINESS WIRE) — March 23, 2023 — Ouster, Inc. (NYSE: OUST) (“Ouster” or the “Company”), a leading provider of high-performance lidar sensors for the automotive, industrial, robotics, and smart infrastructure industries, announced financial results for the year end and three months ended December 31, 2022.

Fourth Quarter 2022 Highlights¹

• $11 million in revenue, down 8% year over year.
• 17% gross margins, compared to 30% in fourth quarter 2021.
• Shipped a record of over 2,950 sensors for revenue in the fourth quarter, up 23% year over year.
• Net loss increased to $42 million in the fourth quarter of 2022, compared to $28 million in the fourth quarter of 2021.
• Adjusted EBITDA² loss decreased to $23 million, compared to a loss of $24 million in the fourth quarter of 2021.

Full Year 2022 Financial Highlights¹

• Achieved 2022 guidance with $41 million in revenue and 27% gross margins.
• Booked $70 million in business with new and existing customers in 2022.
• Shipped over 8,650 sensors for revenue in 2022, totaling over 18,500 sensors shipped to date.
• Net loss increased to $139 million in 2022, compared to $94 million in 2021.
• Adjusted EBITDA¹ loss of $93 million in 2022, compared to a loss of $67 million³ in 2021.

Ouster’s fourth quarter revenue was driven primarily by growth in the industrial and robotics verticals, which accounted for 62% of revenues in the quarter. This included substantial orders from customers for port automation, material handling vehicles, and warehouse automation applications.

Lower fourth quarter gross margins were primarily driven by some large unit volume sales to certain customers with lower average selling prices, as well as higher expenses associated with the manufacturing transition to the REV7 sensor platform. However, Ouster expects to deliver higher margins over time as it completes the Velodyne integration and increases shipments of the REV7 sensors.

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¹ Financial highlights only reference Ouster standalone financials results.
² Adjusted EBITDA loss is a non-GAAP financial measure. See Non-GAAP Financial Measures for additional information and a reconciliation to Net loss, the most directly comparable financial measure calculated in accordance with U.S. GAAP.
³ Prior periods have been adjusted to conform to current year presentation.

Ouster achieved its 2022 revised guidance targets, delivering $41 million in revenue and delivered industry-leading 27% gross margins. Across its target markets in 2022, Ouster saw the most traction in the industrial and robotics verticals, with 35% and 34% of sensors shipped in 2022, respectively, due to continued demand for automation across the supply chain. The automotive vertical accounted for 22% of sensors shipped for robotaxis, robotrucking, shuttles and buses in 2022. Finally, 9% of sensors were shipped to customers in the smart infrastructure vertical in 2022. Ouster also doubled its smart infrastructure programs with 213 awarded projects in 2022, up 94% year-over-year, for digital lidar for intelligent transportation systems, crowd analytics, and security applications.

Business Updates

Merger: Ouster completed the merger with Velodyne on February 10, 2023, which will drive cost synergies and value creation for the combined company. The Company remains on track to exceed previously projected annualized cost synergies of $75 million within 9 months. The synergy estimate is baselined against the standalone cost structures of the two companies, as of the third quarter 2022. Following the completion of the merger, Ouster immediately took steps to significantly reduce costs. By the end of the first quarter of 2023, the Company expects to reduce approximately $50 million in annual run-rate costs, which will result in one-time cash costs of approximately $12 million to 14 million⁴, to complete the first stage of integration. As of December 31, 2022, the combined cash, cash equivalent and short-term investments balance was approximately $315 million.

Execution on Product Roadmap: Ouster continued to execute on its product roadmap, dominated by the October 2022 launch of its new REV7 OS digital lidar sensors powered by its next-generation L3 chip, which are designed to deliver dramatic performance gains for customers. This included shipments to 29 customers who purchased the first units of the new REV7 sensors. During the second half of 2022, the Company also provided early access to Ouster Gemini, its cloud-backed digital lidar perception platform for smart infrastructure applications, closing deals with more than 10 companies before broadly releasing the software in January 2023. Following the merger, Ouster also now offers certain Velodyne Lidar sensors as well as BlueCity software, a turnkey lidar-based solution for intelligent transportation systems with over 100 active deployments in 2022.

“Ouster made huge strides throughout 2022, from the release of our first A-samples for the solid-state DF series to the launch of our REV7 OS sensors, making us more competitive across the board. We also built our first subscription software, Ouster Gemini, for smart infrastructure applications, which will expand the opportunities for digital lidar,” said Ouster CEO Angus Pacala. “Further, we recently completed our merger with Velodyne, bolstering our financial position and amplifying our product portfolio with new hardware and software solutions, which we anticipate will further expand our serviceable market and catalyze growth across the business in 2023.”

First Quarter 2023 Outlook

For the first quarter 2023, Ouster expects to achieve $15 million to 17 million in revenue.⁵

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⁴ Excluding stock-based compensation expenses.
⁵ Excludes revenues from Velodyne products prior to the merger on February 10, 2023.

Conference Call Information

Ouster will host a conference call and live webcast for analysts and investors at 5:00 p.m. EDT today, March 23, 2023 to discuss its financial results and business outlook. To access the call, please register at https://conferencingportals.com/event/ERDXYEAl.

Upon registering, each participant will be provided with call details and a registrant ID. The webcast and related presentation materials will be accessible for at least 30 days on Ouster’s investor relations website at https://investors.ouster.com. A telephonic replay of the conference call will be available through April 6, 2023. To access the replay, please dial (800) 770-2030 from the U.S. or (647) 362-9199 from outside the U.S. and enter the conference ID number: 93428.

About Ouster

Ouster (NYSE: OUST) is a leading global provider of high-resolution scanning and solid-state digital lidar sensors, Velodyne Lidar sensors, and software solutions for the automotive, industrial, robotics, and smart infrastructure industries. Ouster is on a mission to build a safer and more sustainable future by offering affordable, high-performance sensors that drive mass adoption across a wide variety of applications. With a global team and high-volume manufacturing, Ouster supports over 850 customers in approximately 50 countries. Ouster is headquartered in San Francisco, CA with offices in the Americas, Europe, Asia-Pacific, and the Middle East. For more information, visit www.ouster.com , or connect with us on Twitter or LinkedIn .