Ouster: Built To Survive And Thrive

seekingalpha03-27

Ouster reported strong 2023 Lidar bookings of $142 million.The company's Q1'24 revenue guidance exceeds consensus estimates, indicating solid growth in the Lidar sensor market.OUST stock only has a ...

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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nOuster: Built To Survive And Thrive\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-03-27 20:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4680693-ouster-built-to-survive-and-thrive><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Ouster reported strong 2023 Lidar bookings of $142 million.The company's Q1'24 revenue guidance exceeds consensus estimates, indicating solid growth in the Lidar sensor market.OUST stock only has a ...</p>\n\n<a href=\"https://seekingalpha.com/article/4680693-ouster-built-to-survive-and-thrive\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4157","symbol_name":"电子设备和仪器","start_time":0,"source_url":"https://seekingalpha.com/article/4680693-ouster-built-to-survive-and-thrive","article_id":"2422931199","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1454454142/image_1454454142.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2422931199","pubTimestamp":1711540800,"sourceInfo":{"source_id":"seekingalpha","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"Ouster reported strong 2023 Lidar bookings of $142 million.The company's Q1'24 revenue guidance exceeds consensus estimates, indicating solid growth in the Lidar sensor market.OUST stock only has a ma","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4157":"电子设备和仪器","OUST":"Ouster Inc.","THAC":"Thrive Acquisition Corp"},"translate_title":"驱逐：为了生存和繁荣而建造","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"OUST":1,"THAC":1},"content_text":"Ouster reported strong 2023 Lidar bookings of $142 million.The company's Q1'24 revenue guidance exceeds consensus estimates, indicating solid growth in the Lidar sensor market.OUST stock only has a market cap of $200 million, barely above the bookings level for last year.David Becker Ouster (NYSE:OUST) continues to report improving results in the Lidar sensor sector, while the market generally ignores any of the better metrics in the business. The company reported strong bookings in 2023, not reflected by the weak stock price. My investment thesis remains ultra Bullish on the leading revenue generator in the domestic Lidar sensor space. FinViz Big Bookings Year After the close, Ouster reported Q4'23 results with revenue generally in line with consensus estimates as follows: Seeking Alpha Considering Q1'24 only has 3 business days remaining, a lot of the investor focus for the quarterly report was guidance for the 1H'24. The company didn't disappoint with revenues targeted at reaching $25 to $26 million versus consensus estimates of $25 million. The Lidar sensor sector has traditionally been a seasonal market, which should somewhat change with a ramp up in sales over the next decade. Before the merger with Velodyne Lidar included in the Q1'23 numbers, Ouster reported a nearly 30% sequentially revenue decline in Q1'22 Unlike the Lidar companies focused on the automotive sector, Ouster guided to a sequential increase in revenues with guidance for a $1 million boost to a new record level. Remember, the quarter is almost over already, so the focus is really already turning towards Q2 knowing this Q1 guidance should already be in the bag. The other key Q4'23 metric was that Ouster reported a bookings total of $28 million. The company has now reported $142 million in bookings for 2023 as follows:  Q4'23 - $28 million Q3'23 - $38 million Q2'23 - $43 million Q1'23 - $33 million 2022 - $70 million  Ouster reported a book-to-bill ratio of 1.7x. Normally, a market would find this metric impressive, leading to a stock trading far above an all-time low. Management sees the new Ouster Gemini and Blue City platforms helping re-accelerate growth later this year, providing a full solution to customers versus the prior hardware sensor focus. Ouster Q4'23 presentation On the Q4'23 earnings call, CEO Angus Pacala provided this snippet on why Ouster would see growth remain in the 30% to 50% targeted range as follows\" But focusing on the first two, we've seen incredible kind of uptake and rapid uptake in the Gemini platform and the Blue City platform. And I have a really kind of positive outlook on how we're going to be able to expand that line of business more quickly with customers than our traditional lidar hardware business alone. And that's really because we're providing the full solution for the first time in the smart -- with these software solutions. Cash Burn Survival Rate Another major benefit of Ouster is that the company has virtually eliminated the liquidity risk present in most of the Lidar companies that went public via SPACs a few years back. The company has reduced the operating expense base to only mid-$20 million quarterly range, while the 35% gross margins on $25 million in quarterly revenue produces nearly $9 million in gross profit to offset expenses. The company reported cash burn in the $19 million range during Q4, while the adjusted EBITDA loss was cut to $14 million, down from $18 million in the prior quarter. Ouster did raise $11 million from the ATM during Q4 to maintain cash levels, and the cash balance should now allow the company survive for 3+ years without raising additional cash. Ouster even faces the scenario where adjusted EBITDA excludes over $1 million in interest income, not intended to be excluded via an adjusted profit metric. The company would actually report an adjusted profit (loss) generally in the same level of adjusted EBITDA due to normal profit metrics of interest income and depreciation charges offsetting each other. The company ended 2023 with a $192 million cash balance while only losing $14 million in adjusted EBITDA. With the guidance for slight revenue growth in Q1'24 and 30%+ revenue growth ahead, Ouster is headed in the right direction to eliminate these losses. The company needs additional revenues to eliminate the losses, with even a 40% gross margin needing north of $50 million to cover the expense base. Ultimately though, Ouster is building a business set to survive until the Lidar business really thrives, with a $50 million quarterly revenue total a drop in the bucket for the large TAM. The stock is far too cheap with a market cap of only $200 million after the company reported $142 million in take or pay bookings during 2023. A normal technology stock with 70% growth rates would trade at 5x to 10x forward sales targets, or bookings totals. Takeaway  The key investor takeaway is that Ouster isn't correctly priced for the recent results and the opportunity ahead. The company is now built to survive, and the bookings totals suggest Ouster will ultimately thrive.","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":1,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2422931199"}