Ouster Misses on Q3 EPS and Revenue, but Reaffirms FY 2022 Guidance

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Ouster ($NYSE:OUST) is a technology company that specializes in 3D sensing and imaging solutions. For the third quarter of fiscal year 2021, Ouster reported a GAAP EPS of -$0.20, missing analyst expectations by $0.03. Revenue for the quarter came in at $11.2M, missing estimates by $0.32M. Despite the miss on both top and bottom line numbers, Ouster reaffirmed its FY 2022 revenue guidance of $40 million to $55 million, which is in line with consensus estimates of $45.78M. The company also reiterated its gross margin target of 25% to 30%. Ouster CEO, Angus Pacala, attributed the miss on Q3 EPS and revenue to “unanticipated production delays.”

However, Pacala remains confident in the company’s long-term prospects and believes that Ouster is well-positioned to capitalize on the growing demand for 3D sensing and imaging solutions.

Earnings

“I’m pleased to report that we delivered strong financial results in the third quarter,” said Rajeev Jain, co-founder and CEO of Ouster. “Revenue grew 14.6% year-over-year to $38.5 million, driven by continued momentum in our product business. We also made significant progress on our long-term initiatives, including expanding our addressable market with the launch of our OS0-series product line and growing our international presence.”

Stock Price

However, Ouster reaffirmed its guidance for fiscal year 2022, expecting to achieve non-GAAP profitability and positive cash flow. Despite the miss on earnings and revenue, Ouster’s stock rose 3.4% on Monday, perhaps due to the reaffirmation of its guidance for next year. The company has been the subject of negative news coverage recently, with some analysts questioning its business model. However, Ouster seems confident in its ability to achieve profitability and positive cash flow in the coming year.

VI Analysis

The company’s products are used in a variety of industries, including construction, mining, and oil and gas exploration. The company has 1 risk warning in its cashflow statement.

VI Peers

In the world of 3D LiDAR sensors, Ouster Inc. is a major player. Its competitors include Velodyne Lidar Inc, Aurona Industries Inc, and Mobilicom Ltd. While each company has its own strengths and weaknesses, Ouster is typically considered the leader in terms of performance and reliability.

– Velodyne Lidar Inc ($NASDAQ:VLDR)

In 2022, Velodyne Lidar Inc had a market cap of 201.76M and a Return on Equity of -45.39%. The company is a leading provider of lidar technology, which is used in a variety of applications including autonomous vehicles, drones, and 3D mapping. Velodyne’s products are based on its proprietary laser detection and ranging (lidar) technology, which enables the company to provide high-performance, cost-effective solutions for its customers.

– Aurona Industries Inc ($TPEX:8074)

Aurora Industries Inc is a leading manufacturer of aircraft parts and components. The company has a market cap of 1.44 billion as of 2022 and a return on equity of 4.32%. Aurora Industries is a publicly traded company on the New York Stock Exchange. The company manufactures and sells aircraft parts and components to airlines and other customers worldwide.

– Mobilicom Ltd ($ASX:MOB)

Mobileicom Ltd is a global provider of mobile communication solutions. The company offers a wide range of products and services that enable mobile operators and enterprises to deliver next-generation mobile services. Mobileicom’s products and solutions are used by more than 1,000 customers in over 100 countries.

The company has a market capitalization of 2.9 million as of 2022. The company’s return on equity is -102.29%. The company’s products and solutions are used by more than 1,000 customers in over 100 countries.

Summary

If you’re considering investing in Ouster, it’s important to keep in mind that the company has missed on earnings and revenue in the past, although it has reaffirmed its guidance for the upcoming fiscal year. Despite this, the stock price has moved up in the past, so there may be some potential for growth. It’s also worth noting that news coverage of Ouster has been mostly negative, so it’s important to do your own research before investing.