Ouster, a developer of LiDAR sensors, announced its Q1 2023 results today. The company has shipped over 3,000 sensors in Q1 2023 (up 94% YoY from Q1 2022) across all its verticles, including automotive. Its next-gen “OS” series product is set to go into production later this year and is on track to deliver early B samples of “DF” series sensors to automotive customers in H2 2023. 

The company is also progressing toward its outsourced manufacturing strategy by transitioning some of its LiDAR production to its partner Fabrinet in Thailand to scale production and reduce costs.

Ouster completed its merger with incumbent LiDAR maker Velodyne in February 2023 and revealed that it is on track to realize USD 80 million–85 million in annual cost savings by the end of the year, resulting from the merger (up from its previous target of USD 75 million mentioned at the time of the acquisition). The company has already achieved about USD 50 million of this annual cost savings by the end of Q1 2023.

Today, the company also announced a partnership with self-driving tech company Motional, becoming its exclusive LiDAR supplier through 2026.

Ouster recorded a loss per share of USD 6.03 and revenue of USD 17.2 million in Q1 2023; marginally exceeding the higher end of the revenue guidance provided in Q4 2022 (financials are not comparable with Q1 2022 due to the merger). 

The company reported a non-GAAP gross margin of 24.8% in Q1 2023, driven by strong demand for its “REV7” sensors and QoQ rebound in average selling prices for Ouster’s OS sensors. Its non-GAAP operating loss stood at USD 26.9 million in Q1 2023 (financials are not comparable with Q1 2022 due to the merger).

Ouster expects to generate revenue of USD 18 million–20 million in Q2 2023, the first full quarter post-merger.