- Completed business combination with Graf Industrial Corp. on
September 29, 2020, and started trading on Nasdaq
- Grew revenue 137% year-over-year to $32.1 million
- Signed six (6) multi-year agreements during the quarter and now
count 24 total contracts
- Initiated commercial shipments of Velarrays – our
next-generation, compact lidar product with best-in-class range and
resolution
- Finished the quarter with $298 million of cash
- Continued to build upon #1 position in lidar as evidenced by
our shipment of 47,500 sensors to date for cumulative revenue of
over $650 million
Velodyne Lidar (NASDAQ: VLDR, VLDRW), the global leader in lidar
technology, today announced financial results for its third quarter
ended September 30, 2020.
Dr. Anand Gopalan commented, “We are pleased to present our
third quarter results for the first time as a public company. We
are also excited about the continued strength we see in the overall
lidar markets. Despite the continued impacts of COVID-19, we see
growing interest in lidar applications across multiple industries,
as evidenced by our accelerating commercial success across all of
our focused markets. In this environment, Velodyne continues to
demonstrate its leadership as the only at-scale lidar player,
through strong technical and business execution.”
Third Quarter 2020 Financial Highlights
- Revenue: Total revenue of $32.1 million represents a
137% increase year-over-year. Product revenue was $26.1 million in
the quarter versus $11.7 million in Q3 2019, and License and
Services revenue was $6.0 million, up from $1.8 million in Q3
2019.
- Units and ASPs: We shipped 2,235 sensor units with a
weighted average selling price (ASP) of approximately $5,600. We
continue to build out our portfolio of sensor products at different
price points that meet many industries’ needs, including those with
lower-price application entry points.
- Agreements: Total active multi-year agreements increased
to 24 during the quarter.
- Pipeline Strength: At the end of the quarter, we are
tracking 175 pipeline projects across 25+ industries, representing
a 34% increase over 131 projects at the end of 2019.
- Gross Profit: GAAP and non-GAAP gross profit totaled
$15.0 million compared to a third quarter 2019 gross profit of $1.1
million. Previous public guidance reflected a third quarter benefit
from a one-time $11 million stocking fee, which positively impacted
gross profit.
- Net Loss and EPS: GAAP net loss was $5.3 million and
non-GAAP net loss was $9.1 million. Accordingly, GAAP loss per
share was $0.04 and non-GAAP loss per share was $0.06.
- Shares Outstanding: EPS for the third quarter is
calculated using weighted average shares outstanding of 140.5
million. As of September 30, actual shares outstanding were 168.7
million.
- Liquidity: Cash of $298 million was on the balance sheet
at the end of the third quarter.
A reconciliation between historical GAAP and non-GAAP
information is provided in the tables below.
Third Quarter 2020 Business Highlights
- Consummated business combination with Graf Industrial Corp. and
began trading on Nasdaq under the tickers VLDR (common stock) and
VLDRW (public warrants) on September 30, 2020
- Awarded six new agreements with diverse applications among each
of our three focused market segments – moving people, moving goods,
security and smart cities
- Ongoing activities with our 300+ customers, which include
nearly all the leading global automotive manufacturers and
technology companies
- Successfully defended patents with Hesai and RoboSense by
entering into recurring global licensing payment agreements
- Announced a three-year sales agreement with Baidu for our Alpha
Prime lidar sensors
Financial Outlook
Velodyne is pleased to reiterate the guidance shared in early
September as part of our business combination with Graf Industrial
Corp.
- For the full year 2020, we expect total revenue of
approximately $101 million, as previously forecasted.
- We expect the full year GAAP gross margin, including
approximately $7.5 million of stock-based compensation, in the
range of 22.6% to 25.6% and the non-GAAP gross margin to be
approximately 30% to 33%.
- For the full year, GAAP operating loss is expected to total
between $208 million and $205 million. Non-GAAP operating loss is
expected in the range of $67 million to $64 million for the full
year of 2020. The primary difference between GAAP and Non-GAAP
operating loss is the amortization of stock-based compensation
equaling approximately $142 million. Stock-based compensation is
calculated using the closing common share price for VLDR on October
30, 2020, which was $12.20. The charge for each employee equity
incentive is based on the actual day that the incentives vest.
- Given our business combination, we estimate fourth quarter
actual and fiscal year weighted average shares outstanding of
approximately 175.4 million and 148.5 million, respectively.
Conference Call Information
Velodyne will host a conference call and live webcast for
analysts and investors at 4:30 p.m. Eastern Time on November 5,
2020. Parties in the United States and Canada can access the call
by dialing (800) 289-0462, using conference code 805709. The
webcast will be accessible on Velodyne’s investor relations website
at https://investors.velodynelidar.com/. A telephonic replay of the
conference call will be available through November 12, 2020. To
access the replay, parties in the United States and Canada should
call (888) 203-1112 and enter conference code 7086125.
About Velodyne Lidar
Velodyne Lidar (NASDAQ: VLDR, VLDRW) ushered in a new era of
autonomous technology with the invention of real-time surround view
lidar sensors. Velodyne is the first public pure-play lidar company
and is known worldwide for its broad portfolio of breakthrough
lidar technologies. Velodyne’s revolutionary sensor and software
solutions provide flexibility, quality and performance to meet the
needs of a wide range of industries, including autonomous vehicles,
advanced driver assistance systems (ADAS), robotics, unmanned
aerial vehicles (UAV), smart cities, and security. Through
continuous innovation, Velodyne strives to transform lives and
communities by advancing safer mobility for all. For more
information, please visit https://velodynelidar.com/ and follow us
on Twitter: @VelodyneLidar.
VELODYNE LIDAR, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands, except share
and per share data)
September 30, 2020
December 31, 2019
(Unaudited)
Assets
Current assets:
Cash and cash equivalents
$
297,853
$
60,004
Short-term investments
—
2,199
Accounts receivable, net
19,405
11,863
Inventories, net
16,422
14,987
Prepaid and other current assets
10,906
12,918
Total current assets
344,586
101,971
Property, plant and equipment, net
17,808
26,278
Goodwill
1,189
1,189
Intangible assets, net
723
982
Contract assets
5,626
—
Other assets
632
5,755
Total assets
$
370,564
$
136,175
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
10,447
$
6,923
Accrued expense and other current
liabilities
41,134
31,160
Contract liabilities
6,574
18,261
Total current liabilities
58,155
56,344
Long-term tax liabilities
605
1,360
Other long-term liabilities
26,302
2,225
Total liabilities
85,062
59,929
Commitments and contingencies
Stockholders’ equity (as adjusted for
December 31, 2019):
Preferred stock
—
—
Common stock
17
14
Additional paid-in capital
489,920
240,464
Accumulated other comprehensive loss
(211)
(216)
Accumulated deficit
(204,224)
(164,016)
Total stockholders' equity
285,502
76,246
Total liabilities and stockholders'
equity
$
370,564
$
136,175
VELODYNE LIDAR, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands, except share
and per share data)
(Unaudited)
Three Months Ended September
30,
Nine Months Ended
September 30,
2020
2019
2020
2019
Revenue:
Product
$
26,099
$
11,698
$
53,948
$
63,234
License and services
6,000
1,819
23,568
19,192
Total revenue
32,099
13,517
77,516
82,426
Cost of revenue:
Product
16,482
14,430
46,027
51,384
License and services
648
180
1,032
1,498
Total cost of revenue
17,130
14,610
47,059
52,882
Gross profit
14,969
(1,093)
30,457
29,544
Operating expenses:
Research and development
10,535
16,521
39,653
42,211
Sales and marketing
4,126
5,126
12,798
15,945
General and administrative
10,579
4,148
26,942
10,637
Gain on sale of assets held-for-sale
(7,529)
—
(7,529)
—
Restructuring
—
—
1,043
—
Total operating expenses
17,711
25,795
72,907
68,793
Operating loss
(2,742)
(26,888)
(42,450)
(39,249)
Interest income
2
191
119
946
Interest expense
(31)
(18)
(69)
(45)
Other income (expense), net
38
(42)
(105)
(15)
Loss before income taxes
(2,733)
(26,757)
(42,505)
(38,363)
Provision for (benefit from) income
taxes
2,562
70
(4,098)
122
Net loss
$
(5,295)
$
(26,827)
$
(38,407)
$
(38,485)
Net loss per share:
Basic and diluted
$
(0.04)
$
(0.20)
$
(0.28)
$
(0.29)
Weighted-average shares used in computing
net loss per share:
Basic and diluted
140,490,370
133,033,927
139,425,745
133,033,927
VELODYNE LIDAR, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2020
2019
2020
2019
Cash flows from operating
activities:
Net loss
$
(5,295)
$
(26,827)
$
(38,407)
$
(38,485)
Adjustments to reconcile net loss to cash
used in operating activities:
Depreciation and amortization
2,091
2,109
6,342
5,804
Stock-based compensation
85
25
241
111
Write-off of deferred IPO costs
3,548
—
3,548
—
Gain on sale of assets held-for-sale
(7,529)
—
(7,529)
—
Provision for doubtful accounts
16
74
525
418
Other
4
(82)
74
(418)
Changes in operating assets and
liabilities:
Accounts receivable, net
15,847
3,958
(8,067)
7,769
Inventories, net
1,134
(2,460)
3,329
(2,074)
Prepaid and other current assets
621
(4,732)
2,510
(5,164)
Contract assets
—
—
(8,439)
38
Other assets
94
249
358
703
Accounts payable
2,543
3,254
3,188
4,631
Accrued expenses and other liabilities
(1,357)
7,994
(9,812)
7,932
Contract liabilities
(8,885)
(1,335)
2,512
(1,275)
Net cash provided by (used in) operating
activities
2,917
(17,773)
(49,627)
(20,010)
Cash flows from investing
activities:
Purchase of property, plant and
equipment
(474)
(1,634)
(2,197)
(4,805)
Proceeds from sale of assets
held-for-sale
12,275
—
12,275
—
Proceeds from sales of short-term
investments
—
7,403
—
8,903
Proceeds from maturities of short-term
investments
—
17,100
2,200
48,250
Purchase of short-term investments
—
(5,387)
—
(28,823)
Considerations paid for acquisition
—
(2,473)
—
(2,473)
Net cash provided by investing
activities
11,801
15,009
12,278
21,052
Cash flows from financing
activities:
Proceeds from issuance of preferred stock,
net of issuance costs
—
—
19,919
—
Proceeds from Business Combination and
PIPE offering, net of transaction costs
248,355
—
248,303
—
Repurchase of common stock
(1,801)
—
(1,801)
—
Cash paid for IPO costs
—
—
(1,144)
—
Proceeds from notes payable
—
—
10,000
—
Net cash provided by (used in) financing
activities
246,554
—
275,277
—
Effect of exchange rate fluctuations on
cash and cash equivalent
(49)
(8)
(79)
(67)
Net increase (decrease) in cash and
cash equivalents
261,223
(2,772)
237,849
975
Beginning cash and cash
equivalents
36,630
27,651
60,004
23,904
Ending cash and cash
equivalents
$
297,853
$
24,879
$
297,853
$
24,879
VELODYNE LIDAR, INC. AND
SUBSIDIARIES
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
(In thousands, except share
and per share data)
(Unaudited)
Three Months Ended September
30,
Nine Months Ended
September 30,
2020
2019
2020
2019
Gross profit (loss) on GAAP
basis
$
14,969
$
(1,093)
$
30,457
$
29,544
Gross margin on GAAP basis
47%
(8%)
39%
36%
Stock-based compensation
2
—
2
—
Gross profit (loss) on non-GAAP
basis
$
14,971
$
(1,093)
$
30,459
$
29,544
Gross margin on non-GAAP basis
47%
(8%)
39%
36%
Operation loss on GAAP basis
$
(2,742)
$
(26,888)
$
(42,450)
$
(39,249)
Stock-based compensation
85
25
241
111
Legal settlements
—
—
2,479
—
Gain on Sale of assets held-for-sale
(7,529)
—
(7,529)
—
Write-off of deferred IPO costs
3,548
3,548
Amortization of acquisition-related
intangible assets
96
92
288
92
Restructuring charges
—
—
1,043
—
Operation loss on non-GAAP
basis
$
(6,542)
$
(26,771)
$
(42,380)
$
(39,046)
Provision for (benefit from) income
taxes on GAAP basis
$
2,562
$
70
$
(4,098)
$
122
Non-GAAP tax reconciling adjustments
—
—
6,679
—
Provision for income taxes on non-GAAP
basis
$
2,562
$
70
$
2,581
$
122
Net loss on GAAP basis
$
(5,295)
$
(26,827)
$
(38,407)
$
(38,485)
Stock-based compensation
85
25
241
111
Legal settlements
—
—
2,479
—
Gain on Sale of assets held-for-sale
(7,529)
—
(7,529)
—
Write-off of deferred IPO costs
3,548
3,548
Amortization of acquisition-related
intangible assets
96
92
288
92
Restructuring charges
—
—
1,043
—
Non-GAAP tax reconciling adjustments
—
—
(6,679)
—
Net loss on non-GAAP basis
$
(9,095)
$
(26,710)
$
(45,016)
$
(38,282)
Net loss per share on GAAP
basis
Basic and diluted
$
(0.04)
$
(0.20)
$
(0.28)
$
(0.29)
Weighted-average shares on GAAP
basis
Basic and diluted
140,490,370
133,033,927
139,425,745
133,033,927
Net loss per share on non-GAAP
basis
Basic and diluted
$
(0.06)
$
(0.20)
$
(0.32)
$
(0.29)
Weighted-average shares on non-GAAP
basis
Basic and diluted
140,490,370
133,033,927
139,425,745
133,033,927
Forward-Looking Statements
This press release 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. Forward-looking statements give our current
expectations and projections relating to our financial condition,
results of operations, plans, objectives, future performance and
business. You can identify forward-looking statements by the fact
that they do not relate strictly to historical or current facts.
These statements may include words such as "anticipate",
"estimate", "expect", "project", "plan", "intend", "believe",
"may", "will", "should", "can have", "likely" and other words and
terms of similar meaning in connection with any discussion of the
timing or nature of future operating or financial performance or
other events. All forward-looking statements are subject to risks
and uncertainties that may cause actual results to differ
materially from those that we expected, including: the impact on
our operations and financial condition from the effects of the
current COVID-19 pandemic both on Velodyne’s business and those of
its customers and suppliers; Velodyne’s ability to execute its
business plan; the timing of revenue from existing customers,
including uncertainties related to the ability of Velodyne’s
customers to commercialize their products and the ultimate market
acceptance of these products; uncertainties related to Velodyne’s
estimates of the size of the markets for its products and future
revenue opportunities; the rate and degree of market acceptance of
Velodyne’s products; the success of other competing lidar and
sensor-related products and services that exist or may become
available; Velodyne’s ability to identify and integrate
acquisitions; rising costs adversely affecting Velodyne’s
profitability; uncertainties related to Velodyne’s current
litigation and potential litigation involving GRAF or Velodyne or
the validity or enforceability of Velodyne’s intellectual property;
Velodyne’s ability to partner with and rely on third party
manufacturers; general economic and market conditions impacting
demand for Velodyne’s products and services; and changes in
applicable laws or regulations. Given these factors, as well as
other variables that may affect Velodyne’s operating results, you
should not rely on forward-looking statements, assume that past
financial performance will be a reliable indicator of future
performance, or use historical trends to anticipate results or
trends in future periods. The forward-looking statements included
in this press release and on the related teleconference call relate
only to events as of the date hereof. Velodyne undertakes no
obligation to update or revise any forward-looking statement as a
result of new information, future events or otherwise, except as
otherwise required by law.
Non-GAAP Financial Measures
In addition to our results determined in accordance with
generally accepted accounting principles in the United States
(“GAAP”), we believe the non‑GAAP measures of non-GAAP gross profit
(loss), non-GAAP gross margin, Non‑GAAP operating loss, non-GAAP
net loss, and non‑GAAP net loss per share are useful in evaluating
our operating performance. Certain of these non-GAAP measures
exclude stock-based compensation, litigation settlements, gain from
asset sales, one-time IPO-related costs, amortization of
acquisition-related intangibles assets, and discrete tax items. We
believe that non‑GAAP financial information, when taken
collectively, may be helpful to investors because it provides
consistency and comparability with past financial performance and
assists in comparisons with other companies, some of which use
similar non‑GAAP information to supplement their GAAP results. The
non‑GAAP financial information is presented for supplemental
informational purposes only, and should not be considered a
substitute for financial information presented in accordance with
GAAP, and may be different from similarly‑titled non‑GAAP measures
used by other companies. Reconciliation tables of the most
comparable GAAP financial measures to the non-GAAP financial
measures are used in this press release. The impact of these items
in future periods is uncertain and, depends on various factors.
Accordingly, a reconciliation for forward-looking non-GAAP
operating income is not available without unreasonable effort.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201105006104/en/
Investor Contact: Drew Hamer Chief Financial Officer
InvestorRelations@velodyne.com
Media Contact: Sean Dowdall Sean@landispr.com
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