SAN JOSE β August 5, 2021 β Velodyne Lidar, Inc. (NASDAQ: VLDR, VLDRW), the leading lidar company, known worldwide for its broad portfolio of breakthrough lidar technologies, today announced financial results for its second quarter ended June 30, 2021.
Drew Hamer, CFO of Velodyne Lidar, commented, βThe use of lidar today in our served markets and emerging target markets continues to gain momentum. We are executing against this trend by closing deals with customers across a variety of markets, as evidenced by our growing product pipeline and our success meeting our full year 2021 goal of 34 multiyear agreements already by August 1st. We expect to continue this momentum with four additional multiyear agreements by year end.
βWe continue to advance our industry leading technology as well. On the hardware side, in June we launched the next generation of our Velabit sensor, demonstrating our ability to meet market demands by addressing the cost, safety, and design challenges of autonomous solutions while delivering state-of-the-art performance.Β On the software side, on July 29th we unveiled a new software development kit which allows customers to utilize the advanced capabilities of our Vella lidar perception software in their autonomous solutions. Velodyne is the only lidar company currently manufacturing an off-the-shelf, full software and hardware solution that can be put into vehicles and infrastructure. As a result, we are the only lidar company providing a full circle of safety and autonomy as we continue our mission to democratize lidar-based safety and autonomy.β
Since the companyβs earnings call in May, Velodyne announced multiple key business developments and operational developments which affirm the companyβs ongoing success and support its long-term outlook:
A reconciliation between historical GAAP and non-GAAP information is provided in the tables below.
As of the end of the second quarter, Velodyne estimates that it could have the opportunity for over $1.0 billion of revenue from signed and awarded projects through 2025. The company has recently signed new ADAS multiyear agreements, which are expected to begin to ramp starting in 2026. The company estimates a pipeline of projects that are not yet signed and awarded of $4.5 billion through 2025. In addition, Velodyne continues to invest in scalable lidar architectures, advanced manufacturing technology and software solutions. This underpins the companyβs long-term expectations of non-GAAP gross margin percentage ranging in the mid to high 50s and Adjusted EBITDA margin of more than 20%.
Having already met its prior target of 34 multiyear agreements for the full year 2021, the company has raised its goal and now anticipates signing four more multiyear agreements to bring its total to 38 multiyear agreements by December 31, 2021.
For the full year of 2021,
Velodyne will host a conference call and live webcast for analysts and investors at 4:30 p.m. Eastern Time on August 5, 2021. Parties in the United States and Canada can access the call by 877-270-2148, using conference code 10158243. The webcast will be accessible on Velodyneβs investor relations website at https://investors.velodynelidar.com/. A telephonic replay of the conference call will be available through August 12, 2021. To access the replay, parties inΒ the United States and CanadaΒ should call 877-344-7529 and enter conference code 10158243.
This press release contains βforward-looking statementsβ within the meaning of the βsafe harborβ 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 Velodyneβs business and those of its customers and suppliers; Velodyneβs ability to execute its business plan; the timing of revenue from existing customers, including uncertainties related to the ability of Velodyneβs customers to commercialize their products and the ultimate market acceptance of these products; uncertainties related to Velodyne Lidarβs estimates of the size of the markets for its products and future revenue opportunities, including projects that are not yet signed or awarded; the rate and degree of market acceptance of Velodyne Lidarβs products; the success of other competing lidar and sensor-related products and services that exist or may become available; rising costs adversely affecting Velodyneβs profitability; uncertainties related to Velodyne Lidarβs current litigation and potential litigation involving Velodyne Lidar or the validity or enforceability of Velodyne Lidarβs intellectual property; Velodyne Lidarβs ability to partner with and rely on third party manufacturers; general economic and market conditions impacting demand for Velodyne Lidarβs products and services; and changes in applicable laws or regulations.
Given these factors, as well as other variables that may affect Velodyne Lidarβs 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 relate only to events as of the date hereof. Velodyne Lidar 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.
In addition to our results determined in accordance with generally accepted accounting principles in the United States (βGAAPβ), we believe the nonβGAAP measures of non-GAAP gross profit (loss), non-GAAP gross margin, non-GAAP operating expenses, nonβGAAP operating loss, non-GAAP net loss, nonβGAAP net loss per share, and Adjusted EBITDA are useful in evaluating our operating performance. Certain of these non-GAAP measures exclude stock-based compensation and related employer payroll taxeslitigation settlements, amortization of acquisition-related intangibles assets, restructuring, and discrete tax items. We believe that nonβGAAP 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 nonβGAAP information to supplement their GAAP results. The nonβGAAP 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 similarlyβtitled nonβGAAP 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.Β
Drew Hamer
Chief Financial Officer
[email protected]Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β
Codeword
Liv Allen
VELODYNE LIDAR, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, | December 31, | ||||||
2021 | 2020 | ||||||
(Unaudited) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 76,084 | $ | 204,648 | |||
Short-term investments | 277,546 | 145,636 | |||||
Accounts receivable, net | 9,473 | 13,979 | |||||
Inventories, net | 16,675 | 18,132 | |||||
Prepaid and other current assets | 10,231 | 22,319 | |||||
Total current assets | 390,009 | 404,714 | |||||
Property, plant and equipment, net | 14,652 | 16,805 | |||||
Goodwill | 1,189 | 1,189 | |||||
Intangible assets, net | 434 | 627 | |||||
Contract assets | 10,378 | 8,440 | |||||
Other assets | 19,935 | 937 | |||||
Total assets | $ | 436,597 | $ | 432,712 | |||
Liabilities and Stockholdersβ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 5,940 | $ | 7,721 | |||
Accrued expense and other current liabilities | 26,730 | 50,349 | |||||
Contract liabilities | 8,736 | 7,323 | |||||
Total current liabilities | 41,406 | 65,393 | |||||
Long-term tax liabilities | 570 | 569 | |||||
Other long-term liabilities | 30,378 | 25,927 | |||||
Total liabilities | 72,354 | 91,889 | |||||
Commitments and contingencies | |||||||
Stockholdersβ equity: | |||||||
Preferred stock | β | β | |||||
Common stock | 20 | 18 | |||||
Additional paid-in capital | 800,040 | 656,717 | |||||
Accumulated other comprehensive loss | (216) | (230) | |||||
Accumulated deficit | (435,601) | (315,682) | |||||
Total stockholdersβ equity | 364,243 | 340,823 | |||||
Total liabilities and stockholdersβ equity | $ | 436,597 | $ | 432,712 |
VELODYNE LIDAR, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended | Six Months Ended | ||||||||||||||||||
June 30, 2021 | March 31, 2021 | June 30, 2020 | June 30, 2021 | June 30, 2020 | |||||||||||||||
Revenue: | |||||||||||||||||||
Product | $ | 11,970 | $ | 10,593 | $ | 11,427 | $ | 22,563 | $ | 27,849 | |||||||||
License and services | 1,626 | 7,133 | 16,959 | 8,759 | 17,568 | ||||||||||||||
Total revenue | 13,596 | 17,726 | 28,386 | 31,322 | 45,417 | ||||||||||||||
Cost of revenue: | |||||||||||||||||||
Product | 19,210 | 15,629 | 14,419 | 34,839 | 29,545 | ||||||||||||||
License and services | 170 | 179 | 81 | 349 | 384 | ||||||||||||||
Total cost of revenue | 19,380 | 15,808 | 14,500 | 35,188 | 29,929 | ||||||||||||||
Gross profit (loss) | (5,784) | 1,918 | 13,886 | (3,866) | 15,488 | ||||||||||||||
Operating expenses: | |||||||||||||||||||
Research and development | 17,009 | 18,378 | 14,591 | 35,387 | 29,118 | ||||||||||||||
Sales and marketing | 47,176 | 7,075 | 3,373 | 54,251 | 8,672 | ||||||||||||||
General and administrative | 20,583 | 17,036 | 5,630 | 37,619 | 16,363 | ||||||||||||||
Restructuring | β | β | (3) | β | 1,043 | ||||||||||||||
Total operating expenses | 84,768 | 42,489 | 23,591 | 127,257 | 55,196 | ||||||||||||||
Operating loss | (90,552) | (40,571) | (9,705) | (131,123) | (39,708) | ||||||||||||||
Interest income | 109 | 103 | 5 | 212 | 117 | ||||||||||||||
Interest expense | (41) | (36) | (32) | (77) | (38) | ||||||||||||||
Other income (expense), net | 10,136 | (17) | 22 | 10,119 | (143) | ||||||||||||||
Loss before income taxes | (80,348) | (40,521) | (9,710) | (120,869) | (39,772) | ||||||||||||||
Provision for (benefit from) income taxes | 339 | 296 | 17 | 635 | (6,660) | ||||||||||||||
Net loss | $ | (80,687) | $ | (40,817) | $ | (9,727) | $ | (121,504) | $ | (33,112) | |||||||||
Net loss per share: | |||||||||||||||||||
Basic and diluted | $ | (0.42) | $ | (0.22) | $ | (0.07) | $ | (0.64) | $ | (0.24) | |||||||||
Weighted-average shares used in computing net loss per share: | |||||||||||||||||||
Basic and diluted | 193,002,807 | 189,222,807 | 139,863,194 | 191,123,251 | 138,887,585 | ||||||||||||||
VELODYNE LIDAR, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, 2021 | June 30, 2020 | June 30, 2021 | June 30, 2020 | ||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net loss | $ | (80,687) | $ | (9,727) | $ | (121,504) | $ | (33,112) | |||||||
Adjustments to reconcile net loss to cash used in operating activities: | |||||||||||||||
Depreciation and amortization | 2,061 | 2,080 | 4,114 | 4,251 | |||||||||||
Reduction in carrying amount of ROU assets | 746 | β | 1,533 | β | |||||||||||
Stock-based compensation | 53,195 | 135 | 64,725 | 156 | |||||||||||
Provision for doubtful accounts | 743 | 195 | 2,425 | 509 | |||||||||||
Gain from forgiveness of notes payable | (10,124) | β | (10,124) | β | |||||||||||
Other | 389 | 70 | 550 | 70 | |||||||||||
Changes in operating assets and liabilities: | |||||||||||||||
Accounts receivable, net | 3,254 | (24,105) | 2,082 | (23,914) | |||||||||||
Inventories, net | 4,219 | 2,349 | 1,457 | 2,195 | |||||||||||
Prepaid and other current assets | 1,810 | 7,615 | 3,512 | 2,939 | |||||||||||
Contract assets | β | (8,439) | (2,438) | (8,439) | |||||||||||
Other assets | 8 | 166 | 6 | 264 | |||||||||||
Accounts payable | 2,176 | (3,946) | (1,680) | 645 | |||||||||||
Accrued expenses and other liabilities | (3,844) | (3,279) | (7,711) | (9,506) | |||||||||||
Contract liabilities | (1,628) | 17,629 | 264 | 11,397 | |||||||||||
Net cash used in operating activities | (27,682) | (19,257) | (62,789) | (52,545) | |||||||||||
Cash flows from investing activities: | |||||||||||||||
Purchase of property, plant and equipment | (1,178) | (894) | (1,779) | (1,723) | |||||||||||
Proceeds from sales of short-term investments | β | β | 2,000 | β | |||||||||||
Proceeds from maturities of short-term investments | 48,943 | β | 55,943 | 2,200 | |||||||||||
Purchase of short-term investments | (98,444) | β | (190,376) | β | |||||||||||
Investment in notes receivable | (750) | β | (750) | β | |||||||||||
Net cash provided by (used in) investing activities | (51,429) | (894) | (134,962) | 477 | |||||||||||
Cash flows from financing activities: | |||||||||||||||
Proceeds from issuance of preferred stock, net of issuance costs | β | 19,919 | β | 19,919 | |||||||||||
Payment of transaction costs related to Business Combination | 1 | β | (20,005) | β | |||||||||||
Proceeds from warrant exercises | 22 | β | 89,244 | β | |||||||||||
Tax withholding payment for vested equity awards | β | β | (37) | β | |||||||||||
Cash paid for IPO costs | β | (537) | β | (1,196) | |||||||||||
Proceeds from notes payable | β | 10,000 | β | 10,000 | |||||||||||
Net cash provided byΒ financing activities | 23 | 29,382 | 69,202 | 28,723 | |||||||||||
Effect of exchange rate fluctuations on cash and cash equivalents | (33) | (7) | (15) | (30) | |||||||||||
Net decrease in cash and cash equivalents | (79,121) | 9,224 | (128,564) | (23,375) | |||||||||||
Beginning cash and cash equivalents | 155,205 | 27,405 | 204,648 | 60,004 | |||||||||||
Ending cash and cash equivalents | $ | 76,084 | $ | 36,629 | $ | 76,084 | $ | 36,629 |
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 | Six Months Ended | ||||||||||||||||||
June 30, 2021 | March 31, 2021 | June 30, 2020 | June 30, 2021 | June 30, 2020 | |||||||||||||||
Gross profit (loss) on GAAP basis | $ | (5,784) | $ | 1,918 | $ | 13,886 | $ | (3,866) | $ | 15,488 | |||||||||
Gross margin on GAAP basis | (43) | % | (30) | % | 82Β | % | (30) | % | 34Β | % | |||||||||
Stock-based compensation and related employer payroll taxes | 451 | 811 | β | 1,262 | β | ||||||||||||||
Gross profit (loss) on non-GAAP basis | $ | (5,333) | $ | 2,729 | $ | 13,886 | $ | (2,604) | $ | 15,488 | |||||||||
Gross margin on non-GAAP basis | (39) | % | 15Β | % | 82Β | % | (8) | % | 34Β | % | |||||||||
Operating expenses on GAAP basis | $ | 84,768 | $ | 42,489 | $ | 31,605 | $ | 127,257 | $ | 55,196 | |||||||||
Stock-based compensation and related employer payroll taxes | (53,624) | (13,345) | (135) | (66,969) | (156) | ||||||||||||||
Legal settlements | (2,245) | (450) | (18) | (2,695) | (2,480) | ||||||||||||||
Amortization of acquisition-related intangible assets | (97) | (96) | (96) | (193) | (192) | ||||||||||||||
Restructuring charges | β | β | 3 | β | (1,043) | ||||||||||||||
Operating expenses on non-GAAP basis | $ | 28,802 | $ | 28,598 | $ | 31,359 | $ | 57,400 | $ | 51,325 | |||||||||
Operating loss on GAAP basis | $ | (90,552) | $ | (40,571) | $ | (9,705) | $ | (131,123) | $ | (39,708) | |||||||||
Stock-based compensation and related employer payroll taxes | 54,075 | 14,156 | 135 | 68,231 | 156 | ||||||||||||||
Legal settlements | 2,245 | 450 | 18 | 2,695 | 2,480 | ||||||||||||||
Amortization of acquisition-related intangible assets | 97 | 96 | 96 | 193 | 192 | ||||||||||||||
Restructuring charges | β | β | (3) | β | 1,043 | ||||||||||||||
Operating loss on non-GAAP basis | $ | (34,135) | $ | (25,869) | $ | (9,459) | $ | (60,004) | $ | (35,837) | |||||||||
Other income (expense), net | $ | 10,136 | $ | (17) | $ | (165) | $ | 10,119 | $ | (143) | |||||||||
Gain from forgiveness of notes payable | (10,124) | β | β | (10,124) | β | ||||||||||||||
Other income (expense), net on non-GAAP basis | $ | 12 | $ | (17) | $ | (165) | $ | (5) | $ | (143) | |||||||||
Provision for (benefit from) income taxes on GAAP basis | $ | 339 | $ | 296 | $ | 17 | $ | 635 | $ | (6,660) | |||||||||
Non-GAAP tax reconciling adjustments | β | β | (7) | β | 6,679 | ||||||||||||||
Provision for (benefit from) income taxes on non-GAAP basis | $ | 339 | $ | 296 | $ | 10 | $ | 635 | $ | 19 | |||||||||
Net loss on GAAP basis | $ | (80,687) | $ | (40,817) | $ | (9,727) | $ | (121,504) | $ | (33,112) | |||||||||
Stock-based compensation | 54,075 | 14,156 | 135 | 68,231 | 156 | ||||||||||||||
Legal settlements | 2,245 | 450 | 18 | 2,695 | 2,480 | ||||||||||||||
Amortization of acquisition-related intangible assets | 97 | 96 | 96 | 193 | 192 | ||||||||||||||
Restructuring charges | β | β | (3) | β | 1,043 | ||||||||||||||
Gain from forgiveness of notes payable | (10,124) | β | β | (10,124) | β | ||||||||||||||
Non-GAAP tax reconciling adjustments | β | β | 7 | β | (6,679) | ||||||||||||||
Net loss on non-GAAP basis | $ | (34,394) | $ | (26,115) | $ | (9,474) | $ | (60,509) | $ | (35,920) | |||||||||
Net loss per share on GAAP basis | |||||||||||||||||||
Basic and diluted | $ | (0.42) | $ | (0.22) | $ | (0.07) | $ | (0.64) | $ | (0.24) | |||||||||
Weighted-average shares on GAAP basis | |||||||||||||||||||
Basic and diluted | 193,002,807 | 189,222,807 | 139,863,194 | 191,123,251 | 138,887,585 | ||||||||||||||
Net loss per share on non-GAAP basis | |||||||||||||||||||
Basic and diluted | $ | (0.18) | $ | (0.14) | $ | (0.07) | $ | (0.32) | $ | (0.26) | |||||||||
Weighted-average shares on non-GAAP basis | |||||||||||||||||||
Basic and diluted | 193,002,807 | 189,222,807 | 139,863,194 | 191,123,251 | 138,887,585 |
Velodyne Lidar (Nasdaq: VLDR, VLDRW) ushered in a new era of autonomous technology with the invention of real-time surround view lidar sensors. Velodyne, a global leader in lidar, is known for its broad portfolio of breakthrough lidar technologies. Velodyneβs revolutionary sensor and software solutions provide flexibility, quality and performance to meet the needs of a wide range of industries, including robotics, industrial, intelligent infrastructure, autonomous vehicles and advanced driver assistance systems (ADAS). Through continuous innovation, Velodyne strives to transform lives and communities by advancing safer mobility for all.