Velodyne Lidar Reports First Quarter 2022 Financial Results

- Reported Q1 2022 revenue of $6.2 million, at the top end of guidance -

- Delivered billings of $11.5 million -

- Provided Q2 2022 guidance of revenue of $9.5 million to $12.0 million and billings of $12.0 million to $14.0 million -

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 first quarter ended March 31, 2022.

“In the first quarter, we continued to see strong customer demand across all our target markets,” said Dr. Ted Tewksbury, CEO of Velodyne Lidar. “Even in the face of supply chain headwinds, our solid execution delivered billings and revenues at the high end of our expectations, and we were able to partially offset our increased component costs via pricing. During the quarter, we made solid progress on our comprehensive organizational transformation to position Velodyne to provide our customers with full stack intelligent vision solutions to accelerate their development of autonomous systems.”

First Quarter of 2022 Financial Summary

The first quarter of 2022 marked the commencement of accounting for the warrants associated with the Amazon agreement that was announced on February 4, 2022. The primary impact of this accounting is that reported revenues will diverge from cash flow, which is not impacted by the required revenue accounting. As a result, Velodyne is expanding the financial information it will report to provide more perspective on the company’s underlying business performance by including a billings metric. Billings represents the dollar value of products and services provided during the current period and invoiced to the customer.

For the first quarter of 2022, compared to fourth quarter of 2021:

  • Total revenue was $6.2 million and includes $5.3 million impact of the Amazon warrant.
    • Total product revenue was $4.4 million and includes to the $5.3 million non-cash contra revenue related to the Amazon warrant, compared to $13.7 million in the fourth quarter of 2021. In addition to the warrant impact, the decrease reflects supply chain constraints, which were partially mitigated by price increases. First quarter 2022 sensor sales were over 2,350 units and weighted ASPs increased approximately 48% from the fourth quarter of 2021.
    • License and services revenue was $1.8 million, compared to $3.9 million in the fourth quarter of 2021, which included an annual royalty of $2.4 million accrued at year end.
  • Billings were $11.5 million, compared to billings of $13.7 million in the fourth quarter of 2021. Billings were impacted by supply chain constraints, which were partially mitigated by price increases.
  • GAAP gross loss was $9.3 million, including the $5.3 million non-cash contra revenue, compared to a gross profit of $2.7 million in the fourth quarter of 2021. Non-GAAP gross loss was $8.8 million, including the $5.3 million non-cash contra revenue, compared to a gross profit of $3.2 million in the fourth quarter of 2021.
  • GAAP operating expenses were $39.6 million, compared to $40.3 million in the fourth quarter of 2021. Non-GAAP operating expenses were $35.0 million, compared to $35.2 million in the fourth quarter of 2021.
  • GAAP net loss, including the $5.3 million non-cash contra revenue, was $49.1 million, or $(0.25) per share, compared to $37.5 million, or $(0.19) per share in the fourth quarter of 2021. Non-GAAP net loss, including the $5.3 million non-cash contra revenue, was $44.0 million, or $(0.22) per share, compared to $31.8 million, $(0.16) per share in the fourth quarter of 2021.
  • At March 31, 2022, the company had $256.4 million in cash and short-term investments, compared to $294.4 million at December 31, 2021.

A reconciliation between historical GAAP and non-GAAP information is provided in the tables below.

Second Quarter of 2022 Guidance

Reflecting continued demand and ongoing supply chain challenges for second quarter of 2022, billings are expected to range between $12.0 million to $14.0 million and revenues are expected to range from $9.5 million to $12.0 million, offset by $2.0 million to $2.5 million in non-cash contra revenue related to the Amazon warrant.

Recent Corporate Highlights

  • Velodyne won the 2022 SXSW Innovation Award in the “Smart Cities, Transportation & Delivery” category for its Intelligent Infrastructure Solution (IIS).
  • Russelsheim am Main, Germany selected Velodyne’s IIS to create a city-wide system for truck passage control.
  • Velodyne demonstrated its full stack vision solutions for robotics, industrial and trucking at XPONENTIAL 2022.

Conference Call Information

Velodyne will host a conference call and live webcast for analysts and investors at 4:30 p.m. Eastern Time on May 5, 2022. Parties in the United States and Canada can access the call by dialing 844-890-1797. The webcast will be accessible on Velodyne’s investor relations website at here . A telephonic replay of the conference call will be available through May 12, 2022. To access the replay, parties in the United States and Canada should call 877-344-7529 and enter conference code 7274244.

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; supply chain issues in the semiconductor market; 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 Lidar’s estimates of the size of the markets for its products and future revenue opportunities, including projects that are not yet signed or awarded; charges related to the vesting of the Amazon Warrant; the rate and degree of market acceptance of Velodyne Lidar’s products in a variety of industries; the success of other competing lidar and sensor-related products and services that exist or may become available; rising costs adversely affecting Velodyne’s profitability; uncertainties related to Velodyne Lidar’s current litigation and potential litigation involving Velodyne Lidar or the validity or enforceability of Velodyne Lidar’s intellectual property; Velodyne Lidar’s ability to partner with and rely on third party manufacturers; general economic and market conditions impacting demand for Velodyne Lidar’s products and services; and changes in applicable laws or regulations.

Given these factors, as well as other variables that may affect Velodyne Lidar’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 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.

Billings

Billings represents the dollar value of products and services provided during the current period and invoiced to the customer. Management uses this metric to track commercial growth, establish performance targets, and make budgeting and operating decisions. Billings does not include the effect of the contra revenue associated with the warrants.

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 expenses, 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 and related employer payroll taxes, litigation settlements and amortization of acquisition-related intangibles assets. 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.

About Velodyne Lidar, Inc.

Velodyne Lidar (Nasdaq: VLDR, VLDRW) ushered in a new era of autonomous technology with the invention of real-time surround view lidar sensors. Velodyne, the global leader in lidar, is known 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, visit www.velodynelidar.com.

VELODYNE LIDAR, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

 

 

March 31,

 

December 31,

 

 

2022

 

 

 

2021

 

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

31,119

 

 

$

24,064

 

Short-term investments

 

225,326

 

 

 

270,357

 

Accounts receivable, net

 

7,534

 

 

 

8,881

 

Inventories, net

 

12,498

 

 

 

9,299

 

Prepaid and other current assets

 

13,090

 

 

 

14,822

 

Total current assets

 

289,567

 

 

 

327,423

 

Property, plant and equipment, net

 

14,572

 

 

 

14,710

 

Goodwill

 

1,189

 

 

 

1,189

 

Intangible assets, net

 

586

 

 

 

724

 

Contract assets

 

9,182

 

 

 

12,962

 

Other assets

 

17,754

 

 

 

18,413

 

Total assets

$

332,850

 

 

$

375,421

 

Liabilities and Stockholders’ Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

7,130

 

 

$

5,105

 

Accrued expense and other current liabilities

 

32,564

 

 

 

35,651

 

Contract liabilities

 

5,656

 

 

 

6,348

 

Total current liabilities

 

45,350

 

 

 

47,104

 

Long-term tax liabilities

 

445

 

 

 

443

 

Other long-term liabilities

 

27,401

 

 

 

28,611

 

Total liabilities

 

73,196

 

 

 

76,158

 

Commitments and contingencies

 

 

 

Stockholders’ equity:

 

 

 

Preferred stock

 

 

 

 

 

Common stock

 

20

 

 

 

20

 

Additional paid-in capital

 

836,229

 

 

 

825,988

 

Accumulated other comprehensive loss

 

(1,141

)

 

 

(412

)

Accumulated deficit

 

(575,454

)

 

 

(526,333

)

Total stockholders’ equity

 

259,654

 

 

 

299,263

 

Total liabilities and stockholders’ equity

$

332,850

 

 

$

375,421

 

VELODYNE LIDAR, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share and per share data)

(Unaudited)

 

 

Three Months Ended

 

March 31,

2022

 

December 31,

2021

 

March 31,

2021

Revenue:

 

 

 

 

 

Product

$

4,362

 

 

$

13,657

 

 

$

10,593

 

License and services

 

1,818

 

 

 

3,885

 

 

 

7,133

 

Total revenue

 

6,180

 

 

 

17,542

 

 

 

17,726

 

Cost of revenue:

 

 

 

 

 

Product

 

15,196

 

 

 

14,758

 

 

 

15,629

 

License and services

 

267

 

 

 

92

 

 

 

179

 

Total cost of revenue

 

15,463

 

 

 

14,850

 

 

 

15,808

 

Gross profit (loss)

 

(9,283

)

 

 

2,692

 

 

 

1,918

 

Operating expenses:

 

 

 

 

 

Research and development

 

21,297

 

 

 

22,255

 

 

 

18,378

 

Sales and marketing

 

6,005

 

 

 

7,227

 

 

 

7,075

 

General and administrative

 

12,317

 

 

 

10,867

 

 

 

17,036

 

Total operating expenses

 

39,619

 

 

 

40,349

 

 

 

42,489

 

Operating loss

 

(48,902

)

 

 

(37,657

)

 

 

(40,571

)

Interest income

 

227

 

 

 

127

 

 

 

103

 

Interest expense

 

(3

)

 

 

3

 

 

 

(36

)

Other income (expense), net

 

4

 

 

 

53

 

 

 

(17

)

Loss before income taxes

 

(48,674

)

 

 

(37,474

)

 

 

(40,521

)

Provision for (benefit from) income taxes

 

447

 

 

 

(4

)

 

 

296

 

Net loss

$

(49,121

)

 

$

(37,470

)

 

$

(40,817

)

Net loss per share:

 

 

 

 

 

Basic and diluted

$

(0.25

)

 

$

(0.19

)

 

$

(0.22

)

Weighted-average shares used in computing net loss per share:

 

 

 

 

 

Basic and diluted

 

198,166,060

 

 

 

197,385,362

 

 

 

189,222,807

 

VELODYNE LIDAR, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

Three Months Ended

 

March 31, 2022

 

March 31, 2021

Cash flows from operating activities:

 

 

 

Net loss

$

(49,121

)

 

$

(40,817

)

Adjustments to reconcile net loss to cash used in operating activities:

 

 

 

Depreciation and amortization

 

2,172

 

 

 

2,053

 

Reduction of operating lease right-of-use (“ROU”) assets

 

670

 

 

 

787

 

Stock-based compensation

 

4,938

 

 

 

11,530

 

Reduction of revenue related to stock warrant granted to a customer

 

5,303

 

 

 

 

Provision for doubtful accounts

 

 

 

 

1,682

 

Amortization of investment premium or discount, net

 

427

 

 

 

 

Other

 

(1

)

 

 

161

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable, net

 

1,347

 

 

 

(1,172

)

Inventories, net

 

(3,199

)

 

 

(2,762

)

Prepaid and other current assets

 

2,249

 

 

 

1,702

 

Contract assets

 

3,262

 

 

 

(2,438

)

Other assets

 

41

 

 

 

(2

)

Accounts payable

 

2,114

 

 

 

(3,856

)

Accrued expenses and other liabilities

 

(3,832

)

 

 

(3,867

)

Contract liabilities

 

(1,677

)

 

 

1,892

 

Net cash used in operating activities

 

(35,307

)

 

 

(35,107

)

Cash flows from investing activities:

 

 

 

Purchase of property, plant and equipment and intangibles

 

(1,545

)

 

 

(601

)

Proceeds from sales of short-term investments

 

14,499

 

 

 

2,000

 

Proceeds from maturities of short-term investments

 

64,750

 

 

 

7,000

 

Purchase of short-term investments

 

(35,358

)

 

 

(91,932

)

Net cash provided by (used in) investing activities

 

42,346

 

 

 

(83,533

)

Cash flows from financing activities:

 

 

 

Payment of transaction costs related to Business Combination

 

 

 

 

(20,006

)

Proceeds from warrant exercises, net of issuance costs

 

 

 

 

89,222

 

Tax withholding payment for vested equity awards

 

 

 

 

(37

)

Net cash provided by financing activities

 

 

 

 

69,179

 

Effect of exchange rate fluctuations on cash and cash equivalents

 

16

 

 

 

18

 

Net increase (decrease) in cash and cash equivalents

 

7,055

 

 

 

(49,443

)

Beginning cash and cash equivalents

 

24,064

 

 

 

204,648

 

Ending cash and cash equivalents

$

31,119

 

 

$

155,205

 

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

 

March 31,

2022

 

December 31,

2021

 

March 31,

2021

Gross profit (loss) on GAAP basis

$

(9,283

)

 

$

2,692

 

 

$

1,918

 

Gross margin on GAAP basis

 

(150

) %

 

 

15

%

 

 

11

%

Stock-based compensation and related employer payroll taxes

 

528

 

 

 

545

 

 

 

811

 

Gross profit (loss) on non-GAAP basis

$

(8,755

)

 

$

3,237

 

 

$

2,729

 

Gross margin on non-GAAP basis

 

(142

) %

 

 

18

%

 

 

15

%

 

 

 

 

 

 

Operating expenses on GAAP basis

$

39,619

 

 

$

40,349

 

 

$

42,489

 

Stock-based compensation and related employer payroll taxes

 

(4,474

)

 

 

(5,267

)

 

 

(13,345

)

Legal settlements

 

 

 

 

250

 

 

 

(450

)

Amortization of acquisition-related intangible assets

 

(96

)

 

 

(110

)

 

 

(96

)

Operating expenses on non-GAAP basis

$

35,049

 

 

$

35,222

 

 

$

28,598

 

 

 

 

 

 

 

Operating loss on GAAP basis

$

(48,902

)

 

$

(37,657

)

 

$

(40,571

)

Stock-based compensation and related employer payroll taxes

 

5,002

 

 

 

5,812

 

 

 

14,156

 

Legal settlements

 

 

 

 

(250

)

 

 

450

 

Amortization of acquisition-related intangible assets

 

96

 

 

 

110

 

 

 

96

 

Operating loss on non-GAAP basis

$

(43,804

)

 

$

(31,985

)

 

$

(25,869

)

 

 

 

 

 

 

Net loss on GAAP basis

$

(49,121

)

 

$

(37,470

)

 

$

(40,817

)

Stock-based compensation and related employer payroll taxes

 

5,002

 

 

 

5,812

 

 

 

14,156

 

Legal settlements

 

 

 

 

(250

)

 

 

450

 

Amortization of acquisition-related intangible assets

 

96

 

 

 

110

 

 

 

96

 

Net loss on non-GAAP basis

$

(44,023

)

 

$

(31,798

)

 

$

(26,115

)

 

 

 

 

 

 

Net loss per share on GAAP basis

 

 

 

 

 

Basic and diluted

$

(0.25

)

 

$

(0.19

)

 

$

(0.22

)

Weighted-average shares on GAAP basis

 

 

 

 

 

Basic and diluted

 

198,166,060

 

 

 

197,385,362

 

 

 

189,222,807

 

Net loss per share on non-GAAP basis

 

 

 

 

 

Basic and diluted

$

(0.22

)

 

$

(0.16

)

 

$

(0.14

)

Weighted-average shares on non-GAAP basis

 

 

 

 

 

Basic and diluted

 

198,166,060

 

 

 

197,385,362

 

 

 

189,222,807

 

 

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