Deutsche Bank Global Auto Industry Conference
Business and Financial Metrics
“We 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. On the software side, on
Since the company’s earnings call in May, Velodyne announced multiple key business developments and operational developments which affirm the company’s ongoing success and support its long-term outlook:
Financial Highlights
A reconciliation between historical GAAP and non-GAAP information is provided in the tables below.
Business Outlook and 2021 Guidance
As of the end of the second quarter, Velodyne estimates that it could have the opportunity for over
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
For the full year of 2021,
Conference Call Information
Velodyne will host a conference call and live webcast for analysts and investors at
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 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; the rate and degree of market acceptance of Velodyne Lidar’s products; 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
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.
Non-GAAP Financial Measures
In addition to our results determined in accordance with generally accepted accounting principles in
About
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) |
|||||||||
|
|
|
|
||||||
|
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 |
|
|
||
|
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 Stockholders’ 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 |
|
|
|
||||||
Stockholders’ equity: |
|
|
|
||||||
Preferred stock |
— |
|
|
|
— |
|
|
||
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 stockholders’ equity |
364,243 |
|
|
|
340,823 |
|
|
||
Total liabilities and stockholders’ equity |
$ |
436,597 |
|
|
|
$ |
432,712 |
|
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share data) (Unaudited) |
||||||||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
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 |
— |
|
|
|
— |
|
|
|
(3 |
) |
|
|
— |
|
|
|
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 |
|
|
|||||
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) |
|||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||
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 |
|
|
|
— |
|
|
|
1,533 |
|
|
|
— |
|
|
||||
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 |
) |
|
|
— |
|
|
|
(10,124 |
) |
|
|
— |
|
|
||||
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 |
— |
|
|
|
(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 |
— |
|
|
|
— |
|
|
|
2,000 |
|
|
|
— |
|
|
||||
Proceeds from maturities of short-term investments |
48,943 |
|
|
|
— |
|
|
|
55,943 |
|
|
|
2,200 |
|
|
||||
Purchase of short-term investments |
(98,444 |
) |
|
|
— |
|
|
|
(190,376 |
) |
|
|
— |
|
|
||||
Investment in notes receivable |
(750 |
) |
|
|
— |
|
|
|
(750 |
) |
|
|
— |
|
|
||||
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 |
— |
|
|
|
19,919 |
|
|
|
— |
|
|
|
19,919 |
|
|
||||
Payment of transaction costs related to Business Combination |
1 |
|
|
|
— |
|
|
|
(20,005 |
) |
|
|
— |
|
|
||||
Proceeds from warrant exercises |
22 |
|
|
|
— |
|
|
|
89,244 |
|
|
|
— |
|
|
||||
Tax withholding payment for vested equity awards |
— |
|
|
|
— |
|
|
|
(37 |
) |
|
|
— |
|
|
||||
Cash paid for IPO costs |
— |
|
|
|
(537 |
) |
|
|
— |
|
|
|
(1,196 |
) |
|
||||
Proceeds from notes payable |
— |
|
|
|
10,000 |
|
|
|
— |
|
|
|
10,000 |
|
|
||||
Net cash provided by 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 |
|
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In thousands, except share and per share data) (Unaudited) |
||||||||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||||||||||
|
|
|
|
|
|
|
2021 |
|
|
|||||||||||||||
Gross profit (loss) on GAAP basis |
$ |
(5,784 |
) |
|
|
$ |
1,918 |
|
|
|
$ |
13,886 |
|
|
|
$ |
(3,866 |
) |
|
|
$ |
15,488 |
|
|
Gross margin on GAAP basis |
(43 |
) |
% |
|
(30 |
) |
% |
|
82 |
|
% |
|
(30 |
) |
% |
|
34 |
|
% |
|||||
Stock-based compensation and related employer payroll taxes |
451 |
|
|
|
811 |
|
|
|
— |
|
|
|
1,262 |
|
|
|
— |
|
|
|||||
Gross profit (loss) on non-GAAP basis |
$ |
(5,333 |
) |
|
|
$ |
2,729 |
|
|
|
$ |
13,886 |
|
|
|
$ |
(2,604 |
) |
|
|
$ |
15,488 |
|
|
Gross margin on non-GAAP basis |
(39 |
) |
% |
|
15 |
|
% |
|
82 |
|
% |
|
(8 |
) |
% |
|
34 |
|
% |
|||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
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 |
— |
|
|
|
— |
|
|
|
3 |
|
|
|
— |
|
|
|
(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 |
— |
|
|
|
— |
|
|
|
(3 |
) |
|
|
— |
|
|
|
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 |
) |
|
|
— |
|
|
|
— |
|
|
|
(10,124 |
) |
|
|
— |
|
|
|||||
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 |
— |
|
|
|
— |
|
|
|
(7 |
) |
|
|
— |
|
|
|
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 |
— |
|
|
|
— |
|
|
|
(3 |
) |
|
|
— |
|
|
|
1,043 |
|
|
|||||
Gain from forgiveness of notes payable |
(10,124 |
) |
|
|
— |
|
|
|
— |
|
|
|
(10,124 |
) |
|
|
— |
|
|
|||||
Non-GAAP tax reconciling adjustments |
— |
|
|
|
— |
|
|
|
7 |
|
|
|
— |
|
|
|
(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 |
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20210805006048/en/
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