Successfully Passed Volvo Cars ‘Run at Rate’ Leading up to Start of Production
QoQ Free Cash Flow Improvement Demonstrates
Inflection Towards Profitability
Today Luminar (NASDAQ: LAZR), a leading global automotive
technology company, provided its quarterly business update and
financial results for the third quarter of 2023. The company
published a Letter to Shareholders on its Investor Relations
website at https://investors.luminartech.com.
“For the first time at Luminar, we are realizing an inflection
point in economies of scale and path to profitability,” said Austin
Russell, Founder & CEO. “We successfully passed the Run at Rate
production capacity and quality audit leading up to our first
global vehicle launch with Volvo Cars. In conjunction, we are
aggressively driving efficiency gains on free cash flow and gross
margin, which we expect to continue through Q4 and beyond.”
2023 Company-Level Milestone
Targets:
Luminar provided a progress report below on its three key
business milestone targets to achieve by year-end 2023.
1. Industrialization &
Scale
Year-end Goal: Bring the high volume, automated facility
in Mexico online and meet Volvo Cars start of production (SOP)
requirements.
Status: The company brought the high volume facility
online in 1H’23, and has now fulfilled Volvo Cars’ production
requirements for SOP new year by passing the Run at Rate.
- This quarter, Volvo Cars also completed its first installation
of Iris onto a Volvo EX90 off of the production line at its US
plant in Charleston.
2. Product and
Technology
Year-end Goal: Enter Iris+ C phase; complete software[1]
requirements for Volvo and Mercedes programs; develop a next-gen
LiDAR prototype.
Status: The company is on track to achieve each of these
goals.
- Luminar has now commenced the process of series production
tooling for Iris+ in partnership with TPK.
- Iris+ continues to go through optimization and validation
testing cycles from its lead series production OEM, which includes
DFM (design for manufacturability) updates.
- Luminar continues to deliver updates on its in-development
firmware and software products[1] to its OEM customers. The company
successfully integrated its software with Volvo and Zenseact’s
in-development system and middleware, while also integrating with
Mercedes’ data collection vehicles.
- Luminar has successfully developed its next-generation LiDAR
prototype in Q3, and provided live demonstrations of its point
cloud performance to key OEM customers.
3. Business Growth
Year-end Goal: Add at least $1 billion to the Order
Book.
Status: The company remains on track to achieve this
goal.
- Throughout 2023, Luminar has continued to sign deals across
hardware, software/AI, and semiconductors with new and existing
customers.
- The company has now entered into a multi-year series production
agreement with Gatik, the middle-mile autonomous logistics leader
for some of the largest retail companies, to standardize Luminar
products on autonomous light and medium-duty trucks.
Key Q3 2023 Financials:
In Q3’23, Luminar demonstrated a sharp improvement in both
non-GAAP free cash flow and gross margin on its path to
profitability. Luminar also met its Q3 guidance for non-GAAP EPS.
The company maintained a strong balance sheet for accelerating
business growth and reaching its profitability targets.
- Revenue: Q3 revenue was $17.0 million, up 33% compared
to Q3’22.
- GAAP and Non-GAAP Gross Margin: Q3 GAAP gross loss was
$18.2 million; Q3 Non-GAAP gross loss was $9.1 million, nearly
halfway to achieving our goal of gross margin profitability by
Q4’23 relative to Q2 levels.
- GAAP and Non-GAAP net loss: Q3 GAAP net loss was $134.3
million, or $(0.34) per share; Q3 Non-GAAP net loss was $84.1
million, or $(0.21) per share.
- Operating Cash Flow and Free Cash Flow: Net cash used in
operating activities was $(56.5) million. Free cash flow (operating
cash flow less capital expenditures) was $(60.8) million, roughly
halfway to our target of improving FCF by 50% by Q4’23 relative to
Q1/Q2 levels.
- Cash, Cash Equivalents and Marketable Securities:
Maintained strong cash position, including marketable securities,
of $321.0 million as of September 30, 2023.
2023 Financial Outlook:
Luminar provided more firm ranges and adjusted certain elements
of its 2023 financial guidance as follows.
- Revenue Growth: Luminar expects 2023 revenue of around
$75 million, or roughly 85% YoY growth.
- Gross Margin: The company expects to reach gross margin
positive on a non-GAAP basis in Q4’23.
- Cash, Cash Equivalents and Marketable Securities (including
Liquidity): The company continues to expect to end 2023 with a
balance of greater than $300 million, which we believe is
sufficient to reach profitability based on our current
trajectory.
- Free Cash Flow: Luminar continues to expect to reduce
its free cash flow spend by approximately 50% by year-end relative
to Q1/Q2 levels. Specifically, Luminar expects Q4 operating cash
flow in the range of $(30) million to ($35) million and free cash
flow in the range of $(35) million to $(40) million.
Webcast Details:
Founder and CEO Austin Russell and CFO Tom Fennimore will host a
video webcast, featuring a business update followed by a live
Q&A session.
- What: Video webcast featuring quarterly business update,
Q3 financials and live Q&A
- Date: Today, November 8, 2023
- Time: 2:00 p.m. PDT (5:00 p.m. EDT)
A live webcast of the event will be available on Luminar’s
investor site at https://luminartech.com/quarterlyreview. A replay
of the webcast will be available following the presentation. For
additional information or to be added to Luminar’s investor
distribution list, please visit us at https://investors.luminartech.com/ir-resources/email-alerts.
Footnote: [1]Luminar software capabilities are still in
development and have not achieved technological feasibility or
production ready status.
Non-GAAP Financial
Measures
In addition to disclosing financial measures prepared in
accordance with U.S. generally accepted accounting principles
(GAAP), this press release contains certain non-GAAP financial
measures and certain other metrics. Non-GAAP financial measures and
these other metrics do not have any standardized meaning and are
therefore unlikely to be comparable to similarly titled measures
and metrics presented by other companies. Luminar considers these
non-GAAP financial measures and metrics to be important because
they provide useful measures of the operating performance of the
Company, exclusive of factors that do not directly affect what we
consider to be our core operating performance, as well as unusual
events. The Company’s management uses these measures and metrics to
(i) illustrate underlying trends in the Company’s business that
could otherwise be masked by the effect of income or expenses that
are excluded from non-GAAP measures, and (ii) establish budgets and
operational goals for managing the Company’s business and
evaluating its performance. In addition, investors often use
similar measures to evaluate the operating performance of a
company. Non-GAAP financial measures and metrics are presented only
as supplemental information for purposes of understanding the
Company’s operating results. The non-GAAP financial measures and
metrics should not be considered a substitute for financial
information presented in accordance with GAAP.
This release includes non-GAAP financial measures, including
non-GAAP cost of sales, gross loss/gross profit, net loss and Free
Cash Flow. Non-GAAP cost of sales is defined as GAAP cost of sales
adjusted for stock-based compensation expense, amortization of
intangible assets, and accelerated depreciation related to certain
property, plant and equipment items. Non-GAAP gross loss/gross
profit is defined as GAAP gross loss/gross profit adjusted for
stock-based compensation expense, amortization of intangible
assets, and accelerated depreciation related to certain property,
plant and equipment items. Non-GAAP net loss is defined as GAAP net
loss adjusted for stock-based compensation expense, amortization of
intangible assets, accelerated depreciation related to certain
property, plant and equipment items, legal reserve related to
employee matters, transaction costs relating to acquisition
activities, change in fair value of warrant liabilities, and
provision for income taxes. Free Cash Flow is defined as operating
cash flow less capital expenditures. We use “Order Book” as a
metric to measure performance against anticipated achievement of
planned key milestones of our business. Order Book is defined as
the forward-looking cumulative billings estimate of Luminar’s
hardware and software products over the lifetime of given vehicle
production programs which Luminar’s technology is expected to be
integrated into or provided for, based primarily on projected /
actual contractual pricing terms and our good faith estimates of
“take rate” of Luminar’s technology on vehicles. “Take rates” are
the anticipated percentage of new vehicles to be equipped with
Luminar’s technology based on a combination of original equipment
manufacturer (“OEM”) product offering decisions and predicted end
consumer purchasing decisions. We include programs in our Order
Book when (a) we have obtained a written agreement (e.g.
non-binding expression of interest arrangement or an agreement for
non-recurring engineering project) or public announcement with a
major industry player, and (b) we expect to ultimately be awarded a
significant commercial program. We believe Order Book provides
useful information to investors as a supplemental performance
metric as our products are currently in a pre-production stage and
therefore there are currently no billings or revenues from
commercial grade product sales. OEMs customarily place
non-cancelable purchase orders with their automotive component
suppliers only shortly before or during production. Consequently,
we use Order Book to inform investors about the progress of
expected adoption of our technologies by OEMs because there is, in
our view, no other better metric available at our stage. The Order
Book estimate may be impacted by various factors, as described in
“Risk Factors” in Item 1A of Part I of our Annual Report on Form
10-K for the fiscal year ended December 31, 2022 and subsequent
filings with the Securities and Exchange Commission, including, but
not limited to the following: (i) None of our customers make
contractual commitments to use our lidar sensors and software until
all test and validation activities have been completed, they have
finalized plans for integrating our systems, have a positive
expectation of the market demand for our features, and unrelated to
us, have determined that their vehicle is ready for market and
there is appropriate consumer demand. Consequently, there is no
assurance or guarantee that any of our customers, including any
programs which we included in our Order Book estimates will ever
complete such testing and validation or enter into a definitive
volume production agreement with us or that we will receive any
billings or revenues forecasted in connection with such programs;
(ii) The development cycles of our products with new customers vary
widely depending on the application, market, customer and the
complexity of the product. In the automotive market, for example,
this development cycle can be as long as seven or more years.
Variability in development cycles make it difficult to reliably
estimate the pricing, volume or timing of purchases of our products
by our customers; (iii) Customers cancel or postpone implementation
of our technology; (iv) We may not be able to integrate our
technology successfully into a larger system with other sensing
modalities; and (v) The product or vehicle model that is expected
to include our lidar products may be unsuccessful, including for
reasons unrelated to our technology. These risks and uncertainties
may cause our future actual sales to be materially different than
that implied by the Order Book metric.
Forward-Looking
Statements
Certain statements included in this press release that are not
historical facts are forward-looking statements for purposes of the
safe harbor provisions under the Private Securities Litigation
Reform Act of 1995. Forward-looking statements generally are
accompanied by words such as “aims,” “believe,” “may,” “will,”
“estimate,” “set,” “continue,” “towards,” “anticipate,” “intend,”
“expect,” “should,” “would,” “forward,” and similar expressions
that predict or indicate future events or trends or that are not
statements of historical matters. These forward-looking statements
include, but are not limited to, statements regarding expected
achievement and timing of manufacturing scale up, OEM production
readiness, next-gen lidar prototype development, continued software
development, program milestones and Order Book growth, and expected
financial performance and position metrics. These statements are
based on various assumptions, whether or not identified in this
press release, and on the current expectations of Luminar’s
management and are not guarantees of actual performance.
Forward-looking statements are subject to a number of risks and
uncertainties that could cause actual results to differ materially
from the forward-looking statements, including the risks discussed
in the “Risk Factors,” and “Management’s Discussion and Analysis of
Financial Condition and Results of Operations'' sections of
Luminar’s most recently filed periodic reports on Form 10-K and
Form 10-Q, and other documents Luminar files with the SEC in the
future. You are cautioned not to place undue reliance upon any
forward-looking statements, which speak only as of the date made,
and Luminar undertakes no obligation to update any forward-looking
statement to reflect events or circumstances after the date of this
press release.
About Luminar
Luminar is a global automotive technology company ushering in a
new era of vehicle safety and autonomy. For the past decade,
Luminar has built an advanced hardware and software platform to
enable its more than 50 industry partners, including the majority
of global automotive OEMs. From Volvo Cars and Mercedes-Benz for
consumer vehicles and Daimler Trucks for commercial trucks, to tech
partners NVIDIA and Mobileye, Luminar is poised to be the first
automotive technology company to enable next-generation safety and
autonomous capabilities for production vehicles. For more
information please visit www.luminartech.com.
LUMINAR TECHNOLOGIES, INC. AND
SUBSIDIARIES
Condensed Consolidated Balance
Sheets
(In thousands)
September 30, 2023
December 31, 2022
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents
$
74,723
$
69,552
Restricted cash
3,465
1,553
Marketable securities
246,242
419,314
Accounts receivable
18,903
11,172
Inventory
16,698
8,792
Prepaid expenses and other current
assets
29,389
44,203
Total current assets
389,420
554,586
Property and equipment, net
72,647
30,260
Operating lease right-of-use assets
19,660
21,244
Intangible assets, net
27,059
22,077
Goodwill
19,879
18,816
Other non-current assets
24,213
40,344
Total assets
$
552,878
$
687,327
LIABILITIES AND STOCKHOLDERS’
DEFICIT
Current liabilities:
Accounts payable
$
20,732
$
18,626
Accrued and other current liabilities
58,489
52,962
Operating lease liabilities
6,475
5,953
Total current liabilities
85,696
77,541
Warrant liabilities
1,660
3,005
Convertible senior notes
614,619
612,192
Operating lease liabilities,
non-current
15,551
16,989
Other non-current liabilities
1,017
4,005
Total liabilities
718,543
713,732
Stockholders’ deficit:
Class A common stock
32
29
Class B common stock
10
10
Additional paid-in capital
1,838,299
1,558,685
Accumulated other comprehensive loss
(235
)
(4,226
)
Treasury stock
(312,477
)
(312,477
)
Accumulated deficit
(1,691,294
)
(1,268,426
)
Total stockholders’ deficit
(165,665
)
(26,405
)
Total liabilities and stockholders’
deficit
$
552,878
$
687,327
LUMINAR TECHNOLOGIES, 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,
2023
2022
2023
2022
Revenue:
Products
$
10,753
$
6,796
$
28,043
$
10,135
Services
6,206
5,989
19,622
19,437
Total revenue
16,959
12,785
47,665
29,572
Cost of sales:
Products
27,273
18,364
71,535
47,169
Services
7,846
10,147
27,249
26,088
Total cost of sales
35,119
28,511
98,784
73,257
Gross loss
(18,160
)
(15,726
)
(51,119
)
(43,685
)
Operating expenses:
Research and development
62,937
46,308
199,472
120,358
Sales and marketing
12,397
10,111
41,780
26,698
General and administrative
35,435
42,809
122,345
110,984
Total operating expenses
110,769
99,228
363,597
258,040
Loss from operations
(128,929
)
(114,954
)
(414,716
)
(301,725
)
Other income (expense), net:
Change in fair value of warrant
liabilities
2,373
(1,231
)
1,345
6,645
Interest expense
(2,779
)
(2,660
)
(5,717
)
(9,088
)
Interest income
1,260
1,553
4,770
3,970
Other income (expense)
(5,967
)
(83
)
(8,245
)
(358
)
Total other income (expense), net
(5,113
)
(2,421
)
(7,847
)
1,169
Loss before provision for income taxes
(134,042
)
(117,375
)
(422,563
)
(300,556
)
Provision for income taxes
296
175
305
566
Net loss
$
(134,338
)
$
(117,550
)
$
(422,868
)
$
(301,122
)
Net loss per share:
Basic and diluted
$
(0.34
)
$
(0.33
)
$
(1.11
)
$
(0.85
)
Shares used in computing net loss per
share:
Basic and diluted
394,591,942
359,753,254
382,673,871
353,537,754
LUMINAR TECHNOLOGIES, INC. AND
SUBSIDIARIES
Condensed Consolidated
Statements of Cash Flows
(In thousands)
(Unaudited)
Nine Months Ended September
30,
2023
2022
Cash flows from operating
activities:
Net loss
$
(422,868
)
$
(301,122
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
19,468
4,374
Amortization of operating lease
right-of-use assets
5,095
3,531
Amortization of premium (discount) on
marketable securities
(3,952
)
1,111
Loss on marketable securities
7,774
—
Change in fair value of private
warrants
(1,345
)
(6,645
)
Vendor stock-in lieu of cash program
31,487
32,487
Amortization of debt discount and issuance
costs
2,427
2,427
Inventory write-offs and write downs
17,343
8,750
Share-based compensation
160,031
117,874
Loss on investment in non-marketable
securities
2,141
—
Product warranty and other
4,273
(623
)
Changes in operating assets and
liabilities:
Accounts receivable
(7,729
)
6,457
Inventories
(25,249
)
(6,648
)
Prepaid expenses and other current
assets
10,858
(4,685
)
Other non-current assets
(3,458
)
(1,371
)
Accounts payable
4,018
8,379
Accrued and other current liabilities
14,379
5,716
Other non-current liabilities
(9,219
)
(3,571
)
Net cash used in operating activities
(194,526
)
(133,559
)
Cash flows from investing
activities:
Acquisition of Freedom Photonics LLC (net
of cash acquired)
—
(2,759
)
Acquisition of certain assets from Solfice
Research, Inc.
—
(2,001
)
Acquisition of Seagate's lidar
business
(12,608
)
—
Purchases of marketable securities
(269,164
)
(363,906
)
Proceeds from maturities of marketable
securities
390,836
254,068
Proceeds from sales/redemptions of
marketable securities
51,569
68,804
Purchases of property and equipment
(21,129
)
(11,277
)
Advances for capital projects and
equipment
—
(2,009
)
Net cash provided by (used in) investing
activities
139,504
(59,080
)
Cash flows from financing
activities:
Net proceeds from issuance of Class A
common stock under the Equity Financing Program
38,711
—
Proceeds from issuance of Class A common
stock to a wholly owned subsidiary of TPK
20,000
—
Proceeds from exercise of stock
options
2,560
2,891
Proceeds from sale of Class A common stock
under ESPP
1,406
—
Payments of employee taxes related to
stock-based awards
(572
)
(2,773
)
Repurchase of common stock
—
(80,878
)
Net cash provided by (used in) financing
activities
62,105
(80,760
)
Net increase (decrease) in cash, cash
equivalents and restricted cash
7,083
(273,399
)
Beginning cash, cash equivalents and
restricted cash
71,105
330,702
Ending cash, cash equivalents and
restricted cash
$
78,188
$
57,303
LUMINAR TECHNOLOGIES, INC. AND
SUBSIDIARIES
Reconciliation of GAAP Cost of
Sales to Non-GAAP Cost of Sales
(In thousands)
(Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
GAAP cost of sales
$
35,119
$
28,511
$
98,784
$
73,257
Non-GAAP adjustments:
Stock-based compensation
(2,255
)
(5,430
)
(6,842
)
(14,205
)
Amortization of intangible assets
(166
)
(166
)
(497
)
(469
)
Accelerated depreciation related to
certain property, plant and equipment items
(6,647
)
—
(6,647
)
—
Non-GAAP cost of sales
$
26,051
$
22,915
$
84,798
$
58,583
LUMINAR TECHNOLOGIES, INC. AND
SUBSIDIARIES
Reconciliation of GAAP Gross
Loss to Non-GAAP Gross Loss
(In thousands)
(Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
GAAP gross loss
$
(18,160
)
$
(15,726
)
$
(51,119
)
$
(43,685
)
Non-GAAP adjustments:
Stock-based compensation
2,255
5,430
6,842
14,205
Amortization of intangible assets
166
166
497
469
Accelerated depreciation related to
certain property, plant and equipment items
6,647
—
6,647
—
Non-GAAP gross loss
$
(9,092
)
$
(10,130
)
$
(37,133
)
$
(29,011
)
LUMINAR TECHNOLOGIES, INC. AND
SUBSIDIARIES
Reconciliation of GAAP Net
Loss to Non-GAAP Net Loss
(In thousands, except share
and per share data)
(Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
GAAP net loss
$
(134,338
)
$
(117,550
)
$
(422,868
)
$
(301,122
)
Non-GAAP adjustments:
Stock-based compensation
44,882
52,551
160,031
117,874
Amortization of intangible assets
1,098
690
3,258
1,546
Accelerated depreciation related to
certain property, plant and equipment items
6,647
—
6,647
—
Legal reserve related to employee
matters
—
—
—
2,000
Transaction costs relating to acquisition
activities
17
(274
)
53
1,763
Change in fair value of warrant
liabilities
(2,373
)
1,231
(1,345
)
(6,645
)
Provision for income taxes
—
—
—
165
Non-GAAP net loss
$
(84,067
)
$
(63,352
)
$
(254,224
)
$
(184,419
)
GAAP net loss per share:
Basic and diluted
$
(0.34
)
$
(0.33
)
$
(1.11
)
$
(0.85
)
Non-GAAP net loss per share:
Basic and diluted
$
(0.21
)
$
(0.18
)
$
(0.66
)
$
(0.52
)
Shares used in computing GAAP net loss per
share:
Basic and diluted
394,591,942
359,753,254
382,673,871
353,537,754
Shares used in computing Non-GAAP net loss
per share:
Basic and diluted
394,591,942
359,753,254
382,673,871
353,537,754
LUMINAR TECHNOLOGIES, INC. AND
SUBSIDIARIES
Reconciliation of GAAP
Operating Cash Flow to Non-GAAP Free Cash Flow
(In thousands)
(Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
GAAP operating cash flow
$
(56,543
)
$
(48,361
)
$
(194,526
)
$
(133,559
)
Non-GAAP adjustments:
Capital expenditure:
Purchases of property and equipment
(4,298
)
(3,786
)
(21,129
)
(11,277
)
Advances for capital projects and
equipment
—
(336
)
—
(2,009
)
Non-GAAP free cash flow
$
(60,841
)
$
(52,483
)
$
(215,655
)
$
(146,845
)
LUMINAR TECHNOLOGIES, INC. AND
SUBSIDIARIES
Summary of Stock-Based
Compensation and Intangibles Amortization
(In thousands)
(Unaudited)
Three Months Ended September
30,
2023
2022
Stock-Based
Compensation
Intangibles
Amortization
Stock-Based
Compensation
Intangibles
Amortization
Cost of Sales
$
2,255
$
166
$
5,430
$
166
Research and development
12,886
599
11,326
192
Sales and marketing
6,536
333
3,821
332
General and administrative
23,205
—
31,974
—
Total
$
44,882
$
1,098
$
52,551
$
690
Nine Months Ended September
30,
2023
2022
Stock-Based
Compensation
Intangibles
Amortization
Stock-Based
Compensation
Intangibles
Amortization
Cost of Sales
$
6,842
$
497
$
14,205
$
469
Research and development
50,898
1,762
27,142
393
Sales and marketing
22,156
999
9,430
684
General and administrative
80,135
—
67,097
—
Total
$
160,031
$
3,258
$
117,874
$
1,546
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231108432302/en/
Media Relations: Milin Mehta Press@luminartech.com
Investor Relations: Aileen Smith Investors@luminartech.com
Luminar Technologies (NASDAQ:LAZR)
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Luminar Technologies (NASDAQ:LAZR)
Graphique Historique de l'Action
De Nov 2023 à Nov 2024