Q3’24 Business Update November 2024 © 2024 Luminar Technologies, Inc. All rights reserved. | 2 Luminar Creating advanced LiDAR and software[1] to enable the world’s safest and smartest vehicles. Please refer to Footnotes on page 37 for more detail. © 2024 Luminar Technologies, Inc. All rights reserved. | 3 Forward-looking statements This presentation of Luminar technologies, inc. (“Luminar” or the “company”) includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the U.S. Private securities litigation reform act of 1995. Forward-looking statements may be identified by the use of words such as “future,” “growth,” “opportunity,” “well-positioned,” "forecast," "intend," "seek," "target," “anticipate,” “believe,” “expect,” “estimate,” “plan,” “outlook,” and “project” and other 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 whether next generation sensors and software will be developed successfully or will accelerate automaker adoption, whether new automaker agreements will develop successfully into product launches, whether cost reduction efforts will continue to result in improved operational and financial efficiency, including projected free cash flow generation, expected achievement and timing of manufacturing scale up, OEM production readiness, next-gen LiDAR prototype development, continued software and AI development and performance, program milestones, Order Book growth, expected milestones, market size estimates, product efficacy, near-term priorities, including plans to ramp production and ramp down costs, operating expenses and cost of sales, and the financial guidance for Q4 2024. These statements are based on various assumptions, whether or not identified in this presentation, and on the current expectations of Luminar’s management and are not guarantees of actual performance. You are cautioned not to place undue reliance upon any forward-looking statements, including the projections, which speak only as of the date made. Luminar does not undertake any commitment to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. Accordingly, forward-looking statements, including any projections or analysis, should not be viewed as factual and should not be relied upon as an accurate prediction of future results. The forward-looking statements contained in this presentation are based on the company’s current expectations and beliefs concerning future developments and their potential effects on Luminar. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control), or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. 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. Should one or more of these risks or uncertainties materialize, or should any of management’s assumptions prove incorrect, actual results may vary in material respects from those projected in these forward- looking statements. Luminar does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. Accordingly, you should not put undue reliance on these statements. Trademarks and trade names Luminar owns or has rights to various trademarks, service marks and trade names that it uses in connection with the operation of its business. This presentation also contains trademarks, service marks and trade names of third parties, which are the property of their respective owners. The use or display of third parties’ trademarks, service marks, trade names or products in this presentation is not intended in, and does not imply, a relationship with Luminar, or an endorsement or sponsorship by or of Luminar. Solely for convenience, the trademarks, service marks and trade names referred to in this presentation may appear without the ®, TM or SM symbols, but such references are not intended to indicate, in any way, that Luminar will not assert, to the fullest extent under applicable law, its rights or the right of the applicable licensor in these trademarks, service marks and trade names. Industry and market data In this presentation, Luminar relies on and refers to information and statistics regarding the sectors in which Luminar competes and other industry data. Luminar obtained this information and statistics from third- party sources, including reports by market research firms. Although Luminar believes these sources are reliable, the company has not independently verified the information and does not guarantee its accuracy and completeness. Luminar has supplemented this information where necessary with information from discussions with Luminar customers and Luminar’s own internal estimates, taking into account publicly available information about other industry participants and Luminar’s management’s best view as to information that is not publicly available. Notice of late filing Luminar expects to file a notification of late filing on Form 12b-25 with the SEC, which will provide an automatic 5-day extension of the filing deadline for its Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2024 (the “Quarterly Report”), to November 18, 2024. Luminar requires additional time to complete the quarter-end review due to the complexity of the analysis relating to the previously announced convertible notes exchange transaction consummated in August 2024. Luminar expects to file the Quarterly Report as soon as practicable within the 5-day extension period. Disclaimer & Cautionary Note © 2024 Luminar Technologies, Inc. All rights reserved. | 4 Use of non-GAAP financial measures The financial information and data contained in this presentation is unaudited and does not conform to regulation S-X promulgated under the securities act of 1933, as amended. Accordingly, such information and data may not be included in, may be adjusted in or may be presented differently in, any filing Luminar makes with the SEC. Luminar has not filed its Form 10-Q for the quarter ended September 30, 2024. As a result, all financial results described in this presentation should be considered preliminary, and are subject to change to reflect any necessary adjustments or changes in accounting estimates, that are identified prior to the time that Luminar files its Form 10-Q. In addition to disclosing financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), this presentation 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 presentation includes non-GAAP financial measures, including non-GAAP cost of sales, gross loss/gross profit, operating expenses, net loss, EPS and Free Cash Flow. Non-GAAP cost of sales is defined as GAAP cost of sales adjusted for stock-based compensation expense and amortization of intangible assets. Non-GAAP gross loss/gross profit is defined as GAAP gross loss/gross profit adjusted for stock-based compensation expense and amortization of intangible assets. Non-GAAP operating expenses is defined as GAAP operating expenses adjusted for stock-based compensation expense, amortization of intangible assets, impairment of goodwill and intangible assets, and transaction costs relating to acquisition activities. 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, impairment of goodwill and intangible assets, gain on extinguishment of debt, impairment of investments, restructuring costs, gain from certain acquisitions, transaction costs relating to acquisition activities, change in fair value of embedded derivative, and change in fair value of warrant liabilities. Non-GAAP EPS is defined as Non-GAAP net loss divided by weighted average shares outstanding for the period. 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, 2023 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. Disclaimer & Cautionary Note
© 2024 Luminar Technologies, Inc. All rights reserved. | 5 Q3’24 Business Update © 2024 Luminar Technologies, Inc. All rights reserved. | 6 Q3'24 BUSINESS UPDATE Luminar Announces Expansions With 2 Global OEMs Shortly after the quarter, a major Japanese OEM expanded its Advanced Development Contract with Luminar The new agreement includes continued collaboration on the OEM’s next-generation system using Luminar’s LiDAR, as well as paid development of new software capabilities This highlights Luminar’s role as a key enabler for next-gen automotive systems, demonstrating our leadership in both LiDAR and software. We expect to share additional information in the first half of 2025 With the EX90 now being delivered to customers, Volvo is expanding their business with Luminar Luminar has been selected to be featured as standard equipment on an additional vehicle model in Volvo Cars line-up This demonstrates Volvo's commitment to safety, endorsing Luminar’s leadership in LiDAR and ability to execute and industrialize in scale We continue to meet all key deliverables for the global EX90 production ramp, shipping more sensors in Q3 than the past three quarters combined Volvo & Japanese automaker announcements prove our ability to execute and expand A Major Japanese Automaker Volvo Cars © 2024 Luminar Technologies, Inc. All rights reserved. | 7 Q3'24 BUSINESS UPDATE Cost Actions Update In Sept ‘24, we took additional cost-saving actions under our Restructuring Plan, including reductions to our non-technical workforce. We expect these actions, along with other cost-saving measures to take place over the coming quarters, to generate ~$80M in annual cash savings on a run-rate basis. These expected savings are incremental to actions announced in conjunction with our expanded partnership with TPK in May ’24. Our Q3 results show early returns from our cost savings measures; we expect to see continued improvement in Q4 as we realize the benefits of actions taken in September. Cost Actions Summary Our cost actions are not expected to adversely impact our technical milestones, customer programs, or product deliverables in any material respect Please refer to Footnotes on page 37 for more detail. Quarterly GAAP Operating Cash Flow ($M) Quarterly Non-GAAP[2] Free Cash Flow [3] ($M) Savings Realized Savings Realized $81 $78 $56 $50 $55 $60 $65 $70 $75 $80 $85 Q1'24 Q2'24 Q3'24 $83 $78 $58 $50 $55 $60 $65 $70 $75 $80 $85 Q1'24 Q2'24 Q3'24 © 2024 Luminar Technologies, Inc. All rights reserved. | 8 Q3'24 BUSINESS UPDATE First Point Cloud Generated by Luminar Halo In Q3’24, we generated our first Point Cloud with Luminar Halo, achieving a critical milestone on the program. This demonstrates industry-leading long range LiDAR data fidelity for improved safety and autonomous capabilities. While Iris was designed to kick off a new era of safety and autonomy, Luminar Halo is designed to accelerate it to mass adoption with improved size and cost. Luminar is leveraging prior R&D investment and learnings from industrializing Iris to develop Luminar Halo at unprecedented cost and efficiency. Luminar's Technical Campus in Orlando, Florida
© 2024 Luminar Technologies, Inc. All rights reserved. | 9 Q3'24 BUSINESS UPDATE 2024 Year-End Milestones Pass final Run at Rate production audit ahead of Volvo SOP; Achieve global SOP & ramp with Volvo Status: Achieved. Luminar passed the final Run at Rate production audit ahead of Volvo SOP Status: Achieved. Luminar achieved Start of Production with Volvo in Q2, and continues to ramp production while meeting all of Volvo's key deliverables Launch TPK facility for additional capacity and improved cost Status: Achieved. In April 2024 we launched an expanded partnership with TPK to substantially reduce cost of industrialization. Subsequently, we announced a workforce reduction of roughly 20% as we transitioned to a more asset-light model Unveil next-generation LiDAR; Deliver samples to customers Status: Achieved. Luminar Halo was unveiled on Luminar Day in April ‘24 Status: On Track. Luminar is on track for sample deliveries to select customers by year-end Expand ecosystem around LiDAR (e.g. Semiconductors, Software, Insurance). Status: On track. Luminar continues to build an ecosystem around its LiDAR technology to grow and capture value In Q3, we finalized the partnership with our primary insurer for Luminar’s consumer insurance program. In addition, we finalized the design of the customer experience within our insurance app, which has been well received by distribution partners 1 2 3 4 CONFIDENTIAL | © 2023 Luminar Technologies, Inc. All rights reserved. | 10 Luminar Overview annual fatalities from vehicle collisions globally 1.2 million of us will tragically lose our life in a car crash 1 in 100 © 2024 Luminar Technologies, Inc. All rights reserved. | 11 STATE OF THE INDUSTRY What’s the Problem? We need a step change in ADAS & AV technology to make a true impact and save lives. estimated to be paid annually to global automotive insurance companies by 2027 $1 trillion Sources: WHO, NHTSA (Data as of 2019), NSC (US Data), Allied Market Research (Data as of 2020). OVERVIEW Luminar is the Established Leader for LiDAR Rapid Growth © 2024 Luminar Technologies, Inc. All rights reserved. | 12 2012-2021 2021-2022 2022-2023 2024 Swiss Re Partnership Luminar Halo Announced Volvo EX90 Launched Plus Trucking Partnership Iris+ Announced Founded by Austin Russell Polestar Partnership Pony.ai Partnership Hydra Launched Volvo Partnership Nissan Partnership Model G Launched Scale.ai Partnership Sentinel Software TM Launch[1] Mercedes-Benz Partnership Iris Announced Please refer to Footnotes on page 37 for more detail.
Transceiver LiDAR Systems Semiconductors Series Production Platform Partners OEM Partners Insurance Software Stack Luminar’s competitive moat is reinforced by our end-to-end ecosystem OVERVIEW Software[1] enables LiDAR’s performance & increase stickiness with customers. LiDAR systems deliver unparalleled performance with pathway to scale & economics. Semiconductors unlock product architecture & performance. DEVELOPED BY © 2024 Luminar Technologies, Inc. All rights reserved. | 13Please refer to Footnotes on page 37 for more detail. Next-Gen ADAS & AV is Coming L2+ L3 & Beyond To improve safety performance versus Camera/RADAR LiDAR useful for L2+ Estimated ADAS & AV LiDAR TAM* in 2030 ~197M Unit TAM © 2024 Luminar Technologies, Inc. All rights reserved. | 14 LIDAR’S ADVANTAGE What’s the LiDAR Opportunity? To provide reliable 3-D context & object detection for safe autonomy, along with upgrade optionality from L2+ LiDAR required for L3 & Beyond Note: *Estimated TAM of LiDAR in ADAS Applications by 2030 according to Frost & Sullivan. For Autonomy Camera infers a 3-D model from a 2-D image; RADAR struggles with detection, particularly at distance. This means camera/RADAR have unreliable object detection & distance measurement to enable autonomy. LiDAR provides most reliable 3-D context & object detection, broad sensor utility, and functional availability in all driving scenarios & conditions to enable autonomy. LiDAR also introduces redundancy with other sensors. For Safety Vehicles with current camera/RADAR systems experienced collisions in 70% of pedestrian AEB scenarios*. Safety regulations are getting increasingly tough. 0% of camera/RADAR systems today appear equipped to meet tougher safety standards. LiDAR introduces reliable object detection & distance measurement to reduce collisions and avoid false positives. LIDAR’S ADVANTAGE Why LiDAR? Luminar LiDAR Sources: *IIHS, AAA. © 2024 Luminar Technologies, Inc. All rights reserved. | 15 LIDAR’S ADVANTAGE Swiss Re: Luminar LiDAR Proven to Improve Safety © 2024 Luminar Technologies, Inc. All rights reserved. | 16 "Our results show that the Luminar system-equipped vehicle is expected to avoid up to 25% more collisions than the same vehicle without the Luminar equipment and it is expected to enhance the mitigation power by up to 29%. Compared to the two best vehicles in Swiss Re's benchmark the difference in expected frequency is up to 27%, while in mitigation power it is up to 40% . This means that the Luminar- equipped vehicle is expected to avoid more collisions as well as decrease the impact of collisions when they happen." Luminar Equipped Vehicles Note: For more detail, see Swiss Re’s report HERE, published April 24, 2024.
© 2024 Luminar Technologies, Inc. All rights reserved. | 17 Industry is focused on replacing the driver. Billions spent in efforts to replace the driver with no near-term reliable solution in sight. The Vision The Reality Differentiated Approach to Driving the AV Future Photo Credit: The San Francisco Standard (L), ABC 15 Arizona (R). LUMINAR’S ADVANTAGE © 2024 Luminar Technologies, Inc. All rights reserved. | 18 Luminar’s strategy is to Enhance the driver. We are the first and only LiDAR technology made standard on a global production vehicle. Differentiated Approach to Driving the AV Future LUMINAR’S ADVANTAGE Hybrid VehicleInternal Combustion Electric Vehicle Luminar is currently planned into Programs Across All Major Powertrains © 2024 Luminar Technologies, Inc. All rights reserved. | 19 LUMINAR’S ADVANTAGE Luminar & LiDAR are Powertrain Agnostic © 2024 Luminar Technologies, Inc. All rights reserved. | 20 LUMINAR’S ADVANTAGE Why Luminar? Others Path of Least Resistance Product decisions were made to 1. Get to market as fast as possible 2. Use off-the-shelf components Standard technology is not developed to meet the long-term application of safe autonomy. Luminar Path of Most Performance Product decisions were made to meet the needs of highway speed autonomy and maximum safety. These needs required custom component development from the chip-level up and supply chain development to achieve performance, scale, and economics.
© 2024 Luminar Technologies, Inc. All rights reserved. | 21 LUMINAR’S ADVANTAGE Why 1550nm? To deliver safe highway speed autonomy Range x Resolution is required. 905nm wavelength operates closer to that visible by human eye & can cause eye damage. 1550nm can output more power than 905nm while remaining eye safe. 1550nm emits on average 17x more photons into environment than 905nm. 17x photon budget = Better Range x Resolution 1550nm has more robust performance across solar & weather conditions. 200m 100m 50m 905nm Peer A 905nm Peer B 1550nm Luminar Birds Eye Point Cloud Illustration of Luminar versus 905nm Peers Points/Frame @ >50m 1.6K Points/Frame @ >50m 5.6K Points/Frame @ >50m 21.4K © 2024 Luminar Technologies, Inc. All rights reserved. | 22 Our Foundational Technology Moat LUMINAR’S ADVANTAGE Laser & Laser Chip ASIC Receiver 81 Engineers 46 PhDs & M.Engs Gen 4 laser chip (InP) 5th gen receiver chip (InGaAs) Laser driver chip (Si) Custom developed components from Luminar Semiconductor, Inc. 5th gen signal processing chip (Si) Luminar’s LiDAR leverages highly specialized components developed by Luminar Semiconductor Inc to: Enable performance and lower supply chain cost Enhance competitive moat Accelerate pace of innovation © 2024 Luminar Technologies, Inc. All rights reserved. | 23 Iris Family Built for Series Production 2022 Luminar Halo Built for Scale & Mass Adoption 2026 Model G-Series Built for Proof of Concept 2017 Hydra Built for Test & Development 2019 Technology Roadmap to Mass Adoption LUMINAR’S ADVANTAGE © 2024 Luminar Technologies, Inc. All rights reserved. | 24 2020 Estimated number of LiDAR efforts >100 Now LiDAR companies that successfully developed and industrialized product <10 LiDAR industrialized, launched & standard on global production vehicle 1 Luminar has Separated from the Pack LOOKING BACK Note: IDTechEx estimated 106 3D LiDAR players as of 2020. Sources: IDTechEx, Forbes.
© 2024 Luminar Technologies, Inc. All rights reserved. | 25 Near-Term Priorities LOOKING AHEAD 1 2 3 4 Ramp Production for Volvo & Others Post SOP Ramp Down Costs Post SOP OpEx & COGS Launch Additional Vehicle Programs Accelerate Luminar Halo to Market 5 Sufficiently Capitalize for Future Growth © 2024 Luminar Technologies, Inc. All rights reserved. | 26 Q3’24 Financials © 2024 Luminar Technologies, Inc. All rights reserved. | 27 Q3'24 BUSINESS UPDATE Q3'24 Financial Results Highlights Revenue $15.5M Below guidance for Q3 revenue to be flat to slightly higher vs. Q2 ($16.5M) Comments: The QoQ decline in revenue was primarily driven by lower revenue from a re-negotiated non-series production contract Excluding this re-negotiated contract, revenue would have been up QoQ, aided by growth in sensor sales Gross Loss GAAP = $(14.0)M Non-GAAP[2] = $(11.7)M Prior guidance for Q3 gross loss to increase vs. Q2 (excl. Q2 NRE contract loss of $1.7M) • In-line on a GAAP basis ($13.7M loss in Q2, incl. Q2 NRE contract loss) • Better on a non-GAAP basis ($11.9M loss) Comments: Q3 Non-GAAP Gross Loss was negatively impacted by ~$8M related to the slower series production ramp, including 1) Inventory build of production units at unfavorable economics, and 2) Contract manufacturing charges associated with slower production ramp This was partially offset by early returns from our cost savings actions Cash & Liquidity[4] $248.6M Cash & Liquidity $430.6M Incl. Equity Program $430.6M includes $198.6M of cash & equivalents, $50M of undrawn credit facility and $182M remaining under our equity finance program Q3 Free Cash Flow[3] of $(58.4)M improved by ~$20M vs. Q2; Q3 Operating Cash Flow of $(55.8)M improved by ~$22M vs. Q2 Comments: QoQ Change in Cash[5] of $(51.9)M vs. $(57.0)M in Q2, in line with guidance (excl. the $89M cash proceeds from new debt raised in Q3) $6M raised under equity financing program $1.4M of cash charges associated with restructuring efforts Please refer to Footnotes on page 37 for more detail. © 2024 Luminar Technologies, Inc. All rights reserved. | 28 Q3'24 BUSINESS UPDATE Q4’24 Gross Loss Q4’24 Gross Loss expected to improve significantly (down) QoQ Comments: Improvement driven by: Production downtime in Q4 to help reduce our inventory levels and better align with Volvo’s production rate Expected growth in non-series production sensor sales in Q4 Continued savings from our cost savings actions YE’24 Cash & Liquidity[5] Estimating ~$230M to $240M (down from $240M) Comments: Adding lower range due to lower Q3 equity program usage as well as higher restructuring cash charges Includes undrawn $50M line of credit obtained in Q1’24 We are starting to see early conversions from the convertible debt deal[6] we announced in Q2’24 earnings. Please refer to Footnote 6 on page 37 for more details. Financial Guidance Update Q4’24 Revenue Q4’24 revenue expected to grow moderately relative to Q3’24 Comments: Driven by growth in sensor sales, including both continued ramp of the Volvo EX90, as well as non- series production revenue We currently have sufficient inventory on hand to fully service Q4 demand Please refer to Footnotes on page 37 for more detail.
© 2024 Luminar Technologies, Inc. All rights reserved. | 30 Appendix Sept 30, 2024 June 30, 2023 Dec 31, 2023 ASSETS Current Assets: Cash and cash equivalents $114,209 $52,335 $139,095 Restricted cash 1,937 1,758 1,529 Marketable securities 84,409 108,989 150,727 Accounts receivable 15,246 19,752 14,124 Inventory 17,636 14,026 12,196 Prepaid expenses and other current assets 30,449 33,175 32,950 Total current assets 263,886 230,035 350,621 Property and equipment, net 55,220 58,190 66,300 Operating lease right-of-use assets 41,036 44,408 42,706 Intangible assets, net 16,712 20,994 22,994 Goodwill 3,994 7,390 7,390 Other non-current assets 22,566 20,792 22,356 Total Assets $403,414 $381,809 $512,367 LIABILITIES AND STOCKHOLDERS’ DEFICIT Current Liabilities: Accounts payable $28,761 $20,506 $21,113 Accrued and other current liabilities 47,954 37,402 52,605 Operating lease liabilities 10,978 11,370 10,154 Total current liabilities 87,693 69,278 83,872 Warrant liabilities 19 84 1,069 Convertible and senior notes 539,405 617,046 615,428 Operating lease liabilities, non-current 33,016 36,207 35,079 Other non-current liabilities 1,292 1,343 1,667 Total Liabilities $661,425 $723,958 $737,115 Stockholders’ Deficit: Class A common stock 42 39 34 Class B common stock 10 10 10 Additional paid-in capital 2,122,786 2,066,404 1,927,378 Accumulated other comprehensive income (loss) 241 (109) 2 Treasury stock (312,477) (312,477) (312,477) Accumulated deficit (2,068,613) (2,096,016) (1,839,695) Total Stockholders’ Deficit (258,011) (342,149) (224,748) Total Liabilities and Stockholders’ Deficit $403,414 $381,809 $512,367 Condensed Consolidated Balance Sheets In thousands Unaudited 31Q3 2024 Quarterly Business Update Please refer to Footnotes on page 37 for more detail. Three Months Ended Nine Months Ended Sept 30, 2024 June 30, 2024 Sept 30, 2023 Sept 30, 2024 Sept 30, 2023 Revenue: Products $12,681 $15,739 $10,753 $43,721 $28,043 Services 2,812 712 6,206 9,190 19,622 Total revenue 15,493 16,451 16,959 52,911 47,665 Cost of sales: Products 24,128 19,969 27,273 68,604 71,535 Services 5,397 10,162 7,846 22,475 27,249 Total cost of sales 29,525 30,131 35,119 91,079 98,784 Gross loss (14,032) (13,680) (18,160) (38,168) (51,119) Operating expenses: Research and development 50,591 65,850 62,937 184,191 199,472 Sales and marketing 11,097 12,140 12,397 37,752 41,780 General and administrative 30,206 29,790 35,435 93,045 122,345 Impairment of goodwill & intangible assets 6,647 — — 6,647 — Restructuring costs 3,284 6,262 — 9,546 — Total operating expenses 101,825 114,042 110,769 331,181 363,597 Loss from operations (115,857) (127,722) (128,929) (369,349) (414,716) Other income (expense), net: Change in fair value of warrant liabilities 65 163 2,373 1,050 1,345 Interest expense (8,908) (2,757) (2,779) (14,422) (5,717) Interest income 2,407 2,519 1,260 8,356 4,770 Gain on extinguishment of debt 147,346 — — 147,346 — Changes in fair value of embedded derivative 2,476 — — 2,476 — Gain from acquisition of EM4, LLC — — — 1,752 — (Losses)/gains related to investments & certain other assets, and other income/(expense) 32 (3,376) (5,967) (5,947) (8,245) Total other income (expense), net 143,418 (3,451) (5,113) 140,611 (7,847) Income/ (Loss) before provision for income taxes 27,561 (131,173) (134,042) (228,738) (422,563) Provision for income taxes 158 (566) 296 180 305 Net income (loss) $27,403 $(130,607) $(134,338) $(228,918) $(422,868) Net income (loss) per share: Basic[8] $0.06 $(0.29) $(0.34) $(0.51) $(1.11) Shares used in computing net income (loss) per share: Basic[8] 480,016,365 453,978,904 394,591,942 453,074,622 382,673,871 Condensed Consolidated Statements of Operations In thousands, except share and per share data Unaudited 32Q3 2024 Quarterly Business Update Please refer to Footnotes on page 37 for more detail.
Nine Months Ended Sept 30, 2024 2023 Cash flows from operating activities: Net loss $(228,918) $(422,868) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 20,169 19,468 Amortization of operating lease right-of-use assets 6,464 5,095 Amortization of premium on marketable securities (1,819) (3,952) Loss on marketable securities 2,201 7,774 Change in fair value of private warrants (1,050) (1,345) Vendor stock-in-lieu of cash program 12,358 31,487 Gain from acquisition of EM4 (1,752) — Impairment of goodwill and other intangible assets 6,647 — Amortization of debt discount and issuance costs 3,065 2,427 Change in fair value of embedded derivatives (2,476) — Inventory write-offs and write-downs 20,737 17,343 Gain on extinguishment of debt and interest forfeiture (147,217) — Share-based compensation, including restructuring costs 115,792 160,031 Losses and impairments on non-marketable securities and certain other assets 4,000 2,141 Change in product warranty and other (2,367) 4,273 Changes in operating assets and liabilities: Accounts receivable (59) (7,729) Inventories (22,638) (25,249) Prepaid expenses and other current assets (1,987) 10,858 Other non-current assets (5,108) (3,458) Accounts payable 7,327 4,018 Accrued and other current liabilities 9,461 14,379 Other non-current liabilities (7,522) (9,219) Net cash used in operating activities (214,692) (194,526) Cash flows from investing activities: Acquisition of EM4 (net of cash acquired) (3,831) — Acquisition of Seagate's LiDAR business — (12,608) Purchases of marketable securities (92,400) (269,164) Proceeds from maturities of marketable securities 154,837 390,836 Proceeds from sales/redemptions of marketable securities 3,737 51,569 Purchases of property and equipment (4,244) (21,129) Net cash provided by investing activities 58,099 139,504 Cash flows from financing activities: Proceeds from issuance of Senior Notes, net of issuance costs 89,202 — Net proceeds from issuance of Class A common stock under Equity Financing Program 41,806 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 547 2,560 Proceeds from sale of Class A common stock under ESPP 800 1,406 Payments of employee taxes related to stock-based awards (240) (572) Net cash provided by financing activities 132,115 62,105 Net increase (decrease) in cash, cash equivalents and restricted cash (24,478) 7,083 Beginning cash, cash equivalents and restricted cash 140,624 71,105 Ending cash, cash equivalents and restricted cash $116,146 $78,188 Condensed Consolidated Statement of Cash Flows In thousands Unaudited 33Q3 2024 Quarterly Business Update Please refer to Footnotes on page 37 for more detail. Three Months Ended Nine Months Ended Sept 30, 2024 June 30, 2024 Sept 30, 2023 Sept 30, 2024 Sept 30, 2023 GAAP Gross loss $(14,032) $(13,680) $(18,160) $(38,168) $(51,119) Non-GAAP adjustments: Stock-based compensation 1,204 298 2,255 4,897 6,842 Amortization of intangible assets 197 166 166 529 497 Accelerated depreciation related to certain property, plant & equipment items 933 1,295 6,647 4,363 6,647 Non-GAAP Gross loss $(11,698) $(11,921) $(9,092) $(28,379) $(37,133) Reconciliation of GAAP Cost of Sales to Non-GAAP Cost of Sales In thousands Unaudited Reconciliation of GAAP Gross Loss to Non-GAAP Gross Loss In thousands Unaudited Three Months Ended Nine Months Ended Sept 30, 2024 June 30, 2023 Sept 30, 2023 Sept 30, 2024 Sept 30, 2023 GAAP operating expenses $101,825 $114,042 $110,769 $331,181 $363,597 Non-GAAP adjustments: Stock-based compensation (30,564) (36,781) (42,627) (108,415) (153,189) Restructuring costs (3,284) (6,262) — (9,546) — Amortization of intangible assets (834) (834) (932) (2,502) (2,761) Impairment of goodwill & intangible assets (6,647) — — (6,647) — Transaction costs relating to acquisition activities (5) (1) (17) (237) (53) Non-GAAP operating expenses $60,491 $70,164[7] $67,193 $203,834 $207,594 Reconciliation of GAAP Operating Expenses to Non-GAAP Operating Expenses In thousands Unaudited 34Q3 2024 Quarterly Business Update Three Months Ended Nine Months Ended Sept 30, 2024 June 30, 2024 Sept 30, 2023 Sept 30, 2024 Sept 30, 2023 GAAP cost of sales $29,525 $30,131 $35,119 $91,079 $98,784 Non-GAAP adjustments: Stock-based compensation (1,204) (298) (2,255) (4,897) (6,842) Amortization of intangible assets (197) (166) (166) (529) (497) Accelerated depreciation related to certain property, plant & equipment items (933) (1,295) (6,647) (4,363) (6,647) Non-GAAP cost of sales $27,191 $28,372 $26,051 $81,290 $84,798 Please refer to Footnotes on page 37 for more detail. Three Months Ended Nine Months Ended Sept 30, 2024 June 30, 2024 Sept 30, 2023 Sept 30, 2024 Sept 30, 2023 GAAP Net income (loss) $27,403 $(130,607) $(134,338) $(228,918) $(422,868) Non-GAAP adjustments: Stock-based compensation 31,768 37,079 44,882 113,312 160,031 Amortization of intangible assets 1,031 1,000 1,098 3,031 3,258 Accelerated depreciation related to certain property, plant & equipment items 933 1,295 6,647 4,363 6,647 Impairment of goodwill and intangible assets 6,647 — — 6,647 — Gain on extinguishment of debt (147,346) — — (147,346) — Impairment of investments — 4,000 — 4,000 — Restructuring costs, including stock-based compensation 3,284 6,262 — 9,546 — Gain from acquisition of EM4 — — — (1,752) — Transaction costs relating to acquisition activities 5 1 17 237 53 Change in fair value of embedded derivative (2,476) — — (2,476) — Change in fair value of warrant liabilities (65) (163) (2,373) (1,050) (1,345) Non-GAAP Net loss $(78,816) $(81,133) $(84,067) $(240,406) $(254,224) GAAP Net income (loss) per share: Basic[8] $0.06 $(0.29) $(0.34) $(0.51) $(1.11) Non-GAAP Net loss per share Basic[8] $(0.16) $(0.18) $(0.21) $(0.53) $(0.66) Shares used in computing GAAP Net loss per share Basic[8] 480,016,365 453,978,904 394,591,942 453,074,622 382,673,871 Shares used in computing Non- GAAP Net loss per share Basic[8] 480,016,365 453,978,904 394,591,942 453,074,622 382,673,871 35Q3 2024 Quarterly Business Update Reconciliation of GAAP Net Loss to Non-GAAP Net Loss In thousands, except share and per share data Unaudited Please refer to Footnotes on page 37 for more detail. 36Q3 2024 Quarterly Business Update Reconciliation of GAAP Operating Cash Flow to Non-GAAP Free Cash Flow In thousands Unaudited Summary of Stock-Based Compensation and Intangibles Amortization In thousands Unaudited Three Months Ended Nine Months Ended Sept 30, 2024 Jun 30, 2024 Sept 30, 2023 Sept 30, 2024 Sept 30, 2023 GAAP Operating cash flow $(55,754) $(77,707) $(56,543) $(214,692) $(194,526) Non-GAAP adjustments: Capital expenditures[9]: (2,658) (302) (4,298) (4,244) (21,129) Non-GAAP Free cash flow[3] $(58,412) $(78,009) $(60,841) $(218,936) $(215,655) Three Months Ended Sept 30, 2024 2023 Stock-Based Compensation Intangibles Amortization Stock-Based Compensation Intangibles Amortization Cost of sales $1,204 $197 $2,255 $166 Research and development 10,862 599 12,886 599 Sales and marketing 4,171 235 6,536 333 General and administrative 15,531 — 23,205 — Restructuring costs 1,068 — — — Total $32,836 $1,031 $44,882 $1,098 Three Months Ended June 30, 2024 2023 Stock-Based Compensation Intangibles Amortization Stock-Based Compensation Intangibles Amortization Cost of sales $298 $166 $1,925 $166 Research and development 16,378 599 20,541 599 Sales and marketing 3,557 235 9,792 333 General and administrative 16,846 — 26,937 — Restructuring costs 1,412 — — — Total $38,491 $1,000 $59,195 $1,098 Nine Months Ended Sept 30, 2024 2023 Stock-Based Compensation Intangibles Amortization Stock-Based Compensation Intangibles Amortization Cost of sales $4,897 $529 $6,842 $497 Research and development 41,724 1,797 50,898 1,762 Sales and marketing 12,951 705 22,156 999 General and administrative 53,740 — 80,135 — Restructuring costs 2,480 — — — Total $115,792 $3,031 $160,031 $3,258 Please refer to Footnotes on page 37 for more detail.
Footnotes & Legal Notices Footnotes 1 Software: Various Luminar software capabilities are still in development and have not achieved “technology feasibility” or “production ready” status. 2 Non-GAAP metrics: Please refer to Reconciliation of GAAP to Non-GAAP financial measures on slides 31-36. 3 Free Cash Flow: Free cash flow is a non-GAAP measure and is defined as Operating cash flow less Capital expenditures. 4 Cash & Liquidity: Includes Cash, cash equivalents, and marketable securities, as well as applicable lines of credit and other facilities. 5 Change in Cash: Refers to change in cash, cash equivalents, and marketable securities, and excludes incremental liquidity from undrawn line of credit. 6 As of 11/08, ~$23M of our Series 1 2030 convertible bonds have been converted to equity, with ~$59M Series 1 2030 convertible still outstanding. We continue to have ~$203M remaining on our 2026 convertible debt and $192M of our Series 2 2030 convertible debt 7 Non-GAAP operating expenses for June 30, 2024 reflects a correction to the amount reported in the last Earnings Release to not adjust to Impairment of investments. 8 Luminar is in the process of finalizing the appropriate weighted average common shares outstanding for its GAAP dilutive EPS calculation for the three months ended September 30, 2024. Accordingly, it has not reported diluted earnings per share as required by GAAP. Luminar estimates the number of fully-diluted shares to be between 500 million and 640 million shares 9 Capital expenditures: Excludes Vendor stock-in-lieu of cash program - purchases and advances for capital projects and equipment of $3.2M for the Three Months Ended September 30, 2023 and $7.4M for the Nine Months Ended September 30, 2023. Forward-looking statements This presentation of Luminar technologies, inc. (“Luminar” or the “company”) includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the U.S. Private securities litigation reform act of 1995. Forward-looking statements may be identified by the use of words such as “future,” “growth,” “opportunity,” “well-positioned,” "forecast," "intend," "seek," "target," “anticipate,” “believe,” “expect,” “estimate,” “plan,” “outlook,” and “project” and other 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 whether next generation sensors and software will be developed successfully or will accelerate automaker adoption, whether new automaker agreements will develop successfully into product launches, whether cost reduction efforts will continue to result in improved operational and financial efficiency, including projected free cash flow generation, expected achievement and timing of manufacturing scale up, OEM production readiness, next-gen LiDAR prototype development, continued software and AI development and performance, program milestones, Order Book growth, expected milestones, market size estimates, product efficacy, near-term priorities, including plans to ramp production and ramp down costs, operating expenses and cost of sales, and the financial guidance for Q4 2024. These statements are based on various assumptions, whether or not identified in this presentation, and on the current expectations of Luminar’s management and are not guarantees of actual performance. You are cautioned not to place undue reliance upon any forward-looking statements, including the projections, which speak only as of the date made. Luminar does not undertake any commitment to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. Accordingly, forward-looking statements, including any projections or analysis, should not be viewed as factual and should not be relied upon as an accurate prediction of future results. The forward-looking statements contained in this presentation are based on the company’s current expectations and beliefs concerning future developments and their potential effects on Luminar. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control), or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these 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. Should one or more of these risks or uncertainties materialize, or should any of management’s assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Luminar does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. Accordingly, you should not put undue reliance on these statements. All statements made in this presentation are made only as of the date set forth at the beginning of this presentation. Luminar undertakes no obligation to update the information made in this presentation in the event facts or circumstances subsequently change after the date of this presentation. Luminar has not filed its Form 10-Q for the quarter ended September30, 2024. As a result, all financial results described in this presentation should be considered preliminary, and are subject to change to reflect any necessary adjustments or changes in accounting estimates, that are identified prior to the time that Luminar files its Form 10-Q. Notice of late filing Luminar expects to file a notification of late filing on Form 12b-25 with the SEC, which will provide an automatic 5-day extension of the filing deadline for its Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2024 (the “Quarterly Report”), to November 18, 2024. Luminar requires additional time to complete the quarter-end review due to the complexity of the analysis relating to the previously announced convertible notes exchange transaction consummated in August 2024. Luminar expects to file the Quarterly Report as soon as practicable within the 5-day extension period. Trademarks and trade names Luminar owns or has rights to various trademarks, service marks and trade names that it uses in connection with the operation of its business. This presentation also contains trademarks, service marks and trade names of third parties, which are the property of their respective owners. The use or display of third parties’ trademarks, service marks, trade names or products in this presentation is not intended in, and does not imply, a relationship with Luminar, or an endorsement or sponsorship by or of Luminar. Solely for convenience, the trademarks, service marks and trade names referred to in this presentation may appear without the ®, TM or SM symbols, but such references are not intended to indicate, in any way, that Luminar will not assert, to the fullest extent under applicable law, its rights or the right of the applicable licensor in these trademarks, service marks and trade names. 37Q3 2024 Quarterly Business Update Legal Notices Industry and market data In this presentation, Luminar relies on and refers to information and statistics regarding the sectors in which Luminar competes and other industry data. Luminar obtained this information and statistics from third-party sources, including reports by market research firms. Although Luminar believes these sources are reliable, the company has not independently verified the information and does not guarantee its accuracy and completeness. Luminar has supplemented this information where necessary with information from discussions with Luminar customers and Luminar’s own internal estimates, taking into account publicly available information about other industry participants and Luminar’s management’s best view as to information that is not publicly available. Use of non-GAAP financial measures In addition to disclosing financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), this presentation 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 presentation includes non-GAAP financial measures, including non-GAAP cost of sales, gross loss/gross profit, operating expenses, net loss, EPS, 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 operating expenses is degined as GAAP total operating expenses adjusted for stock-based compensation expense, restructuring costs, amortization of intangible assets, impairment of goodwill and intangible assets, and transction costs relating to acquisition activities. 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, impairment of goodwill and intangible assets, gain on extinguishment of debt, impairment of investments, restructuring costs, gain from certain acquisitions, transaction costs relating to acquisition activities, change in fair value of embedded derivative, and change in fair value of warrant liabilities. 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. For programs where we are standard, we assume a 100% take rate, while for programs where we are optional we assume a flat 25%. We include programs in our Order Book when (a) we have obtained a written or verbal agreement (e.g., non-binding expression of interest arrangement or an agreement for non-recurring engineering project), other reasonable expression of commitment, 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 most recent fiscal year 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. 38Please refer to Footnotes on page 37 for more detail. Q3 2024 Quarterly Business Update
