What happened
Shares of Ouster (OUST 15.91%) are making explosive gains in Friday's trading following the company's recent second-quarter earnings report. The lidar technology specialist's stock was up 22.2% as of 11:45 a.m. ET, according to data from S&P Global Market Intelligence.
Ouster published its Q2 results after the market closed yesterday, posting a loss of $3.19 per share on sales of $19.4 million in the period. While the revenue for the period was in line with the company's guidance, its loss was lower than anticipated -- and the company increased its cost-savings target for the year.
So what
Ouster grew revenue roughly 88% year over year in the second quarter, and the company's bookings momentum looked even more impressive. The lidar specialist booked $43 million in new business with new and existing customers in the period. Despite the substantial sales growth, Ouster's net loss in Q2 narrowed to $123 million -- down from $177 million in the prior-year period.
Lidar, which is short for "light detection and ranging," has emerged as key technology for some autonomous vehicles, robotics, and self-driving systems. The technology can be used to determine the distance between objects and prevent collisions, and the category is on track for strong growth over the next decade.
Now what
For the third quarter of 2023, Ouster expects to achieve $20 million to $22 million in revenue. At the midpoint of its guidance range, that would call for 87.5% year-over-year growth compared to the $11.2 million in sales it posted in Q3 last year.
In February, Ouster closed its merger with Velodyne Lidar and laid out plans for significant cost savings following the integration of the two companies. Management now expects to end the fourth quarter with $110 million in annualized cost savings, up from its previous target for annual savings of $75 million.
