OUST Earnings Prediction
The chart below shows how OUST performed 10 days before and after its earnings report, based on data from the past quarters. Typically, OUST sees a -1.57% change in stock price 10 days leading up to the earnings, and a +14.30% change 10 days following the report. On the earnings day itself, the stock moves by +1.47%. This data can give you a slight idea of what to expect for the next quarter's release.
OUST Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
28.07M
26.41%
4.02%
Gross Margin
38.30%
174.95%
13.62%
Operating Margin
-97.98%
-39.12%
4.74%
Net Margin
-91.15%
-42.33%
3.06%
EPS
-0.54
-39.33%
1.89%
No Data Available
OUST Earnings Analysis
Ouster, Inc. Corporation (OUST.N) Earnings Conference Call
Positive
Record Revenue Achievement: 1. Record Revenue: Ouster achieved a record revenue of $28 million in Q3 2024, marking the seventh consecutive quarter of meeting or exceeding revenue guidance.
Gross Margin Improvement: 2. High Gross Margin: The company reported a GAAP gross margin of 38% in Q3 2024, a significant improvement from negative 2% in Q1 2023, reaching their target range of 35% to 40%.
Cash Reserves Improvement: 3. Strong Cash Position: Ouster ended the quarter with $154 million in cash after repaying all outstanding balances on their revolving credit line, reducing annual interest expenses by approximately $3 million.
Record Software Sales Growth: 4. Record Software Sales: The company experienced record software attached sales during the quarter, contributing significantly to revenue growth and margin expansion.
Traffic Management Certification: 5. Successful Product Development: Ouster's BlueCity solution received NEMA TS2 certification, enhancing its market position in traffic management and safety solutions.
Negative
Sensor Shipment Decline: 1. Declining Sensor Shipments: Ouster shipped approximately 3,900 sensors in Q3 2024, marking a sequential decline for the second consecutive quarter despite achieving record revenue.
Operating Expenses Surge: 2. Increased Operating Expenses: GAAP operating expenses rose to $38 million in Q3 2024, up 11% sequentially, primarily due to higher litigation expenses, which could impact future profitability.
Litigation Expense Effects: 3. Litigation Costs Impact: Excluding litigation expenses of $4 million, operating expenses were still up 4% sequentially, indicating ongoing financial pressure from legal challenges.
Debt Repayment Cash Utilization: 4. Cash Utilization for Debt Repayment: Ouster utilized $44 million of cash to fully repay its revolving credit line, which, while reducing interest expenses, indicates a significant cash outflow that could affect liquidity.
Revenue Guidance Range: 5. Revenue Guidance Uncertainty: For Q4 2024, Ouster expects revenue between $29 million and $31 million, suggesting potential slowing growth compared to the $28 million achieved in Q3 2024.
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OUST Earning Call Sentiment
Ouster, Inc. (OUST) Q3 2024 Earnings Call Transcript
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OUST.N
-0.46%Positive
The record revenue and gross margin, coupled with strong software sales and strategic customer engagements, indicate positive performance. Although there are risks like competitive pressures and litigation expenses, the overall financial health, with a strong cash position and reduced interest expenses, supports a positive outlook. The Q&A highlighted strong adoption of new products, further bolstering sentiment. Despite some management ambiguity, the optimistic guidance and strategic initiatives suggest a likely stock price increase of 2% to 8% over the next two weeks.