Lidar Maker Ouster Posts Q1 Sales Above Estimates, Shares Jump

Ouster, a lidar maker, reported Q1 sales of $33mln, beating Wall Street's estimate of $31mln. The company provided solid guidance for Q2, driving its stock price higher.

Ouster Inc. (NASDAQ: OUST) has reported robust first-quarter 2025 results, marking its ninth consecutive quarter of meeting or exceeding guidance. The lidar technology company posted significant year-over-year improvements in revenue and gross margins while maintaining its strategic focus on software expansion and the path to profitability.

The company delivered $33 million in revenue for Q1 2025, representing a 26% increase compared to the same period in 2024. This performance exceeded Wall Street's estimate of $31 million. Ouster shipped over 4,700 sensors during the quarter, up 6% year-over-year, while significantly improving profitability metrics.

CEO and Co-founder Angus Pacala noted, "We had a solid start to the year, delivering our 9th consecutive quarter of meeting or exceeding guidance. We won multi-million dollar deals across all four of our verticals and our installed base of connected software solutions is growing."

Gross margin improvements were particularly notable, with GAAP gross margin reaching 41%, up from 29% in Q1 2024. On a non-GAAP basis, gross margin expanded to 46%, compared to 36% in the year-ago quarter. The company maintained a strong balance sheet with $171 million in cash and equivalents and no debt.

Ouster's strategic priorities for 2025 include scaling its software-attached business, transforming its product portfolio, and executing toward profitability. The company is particularly focused on expanding its software-attached business, targeting a $19 billion total addressable market by 2030 across intelligent transportation systems, perimeter security, logistics, and crowd analytics.

The company provided revenue guidance of $32-35 million for the second quarter of 2025, suggesting continued year-over-year growth but potentially flat to modest sequential growth compared to Q1. This guidance aligns with the company's broader strategy of achieving 30-50% annual revenue growth while maintaining gross margins in the 35-40% range.

Following the earnings presentation, Ouster's stock rose 9.94% in aftermarket trading to $9.51, building on a 4.6% gain during the regular trading session. The stock has traded between $5.84 and $16.88 over the past 52 weeks.

Investors appear to be responding positively to the company's continued revenue growth, margin expansion, and strategic focus on software-attached business and profitability. With a strong cash position and zero debt, Ouster remains well-positioned to execute its growth strategy in the competitive lidar market.

References:
[1] https://www.investing.com/news/company-news/ouster-q1-2025-slides-revenue-jumps-26-gross-margins-expand-to-41-93CH-4034186
[2] https://www.investing.com/news/earnings/ouster-earnings-missed-by-013-revenue-topped-estimates-4034297