10 Best Lidar Stocks To Buy Now

3. Ouster, Inc. (NYSE:OUST)

Number of Hedge Fund Holders In Q2 2024: 15

Ouster, Inc. (NYSE:OUST) is a diversified California based lidar company that also targets the industrial, robotics, and infrastructure sectors along with automotive. This is quite important since it means that the firm has a wider moat when compared to pure play automotive lidar firms, and is also reflected in the share price. Ouster, Inc. (NYSE:OUST)’s recent share price of $6.66 makes it one of the few non penny lidar stocks on our list. The firm has been delivering well on the financial front lately. Its Q2 revenue marked a 39.3% annual growth as Ouster, Inc. (NYSE:OUST) posted $26.9 million in the segment. It has had a busy 2024 so far by having signed a deal with a robotics company that provides it with ground presence and by having acquired certification for use in traffic lights. These use cases are key for firms like Ouster, Inc. (NYSE:OUST) as they provide them with ample opportunities for diversification that can help stem any auto related lidar downturns.

Ouster, Inc. (NYSE:OUST)’s management is also focusing on the software side of the lidar business, which creates room for a high margin, recurring revenue division. Here’s what they shared during the Q2 2024 earnings call:

“Our first priority is to expand software sales and grow our installed base. In the second quarter, we secure deals to supply Ouster Gemini, our smart infrastructure software solution to one of the world’s largest consumer technology companies, as well as a global telecommunications company. During the quarter, our software team also improved movement detection for security customers, optimized software processing requirements, and enhanced our deep learning perception model to support new use cases, which is identifying unauthorized individuals tailgating into restricted areas. The second quarter also marked one of our best quarters for software attached sales. We increased our deployments at distribution yards as Gemini and REV7 are helping drive the immediate ROI for our customers, in addition to providing safety and operational optimization.”