Ouster, Inc. (NYSE:OUST) Q1 2024 Earnings Call Transcript

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Angus Pacala: Yes, that’s a great question. The first part of it is just simple. We absolutely expect to be more nimble with the software and be able to provide more rapid kind of updates, product updates and release updates with that software. Just it’s the nature of the medium. And then on the second part of the question, I do see that ultimately we can expand the software footprint into many different industries. You have to understand that every single one of our customers’ needs a pretty complex piece of software in order to take advantage of the lidar hardware that they’re buying from us. And we’re building credibility in each one of our verticals by providing this incredibly sophisticated hardware, but also a long-term relationship to each one of our major customers that builds confidence in Ouster not only as a hardware provider, but as a support provider, as a systems provider and ultimately as a combined software hardware provider.

So, I do think there’s opportunities for us to move into adjacent verticals, move in the industrial, automotive and robotics verticals potentially with software solutions as we’re doing in smart infrastructure. That’s kind of the — that’s the end, one of the end states for Ouster I think is more of an autonomy systems provider than just an isolated hardware and isolated software provider. But like I said, it’s still early days and we’re going to stay committed to the smart infrastructure portion of our software business for the time being.

Kevin Garrigan: Yes. Got it. Okay. Perfect. And then just as a quick follow-up, and I apologize if I missed this, but I’d love to hear feedback customers are giving you on the DF sensors and from what you’re seeing in the automotive industry, and the people you’re talking to are timelines kind of for or starter production for some of these models, are they getting pushed out pretty significantly? I’ve heard 2028 is some of the new kind of years that people are seeing?

Angus Pacala: Yes, absolutely. And I’m going to sound like a little bit like a broken record here because my view of the automotive industry remains the same and our place within it. We’re building DF sensors to meet the market at the end state of what is required, which is low cost, solid state, modular, flexible, high performance, and affordable products. And that’s what DF is. It’s a product that can, that will be, I expect in cars for the next multiple decades, not just in the next five years. And yes, unfortunately, one of the things that we’ve seen is timelines push out. They rarely pull in the automotive industry and in the kind of the adjacent robotaxi industry. So that’s definitely a dynamic that gives me confidence that we should be taking our time with DF and making sure we’re building exactly the right thing, which I think we are, and meet the market on our timeline because it’s better to be correct than to be first into a market like this.

Mark Weinswig: Yes, no, absolutely. That makes a ton of sense.

Kevin Garrigan: Okay, perfect. Thanks, guys.

Angus Pacala: Thank you.

Operator: And at this time, there are no further questions. I’ll hand things back to Angus to call up for any additional or closing remarks.

Angus Pacala: Well, thank you all for joining the call. Ultimately, Ouster’s success is the result of our team’s belief in the differentiated strategy that we’ve set out and the effort that the Ouster team has put in day-in and day-out. So I do want to thank the Ouster team for another great quarter. 2024 is off to a really positive start. And at this point, we’re advancing on our path to profitability, and I’m confident that the Ouster team’s execution is going to continue to set Ouster apart from the rest of the industry. So thanks again and have a good evening, everyone.

Operator: Once again, everyone, that does conclude today’s conference. We would like to thank you all for your participation. You may now disconnect.

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