Velodyne Lidar (VLDR)

Moriah Shilton SVP, LHA Investor Relations
Drew Hamer Chief Financial Officer
Jim Barnhart Chief Operating Officer
Sinclair Vass Chief Commercial Officer
Itay Michaeii Citi
Colin Rusch Oppenheimer
Richard Shannon Craig-Hallum
Aileen Smith Bank of America
Michael Filatov Berenberg Capital Markets
Call transcript
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Good day and welcome to the Velodyne Lidar Second Quarter 2021 Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. I would now like to turn over to Ms. Shilton. Moriah ahead. go Please

Moriah Shilton

Hamer, are thank to for quarter discuss us are results. and and Financial today's of members XXXX us conference With Velodyne's Drew Company's the Jim Company's the call today's Officer. Chief Chief call Velodyne on Company's the Drew OCE, for call and and Officer available you will Jim afternoon, Chief joining or of Operating Officer Sinclair all on Sinclair through prepared Commercial and remarks Office Barnhart, financial run Executive the Chief Good Lidar's Q&A. Vass, second the

begin, published today, remind you Velodyne an investor we financial its that close press would a XXXX market announcing presentation. release the Before like issued second I also shortly Velodyne to quarter after results.

results presentation discussion from the non-GAAP Investor measures that that Velodyne's forward-looking statements. You cause we some during press the of Today's press discuss to the our you of a the will to and performance. release release differ the remind discussion in statements. velodynelidar.com. access for company's these factors I Please includes section related Relations also to materially actual may call, like could refer would forward-looking to

call, and comparable initial reconciliation request measures one of the can question. To You the that find in to to GAAP the you follow-up limit question the that address we those as as during questions possible nearest we measures please ensure releases. press one many analyst

call and one of Velodyne's Now, OCE. of over Drew Velodyne to of the I'd to like turn Hamer, the members CFO

Drew Hamer

for you joining Thank today. you, Moriah. thank and Good afternoon us

are as on OCE of and members the our developed the CEO, executive Gopalan. and am company's I together members four mentioned, strategy Anand one of Dr. Moriah former of team by growth our executing we As

search experience, execution industries consumer operations, industrial decades know, The supply Anand general collective an business chain, telecommunications services, full find is our and ranging Board employee you advisory including engagement, undertaking market. electronics, of As CEO. in OCE and from in serves has strategy and capacity manufacturing, to laser engineering, now a automotive a of many time management, financial to

markets, gain gaming, today our emerging in of to like continues target and the of market momentum. Speaking served use lidar market

trend solutions only executing are are the with has supported Lidar of vehicles and deals that this broad shelf against portfolio we today. a that by lidar customers put be company closing Velodyne We both markets, into can across product the is manufacturing an and by that hardware software office infrastructure. variety

were more when than shipping in all sensory the reported We than our X,XXX quarter We shipping shipped market from XXX than Of as and multiple those of QX, are we for units leader more our breadth global the across the second units. more adoption in the in increased units aggregate units peers applications. up lidar combined have year-to-date. QX X,XXX industries of lidar solid-state

roughly indicated customers only buys, larger sales the of as them other for The our the expect year. inquiries pandemic. the We of broader number to for ship quarter, shipped be of solid-state group full XX% to in sensors XX% of did We we prior also a customers more of we is the COVID-XX spot our our through from the side market are sensors we sold were through going believe interest now increasing. solutions. Not

quarter averaging the for We a expect than sensors start of unit volumes to X,XXX year. rest more the

and closer to moving customers and our them. to listening people are We goods

inventories in Europe. China placed and have We

support in-country regions including in We technical we Korea. are strengthening serve, the South all

We in India. a design of also center excellence established

end which well our end agreements expect We for and four in relationships existing to year with before total XX. our sign now the bring year. goal prior XX of new to multiyear the signed continue our will markets. customers to our year additional deepen building agreements multiyear We meeting to more We relationships bringing by and total the the stated

pipeline XX pipeline XXXX. to X, and include August May we expect these up to ramp will XXX from multiyear ADAS solid projects starting opportunities begin projects grow. are X. new which at at signed XXX in of awarded the Our agreements continues state had We Velabit. Included in

have We go billion for XXXX. are projects $X.X additional an and not signed awarded of yet that that opportunity through

on to markets Turning software with used the our our through would as customers. I an served sensors our well of run the markets, like as and applications various lidar in being both various provide to are update progress

XXX have product have plus decade who and from customers both continue the over We product past Velodyne. most buy to

long and these customers to of from lidar with the of phase move first research wave many seeing development are adoption. a We mass

will you HXXX Velabit MXXXX, our state to and range our ADAS from short ultra midrange range In automotive. Velarray sensor sensing. solid long Velarray First midrange find sensor,

our Keep and currently Velarray more. as making Faraday pedestrians OEM of progress in HXXX Adaptive are Advanced sensors Assist, with Blind we All automotive Emergency our Spot Monitoring, can the Braking, and publicly our first major program Assist, Parking high-volume using enable unveiled relationships Automatic customers Control, Cruise including for well. Lane was Future

in For production ADAS Tier move major Asia example, provider project of continues with level forward. mass our to III for X a lidar systems

EV surround this are adding state and headcount An further can lidar. use application the full project, we in build view to of include countries ultra family, Prime Velarray Puck with rotational in relationships to of mid Or including to Ultra sensors, sensors. effort customers and and part solid rotational can it are and state both suite start South for As which this could solid Korea. range sensors and Alpha needed. mid-and-long-range mid-long-range plus our short rotational our move as Pucks, range solid Velabit with state product

driverless the to Trumtech allows as will autonomous Puck, and Velarray IV China example, to Beijing's Puck vehicles. level self in first [ph], the core HXXX one one driving permit use company of trucks first road in develop tests hardware became commercial sensors Ultra [ph] companies its our obtain independently recently that Trumtech sensor for As trucks.

closer our as are as inventories support in-country call, As we I increasing mentioned moving earlier in customers. the well to

in wins. result seeing We customer new these are already efforts

in navigation vehicle autonomous large another use will next-generation operation. company with support current signed China lidar real-time who rotational to and sensors for our precise have their logistics We reliable

customers are to with current additional portfolio. agreements products to include within with We us our existing their working extend

Velabit. an upon mile another delivery. agreement to Some scale to example relationship our of at our due customers Prime, This Pucks, as manufacture customers of is these large for need. or lidar view sensors our recently the our to and In signed use state Robotics this our Alpha relationships our North current they and success product solid the customer a result supplier Industrial, of It and will cannot that concern us for surround plus deepening family, Velarray opportunities our came last our an including find broad agreement their product with portfolio. warehouses. Ultra builds We existing company Puck, and undisclosed American in in provide our solutions with with you

mobile solution a environments this equipping its autonomous is sensors. ANYmal collisions with level map higher using and robotic able harsh navigating ANYbotics of environments week to sensors while announced Puck As to any to is detect By obstacles accuracy. with industrial earlier Puck allow robots our ANYbotics our inspection the avoid

the manufacturing provide agreement company who mapping with also our a robot, additional security is large-scale from apart production a to to The selected and for which driving set and mass for defense scheduled their has XXXX. plus of sensors our and its We in five-year wins to Velodyne and autonomy capabilities leading signed ability us. lidar to continues quality are customer manufacture, begin competitors, of our sensors, sales

offshore system. mapping and In in combine mobile which transform for system that our surveys B.V. and addition, mapping can to is surveying high highly quality city lidar equipment find data our for which protection specializes support safe Seabed dredging, product and The surround companies to for will our marine smart a Last selected not with solutions deliver sensors least, lidar view detailed collection offshore mobile accurate solutions, solution helps you also their turnkey hardware. is of environment. Puck family. first software which Seabed offering has our hydrographic businesses but XD its navigation

At transformative traffic and In in software Our our American and winning with generation new networks May nurture in world's New in In a more installations the British Area. or important Jersey most AI Intelligent a sensors most XXXX and Award, spaces. of campus forward efficient public IIS named Solution deployed with in combines and advancements moving we Florida to July spaces the to Infrastructure advance XX XX lidar operations Velodyne Austin, upcoming NVIDIA smart AI safer projects Texas and make cities our is the to of the we North IIS Raton IIS the including continue Boca Rutgers market technology. to with solutions Columbia, the and winner world. and vision. joined honors at the Québec in powerful which multiple monitor Smart industry-leading cities, applications and to bring award which designed was significant is in Bay we Metropolis Program announced product

On the on generation Of Field side our FOV which are higher the our June hardware resolution. launched delivers of ultra in what wide we for, sensor Velabit View, asking an next customers and

June. their forward launched or evaluating highlighting for Velabit product customers our AV five demand. the demo We robotics, to told us our Across and ADAS industrial attended, solutions XX customers board a companies Velabit other solutions. generation the Our using to looking day held under in commitment and in are next was and in a applications. key in delivery, they meeting OEMs incorporating customers year, our companies including

chip Importantly, specific MLA. core combined process the make effective breakthrough optical brings circuit the Velabit manufacturing cost ready Micro production. ASIC automated is integrated or proprietary enables in lidar technology. mass together fully architecture application LiDAR high-quality The for elements The Velodyne's with our miniaturization, that MLA our with proprietary the work, equipped

enable proprietary at rotational hardware long-range MLA currently great high-resolution overall our will auto provide sensors scale these we ultra at with the our ASICs that on are we performance working performance the cost use right to choices We to and high the technology for is to next-generation all that made, and ability marrying manufacture scalability are mass-market technology adoption. point technologies have needed

autonomous can lidar-based government The a lidar and well. by mission public misses vulnerable crashes NHTSA crashes for federal vehicles ADAS road and week advanced role a kit pedestrians. to perception bringing their such [indiscernible] last our drones enables or industrial software The that as allows lidar Development lidar capabilities these, side, innovations, reporting cutting-edge and as the safety the gain developed customers to to autonomy in democratized at advance involving capabilities shows and as hard Technology for the delivery our vehicles, news accelerate services, in improving VDK Recent more. robotics, on users time-to-market continues from such look near sphere to autonomous of companies safety that and Velo the recognition new larger play launched Software we is solution. Velo Kit software taking the On utilize ADAS, autonomy. mobile to

that of We now have objects, for pedestrians. braking including a solution wide available variety automatic enables emergency

side, the Administration On exemption for commercial a safety Carrier vehicle commercial Velarray which lower implementation recently Federal will motor rulemaking interior proposed a vehicle lidar therefore we blanket adopted of windshield threshold published Safety to and concerning developed of the if windshields, installed notice and its the on provide for vehicle technology Motor the our adoption.

autonomy. the infrastructure to the governments local vehicles city for Velodyne the Communities for result Smart provide deploys suburban and full infrastructure Act we providing and especially and On are technical that Cities a circle and proxy will enhances the safety and rural a cities company is only lidar have technology, to implement community. side, a as Smart smart both At and infrastructure. of in resources technology safety technology and financial

$XX.X current operating non-GAAP and in is compared $XXXX were Product we the not discuss operating I'd and business fee sensor GAAP was and $XX as million taxes. million gross purchases caused operating did was of by XXXX due of for weighted million compared expenses $XX.X were gross first XXXX. $XX.X first selling company's the a to services compared conduct which full $XX.X $XX to XXXX with of compared quarter million, approximately review company's merger to sales GAAP profit XXXX compensation like $XX.X Chief first of price $X.X $XX.X compared audit our the of to expenses Included David quarter to average million of $X.X of in is renewed legal were per our sensors expense our expenses outlook. non-GAAP administrative quarter provide loss and in with is quarter QX. employer committee's guidance License fee. in financials. I million in fee nearly our Director licensing gross announced operating of and then year including licensing $X.X million first $X.X million. quarter revenue XXXX XX% million million of our for the Hall, half operating the Industrial. against million GAAP Officer profit in and $XX.X million demand in non-GAAP $X.X into and getting expenses and investigation Marketing second loss gross by and gross compared from Graf stock-based to expenses of GAAP compensation general company's including delayed expenses first million connection QX and previously non-GAAP pandemic. first $XXXX Chairman and of uncertainty XXXX in to professional taxes. included $XX.X former Hall, to revenue stock-based operating up expense expense will quarter sensor quarter per million. our $XX.X million, GAAP COVID-XX and was licensing the in lidar quarter the the expenses included first million a from employer This company. prior first loss mentioned. million and Marta former first $X.X to stock-based revenue included benefit the GAAP was GAAP expenses related XXXX customers marketing quarter the million $X.X Included from in XXXX results The compensation in Total and of a the XXXX $X.X $X.X million the including million and I charged Now

compared of half was million $X.X included non-GAAP loss operating $XX.X of net non-GAAP and loss and of provided loss non-GAAP million. per This was to loss research response first quarter by development was XXXX multiyear to expenses was net spending was that loss GAAP agreement the GAAP $XX.X $X.XX. figure first is share our $X.XX per net million. was For million. in this non-GAAP XXXX net and and loss GAAP a net $XX.X pipeline. $XX.X a the million, GAAP increased visibility share

was net is of XXXX $X.XX. weighted outstanding per share quarter average loss $X.XX the First and quarter million. of of GAAP for second EPS XXXX was calculated XXX shares loss net per using share non-GAAP

million. As on Velodyne June quarter short-term of actual shares XX and balance $XXX.X XXX.X the outstanding investments completed cash in its were million with sheet.

to $XX.X and $XX.X and and of was million product revenue. was of XXXX total and $XX.X This of $XX.X $X.X of GAAP first non-GAAP revenue XXXX of million for which license first This the service $XXX.X GAAP Now revenue. in and was half compares $XX.X million net the in $XX.X million net million for $XX.X loss XXXX, loss half the loss compares the for for net comprised of million was the half million XXXX to of $XX.X million first license product non-GAAP revenue a revenue first million XXXX was net million. in loss. half service first and in half of

statement financial $XX XXXX million. $XX Revenue million and range year between guidance. to full for Now is expected

to Non-GAAP at the fewer expected gross of upside XXXX. provide our recover, believe good increased multiyear are compared expectations in a global they our by Gross while based in XX% new in offshore generate manufacturing agreement to experienced XXXX regarding that of basis, product toll overhead as revenue by non-recurring the of projects million other expense. and basis, the our due markets of margins have between $X On compensation we to our cover expenses our of come units fixed This in Based range line XX% increasing XXXX. margins factory this seen revenues to COVID-XX. sold our $XXX continuing in. have a end negatively On moving China of the development still engineering include revenue XX%. benefit operating U.S. we between higher end expected engineering. geographies will margins spend ongoing would we would of and are guidance expected are low impacted while number to to projects to guidance costs non-recurring to such in Many and parts of stock upon a are Jose, million. approximately from the COVID-XX. delays see upside of million reflects We San pipeline, approximately We sight remaining non-GAAP range be larger gross $XXX should GAAP our are

to GAAP We that sales marketing CEO. recent be will and Industrial for based operating be expenses expect, million to related increase of and in million to On company in million against stock year expenses departure due a increased with our to of expenses. XXXX, shares quarter, we $X expense and $XXX.X Graf administrative related general would approximately by On average XX% the the basis, primarily reflects compensation expenses GAAP charged approximately anticipated include outstanding a are are Weighted legal income and to approximately expenses $XXX,XXX. XXXX, approximately to compared XXXX merger basis, $XX public second tax million. our the estimated $XX

pipeline business review billion. XXXX, we awarded Finally, XXXX, awarded of signed like $X of I could have we would signed our through projects the and to of quarter yet and revenue of from not the $X.X opportunity projects a billion At second of that for are plus the estimate outlook. end over

ADAS agreements, are my XXXX concludes now beyond. in mentioned in I take which and to we begin multiyear to questions. ramp our our ready As remarks. This included years earlier, the are agreements, formal new to starting Operator, expected


Instructions] begin Itay Michaeii will Please question Citi. of And first question-and-answer from [Operator go comes ahead. the now session our We it appears

Itay Michaeii

good everyone. Thanks, afternoon Great.

Drew Hamer

Itay. Hi

Itay Michaeii

key I the again, just implied exit kind Hi, half go and wanted margin kind half through to just me to second the second to drive bridge rate? the see takes just puts gross help of of

Drew Hamer

for given of will a still we we've are of margins, and as the in at as contribute so little a we're the year that gross Yes, looking see for getting you the the half sensor delayed moved accounts, gross what offshore. we second manufacturing so we, sense margins to bit

So bit will gross margins creates of higher end the get drag of is the some range that go, the in towards that gross solid along upwards those little which just will XXX%. newer engineering of is significant a a the as non-recurring a sensors pipeline where on pretty margin contribution and of there of provided come you but with we've a guidance contracts out

So, as is that range, of get up. as into confidence bring additional end to pipeline number more NREs we middle, have will we a out kind bottom but the of clear the gross the margin

as look gross from the as there we of margins start So expect end towards those deals come year, that up to out NRE the move in. we the

Itay Michaeii

Got it, the can [indiscernible] Then and helpful. a little color volume that perhaps you region that's the the terms just that going of more in forward? XXXX maybe in award of begins give on even prospective

Drew Hamer

because specifics many too into of getting phrase what's the -- it without is So, confidential. that

Itay Michaeii

Okay, confidential, it. [indiscernible] I

Drew Hamer

it's OEM it a for scale the them of out project I ADAS two closely they are kind starts That think we're a calling is be projects but one large it and where underneath volume, now on. with would moving just and we're in be what actually, They a there, OEM space. have and would working normal into

Itay Michaeii

you. very okay that's it, Got Thank not helpful. [ph]

Drew Hamer



go Our next Oppenheimer. question Please Colin ahead. with comes from Rusch

Colin Rusch

Thanks so guys. much

Drew Hamer

Hi Colin.

Colin Rusch

of customer You bill ago the like, opportunity? in what's non-auto cycle, activity that the you going year of with a of customers know, close quotation, on segment talk your in level terms versus can about

Drew Hamer

interesting it's in uptick. investor that our project is, we're even -- people our seeing know, us significant you so, we presentation, share look pipeline with when to Yes, we the at

from coming initial the kind and think, to adoption customers. of Industrial lidar going is be Robotics I for more our

sale bit and will so, more be bit come implementation look little you faster, rapidly. quickly, sensors of come -- at a the cycles the this little more happened uses the And has a adoption and when much space,

as start up. into this So And revenue know, the that into looking automotive we're will of XXXX, to maybe of our of that even other industrial, customers in then later with automotive as as generate XXXX, expecting years the smart volumes you at, the look and these sales will as we these kind as a -- and linearity revenues, of comes gather set will city, we're the generate to years other, non-automotive will the will up applications. some out this robotics sensors, couple XXXX, start of kind -- actually well catch of forecast, play and XXXX, start space

are a much implementation for So, much us. industrial in cycle, quicker the design you a we so production sales from when seeing through with the customers resulting revenues and get that start shorter was -- to quicker win

Colin Rusch

Perfect. how that is within due guidance, the guide of not then, much by NRE? And

Drew Hamer

our we're of NRE. know, the in of pretty you is comfortable that smaller So, guidance end a portion low

the and we would point, higher would So So more it's running, of NRE the the up and more sensors, to be, mostly catch contracts place the to manufacturing bit get more in fixed be it those into NRE and at end volumes as up but of because further having up require becomes made of at the today guidance. out little guidance, set range a the is going this that

Colin Rusch

Okay, so you guys. much thank

Drew Hamer

Thank you.


comes question Gill Rajvindra of Please go & Needham ahead. Co. Next from

Drew Hamer

Hi Rajvi.

Unidentified Analyst

Rajvi. yes, Hey a actually this question Hi, on of Dennis behalf is asking guys,

Drew Hamer


Unidentified Analyst


maybe bit right state top kind So the our now solid sensors? would versus of just like solid solid who transition, state for regular of are sensors mix a you little question talk first kind your of regarding adopters state about and just maybe the the is

Drew Hamer

Can right. take one you're so, Sure, this you Sinclair?

Sinclair Vass

people in the industrial space. So are for sensors going us the actually to out solid initial state

we lot turning even in We We a had here buys, lot have Velabit with activity, that. but aren't necessarily lot there's of a kind our revenue. that how, had R&D days of of of up certainly those mentioned we

solutions, in The kind coming or production the industrial the multiyear moving smart agreement a sensors more of the contracts them. delivery little be seeing another go of would kind and I kinds, space, in We're space. in today, discussions three producing or industrial Velarrays, as IIS of are these be as more of the these years. So state there for terms will think cities in bit spaces, solid to which there's of more the for the production well into activity

think of most we've covered I yes, So, it there.

Unidentified Analyst

many guys did color of ship solid Could how provide you on the this any states quarter? you

Drew Hamer

You in XXX like about there's could that. put something or

are that we as as We get will QX increase anticipating into it well.

be a to going there's balancing. So

are I our [ph] there, to one need this -- a where lot be going and like there's that think some quarter's even that's it's ASP out those or of to that things not trend quarter's ASP of like kind there. next take careful of things or assume you be to a steady decline

to think more trends, people line I and look bit need it'll use linear a multiple be for little gradual. quarters

it as solid the but the on quarter-to-quarter, So the change sale state in sensors more going the mix to that's of versus act where going relates will and see from gradually rotational, the to of state moving we're balancing more solid more there. there's

Unidentified Analyst

lower units states was there how related any or there would the my the of actually to up for rotational are you Is either of units either the end tell that can for solid units of then, right some they is trending color And the and in either ASP's, kind the can or of kind follow high about kind on great? anything you detail us or be sequentially end year-over-year? provide

Drew Hamer

that We weighted everybody. I'm get have much -- we not into share and ASP are average more not tell with to a you going we detail

allow year next achieve sensors, years this place adoption, them have that which margin rotational MLA for lower ASIC we chips we'll sticking in all in will to, be market incorporated of cost, seen lower five the with become to as about the sensors now. targets, into prices and points price And us beyond coming a is while which had still out and the strategy get maintaining able and be sell gross the our also years at However, as broader our manufacture them Company to the able down. we at

Unidentified Analyst

right. Thank That's it, me. you it Got from much. very

Drew Hamer

Have for day. good a you joining. Thank


of Out go question ahead. comes please next Richard from Shannon Craig-Hallum,

Drew Hamer

Hi Richard.

Richard Shannon

guys, Hello Hi Drew.

sales of solid please something this I Drew, about like your your sensors what clarification, a I that in wrong, clarify prepared that something XX% comments I so from was? are know did coming Just year hear got state expected,

Drew Hamer

overall solid of going of could believe be bit in our the of half sensors. state the sensors to that XX% we a Yes, see they year, here pickup total sales were in sensor upwards the of and second

So looking work as we've see robust from buys visibility with at possibility. And from steady, you agreements. them We shared well. last getting with well very that that our that multi of quarter as we're done customers current kind I as we a and that's expected that the think as

Richard Shannon

missed of the Okay, for for or that And half year? second the that is and just maybe I the year one.

Drew Hamer

For the full year.

Richard Shannon

for you thank perfect, okay Clear, that.

still with and my when as delivery large terms first opportunities Let's you see, customer mentioned question that on think of that customer, delivery and obviously timing a you in potentially was, talked last-mile specific new scale? one to about track you're crossed becoming just public, I the last-mile engagement is

Drew Hamer

to similar due about yes activity who on going but we seeing using application. also China, be sensors pickup I our seeing for also customer nice type specific be nice of course the some are, similar can't confidentiality are in we and is then solutions, obligations to a we're that, of a So, too delivery with

-- that is space includes nice we're of there some really large a kind of seeing So the across e-commerce these activity customers. e-commerce,

Richard Shannon

Perfect, topic and my follow on the was, following here. margins of question gross on up

number? wouldn't year? NRE a the for is be XX% that into the year hit range you're to of getting at And to second second gross get bridge the about in kind looking trying year, would half even the range that since of include would suggest that going next the a low much the half again full fair to Just range end year margins of to the think to if the

Drew Hamer

low low here, year we would as the our they as so the a be kind margins are. seeing range, unit end it we Yes, revenue end out escalating come gross of to of the be the end volumes of as our bit but of start low guide, would continue of our pace

Richard Shannon

Okay, all from me. Thanks. that's fair enough,

Drew Hamer

Operator Bank ahead. Smith question Please America. Aileen go comes from of you Our Instructions] [Operator of Thank next

Aileen Smith

Good afternoon, everyone.

Drew Hamer

Hi Aileen.

Aileen Smith

a markets. that from of seeing commentary on I wanted is the industrial coming actually on sensors the end to lot solid the state follow traction you're up

us app I think sensor. one, I plus characterize you've Velabit eight think of oriented the is in would most past two, really or the Velabit level characterized

So is your side your sensors solid and automotive between sustainable on over non-automotive markets expectations of customer state traction thought end the is process on what's your mix consistent time? automotive or a what with

Drew Hamer

because question Yes, so part the it's that's a part. really statement is of your important really, last overtime that

doing P&L, live So us kind of in years. unique terms we're measure to a coming you of but where the our in things how where this expecting world we are we on year in guys this quarter go and

sensors current for and those are rolling state more of where of out quickly. the in really kind the we're markets it's adopters industrial technology spaces up this seeing So a being picked little early the period solid

We the is Asia of Velarray talked as the of in we the that getting the activity a we're space. is Velarray working primarily are as also XXXX so family then solution Velabit the products. customers our about solid much very What so ADAS around space lot along state, and line, our well with and around some Velarray strictly

their detract then as on more and the efficient embed are not our sources automotive not So can rotational as robotics, more into in the probably, time they data Velabits more because and more using so ensure the get that will concerned space. much aesthetics, of aesthetics the nature say doesn't it safety on they'll you we're important the likely the more they robotaxi space the about driving. be vehicle the become and of the vehicle. sensors Robotaxi is expecting provide the in that car, them because from are Velarrays cars and the But cars focused to

lot of a for we our of a them having ago, around so very, at OEMs activity from was when extended Velabit lot of seeing very and and hear the a point good they're are feedback that. we lot with days, conversations this or month So there are

Aileen Smith

increase May, wanted there awarded contracts, and it dollar in I I on Okay, estimated into there XX XX% scope number billion is a number the to and think to or read that's adjustments in kind smaller the of contracts revenue themselves? the Is you're assumptions what and the helpful was touch then the anything or of base perhaps XX signed and bit, have previous think color been slide this despite versus of in an or to revenue to of as last compare and numbers I awarded to that XX% those think and of in some I is yet XX it quarter, your size similar XXXX revenue winning pipeline? signed quarter. contracts

Drew Hamer

some those forecasting or contracts starting for the any with the the seeing businesses, conversation is a the information important of agreements expand industrial are and yet, past to on is activities expand substantially just in nature because looking potential to probably their continue is and about next while coming the will additional reason very dollars we kind be because But this some MYA so so quarter. more customers smaller of the we talked providing as these XXXX not why of which others to do the Yes, the rather we're that with MYA automotive very you XXXX we are years. activity. But, of numbers billion slightly recent continue out will larger start

reliable, bit the numbers now continue these we're and is So, will as something these anticipate time right towards they're grow. turning P&L, which to adding more past additional and that become numbers ensuring we're we goes working little a for contracts into confident

Aileen Smith

process Okay, you and it's perhaps color of that your maybe as industrialization last and it one some may, it as provide what can if referenced is you the production sounds, sounds you anticipated. and this more quarter, the it then worse particularly delay if quarter offshore a more incrementally little specifically I on moving bit in

itself that about resolving you the of So think to remainder through track? the completed on that outstanding still industrialization year, what's needs back process that will get as be the

Drew Hamer

if a He's He's any for the don't to some know, He's color you up. COO. rodeo month seasoned I'm You evaluating Jim is our and Barnhart. had as at there's isn't additional evaluated new he's if Jim? a add and I'll some this here with follow He then end many, his introduce going got this. COO. feedback first other mind COO questions

Jim Barnhart

here work the years. towards assembled, the San have full to with really Jose facility question in and strategy contract final good we're having our moving testing. the done was our back the for Aileen, manufacturers being have Their to certainly sent contract and for Pucks been Pucks manufacturer. at then And Thanks,

variant. with what's COVID, in resurgence that's both the been unfortunately hard frankly and process as is of it in Thailand So they with fairly Japan, delayed manufacturers hit facility our the contract as well Delta in have

Alpha allowing Puck's, up, some properly delayed things the well, certainly the the but cetera, to to it in it's already somewhat again to getting Japan, transition is Prime make are pandemic. aligned facilities, the travel as and contract manufacturer there's been the engineers in our there sure we're So delayed completely COVID Ultra but unfortunate or equipment calibrated, not help been the resurgence that moving that the with with but delay due of and that set et has just has process in with the timing of forward

Drew Hamer

comment in MXXXX I HXXX, even those well, product. sorry, of the phases progress but of as various transitions we're also, the were as guess could and designs I finalizing the Velarray, the

already if well. modules in the into sub you process are full manufacturers the assemblies, being that go contract module, So to those as will, the lidar transitioned these

slid the slowed has bit right, is bit a So, your that to to point but really of it's for to down resurgence the things little a due here. COVID

Aileen Smith

commentary. Okay, Thanks the taking very questions. great, that's helpful for

Drew Hamer

Okay, thank you.


ahead. from Michael go Please Our Berenburg. of next comes Filatov question

Michael Filatov

some of believe question ramping analyst's a in one my just to delivery out put about question. for presentation ago, and XXXX up my while fellow earlier thanks said asked that put XXX,XXX that XXXX. follow that for and been there to XXXX to guess a customer. taking yes, on Oh was last wanted an XXX,XXX I by I earlier out numbers that units had related you customer in mile

rather So think the projection. I important

So customer any your I'm have stated is, mean, additional but other agreement just just Is those don't backlog, customer comment? volumes play? obviously I still the you in still multiyear wondering, that are I in mean

Drew Hamer

in customer still the the is Sure, multiyear agreement backlog.

guidance in from other I in suggest some with can other think, not change anything it's of to the as also where things believe the right any of that up. of others projects if we we're priorities not that unreasonable activity that move the now, move but could might But giving are down direction. some customer's coming any XXXX move

with our of relationship kind products in beauty multiple of business is, multiple industries that with So we're multiple customers.

many would So as fill in it. if we solutions even so it that that one believe are relates there that customer, other there that, probably different did opportunities slip, to

Michael Filatov

step annualize you year? $XX maybe just revenue, this lump targeting sort have from back and the sort Got year year, that's you is the there in unit half. I pretty licensing at of the maybe for of coming down, would license be back looking terms million out prior in even one-time of adjustments be robust a in would it out then services the impact achievable. XX to of looks the maybe in million we're percent like so the it, run number that I back wrong up even first revenue, if going I'm to may up time of you're licensing on $XX I first rate, one know, guess with that be if or the like quarter. growth plus half, me be in volume you like your the back and like that I half but back seems It is But coming services don’t is services a is ASP's it know mix thanks. growth of back from sum, the growth that if unit guess volume drive And I what sort the that looked unit less, tell or top mean, the maybe from there. volume half into baseline mean, talking, could ASP

Drew Hamer

talk sensors year, by half second expect the of in least at of about did the the I volume we quarter. So

So that it's trying quarter take ASPs of for they're said, and you think I more one -- then be going together. probably that. can to ASPs be can trend not to like put you We a to going applying linear

be could opportunity the significant will unit from QX overly might any NRE NRE's you deltas it And conservative, probably us in in So [ph] and be taking ASP's. then is just made up what get pretty volumes ASP's right between the for if now. you

Michael Filatov

for near question get Faraday Future. Velodyne thanks. wanted recently then we've obviously of you other sort the I activity around you just space, Yes guys guess, competitors thoughts I'm OEMs. this just as the awards I'm mean, been ADAS last seen your those from competing have outside of to for to from awards of several mean in curious, And sort one why selected awards. I the been term think, hasn't I

that as Just could think that to any commentary you why be?

Drew Hamer

your anything Yes, expecting not I'm it's we're year but when conversation we because not in see so. or interesting what is, significant an awards, near the anybody the sure talk term next about to

finding the need and some currently had are not at is a years awards, their can conversations near of sensors capable the who that to production term mentioned to more be they are back we've be be to who to to are Lidar to unable meet of are who out. deliver and that where still levels confident volumes have previously providing perform might ones are producing order are discussed was of expected, the startup produce relationship able level selected that that customers in able of and their they're their and the the the they sensors will in most Velodyne a announced seen at in release with us earlier, coming they awards the to also be targets, accuracy going the So, to or systems. need sensors because people there like those couple we've We play. out heard believe we've We lot

gotten story, evolving so this far. but is, we've that's an it's So, what

change of more we and so feel coming So stage the out R&D they're we of play of them. the discussed we years. some still this really We and are at kind in see are of aware we'll could like and kind look could dynamic some still, them them of just

Michael Filatov

Understood, thank color, appreciate you the it. I for

Drew Hamer



like our question-and-answer remarks. conference to Mr. the I to session. now concludes This Hamer would closing any back Drew turn for over

Drew Hamer

Thank very joining much everybody for today. us

and industries many sensors starting lidar many for the is so of the traction and their see here Lidar different world in customers. excited of different the and adoption the so at -- very in many so are what We parts to Velodyne different we're

take we the it with as as to forward. forward have shape Thank to and forward this talking goes seeing a and leading in be it continue evolving go you. major we wonderful afternoon. more look to this forward, looking you'll and Hope So space market you player


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