VLDR - Velodyne Lidar stock plunges 16% after third quarter earnings results

• Velodyne Lidar ( NASDAQ: VLDR ) stock fell sharply on Wednesday despite posting lighter than expected loss for third quarter .
• The California-based lidar sensor company reported a loss per share of $0.13, notching a beat of $0.08 from market consensus.
• Revenue fell 26.5% during the quarter to $9.6M, almost in-line with the consensus. It includes an approximately $2.9M contra revenue impact from the Amazon warrant vs. $1M impact in the second quarter.
• Billings were flat sequentially to $12.5M
• Non-GAAP gross loss reached $3.3M, down from $4.2M in Q2 2021.
• The company ended the quarter with $220.1M in cash and short-term investments as of September 30, 2022, compared with $229.2M as of June 30, 2022.
• Q4 2022 Guidance: Billings expected to range between $13-$15M; Revenue forecasted to range within $12-$14M vs. consensus of $11.51M.
• "The difference is due to estimated non-cash contra revenue of up to $1M related to the Amazon warrants.....Our gross margin improvement plans are in full motion and, when combined with the company-wide cost rationalization efforts, we are reducing cash usage and driving toward breakeven," commented CEO Dr. Ted Tewksbury.
• VLDR shares are down 16% on Wednesday to trade at $0.71 vs. 52-week trading range of $0.72-$7.15 .
• Velodyne Lidar has agreed for 50:50 partnership to merge with peer Ouster (NYSE: OUST ) in an all-stock deal. Closing of the transaction is expected in the first half of 2023 , which will see each Velodyne exchanged for 0.8204 shares of Ouster.
• On Tuesday, Baird shifts to the sidelines on Ouster amid macro, merger uncertainty .

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