Fresh out of its merger, Ouster-Velodyne bets on smart infrastructure – TechCrunch
Both Ouster and Velodyne recently launched smart infrastructure offerings. Last October, Velodyne acquired artificial intelligence software company Bluecity and began offering a transportation infrastructure product that combines lidar with software to provide real-time traffic data and analytics. Bluecity has about 80 installations in the United States and Europe, according to Pacala.
At CES this year, Ouster debuted Gemini, a similar product that covers traffic, safety, and crowd and retail analytics. Ouster is already working with Cisco in two US states to provide a road user detection solution with real-time safety alerts, and with Digital Mortar to analyze crowds in a new convenience store model in New York and New York. England. The company also engaged OpenSpace Group as a client to understand passenger flow and improve customer experience at Euston Station in London.
“We can combine the best of both offerings into a unified platform,” Pacala said.
Tackling the surveillance camera market is a big gamble, but it could certainly prove lucrative. Globally, the market was valued at $28 Billion in 2021 and is projected to reach $45.54 Billion by 2027. Similarly, the global Intelligent Traffic Systems Market was valued at $9.7 Billion dollars in 2021 and experts estimate it will reach $27.6 billion by 2030.
“That’s way bigger than the automotive sensor market as it exists today,” Pacala said. “And I think it’s faster to deploy because it’s not security critical. In almost all cases, these are fixed sensors analyzing the environment and not a potentially dangerous mobile vehicle in the event of a malfunction.
Learn more about the Ouster-Velodyne merger
In November, Ouster and Velodyne agreed to merge in an all-stock transaction, with both companies retaining a 50% stake in the new company. The combined company will retain the Ouster name and will trade on the New York Stock Exchange under the symbol OUST.
Velodyne ceased trading in shares on the Nasdaq after the market closed on February 10, and each Velodyne share was exchanged for 0.82 shares of Ouster common stock.
The combined company closed the fourth quarter of 2022 with more than $315 million in cash and is on track to exceed its previously forecast annualized operating expense synergies of $75 million. A combined company with a new injection of capital will allow Ouster to cut costs and gain a cash balance that will put it on the path to profitability, Pacala said.
Companies already seem to be curbing their cash burn. Their combined cash balance as of September 30, 2022 was approximately $355 million, so together they spent less than $40 million in the fourth quarter.
Ouster plans to release its fourth quarter and full year 2022 results on March 23, but the company announced ahead of time that Ouster had met its 2022 guidance of $40 million to $55 million in revenue and $25 million to 30% gross margins, and Velodyne passed its fourth quarter. revenue forecast of $12-14 million.
Mark Weinswig, former chief financial officer of Velodyne, will fill the same position at Ouster.
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