Q3 2022 Ouster Inc Earnings Call
Good afternoon, and welcome to <unk> third quarter earnings Conference call.
All lines have been placed on mute to prevent any background noise.
After today's presentation and remarks, there will be an opportunity to ask questions.
You would like to ask a question. During this time simply press star followed by the number one on your telephone keypad.
If you would like to withdraw your question again press the star one.
The call today is being recorded and a replay of the call will be available on the ouster Investor Relations Web site an hour after the completion of this call.
And I would like to turn the conference over to Sarah Ewing Director of Investor Relations. Please.
Please go ahead.
Thank you operator, and good afternoon, everyone. Thank you for joining us for 2022 third quarter earnings call.
Im joined today by our Chief Executive Officer, Angus, Nicola and Chief Financial Officer on it for now.
Before we begin the prepared remarks, we would like to remind you that earlier today <unk> issued a press release announcing its third quarter results and our proposed merger with <unk>.
Company also published an investor presentation, which is available on the Investor Relations section of Astro Dot com.
I would like to remind everyone. During the course of this conference call <unk> management will discuss certain forward looking information regarding the company, including forecast target state in December press release potential future customer orders and shipments.
And long term revenue opportunities strategic customer agreements market share trends. The company proposed merger of equals with teledyne ability to recognize the benefits of cost saving initiatives future products anticipated benefits and applications with new product releases technological background in commercial past potential future market opportunity.
Customer traction and the company's business outlook, and 2022 financial guidance and trajectory that are intended to be covered by the safe Harbor provisions of the private Securities Litigation Reform Act of 1995 for forward looking statements and should not be regarded a representation that such plans estimates and expectations will be achieved.
While these statements represent management's expected future results and performance <unk> actual results are subject to several risks and uncertainties that may cause actual results to differ materially from current expectations that we may share with you today.
In addition to any risks highlighted during our call you should carefully consider other important risk factors and disclosures that may affect our future results as described in its most recent annual report on Form 10-K quarterly report on Form 10-Q, and other reports the company filed with or furnished to the SEC.
Except as required by law or regulation. The company undertakes no obligation to update any of these forward looking statements for any reason after the date of this call.
Lastly, information discussed on this call concerning the company's industry competitive position in the markets in which it operates is based on information from independent industry and research organizations. Other third party sources and management estimates, which are derived from publicly available information released by independent industry analysis and other third party.
Horses as.
As well as data from the company's internal research and are based on reasonable assumptions in computation made upon reviewing such data and its experience and knowledge of industry and market.
By definition assumptions are subject to uncertainties risks, which could cause results to differ materially from those expressed in the estimates.
During this call we may discuss certain non-GAAP financial measures, which exclude the effects of events and transactions, we consider to be outside of our core operations as outlined in our press release.
These non-GAAP measures should be considered as a supplement to and not a substitute for measures prepared in accordance with GAAP.
A reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures. Please refer to today's press release I would now like to turn the call over to <unk>.
Thanks, Sara good afternoon, everyone and thank you for joining us today.
<unk> had a terrific third quarter.
We delivered over $11 2 million in revenue, our second highest quarter ever representing a 44% increase over the third quarter last year.
We shipped 2136 centers worldwide for an average selling price of $5246.
So while also recording the highest gross margins in <unk> history at 33%.
We continued to grow our business with approximately 80, new customers, bringing our total 12 months customer count to approximately 700 crossover 50 countries.
Adding four new strategic customer agreements or SDA is during the third quarter, bringing our total current FCA count to 84.
While we delivered strong quarterly growth supported by a world class commercial and operations teams. We also executed on our product roadmap and doubles, our serviceable obtainable market through the launch of our breakthrough <unk> chip or upgraded OS sensor suite rub seven and with it our all new <unk> Center. This is our largest expansion install.
Since first entering the market and a game changer in our ability to win an expanded set of deals.
Our focus on digital semiconductor design continues to set us apart in the lidar industry.
Digital products aligned with the exponential performance path of Moore's law to eventually displaced legacy technologies.
Engineered with state of the art <unk> backside illumination the <unk>.
<unk> three chip packs, an incredible amount of processing capability within our compact die area.
With 125 billion transistors on chip and a maximum computational power of $21 $4 seven Giga Max the <unk> is capable of accounting and processing approximately 10 trillion photons per second.
This allows the sensor to output up to $5 2 million points per second while consuming less power than previous generations.
A 10 X increase in photon sensitivity enables our <unk> sensors to deliver two X increase in range of 50% improvement in precision and seven X improvement and the object detection and the new features that we can now offer our approximately 700 customers and many more prospective customers across our vascular.
Markets.
With the extended range of <unk> seven we're unlocking an all new category of long range and higher speed use cases essential for many robo taxi shuttle bus and truck operators.
The <unk> 700, <unk> two opens up the unique ability to track vehicles and objects beyond a quarter mile in all directions.
The Tenex signal improvement of the <unk> III also improves Nir range detection automotive industrial customers of late can expect incredible detection performance challenging objects, such as tires black cars cables fencing or the forecast on a forklift.
This also makes <unk>, an excellent fit for mapping applications, where the combination of longer range high point density and upgraded precision are based on direct feedback from this customer set.
We're seeing incredible demand for red seven from our customers.
First we have seven customers signed a multiyear FCA for several hundred OS one <unk> through 2023.
After working with us for some time the performance and reliability increases of <unk> seven made it clear center of choice for scaling production of their commercial applications, including transit buses class eight trucks and yard trucks.
We are also seeing traction with early adopters of the <unk>, including some of the world's largest companies one of which has already ordered several hundred sensors for initial rollout of crowd analytics technology in their retail stores.
Our partner Sky Fi a global software Technology Company is also an early adopter of <unk> and plans to offer the sensor as part of its crowd analytics solution to help businesses enhance the guest experience boost revenue and optimize operational efficiency.
<unk> announced or have double active crowd analytics deployments across the globe, including at international airports major event venues and retail stores.
With the unique capabilities of <unk>, we are better positioned to sell into more use cases and scale deployments with existing customers.
We're thrilled with the product performance of our new <unk> suite and fantastic early response from customers. We're excited to get the products into <unk> this quarter as we ramp production and shipments.
The benefits of Red <unk> performance upgrades will also support <unk> recently released <unk> industrial sensor suite configure to beat the unique requirements of forklift port equipment, and autonomous mobile robot manufacturers with high volume pricing to enable adoption on production fleets complemented by the all new lowest element where the hemispheres.
Field of view for Florida ceiling and wide area coverage, our industrial sensors are an excellent fit for material handling applications. We expect these new offerings to accelerate expansion into the estimated 15 billion warehouse automation markets.
With the incredible range and precision improvements at the <unk> III powered reps seven we now offer the highest performing family of sensors on the market.
It also provides a glimpse of what will be possible by applying the same advancements to our upcoming digital flash for DS sensors for automotive applications.
The advancements in the <unk> architecture paved the way for <unk> upcoming Kronos chip the automotive grade fully custom digital lidar silicon receiver that will power, our DF sensors, which is slated to be integrated into the first you have two units in 2023.
Automakers and tier one to like have responded with consistent amazement after seeing the incredible performance of our first DFA samples and are eager to begin testing would be samples next year.
While product features and performance upgrades will represent a major growth drivers for our business for the foreseeable future. We also have a significant axis on which to catalyze new business vertical specific product that safety certifications as well as software solutions.
We're on track to achieve <unk>, B and Ietf 16, 99 functional safety certifications for automotive <unk> safety certifications for industrial and NEMA TST certifications for smart infrastructure applications within the next 12 months to 24 months.
The mechanical and electrical upgrades, we made to our OS sensors with Rep, seven put us even closer towards achieving these market expanding certifications. These included reducing their power draw and doubling the resistance to shock and vibration, while maintaining the same small lightweight and power efficient form factor design of previous generations.
All Rev. Seven sensors include approximately 95% automotive grade components feature an upgraded FPGA that is qualified for functionally safe automotive and industrial applications and offer an option for 1000 base tier one automotive Ethernet.
We also see an immense opportunity to speed, our customers time to market build stickiness and drive higher margin revenues through vertical wise software solutions.
We continued to build a robust software ecosystem built on three foundational pillars.
Our best in class software development experience that provides resources and tools to reduce our customers' time to test validate and integrate our sensors.
An expanded partner platform to bring targeted solutions to our customers.
And vertical wise software solutions that drive new customers and higher margin revenues.
In the third quarter, we released an updated version of the ouster SDK and new firm, where we can.
<unk> continued to expand our partner platform and started working with applied intuition a provider of software solutions for autonomous systems development, including sensors stimulation to create test and release synthetic models of our lidar data to empower customers to generate synthetic data that accelerates the deployment of perception systems.
This is just the beginning of what's in store for our software ecosystem and we're excited to share more about it early next year.
I'm as confident as I have ever been and our ability to make ousters digital lidar sensors of choice across the economy and intelligent infrastructure applications. I believe we have a clear and winning strategy to make our technology more affordable more performance and more ubiquitous.
That said execution on our strategy requires thoughtful capital management.
This in mind, we took proactive steps to optimize our cost structure and reduce our gross cash spend in the third quarter.
While these steps bolstered our cash runway and path to profitability. We are taking advantage of another exciting opportunity to accelerate the adoption of lidar across fast growing markets and further strengthen our financial position merging with valid items.
This morning, we announced our plan to merge with Teledyne in an all stock merger of equals transaction that is expected to drive significant value creation for our customers our company and our shareholders.
As one combined company led by me as CEO and Ted Tewksbury as executive Chairman of the board.
We will be a leading light our company with a deep history strong balance sheet industry, leading technology and world class commercial organization together, we can offer robust product offerings, including vertical is software to serve a broader set of customers. We expect the proposed merger to unlock significant synergies, creating a company.
The scale and resources to deliver stronger solutions for customers of society, while accelerating time to profitability and enhancing value for shareholders.
Overall this proposed merger accelerates our ability to reduce product costs through volume purchasing and scaled manufacturing.
Develop a combined product roadmap of low cost performance sensors that aligns with the future needs of the market cast a wider net to reach a broader set of customers and strengthen our competitiveness against other established I'm think modalities like cameras and radar.
We're excited to build on both of our strengths and look forward to providing the market with more information around the combined company strategy upon closing, which is expected in the first half of 2023.
For more information on the proposed merger please refer to our joint release and webcast published on both companies' websites earlier today.
I'll now turn it over to our CFO <unk>, who will provide an update on our third quarter performance and our expectations for the remainder of the year.
Thank you Angus and good afternoon, everyone.
<unk> stated in the third quarter of 2022, we recorded our second highest quarterly revenue of $11 2 million up 44% over the third quarter of 2021 and up 8% over the second quarter of 2022.
We shipped 2136 centers in Q3 of <unk>.
31% increase over the third quarter of 2021.
Which amounts to approximately 16000 sensors shipped to date.
Continuing our positive gross margin traction we saw further improvement in the third quarter delivering the highest gross margin in <unk> history at 33% up from the 24% gross margins recorded in the third quarter of 2021.
And up from the 27% gross margin recorded in the second quarter of 2022.
Over the course of the third quarter, our average sales price per unit remained strong at over $5200.
We saw a slight decrease in our cost per unit sold at approximately $3500 due primarily to lower purchase price variance in the quarter.
Oster continues to have the highest hardware gross margin profile of our public light our peer group validating our leading cost structure associated with our Cmos digital lighter architecture, which enables high scalability in both performance and cost.
In the third quarter, we sold sensors to approximately 80, new customers with growth seen across verticals and particularly out of the Americas as well as Europe Middle East and Africa.
Additionally, through the end of the third quarter, we increased the number of SCA to 84 from 80 recorded at the end of the second quarter of this year.
Our largest revenue growth from new and existing customers was founded in the industrial and robotics vertical accounting for 38% and 37% of sales in the third quarter respectively.
In line with ongoing global trends.
Growth included substantial orders from material handling and drone inspection customers as well as for robotic security applications.
We also continued to see meaningful traction in our automotive and smart infrastructure vertical with other large orders from customers for trucks and buses as well as in the expanding crowd analytics space.
Alistair is able to capitalize on a broad range of opportunities to support steady growth, which is exemplified by our approximately 700 customers, including a growing number of multiyear FCA across our four market verticals.
While market uncertainties can impact our customers ramp rates and estimated forecast.
Our flexible demos digital architecture enables us to sell into multiple vertical eliminating dependency on adoption within a single market.
Turning to our expectations for the remainder of the year.
We are reiterating our full year 2022 revenue guidance at $40 million to $55 million and gross margin target of 25% to 30%.
Despite ongoing macroeconomic pressures, resulting in staggered or delayed ramp rates for some of our customers. We remain confident in our bottoms up analysis for 2022.
And our ongoing competitiveness in the market.
During our second quarter earnings call, we announced three pillars to strengthen <unk> financial position.
Including target spend strategic.
Strategic fundraising and accelerated growth.
In the third quarter, we continued to make progress in line with these objectives.
First for target spend we announced cost reduction initiatives to lower gross cash spend across operational expenditure capital expenditures and inventory.
This represents a reduction of more than 15% compared to annualized growth cash spend based on the second quarter of 2022.
Second.
Kissing on strategic fundraising efforts.
<unk> $1 8 million through the at the market offering which was suspended in September down from approximately $15 million in the second quarter.
At the end of the third quarter, we maintained a cash balance of approximately $135 million.
Further in October we received lender consent for the planned merger of equals and drew the remaining $20 million on the first tranche of our term loan facility.
Finally, ouster took additional steps to accelerate growth across each of our submarkets through targeted commercial effort and the launch of our groundbreaking rep. Seven OS sensor products powered by the <unk>, which doubled ousters collective serviceable obtainable market by opening up new opportunities.
Primarily for longer range and mapping applications.
Collectively traction across each of these pillars target spend strategic financing and accelerated growth provide ouster with additional flexibility to execute on our business plan.
And of course as announced this morning after looks to bolster our position within the market through the proposed all stock merger with <unk>.
We look forward to providing more information about our combined company strategy. Following the closing which is currently expected to occur in the first half of 2023.
I would now like to turn the call back over to Angus.
Thank you Ana.
<unk> is focused on building a great team and great products scaling the adoption of digital lidar across our fast growing end markets and building a profitable business that can sustain our growth.
We remain energized about the remainder of 2020 too excited about upcoming product announcements slated for early next year and eager to close the proposed merger with <unk> to accelerate the adoption of Lidar bolster our financial position and drive sustainable growth and shareholder value on our mission to building, a safer and more sustainable future.
And with that I'd like to open it up for Q&A.
Thank you.
Four we open the call to questions I want to remind everyone.
Mr Management will only address questions in connection with <unk> on a standalone basis exclusive of the proposed merger with anixter, which remains subject to completion.
With that we will now begin the question and answer session to ask a question you May Press Star then the number one on your phone. If you are using a speakerphone. Please pick up your handset before pressing the keys.
To withdraw your question. Please press star one again.
When called upon please limit yourself to two questions.
Our first question today comes from the line of Kevin Cassidy with Rosenblatt. Please go ahead.
Yes, Thanks for taking my question and congratulations on the strong results and also on the announced merger or proposed merger.
Just one question your range for the year.
40 million to $55 million what are the factors.
For reaching those numbers it seems like a large range at this point in the year.
Yeah. Thanks for the question, Kevin do you want to cover that.
Yes happy to I mean, I think Kevin were really expecting to have a great Q4 and hit our guidance given the Rev. Seven launch and just the immense customer interest we're seeing from that.
And we saw our customer count this quarter increased from about 600 to about 700, and so our funnel is really strong and we just are looking forward to having a great.
Q4.
And then similarly, we saw margins.
You may remember, we guided to 25% to 30% on margins Q3 came in at 33% the highest in our history and so all of those things together it really gave us strong confidence in reiterating our guidance.
Okay, Great and yes, the Rev. Seven was very impressive launch.
That you are ready to ship at all.
As soon as you announce that.
Very strong.
Can you say what percentage of your revenue do you think Rev. Seven or is it going to be significant in the first quarter or will it be more of a ramp into 2023.
Hi, Kevin Yes, that's a great question so.
We will absolutely be ramping into red seven eventually being.
The vast majority of our revenue.
But we typically ramp production between our visions across multiple quarters and seven will be no different so we will ship significant revenue.
<unk> revenue this quarter.
But it will take a couple of quarters before we.
Really transitioned to the majority of revenue coming from that that line.
Okay, great. Thank you.
Your next question comes from the line of Andreas Shepard with Cantor Fitzgerald.
Please go ahead.
Hey, guys. Good afternoon. Thanks for taking my question and congrats again on another strong quarter.
A couple of quick questions for me in regards to the strategic customer agreements it looks like that number increased to 84.
Can you just let us know what does that translate in terms of revenue opportunities through 2026 and maybe.
When do you expect those to start materializing or ramping up.
Yes.
Yes, so a couple of points here. Thanks for the question.
The first is that at the beginning of the year, we chase.
Changed our approach to strategic customer agreements to require that they all have a binding component. So.
We increased the threshold for signing <unk> and <unk>.
Really important note so.
All FCA signed this year have a binding component and we're realizing revenue off of those those signed deals already so those are already taking effect.
And then to your question on.
Potential contracted revenue opportunity.
Youll notice that we left that out of our earnings release, we chose to leave it out because while the number has gone up.
We have seen from our customers our reluctance to provide concrete updates in some cases to their forecast just given kind of market uncertainty macroeconomic climate and instead of giving a number.
We just wanted to give a number that we can stand behind on this case.
But we've run into a situation, where we don't feel we can stand behind the number even though it's technically has gone up we don't feel we can stand behind it. So we're.
And how we can revise our approach to contracted revenue opportunity in the case that customers are having difficult difficulty forecasting their businesses again. The reason they might be having difficulty is because of the supply chain uncertainty things like that that are impacting their ability to shut in some cases so.
Trying to be perfectly open on why we left that out and hopefully that makes sense, but overall, what's critical is FCA accounts are continuing to increase we raise the bar at the beginning of the year and now we're at 84 of these signed active contracts, which is a fantastic place to be given where we were.
A year and a half ago, when we went public.
Okay understood. Thanks, Angus no that's very helpful. Indeed.
Maybe for my follow up.
As it pertains to the to the merger with <unk> I'm curious how do you foresee your capital needs changing if at all thank you.
Okay.
Yes, I mean, a big part of this merger is the.
The opportunity to build a.
Strong company financially.
So.
Absolutely one of the goals here is to limit the need for.
Outside capital and then limit dilution.
At the close of the deal.
No we haven't provided a.
Fleet outlook forward looking outlook, we'll do that upon close of the deal in the first half of next year.
But absolutely a major benefit here is that it provides much more clarity on the path to profitability as a combined company.
Wonderful Thanks, Angus Congrats again, that's it for me I'll pass it on thank you.
Your next question comes from the line of Tristan <unk> with Baird. Your line is now open.
Hi, This is Tyler on for Christian Thanks for taking the questions building off the previous question should we expect cash burn to accelerate or slow in the next two years as revenue hits, an inflection point, but more spending will be needed to ramp production.
Got it.
Thanks for the question.
Thanks for the question there so.
We expect our cash burn to decrease overtime.
As the company grows so we've outlined as part of the deal.
As much as $75 million in cost synergies between the companies.
With a combined $355 million in cash on hand as of Q3 between the two companies.
And <unk>.
We expect to.
This provides better clarity on the path of profitability for the company, meaning reduce cash burn overtime no question. So.
Hopefully that provides some clarity there.
Yes.
A little bit.
I was just going to say I could build on that a little bit too if you don't mind.
Whereas we said seeing just incredible reception with <unk> seven and we expect to continue to see increased demand for digital Lidar and so obviously as that top line grows we feel we have the right cost structure is in place to get us on that path to profitability and so if you look at the cash used for EBITDA. So far this year.
We've used about 23 or $24 million per quarter each quarter. This year and we expect Q4 to be similar and then I think we've mentioned before on the Capex side, we don't need a significant amount of capex to run our business. We previously said, it's about $5 million or so per year.
And it's a little lumpy per quarter, but about $1 $5 million per quarter, and so that covers us for tape outs and equipment for manufacturing capacity increases and such generally and so I think as we see our top line grow as we continue to introduce these great products.
We feel we have the right cost structure in place in place to get us on that path to profitability.
Okay, Great Yeah. That's super helpful. For my follow up what is the current situation with Valentine's IP I know that they were in contention with the Chinese supplier of Lidar for patent infringement and a licensing deal was put in place does that going to be relevant going forward from a revenue standpoint.
Okay.
Yes. Thanks for the question, we haven't provided insight in that level.
Detail on the combined company, our expectations around revenue mix, but we will be providing a much more fulsome update when the when the deal closes.
Great. Thanks, again for taking the questions.
Your next question comes from the line of Brian Dobson with Chardan capital markets. Your line is now open.
Yes.
Yes, thanks, very much congratulations on the <unk> chip launch and the merger announcement.
So I guess first turning to turning to the chip launch do you see your revenue mix by end user industry shifting does that new technology is introduced.
I, absolutely think there will be some shift because one of the things we've highlighted with this releases that we've doubled our song or serviceable obtainable market.
And that that has allowed us to tap into new longer range markets. The mapping market, where there's a need for higher precision accuracy and range as well and so over time I do expect to see.
New use cases introduced in a shift.
But not a shift because of a move off of other markets. It's just an expansion of the overall opportunities that way.
We're addressing.
Yes excellent and.
You mentioned.
Obtaining vertical safety certification for your new sensor technology.
Which of your core verticals offers the most opportunity as those certifications.
Yeah.
That's a really interesting question and it depends on what time scale Youre looking at.
One of the one of the things about <unk> is our diverse our early diversification into industrial smart infrastructure and robotics alongside our core strategy in auto.
And that's because there's an established market.
Especially in the industrial ladder sector over.
$2 billion market today, So I would say there is a significant near term opportunity for the industrial certifications.
But but setting that aside the automotive sector. There are a lot of companies that are interested in automotive grade automotive quality.
Whether or not they are true high volume automotive applications. So I think theres going to be a significant impact positive impact on the automotive certifications and Luckily there is a lot of overlap between those two certification set so we can tackle them at once which is what we're doing.
Excellent.
I'll just sneak a quick one in about the merger. So you mentioned that the two companies have complementary customer bases can you just give us a little bit more color on valentines core business segments or customer segments.
Thank you.
Yes, I think that.
Question specific developed I mean, it's definitely ask them, but.
On the complementary.
<unk>.
<unk>.
One of the things that is common between us as a diversification across markets and there's natural complementary.
Our.
<unk>, that's going to happen as a result of the merger just because we are two companies.
Two of the few companies that are diversified across markets more than just auto.
So we see an opportunity to.
We provide a really robust set of products.
And customer success that combines the best of each company and the learnings that we have.
From operating as independent businesses for the better part of the past decade.
Great. Thank you very much.
Your next question comes from the line of Richard Shannon with Craig Hallum. Your line is now open.
Hi, guys. Thanks for taking my question, maybe my first one for <unk> on your.
Guidance for the year here, both on sales and gross margins via the ranges here are pretty wide and if you look at what numbers could give both the high and the low end here, it's pretty wide bolster revenues and gross margins.
I think you just mentioned.
Answer to your question about EBITDA being in a similar maybe slightly improved level versus last quarter. So it seems like.
You've kind of pinpointed, what those might look like versus a fairly wide range still left on the for both those numbers here. So maybe you could comment or help us kind of narrow that down a little bit from the wide regions you have yourself.
Yes, I mean, we're like I said before we're expecting to have a great quarter, we're already seeing traction from Rev. Seven.
40 to 55 range was already in existence going into this quarter.
And.
And so it's still accurate so we kept it.
But yes, we definitely expect to have a great quarter and as I said, our customer count continues to increase.
And.
Just just our line of sight gives us very strong confidence that we will be within that range.
Okay Fair enough a follow on question for Angus last quarter, you talked about.
Macro is seemingly affecting some of the sales cycles within a number of your.
End markets here, and obviously you had a good quarter growing nicely here with some continued strength in industrial robotics, maybe you can give us a comment Kevin updated comment versus last quarter on on whether the sales cycles are.
Staying the same improving lengthening and any <unk>.
Areas, where it's.
Kind of at the edge.
Just either positive or negative by product line in markets or geographies. Please.
Yes, I think that the comments I made last quarter and those observations are still hold true this quarter and Thats why were sticking with our guidance, we revised that as of Q2 and sticking with it and expect that.
You know what.
We'll hit it.
So I think that maybe what has changed is really the what we've done internally by releasing these new products really seemed the industrial sensor suite, releasing <unk> seven and the <unk> III that's generated a significant amount of.
External interest.
Kind of additional new interest in our products.
But that's kind of irrespective of the macroeconomic climate, which I think remains pretty similar to last quarter.
Okay Fair enough that's all for me thanks.
And this does conclude our question and answer session I would like to turn the conference back over to Angus Mccullough for any closing remarks.
Alright, well, thank you all for joining and for the questions.
I'm incredibly excited about the merger with <unk> that we've announced as of today and the positive impact that we're going to have through it for customers and for investors and for the maturation of the ladder industry as a whole.
We think consolidation is an important step for this industry and glad to be leading the way here.
I'm also equally proud of what elster accomplished in the third quarter, we had a record gross margins, we had our second highest revenue quarter with over with over 40, 44% year over year growth and we launched the ultra powered <unk> sensors, which expand raw performance.
To an extent, but I think few thought was possible with digital lidar.
With Red seven digital light really is hitting its stride and theres plenty more to come in 2023 across our product portfolio. So thanks again for joining and have a great evening.
Ladies and gentlemen, the conference is now concluded. Thank you for attending today's presentation. You may now disconnect your lines at this time.
Please wait the conference will begin shortly.
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Yeah.
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[music].
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[music].
Thanks.
[music].
Yeah.
Yeah.
[music].
Okay.
Please wait the conference will begin shortly.
Yes.
Yes.
[music].
Okay.
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[music].
Yeah.
Yes.
<unk>.
Yes.
[music].
Hum.
[music].
Yes.
[music].
Yes.
Yes.
And.
Yes.
[music].
Yes.
[music].
Yes.
Yes.
[music].
Sure.
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[music].
Please wait the conference will begin shortly.
Yes.
<unk>.
Yes.
[music].
Yes.
Okay.
[music].
Yes.
Yes.
Yes.
Yes.
[music].
Thank you.
[music].
Yes.
[music].
Yes.
Yes.
And.
Yes.
[music].
Okay.
[music].
Please wait the conference will begin shortly.
Yes.
[music].
Yes.
[music].
Okay.
No.
[music].
Yeah.
And.
Yes.
Yes.
[music].
Thank you.
Yes.
[music].
Yes.
[music].
Yes.
Yes.
And.
Okay.
[music].
Okay.
Yes.
No.
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Yeah.
Yes.
[music].
Please wait the conference will begin shortly.
[music].
Great.
[music].
Yes.
Yes.
Yes.
Yes.
[music].
Thank you.
Yes.
[music].
Okay.
[music].
Yes.
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[music].
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[music].
Sure.
[music].
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Yes.
[music].
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[music].
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[music].
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[music].
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[music].
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[music].
Yes.
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[music].
Yes.
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Yes.
[music].
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[music].
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[music].
Please wait the conference will begin shortly.
Sure.
<unk>.
[music].
Okay.
Yes.
[music].
Yes.
Yes.
Yes.
[music].
Yes.
[music].
Yes.
Yes.
[music].
Yeah.
Yes.
[music].
Yes.
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No.
[music].
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[music].
Yes.
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<unk>.
[music].
Please wait the conference will begin shortly.
[music].
Okay.
Yes.
[music].
Yes.
Yes.
[music].
Yes.
[music].
Yes.
Yes.
And.
[music].
Yes.
[music].
Please wait the conference will begin shortly.
Yes.
[music].
Great.
[music].
Yes.
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Yes.
Yes.
[music].
Yes.
[music].
Okay.
[music].
Sure.
[music].
Please wait the conference will begin shortly.
[music].
Yes.
[music].
Thank you.
[music].
Yes.
[music].
No.
Yes.
Yeah.
[music].
Yes.
[music].
Sure.
Yes.
[music].
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Yeah.
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[music].
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[music].
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[music].
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[music].
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[music].
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[music].
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Yes.
[music].