Cepton, Inc. (CPTN) Q1 2024 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call highlighted ongoing financial challenges with significant losses and competition in the lidar industry. Although there was a revenue increase, the heavy reliance on a single partnership and uncertainties in market adoption pose risks. The Q&A section did not alleviate these concerns, with management avoiding direct answers on key issues. Despite a positive regulatory environment, the weak financial performance and uncertainties point towards a negative stock price movement.
Key Financial Performance
Total Revenue $1.9 million, an increase of 31% compared to $1.5 million in the prior year period.
Product Revenue $1.1 million, part of the total revenue.
Development Revenue $0.8 million, part of the total revenue.
GAAP Net Loss $6.8 million, or $0.43 loss per share, basic and diluted.
Non-GAAP Net Loss $8.3 million, or $0.52 loss per share, basic and diluted.
Non-GAAP Adjusted EBITDA Negative $8.9 million.
Cash and Cash Equivalents Approximately $49.2 million as of March 31, 2024.
Gain from GM Project Cancellation Recoveries $4.0 million, initial payments received from Koito.
You have reached the limit. Sign up to access full content
Get started
Operating Highlights
Ultra Lidar System: Cepton has advanced the Ultra lidar system to the B sample stage, exceeding performance expectations and demonstrating capabilities to OEMs in Japan, the U.S., and Europe.
MagnoSteer Technology: The Ultra product features proprietary imaging technology, MagnoSteer, enhancing adaptability and data fidelity.
StudioViz Lidar Simulator: Cepton announced StudioViz, a lidar simulator aimed at accelerating OEM development and reducing data collection costs.
Series Production Project: Cepton secured a multiyear series production project with a global OEM in collaboration with Koito, including a $10 million engineering services contract.
RFQ Submissions: Cepton submitted RFQs to top global automotive OEMs for both long-range and near-range lidar technologies, expecting formal decisions soon.
Revenue Growth: Total revenue for Q1 2024 was $1.9 million, a 31% increase from $1.5 million in the prior year.
Cash Position: As of March 31, 2024, Cepton had approximately $49.2 million in cash and cash equivalents.
Market Positioning: Cepton is positioned to gain market share by offering both long-range and near-range lidar solutions, catering to the expanding needs of OEMs.
You have reached the limit. Sign up to access full content
Get started
Risk or Challenges
Competitive Pressures: Cepton faces significant competitive pressures as large global OEMs are selective in adopting lidar technology, which may impact market share and revenue growth.
Regulatory Issues: The company must navigate regulatory challenges associated with automotive safety standards and compliance, which could affect product deployment timelines.
Supply Chain Challenges: There are potential supply chain challenges related to the sourcing of components for the Ultra lidar system, which could impact production and delivery schedules.
Economic Factors: Economic fluctuations and uncertainties in the automotive market may affect customer spending and investment in new technologies, impacting Cepton's revenue.
Financial Performance Risks: The company reported a net loss of $6.8 million for Q1 2024, indicating ongoing financial performance risks that could affect future operations and growth.
Project Execution Risks: The success of the new OEM project with Koito is critical; any delays or issues in execution could jeopardize expected revenue and cash flow.
You have reached the limit. Sign up to access full content
Get started
Guidance & Outlook
Ultra Lidar System Development: Cepton has advanced the Ultra lidar system to the B sample stage, exceeding performance expectations and demonstrating capabilities to OEMs across Japan, the U.S., and Europe.
Series Production Project: Secured a multiyear series production project with a global OEM in collaboration with Koito, including a $10 million engineering services contract.
Market Expansion: Actively expanding market reach with RFQ submissions to top global automotive manufacturers for both long-range and near-range lidar technologies.
Software Ecosystem Development: Announced StudioViz, a lidar simulator to accelerate OEM development and reduce data collection costs, as part of expanding software ecosystem.
Revenue Guidance: Full year 2024 revenue is expected to be between $15 million and $25 million.
Operating Expenses Guidance: Operating expenses are expected to be below $50 million.
Cash Flow Expectations: Expect to achieve positive cash flow for Q2 2024.
You have reached the limit. Sign up to access full content
Get started
Shareholder Return Plan
Share Buyback Program: None
You have reached the limit. Sign up to access full content
Get started
Key Q&A
Q:Is the $4 million gain a cash payment received in the first quarter?
A:Yes, the $4 million is a cash payment. It has been received in the first quarter.
Q:When should we expect production revenue from the new production win?
A:We'll begin collecting development revenues this quarter and sample product revenues are also starting this quarter. High-volume production revenue typically starts 2.5 to 3 years ahead of production.
Q:Will there be subsequent development revenue around the $10 million component in the second quarter 2024?
A:It's not a one-time payment. Development and milestones will continue up until the start of production, which is 2.5 to 3 years from now.
Q:Is the new auto award the same one mentioned at the end of March?
A:Yes.
Q:Will the $10 million fee be recognized in Q2 or throughout fiscal 2024?
A:All of it is recognized within Q2, with subsequent development revenues on top of the $10 million in the second half of the year.
Q:What will make up the remaining $3 million to $13 million in revenues?
A:It will be a mix of both NRE and product sales, but details are not signed yet, hence the range on the forecast.
Q:How important is it to secure a design win?
A:It puts us in a very competitive position for new RFQs.
Q:Was the StudioViz simulation platform developed in response to OEM requests?
A:Some OEMs asked for this, but many realize its necessity later in the development process.
Q:What are your thoughts on the recent NHTSA ruling for automatic emergency braking systems?
A:It's a key recognition by regulators that pedestrian deaths aren't decreasing and that new technologies like lidar are needed.
Q:What has changed in the last 180 days regarding OEMs adopting lidar?
A:There's still a strong appetite for lidar, with a shift in focus towards safety rather than just autonomy.
Q:Any update on GM's plans for using your lidar?
A:We can't go into too many details, but we are well positioned to support them once they announce their next consumer products.
Q:Can you provide an update on the Koito offer to buy Cepton?
A:We're actively working on this process, but there's no detail we can disclose publicly.
Q:Review of Unclear Management Responses
A:Management avoided giving a direct answer regarding GM's strategy and the Koito offer to buy Cepton, providing vague responses without specific details.
You have reached the limit. Sign up to access full content
Get started
Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
GM project
NRE contract
OEM project
StudioViz
Ultra lidar
Ultra product
accident
adoption lidar
advancement
braking system
cash flow
cash payment
continent
day
death
design win
development milestone
development project
development revenue
edge technology
emergency braking
fee
gain GM
history
industry technology
lesson
lidar company
lidar industry
lidar system
lidar technology
recovery
sale
simulator
software ecosystem
submission
week
CPTN Transcript
Cepton, Inc. (CPTN) Q1 2024 Earnings Call Transcript
Unknown5-18
The earnings call highlighted ongoing financial challenges with significant losses and competition in the lidar industry. Although there was a revenue increase, the heavy reliance on a single partnership and uncertainties in market adoption pose risks. The Q&A section did not alleviate these concerns, with management avoiding direct answers on key issues. Despite a positive regulatory environment, the weak financial performance and uncertainties point towards a negative stock price movement.
Cepton, Inc. (CPTN) Q4 2023 Earnings Call Transcript
Neutral3-29
Cepton, Inc. (CPTN) Q3 2023 Earnings Call Transcript
Neutral11-12
Cepton, Inc. (CPTN) Q2 2023 Earnings Call Transcript
Neutral8-7
CPTN Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
How soon is the transcript available after the earnings call ends?
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
Is the transcript edited or altered in any way?
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
