Ouster, Inc.

Good afternoon and welcome everyone to Ouster's fourth 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. If 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, press star one again. The call today is being recorded, and a replay of the call will be available on the Oster Investor Relations website an hour after the completion of this call. I'd now like to turn the conference over to Sarah Ewing, Director of Investor Relations. Please go ahead.

Sarah Ewing Thank you. I'm joined today by Oster's Chief Executive Officer, Angus Pakala, and Chief Financial Officer, Ana Brunel. Before we begin the prepared remarks, we would like to remind you that Ouster issued a press release announcing its fourth quarter and full year 2021 financial results shortly after market closed today. The company also published an investor presentation, which is available on the investor relations section of Ouster.com. I'd also like to remind everyone that during the course of this conference call, Ouster's management will discuss forecasts, targets, customer orders and the doubling of our contracted revenue in 2022 and the company's business outlook that are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the forward-looking statement. The statement regarding the doubling of the company's contracted revenue opportunity does not speak to expectations for any period beyond 2022. While these statements represent management's expectations Oster's actual results are subject to many risks and uncertainties that could cause actual results to differ materially from current expectations that we may share with you today. In addition to any risks highlighted during this call, you should consider important risk factors and other disclosures that may affect Oster's future results are described in this SEC filing that will be updated in its 10-K. Except as required by law, rule, 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, and the markets in which it operates is based on information from independent industry and research organizations. Other third-party sources and management estimates. Management estimates are derived from publicly available information released by the independent industry analyst and other third-party sources, as well as data from the company's internal research and are based on reasonable assumptions made upon reviewing such data and its experience in and knowledge of such industry and markets. By definition, assumptions are subject to uncertainty and risk, 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 our core operations. These non-GAAP measures should be considered a supplement to, and not a substitute for, measures prepared in accordance with GAAP. For 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 our Chief Executive Officer, Angus McCullough.

Hi, everyone. The fourth quarter represented a strong end to a transformative year for Ouster, with 86% revenue growth over the fourth quarter of 2020 and continued industry-leading gross margins that clearly validate our diversified strategy of providing state-of-the-art solutions to multiple rapidly accelerating industry verticals. Our growth rate and strategic position reinforce our confidence that Ouster is poised for continued market share gains. We have a significant lead over earlier stage pre-revenue competitors and superior technology to legacy players. This is proven by our growth and ability to deliver positive and meaningful gross margin, even as the industry matures. As the LIDAR market continues to mature, we're confident that our multi-market approach will enable Ouster to capture significant shares of the automotive, industrial, smart infrastructure, and robotics verticals. These four target industries represent an aggregate addressable market of $8.6 billion by 2025, and Ouster is well-positioned to deliver meaningful growth in each vertical. We're confident in our ability to win in automotive with our multi-sensor suite, as well as our advantage in the industrial, robotics, and smart infrastructure verticals, which represent an even larger near-term opportunity. The first 100 days of Ouster Automotive have exceeded our expectations, and our two teams are now fully integrated, with each adding highly complementary expertise. Design, development, and validation work are on track with the timeline we've previously shared. Our automotive negotiations are progressing well, and our pipeline of deals continues to expand as we engage more OEMs. We're excited to share more details on our progress today and over the coming months. Ouster has the most differentiated LIDAR technology with our OS and DF series digital LIDAR platforms, backed by a leading patent portfolio, scalable manufacturing, and growing supplier relationships. We have the most diversified business with over 600 customers over the last 12 months across multiple markets, allowing us to build toward a stable run rate while investing in products and solutions to capture new growth opportunities. And we have a proven ability to execute nearly doubling our revenue, more than tripling the number of sensors shipped, and adding 58 strategic customer agreements, or SCAs, year over year, all while operating with the highest hardware gross margin of our public peer set. In short, we're confident that we have the team, the technology, and the strategy to make Alster the leader in LiDAR. As the eyes of autonomy, we're poised to have a large-scale impact on the safety and sustainability of our society through the multitude of applications and industries that we touch. Anything that moves or that monitors moving objects has the potential to become more intelligent and efficient with digital LIDAR. And with that, I'd like to turn the call over to our CFO, Ana Brunel, to provide a full update on our 2021 results and 2022 guidance before I dive into Alster's growth strategy.