Business Wire | Aug 12, 2021 04:00PM EDT

Luminar Reports Q2 2021 Results and Business Update

Aug. 12, 2021

ORLANDO, Fla.--(BUSINESS WIRE)--Aug. 12, 2021--Luminar Technologies, Inc. (NASDAQ: LAZR), the global leader in automotive lidar hardware and software technology, today announced its quarterly business update and financials for the second quarter of 2021, ended June 30, 2021. The company is increasing full-year guidance for major commercial wins, revenue, and forward-looking order book growth as a result of strong year-to-date execution and accelerating OEM adoption of Luminar.

"This has certainly been our most incredible quarter yet. We've been relentlessly executing and are on-track or beating each of our five key milestones. Since our last update, we made our first acquisition as a public company, and we achieved the industry's most significant commercial win to-date for lidar and software," said Austin Russell, Luminar Founder and CEO. "Our industry-first standardization win with Volvo has solidified Luminar as not only the standard in automotive lidar, but also the standard for next-generation vehicle safety."

Major 2021 Milestones and Q2 Company Highlights:

Today, Luminar reported second-quarter progress on its five key 2021 milestones set forth at the beginning of the year and increased several targets driven by strong year-to-date performance.

* Iris Industrialization for Series Production: Luminar has now locked down over 85% of its series production supply chain and tooling for Iris, and expects to enter the C-phase in the fourth quarter. The company has also completed and passed some of the most challenging automotive-grade testing for Iris, including thermal, shock, vibration, and electrical. The company also acquired OptoGration1, its exclusive InGaAs chip design partner and manufacturer, which secures a key part of its supply chain and deepens Luminar's competitive moat. In addition, the company was awarded its one hundredth patent in the second quarter, more than all other public lidar companies combined. * Software & Product Development: Today, Luminar showcased its first public demonstration2 of its Proactive Safety(tm) software and capabilities in action. Luminar software is also a part of Volvo's standard safety package program for their next-generation electric SUV. Luminar remains on track to deliver its alpha version of the full-stack Sentinel solution by year end. * Commercial Programs & Customer Adoption: Volvo's decision to make Luminar a standard3 feature on its next-generation electric SUV represents an industry first and a catalyst for next-generation automotive safety. Luminar is now doubling its major commercial win target this year to six from three, based on accelerated adoption of Luminar for OEM programs. * Forward-Looking Order Book: Luminar is raising its 2021 forward-looking order book growth target to 60% over the prior year, up from the previous target of 40% growth. * Liquidity and Cash Position: Luminar remains on track to achieve its target of ending the year with more cash on the balance sheet compared to year-end 2020, driven by continued disciplined use of cash and greater commercial success than expected. Key Q2 2021 Financials:

Financial Guidance Increase: The company is raising its full-year 2021 revenue guidance to $30 to $33 million versus prior guidance of $25 to $30 million.

* Revenue was $6.3 million, an 84% year-over-year increase and a 19% increase compared to the prior quarter. * GAAP and Non-GAAP net loss: Non-GAAP net loss was $27.7 million, or $(0.08) per share, compared to a non-GAAP net loss of $18.0 million, or $(0.14) per share, basic and diluted, for the second quarter of 2020. GAAP net loss was $36.8 million, or $(0.11) per share compared to a GAAP net loss of $25.4 million, or $(0.20) per share for the second quarter of 2020. * Cash, Cash Equivalents and Marketable Securities were $580.4 million as of June 30, 2021, compared to $485.7 million as of December 31, 2020. Cash spend (operating cash flow less capital expenditures) was $32.0 million during the second quarter.

__________________________________1 https://www.luminartech.com/optogration 2 https://www.luminartech.com/pathtoseriesproduction 3 https://www.luminartech.com/standardized-on-next-gen-volvo

Webcast DetailsFounder and CEO Austin Russell and CFO Tom Fennimore will host a video webcast, featuring a business update followed by a live Q&A session.

What: Video Webcast featuring Quarterly Business Update, Q2 Financials and Live Q&A Date: Today, August 12, 2021 Time: 2:00 p.m. PT (5:00 p.m. ET)

A live webcast of the event will be available on Luminar's Investor site at https://luminartech.com/quarterlyreview. A replay of the webcast will be available following the presentation.

For additional information or to be added to our investor distribution list, please visit us at https://investors.luminartech.com/ir-resources/email-alerts.

Non-GAAP Financial MeasuresIn addition to disclosing financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), this press release contains certain non-GAAP financial measures. Non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similarly titled measures presented by other companies. Luminar considers these non-GAAP financial measures to be important because they provide useful measures of the operating performance of the Company, exclusive of factors that do not directly affect what we consider to be our core operating performance, as well as unusual events. The Company's management uses these measures to (i) illustrate underlying trends in the Company's business that could otherwise be masked by the effect of income or expenses that are excluded from non-GAAP measures, and (ii) establish budgets and operational goals for managing the Company's business and evaluating its performance. In addition, investors often use similar measures to evaluate the operating performance of a company. Non-GAAP financial measures are presented only as supplemental information for purposes of understanding the Company's operating results. The non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP.

This presentation includes non-GAAP financial measures, including non-GAAP net loss, Free Cash Flow ("FCF") and Order Book. Non-GAAP net loss is defined as GAAP net loss plus stock-based compensation plus expenses related to registration statement on Form S-1 on behalf of selling stockholders plus change in fair value of warrant liabilities. FCF is defined as operating cash flow less capital expenditures.

Order Book is defined as the forward-looking cumulative sales estimates of Luminar's hardware and software products over the lifetime of given programs which Luminar's technology is integrated into or provided for, based primarily on projected/actual contractual pricing terms and good faith estimates of "take rates" of Luminar's technology on vehicles. Such anticipated programs and volumes/take rates are based on commitments by our partners that are dependent on successful performance through development and validation and entering definitive purchase orders for series production, which may change for a variety of reasons as disclosed herein and other SEC filings, including, without limitation, the risks set forth in the "Forward-Looking Statements" section below. Customer production vehicle volume estimates (and take rates when applicable) are largely sourced from (i) the OEM/customer, (ii) IHS Markit or other third party estimates, and/or (iii) Luminar's management good faith estimates.

Luminar defines a "major win" as a written agreement with a major industry player, including based on their past experience in high volume production, leadership in autonomy, or market leadership, that selects our technology for what is expected to be a significant commercial program, including OEM series production programs. We only include major commercial wins in our forward-looking order book calculation, and subject to the risks set forth in the "Forward-Looking Statements" section below.

Forward-Looking StatementsCertain statements included in this press release that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as "aims", "believe," "may," "will," "estimate," "set," "continue," "towards," "anticipate," "intend," "expect," "should," "would," "forward," and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding Luminar's preparation for series production and scale and Luminar's expectation that its technology will be standard on Volvo Cars' next generation electric SUV, that Sentinel software will be successfully released and validated with demonstrable safety benefits, that Luminar will succeed in achieving additional commercial wins in 2021, that major wins will successfully result into series production to achieve the order book outlook, that full year spending and expansion will continue as planned, and that Luminar will successfully integrate the technology, manufacturing, and staffing of OptoGration Inc. after acquisition. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of Luminar's management and are not predictions of actual performance. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements including the risks discussed under the heading "Risk Factors" in the Annual Report on Form 10-K filed by Luminar on April 14, 2021, the registration statements on Form S-1 (Nos. 333-251657 and 333-257989) filed with the SEC and amendments thereto, and other documents Luminar files with the SEC in the future. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made and Luminar undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.

About LuminarLuminar Technologies, Inc. (Nasdaq: LAZR) is transforming automotive safety and autonomy by delivering lidar and associated software that meets the industry's stringent performance, safety, and economic requirements. Luminar has rapidly gained over 50 industry partners, including a majority of the top global automotive OEMs. In 2020, Luminar signed the industry's first production deal for autonomous consumer vehicles with Volvo Cars, which now expects to make Luminar's technology part of the standard safety package on their next generation electric SUV. Additional customer wins include SAIC, Daimler Truck AG, Intel's Mobileye, Pony.ai and Airbus UpNext. Founded in 2012, Luminar employs approximately 400 with offices in Palo Alto, Orlando, Colorado Springs, Detroit, and Munich. For more information, please visit www.luminartech.com.

LUMINAR TECHNOLOGIES, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (In thousands) (Unaudited)

June 30, 2021 December 31, 2020

ASSETS

Current Assets:

Cash and cash equivalents $ 134,689 $ 208,944

Restricted cash 725 775

Marketable securities 445,755 276,710

Accounts receivable 2,444 5,971

Inventories, net 4,318 3,613

Prepaid expenses and other current assets 13,660 4,797

Total current assets 601,591 500,810

Property and equipment, net 9,258 7,689

Operating lease right-of-use assets 11,976 -

Goodwill 701 701

Other non-current assets 2,641 1,151

Total assets $ 626,167 $ 510,351



LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable $ 6,996 $ 6,039

Accrued and other current liabilities 12,904 10,452

Operating lease liabilities 4,275 -

Debt, current 64 99

Total current liabilities 24,239 16,590

Warrant liabilities 44,825 343,400

Debt, non-current 194 302

Operating lease liabilities, non-current 8,760 -

Other non-current liabilities 1,133 1,318

Total liabilities 79,151 361,610

Stockholders' equity:

Class A common stock 24 22

Class B common stock 11 11

Additional paid-in capital 1,244,228 733,175

Accumulated other comprehensive income 7 34

Accumulated deficit (697,254) (584,501)

Total stockholders' equity 547,016 148,741

Total liabilities and stockholders' equity $ 626,167 $ 510,351

LUMINAR TECHNOLOGIES, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Operations (In thousands, except share and per share data) (Unaudited)

Three Months Ended Six Months Ended June 30, June 30,

2021 2020 2021 2020

Revenue $ 6,309 $ 3,424 $ 11,622 $ 7,296

Cost of sales 7,853 7,442 15,492 11,285

Gross loss (1,544) (4,018) (3,870) (3,989)

Operating expenses:

Research and 19,913 9,708 33,923 18,116 development

Sales and 3,507 1,232 6,142 3,075 marketing

General and 19,237 4,892 29,510 9,505 administrative

Total operating 42,657 15,832 69,575 30,696 expenses

Loss from (44,201) (19,850) (73,445) (34,685) operations

Other income (expense), net:

Change in fairvalue of warrant 6,928 (4,265) (39,721) (4,574) liabilities

Loss onextinguishment of - (866) - (866) debt

Interest expense (288) (489) (488) (1,021) and other

Interest income 731 35 901 130 and other

Total otherincome (expense), 7,371 (5,585) (39,308) (6,331) net

Net loss $ (36,830) $ (25,435) $ (112,753) $ (41,016)

Net lossattributable to $ (36,830) $ (25,435) $ (112,753) $ (41,016) commonstockholders

Net loss pershareattributable to commonstockholders:

Basic and diluted $ (0.11) $ (0.20) $ (0.33) $ (0.32)

Shares used incomputing netloss per share attributable tocommonstockholders:

Basic and diluted 340,255,023 129,650,239 336,641,349 128,780,581

LUMINAR TECHNOLOGIES, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited)

Six Months Ended June 30,

2021 2020

Cash flows from operating activities:

Net loss $ (112,753) $ (41,016)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization 1,332 1,241

Noncash lease expense related to operating 1,748 - right-of-use assets

Amortization of premium on marketable securities 602 -

Unrealized loss on marketable securities 60 -

Change in fair value of warrants 39,721 4,574

Impairment of inventories 1,453 2,481

Loss on extinguishment of debt - 866

Share-based compensation 16,367 3,413

Other 512 -

Changes in operating assets and liabilities:

Accounts receivable 3,527 (3,940)

Inventories (2,640) (3,440)

Prepaid expenses and other current assets (8,469) (1,049)

Other non-current assets (1,490) 638

Accounts payable 854 92

Accrued and other current liabilities 2,652 2,531

Other non-current liabilities (1,659) (369)

Net cash used in operating activities (58,183) (33,978)

Cash flows from investing activities:

Purchases of marketable securities (376,289) -

Proceeds from maturities of marketable securities 169,619 -

Proceeds from sales of marketable securities 36,937 285

Purchases of property and equipment (2,710) (708)

Net cash used in investing activities (172,443) (423)

Cash flows from financing activities:

Cash received from Gores on settlement of 10 - recapitalization of escrow

Proceeds from the issuance of debt - 31,910

Repayment of debt (143) (3,843)

Principal payments on finance leases (capital (143) (108) lease prior to adoption of ASC 842)

Proceeds from exercise of warrants 153,927 -

Proceeds from exercise of stock options 2,812 -

Proceeds from issuance of restricted common stock - 9

Payments of employee taxes related to vested (140) - restricted stock units

Repurchase of common stock and redemption of (2) (4) warrants

Net cash provided by financing activities 156,321 27,964

Net decrease in cash, cash equivalents and (74,305) (6,437) restricted cash

Beginning cash, cash equivalents and restricted 209,719 27,305 cash

Ending cash, cash equivalents and restricted cash $ 135,414 $ 20,868

LUMINAR TECHNOLOGIES, INC. AND SUBSIDIARIES Reconciliation of GAAP Net Loss to Non-GAAP Net Loss (In thousands, except share and per share data) (Unaudited)

Three Months Ended Six Months Ended June 30, June 30,

2021 2020 2021 2020

GAAP net loss $ (36,830) $ (25,435) $ (112,753) $ (41,016)

Non-GAAP adjustments:

Stock-based 14,530 2,284 16,367 3,413 compensation

Expenses relatedto registrationstatement on Form 1,521 - 1,982 - S-1 on behalf ofsellingstockholders

Change in fairvalue of warrant (6,928) 4,265 39,721 4,574 liabilities

Loss onextinguishment of - 866 - 866 debt

Non-GAAP net loss $ (27,707) $ (18,020) $ (54,683) $ (32,163)

GAAP net loss pershareattributable to commonstockholders:

Basic and diluted $ (0.11) $ (0.20) $ (0.33) $ (0.32)

Non-GAAP net lossper shareattributable to commonstockholders:

Basic and diluted $ (0.08) $ (0.14) $ (0.16) $ (0.25)

Shares used incomputing GAAPnet loss pershare attributable tocommonstockholders:

Basic and diluted 340,255,023 129,650,239 336,641,349 128,780,581

Shares used incomputingNon-GAAP net lossper share attributable tocommonstockholders:

Basic and diluted 340,255,023 129,650,239 336,641,349 128,780,581

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CONTACT: Media Relations: Press@luminartech.com

CONTACT: Investor Relations: Trey Campbell trey.campbell@luminartech.com