![]() When analyzing small-cap growth stocks, I'm always looking for passionate CEOs who want to solve a big problem and return value to shareholders.įounder-led companies tend to outperform and I find it fascinating that Austin Russell wants to change the world even though he's already extremely wealthy at such a young age. Luminar CEO Austin Russell also added in the Q3 2023 shareholder update that the company could add another $1 billion to its order book by the end of 2023. Owning a $3.4 billion order book is no easy feat and shows just how much demand there is for Luminar's LiDAR technology. Luminar's Impressive Order Book and Long-Term Goals He believes Luminar could become profitable within the next 2 years and should experience a surge in revenue and earnings growth if the company executes. Luminar has enough cash to last until 2025 even if cash burn remains steady. Cash on Hand for Publicly Traded LiDAR Stocks As of Q3 2023 Company Luminar CFO Tom Fenimore mentioned during the company's Q3 2023 earnings call that Luminar has plenty of cash to stay in business and possesses a stronger balance sheet than any other publicly traded LiDAR company. Luminar finished Q3 with $320 million cash on hand and isn't in any danger of going bankrupt. However, I believe the company may hit an inflection point in Q4 once revenue begins flowing in from the Volvo Iris launch. ![]() Luminar's 2 biggest quarterly expenses are R&D and marketing, which cost $62 million and $12 million in Q3 2023. Negative free cash flow is largely responsible for Luminar's continuous decline in share price over the last several quarters. The company has an aggressive goal to improve free cash flow by 50% in the upcoming Q4, which was -$60.8 million in the quarter. Revenue hit $17 million (Up 31% YoY) while net losses reached $134 million (-$0.34 per share). In Q3 2023, Luminar made several strides toward profitability by achieving an improvement in revenue, free cash flow, and gross margins. The company is also working with Mobileye and Nvidia after being chosen by both companies because of Luminar's advanced LiDAR technology. Luminar plans to extend the same technology with several other clients including: The Volvo partnership should add a tremendous amount of revenue and help put an end to the company's massive negative free cash flow problem. The Volvo deal could expand up to 250,000 units at full capacity, which is currently being installed at the Volvo US plant in Charleston, South Carolina. The company has an order book of $3.4 billion and will launch its LiDAR software, Iris, in partnership with Volvo and its EX90 vehicle by the end of Q4 2023. The company described its ambitious goal in complete detail during Luminar Day 2023, which is available to watch on YouTube. Luminar's goal is to save 100 million lives over the next 100 years by providing LiDAR software to help drivers make better decisions on the road. LiDAR technology isn't mainstream yet but several companies are fighting for market share in a fast-growing industry that could transform the way we drive forever. You would have done much better investing in the Invesco NASDAQ 100 during the same period. He dropped out of Stanford University at age 18 to run Luminar full-time after receiving a $100,000 grant from The Thiel Fellowship in 2013.įast forward to today, Luminar remains an extremely high-upside stock with lots of potential even though LAZR shares are down 50% YTD. ![]() Luminar Technologies ( NASDAQ: LAZR) is one of my favorite LiDAR stock plays because the company was founded by Austin Russell who made history as the world's youngest billionaire in 2020.Īt just age 25, Russell took Luminar public after founding the company at age 17.
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