Cepton, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing significant changes in revenue and profitability compared to the previous fiscal period. Total revenue for the three months ended September 30, 2024, was $547,000, a substantial decrease of 86% from $3.8 million in the same period in 2023. However, for the nine months ended September 30, 2024, revenue increased by 59% to $12.9 million, compared to $8.1 million in the prior year. This growth was primarily driven by a significant rise in development revenue, which surged to $10.9 million from just $0.3 million in the same period last year, attributed to new contracts with Koito.

Despite the increase in overall revenue for the nine-month period, the company experienced a gross loss of $82,000 in Q3 2024, compared to a gross profit of $494,000 in Q3 2023. The operating loss for the three months ended September 30, 2024, was $10.9 million, an improvement from a loss of $12.3 million in the same quarter of 2023. For the nine-month period, the operating loss decreased significantly to $23.0 million from $41.5 million in the previous year. The net loss for Q3 2024 was $10.6 million, slightly better than the $11.3 million loss reported in Q3 2023, while the nine-month net loss improved to $17.3 million from $40.2 million.

The company’s cash and cash equivalents as of September 30, 2024, stood at $47.7 million, down from $50.4 million at the end of 2023. Total current assets decreased to $52.3 million from $63.6 million, while total assets fell to $63.5 million from $76.4 million. The accumulated deficit increased to $151.9 million from $134.6 million at the end of 2023.

Strategically, Cepton entered into a Merger Agreement with Koito on July 29, 2024, with the transaction expected to close in the first quarter of 2025, pending stockholder and regulatory approvals. The merger is anticipated to enhance Cepton's market position, particularly in the automotive lidar sector. The company also reported transaction costs of $1.6 million for Q3 2024 related to this merger.

In terms of operational adjustments, Cepton has been focusing on cost control, with total operating expenses for the nine months ending September 30, 2024, decreasing by 30% to $29.7 million from $42.4 million in the previous year. This reduction was driven by lower research and development expenses, which fell by 38% to $14.4 million, and a 20% decrease in selling, general, and administrative expenses to $15.3 million.

Overall, while Cepton faced challenges in revenue generation, particularly in lidar sensor sales, it has made strides in reducing losses and improving operational efficiency, positioning itself for future growth through strategic partnerships and market opportunities.