Ouster Inc. (OUST) stock is soaring 5.03% in pre-market trading on Thursday, following the announcement of a significant contract expansion with the Utah Department of Transportation (UDOT). The company, known for its high-performance lidar sensors and intelligent software solutions, is set to extend its BlueCity traffic management solution to over 100 intersections across Utah.

This expansion builds upon an initial successful deployment at more than a dozen intersections earlier this year. The BlueCity solution, which integrates Ouster's 3D digital lidar and perception software, will be implemented for real-time traffic signal actuation. The technology aims to enhance roadway safety, reduce congestion, and improve overall traffic efficiency while maintaining community privacy. Initial rollout cities include Cedar City, Ogden, Orem, and Salt Lake City.

The contract expansion represents a significant vote of confidence in Ouster's technology and could potentially lead to further growth opportunities in the smart city and traffic management sectors. As cities increasingly look for innovative solutions to manage traffic flow and improve urban mobility, Ouster's lidar-based systems could see growing demand. This development may signal a positive outlook for the company's future revenue streams and market position in the burgeoning field of intelligent transportation systems.