Hesai Group Reports Third Quarter 2024 Financial Results
Intellectia.AI
Hesai Group Reports Third Quarter 2024 Financial Results
Hesai Group (NASDAQ: HSAI) has reported its unaudited financial results for the third quarter ending September 30, 2024, highlighting significant growth in both revenue and lidar shipments.
Key Financial Metrics
| Financial Metric | Q3 2024 | Q3 2023 | Year-over-Year Change | Q2 2024 | Quarter-over-Quarter Change |
|---|---|---|---|---|---|
| Net Revenue | $76.9 million | $63.5 million | +21.1% | $76.9 million | N/A |
| Gross Margin | 47.7% | 30.6% | +17.1pp | 47.7% | N/A |
| Net Loss | $10.0 million | $20.1 million | -50.2% | $11.5 million | -13.0% |
| Basic and Diluted Net Loss per Share | $0.08 | $0.11 | -27.3% | $0.09 | -11.1% |
Hesai demonstrated strong financial performance, with net revenue increasing by 21.1% year-over-year. This was supported by a substantial rise in ADAS lidar shipments and effective cost management strategies that significantly improved the gross margin to 47.7%. The company successfully reduced its net loss by 50.2% compared to the previous year.
Revenue Performance by Segment
| Revenue Segment | Q3 2024 | Q3 2023 | Year-over-Year Change |
|---|---|---|---|
| Product Revenues | $71.7 million | $60.7 million | +18.1% |
| Service Revenues | $5.2 million | $2.9 million | +84.1% |
Product revenue grew by 18.1%, primarily due to strong demand for ADAS lidar products in China. Service revenues also saw a notable increase of 84.1%, driven by non-recurring engineering services.
Key Developments and Operational Highlights
- Operations:
- Total lidar shipments reached 134,208 units in Q3 2024, an increase of 182.9% year-over-year.
-
ADAS lidar shipments totaled 129,913 units, up 220.0% from Q3 2023.
-
New Product Launch:
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Launched OT128, a high-performance 360-degree lidar, securing over 90 contracts.
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Business Partnerships:
- Secured design wins with global OEMs, including SAIC Volkswagen, Leapmotor, and more.
Executive Commentary
CEO Yifan 'David' Li highlighted the company's advancements in the ADAS market, including new partnerships with top automotive manufacturers. Li also emphasized the strategic significance of the newly launched OT128 lidar and its rapid adoption among global and domestic clients. CFO Andrew Fan added that the quarter's financial success underscored Hesai's operational execution and positioned the company for anticipated record-breaking performance in Q4 2024.
Forward Guidance
Looking forward, Hesai projects Q4 2024 net revenues close to $100 million, driven by escalating lidar shipments approaching 200,000 units. The company anticipates achieving full-year profitability on a non-GAAP basis for 2024.
Stock Price Movement
Post-earnings release, Hesai's stock saw a minor increase of 0.21%.
Hesai Group continues its trajectory of growth, aligning its technological innovations and strategic partnerships to leverage market opportunities in the rapidly evolving lidar industry.
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