EHang (EH) Q3 2024 earnings summary

Executive summary

• Achieved record-high Q3 2024 revenues of RMB 128.1 million, up 347.8% year-over-year and 25.6% sequentially, driven by strong EH216-S sales and robust demand in the low-altitude economy sector.

• Delivered a record 63 EH216-S units in Q3, with major deliveries to clients in Shanxi, Wenzhou, Shenzhen, Hefei, and significant new orders from KC Smart Mobility and Sunriver.

• Became the world's first eVTOL company to obtain three airworthiness certificates for pilotless aircraft, enabling mass production and deliveries.

• Maintained positive operating cash flow for the fourth consecutive quarter and reported the second consecutive quarter of adjusted net income.

• Expanded international presence with demo flights and operations in 18 countries, including Brazil, Thailand, Japan, and the UAE, and advanced in overseas airworthiness certification.

Financial highlights

• Q3 2024 revenue reached RMB 128.1 million, up 347.8% year-over-year and 25.6% sequentially, with gross margin at 61.2%.

• Adjusted operating income was RMB 9 million, a turnaround from a loss of RMB 34.2 million in Q3 2023.

• Adjusted net income reached RMB 15.7 million, positive for the second consecutive quarter.

• Cash and equivalents, including short-term deposits and investments, totaled RMB 1,077.6 million as of September 30, 2024.

• Gross profit for Q3 2024 was RMB 78.4 million.

Outlook and guidance

• Q4 2024 revenue expected to be RMB 135 million, up 138.5% year-over-year.

• Full-year 2024 revenue forecasted at RMB 427 million, a 263.5% year-over-year increase.

• Order backlog exceeds 1,100 units, with deliveries expected to span several years.

• OC (Operator Certificate) approval anticipated by year-end, expected to further boost commercialization and demand.

• Plans for large-scale production of certified solid-state batteries for EH216-S by end of 2025.