Hesai Group (HSAI) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 revenue of RMB 458.9 million (US$63.1 million), at the high end of guidance, with total lidar shipments up 66.1% year-over-year to 86,526 units.

• Maintained global leadership in automotive LiDAR, holding 37% global market share and 74% in robotaxi LiDAR for 2023, and recognized as the No. 1 automotive lidar company for the third consecutive year.

• Secured major design wins with 19 OEMs globally, including exclusive supplier status for 13, and expanded partnerships with both domestic and international automakers, including new POC programs with European OEMs.

• Strong momentum in robotaxi and ADAS markets, with exclusive supplier status for all top five Chinese robotaxi companies and significant orders positioning for future growth.

• ADAS lidar shipments grew 76.8% year-over-year to 80,773 units, reflecting robust demand in China.

Financial highlights

• Blended gross margin reached 45.1% in Q2, improving year-over-year and quarter-over-quarter due to cost management, scale, and a one-off high-margin service revenue.

• Net loss narrowed by 33% quarter-over-quarter and 3.1% year-over-year to RMB 72.1 million (US$9.9 million); non-GAAP net loss was RMB 43.6 million (US$6.0 million).

• Q3 2024 revenue guidance: RMB 450–500 million (US$61.9–68.8 million), up 1–12.2% year-over-year.

• Full-year 2024 revenue forecast revised to RMB 2.0–2.3 billion (US$280–320 million) due to postponed SOP timelines for some clients.

• Cash and equivalents, restricted cash, and short-term investments totaled RMB 2,752.9 million (US$378.8 million) as of June 30, 2024.

Outlook and guidance

• Anticipates stronger performance in H2 2024, with robust order pipelines for 2025 and 2026, and millions of ADAS units forecasted for shipment.

• Expects to approach profitability in Q4 2024, with non-GAAP break-even targeted for H2 2024.

• Less than 20% of 2024 revenue expected from the U.S.; majority driven by demand outside the U.S.

• Shipment guidance for H2 2024: 300,000–350,000 units, reflecting some client model pushouts.