Hesai Group (HSAI) Q3 2024 earnings summary

Executive summary

• Q3 2024 net revenue reached RMB 539.4 million (US$76.9 million), up 21.1% year-over-year, with over 134,000 LiDAR units shipped and nearly 50% sequential shipment growth for the second consecutive quarter.

• ADAS LiDAR shipments surged 220.0% year-over-year to 129,913 units, driven by robust demand and new design wins with major OEMs in China and Japan.

• Operational efficiency and financial discipline led to a reduced GAAP net loss for four consecutive quarters, with Q3 net loss narrowed to RMB70.4 million (US$10.0 million), a 50.4% reduction year-over-year.

• The company projects Q4 2024 net revenue near US$100 million and net profit of US$20 million, with full-year 2024 non-GAAP profitability expected, a first for the automotive LiDAR sector.

• Significant design wins, exclusive supplier agreements, and new collaborations with major EV makers and global OEMs, including proof-of-concept projects in Japan and the launch of OT128 LiDAR with over 90 clients secured.

Financial highlights

• Q3 2024 revenue: RMB 539.4 million (US$76.9 million), exceeding guidance and up 21.1% year-over-year.

• Blended gross margin at 47.7%, up from 30.6% in Q3 2023, supported by cost management and higher-margin engineering services.

• Q3 gross profit nearly doubled year-over-year, while operating expenses grew by only 10% year-over-year.

• Q4 2024 guidance: net revenue close to US$100 million, net profit of US$20 million, and positive operating cash flow.

• Cash and equivalents stood at RMB2,530.7 million (US$360.6 million) as of September 30, 2024.

Outlook and guidance

• Q4 2024 expected to be a record quarter, with LiDAR shipments projected at 200,000 units, nearly matching total 2023 shipments.

• Blended gross margin for Q4 expected to exceed 40%, with stable operating expenses.

• 2025 targeted for full-year profitability, with millions of units projected to ship and strong top-line growth from increased LiDAR adoption.

• Three AT product modules in production for 2025: AT128 (declining ASP), AT512 (higher price, L3 standard), and ATX (cost-effective, rapid adoption).