Hesai Group Sponsored ADR ((HSAI)) has held its Q4 earnings call. Read on for the main highlights of the call.
Hesai Group’s recent earnings call painted a picture of strong growth and strategic advancements, despite some challenges. The company celebrated significant achievements in LiDAR shipments and profitability, while also outlining ambitious projections for the future. Although there were concerns about declining gross margins and seasonal revenue impacts, the overall sentiment was optimistic, with a clear focus on maintaining market leadership and driving growth through innovation and expansion.
Record-Breaking LiDAR Shipments
Hesai Group reported a remarkable milestone in 2024, shipping over 500,000 LiDAR units. This achievement marks a consistent growth trajectory, with the company more than doubling its shipment volume each year for the past four years. This record-breaking performance underscores Hesai’s dominant position in the LiDAR market.
First LiDAR Company with Non-GAAP Profit
In a groundbreaking achievement, Hesai became the first LiDAR company to report a full-year non-GAAP net profit. This financial milestone was complemented by solid positive operating and net cash flows, highlighting the company’s strong financial health and operational efficiency.
Projected Growth for 2025
Looking ahead, Hesai is projecting substantial growth for 2025, with expected LiDAR shipments ranging from 1.2 million to 1.5 million units. The company anticipates net revenues between RMB3 billion and RMB3.5 billion, signaling a robust expansion in its market presence and financial performance.
New Product Launch and Adoption
Hesai’s new ATX LiDAR, priced at $200, is gaining significant traction in the market, with 11 OEMs already adopting the product. This new offering is expected to play a crucial role in the company’s 2025 shipment targets, contributing to its growth strategy.
Expansion in Robotics Market
The company is also making strides in the robotics sector with its JT Mini LiDAR. A new partnership for mobile robotic lawnmowers is expected to result in a six-digit order in 2025, showcasing Hesai’s innovative approach to expanding its market reach.
Global Expansion
Hesai has secured an exclusive design win with a leading European OEM, covering both ICE and EV platforms. This multi-year program highlights the company’s strategic efforts to expand its global footprint and leverage opportunities in diverse automotive markets.
Gross Margin Decline
Despite its successes, Hesai experienced a decline in its blended gross margin, which fell to 39% in Q4 2024. This decrease was attributed to a reduction in higher-margin NRE revenues and a shift in product mix towards ADAS shipments, reflecting the challenges of maintaining profitability amidst changing market dynamics.
Seasonality Impact on Revenue
The company noted that seasonal factors impacted its quarter-over-quarter revenue growth, particularly affecting the first quarter of 2025. This seasonality underscores the importance of strategic planning to mitigate revenue fluctuations.
Forward-Looking Guidance
Hesai Group provided robust guidance for 2025, targeting LiDAR shipments between 1.2 million and 1.5 million units, including approximately 200,000 high-margin robotic LiDAR units. The company aims for net revenues of RMB3 billion to RMB3.5 billion and anticipates GAAP profitability ranging from RMB200 million to RMB350 million. With a projected non-GAAP profitability between RMB350 million and RMB500 million, Hesai is confident in its market leadership and the growing adoption of LiDAR technology.
In summary, Hesai Group’s earnings call highlighted a strong performance and optimistic outlook, driven by record-breaking shipments, profitability achievements, and strategic expansions. Despite challenges such as declining gross margins and seasonal revenue impacts, the company remains focused on innovation and growth, positioning itself as a leader in the LiDAR and robotics markets.