Hesai Group’s Earnings Call Highlights Robust Growth

Hesai Group Sponsored ADR ((HSAI)) has held its Q1 earnings call. Read on for the main highlights of the call.

Hesai Group’s recent earnings call painted a picture of robust growth and strategic success. The company reported impressive increases in shipments and revenue, alongside significant design wins with multiple OEMs. Despite facing potential challenges such as tariffs and competitive pressures, Hesai maintains a positive outlook on profitability and continues to assert its leadership in the industry.

Record LiDAR Unit Shipments

Hesai Group achieved a remarkable milestone by shipping nearly 200,000 LiDAR units in Q1 2025, more than tripling the volume from the same period last year. This exceptional growth underscores the company’s strong market presence and operational capabilities.

Significant Revenue Growth

The company reported a 50% year-over-year increase in net revenue, reaching RMB 525.3 million or $752.4 million. This growth was driven by strong operational execution and a robust demand for Hesai’s products.

Recognition as Industry Leader

Hesai was recognized as the number one global leader in the automotive LiDAR market by Yole Intelligence. The company holds leading positions in the automotive, passenger car, and robo-taxi markets, reinforcing its industry dominance.

Major OEM Partnerships and Design Wins

Hesai secured major design wins with multiple OEMs, including Li Auto and Zeekr, as well as international partnerships. This widespread adoption of ATX LiDAR as a standard feature highlights the company’s competitive edge.

Substantial Reduction in Net Loss

The company successfully reduced its net loss by 84% year over year, showcasing effective cost management and operational efficiency.

Positive Profitability Outlook

Hesai guided for GAAP breakeven in Q2 2025, with expectations of continued strong revenue and shipment growth. This positive outlook is supported by the company’s strategic initiatives and market positioning.

Dismissal of Patent Infringement Case

Hesai successfully dismissed Ouster’s patent infringement case without conditions, reaffirming the strength of its intellectual property portfolio.

Impact of Tariffs on U.S. Revenue

The evolving tariff environment posed potential short-term shifts in customer demand, with 5% of total revenue exposed to DDP terms. However, the company remains vigilant in navigating these challenges.

ASP Decline Due to Product Mix

The average selling price (ASP) is expected to decline as the lower-priced ATX LiDAR model represents a larger share of shipments. This shift reflects the company’s strategic focus on expanding its market reach.

Competition Concerns

There is speculation about competition affecting key clients like Xiaomi and Leapmotor. However, no official announcements have confirmed significant impacts, indicating Hesai’s resilience in a competitive landscape.

Forward-Looking Guidance

Hesai Group provided robust forward-looking guidance, forecasting net revenues between RMB 680 million ($93.7 million) and RMB 720 million ($99.2 million) for Q2. The company anticipates shipments of over 300,000 units, reflecting a year-over-year growth of nearly 250%. Hesai expects to achieve GAAP breakeven in Q2 and remains confident in its 2025 full-year revenue guidance of RMB 3 to 3.5 billion, with shipment targets of 1.2 to 1.5 million units and a gross margin around 40%.

In summary, Hesai Group’s earnings call highlighted a period of impressive growth and strategic achievements. The company demonstrated strong revenue and shipment increases, secured significant OEM partnerships, and maintained a positive profitability outlook. Despite potential challenges, Hesai’s leadership position in the industry remains unshaken, and its forward-looking guidance reflects confidence in continued success.