WeRide Inc. Earnings Call: Growth Amid Challenges

WeRide Inc. Sponsored ADR ((WRD)) has held its Q1 earnings call. Read on for the main highlights of the call.

WeRide Inc. recently held its earnings call, revealing a generally positive sentiment driven by significant achievements and strategic milestones. The company celebrated its expanded partnership with Uber, successful launches of autonomous services in new cities, and strong revenue growth in the RoboTaxi segment. However, these accomplishments were tempered by a slight decline in service revenue, increased operating expenses, and a substantial increase in net loss on a non-IFRS basis. Despite these challenges, the overall sentiment remains optimistic due to the company’s growth potential.

Expanded Partnership with Uber

WeRide has strengthened its collaboration with Uber, committing to provide Robotaxi services in 15 additional cities worldwide. This expansion is backed by an additional $100 million equity investment from Uber, highlighting the confidence in WeRide’s capabilities and future prospects.

Launch of Driverless Robotaxi Testing

In a pioneering move, WeRide launched the first driverless Robotaxi testing in Abu Dhabi, marking a significant milestone as the first of its kind in the Middle East. This initiative underscores WeRide’s commitment to innovation and leadership in autonomous vehicle technology.

First Autonomous Mobility Service in Central Guangzhou

WeRide rolled out China’s first 24/7 autonomous ride-hailing network in Guangzhou, covering over 250 kilometers of public roads. This development positions WeRide as a leader in the autonomous mobility sector within China, offering round-the-clock services to the public.

Strong RoboTaxi Revenue Growth

The RoboTaxi segment showed impressive revenue growth, with first-quarter earnings reaching RMB16.1 million. This figure represents 22.3% of total revenue, a significant increase from 11.9% in the same period of 2024, showcasing the segment’s growing importance to WeRide’s overall business.

Product Revenue Growth

WeRide’s product revenue increased by 46.7% to RMB9.5 million, driven by a substantial rise in sales of RoboTaxis and RoboSweepers. This growth reflects the market’s positive reception of WeRide’s innovative products.

Strong R&D Investment

Research and development remain a priority for WeRide, with R&D expenses accounting for 70.3% of operating expenses. The company increased its R&D spending by 17.3% to RMB325.7 million, focusing on strategic investment in talent acquisition and retention.

Strong Cash Position

As of March 31st, 2025, WeRide maintained a robust capital reserve of RMB6.2 billion, including RMB4.4 billion in cash and cash equivalents. This strong cash position provides a solid foundation for future growth and strategic initiatives.

Slight Decline in Service Revenue

Despite overall revenue growth, WeRide experienced a slight decline in service revenue. This decrease partially offset the total revenue increase, indicating areas for potential improvement in the company’s service offerings.

Increase in Operating Expenses

Operating expenses rose by 14.2% to RMB463.5 million, primarily due to a 48.4% increase in personnel-related expenses. This rise reflects WeRide’s ongoing investment in its workforce to support its expansion and innovation efforts.

Net Loss Increase on Non-IFRS Basis

WeRide reported a 108.2% increase in net loss on a non-IFRS basis, reaching RMB294.6 million. This increase is attributed to continuous investment in R&D, underscoring the company’s commitment to long-term growth despite short-term financial challenges.

Forward-Looking Guidance

During the earnings call, WeRide’s management provided forward-looking guidance, highlighting a total revenue increase of 1.8% to RMB72.4 million for Q1 2025. The company emphasized the growth of the RoboTaxi segment, which contributed RMB16.1 million, accounting for 22.3% of group revenue. Product revenue also saw robust growth, driven by sales of RoboTaxis and RoboSweepers. Despite rising operating expenses, the net loss decreased by 17.7% to RMB385.1 million. WeRide’s strong capital reserve and announced share repurchase program of up to $100 million reflect confidence in their long-term growth trajectory. The strategic partnership with Uber remains a focal point, with plans to expand Robotaxi services to 15 additional international cities.

In conclusion, WeRide Inc.’s earnings call showcased a positive outlook driven by strategic partnerships, innovative launches, and strong revenue growth in key segments. While challenges such as increased operating expenses and net loss persist, the company’s commitment to R&D and its robust cash position suggest a promising future. Investors and stakeholders can look forward to WeRide’s continued expansion and leadership in the autonomous vehicle industry.