WeRide Inc. Sponsored ADR ((WRD)) has held its Q3 earnings call. Read on for the main highlights of the call.
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WeRide Inc. Reports Strong Revenue Growth Amidst Challenges in Earnings Call
The recent earnings call for WeRide Inc. highlighted a generally positive sentiment, with the company showcasing substantial revenue growth and significant global expansion. However, challenges were noted, particularly concerning increased R&D expenses and ongoing net losses, especially in the competitive China market.
Record Revenue Growth
WeRide delivered a remarkable total revenue of RMB 171 million, marking a year-over-year growth of 144%. This impressive growth underscores the company’s robust performance and strategic positioning in the autonomous vehicle industry.
Global Expansion and Milestones
The company has made significant strides in global expansion, securing the world’s first city-level fully driverless robotaxi commercial permit in Abu Dhabi. Additionally, WeRide has expanded into Belgium and Switzerland, becoming the only company with autonomous driving permits in eight countries.
Operational Achievements in the Middle East
In the Middle East, WeRide operates over 100 robotaxi vehicles, with plans to scale this number to over 500 by next year. This expansion highlights the company’s commitment to increasing its footprint in this region.
Significant Technological Developments
WeRide launched WePilot 3.0, an ADAS system comparable to Tesla’s FSD, and achieved a major technological milestone with Bosch in November. These advancements position WeRide at the forefront of autonomous driving technology.
Profitability Potential in Abu Dhabi
The driverless operation in Abu Dhabi has reached a utilization level that indicates a strong user preference, suggesting potential profitability. This achievement is a testament to WeRide’s strategic focus on high-demand markets.
Strong Gross Profit and Margin
The company reported a group-level gross profit increase of 1,124% to RMB 56 million, with a gross margin of 33%. These figures reflect WeRide’s efficient operational strategies and cost management.
Increased R&D and Operational Expenses
While operating expenses decreased overall, R&D expenses increased by 24% year-over-year to RMB 316 million. This rise is attributed to increased service fees and personnel costs, indicating a continued investment in innovation.
Continued Net Loss
Despite narrowing the net loss by 71%, it remained at RMB 307 million for the third quarter of 2025. This ongoing challenge highlights the need for continued strategic adjustments.
Challenges in China Market
Profitability in China remains a challenge for WeRide due to low taxi fares and the need for higher utilization. This market presents unique hurdles that the company must navigate to achieve sustainable growth.
Forward-Looking Guidance
During the earnings call, WeRide provided comprehensive guidance, emphasizing its global operations and financial performance. The company plans to replicate its successful Abu Dhabi model in other markets, including Dubai, Riyadh, and Singapore, while expanding its European presence in countries like Switzerland and Belgium. These strategic plans highlight WeRide’s commitment to sustained growth and profitability.
In conclusion, WeRide’s earnings call reflected a positive sentiment with significant achievements in revenue growth and global expansion. However, challenges remain, particularly in the China market and with increased R&D expenses. The company’s forward-looking guidance suggests a strategic focus on replicating successful models in new markets, aiming for continued growth and profitability.