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Pony AI Inc. Sponsored ADR (PONY)
:PONY
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Pony AI Inc. Sponsored ADR
(NASDAQ:PONY)
Rating:52Neutral
Price Target:
$12.50
▼(-5.23%Downside)
Positive Factors
Fleet Expansion
Management remains confident in their Robotaxi fleet size expansion in China, and unit economics and per car profitability are expected to improve significantly with the introduction of generation 7 vehicles.
Strategic Partnerships
Pony AI has formed a strategic alliance with Uber, which will facilitate its service launch in the Middle East and expansion into other international markets.
Negative Factors
Financial Performance
Pony AI reported 4Q24 results with revenue down 30% YoY at USD35.5mn, mainly due to the timing of project-based revenue recognition.
Profit Margins
Gross profit margin decreased to 16.6% due to a higher sales contribution from the domain controller business and project-based revenue fluctuations.
Pony AI Inc. Sponsored ADR (PONY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.38B
Dividend YieldN/A
Average Volume (3M)12.51M
Price to Earnings (P/E)―
Beta (1Y)2.47
Revenue Growth4.27%
EPS Growth-120.11%
CountryUS
Employees1,460
SectorIndustrials
Sector Strength89
IndustryRental & Leasing Services
Share Statistics
EPS (TTM)-0.12
Shares Outstanding274,203,800
10 Day Avg. Volume9,510,092
30 Day Avg. Volume12,505,912
Financial Highlights & Ratios
PEG Ratio-0.38
Price to Book (P/B)4.88
Price to Sales (P/S)0.00
P/FCF Ratio-31.56
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue13.41
Enterprise Value/Gross Profit274.08
Enterprise Value/Ebitda-4.01
Forecast
1Y Price Target
$23.50Price Target Upside78.17% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Pony AI Inc. Sponsored ADR Business Overview & Revenue Model
Company DescriptionPony AI Inc., through its subsidiaries, engages in the autonomous mobility in the People's Republic of China and the United States. The company provides robotruck services, such as transportation services to the logistics platforms. It also offers robotaxi services, including a suite of AV engineering solutions comprising AV software deployment and maintenance, vehicle integration and engineering, and road testing; and fare-charging robotaxi services. In addition, the company offers personally-owned vehicle intelligent solutions, including intelligent driving software solutions, proprietary vehicle domain controller products, and data analytics tools; vehicle integration services, software development, and licensing services; and vehicle-to-everything (V2X) products and services to enhance road safety. The company was incorporated in 2016 and is based in Guangzhou, the People's Republic of China.
How the Company Makes MoneyPony AI makes money primarily through partnerships and collaborations with automotive manufacturers and logistics companies to integrate its autonomous driving technology into their fleets. The company licenses its technology, which includes software, algorithms, and sensor systems, to these partners, generating revenue through licensing fees and long-term service agreements. Additionally, Pony AI engages in pilot programs and deployments in various cities, offering autonomous ride-hailing and delivery services, which further contribute to its revenue. Strategic investments and collaborations with major industry players also play a significant role in the company's financial structure, providing capital and resources to expand its operations and technological capabilities.
Pony AI Inc. Sponsored ADR Earnings Call Summary
Earnings Call Date:May 20, 2025
(Q1-2025)
| % Change Since: -22.00%|
Next Earnings Date:Mar 31, 2026
Earnings Call Sentiment Positive
The earnings call highlighted significant revenue growth and technological advancements, along with strategic partnerships and global expansion. However, increased operating expenses and a decrease in gross margin were noted as challenges. Despite these, the overall sentiment leans towards positive due to strong growth indicators and strategic progress.Q1-2025 Updates
Positive Updates
Robotaxi Revenue Growth
Revenue from Robotaxi services doubled year-over-year for Q1 2025, with fare charging revenues growing approximately eightfold.
Launch of Seventh-Generation Autonomous Driving System
Pony AI launched its seventh-generation autonomous driving system, achieving a 70% reduction in the bill of materials compared to the previous generation.
Expansion of Operational Domains
Pony AI expanded its operational domains across Beijing, Guangzhou, Shenzhen, and Shanghai to over 2,000 square kilometers.
Strategic Partnerships
Pony AI secured strategic partnerships with Tencent and Uber to enhance its ecosystem both domestically and internationally.
Global Expansion Efforts
Pony AI achieved multiple breakthroughs in global markets, including securing an L4 Robotaxi testing permit in Luxembourg and starting road testing in Seoul.
Operational Cost Reductions
Achieved a remote assistant to driver ratio of 1:20 and reduced insurance costs to 50% of traditional taxis, showcasing operational efficiency.
Negative Updates
Decreased Gross Margin
Gross margin decreased from 21% to 16.6% year-over-year, mainly due to a change in revenue mix and increased ADC sales for new robo-delivery clients.
Increased Operating Expenses
Total operating expenses increased by 56.3% year-over-year, due to investments in Gen 7 mass production and one-time expenses associated with share awards.
Net Loss Increase
Net loss was $37.9 million for Q1 2025, compared to $20.8 million in the same period last year, reflecting increased investments and expenses.
Company Guidance
During Pony AI Inc's First Quarter 2025 Earnings Call, the company provided robust guidance, highlighting significant growth and strategic advancements. The revenue from Robotaxi services doubled year-over-year, with fare charging revenues increasing by approximately 800%. The company launched its seventh-generation autonomous driving system, achieving a 70% reduction in bill of materials costs compared to the previous generation. Pony AI plans to expand its fleet to 1,000 vehicles by the end of the year. Operationally, the company achieved a remote assistant to driver ratio of up to 20, significantly reducing insurance costs. Their operational domains now span over 2,000 square kilometers across major Chinese cities, supporting a 20% quarter-over-quarter increase in registered users. Strategic partnerships with Tencent and Uber are expected to bolster global expansion. Financially, the company reported a gross profit of $2.3 million, with a gross margin of 16.6%, despite a net loss of $37.9 million, attributed to investments in Gen 7 mass production and R&D. The company emphasized its focus on scaling operations and technological advancements to drive future profitability.Pony AI Inc. Sponsored ADR Financial Statement Overview
Summary
Pony AI Inc. is experiencing growth in revenue but is struggling with profitability, as evidenced by negative profit margins and cash flow challenges. Strategic improvements are needed for long-term stability.Income Statement
Pony AI Inc. has shown some revenue growth, with a 4.35% increase in 2024. However, the company is facing significant challenges in profitability, as indicated by negative net profit margins over the years. Both EBIT and EBITDA margins are deeply negative, highlighting operational struggles. The gross profit margin has decreased from the previous year, denoting rising costs or pricing pressures.25
Negative
Balance Sheet
The balance sheet reflects a strong equity position with a high equity ratio due to substantial stockholders' equity in 2024. The debt-to-equity ratio remains low, indicating limited leverage risk. However, the negative ROE suggests the company is not generating adequate returns on its equity base. Additionally, the fluctuating nature of equity in prior years indicates potential instability.30
Negative
Cash Flow
The cash flow statement reveals a challenging situation with negative free cash flow and operating cash flow in 2024. The company has consistently faced issues with converting net income into positive cash flow, as shown by negative free cash flow to net income ratios. Despite some improvement in financing cash flow, the overall cash flow position remains weak.20
Very Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 76.64M | 75.03M | 71.90M | 68.39M | 8.12M |
| Gross Profit | 15.45M | 11.40M | 16.88M | 32.06M | 6.31M |
| EBITDA | -375.09M | -277.16M | -128.90M | -153.94M | -201.56M |
| Net Income | -360.31M | -274.12M | -124.81M | -148.02M | -224.70M |
Balance Sheet | |||||
| Total Assets | 972.34M | 1.05B | 747.12M | 771.51M | 708.94M |
| Cash, Cash Equivalents and Short-Term Investments | 629.95M | 745.01M | 589.55M | 577.90M | 418.75M |
| Total Debt | 12.10M | 13.80M | 7.36M | 13.04M | 0.00 |
| Total Liabilities | 54.99M | 82.11M | 51.94M | 1.31B | 1.11B |
| Stockholders Equity | 899.88M | 951.12M | 684.03M | -551.49M | -402.10M |
Cash Flow | |||||
| Free Cash Flow | -145.80M | -122.16M | -120.51M | -166.80M | -171.54M |
| Operating Cash Flow | -135.36M | -110.76M | -115.42M | -154.77M | -146.14M |
| Investing Cash Flow | -260.20M | -181.27M | 136.49M | 49.33M | 54.83M |
| Financing Cash Flow | 398.26M | 407.39M | 89.76M | 191.57M | 121.87M |
Pony AI Inc. Sponsored ADR Peers Comparison
Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | €8.12B | 20.22 | 6.46% | 2.71% | 1.89% | -38.57% | |
57 Neutral | $8.44B | ― | -64.96% | ― | -89.50% | -10.50% | |
55 Neutral | $2.98B | 549.40 | -13.59% | ― | 37.97% | -499.29% | |
55 Neutral | $2.50B | ― | -85.86% | ― | 60.23% | 51.95% | |
52 Neutral | $4.38B | ― | -33.58% | ― | 4.27% | -120.11% | |
50 Neutral | $1.23B | ― | -43.18% | ― | 167.99% | 22.75% | |
49 Neutral | $6.35B | ― | -73.89% | ― | ― | 17.43% |
* Industrials Sector Average
Performance Comparison
PONY
Pony AI Inc. Sponsored ADR
12.14
-0.88
-6.76%
EH
Ehang Holdings
17.07
2.05
13.65%
JOBY
Joby Aviation
11.56
6.37
122.74%
ENVX
Enovix
13.72
-3.78
-21.60%
ACHR
Archer Aviation
10.45
6.06
138.04%
FA
First Advantage
17.51
1.86
11.88%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.