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Pony AI Inc. Sponsored ADR (PONY)
NASDAQ:PONY
RESEARCH TOOLSreports
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Pony AI Inc. Sponsored ADR
(NASDAQ:PONY)
Rating:45Neutral
Price Target:
$11.50
▼(-33.95%Downside)
Positive Factors
Fleet Expansion
The rapid fleet size expansion should lead to 180% YoY Robotaxi service sales growth.
Government Support
China government is expected to continue supporting industry leaders like Pony, against the backdrop of mobility transformation becoming a key area of technology competition.
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
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.
Regulatory and Competitive Risks
Risks associated with the company include regulation, user acceptance, competition, and accidents.
Revenue Decline
Pony AI reported 4Q24 results with revenue down 30% YoY at USD35.5mn, mainly due to the timing of project-based revenue recognition.
Pony AI Inc. Sponsored ADR (PONY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.36B
Dividend YieldN/A
Average Volume (3M)16.47M
Price to Earnings (P/E)―
Beta (1Y)2.48
Revenue Growth4.27%
EPS Growth-120.11%
CountryUS
Employees1,460
SectorIndustrials
Sector Strength85
IndustryRental & Leasing Services
Share Statistics
EPS (TTM)-0.12
Shares Outstanding274,203,800
10 Day Avg. Volume15,275,999
30 Day Avg. Volume16,474,231
Financial Highlights & Ratios
PEG Ratio1.01
Price to Book (P/B)-1.49
Price to Sales (P/S)0.00
P/FCF Ratio-37.62
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$23.50Price Target Upside34.98% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Pony AI Inc. Sponsored ADR Business Overview & Revenue Model
Company DescriptionPony AI Inc. Sponsored ADR (PONY) is a technology company specializing in autonomous driving solutions. Founded in 2016 and headquartered in Fremont, California, Pony AI develops and deploys Level 4 autonomous vehicle technology, which is designed to operate without human intervention under certain conditions. The company's core services focus on providing safe, reliable, and efficient autonomous transportation solutions for both passenger and goods delivery sectors.
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: 2.96%|
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
Income Statement
Balance Sheet
Cash Flow
| Breakdown | |||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|
| Income Statement | Total Revenue | ||
| 84.33M | 71.90M | 68.39M | 8.12M | Gross Profit |
| 19.24M | 16.88M | 32.06M | 6.31M | EBIT |
| -137.48M | -143.24M | -170.72M | -215.31M | EBITDA |
| -126.33M | -128.90M | -153.94M | -201.56M | Net Income Common Stockholders |
| -106.78M | -124.81M | -148.02M | -224.70M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||
| 533.71M | 589.55M | 577.90M | 418.75M | Total Assets |
| 685.96M | 747.12M | 771.51M | 708.94M | Total Debt |
| 10.19M | 7.36M | 13.04M | 0.00 | Net Debt |
| -359.90M | -418.60M | -303.23M | -242.54M | Total Liabilities |
| 48.49M | 1.41B | 1.31B | 1.11B | Stockholders Equity |
| 626.34M | -677.25M | -551.49M | -402.10M |
| Cash Flow | Free Cash Flow | ||
| -116.81M | -120.51M | -166.80M | -171.54M | Operating Cash Flow |
| -111.72M | -115.42M | -154.77M | -146.14M | Investing Cash Flow |
| -24.10M | 136.49M | 49.33M | 54.83M | Financing Cash Flow |
| 99.03M | 89.76M | 191.57M | 121.87M |
Pony AI Inc. Sponsored ADR Peers Comparison
Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $4.49B | 12.22 | 5.40% | 3.71% | 4.17% | -11.97% | |
58 Neutral | $3.10B | 549.40 | -13.59% | ― | 37.97% | -499.29% | |
56 Neutral | $1.70B | ― | -85.86% | ― | 77.59% | 2.01% | |
54 Neutral | $7.13B | ― | -64.96% | ― | -89.50% | -10.50% | |
50 Neutral | $1.17B | ― | -43.18% | ― | 167.99% | 22.75% | |
49 Neutral | $5.70B | ― | -73.89% | ― | ― | 17.43% | |
45 Neutral | $4.36B | ― | -33.58% | ― | 4.27% | -120.11% |
* Industrials Sector Average
Performance Comparison
PONY
Pony AI Inc. Sponsored ADR
12.36
-0.66
-5.07%
EH
Ehang Holdings
16.29
2.24
15.94%
JOBY
Joby Aviation
8.65
3.85
80.21%
ENVX
Enovix
8.44
-3.49
-29.25%
ACHR
Archer Aviation
9.92
6.80
217.95%
FA
First Advantage
17.54
1.61
10.11%
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.