Hesai's fourth-quarter revenue exceeded expectations with a growth of 28%, achieving annual profitability for the first time, and this year's shipment guidance has been significantly raised by up to 50% | Earnings Report Insights
Hesai Technology has become the world's first publicly listed LiDAR company to achieve profitability and positive operating cash flow for the entire year. Annual revenue increased by 10.7% year-on-year to 2.08 billion yuan, setting a new historical high, with a non-GAAP net profit of approximately 13.7 million yuan and positive operating cash flow of 63 million yuan. Last year's delivery volume increased by 126% year-on-year to 501,900 units, with annual deliveries doubling for four consecutive years. This year's shipment guidance has been raised to 1.2 million to 1.5 million units, an increase of 139% to 200% compared to last year. Hesai Technology plans to mass-produce LiDAR for L3 autonomous driving in the second quarter of this year, with an annual shipment target of 200,000 units for robotic LiDAR
In the fourth quarter of 2024, Hesai delivered a "brilliant" performance report, showcasing its strong market competitiveness and development potential. During the quarter, Hesai made significant progress in revenue, shipment volume, and profitability, and is confident about its development in 2025. Although facing risks from market competition and declining ASP, Hesai is expected to maintain its leading position in future development through technological innovation, global expansion, and diversified layout.
On Tuesday, March 11, Hesai announced its performance for the fourth quarter and the entire year of 2024, and provided guidance for 2025.
1) Key Financial Data:
Revenue: Annual revenue of 2 billion yuan (USD 285 million), an increase of 10.7% year-on-year, with fourth-quarter revenue of 720 million yuan, a year-on-year increase of 28% and a quarter-on-quarter increase of 33%.
Profit: Annual net loss of 102 million yuan; excluding stock-based compensation expenses, the non-GAAP net profit is approximately 13.7 million yuan, compared to a non-GAAP net loss of 241.3 million yuan in the previous year.
Gross Margin: Annual gross margin of 42.6%, with fourth-quarter gross margin of 39.0%, compared to 41.2% in the same period of 2023.
Cash Flow: Positive operating cash flow for the year was 63 million yuan, with net cash flow of 1.3 billion yuan, including positive operating cash flow of 600 million yuan in the fourth quarter.
Shipment Volume: Total annual delivery of laser radars was 501,900 units, a year-on-year increase of 126.0%; total annual delivery of ADAS laser radars was 456,400 units, a year-on-year increase of 134.2%, with fourth-quarter total delivery of laser radars at 222,100 units, a year-on-year increase of 153.1%, exceeding the total for the entire year of 2023.
2) Performance Guidance:
Revenue: The revenue target for the entire year of 2025 is 3 to 3.5 billion yuan, equivalent to a year-on-year growth of 44% to 49%, with first-quarter revenue expected to be between 520 million and 540 million yuan.
Profit: Annual GAAP net profit is expected to be between 200 million and 350 million yuan, while non-GAAP net profit is expected to be between 350 million and 500 million yuan.
Gross Margin: Expected to maintain around 40%.
Shipment Volume: Annual shipment volume is expected to be between 1.2 million and 1.5 million units, with ADAS accounting for over 80%, and 200,000 units of robotic laser radars.
The World's First Publicly Listed Laser Radar Company to Achieve Annual Profitability and Positive Operating Cash Flow
The financial report shows that Hesai became the world's first publicly listed laser radar company to achieve annual profitability in 2024, and also the first publicly listed laser radar company to have positive operating and net cash flow for the entire year.
Hesai's annual revenue reached 2.08 billion yuan, setting a historical high for the company, and it achieved annual non-GAAP net profit for the first time, with net profit nearing 14 million yuan, marking a new level of profitability. In the fourth quarter, it also achieved positive operating cash flow of 600 million yuan, bringing the total positive operating cash flow for the year to 63 million yuan In the fourth quarter, Hesai's revenue, non-GAAP net profit, and shipment volume slightly exceeded market expectations.
Although the gross margin in the fourth quarter fell from 41.2% a year ago to below 40%, lower than last year's overall level of 42.6%, this was mainly due to a decline in high-margin NRE revenue and an increase in the proportion of ADAS (Advanced Driver Assistance Systems).
In terms of shipments, Hesai's lidar shipments last year increased by 126% year-on-year to 502,000 units, with annual deliveries doubling for four consecutive years.
This year's shipment guidance raised to 1.2 million to 1.5 million units, an increase of 139% to 200% compared to last year
The guidance indicates that Hesai expects its revenue to grow more rapidly this year, with an expected growth range of 44% to 49%, far exceeding last year's growth rate of 10.7%. The non-GAAP net profit is expected to reach 350 million to 500 million yuan, which is 24 to 35.7 times last year's figure.
At the same time, Hesai has significantly raised its shipment guidance, with the new shipment guidance up by 20% to 50% compared to before.
Hesai currently expects to ship 1.2 million to 1.5 million units this year, representing an increase of 139% to 200% compared to last year, with a growth rate also exceeding last year's 126.0%. Previously, Hesai expected to ship 1 million units this year, nearly doubling from last year.
In the second quarter of this year, mass production of lidar for L3 autonomous driving; robot lidar annual shipment target of 200,000 units
Hesai has made significant progress in both the ADAS and robot lidar fields. Notably, the company has accelerated the adoption of lidar in the ADAS field with low-cost products like the ATX series. Additionally, the company continues to focus on technological innovation, constantly improving product performance and competitiveness.
In the ADAS lidar sector, there is accelerated penetration, defining new industry standards. Among them, the ATX series, with a highly competitive price of around $200, has defined a new category in the industry, accelerating the adoption of lidar in the ADAS field.
Hesai plans to expand its high-end product line, with lidar for L3 autonomous driving priced at around $500 expected to enter mass production in the second quarter of 2025, further enriching its product matrix.
The company expects the market penetration rate to further increase this year, with the adoption rate of ADAS in China rising from 8% in 2023 to 20% in 2025, and reaching 70% by 2030, indicating significant market potential.
The robot lidar business is expected to open a second growth curve for the company. Among them, the JT series features a brand new ultra-compact product that has reduced in size by 70%, with over 20,000 units shipped in the first month of mass production in the fourth quarter of 2024, receiving a positive market response.
Hesai stated that it has signed six-figure orders with leading global smart home robot companies, with a robot lidar shipment target of 200,000 units in 2025. The application scenarios for robot lidar will expand to service robots, industrial automation (such as AGVs in BMW factories), agricultural machinery, etc., with rich application scenarios and vast market space.
Global expansion and diversified layout to cope with market competition and ASP decline pressure
Despite the optimistic development prospects, Hesai Technology faces risks from intensified market competition and a decline in ASP (average selling price). As domestic and foreign manufacturers enter the lidar market, competition is becoming increasingly fierce, which may impact Hesai Technology's market share. With the intensification of market competition, the ASP in the ADAS market may face downward pressure, testing Hesai Technology's profitability.
Hesai Technology will respond to market challenges through technological innovation, global expansion, and diversified layout to achieve sustainable development and increase production capacity to meet the growing market demand.
In terms of technological innovation, continuous investment in ASIC chip research and development will strengthen cost and technological barriers, enhancing product performance and competitiveness. In terms of global expansion, exclusive agreements have been signed with leading OEMs in Europe, covering ICE/EV platforms and accelerating global market expansion.
Currently, Hesai Technology's mass production designated customers include mainstream domestic automakers such as BYD, Li Auto, Xiaomi, Leapmotor, Great Wall, Changan, Dongfeng, Chery, and Voyah. The new product ATX has already been planned as a standard configuration for mass production models by many OEM customers for 2025.
Public data shows that among the 10 highest-valued automakers in China, 9 have reached mass production designated cooperation with Hesai. Overseas, Hesai has established exclusive designated cooperation with top European OEMs for several years, representing the largest order for overseas front-end mass production, covering multiple models of fuel vehicles and new energy vehicles, expected to be in bulk production by the end of 2025 or early 2026, highlighting the company's leading position in the global market.
Hesai Technology's diversified layout is reflected in its active expansion into the robotics market, focusing on the humanoid robot sector to achieve diversified business development. The robotics business is expected to significantly benefit from the development of consumer-grade robots, robotaxis, industrial automation, and other robotics fields