• Total Revenue: RMB128.1 million, a 347.8% year-over-year increase and a 25.6% increase from the prior quarter.

• EH216 Series Deliveries: 63 units delivered in Q3 2024, compared to 13 units in Q3 2023 and 49 units in Q2 2024.

• Gross Margin: 61.2%, compared to 64.6% in Q3 2023 and 62.4% in Q2 2024.

• Adjusted Operating Expenses: RMB86.9 million, a 60.9% increase from RMB54 million in Q3 2023.

• Adjusted Operating Income: RMB9 million, compared to an adjusted operating loss of RMB34.2 million in Q3 2023.

• Adjusted Net Income: RMB15.7 million, compared to an adjusted net loss of RMB31.3 million in Q3 2023.

• Cash Balance: RMB1,077.6 million, including cash, cash equivalents, and short-term investments.

• Q4 Revenue Guidance: Expected to be RMB135 million, a year-on-year increase of 138.5%.

• Full-Year 2024 Revenue Guidance: Expected to reach RMB427 million, a year-on-year increase of 263.5%.

• Warning! GuruFocus has detected 3 Warning Signs with EH.

Release Date: November 18, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• EHang Holdings Ltd (NASDAQ:EH) achieved a record high in order deliveries and financial performance in Q3 2024, with 63 units of EH216-S delivered and quarterly revenues reaching RMB128 million.

• The company became the world's first eVTOL company to obtain three airworthiness certificates for pilotless aircraft, showcasing its capabilities for mass production and deliveries.

• EHang Holdings Ltd (NASDAQ:EH) is actively expanding its footprint in overseas markets, conducting demo flights in Brazil, Japan, and Thailand, and securing an experimental flight authorization certificate in Brazil.

• The company has formed strategic partnerships to enhance its R&D capabilities, including a collaboration with Enpower for electric motors and a significant breakthrough in solid-state battery technology with Inx.

• EHang Holdings Ltd (NASDAQ:EH) recorded a 347.8% year-over-year increase in total revenues for Q3 2024, exceeding revenue guidance by 4% and maintaining positive operating cash flow for the fourth consecutive quarter.

Negative Points

• The gross margin for Q3 2024 decreased slightly to 61.2% from 64.6% in Q3 2023, attributed to selling based on last year's contract prices.

• The OC (Operator Certificate) approval process is complex and involves setting up new standards, which may delay the issuance of the first OC beyond the expected timeline.

• Solid-state battery technology is still in the small batch testing phase, with costs currently twice that of existing batteries, posing challenges for mass production and commercialization.

• The technical upgrades to the Yunfu factory in Q4 may cause minimal disruption to production and delivery, although efforts are being made to mitigate the impact.

• Despite strong demand, the current production capacity is limited to the sole production facility in Yunfu, necessitating the construction of new factories to meet growing demand.