By Kailyn Rhone

Shares of Hesai Group jumped after the company reported a narrower loss and better-than-expected revenue in the third quarter because of strong demand.

The stock rose 62% to $7.69 on Tuesday. For the year, shares are down 12%.

The three-dimensional light detection and ranging solutions manufacturer's revenue rose 21% to $76.9 million, which topped the company's previous guidance and the $67.6 million that analysts surveyed by FactSet expected.

Total lidar shipments jumped 182.9% to 134,208 units, while ADAS Lidar shipments soared 220% to 129,913 units in the quarter.

The Shanghai, China, company reported a narrower loss of $10 million, or 8 cents a share, compared with a loss of $19.4 million, or 15 cents, in the last year's quarter. Analysts polled by FactSet expected a loss of 2 cents.

Hesai had a gross margin of 47.7% in the third quarter, up from 30.6% in the same period last year.

For the fourth quarter, Hesai now expects $100 million in revenue and 200,000 unit shipments. The company also anticipates achieving full-year profitability on a non-GAAP basis for 2024, positioning them to become the first automotive lidar company world-wide to achieve this milestone.

With new Chief Financial Officer Andrew Fan, the company says it is "well-positioned for another exciting chapter of growth and accomplishment."

Write to Kailyn Rhone at kailyn.rhone@wsj.com

(END) Dow Jones Newswires

November 26, 2024 14:39 ET (19:39 GMT)

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