• Total Revenue (Q4 2024): Decreased by 3% to RMB141 million.
• Total Revenue (Full Year 2024): RMB361 million.
• Product Revenue (Q4 2024): Increased by 46% to RMB52 million.
• Service Revenue (Q4 2024): Decreased to RMB89 million.
• Product Revenue (Full Year 2024): Increased by 62% to RMB88 million.
• Service Revenue (Full Year 2024): Decreased by 21% to RMB273 million.
• Product Gross Margin (Q4 2024): 17%.
• Service Gross Margin (Q4 2024): 48%.
• Product Gross Margin (Full Year 2024): 18%.
• Service Gross Margin (Full Year 2024): 35%.
• Operating Expenses (Q4 2024): Increased by 82% to RMB640 million.
• Operating Expenses (Full Year 2024): Increased by 32% to RMB2.3 billion.
• R&D Expenses (Q4 2024): Increased by 32% to RMB320 million.
• R&D Expenses (Full Year 2024): Increased by 3% to RMB1.1 billion.
• Administrative Expenses (Q4 2024): Increased by 205% to RMB305 million.
• Administrative Expenses (Full Year 2024): Increased by 82% to RMB1.1 billion.
• Selling Expenses (Q4 2024): Increased by 52% to RMB15 million.
• Selling Expenses (Full Year 2024): Increased by 29% to RMB54 million.
• Net Loss (Q4 2024): Increased by 66% to RMB592 million.
• Net Loss (Full Year 2024): Increased by 29% to RMB2.5 billion.
• Cash and Equivalents (Dec 31, 2024): RMB4.9 billion.

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

Release Date: March 14, 2025

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

Positive Points

• WeRide Inc (NASDAQ:WRD) launched the GXR, a new purpose-built robotaxi, which has begun full driverless commercial operation in Beijing, showcasing technological advancement and regulatory acceptance.
• The company expanded its international presence by partnering with Uber to launch a ride-hailing service in Abu Dhabi, marking the first time AVs are available on Uber outside the US.
• WeRide Inc (NASDAQ:WRD) achieved record-breaking robotaxi revenue and the highest international revenue since its founding, indicating strong financial performance in the global market.
• The company has deployed L4 vehicles across more than 30 cities in 10 countries, demonstrating significant international expansion and market penetration.
• WeRide Inc (NASDAQ:WRD) maintains a strong cash position with RMB4.9 billion in cash equivalents, supporting ongoing R&D efforts and future growth initiatives.

Negative Points

• Total revenue for the fourth quarter decreased by 3% to RMB141 million, primarily due to a decline in service revenue.
• Operating expenses rose significantly by 82% in Q4 and 32% for the full year, driven by higher personnel-related expenses and increased share-based compensation.
• The company reported a net loss increase of 66% in Q4 and 29% for the full year, highlighting financial challenges despite revenue growth.
• Service revenue decreased by 21% for the full year, attributed to the completion of customized R&D services for certain clients.
• The company faces challenges in scaling robotaxi operations, including city-level regulatory approvals and maintaining high utilization rates for profitability.

Q & A Highlights

Q: What is WeRide's current robotaxi business model and its latest progress? A: Jennifer Lee, CFO: WeRide's robotaxi business model involves providing autonomous vehicles and services to local partners and global platforms through vehicle sales, fixed service fees, and revenue sharing. This ensures a positive contribution margin from day one. Internationally, WeRide collaborates with leading platforms for faster deployment and better fleet utilization. In China, WeRide operates its own platform and expects unit economics to turn positive in the coming years.

Q: Could you elaborate on WeRide's current market position in the robotaxi industry, both domestically and globally? A: Tony Han, CEO: WeRide maintains a leading position in the robotaxi segment, with a large global fleet and excellent safety records. WeRide is the only company with autonomous driving permits from four countries and operates in complex environments. The company has a scalable operation setup and a strong technological foundation, ensuring its leadership in the industry.

Q: What major challenges does WeRide foresee while scaling its robotaxi operations, and how does it view the future competitive landscape? A: Yan Li, CTO: Challenges include city-level regulatory acceptance and scaling fleet operations. WeRide addresses these by gradually introducing products and building trust with local governments. The competitive landscape has high entry barriers, with only a few top players. WeRide's technological advancements and business model position it well to maintain leadership.

Q: What is WeRide's path to profitability for its robotaxi business, and why expand internationally instead of focusing solely on the domestic market? A: Jennifer Lee, CFO: WeRide's business model ensures positive margins from day one. The break-even point varies by market, but high utilization rates can achieve profitability even with a small fleet. International expansion diversifies revenue streams and leverages strong demand in markets with aging populations and high labor costs, offering higher growth margins than the domestic market.

Q: What are WeRide's next milestones regarding technology and product development, and how is it deploying end-to-end models and VLM in its L4 system? A: Tony Han, CEO: In 2025, WeRide plans to deploy hundreds of vehicles globally with advanced technology to reduce costs and enhance reliability. The company is developing a next-generation domain controller with Lenovo and Nvidia. WeRide's end-to-end models and vision language models (VLM) are integrated into its systems, enhancing navigation capabilities and ensuring safety.

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