NIO’s Q1 2024 revenue drops YoY, but gross profit surges YoY

Shanghai (Gasgoo)- NIO Inc. ("NIO"), a leading company in the premium smart electric vehicle market, has released its unaudited financial results for the first quarter ending March 31, 2024 (Q1 2024).

NIO's total revenue for Q1 2024 stood at 9,908.6 million yuan (US$1,372.3 million), a 7.2% drop from the same period in 2023 and a sharp 42.1% decline from Q4 2023. This downturn is mirrored in vehicle sales, which amounted to 8,381.3 million yuan (US$1,160.8 million), reflecting a decrease of 9.1% year-over-year and 45.7% quarter-over-quarter. The primary factors behind these reductions include a lower average selling price due to user rights adjustments since June 2023 and a decreased delivery volume, affected by seasonal influences.

The company delivered 30,053 vehicles in Q1 2024, with 17,809 units being premium smart electric SUVs and 12,244 premium smart electric sedans. This marks a 3.2% decrease from Q1 2023 and a significant 39.9% drop from Q4 2023.

Despite the revenue downturn, NIO achieved a gross profit of 487.7 million yuan (US$67.6 million) in Q1 2024, a substantial 200.5% increase from the same quarter last year, though down 61.9% from the previous quarter. The gross margin improved to 4.9% in Q1 2024, up from 1.5% in Q1 2023 but down from 7.5% in Q4 2023. The vehicle margin followed a similar trajectory, rising to 9.2% from 5.1% a year ago but dropping from 11.9% in the last quarter. The improvements in margins compared to last year are mainly due to decreased material costs per unit, whereas the quarter-over-quarter declines are attributed to lower average selling prices amid increased promotions amid product transitions.

The company's loss from operations was 5,394.1 million yuan (US$747.1 million) in Q1 2024, a 5.5% increase year-over-year but an 18.6% decrease from Q4 2023. Excluding share-based compensation expenses, the adjusted operational loss (non-GAAP) was 5,112.7 million yuan (US$708.1 million) in the quarter, up 13.1% year-over-year but down 15.6% quarter-over-quarter.

For the first three months of 2024, NIO's R&D expenses reached 2,864.2 million yuan (US$396.7 million), sliding 6.9% from Q1 2023 and also shrinking 27.9% from Q4 2023. The reduction is primarily due to lower design and development costs and decreased personnel expenses in R&D.

As of March 31, 2024, NIO held 45.3 billion yuan (US$6.3 billion) in cash, cash equivalents, restricted cash, short-term investments, and long-term time deposits.

Looking ahead, NIO forecasts a strong rebound for Q2 2024, with expected vehicle deliveries between 54,000 and 56,000 vehicles, representing an increase of approximately 129.6% to 138.1% from Q2 2023. Revenue projections for Q2 this year are set between 16,587 million yuan (US$2,297 million) and 17,135 million yuan (US$2,373 million), reflecting an anticipated rise of 89.1% to 95.3% year-over-year.