NIO’s revenue in Q3 2024 drops YoY, but rises QoQ

Shanghai (Gasgoo)- NIO Inc. (NIO), a Chinese leading smart electric vehicle (EV) maker, has announced its unaudited financial results for the third quarter (Q3) of 2024, reflecting steady progress in vehicle deliveries and revenue growth despite an overall net loss.

The company reported total revenues of 18,673.5 million yuan (US$2,661.0 million) for Q3 2024, a slight decline of 2.1% compared to the same period in 2023 but a 7% increase over the previous quarter. Vehicle sales contributed 16,697.6 million yuan (US$2,379.4 million), down 4.1% year-on-year but up 6.5% quarter-on-quarter. The year-on-year dip in vehicle sales was attributed to a lower average selling price resulting from changes in the product mix, partially offset by higher delivery volumes. The increase in vehicle sales over the previous quarter was mainly attributable to a growth in delivery volume.

NIO delivered 61,855 vehicles in Q3 2024, comprising 61,023 units from its premium brand NIO and 832 units from its family-focused ONVO brand. This marks an 11.6% increase from the same period in 2023 and a 7.8% rise from the previous quarter.

Gross profit for the quarter stood at 2,007.4 million yuan (US$286.0 million), reflecting a robust 31.8% year-on-year jump and an 18.9% rise from the second quarter (Q2）of 2024. In the same period, gross margin improved to 10.7%, up from 8% for the year-ago period and 9.7% from the previous quarter. The company attributed this improvement to increased vehicle margins and higher sales of parts, accessories, and after-sales services, which carry relatively higher margins.

The vehicle margin also rose to 13.1% in Q3 2024, compared to 11% in Q3 2023 and 12.2% in Q2 2024. This year-on-year growth was driven by reduced material costs per unit, although partially offset by a lower average selling price due to product mix adjustments.

On the research and development (R&D) front, expenses reached 3,318.7 million yuan (US$472.9 million) in Q3 2024, a 9.2% increase year-on-year and a 3.1% rise from the previous quarter. Excluding share-based compensation, R&D expenses amounted to 2,902.8 million yuan (US$413.6 million) in the same period， representing an increase of 9.8% from Q3 2023 and 0.5% from Q2 2024. The year-on-year increase was primarily attributed to higher personnel costs in R&D functions.

However, the company still logged a net loss of 5,059.7 million yuan (US$721.0 million) in Q3 2024, an 11% increase compared to Q3 2023 and a marginal 0.3% rise from Q2 2024. On a non-GAAP basis, adjusted net loss was 4,412.6 million yuan (US$628.8 million), reflecting an 11.6% year-on-year increase but a 2.7% decrease from the previous quarter.

As of September 30, 2024, NIO's cash reserves, including cash equivalents, restricted cash, short-term investments, and long-term deposits, stood at 42.2 billion yuan (US$6 billion).

Looking ahead, NIO expects vehicle deliveries for the fourth quarter (Q4) to range between 72,000 units and 75,000 units, representing a significant year-on-year leap of 43.9% to 49.9%. Projected total revenues for Q4 are estimated between 19,676 million yuan (US$2.80 billion) and 20,383 million yuan (US$2,904 million), marking a 15% to 19.2% growth compared to the same period last year.