NIO's Q2 revenue increased by 99% year-on-year, Q3 delivery guidance exceeds market expectations | Financial Report Insights

NIO Inc. USD OV showed strong growth momentum in the second quarter, with both deliveries and revenue hitting record highs, and net losses significantly decreasing, exceeding market expectations for third-quarter delivery guidance.

On Thursday, September 5th, NIO Inc. USD OV released its Q2 2024 financial report.

1) Key Financial Data

Revenue: NIO's Q2 revenue of RMB 17.45 billion hit a historical high, compared to RMB 8.77 billion in the same period last year, an increase of 99%, exceeding the market expectation of RMB 17.38 billion;

Profit: Adjusted operating loss of RMB 4.7 billion, a 14% decrease year-on-year, lower than the market expectation of a loss of RMB 4.86 billion;

Net loss was RMB 5.046 billion, a 16.7% decrease year-on-year;

Q2 gross margin was 9.7%, an 8.7 percentage point increase year-on-year, exceeding the market expectation of 8.74%.

Cash and cash equivalents: As of June 30, 2024, NIO's total cash and cash equivalents, restricted cash, short-term investments, and long-term deposits amounted to RMB 41.6 billion.

2) Performance Outlook

NIO expects Q3 2024 deliveries to be between 61,000 and 63,000 vehicles, a year-on-year increase of 10%-13.7%, exceeding the market expectation of 56,770 vehicles;

It is expected that total revenue in Q3 will be between RMB 19.109 billion and RMB 19.669 billion, a year-on-year increase of 0.2%-3.2%. Both indicators hit record highs.

After the financial report was released, NIO's US stock rose more than 5% in pre-market trading.

In the financial report statement, NIO's Founder, Chairman, and CEO, William Li, stated:

In the second quarter of 2024, NIO delivered a record 57,373 high-end smart electric vehicles, thanks to our core competitive advantages in technology, products, services, and community, which are increasingly recognized by users. We are optimistic about the delivery volume in the third quarter and expect to set a new record again, further consolidating and expanding our market share.

CFO Qu Yu added:

Due to continued cost optimization, our vehicle gross margin increased to 12.2% in the second quarter. We will continue to focus on efficient R&D and infrastructure investment, leverage the growth potential of the mass market, adopt flexible market strategies, and continuously optimize our product portfolio. We believe these efforts will steadily improve gross margin and cost efficiency in the future

NIO's Second Quarter Delivery Volume Hits Record High, Car Gross Margin Doubles

In the second quarter, NIO delivered a total of 57,373 vehicles, setting a new historical high, an increase of 23,520 vehicles year-on-year, exceeding the expected 55,332 vehicles. The automotive sales revenue was 15.68 billion yuan, a growth of 118.2% compared to the same period last year, surpassing the expected 15.4 billion yuan. The car gross margin was 12.2%, an increase of 6 percentage points from the same period last year, exceeding the expected 11.5%.

Both SUV and sedan delivery volumes achieved strong growth, reaching 32,562 vehicles and 24,811 vehicles respectively in the second quarter.

NIO stated that the company has captured over 40% market share in China's pure electric vehicle market priced above 300,000 yuan.

Entering the second half of the year, NIO maintained a relatively stable delivery level, with 20,498 vehicles delivered in July and 20,176 vehicles delivered in August.

As of August 31, 2024, NIO's cumulative delivery volume has reached 577,694 vehicles.

Sales and Administrative Expenses Increase by 31.5% Year-on-Year

In terms of expenses, NIO's second quarter R&D expenses were 3.2185 billion yuan, a decrease of 3.8% year-on-year; sales, general, and administrative expenses were 3.7575 billion yuan, an increase of 31.5% year-on-year