Hesai releases record breaking 2023 Q1 financial results

Palo Alto, California Jun 2, 2023 (Issuewire.com) - Hesai releases record-breaking 2023 Q1 financial results

Operating Cash Flow Turned Positive, Record-High Net Revenues and Growth

• Hesai's Q1 Net Revenues Reached a Record High of $62.6M, Surpassing the Six Publicly Listed Peers' Revenues Combined
• Hesai Gains Positive Non-GAAP Net Income and Operating Cash Flow
• Hesai Becomes the First Profitable Lidar Company After IPO
• Hesai Achieved a YoY Growth of 73.0%, Setting Record-High Growth

Hesai Technology (Nasdaq: HSAI), the international technology company and global leader in lidar solutions, has just announced its unaudited financial data for the first quarter of 2023, reaching record-high quarterly revenue of $62.6 million, a year-over-year increase of 73.0%. Hesai achieved positive non-GAAP net income and operating cash flow. As of the end of Q1, the company's cash reserves reached $457.2 million, laying a solid foundation for stable development.

Hesai shipments

This quarter, Hesai shipped 34,834 lidar units, a year-over-year increase of 402.9%. Hesai shipped 28,195 lidar radar units, achieving exponential year-over-year growth. Since its inception, Hesai has delivered 135,000 lidars, firmly securing its position as a global leader in this strategic market.

Winning New Contracts, Leading the Global Lidar Market

Hesai has achieved rapid growth for six consecutive years. In the first quarter, Hesai's net revenue and total lidar shipments surpassed its six largest publicly listed peers combined, including Luminar, Ouster, Innoviz, Aeva, Cepton, and AEye.

This quarter, Hesai has signed the largest Robotaxi lidar contract in history. According to an independent third-party report, Hesai is the primary lidar provider with nearly 60% of L4's global market share. This quarter, Hesai has won new ADAS contracts, including new models from Li Auto's pure battery electric vehicle (BEV) platform, new models from Jidu, and various models from SERES. Today, Hesai is collaborating on multi-year ADAS contracts with eleven leading OEMs, six of which will start mass production and delivery before the end of 2023.

Yifan (David) Li, Co-Founder, and CEO of Hesai, said: "We are pleased to deliver the strongest quarterly financial performance in our history, with record net revenues along with non-GAAP profitability and positive operating cash flow. This quarter, we released our groundbreaking, ultra-thin in-cabin lidar ET25, entered new partnerships, broadened existing relationships with OEM customers on multi-year ADAS contracts, and signed our largest Robotaxi lidar contract in the company's history. 2023 will be a transformational year as we see increased interest from and collaboration with leading North American and European OEMs. We will continue leveraging our strong in-house manufacturing capabilities and proprietary ASIC platform to build premium-quality, affordable lidars that bring a higher level of safety to the future of intelligent driving systems."

Profitable Growth Lays Solid Foundation for Long-term Development

In this quarter, Hesai became the first profitable post-IPO lidar company. At the same time, the gross profit margin in the first quarter was 37.8%, an increase of 7.8% compared to the fourth quarter of last year. As of March 31, 2023, Hesai has a cash reserve of $457.2 million, providing strong support for Hesai's products and R&D, increasing Hesai's competitiveness in the global market.

Louis T. Hsieh, Hesai's Global CFO, said, "Our quarterly performance demonstrates our continued rapid growth trajectory, with net revenues of $62.6 million, an increase of 73.0% year-over-year and an increase of 5.1% quarter-over-quarter, a new record high. Our industry-leading gross margin also grew to 37.8%, up 780 basis points quarter-over-quarter. With our unrelenting efforts to improve revenue scalability and cost efficiency, we turned profitable this quarter by recording non-GAAP net income and positive operating cash flow. Lidar deliveries for the quarter soared by five times year-over-year to over 34,800 units, bringing our cumulative shipments to over 135,000 units. And we continue to outpace the competition, easily delivering higher quarterly revenues and lidar shipments than our six other US-listed lidar peers combined. We anticipate accelerating demand for our Autonomous Mobility and ADAS products tracking approximately 40% higher quarter-over-quarter in unit volume for the second quarter of 2023, which would be a record-high quarterly lidar volume for Hesai. This strong order momentum firmly demonstrates our global leadership position in the ADAS and Autonomous Mobility lidar markets."

Continuous Product Iterations that Lead the Industry's Technological Transformation

Hesai released its breakthrough in-cabin lidar at the Shanghai Auto Show - ET25. This product is specially designed to be installed behind the windshield. It is only 25 mm tall with only 12 W of power consumption, and a noise level of less than 25 dB. It has the extended-ranging capability and ultra-high resolution. The lidar is aesthetically pleasing and does not affect vehicle aeoradynamics. Hesai collaborated with global automotive glass leader Fuyao Group to create a specially designed windshield that improves infrared laser transmittance up to three times. This solution addresses the challenge of signal attenuation in windshields, ensuring excellent lidar performance, and enabling the mass production of this in-cabin design.

Accelerating Global Business Expansion

With excellent product strength and mass production capacity, Hesai has gained strong momentum and secured international market share. With its global business expansion, Hesai products have already won the trust of many North American and European OEMs, presenting an opportunity for explosive growth. Positioning the group for further success, and underlining their commitment to the European market, Hesai recently opened an office in Europe's "car capital", Stuttgart, Germany. With this strategic move, Hesai can further tap into the European markets, accelerating its business growth and reinforcing its position as a key player in the global lidar industry.

Hesai will continue to focus on R&D and technological innovation, providing global users with more diversified products and better services, and continuing to empower the global ADAS and Autonomous Mobility lidar market.

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