EHang posts $9.9m loss in 2Q
Chinese urban air mobility technology platform EHang announced financial results for the second quarter of 2024 reporting a 6% year-over-year decline in net loss to $9.9m compared to $10.4m in the same period last year.
The losses were lower on account of more than 9x increase in revenue which clocked in at $14m compared to just $1.4m in the same period last year.
“The obtainment of three certifications for the EH216-S enables us to expedite our production and deliveries, which, together with enhanced government initiatives for advancing the low-altitude economy, have led to a substantial increase in demands and orders from various domestic and international customers that include governments and tourism operators,” said Huazhi Hu, founder and CEO, EHang.
“As a result, we delivered a record 49 units of EH216-S during the quarter, driving exceptional revenue growth as well as inked hundreds-of-units purchase orders and pre-orders for EH216-S in China.”
With $14m in revenue, the company reported a gross margin of 62% during the quarter which translated into $8.7m in absolute terms.
However, expenses in the form of sales and marketing, general and administration and research and development all witnessed a massive increase of 102%YoY, 74%YoY and 65%YoY, respectively during the quarter under review.
Subsequently, the company posted an operating loss of $10.6m, 3% higher than 2Q of last year.
“In addition, our cash position continues to strengthen as the company has raised $76.2m through the at-the-market equity offering, so we will not continue selling ADSs under the at-the-market program for the remainder of 2024,” said the company’s CFO Conor Yang.
In its outlook for the third quarter of 2024, the company said it expects total revenues to be around RMB123m (US$17.2m), representing an increase of approximately 329.8% year-over-year and 20.6% quarter-over-quarter.
Earlier in the first quarter of 2024, EHang reported 164% year-over-year increase in total revenue to $8.5m compared to $3.2m in the same period last year. The company attributed the sharp increase in revenue to higher sales volume for its EH216 products.
