EHang reports 348% YoY jump in Q3 revenue, delivers 63 units

EHang announced financial results for the third quarter (Q3) with total revenue of RMB128.1m ($18.3m).

That figure is up 348% year-over-year from the same period last year as the company delivered 63 units of EH216-S series products.

“In Q3, EHang once again made remarkable milestones that reinforce our leadership and strategic vision in UAM. As the first eVTOL manufacturer to receive three key certifications for pilotless aerial vehicles,” said Huazhi Hu, founder, chairman and CEO, EHang.

“Quarterly deliveries of the new EH216-S hit a new high of 63 units, more than quadrupling from the prior year, driving robust revenue growth and reflecting strong market demand and recognition of our innovative eVTOL solutions.”

The company also reported stellar gross margins during the quarter at 61.2% of the revenue, an improvement of 340 basis points from the same period last year. However, despite higher margin, the company reported an operating loss of $7.8m, slightly lower on both year-over-year (YoY) as well as sequential basis as operating expenses increased by a significant 68%  YoY to $21.5m.

Breakdown of operating expenses showed $8.5m was on account of general and administrative expenses, followed by $6.7m in sales and marketing expenses with another $6.3m from the research and development costs.

“Driven by our pioneering eVTOL products, industry-first certifications, and deepened policy support, we continued to deliver outstanding financial performance that surpassed our guidance. Specifically, our Q3 revenue surged 347.8% year-over-year, reaching a record high of RMB128.1m, a testament to the powerful market resonance of our advanced EH216-S pilotless eVTOLs,” said Conor Yang, chief financial officer, EHang.

Overall, the company reported a net loss of $6.9m, an improvement of 28.3% from the same period of last year.

However, the company ended the quarter with cash and cash equivalents (including deposits, restricted short-term deposits, and short-term investments) of $153.6m.

In terms of outlook, the company expects revenues in the fourth quarter to be around $19.3m – an increase of 138.5% YoY. Overall, if the company meets its target for the last quarter, its total revenues during the year are expected to reach $61m.