Hesai Group's Q4 2024: Contradictions in LiDAR Growth, Pricing Strategies, and Margin Outlook

These are the key contradictions discussed in Hesai Group's latest 2024Q4 earnings call, specifically including: LiDAR adoption and volume growth expectations, and pricing strategy and volume commitments:



Record LiDAR Shipments and Revenue Growth:
- Hesai Group reported record LiDAR shipments exceeding 500,000 units in 2024, marking a growth rate of more than doubling for four consecutive years.
- Revenue increased to a record high of RMB2 billion or USD285 million, with ADAS and robotic sectors being the primary drivers.

ADAS and Robotics Market Expansion:
- The company projects 1.2 million to 1.5 million LiDAR shipments for 2025, with nearly 200,000 units for robotic LiDARs.
- This expansion is driven by the rapid adoption of LiDAR in ADAS and the growing demand in the robotics market, including robotaxi, industrial automation, and advanced 3D vision applications.

Financial Performance and Profitability:
- Hesai achieved full year non-GAAP net profits of RMB14 million or USD1.9 million in 2024, marking the world's first LiDAR company to achieve this milestone.
- The company expects GAAP profitability of RMB200 million to RMB350 million and non-GAAP profitability of RMB350 million to RMB500 million in 2025.

International Market Penetration:
- Hesai secured a multi-year exclusive design win with a top European OEM, marking their largest global program for automotive LiDAR.
- This expansion is a testament to the company's quality, performance, and commitment to innovation, opening doors to global markets.