NIO Q4 Loss Wider Than Expected, Revenues Increase Y/Y

Core Insights - NIO Inc. reported a fourth-quarter 2024 loss per American Depositary Share (ADS) of 47 cents, which was wider than the Zacks Consensus Estimate of a loss of 33 cents, and compared to a loss of 45 cents in the same quarter last year. Revenue for the quarter was $2.7 billion, missing the estimate of $2.85 billion but reflecting a 12.5% increase year-over-year [1] Group 1: Vehicle Deliveries and Revenue - NIO delivered 72,689 vehicles in the fourth quarter, representing a 45.2% year-over-year increase, including 19,929 vehicles from the newly launched ONVO brand. Revenue from vehicle sales was $2.39 billion, up 10.1% year-over-year due to increased delivery volume. Other sales reached $281.6 million, a 30.2% increase year-over-year [2] Group 2: Profitability Metrics - Gross profit for the quarter was $316.3 million, a 75.5% increase from the previous year, attributed to decreased cost of sales. The gross margin improved to 11.7%, up from 7.5% a year ago. Vehicle margin increased to 13.1% from 11.9% in the fourth quarter of 2023 due to lower material costs per unit [3] Group 3: Cost Management and Financial Position - Research and development costs were $498.1 million, down 10.9% year-over-year. Selling, general, and administrative costs totaled $668.3 million, a decrease of 19.4% year-over-year. Loss from operations decreased to $826.5 million from $933.2 million a year ago. As of December 31, 2024, cash and cash equivalents were $5.7 billion, with long-term debt at $1.57 billion [4] Group 4: Future Projections - For the first quarter of 2025, NIO projects deliveries between 41,000 and 43,000 vehicles, indicating a year-over-year increase of 36.4% to 43.1%. Revenue is estimated to be between $1.69 billion and $1.76 billion, suggesting a year-over-year uptick of 23.3% to 28.5% [5]