Categories Analysis, Industrials

What was special about Nio’s Q3 earnings report?

Total revenues are expected to grow 119.7-126% YoY to $921.8-947.9 million

Shares of Nio Inc. (NYSE: NIO) were down 1.4% in afternoon hours on Wednesday, despite the company reporting pretty good results for the third quarter of 2020 a day ago. Nio’s stock has jumped over 1,000% since the beginning of this year and has gained a staggering 226% over the past three months.

Nio reported strong growth in sales and deliveries, narrowed its losses meaningfully, expanded its margins and provided an upbeat outlook. Its peers XPeng (NYSE: XPEV) and Li Auto (NASDAQ: LI) also reported strong results recently explaining the general enthusiasm over the electric vehicle market which is boosting these stocks.

Sales and deliveries

Nio’s revenues increased 146.4% year-over-year and 21.7% sequentially to $666.6 million in the third quarter. Vehicle sales rose 146% year-over-year and over 22% sequentially helped by higher sales of ES6 and ES8.  

The company delivered 12,206 vehicles during the quarter, reflecting a growth of over 154% YoY and 18% QoQ. In October, deliveries doubled year-over-year to 5,055 vehicles.  

Narrow loss, high margin

Nio managed to narrow its losses significantly compared to the previous year. On a reported basis, net losses were down 53.5% year-over-year. Adjusted net loss per ADS was $0.12.  

Gross margin in the quarter was 12.9% versus negative 12.1% in the prior-year period. This growth was fueled by higher vehicle margins which in turn were driven by lower purchase price of materials and lower unit manufacturing costs.  

New features

Nio unveiled the Navigate on Pilot feature in October, increasing the competitiveness of NIO Pilot and gaining positive responses from users. Earlier this month, the company launched a 100-kilowatt hour battery pack with battery upgrade plans and a 37% higher energy density than the 70-kilowatt hour battery pack. Its deliveries will start in December. The company will also provide permanent and flexible upgrades to users of the 70kWh battery pack.

Outlook

For the fourth quarter of 2020, Nio expects total deliveries to increase approx. 100.6-106.7% YoY and 35.2-39.3% QoQ to 16,500-17,000 vehicles. Total revenues are expected to grow 119.7-126% YoY and 38.3-42.2% QoQ to $921.8-947.9 million.

What made Nio’s earnings report special is that the company seems to have hit all its marks and its outlook too remains favorable. However, it remains to be seen how long the EV-maker can maintain this triple-digit growth over the coming quarters and this point casts a slight shadow over all the sunshine.

Click here to read the full transcript of Nio’s Q3 2020 earnings conference call

Looking for more insights on the earnings results? Click here to access the full transcripts of the latest earnings conference calls!

Most Popular

SNAP Earnings: All you need to know about Snap’s Q2 2021 earnings results

Snap Inc. (NYSE: SNAP) reported second quarter 2021 earnings results today. Revenues increased 116% year-over-year to $982 million. Net loss amounted to $151.6 million, or $0.10 per share, compared to

TWTR Earnings: Twitter swings to profit in Q2 as revenues surge 74%; results beat

Microblogging platform Twitter, Inc. (NYSE: TWTR) Thursday reported a profit for the second quarter of fiscal 2021, compared to a loss last year. Both earnings and revenue came in above

Earnings Infographic: Intel (INTC) Q2 2021 profit, revenue beat estimates

Intel Corporation (NASDAQ: INTC) Thursday reported financial results for the second quarter of 2021. The revenue was reported at $19.6 billion compared to $19.7 billion in the previous year's second

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top