Xpeng reported revenue of RMB 10.1 billion in the third quarter, with a record gross margin of 15.3 percent, beating analysts' expectations.
Xpeng (NYSE: XPEV) reported strong third-quarter financial results, with revenue exceeding expectations and gross margin hitting a record high.
The Chinese electric vehicle (EV) maker reported third-quarter revenue of 10.1 billion yuan ($1.44 billion), beating analysts' estimates of 9.9 billion yuan in a Bloomberg survey, according to its unaudited financial results released today.
Revenue for the quarter was the second-highest on record behind RMB 13.1 billion in the fourth quarter of 2023, exceeding the upper end of the guidance range of between RMB 9.1 billion and RMB 9.8 billion. This represents an increase of 18.4 percent from the same period in 2023 and up 24.5 percent from the second quarter of 2024.
Xpeng's revenue from vehicle sales for the third quarter was RMB 8.8 billion, an increase of 12.1 percent from RMB 7.84 billion for the same period in 2023 and an increase of 29.0 percent from RMB 6.82 billion for the second quarter of 2024. The increase was mainly attributable to higher delivery volumes, the company said.
In the third quarter, Xpeng delivered 46,533 vehicles, exceeding the upper end of its guidance range of 41,000 to 45,000 vehicles, previously published data show.
Deliveries for the quarter were the second highest ever, behind 60,158 in the fourth quarter of last year. That's up 16.31 percent year-on-year and up 54.05 percent from the second quarter.
The company's revenue from services and others was RMB 1.31 billion in the third quarter, an increase of 90.7 percent from RMB 690 million in the same period in 2023 and an increase of 1.1 percent from RMB 1.29 billion in the second quarter of 2024.
The year-on-year increase was mainly attributable to higher revenue related to technology partnerships with Volkswagen, Xpeng said.
Xpeng's third-quarter gross margin was a record 15.3 percent, beating analysts' expectations of 13.8 percent. The figure was negative 2.7 percent in the same period in 2023 and 14.0 percent in the second quarter of 2024. Its previous gross margin record high was 14.4 percent in the third quarter of 2021.
The company reported a vehicle margin of 8.6 percent in the third quarter, compared to negative 6.1 percent in the same period in 2023 and 6.4 percent in the second quarter of 2024. The year-on-year increase was primarily attributable to cost reductions and improved model mix, and the sequential increase was primarily attributable to cost reductions, Xpeng said.
It had a services and others margin of 60.1 percent in the third quarter, compared with 36.1 percent in the same period in 2023 and 54.3 percent in the second quarter of 2024. The increase was mainly attributed to higher gross margin from the revenue from technical R&D services.
Xpeng's net loss for the third quarter was RMB 1.81 billion, compared to RMB 3.89 billion for the same period in 2023 and RMB 1.28 billion for the second quarter of 2024.
Non-GAAP net loss for the third quarter was RMB 1.53 billion, compared to RMB 2.79 billion for the same period in 2023 and RMB 1.22 billion for the second quarter of 2024.
Xpeng's research and development expenses for the third quarter were a record RMB 1.63 billion, an increase of 25.1 percent compared to RMB 1.31 billion for the same period in 2023 and an increase of 11.3 percent compared to RMB 1.47 billion for the second quarter of 2024.
The increase was mainly due to higher expenses related to new model development as the company expands its product portfolio to support future growth, Xpeng said.
As of September 30, Xpeng held cash and cash equivalents, restricted cash, short-term investments and time deposits of RMB 35.75 billion, compared with RMB 37.33 billion as of June 30.
Xpeng guided fourth-quarter vehicle deliveries to be in the range of 87,000 to 91,000 units, representing a year-on-year increase of 44.6 percent to 51.3 percent.
The guidance means that it is expected to deliver a total of 63,083 to 67,083 vehicles in November and December, considering that Xpeng delivered 23,917 vehicles in October.
Xpeng guided fourth-quarter revenue to be in the range of RMB 15.3 billion to RMB 16.2 billion, up around 17.2 percent to 24.1 percent year-on-year.
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