WeRide, Inc. Q4 FY2024 earnings call

• Robotaxi Achievements: Launched new purpose-built Robotaxi GXR, which started full driverless commercial operation in Beijing and collaborated with Uber in Abu Dhabi, aiming to have 50 Robotaxis on Uber platform by mid-2025. Also launched strategic pilot in Switzerland and obtained permit for commercial Robotaxi ride-hailing in Beijing.
• International Expansion: Spearheading commercialization globally since 2021, with deployments in over 30 cities in 10 countries. Collaborated with Uber, Zurich Airport, Renault, etc. Domestically, expanded footprint to over 20 cities in China with various autonomous products.
• Technology Innovation: Deployed end-to-end models for ADAS and L4 driverless systems, using VLM as backbone. Unveiled new products like S1 RoboSweeper and W5 Robovan, expanding addressable market and revenue streams.

In 2024, WeRide's total revenue for the fourth quarter was 141 million RMB, a 3% decrease from the previous year. Product revenue saw substantial growth, with a 46% increase to 252 million RMB in Q4 2024, driven by sales of Robotaxi, RoboSweeper, and Robovan, though offset by a decline in Robobus sales. Service revenue for Q4 was 89 million RMB, down due to completed customized R&D services. For the full year 2024, total revenue was 361 million RMB. Product revenue increased by 62% to 88 million RMB, while service revenue decreased by 21% to 273 million RMB. Product growth margin in Q4 was 17% and service growth margin was 48%, with full-year margins at 18% and 35% respectively.

• Robotaxi Business Model: For international markets, combine vehicle sales, fixed service fees, and revenue-sharing with partners. Aim to achieve positive contribution margin from day one. Expect operating profit margin of ~60% in high-cost markets by 2030.
• R&D and Deployment: Expect R&D expense to continue growing moderately with recruitment of top talents and upgrade of compute resources. Plan to deploy hundreds of vehicles across multiple cities worldwide in 2025, including next-generation AV system with advanced cameras and LiDARs.

• Scaling Challenges: Challenges in city-level opening up and handling operational challenges at different fleet scales. Need to maintain robustness of technology and safety during large-scale operation.
• Regulatory Hurdles: Need to foster constructive dialogue with regulators in new markets to realize mutual vision for safe autonomous driving.
• Market Fluctuations: Dependence on single markets could be a risk, but multi-market approach helps diversify revenue streams and improve resilience.

Q: What is WeRide's current Robotaxi business model and latest progress?

A: Our Robotaxi business model for international markets combines vehicle sales, fixed service fees, and revenue-sharing with partners. Progress includes launching in Abu Dhabi with Uber, aiming for 50 Robotaxis on Uber by mid-2025, and pilot in Switzerland.

Q: How does WeRide view the future competitive landscape in Robotaxi?

A: Robotaxi has high entry barriers with only a few top players. WeRide is a pioneer with global leadership in technology and commercialization, unique foundation model, and ability to handle scaling challenges with progressive approach.

Q: What major challenges do you foresee in scaling Robotaxi operation?

A: City-level opening up and handling operational challenges at different fleet scales. Need to gradually introduce products and build mutual trust with regulators.

Q: Why expand in multiple countries instead of focusing on domestic market?

A: Diversify revenue streams, tap into markets facing aging population and labor cost challenges, engage local stakeholders, and shape regulatory frameworks. Multi-market approach improves resilience against single market fluctuations.