WeRide (NASDAQ:WRD) Releases Earnings Results

WeRide (NASDAQ:WRD) issued its quarterly earnings results on Wednesday. The company reported ($0.18) earnings per share for the quarter, FiscalAI reports. The business had revenue of $34.11 million during the quarter. WeRide had a negative return on equity of 24.18% and a negative net margin of 228.47%.

Here are the key takeaways from WeRide’s conference call:

• Q2 financial performance improved sharply: Revenue rose 82% year over year and 103% quarter over quarter to RMB232 million, while gross margin expanded to a record 37.5% from 28.1% a year earlier. Net loss narrowed 1% and EBITDA loss narrowed 8.1% year over year.
• Overseas expansion is accelerating through an asset-light model. Overseas revenue increased 164% year over year and represented nearly 40% of group revenue; the international Robotaxi fleet roughly doubled to about 400 vehicles, with operations spanning 12 countries and management targeting meaningful overseas growth and profitability by the end of 2026.
• L2++/L3 ADAS commercialization is scaling rapidly: The company delivered approximately 30,000 equipped vehicles during Q2, with revenue increasing about 26 times year over year, and expects more than 100,000 installed units by year-end and over 500,000 cumulative deliveries next year. WeRide also announced an L3 proof-of-concept program with Mercedes-Benz.
• WeRide remains significantly unprofitable and continues to invest heavily in technology. Q2 net loss was RMB401 million and R&D expense rose 36% year over year to RMB434 million; management expects positive cash flow in a single quarter by 2028 and full-year break-even in 2029.

WeRide Trading Down 10.0%

WRD traded down $0.63 on Wednesday, hitting $5.70. 7,076,977 shares of the company were exchanged, compared to its average volume of 3,483,906. The firm has a 50-day moving average price of $6.00 and a two-hundred day moving average price of $6.96. The company has a market cap of $1.77 billion, a price-to-earnings ratio of -7.60 and a beta of 1.89. WeRide has a twelve month low of $5.18 and a twelve month high of $12.55.

Institutional Investors Weigh In On WeRide

Several institutional investors have recently modified their holdings of the company. NewEdge Advisors LLC acquired a new position in shares of WeRide during the 1st quarter worth about $27,000. JPMorgan Chase & Co. acquired a new stake in shares of WeRide during the second quarter worth about $30,000. Blue Trust Inc. purchased a new position in shares of WeRide during the first quarter worth approximately $34,000. Leonteq Securities AG acquired a new position in shares of WeRide in the 4th quarter valued at $36,000. Finally, Daiwa Securities Group Inc. purchased a new stake in shares of WeRide in the fourth quarter valued at about $65,000.

Analyst Upgrades and Downgrades

WRD has been the topic of several analyst reports. Weiss Ratings raised WeRide from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Tuesday, July 28th. Zacks Research lowered shares of WeRide from a “strong-buy” rating to a “hold” rating in a report on Tuesday, April 21st. Wall Street Zen upgraded WeRide from a “sell” rating to a “hold” rating in a research report on Sunday, June 21st. Finally, The Goldman Sachs Group initiated coverage on shares of WeRide in a research note on Thursday, April 16th. They set a “buy” rating for the company. Six equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $12.58.

About WeRide

WeRide Inc (NASDAQ: WRD) is a developer of autonomous driving technology focused on providing Level 4 (L4) self-driving solutions for passenger mobility and logistics. The company’s full-stack platform integrates sensors, computing hardware, software algorithms and vehicle controls to enable driverless taxis, shuttles and goods delivery vehicles. By combining perception, planning and controls in a turnkey system, WeRide aims to accelerate the commercialization of robotaxi services and autonomous fleet operations.

Founded in 2017 and headquartered in Guangzhou, China, WeRide maintains research and development centers in Silicon Valley and China.