NIO Inc. (NYSE:NIO) Q4 2024 Earnings Conference Call March 21, 2025 8:00 AM ET Company Participants Rui Chen - Head, Investor Relations William Li - Founder, Chairman and Chief Executive Officer Stanley Qu - Chief Financial Officer Conference Call Participants Tim Hsiao - Morgan Stanley Bin Wang - Deutsche Bank Paul Gong - UBS Yuqian Ding - HSBC Ming-Hsun Lee - Bank of America Xing Chang - CICC Tina Hou - Goldman Sachs Operator Hello ladies and gentlemen, thank you for standing by for NIO Incorporated’s Fou ...

Financial Data and Key Metrics Changes - For the full year of 2024, total revenue increased by 22% year-over-year to RMB 337.6 billion, with adjusted net profit reaching RMB 9.8 billion in Q4 2024 [6][34][36] - In Q4 2024, total revenue grew by 20.1% year-over-year to RMB 88.5 billion, with a decrease in cost of revenue ratio by 3.9 percentage points to 62.2% [34][36] - Total segment operating profit grew to RMB 10.7 billion, with operating margin increasing from 4.3% to 12.1% [35] Business Line Data and Key Metrics Changes - Core local commerce segment revenue grew by 18.9% year-over-year to RMB 65.6 billion, with operating profit improving to RMB 12.9 billion and operating margin at 19.7% [40][42] - The in-store business saw order volume increase by over 65% year-over-year, with significant growth in lower-tier markets [23][27] - The new initiative segment revenue increased by 23.5% year-over-year to RMB 22.9 billion, driven by grocery retail and overseas businesses [43] Market Data and Key Metrics Changes - Annual transacting users exceeded 77 million, and annual active merchants increased to 14.5 million [6] - The number of transitions for in-store services increased by high 40s year-over-year in Q4 2024, indicating strong growth in lower-tier markets [39] - The Shen Hui Yuan program accounted for over 40% of total core local commerce order volume, enhancing user engagement [112] Company Strategy and Development Direction - The company aims to facilitate industry digital transformation and improve operational efficiency while investing in AI and autonomous delivery technologies [31][68] - Expansion into overseas markets, particularly with the launch of Keeta in Saudi Arabia, is a key focus, with plans to grow the food delivery business [30][76] - The company is committed to enhancing the ecosystem for merchants and couriers, including a RMB 1 billion merchant support program [19][100] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth prospects of the business, emphasizing the importance of adapting to changing consumption trends [31][45] - The company plans to maintain a focus on high-quality growth and operational efficiency, with expectations for steady profit growth in the on-demand delivery business [103] - Management highlighted the potential of AI to enhance productivity and customer experience, with ongoing investments in AI infrastructure [52][62] Other Important Information - The company has implemented various measures to support couriers, including occupational injury insurance and anti-fatigue features [20][21] - The organizational restructuring has led to improved efficiency and integration across different business lines, enhancing user engagement [120] Q&A Session Summary Question: AI strategy and investment plans - Management emphasized an offensive strategy towards AI, integrating it into daily operations and developing in-house large language models to enhance productivity and service offerings [48][52] Question: Expansion plans for Keeta in the Middle East - Management confirmed successful operations in Saudi Arabia and plans for cautious expansion into other markets, focusing on food delivery as a foundation for growth [76][80] Question: Balancing investment in new initiatives and shareholder returns - Management stated that capital allocation strategies are regularly reviewed, with a focus on improving operational efficiency while committing to share buybacks as a primary method for shareholder returns [90][91] Question: Focus areas for food delivery and Meituan Instashopping - Management highlighted ongoing user acquisition efforts, particularly among younger demographics, and the importance of supply-side innovations to drive growth in both food delivery and Meituan Instashopping [95][97] Question: Competitive landscape and GTV growth expectations for in-store business - Management expressed confidence in maintaining strong GTV growth, leveraging digitalization trends and enhancing marketing strategies to solidify market leadership [108][110]

The page numbering is dependent on the placeholder text boxes on the page layout in the master view, so please DO NOT remove them Reports Record-Setting First Quarter Operating Results Outperforms December Guidance Raises Full Year 2025 Guidance First Quarter 2025 Earnings Presentation Because forward-looking statements involve risks and uncertainties, there are many factors that could cause our actual results, performance or achievements to differ materially from those expressed or implied by our forward-l ...

Financial Data and Key Metrics Changes - Total revenues for 2024 reached $37.3 million, representing an annual growth of approximately 9.5% compared to $34.1 million in 2023 [16] - The net loss for 2024 was $17.8 million or $3.22 per diluted share, an improvement from a net loss of $20.1 million or $13.02 per share in 2023 [19] - Adjusted EBITDA for 2024 was negative $15.3 million, an improvement from negative $19.5 million in 2023, driven by increased sales and reduced SG&A expenses [19] Business Line Data and Key Metrics Changes - The company placed 52 RotoLite XL lamps in Q4 2024, totaling 100 lamps since the launch in June 2024, contributing to the overall strategy for Ameluz PDT [3] - The cost of revenues for 2024 increased to $18.6 million from $17.4 million in 2023, influenced by sales volume but offset by lower transfer prices [17] Market Data and Key Metrics Changes - The company achieved a 5% price increase for Ameluz in Q4 2024, with the tube priced at $363, which may have influenced forward buying behavior [41] - The transfer price for Ameluz was reduced from 50% to 25% for all purchases in 2024 and 2025, expected to positively impact gross margins in 2025 [7][39] Company Strategy and Development Direction - The company aims to become cash flow positive while managing expenses without sacrificing sales, emphasizing the importance of sales growth and marketing efforts [48] - Future plans include expanding the use of Ameluz beyond actinic keratosis to treat non-melanoma skin tumors, with new data expected to be submitted to the FDA [6] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving another record year in 2025, supported by past investments and business plans [2] - The company is excited about the potential for Ameluz in treating moderate to severe acne, with ongoing phase two studies nearing completion [10] Other Important Information - Cash and cash equivalents as of December 31, 2024, were $5.9 million, a significant increase from $1.3 million at the end of 2023, attributed to strong growth and additional capital raised [20] - Inventory levels were reduced to $6.6 million from $10.9 million year-over-year, indicating improved inventory management [21] Q&A Session Summary Question: What was the Q4 2024 Ameluz unit growth year over year? - Answer: Approximately 2% [27] Question: Was there any sales force addition or attrition over 2024? - Answer: No, the number of salespeople remained approximately constant [29] Question: What is the acne enrollment number and data timing? - Answer: The enrollment number is 116, with potential for earlier trial conclusion [31] Question: How will the new transfer pricing impact gross margins in 2025? - Answer: The lower transfer price of 25% is expected to positively impact gross margins [39] Question: What was the percentage of the price increase in Q4? - Answer: There was a 5% price increase for Ameluz [41] Question: Will SG&A and R&D expenses continue to trend down in 2025? - Answer: SG&A is expected to hold steady, while R&D will remain stable compared to recent months [43][44]

51Talk Online Education Group (NYSE:COE) Q4 2024 Results Conference Call March 21, 2025 8:00 AM ET Company Participants David Chung - IR Jack Huang - CEO Cindy Tang - CFO Operator Hello, ladies and gentlemen, thank you for standing by for 51Talk Online Education Group's Fourth Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. Today's conference call is being recorded. I would now like to turn the call over to your host, Mr. . David Chung, Investor Relations for ...

Financial Data and Key Metrics Changes - Total revenues grew 5% year-over-year to $2.7 billion, with adjusted EBITDA increasing by 12% to $298 million [21][34] - Adjusted EPS for the fourth quarter was $0.09, with an adjusted EBITDA margin of 10%, flat year-over-year [34][38] - Same center revenue increased by 5% to $2.4 billion, with average weekly full-time enrollments slightly up to 145,000 [21][22] Business Line Data and Key Metrics Changes - Early education centers saw a 4% revenue growth year-over-year to $593 million, with same center revenue up 3% [35] - Champions business revenue expanded by 12% in the fourth quarter, totaling $54 million, with 1,025 sites, an 8% increase from the previous year [36][20] Market Data and Key Metrics Changes - Demand for quality early childhood education in the US continues to exceed supply, presenting growth opportunities [9][10] - Occupancy rates improved by 90 basis points to 69.8%, with expectations for continued growth [22][40] Company Strategy and Development Direction - KinderCare aims to expand access to high-quality childcare through new centers and acquisitions, leveraging its scale and brand recognition [10][11] - The company is focused on enhancing its offerings to meet the needs of families and employers, including customized childcare benefits [14][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued bipartisan support for early childhood education funding, which is crucial for growth [16][62] - The outlook for 2025 includes revenue guidance of $2.75 billion to $2.85 billion, representing a 3% to 7% increase, with adjusted EBITDA expected to range from $310 million to $325 million [45][46] Other Important Information - Approximately 35% of total revenue in 2024 came from subsidy funding, with 20% from employer partnerships [26][27] - The company opened 77 new Champion sites in 2024 and plans to continue this momentum in 2025 [28] Q&A Session Summary Question: How is the first quarter trending relative to guidance? - Management indicated that the first quarter is tracking in line with annual guidance, with $4.6 million of revenue from acquisitions in Q4 [56][57] Question: What percentage of revenue is tied to US federal government funding? - Approximately 35% of revenue comes from the Child Care and Development Block Grant, with bipartisan support expected to continue [61][62] Question: What are the expectations for occupancy rates in lower quintiles? - Management noted that engagement with teachers and families is key to improving occupancy in lower-performing centers [68][69] Question: What factors could influence revenue and margin guidance? - Revenue growth will depend on occupancy rates and cost controls, with potential upside from acquisitions if market conditions remain favorable [70][74] Question: How is the B2B employer-sponsored business performing? - Occupancy rates in employer-sponsored centers are trending in the high 70s, with opportunities for further expansion [78][79] Question: What is the rationale for expecting flat occupancy in 2025? - Management emphasized the need for operational practices to gain traction before expecting significant occupancy increases [100][101] Question: Are acquisitions included in the revenue guidance? - The revenue guidance includes a 1% to 2% contribution from acquisitions, but specific volume guidance is not provided [102][103]

Financial Data and Key Metrics Changes - In Q4 2024, total revenue for the group increased 7.8% year-over-year to RMB6 billion, exceeding guidance [45] - For the full-year 2024, total revenue increased 9.2% year-over-year to RMB23.9 billion [45] - Adjusted net income was RMB321 million in Q4 2024, with full-year adjusted net income increasing 5.8% year-over-year to RMB3.7 billion [54] - The group generated operational cash inflow of RMB7.5 billion in 2024 [54] Business Line Data and Key Metrics Changes - Legacy-Huazhu's revenue increased 9.2% year-over-year to RMB4.8 billion in Q4 2024, with full-year revenue growing 9.1% to RMB19 billion [45] - Legacy-DH's revenue rose 2.9% year-over-year to RMB1.2 billion in Q4 and increased 9.6% year-over-year to RMB4.9 billion for the full-year [46] - Legacy-Huazhu's blended RevPAR decreased slightly by 3% to RMB235, while occupancy rate improved by 0.2 percentage points to 81.2% [17][18] Market Data and Key Metrics Changes - The number of domestic tourists in China reached 5.6 billion, up 14.8% year-over-year, with total domestic tourism spending increasing 17.1% to RMB5.8 trillion [10] - The hotel turnover for the full-year 2024 was RMB93 billion, a 15% year-over-year increase [44] Company Strategy and Development Direction - The company aims to reach 20,000 hotels in 2,000 cities in the near future, focusing on high-quality development and brand positioning [16][32] - The asset-light model strategy is expected to generate stronger and healthier cash flow, with over 50% of revenue contribution from asset-light business [13][47] Management Comments on Operating Environment and Future Outlook - Management noted that while there are macro uncertainties, domestic travel demand continues to grow steadily, with leisure travel outpacing business travel [8][10] - For Q1 2025, management expects a low single-digit decline in RevPAR year-over-year, but remains confident about stabilization and potential growth for the full year [65] Other Important Information - The company revised its dividend payout policy to no less than 60% of net profit and announced a US$300 million final cash dividend for the second half of 2024 [56] - The company plans to open around 2,300 hotels in 2025 while closing around 600 hotels, representing a 15% year-over-year growth in hotel network [60] Q&A Session Summary Question: RevPAR outlook for Q1 and full-year - Management expects a low single-digit decline in Q1 RevPAR year-over-year but is confident about stabilization and potential growth for the full year [65] Question: Strategy change for Legacy-DH and earnings recovery - Management indicated that the focus for 2025 will be on stabilizing the business and performance while looking for growth opportunities through asset-light and organic growth [67][68] Question: Future dividend payout expectations - Management confirmed the commitment to the current shareholder return plan, aiming to return up to US$2 billion over three years, primarily through cash dividends [78]

Financial Data and Key Metrics Changes - The company reported total revenue of $10.6 million for Q4 2024, a 35% increase from Q3 2024 and a 170% increase from Q4 2023 [18][20] - Full-year revenue for 2024 reached $24.2 million, representing a 167% increase from $9.1 million in 2023 [20][36] - Product revenue in Q4 2024 was $10.3 million, a 71% sequential increase and nearly 1,000% increase year-over-year from $0.9 million in Q4 2023 [33][34] - Gross margin improved to negative 21% in Q4 2024 from negative 65% in Q3 2024 and negative 98% in Q4 2023 [38] - Operating expenses for Q4 2024 were $9.5 million, a 55% increase from Q3 2024 and a 62% increase year-over-year [40] Business Line Data and Key Metrics Changes - The company shipped to 98 customers in Q4 2024, with 53 being new to the Amprius platform [17] - The light electrical vehicle market contributed about 25% of Q4 revenue, with expectations for significant growth in this segment [22][116] - The company has a high-performance commercial battery portfolio with 14 different SKUs available [16][19] Market Data and Key Metrics Changes - 77% of Q4 revenue came from outside the United States, compared to 22% in the same period last year [18] - The light electrical vehicle market is projected to reach approximately $136 billion by 2029 [22] - The global drone market is expected to surge from $18 billion in 2023 to $213 billion by 2032 [28] Company Strategy and Development Direction - The company aims to lead in technology innovation and product performance while ensuring world-class manufacturing capability and sufficient production capacity [52] - Amprius plans to expand its customer pipeline and drive revenue growth through additional manufacturing partnerships [54] - The company is actively working on developing a global contract manufacturing network to mitigate geopolitical risks [30][64] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2025, expecting to deliver new high-performance batteries and engage with more customers [54] - The company is monitoring policy challenges and potential industry headwinds due to changes in federal administration [30] - Management highlighted the importance of customer qualification processes and the potential for significant revenue growth from existing customers [124][126] Other Important Information - The company ended 2024 with $55.2 million in net cash and no debt [46] - A total of $16 million in new customer purchase orders was added to the backlog in Q4 2024, providing visibility into growth for 2025 [25][88] Q&A Session Summary Question: Can you talk about the diversity of applications and customization required for customers? - Management noted three types of customers: those replacing existing batteries, those needing qualification, and those requiring certification, with confidence in converting many to purchase orders in 2025 [58][60] Question: Can you discuss your strategy for incremental contract manufacturing? - The company has successfully utilized contract manufacturing without significant capital expenditure and is exploring partnerships in Korea and Europe to diversify manufacturing locations [62][64] Question: Can you provide an update on the balance sheet activity? - The company entered a blackout period as of December 31 and has not been active in the market since then [68] Question: Can you walk us through the strategic decision to target many customers with smaller volumes? - Management emphasized that all customers have high volume potential, and engaging with more customers increases opportunities for success [72][74] Question: What is the expected revenue cadence for 2025? - Management anticipates sequential improvements in revenue throughout 2025, despite some headwinds in Q1 [135] Question: How should we think about gross margin progression for the year? - Management indicated that gross margins are expected to improve as SiCore sales contribute positively from day one [100]

Financial Data and Key Metrics Changes - The company generated a record revenue of $244.4 million for the full year, representing an 11% year-over-year growth [12][41] - Non-GAAP gross margin for the year was a record 60%, up from 54% a year ago [12][51] - Adjusted EBITDA loss for the full year was approximately $10.6 million, significantly improved from a $55.3 million loss in the previous year [52] - Q4 revenue reached a record $61.6 million, with a 5% year-over-year growth [41] - The company achieved its first adjusted EBITDA profitable quarter in Q4 [11][52] Business Line Data and Key Metrics Changes - Revenue from the defense and intelligence sector grew more than 20% year-over-year [20][43] - Civil government revenue grew approximately 15% year-over-year [26][43] - The commercial sector faced a decline of more than 10% year-over-year but showed signs of stabilization [43] - Backlog increased to approximately $498.5 million, up 115% quarter-over-quarter [58] Market Data and Key Metrics Changes - EMEA revenue grew more than 15% year-over-year, while Latin America revenue grew approximately 30% [44] - Asia Pacific revenue grew nearly 15%, and North America revenue grew approximately 5% year-over-year [44] - The company anticipates significant growth potential across all regions, particularly in national security solutions [45][46] Company Strategy and Development Direction - The company shifted to a vertically-focused go-to-market structure, emphasizing selling solutions rather than just data [10][42] - A landmark $230 million commercial agreement with JSAT was signed, marking a significant step in the satellite services market [14][56] - The company aims to be a leading provider of geospatial data and solutions while expanding into satellite services [19] - The strategic focus for the upcoming year includes leveraging AI to enhance data accessibility and solution development [38][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve cash flow profitability within the next 24 months [66] - The geopolitical landscape is seen as a driver for increased demand for satellite services and solutions [18][109] - Management highlighted the importance of strategic partnerships and the potential for significant revenue growth from new contracts and AI-enabled solutions [66][80] Other Important Information - The company ended the fiscal year with approximately $222 million in cash and cash equivalents, significantly reducing cash burn [55] - The average contract length remains approximately two years, with 97% of the end-of-period ACV book consisting of recurring contracts [49] Q&A Session Summary Question: Focus on pre-cash flow dynamics and CapEx - Management discussed the peak CapEx investment cycle and the structure of the JSAT contract, which is front-end loaded to support working capital [71][72] Question: AI deal with Anthropic and monetization - The partnership with Anthropic is seen as an accelerant for delivering value through AI-enabled solutions, with a focus on immediate revenue opportunities [78][80] Question: Doubling growth rate and revenue opportunities - The doubling of the growth rate is based on secured contracts and potential upside from new satellite services and AI solutions [84][85] Question: Revenue guidance and impact of Washington's situation - Management indicated a conservative approach to guidance, factoring in macro pressures and potential delays in new business [102][103] Question: Space services and existing capabilities - The focus remains on existing satellite configurations, with potential for customization in future partnerships [111][112] Question: Strategy for larger customers and net dollar retention - The strategy involves building solutions that enhance customer value and retention, with a focus on larger accounts [132][125]

INVESTOR PRESENTATION March 2025 Forward Looking Statements This presentation contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this document, including but not limited to statements regarding possible or assumed future results of operations, business strategies, development plans, regulatory activities, market opportunity competitive position, potential growth opportunities, a ...