Affected by the timing of project revenue recognition, Pony AI's revenue in the fourth quarter of 2024 decreased by nearly 30% year-on-year, and net losses expanded by 7.7 times. Nevertheless, the company's Robotaxi services continue to expand in first-tier cities in China, with Robotruck service revenue increasing by 72.7% year-on-year in the fourth quarter.
On March 25, Pony AI released its financial report for the fourth quarter and the full year of 2024. Key points are as follows:
Revenue Performance: Total revenue for Q4 was $35.5 million, a year-on-year decrease of 29.8%, mainly affected by the timing of project revenue recognition rather than a deterioration in fundamentals; full-year revenue was $75 million, a year-on-year increase of 4.3%.
Gross Profit: Q4 gross profit was $7.5 million, a year-on-year decrease of 56.5%; gross margin was 21.0%, down from 33.9% in the same period last year.
Loss Situation: Q4 net loss was $181 million, an increase of 774.9% compared to a loss of $20.7 million in the same period last year; full-year net loss was $275 million, compared to $125.3 million in the same period last year.
Core Business Highlights: Robotruck service revenue increased by 72.7% year-on-year in Q4, reaching $12.9 million; Robotaxi service revenue significantly decreased by 61.9% to $2.6 million. Licensing and application business was also affected by the timing of project revenue recognition, with revenue decreasing by 45% year-on-year to $20 million.
Operating Expenses: Q4 operating expenses reached $180.6 million, a year-on-year increase of 313.9%. Among them, R&amp;D expenses surged to $147.8 million, mainly due to equity incentive expenses related to the IPO and accelerated R&amp;D investment to support the development of the seventh-generation Robotaxi.
Funding Situation: As of December 31, 2024, the company held a total of $745.2 million in cash, short-term investments, and restricted cash, significantly increasing from $589.8 million at the end of 2023, mainly due to funds raised from a successful IPO.
2025 Guidance: Accelerate the mass production of the seventh-generation Robotaxi, with expected deliveries of over 1,000 vehicles in 2025.
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<h2>Dual Advancement of Robotaxi and Robotruck</h2>
Pony AI's Robotaxi business faced short-term challenges in the fourth quarter, with Q4 Robotaxi service revenue significantly decreasing by 61.9% to $2.6 million, mainly due to reduced engineering service fees from cooperative projects.
However, the company has made significant progress in commercial expansion in first-tier cities such as Beijing, Shanghai, and Guangzhou. For example, the paid Robotaxi service from Beijing South Station to Yizhuang has officially launched, and Guangzhou has also partnered with ComfortDelGro to launch a pilot project.
In contrast, the Robotruck business performed well, with revenue increasing by 72.7% year-on-year
Pony AI stated that the company has become the first in China to be approved for testing automated truck platooning on interprovincial highways, which will greatly enhance logistics efficiency. The company has also partnered with Amap to integrate its Robotaxi into Amap's ride-hailing service, allowing users to directly book autonomous travel services through the Amap app.
<h2>Mass Production Cooperation and Expansion Plans</h2>
In terms of mass production, Pony AI has reached a strategic cooperation with GAC Aion and BAIC New Energy to accelerate the mass production of the seventh-generation Robotaxi, with plans to deliver over 1,000 vehicles by 2025, initially deploying them in the Guangdong-Hong Kong-Macao Greater Bay Area, with future plans to expand to other regions and markets.
Regarding global expansion, Pony AI has successfully entered the South Korean market, obtaining a temporary autonomous driving testing permit in the Gangnam District of Seoul; at the same time, its European division has signed a memorandum of understanding with a leading transportation company in Luxembourg to further advance its layout in the European market

PONY

Pony AI stated that the decline in Q4 revenue was mainly affected by the timing of project revenue recognition, rather than a deterioration in fundamentals, with annual revenue of $75 million, a year-on-year increase of 4.3%. The company is accelerating the mass production of the seventh-generation Robotaxi, expecting to deliver over 1,000 units in 2025

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Pony AI

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Pony AI's Q4 revenue decreased by 29.8% year-on-year, and net losses expanded by 7.7 times, with Robotaxi service revenue declining by 61.9% | Financial Report Insights