Pony.ai (PONY, Financial) has entered into a strategic alliance with Uber aimed at integrating Pony.ai's autonomous vehicles, known as Robotaxis, into Uber's service platform. This collaboration is initially set to commence in a significant Middle Eastern market later this year, with plans to expand to further international territories in due course.
Customers using the Uber app may soon have the option to select a ride fulfilled by one of Pony.ai's self-driving vehicles. In the early stages of this pilot phase, these Robotaxis will be accompanied by a safety operator to ensure a smooth transition until full autonomy is commercially launched.
PONY Key Business Developments
Release Date: March 25, 2025
- Full-Year Revenue: USD 75 million, an increase of 4.3% year over year.
- Robotaxi Services Revenue: USD 7.3 million, down 5.3% year over year.
- Robotruck Services Revenue: USD 40.4 million, up 61.3% year over year.
- Licensing and Applications Revenue: USD 27.4 million, down 30.1% year over year.
- Total Cost of Revenue: USD 63.6 million, up 15.6% year over year.
- Gross Profit: USD 11.4 million, with a gross margin of 15.2%.
- Total Operating Expenses: USD 296.9 million, an increase of 85.4% year over year.
- Non-GAAP Operating Expenses: USD 169.9 million, up 8.7% year over year.
- Loss from Operations: USD 285.5 million, compared to USD 143.2 million in 2023.
- Non-GAAP Loss from Operations: USD 158.5 million, compared to USD 139.5 million in 2023.
- Net Loss: USD 275 million, compared to USD 125.3 million in 2023.
- Non-GAAP Net Loss: USD 153.6 million, compared to USD 118.5 million in 2023.
- Cash and Cash Equivalents: USD 825.1 million at the end of 2024.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Pony AI Inc (PONY, Financial) has achieved technological readiness for mass commercialization of its Robotaxi services, with level 4 driverless operation capabilities in all weather conditions.
- The company has secured strong relationships with local governments and obtained necessary policy approvals for large-scale commercialization in China's tier 1 cities.
- Pony AI Inc (PONY) has established mass production partnerships with major automakers like Toyota, BAIC, and GAC, which will help in scaling up Robotaxi production.
- The company has developed its own ride-hailing platform, Pony Pilot, and formed strategic partnerships with leading TNCs to enhance service accessibility.
- Pony AI Inc (PONY) has made significant progress in its Robotruck business, including being the first in China to conduct driverless truck platooning on cross-provincial highways.
Negative Points
- Pony AI Inc (PONY) reported a decrease in Robotaxi services revenue by 5.3% year over year, primarily due to reduced service fees from autonomous vehicle engineering solutions.
- The company experienced a decrease in gross margin from 23% in 2023 to 15.2% in 2024, attributed to services with relatively low gross margins contributing more to revenues.
- Total operating expenses increased by 85.4% year over year, driven by accelerated R&D investment for the launch of the seventh generation Robotaxi vehicles.
- Pony AI Inc (PONY) reported a net loss of USD 275 million in 2024, compared to USD 125.3 million in 2023, indicating financial challenges during the commercialization phase.
- The company anticipates continued fluctuation in quarterly revenue and margins as it navigates the early stages of commercialization, which may impact financial stability.
