Artificial Intelligence
NIO Inc. Reports Unaudited Third Quarter 2019 Financial Results
Quarterly Total Revenues reached RMB1,836.8 million (US$257.0 million)
Quarterly Deliveries of the ES8 and the ES6 were 4,799 vehicles
SHANGHAI, China, Dec. 30, 2019 (GLOBE NEWSWIRE) — NIO Inc. (“NIO” or the “Company”) (NYSE: NIO), a pioneer in China’s premium electric vehicle market, today announced its unaudited financial results for the third quarter ended September 30, 2019.
Operating Highlights for the Third quarter of 2019
- Deliveries of vehicles were 4,799 in the third quarter of 2019 including 4,196 ES6s and 603 ES8s, compared with 3,553 vehicles delivered in the second quarter of 2019.
Key Operating Results | |||
2019 Q3 | 2019 Q2 | 2019 Q1 | |
Deliveries | 4,799 | 3,553 | 3,989 |
Financial Highlights for the Third quarter of 2019
- Vehicle sales were RMB1,733.5 million (US$242.5 million) in the third quarter of 2019, representing an increase of 22.5% from the second quarter of 2019 and an increase of 21.5% from the same quarter of 2018.
- Vehicle margin1 was negative 6.8%, compared with negative 24.1% in the second quarter of 2019 and negative 4.3% in the same quarter of 2018.
- Total revenues were RMB1,836.8 million (US$257.0 million) in the third quarter of 2019, representing an increase of 21.8% from the second quarter of 2019 and an increase of 25.0% from the same quarter of 2018.
- Gross margin was negative 12.1%, compared with negative 33.4% in the second quarter of 2019 and negative 7.9% in the same quarter of 2018.
- Loss from operations was RMB2,409.2 million (US$337.1 million) in the third quarter of 2019, representing a decrease of 25.3% from the second quarter of 2019 and a decrease of 14.3% from the same quarter of 2018. Excluding share-based compensation expenses, adjusted loss from operations (non-GAAP) was RMB2,338.8 million (US$327.2 million) in the third quarter of 2019, representing a decrease of 25.4% from the second quarter of 2019 and a 1.6% decrease from the same quarter of 2018.
- Net loss was RMB2,521.7 million (US$352.8 million) in the third quarter of 2019, representing a decrease of 23.3% from the second quarter of 2019 and a decrease of 10.3% from the same quarter of 2018. Excluding share-based compensation expenses, adjusted net loss (non-GAAP) was RMB2,451.2 million (US$342.9 million) in the third quarter of 2019, representing a decrease of 23.2% from the second quarter of 2019 and a 3.1% increase from the same quarter of 2018.
- Net loss attributable to NIO’s ordinary shareholders was RMB2,553.6 million (US$357.3 million) in the third quarter of 2019, representing a decrease of 22.9% from the second quarter of 2019 and a decrease of 73.8% from the same quarter of 2018. Excluding share-based compensation expenses and accretion on redeemable non-controlling interests to redemption value, adjusted net loss attributable to NIO’s ordinary shareholders (non-GAAP) was RMB2,451.3 million (US$342.9 million).
- Basic and diluted net loss per American depositary share (ADS)2 were both RMB2.48 (US$0.35) in the third quarter of 2019. Excluding share-based compensation expenses and accretion on redeemable non-controlling interests to redemption value, adjusted basic and diluted net loss per ADS (non-GAAP) were both RMB2.38 (US$0.33).
- Cash and cash equivalents, restricted cash and short-term investment were RMB1,960.7 million (US$274.3 million) as of September 30, 2019.
Key Financial Results
(in RMB million, except for per |
|||||||||||||
2019 Q3 | 2019 Q2 | 2018 Q3 | % Change3 | ||||||||||
QoQ | YoY | ||||||||||||
Vehicle Sales | 1,733.5 | 1,414.5 | 1,426.9 | 22.5 | % | 21.5 | % | ||||||
Vehicle Margin | -6.8 | % | -24.1 | % | -4.3 | % | 17.3 | % | -2.5 | % | |||
Total Revenues | 1,836.8 | 1,508.6 | 1,469.6 | 21.8 | % | 25.0 | % | ||||||
Gross Margin | -12.1 | % | -33.4 | % | -7.9 | % | 21.3 | % | -4.2 | % | |||
Loss from Operations | (2,409.2 | ) | (3,226.1 | ) | (2,809.9 | ) | -25.3 | % | -14.3 | % | |||
Adjusted Loss from Operations (non-GAAP) | (2,338.8 | ) | (3,133.9 | ) | (2,377.7 | ) | -25.4 | % | -1.6 | % | |||
Net Loss | (2,521.7 | ) | (3,285.8 | ) | (2,810.4 | ) | -23.3 | % | -10.3 | % | |||
Adjusted Net Loss (non-GAAP) | (2,451.2 | ) | (3,193.6 | ) | (2,378.2 | ) | -23.2 | % | 3.1 | % | |||
Net Loss Attributable to Ordinary Shareholders | (2,553.6 | ) | (3,313.7 | ) | (9,756.8 | ) | -22.9 | % | -73.8 | % | |||
Net Loss per Ordinary Share-Basic and Diluted | (2.48 | ) | (3.23 | ) | (42.59 | ) | -23.1 | % | -94.2 | % | |||
Adjusted Net Loss per Ordinary Share-Basic and Diluted (non-GAAP) | (2.38 | ) | (3.11 | ) | (10.35 | ) | -23.3 | % | -77.0 | % |
New Product Announcements
- On December 28, 2019, the third NIO Day was held in Shenzhen, China. The Company announced the 100-kWh battery pack and 20-kW DC Power Home. Deliveries of 100-kWh battery pack are estimated to begin in 2020 Q4 and expected to significantly improve the driving range of all NIO vehicle models. Aided by the Company’s proprietary battery-swap technologies, NIO offers its users flexible battery upgrade programs, making “Battery as a Service” a unique value proposition.
- At this event, the Company unveiled its third production model, the EC6, a smart premium electric coupe SUV. The EC6 performance version is equipped with a 160-kW permanent magnet motor and a 240-kW induction motor and capable of accelerating from zero to 100 kph in just 4.7 seconds. With the 100-kWh battery pack, the EC6 performance version boasts an NEDC range of up to 615 km. NIO plans to announce the prices and specifications of EC6 in July and the delivery is expected to begin in September 2020.
- During the NIO Day, the Company released the all-new ES8, the flagship smart premium electric SUV. With the 100-kWh battery pack, the all-new ES8 has an NEDC range of up to 580 km, a major improvement in its range performance. The Company plans to commence deliveries of the new ES8 in April 2020.
CEO and CFO Comments
“NIO delivered a total of 4,799 ES8 and ES6 vehicles in the third quarter of 2019, representing a 35.1% increase from the second quarter. The electric vehicle sector experienced substantial softness in the second half of 2019 after the reduction of EV subsidies in China. Despite the challenges, NIO’s sales improved solidly since September,” said William Bin Li, founder, chairman and chief executive officer of NIO. “Our strong performance was attributable to the competitiveness of our products and services, the recognition and strong support from our user community, and our sales network expansion strategy as we continue to launch more efficient NIO Spaces. We expect over 8,000 vehicles to be delivered in the fourth quarter, a record of quarterly deliveries in our history. With that, the total aggregate deliveries in 2019 are estimated to reach over 20,300.
“On December 28, we hosted our third annual NIO Day, dedicated to and for, our user community. During the event, we unveiled a brand-new model, the EC6, a smart premium electric coupe SUV, showcasing our pursuit of both high performance and stylish design in our products. We also launched the all-new ES8, NIO’s flagship model, being well positioned to become the most competitive electric SUV in the mid to large size segment. Furthermore, we will make available a 100-kWh battery pack, which will significantly increase the NEDC driving range of the new ES8, ES6 and EC6 to 580, 610 and 615 kilometers respectively.
“We had delivered over 30,000 vehicles in 296 cities since June 2018, expanded our product offerings to 3 competitive SUV models, and successfully established the only premium EV brand from China. We are proud of our team for the speedy and solid execution. We will continue to drive forward by improving our products and services, enhancing our sales and service network, as well as building our user community,” concluded Mr. Li.
“Facing a continuous soft auto market, we strongly believe the smart premium EV sector will outperform the industry in its growth rate in the foreseeable future. NIO ranked the highest in new vehicle quality among all brands in JD Power’s 2019 New Energy Vehicle Experience Index Study. Additionally, ES6 achieved No.1 in electric SUV sales and top 10 ranking in mid-size premium SUV sales, including ICE and electric vehicle models, in China in October and November. We are pleased to see the momentum continues,” added Wei Feng, NIO’s chief financial officer. “During the quarter, we also implemented comprehensive cost control measures across the organization to improve operational efficiency. As a result, our third quarter SG&A and R&D expenses decreased by 18.1% and 21.3% respectively, compared with the second quarter, and we expect further efficiency gains in the fourth quarter.”
Financial Results for the Third Quarter of 2019
Revenues
- Vehicle sales in the third quarter of 2019 were RMB1,733.5 million (US$242.5 million) in the third quarter of 2019, representing an increase of 22.5% from the second quarter of 2019 and an increase of 21.5% from the same quarter of 2018. The increase in vehicle sales over the second quarter of 2019 was mainly contributed by the sales of ES6s.
- Other sales in the third quarter of 2019 were RMB103.4 million (US$14.5 million), representing an increase of 9.9% from the second quarter of 2019 and an increase of 142.1% from the same quarter of 2018. The increase in other sales over the second quarter of 2019 was mainly attributed by the increased sales of charging piles and accessories, which was in line with the increase in vehicle deliveries.
- Total revenues in the third quarter of 2019 were RMB1,836.8 million (US$257.0 million), representing an increase of 21.8% from the second quarter of 2019 and an increase of 25.0% from the same quarter of 2018.
Cost of Sales and Gross Margin
- Cost of sales in the third quarter of 2019 was RMB2,058.4 million (US$288.0 million), representing an increase of 2.3% from the second quarter of 2019 and an increase of 29.8% from the same quarter of 2018. The slight increase in cost of sales over the second quarter of 2019 was due to the increase of sales in the third quarter of 2019 and was offset by the decreased cost of sales compared to cost of sales in the second quarter, which included accrued recall costs in relation to the Company’s voluntary recall of 4,803 vehicles announced on June 27, 2019.
- Vehicle margin in the third quarter of 2019 was negative 6.8%, compared with negative 24.1% in the second quarter of 2019 and negative 4.3% in the same quarter of 2018. The improved vehicle margin was mainly due to the recall costs in the second quarter of 2019 as above mentioned, and the lack thereof in the third quarter of 2019.
- Gross margin in the third quarter of 2019 was negative 12.1%, compared with negative 33.4% in the second quarter of 2019 and negative 7.9% in the same quarter of 2018. The increase of gross margin over the second quarter of 2019 was mainly due to the improved vehicle margin in the third quarter.
Operating Expenses
- Research and development expenses in the third quarter of 2019 were RMB1,023.2 million (US$143.2 million), representing a decrease of 21.3% from the second quarter of 2019 and relatively unchanged compared with the same quarter of 2018. Excluding share-based compensation expenses, adjusted research and development expenses (non-GAAP) were RMB1,003.6 million (US$140.4 million), representing a decrease of 21.7% from the second quarter of 2019 and an increase of 5.9% from the same quarter of 2018. The decrease in research and development expenses over the second quarter of 2019 was primarily attributed to less testing expenses incurred in the third quarter after the initial launch of ES6 in June.
- Selling, general and administrative expenses in the third quarter of 2019 were RMB1,164.4 million (US$162.9 million), representing a decrease of 18.1% from the second quarter of 2019 and a decrease of 30.3% from the same quarter of 2018. Excluding share-based compensation expenses, adjusted selling, general and administrative expenses (non-GAAP) were RMB1,116.3 million (US$156.2 million), representing a decrease of 17.4% from the second quarter of 2019 and a decrease of 15.6% from the same quarter of 2018. The decrease in selling, general and administrative expenses over the second quarter of 2019 was primarily driven by the Company’s overall cost-saving measures in marketing and other supporting functions.
Loss from Operations
- Loss from operations in the third quarter of 2019 was RMB2,409.2 million (US$337.1 million) in the third quarter of 2019, representing a decrease of 25.3% from the second quarter of 2019 and a 14.3% decrease from the same quarter of 2018. Excluding share-based compensation expenses, adjusted loss from operations (non-GAAP) was RMB2,338.8 million (US$327.2 million) in the third quarter of 2019, representing a decrease of 25.4% from the second quarter of 2019 and a 1.6% decrease from the same quarter of 2018.
Share-based Compensation Expenses
- Share-based compensation expenses in the third quarter of 2019 were RMB70.4 million (US$9.9 million), representing a decrease of 23.6% from the second quarter of 2019 and a decrease of 83.7% from the same quarter of 2018. The decrease in share-based compensation expenses over the second quarter of 2019 was primarily due to the continuous decrease of employee numbers, as well as the decreased expenses part of the share-based compensation recognized under the accelerated method.
Net Loss and Earnings Per Share
- Net loss was RMB2,521.7 million (US$352.8 million) in the third quarter of 2019, representing a decrease of 23.3% from the second quarter of 2019 and a 10.3% decrease from the same quarter of 2018. Excluding share-based compensation expenses, adjusted net loss (non-GAAP) was RMB2,451.2 million (US$342.9 million) in the third quarter of 2019, representing a decrease of 23.2% from the second quarter of 2019 and a 3.1% increase from the same quarter of 2018.
- Net loss attributable to NIO’s ordinary shareholders in the third quarter of 2019 was RMB2,553.6 million (US$357.3 million) in the third quarter of 2019, representing a decrease of 22.9% from the second quarter of 2019 and a decrease of 73.8% from the same quarter of 2018. Excluding share-based compensation expenses and accretion on redeemable non-controlling interests to redemption value, adjusted net loss attributable to NIO’s ordinary shareholders (non-GAAP) was RMB2,451.3 million (US$342.9 million).
- Basic and diluted net loss per ADS in the third quarter of 2019 were both RMB2.48 (US$0.35). Excluding share-based compensation expenses and accretion on redeemable non-controlling interests to redemption value, adjusted basic and diluted net loss per ADS (non-GAAP) were both RMB2.38 (US$0.33).
Balance Sheets
- Balance of cash and cash equivalents, restricted cash and short-term investment was RMB1,960.7 million (US$274.3 million) as of September 30, 2019.
- The Company operates with continuous loss and negative equity. The Company’s cash balance is not adequate to provide the required working capital and liquidity for continuous operation in the next 12 months. The Company’s continuous operation, which has also constituted the basis of preparing the Company’s third quarter unaudited financial information, depends on the Company’s capability to obtain sufficient external equity or debt financing. The Company is currently working on several financing projects, the consummation of which is subject to certain uncertainties. The Company will announce any material developments or information subject to the requirements by applicable laws.
- On January 1, 2019, the Company adopted ASC 842 Leases and used the additional transition method to initially apply this new lease standard at the adoption date. Right-of-use assets and lease liabilities were recognized on the Company’s consolidated financial statements.
Business Outlook
For the fourth quarter of 2019, the Company expects:
- Deliveries of vehicles to be over 8,000 units, representing an increase of over 66.7% from the third quarter of 2019.
- Total revenues to be approximately RMB2,810 million (US$393.2 million), representing an increase by approximately 53.0% from the third quarter of 2019.
This business outlook reflects the Company’s current and preliminary view on the business situation and market condition, which is subject to change.
Conference Call
Management will hold a conference call at 7:00 a.m. Eastern Time (8:00 p.m. Beijing Time) on December 30, 2019 to discuss financial results and answer questions from investors and analysts. Listeners may access the call by dialing in:
United States: | +1-845-675-0437 |
International: | +65-6713-5090 |
Hong Kong: | +852-3018-6771 |
Conference ID: | 6378226 |
Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at http://ir.nio.com.
A replay of the conference call will be accessible by phone approximately two hours after the conclusion of the live call at the following numbers, until January 7, 2020 07:59 a.m. Eastern Time:
United States: | +1-646-254-3697 |
International: | +61-2-8199-0299 |
Hong Kong: | +852-3051-2780 |
Conference ID: | 6378226 |
About NIO Inc.
NIO Inc. is a pioneer in China’s premium electric vehicle market. Founded in November 2014, NIO’s mission is to shape a joyful lifestyle by offering premium smart electric vehicles and being the best user enterprise. NIO designs, jointly manufactures, and sells smart and connected premium electric vehicles, driving innovations in next generation technologies in connectivity, autonomous driving and artificial intelligence. Redefining the user experience, NIO provides users with comprehensive, convenient and innovative charging solutions and other user-centric services. NIO began deliveries of the ES8, a 7-seater high-performance premium electric SUV in China in June 2018, and its variant, the six-seater ES8, in March 2019. NIO officially launched the ES6, a 5-seater high-performance premium electric SUV, in December 2018 and began deliveries in June 2019. NIO officially launched the EC6, a 5-seater smart premium electric Coupe SUV, in December 2019 and plans to commence deliveries in 2020.
Safe Harbor Statement
This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to” and similar statements. Among other things, the Business Outlook and quotations from management in this announcement, as well as NIO’s strategic and operational plans, contain forward-looking statements. NIO may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about NIO’s beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: NIO’s strategies; NIO’s future business development, financial condition and results of operations; NIO’s ability to obtain sufficient external equity or debt financing; NIO’s ability to develop and manufacture a car of sufficient quality and appeal to customers on schedule and on a large scale; its ability to grow manufacturing in collaboration with partners; its ability to provide convenient charging solutions to our customers; its ability to satisfy the mandated safety standards relating to motor vehicles; its ability to secure supply of raw materials or other components used in our vehicles; its ability to secure sufficient reservations and sales of the ES8 and ES6; its ability to control costs associated with our operations; its ability to build our NIO brand; general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in NIO’s filings with the SEC. All information provided in this press release is as of the date of this press release, and NIO does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
Non-GAAP Disclosure
The Company uses non-GAAP measures, such as adjusted cost of sales (non-GAAP), adjusted research and development expenses (non-GAAP), adjusted selling, general and administrative expenses (non-GAAP), adjusted loss from operations (non-GAAP), adjusted net loss (non-GAAP), adjusted net loss attributable to ordinary shareholders (non-GAAP), adjusted basic and diluted net loss per share (non-GAAP) and adjusted basic and diluted net loss per ADS (non-GAAP), in evaluating its operating results and for financial and operational decision-making purposes. By excluding the impact of share-based compensation expenses, accretion on convertible redeemable preferred shares to redemption value and accretion on redeemable non-controlling interests to redemption value, the Company believes that the non-GAAP financial measures help identify underlying trends in its business and enhance the overall understanding of the Company’s past performance and future prospects. The Company also believes that the non-GAAP financial measures allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making.
The non-GAAP financial measures are not presented in accordance with U.S. GAAP and may be different from non-GAAP methods of accounting and reporting used by other companies. The non-GAAP financial measures have limitations as analytical tools and when assessing the Company’s operating performance, investors should not consider them in isolation, or as a substitute for net loss or other consolidated statements of comprehensive loss data prepared in accordance with U.S. GAAP. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.
The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company’s performance.
For more information on the non-GAAP financial measures, please see the table captioned “Unaudited Reconciliation of GAAP and Non-GAAP Results” set forth at the end of this press release.
Exchange Rate
This announcement contains translations of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from Renminbi to U.S. dollars were made at the rate of RMB7.1477 to US$1.00, the noon buying rate in effect on September 30, 2019 in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the Renminbi or U.S. dollars amounts referred could be converted into U.S. dollars or Renminbi, as the case may be, at any particular rate or at all.
Statement Regarding Preliminary Unaudited Financial Information
The unaudited financial information set out in this earnings release is preliminary and subject to potential adjustments. Adjustments to the consolidated financial statements may be identified when audit work has been performed for the Company’s year-end audit, which could result in significant differences from this preliminary unaudited financial information.
For more information, please visit: http://ir.nio.com.
Contacts:
NIO Inc.
Investor Relations
Tel: +86-21-6908-3681
Email: [email protected]
The Piacente Group, Inc.
Brandi Piacente
Tel: +1-212-481-2050
Email: [email protected]
Ross Warner
Tel: +86-10-6508-0677
Email: [email protected]
Source: NIO
NIO INC. | |
Consolidated Statements of Comprehensive Loss | |
Amounts expressed in Renminbi (“RMB”), unless otherwise stated | |
(in thousands, except for share and per share data) |
December 31, 2018 | September 30, 2019 | September 30, 2019 | ||||
(audited) | (unaudited) | (unaudited) | ||||
(US$) | ||||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | 3,133,847 | 980,991 | 137,246 | |||
Restricted cash | 57,012 | 177,744 | 24,867 | |||
Short-term investment | 5,154,703 | 802,000 | 112,204 | |||
Trade receivable | 756,508 | 1,269,840 | 177,657 | |||
Amounts due from related parties | 88,066 | 52,813 | 7,389 | |||
Inventory | 1,465,239 | 1,815,329 | 253,974 | |||
Prepayments and other current assets | 1,514,257 | 1,911,963 | 267,493 | |||
Total current assets | 12,169,632 | 7,010,680 | 980,830 | |||
Non-current assets: | ||||||
Long-term restricted cash | 33,528 | 38,870 | 5,438 | |||
Property, plant and equipment, net | 4,853,157 | 5,469,538 | 765,217 | |||
Intangible assets, net | 3,470 | 2,681 | 375 | |||
Land use rights, net | 213,662 | 210,027 | 29,384 | |||
Long-term investments | 148,303 | 149,007 | 20,847 | |||
Amounts due from related parties | 7,970 | 7,970 | 1,115 | |||
Right-of-use assets – operating lease | — | 2,047,594 | 286,469 | |||
Other non-current assets | 1,412,830 | 1,908,134 | 266,958 | |||
Total non-current assets | 6,672,920 | 9,833,821 | 1,375,803 | |||
Total assets | 18,842,552 | 16,844,501 | 2,356,633 | |||
LIABILITIES | ||||||
Current liabilities: | ||||||
Short-term borrowings | 1,870,000 | 1,488,045 | 208,185 | |||
Trade payable | 2,869,953 | 3,188,825 | 446,133 | |||
Amounts due to related parties | 219,583 | 268,722 | 37,596 | |||
Taxes payable | 51,317 | 35,836 | 5,014 | |||
Current portion of operating lease liabilities | — | 418,524 | 58,554 | |||
Current portion of long-term borrowings | 198,852 | 315,848 | 44,189 | |||
Accruals and other liabilities | 3,383,681 | 3,248,884 | 454,536 | |||
Total current liabilities | 8,593,386 | 8,964,684 | 1,254,207 | |||
Non-current liabilities: | ||||||
Long-term borrowings | 1,168,012 | 7,044,832 | 985,608 | |||
Non-current operating lease liabilities | — | 1,792,108 | 250,725 | |||
Other non-current liabilities | 930,812 | 1,150,741 | 160,995 | |||
Total non-current liabilities | 2,098,824 | 9,987,681 | 1,397,328 | |||
Total liabilities | 10,692,210 | 18,952,365 | 2,651,535 | |||
NIO INC. | |
Consolidated Balance Sheets | |
Amounts expressed in Renminbi (“RMB”), unless otherwise stated | |
(in thousands, except for share and per share data) |
December 31, 2018 | September 30, 2019 | September 30, 2019 | |||||||
(audited) | (unaudited) | (unaudited) | |||||||
(US$) | |||||||||
MEZZANINE EQUITY | |||||||||
Redeemable non-controlling interests | 1,329,197 | 1,423,880 | 199,208 | ||||||
Total mezzanine equity | 1,329,197 | 1,423,880 | 199,208 | ||||||
SHAREHOLDERS’ EQUITY | |||||||||
Ordinary shares | 1,809 | 1,824 | 255 | ||||||
Treasury shares | (9,186 | ) | — | — | |||||
Additional paid in capital | 41,918,936 | 40,295,567 | 5,637,557 | ||||||
Accumulated other comprehensive loss | (34,708 | ) | (294,837 | ) | (41,249 | ) | |||
Accumulated deficit | (35,039,810 | ) | (43,559,110 | ) | (6,094,144 | ) | |||
Total NIO Inc. shareholders’ equity | 6,837,041 | (3,556,556 | ) | (497,581 | ) | ||||
Non-controlling interests | (15,896 | ) | 24,812 | 3,471 | |||||
Total shareholders’ equity | 6,821,145 | (3,531,744 | ) | (494,110 | ) | ||||
Total liabilities, mezzanine equity and shareholders’ equity | 18,842,552 | 16,844,501 | 2,356,633 | ||||||
NIO INC. | |
Consolidated Statements of Comprehensive Loss | |
Amounts expressed in Renminbi (“RMB”), unless otherwise stated | |
(in thousands, except for share and per share data) |
Three Months Ended | ||||||||||||
September 30, 2018 | June 30, 2019 | September 30, 2019 | September 30, 2019 | |||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||
(US$) | ||||||||||||
Revenues: | ||||||||||||
Vehicle sales | 1,426,879 | 1,414,533 | 1,733,469 | 242,521 | ||||||||
Other sales | 42,694 | 94,037 | 103,375 | 14,463 | ||||||||
Total revenues | 1,469,573 | 1,508,570 | 1,836,844 | 256,984 | ||||||||
Cost of sales: | ||||||||||||
Vehicle sales | (1,488,538 | ) | (1,755,017 | ) | (1,850,943 | ) | (258,956 | ) | ||||
Other sales | (97,353 | ) | (257,737 | ) | (207,485 | ) | (29,028 | ) | ||||
Total cost of sales | (1,585,891 | ) | (2,012,754 | ) | (2,058,428 | ) | (287,984 | ) | ||||
Gross loss | (116,318 | ) | (504,184 | ) | (221,584 | ) | (31,000 | ) | ||||
Operating expenses: | ||||||||||||
Research and development | (1,023,435 | ) | (1,300,531 | ) | (1,023,193 | ) | (143,150 | ) | ||||
Selling, general and administrative | (1,670,100 | ) | (1,421,392 | ) | (1,164,443 | ) | (162,912 | ) | ||||
Total operating expenses | (2,693,535 | ) | (2,721,923 | ) | (2,187,636 | ) | (306,062 | ) | ||||
Loss from operations | (2,809,853 | ) | (3,226,107 | ) | (2,409,220 | ) | (337,062 | ) | ||||
Interest income | 21,820 | 46,519 | 28,669 | 4,011 | ||||||||
Interest expenses | (27,582 | ) | (96,884 | ) | (103,211 | ) | (14,440 | ) | ||||
Share of losses of equity investees | (4,035 | ) | (28,214 | ) | (38,419 | ) | (5,375 | ) | ||||
Other income, net | 10,588 | 22,600 | 1,067 | 149 | ||||||||
Loss before income tax expense | (2,809,062 | ) | (3,282,086 | ) | (2,521,114 | ) | (352,717 | ) | ||||
Income tax expense | (1,374 | ) | (3,679 | ) | (536 | ) | (75 | ) | ||||
Net loss | (2,810,436 | ) | (3,285,765 | ) | (2,521,650 | ) | (352,792 | ) | ||||
Accretion on convertible redeemable preferred shares to redemption value | (6,923,008 | ) | — | — | — | |||||||
Accretion on redeemable non-controlling interests to redemption value | (31,399 | ) | (31,561 | ) | (31,907 | ) | (4,464 | ) | ||||
Net (profit)/loss attributable to non-controlling interests | 8,000 | 3,670 | (58 | ) | (8 | ) | ||||||
Net loss attributable to ordinary shareholders of NIO Inc. | (9,756,843 | ) | (3,313,656 | ) | (2,553,615 | ) | (357,264 | ) | ||||
Net loss | (2,810,436 | ) | (3,285,765 | ) | (2,521,650 | ) | (352,792 | ) | ||||
Other comprehensive (loss)/income | ||||||||||||
Foreign currency translation adjustment, net of nil tax | 95,189 | (70,139 | ) | (129,405 | ) | (18,104 | ) | |||||
Total other comprehensive (loss)/income | 95,189 | (70,139 | ) | (129,405 | ) | (18,104 | ) | |||||
Total comprehensive loss | (2,715,247 | ) | (3,355,904 | ) | (2,651,055 | ) | (370,896 | ) | ||||
Accretion on convertible redeemable preferred shares to redemption value |
(6,923,008 | ) | — | — | — | |||||||
Accretion on redeemable non-controlling interests to redemption value |
(31,399 | ) | (31,561 | ) | (31,907 | ) | (4,464 | ) | ||||
Net (profit)/loss attributable to non- controlling interests |
8,000 | 3,670 | (58 | ) | (8 | ) | ||||||
Comprehensive loss attributable to ordinary shareholders of NIO Inc. |
(9,661,654 | ) | (3,383,795 | ) | (2,683,020 | ) | (375,368 | ) | ||||
Weighted average number of ordinary shares used in computing net loss per share |
||||||||||||
Basic and diluted | 229,083,029 | 1,026,505,444 | 1,028,698,303 | 1,028,698,303 | ||||||||
Net loss per share attributable to ordinary shareholders | ||||||||||||
Basic and diluted | (42.59 | ) | (3.23 | ) | (2.48 | ) | (0.35 | ) | ||||
Weighted average number of ADS used in computing net loss per share |
||||||||||||
Basic and diluted | 229,083,029 | 1,026,505,444 | 1,028,698,303 | 1,028,698,303 | ||||||||
Net loss per ADS attributable to ordinary shareholders | ||||||||||||
Basic and diluted | (42.59 | ) | (3.23 | ) | (2.48 | ) | (0.35 | ) | ||||
NIO INC. | |
Unaudited Reconciliation of GAAP and Non-GAAP Results | |
Amounts expressed in Renminbi (“RMB”), unless otherwise stated | |
(in thousands, except for share and per share data) |
Three Months Ended September 30, 2019 | |||||||||||||||||||||||||
GAAP Result |
% of Total |
Non-GAAP Adjustment |
% of Total |
Non-GAAP Result |
% of Total |
||||||||||||||||||||
Revenues | Revenues | Revenues | |||||||||||||||||||||||
Share-based compensation included in cost of sales and operating expenses is as follows: | |||||||||||||||||||||||||
Cost of sales | (2,058,428 | ) | -112.1 | % | 2,749 | 0.1 | % | (2,055,679 | ) | -112.0 | % | ||||||||||||||
Research and development expenses | (1,023,193 | ) | -55.7 | % | 19,578 | 1.1 | % | (1,003,615 | ) | -54.6 | % | ||||||||||||||
Selling, general and administrative expenses | (1,164,443 | ) | -63.4 | % | 48,111 | 2.6 | % | (1,116,332 | ) | -60.8 | % | ||||||||||||||
Total | (4,246,064 | ) | -231.2 | % | 70,438 | 3.8 | % | (4,175,626 | ) | -227.4 | % | ||||||||||||||
Loss from operations | (2,409,220 | ) | -131.2 | % | 70,438 | 3.8 | % | (2,338,782 | ) | -127.4 | % | ||||||||||||||
Net loss | (2,521,650 | ) | -137.3 | % | 70,438 | 3.8 | % | (2,451,212 | ) | -133.5 | % | ||||||||||||||
Accretion on redeemable non-controlling interests to redemption value | (31,907 | ) | -1.7 | % | 31,907 | 1.7 | % | — | 0.0 | % | |||||||||||||||
Net loss attributable to ordinary shareholders of NIO Inc. | (2,553,615 | ) | -139.0 | % | 102,345 | 5.6 | % | (2,451,270 | ) | -133.4 | % | ||||||||||||||
Net loss per share attributable to ordinary shareholders, basic and diluted (RMB) | (2.48 | ) | 0.10 | (2.38 | ) | ||||||||||||||||||||
Net loss per ADS attributable to ordinary shareholders, basic and diluted (RMB) | (2.48 | ) | 0.10 | (2.38 | ) | ||||||||||||||||||||
Net loss per ADS attributable to ordinary shareholders, basic and diluted (USD) | (0.35 | ) | 0.02 | (0.33 | ) | ||||||||||||||||||||
Three Months Ended June 30, 2019 | |||||||||||
GAAP Result |
% of Total |
Non-GAAP Adjustment |
% of Total | Non-GAAP Result |
% of Total |
||||||
Revenues | Revenues | Revenues | |||||||||
Share-based compensation included in cost of sales and operating expenses is as follows: | |||||||||||
Cost of sales | (2,012,754 | ) | -133.4 | % | 3,362 | 0.2 | % | (2,009,392 | ) | -133.2 | % |
Research and development expenses | (1,300,531 | ) | -86.2 | % | 18,784 | 1.2 | % | (1,281,747 | ) | -85.0 | % |
Selling, general and administrative expenses | (1,421,392 | ) | -94.2 | % | 70,064 | 4.6 | % | (1,351,328 | ) | -89.6 | % |
Total | (4,734,677 | ) | -313.8 | % | 92,210 | 6.0 | % | (4,642,467 | ) | -307.8 | % |
Loss from operations | (3,226,107 | ) | -213.8 | % | 92,210 | 6.0 | % | (3,133,897 | ) | -207.8 | % |
Net loss | (3,285,765 | ) | -217.8 | % | 92,210 | 6.0 | % | (3,193,555 | ) | -211.8 | % |
Accretion on redeemable non-controlling interests to redemption value | (31,561 | ) | -2.1 | % | 31,561 | 2.1 | % | — | 0.0 | % | |
Net loss attributable to ordinary shareholders of NIO Inc | (3,313,656 | ) | -219.7 | % | 123,771 | 8.2 | % | (3,189,885 | ) | -211.5 | % |
Net loss per share attributable to ordinary shareholders, basic and diluted (RMB) | (3.23 | ) | 0.12 | (3.11 | ) | ||||||
Net loss per ADS attributable to ordinary shareholders, basic and diluted (RMB) | (3.23 | ) | 0.12 | (3.11 | ) | ||||||
Three Months Ended September 30, 2018 | ||||||||||||||||
GAAP Result |
% of Total |
Non-GAAP Adjustment |
% of Total |
Non-GAAP Result |
% of Total |
|||||||||||
Revenues | Revenues | Revenues | ||||||||||||||
Share-based compensation included in cost of sales and operating expenses is as follows: |
||||||||||||||||
Cost of sales | (1,585,891 | ) | -107.9 | % | 8,020 | 0.5 | % | (1,577,871 | ) | -107.4 | % | |||||
Research and development expenses | (1,023,435 | ) | -69.6 | % | 76,148 | 5.2 | % | (947,287 | ) | -64.5 | % | |||||
Selling, general and administrative expenses | (1,670,100 | ) | -113.6 | % | 348,025 | 23.7 | % | (1,322,075 | ) | -90.0 | % | |||||
Total | (4,279,426 | ) | -291.2 | % | 432,193 | 29.4 | % | (3,847,233 | ) | -261.8 | % | |||||
Loss from operations | (2,809,853 | ) | -191.2 | % | 432,193 | 29.4 | % | (2,377,660 | ) | -161.8 | % | |||||
Net loss | (2,810,436 | ) | -191.2 | % | 432,193 | 29.4 | % | (2,378,243 | ) | -161.8 | % | |||||
Accretion on convertible redeemable preferred shares to redemption value |
(6,923,008 | ) | -471.1 | % | 6,923,008 | 471.1 | % | — | 0.0 | % | ||||||
Accretion on redeemable non-controlling interests to redemption value |
(31,399 | ) | -2.1 | % | 31,399 | 2.1 | % | — | 0.0 | % | ||||||
Net loss attributable to ordinary shareholders of NIO Inc | (9,756,843 | ) | -663.9 | % | 7,386,600 | 502.6 | % | (2,370,243 | ) | -161.3 | % | |||||
Net loss per share attributable to ordinary shareholders, basic and diluted (RMB) | (42.59 | ) | 32.24 | (10.35 | ) | |||||||||||
Net loss per ADS attributable to ordinary shareholders, basic and diluted (RMB) | (42.59 | ) | 32.24 | (10.35 | ) |
1 Vehicle margin is the margin of vehicle sales, which is calculated based on revenues and cost of sales derived from vehicle sales only.
2 Each ADS represents one ordinary share.
3 Except for gross margin and vehicle margin, where absolute changes instead of percentage changes are calculated.
Artificial Intelligence
5G Enterprise Market Projected to Reach $115.81 billion by 2030 – Exclusive Report by 360iResearch
PUNE, India, May 2, 2024 /PRNewswire/ — The report titled “5G Enterprise Market by Equipment (Distributed Antenna System, Radio Node, Service Node), Organization Size (Large Enterprises, SMEs), End User – Global Forecast 2024-2030” is now available on 360iResearch.com’s offering, presents an analysis indicating that the market projected to grow from a size of $17.30 billion in 2023 to reach $115.81 billion by 2030, at a CAGR of 31.20% over the forecast period.
“The Pivotal Role of 5G Technology in Enterprise Evolution”
The advent of 5G technology marks a transformative era for businesses worldwide, offering exceptional speed, reduced latency, and enhanced connectivity that promise to elevate operational efficiency and digital innovation across various sectors. From enabling precise real-time monitoring and predictive maintenance in manufacturing to advancing telemedicine and seamless data collaborations in healthcare, 5G stands as a cornerstone for future advancements. Its pivotal role is revolutionizing transportation by supporting autonomous vehicles and smart infrastructure, significantly elevating safety and efficiency. The surge in 5G enterprise adoption is fueled by the growing need for robust and swift network connections to accommodate an increasing array of Internet of Things (IoT) devices and applications. Challenges include the substantial upfront costs associated with 5G infrastructure and concerns over data security. The potential for 5G to spur innovation is immense, mainly through the development of 5G-as-a-Service (5GaaS) and its synergy with cutting-edge technologies such as edge computing and artificial intelligence. Regionally, North America is major in adoption, supported by significant telecom investments, while the European Union’s concerted efforts bolster 5G integration across industries. The Middle East’s ambitions to become a significant region globally in 5G through smart city and industrial automation investments distinguish it. In contrast, the APAC region’s rapid growth is supported by early adoption and extensive government support, particularly in South Korea, China, and Japan. Thus, 5G is set to redefine enterprise operations, driving innovation and enabling smart solutions globally, heralding a new chapter in digital transformation for industries worldwide.
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“5G’s Role in Advancing Industry 4.0 and Digital Innovations”
In today’s fast-evolving digital age, the seamless integration of cutting-edge technologies such as artificial intelligence (AI), the Internet of Things (IoT), and blockchain into everyday business operations is becoming increasingly crucial. This integration is driving a significant surge in the need for uninterrupted, high-speed network coverage across various sectors. As technologies become more affordable and their performance enhanced, their adoption in both private and public sectors is witnessing a remarkable increase, paving the way for innovative payment solutions and digital currencies. This transformation reshapes diverse commercial landscapes, including entertainment, journalism, advertising, and retail. Consequently, the demand for 5G connectivity is escalating, recognized for its capability to deliver speeds of 15 to 20 Gbps, connect a vast array of devices, and facilitate the creation of virtual networks tailored to specific needs. Moreover, as Industry 4.0 propels manufacturing into the digital era with its emphasis on automation and digital technologies, the role of 5G in supporting these advancements becomes indispensable. By enabling faster connectivity for AI, data analytics, IoT, blockchain, and machine learning applications, 5G is at the forefront of improving operational efficiency and flexibility in the manufacturing sector, setting the stage for the exponential growth of the 5G enterprise market.
“The Integral Role of Radio Nodes, DAS, and Service Nodes in Enhancing 5G Networks”
In the rapidly evolving world of 5G networks, the harmonious functioning of radio nodes, distributed antenna systems (DAS), and service nodes plays a pivotal role in ensuring uninterrupted, high-speed connectivity across diverse environments. Radio nodes, vital for facilitating direct communication between devices, including smartphones and tablets, ensure the seamless execution of critical radio functions such as modulation and demodulation. They shine especially in areas where a robust, reliable connection is paramount, catering to the needs of densely populated zones. DAS is used in complexes such as stadiums and large buildings, working behind the scenes to boost wireless coverage through a network of strategically placed antenna nodes. This ensures that every corner is connected, enhancing user experience in challenging architectural layouts. Meanwhile, service nodes are the backbone of network management, orchestrating essential functions, including user authentication and mobility management, enabling smooth delivery of services throughout the 5G ecosystem. These components overcome physical and technological hurdles and lay down the infrastructure critical for delivering the next generation of wireless connectivity.
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“Telefonaktiebolaget LM Ericsson at the Forefront of 5G Enterprise Market with a Strong 16.19% Market Share”
The key players in the 5G Enterprise Market include Huawei Technologies Co., Ltd., Deutsche Telekom AG, Nokia Corporation, Telefonaktiebolaget LM Ericsson, AT&T Inc., and others. These prominent players focus on strategies such as expansions, acquisitions, joint ventures, and developing new products to strengthen their market positions.
“Introducing ThinkMi: Revolutionizing Market Intelligence with AI-Powered Insights for the 5G Enterprise Market”
We proudly unveil ThinkMi, a cutting-edge AI product designed to transform how businesses interact with the 5G Enterprise Market. ThinkMi stands out as your premier market intelligence partner, delivering unparalleled insights with the power of artificial intelligence. Whether deciphering market trends or offering actionable intelligence, ThinkMi is engineered to provide precise, relevant answers to your most critical business questions. This revolutionary tool is more than just an information source; it’s a strategic asset that empowers your decision-making with up-to-the-minute data, ensuring you stay ahead in the fiercely competitive 5G Enterprise Market. Embrace the future of market analysis with ThinkMi, where informed decisions lead to remarkable growth.
Ask Question to ThinkMi @ https://app.360iresearch.com/library/intelligence/5g-enterprise
“Dive into the 5G Enterprise Market Landscape: Explore 181 Pages of Insights, 298 Tables, and 22 Figures”
PrefaceResearch MethodologyExecutive SummaryMarket OverviewMarket Insights5G Enterprise Market, by Equipment5G Enterprise Market, by Organization Size5G Enterprise Market, by End UserAmericas 5G Enterprise MarketAsia-Pacific 5G Enterprise MarketEurope, Middle East & Africa 5G Enterprise MarketCompetitive LandscapeCompetitive PortfolioInquire Before Buying @ https://www.360iresearch.com/library/intelligence/5g-enterprise
Related Reports:
5G Non-Terrestrial Network Market – Global Forecast 2024-20305G in Defense Market – Global Forecast 2024-20305G Satellite Communication Market – Global Forecast 2024-2030About 360iResearch
Founded in 2017, 360iResearch is a market research and business consulting company headquartered in India, with clients and focus markets spanning the globe.
We are a dynamic, nimble company that believes in carving ambitious, purposeful goals and achieving them with the backing of our greatest asset — our people.
Quick on our feet, we have our ear to the ground when it comes to market intelligence and volatility. Our market intelligence is diligent, real-time and tailored to your needs, and arms you with all the insight that empowers strategic decision-making.
Our clientele encompasses about 80% of the Fortune Global 500, and leading consulting and research companies and academic institutions that rely on our expertise in compiling data in niche markets. Our meta-insights are intelligent, impactful and infinite, and translate into actionable data that support your quest for enhanced profitability, tapping into niche markets, and exploring new revenue opportunities.
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Artificial Intelligence
SimSpace Welcomes Matt Knutsen as New Chief Revenue Officer to Spearhead Expansion Plan
SimSpace strengthens their leadership team, appointing Knutsen to drive revenue growth for the company as it expands further into the public sector
BOSTON, May 2, 2024 /PRNewswire/ — SimSpace, the US-based industry leader in AI-Powered cyber ranges, announced today the appointment of Matt Knutsen as its new Chief Revenue Officer (CRO). Matt will champion SimSpace’s global sales and revenue growth strategy. He will drive expansion initiatives and foster strategic partnerships to stress test businesses’ and state agencies’ people, processes and technologies against the most advanced adversaries.
With more than 20 years of experience in the field, Matt most recently held the position of CRO at cyber training provider Immersive Labs, where he increased revenue growth by over 4000% and attracted over $180M in investment. He also launched the company into new markets, expanding the team across Australia, Europe, the Middle East, New Zealand and the US. The combination of Matt’s wealth of experience and his in-depth industry knowledge make him well-equipped to lead SimSpace’s next phase of growth.
As nation-state attacks rise in frequency, and AI drives a new wave of severe cyberattacks, companies also have to navigate uncertain economic conditions. SimSpace empowers organizations to cut unnecessary spending through stack optimization, allowing CISOs to maximize their ROI and effectiveness of their technology stack. Knutsen’s influence in the field will propel the SimSpace Platform to new heights, advancing access for companies and governments that need to optimize their cybersecurity defenses and safeguard their critical infrastructure from an increasingly volatile threat landscape.
Matt Knutsen is the most recent addition to SimSpace’s Executive Leadership Team, following Clint Sand’s appointment as Chief Product Officer in February 2024. His appointment underscores SimSpace’s continued growth trajectory, headed by the $45M they secured in funding from L2 Point Management, bringing the total capital raised over the past year to $70M. The company has also bolstered their presence in the public sector, marked by their recent partnership with Carahsoft and their multi-year contract with Florida to enhance the state’s cybersecurity preparedness. SimSpace’s high fidelity cyber ranges and simulations will enable state agencies and programs like Cyber Florida to rehearse and respond to cyberattacks.
Commenting on Matt’s arrival, SimSpace CEO William Hutchison said, “Matt is a seasoned executive, who has accumulated years of knowledge on cybersecurity best practices and established himself as a leading authority in cyber range exercises. His industry influence, strategic vision and conviction in the importance of cybersecurity preparedness will shape the future success of the company at this crucial time of expansion. With Matt leading our revenue organization, we have full confidence in our capacity to deepen our valued partnerships and build strong, new connections which will further elevate SimSpace’s position as a trusted cybersecurity partner.”
Matt Knutsen, Chief Revenue Officer commented, “I’m looking forward to bringing a proactive approach to cybersecurity risk management to even more private and public sector organizations. I’ve already been impressed by SimSpace’s high-fidelity cyber range simulations, both on and off premise. It’s a great time to be joining the company and I’m excited to build upon SimSpace’s recent rapid growth with even more partnerships.”
About SimSpace
SimSpace is the global leader in AI-Powered cyber ranges, founded by experts from U.S. Cyber Command and MIT’s Lincoln Laboratory to respond to a new era of unprecedented cyber threats. Having raised nearly $70 million in funding over the past year, the company’s Platform enables the most sophisticated enterprises, governments, and critical national infrastructure organizations to find intelligence-driven answers to the most vexing security, governance, training, and cyber readiness questions. SimSpace provides high-fidelity cybersecurity simulations, training, and safe live-fire exercises to Fortune 2000 financial, retail, insurance, and other commercial markets. SimSpace’s Platform results in an average reduction in cyber operational costs of 30% and a 40% reduction in breaches.
For more information, please visit: www.SimSpace.com.
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Artificial Intelligence
Enterprise AI Market to Be Worth $171.2 Billion by 2031–Exclusive Report by Meticulous Research®
REDDING, Calif., May 2, 2024 /PRNewswire/ — According to a new market research report titled, ‘Enterprise AI Market by Offering (Solutions, Services), Deployment Mode, Organization Size, Technology (ML, NLP), End-use Industry (IT & Telecom, Healthcare, Retail & E-commerce, Media & Advertisement) and Geography—Global Forecast to 2031,’ the global enterprise AI market is projected to reach $171.2 billion by 2031, at a CAGR of 32.9% from 2024 to 2031.
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Enterprise artificial intelligence (AI) is the integration of advanced AI-enabled technologies and techniques within large organizations to enhance business functions. Enterprise AI encompasses routine tasks of an organization such as data collection and analysis, supply chain management, finance, marketing, customer service, human resources and cybersecurity, and risk management. Enterprise AI is an integration of AI-enabled technologies such as machine learning, natural language processing, image processing, and speech recognition. Enterprise AI is used in various industries such as media & advertising, healthcare, retail & e-commerce, BFSI, government, automotive, and IT & telecom.
The growth of the enterprise AI market is driven by enterprises’ increasing need to enhance customer satisfaction and the growing implementation of enterprise AI solutions in the IT & telecom sectors. However, the high costs of enterprise AI solutions restrain the growth of this market. Furthermore, the increasing need for conversational AI solutions for optimized sales & marketing management and the growing need to automate business processes are expected to generate growth opportunities for the players operating in this market. However, data privacy & security concerns are a major challenge impacting market growth. Additionally, the growing adoption of AI chatbots for customer interaction and the increasing integration of Machine Learning (ML) technology into enterprise AI solutions are prominent trends in this market.
The global enterprise AI market is segmented by offering (solutions and services [professional services and managed services]), deployment mode (cloud-based deployment and on-premise deployment), organization size (large enterprises and small & medium-sized enterprises), technology (machine learning, image processing, natural language processing, and speech recognition), end-use industry (media & advertising, healthcare, retail & e-commerce, BFSI, government, automotive, IT & telecom, and other end-use industries), and geography. The study also evaluates industry competitors and analyses the market at the country and regional levels.
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Based on offering, in 2024, the solutions segment is expected to account for the larger share of 63% of the enterprise AI market. The segment’s large market share is attributed to the growing adoption of enterprise AI solutions to solve specific business challenges or streamline business processes and the growing implementation of these solutions to automate tasks, analyze data, and provide insights.
However, the services segment is expected to register a higher CAGR during the forecast period. The growth of this segment is driven by the growing need for AI consulting, data analysis, and enterprise-grade AI solution development, maintenance, and support and the rising adoption of services to automate tasks and help improve business operations efficiently.
Based on deployment mode, in 2024, the on-premise deployment segment is expected to account for the largest share of the enterprise AI market, with a revenue contribution of around USD 13 billion. The segment’s large market share is attributed to the increasing on-premise deployment of enterprise AI solutions by large enterprises and the growing demand for service flexibility, enhanced customer experience, and efficiency in managing risks and compliance.
However, the cloud-based deployment segment is expected to register a higher CAGR during the forecast period. The growth of this segment is driven by benefits associated with cloud-based deployment, including easy maintenance of customer data, cost-effectiveness, and scalability, and the increasing demand for enterprise AI solutions that support multi-cloud deployments.
Based on organization size, in 2024, the large enterprises segment is expected to account for the larger share of the enterprise AI market. The segment’s large market share is attributed to the growing emphasis on developing strategic IT initiatives among large enterprises, the increasing need to manage large volumes of customer-level data, and the early adoption of advanced technologies across various sectors such as retail, manufacturing, healthcare, and automotive.
However, the small & medium-sized enterprises segment is expected to register a higher CAGR during the forecast period. The growth of this segment is driven by the increasing need for chatbots and digital assistants among small & medium-sized enterprises and the increasing need to improve performance, quality management, and customer satisfaction in call centers.
Based on technology, in 2024, the machine learning segment is expected to account for the largest share of the enterprise AI market. The segment’s large market share is attributed to the growing adoption of enterprise AI solutions with machine learning capabilities to analyze historical data and identify patterns and the increasing use of these solutions in e-commerce, streaming platforms, and content websites.
However, the natural language processing segment is expected to register the highest CAGR of 37.4% during the forecast period. The growth of this segment is driven by the growing need to understand, interpret, and generate human language data and the rising adoption of NLP to analyze user preferences, behaviors, and interactions to deliver personalized content.
Based on end-use industry, in 2024, the IT & telecom segment is expected to account for the largest share of 26% of the enterprise AI market. The segment’s large market share is attributed to the increasing demand for personalized customer experiences enabled by AI technologies, the rising adoption of AI for analyzing data from network sensors to optimize operations, and the growing utilization of AI to enhance network performance and deliver customized services. Also, this segment is expected to register the highest CAGR during the forecast period.
Based on geography, in 2024, North America is expected to dominate the global enterprise AI market. North America enterprise AI market is estimated to be worth USD 9 billion in 2024. North America’s significant market share can be attributed to the growing adoption of enterprise AI solutions in the retail, healthcare, and finance sectors, the rising implementation of AI to enhance customer engagement, inventory management, and personalized shopping experience, and the increasing use of chatbots on websites, social media platforms, and messaging apps to respond customer inquiries.
However, Asia-Pacific is expected to register the highest CAGR of 34.3% during the forecast period. The growth of this regional market is driven by the growing emphasis by companies to launch chatbots and virtual assistants in the Asia-Pacific region, growing demand for chatbots and voice assistant solutions, and increasing demand for AI-powered customer support services.
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The key players operating in the enterprise AI market are NVIDIA Corporation (U.S.), Google LLC (A subsidiary of Alphabet Inc.) (U.S.), Amazon Web Services, Inc. (A Subsidiary of Amazon.com, Inc.) (U.S.), International Business Machines Corporation (U.S.), Microsoft Corporation (U.S.), Verint Systems Inc. (U.S.), SAP SE (Germany), Pegasystems Inc. (U.S.), Wipro Limited (India), Intel Corporation (U.S.), Oracle Corporation (U.S.), Hewlett Packard Enterprise (U.S.), MicroStrategy Incorporated (U.S.), Amelia US LLC (U.S.), Sentient.io (Singapore).
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Scope of the Report:
Global Enterprise AI Market Assessment—by Offering
SolutionsServicesProfessional ServicesManaged ServicesGlobal Enterprise AI Market Assessment—by Deployment Mode
On-premise DeploymentCloud-based DeploymentGlobal Enterprise AI Market Assessment—by Organization Size
Large EnterprisesSmall & Medium-sized EnterprisesGlobal Enterprise AI Market Assessment—by Technology
Machine LearningNatural Language ProcessingImage ProcessingSpeech RecognitionGlobal Enterprise AI Market Assessment—by End-use Industry
IT & TelecomNetwork OptimizationCustomer Service Automation and Virtual AssistantsHuman Resource ManagementCustomer AnalyticsCybersecurityOther IT & Telecom Applications BFSISecurity and Risk ManagementStreamlining Regulatory ComplianceCustomer Relationship ManagementReal-Time Transaction MonitoringData Analytics & PredictionOther BFSI Applications HealthcareHospital Workflow ManagementLifestyle ManagementPatient Data & Risk AnalyticsMedical Imaging & DiagnosisPrecision MedicineRemote Patient MonitoringRobot-assisted SurgeryDrug Discovery Retail & E-commerceSearch and RecommendationsCustomer Relationship ManagementInventory ManagementSupply Chain OptimizationIn-store Visual Monitoring & SurveillancePredictive AnalyticsDemand ForecastingChatbots Media & AdvertisementChatbots and Virtual AssistantsPredictive AnalyticsSales & Marketing AutomationAdvertising RecommendationContent GenerationTalent IdentificationProduction Planning & Management AutomotiveAdvanced Driver Assistance SystemsHuman-Machine InterfaceVehicle PersonalizationDesigning and Production ManagementSupply Chain ManagementOther Automotive Applications GovernmentFraud Detection and PreventionAdministrative ProcessesDisaster Management and ResponsePersonalized User SupportOther Government Applications Other End-use IndustriesGlobal Enterprise AI Market Assessment —by Geography
North AmericaU.S.CanadaEuropeGermanyU.K.FranceItalySpainRest of EuropeAsia-PacificChinaJapanIndiaSouth KoreaSingaporeRest of Asia-PacificLatin AmericaMiddle East & AfricaRelated Reports:
Conversational AI Market by Offering, Application, Organization Size, Deployment Mode, Sector (IT & Telecommunications, BFSI, Retail & E-commerce, Healthcare & Life Sciences, Travel & Hospitality, Education, Manufacturing) – Global Forecast to 2030
Speech and Voice Recognition Market by Function (Speech, Voice Recognition), Technology (AI and Non-AI), Deployment Mode (Cloud, On-premise), End User (Consumer Electronics, Automotive, BFSI, Other End Users), and Geography – Global Forecast to 2030
AI in Manufacturing Market by Component, Technology (ML, NLP, Computer Vision), Application (Predictive Maintenance & Machinery Inspection, Quality Management, Supply Chain Optimization), End-use Industry – Global Forecast to 2030
AI in E-commerce Market by Technology (ML, NLP, Computer Vision), Business Model, Deployment Mode, Product Offering (Beauty & Fashion, Pharmaceutical, Electronic), End User (B2B, B2C), and Geography – Global Forecast to 2031
Healthcare Artificial Intelligence Market by Offering (Software, Services), Technology (ML, NLP), Application (Hospital Workflow Management, Patient Management), End User (Hospitals & Diagnostic Centers), and Geography – Global Forecast to 2031
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Mr. Khushal BombeMeticulous Market Research Inc.1267 Willis St, Ste 200 Redding,California, 96001, U.S.USA: +1-646-781-8004Europe : +44-203-868-8738APAC: +91 744-7780008Email- [email protected] Visit Our Website: https://www.meticulousresearch.com/Connect with us on LinkedIn- https://www.linkedin.com/company/meticulous-researchContent Source: https://www.meticulousresearch.com/pressrelease/1041/enterprise-ai-market-2031
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