EHang Holdings Stock Slips After Q2 Results

EHang Holdings Ltd EH reported a second-quarter revenue decline of 65.9% year-over-year to RMB12.2 million ($1.9 million), reflecting the company's strategic transition into more operation platform-oriented model.
Adjusted EPADS was $(0.14) or RMB(0.88) compared to RMB(0.20) a year ago.
The gross margin expanded by 1,040 bps to 68.0%.
Operating loss expanded to RMB(74.9) million or $(11.6) million, compared to RMB(19.2) million in 2Q20.
Adjusted operating loss widened to RMB(49.4) million versus RMB(11.1) million a year ago.
EHang sold three units of 216 series of passenger-grade AAVs during the quarter, compared with 16 units in 2Q20.
EHang cash used in operating activities year-to-date totaled RMB43.2 million ($6.69 million), compared to RMB73.8 million last year.
FY21 Outlook: EHang's revenue outlook remains at RMB130 million - RMB180 million.
Price Action: EH shares are trading lower by 9.04% at $23.15 during the pre-market session on Wednesday.

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