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Intellectia.AI Updated: 1970-01-01
ECARX Holdings Inc. Reports Second Quarter 2024 Financial Results
Overview
ECARX Holdings Inc. (NASDAQ: ECX), a global mobility tech provider, has reported its unaudited financial results for the quarter ended June 30, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | % Change YoY | Wall Street Expected Q2 2024 |
|---|---|---|---|---|
| Total Revenue | $173.0 million | $132.1 million | +31% | $169.75 million |
| Earnings Per Share (EPS) | -$0.06 | N/A | N/A | -$0.08 |
| Adjusted EBITDA (Non-GAAP) | -$28.9 million | -$21.5 million | N/A | N/A |
| Gross Profit | $40.1 million | $41.4 million | -3% | N/A |
| Net Loss | -$42.3 million | -$26.1 million | N/A | N/A |
| Total Cash | $108.4 million | N/A | N/A | N/A |
Interpretation of Financial Performance ECARX has demonstrated robust growth in total revenue, surpassing Wall Street expectations with a 31% year-over-year increase. The company’s EPS of -$0.06 beats consensus estimates of -$0.08. Despite a slight decline in gross profit due to a pricing strategy to boost revenue, ECARX remains resilient with strong revenue growth indicators.
Revenue Performance by Major Segments
| Segment | Q2 2024 | Q2 2023 | % Change YoY |
|---|---|---|---|
| Sales of Goods | $129.8 million | $92.1 million | +41% |
| Software License Revenue | $7.8 million | $15.6 million | -50% |
| Service Revenue | $35.4 million | $24.4 million | +45% |
Segment Performance Interpretation Sales of goods saw a substantial increase, driven by heightened global demand and increased sales volumes of key products like the Antora series. Service revenue also surged by 45%, attributed to successful vehicle program completions and market expansion. However, software license revenue declined significantly due to reduced intellectual property license sales compared to the previous year.
Key Operational Data
| Metric | Q2 2024 |
|---|---|
| Vehicles Incorporating ECARX Technology | 6.9 million |
| New Design Wins | 5 |
Comments from Company Officers ECARX Chairman and CEO, Ziyu Shen, highlighted the company's position at the forefront of the software-defined vehicle industry, citing the rapid increase in vehicles utilizing ECARX technology, new international design wins, and promising partnerships. Shen emphasized confidence in the company's growth potential and long-term shareholder value creation.
Dividends and Share Repurchase Programs No information on any announced dividends or share repurchase programs was provided.
Forward Guidance The company has not provided specific forward guidance; however, Ziyu Shen expressed optimism about sustaining growth and capitalizing on market opportunities in the second half of the year.
Stock Price Movement Following the earnings release, ECARX's stock price increased by approximately 4.13%.
Conclusion Despite challenges, ECARX has shown significant revenue growth and improved market reach, reinforcing its strategic initiatives within the automotive tech sector. The company is well-positioned to maintain its momentum through sustained innovation and international expansion.
