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Dec 31, 2024
ECARX Q4 2024 Earnings Report
ECARX reported a moderate revenue increase and a significant reduction in net loss for Q4 2024.
Key Takeaways
ECARX posted a 4% year-over-year increase in revenue for Q4 2024, reaching $265.9 million. The company's operating loss narrowed significantly, and it achieved positive adjusted EBITDA of $10.3 million compared to a loss of $32.4 million in the previous year. Net loss decreased substantially to $5.3 million from $44.7 million in Q4 2023, mainly due to lower operating expenses and a gain from the partial sale of an equity investment.
Total revenue increased by 4% YoY to $265.9 million.
Net loss significantly reduced to $5.3 million from $44.7 million last year.
Adjusted EBITDA turned positive at $10.3 million, compared to a loss of $32.4 million a year ago.
Gross profit decreased 4% YoY, with gross margin at 21% due to penetration pricing strategy.
Revenue by Segment
Forward Guidance
ECARX expects to maintain revenue growth in 2025 while targeting full-year breakeven. The company plans to leverage global partnerships and new product launches to drive profitability.
Positive Outlook
- Revenue expected to continue growing in 2025.
- Targeting full-year breakeven based on positive Q4 adjusted EBITDA.
- Expansion of global customer base with key contracts, including Volkswagen.
- Anticipated higher shipment volumes and demand for computing platforms.
- Operational efficiencies expected to further reduce expenses.
Challenges Ahead
- Continued pricing pressure due to competitive penetration strategy.
- Software revenue has been declining year-over-year.
- Potential macroeconomic risks affecting international expansion.
- Cash position remains a concern for sustaining growth investments.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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