ECARX scores 45% YoY surge in Q2 2023 revenue

Beijing (Gasgoo)- ECARX Holdings, Inc. Geely-backed mobility technology solution provider, released its second quarter 2023 financial report on August 9, showcasing robust growth and strategic advancements. 

Photo credit: ECARX

Total revenue of ECARX reached 952.3 million yuan (US$131.4 million) in Q2 2023, marking a 45% surge from a year ago. 

Specifically, sales of goods revenue soared by 87% year on year to 670.4 million yuan (US$92.5 million), driven by increased digital cockpit sales and a portfolio shift from infotainment head units to digital cockpits. Software license revenue zoomed up 212% from the earlier year to 113.3 million yuan (US$15.6 million), majorly from two intellectual property license procurement agreements. However, service revenue decreased by 36% from the year-ago period to 168.6 million yuan (US$23.3 million) due to timing discrepancies in non-recurring engineering revenue (NRE), to be recognized in H2 2023. Total cost of revenue rose by 77% from the previous year to 654.7 million yuan (US$90.3 million), reflecting non-recurring strategic engineering contracts and outsourcing costs.

In the second quarter of this year, ECARX’s gross profit stood at 297.6 million yuan (US$41.1 million), up 3% year on year, with a 31% gross margin. R&D expenses declined 21% from the earlier year to 243.7 million yuan (US$33.6 million) due to the company’s decision to halt the development of ADAS perception software. The company’s net loss was 191.8 million yuan (US$26.5 million) in the Apr.-Jun. period.

In Q2 2023, ECARX expanded its international footprint by appointing a San-Diego-based Chief Technology Officer to lead advanced automotive IP development and drive technology strategy. ECARX’s products are now deployed in over 5.2 million vehicles as of June 30, 2023.