ECARX’s revenue jumps 21% YoY in Q1 2024, net loss widens

Beijing (Gasgoo)- On May 20, 2024, Geely-backed mobility tech provider ECARX Holdings Inc. announced its unaudited financial results for the quarter of this year, which showed a total revenue of 927.9 million yuan (US$128.5 million), marking a 21% year-over-year (YoY) increase.

Photo credit: ECARX

The company's gross profit for the quarter was 205.3 million yuan (US$28.4 million), representing a 2% YoY decline, resulting in a gross margin of 22%, which dropped from the year-ago level. The reduction in gross margin was due to a penetration pricing strategy aimed at boosting automotive computing platform revenue growth and a shift in the revenue mix compared to the previous year, ECARX explained.

ECARX’s R&D expenses rose by 13% from a year ago to 269.4 million yuan (US$37.3 million) in the first quarter of 2024. This increase was primarily driven by higher investment in the company’s core product roadmap, future technologies, and the expansion of international R&D capacities.

Nonetheless, ECARX’s net loss for the quarter amounted to 302.2 million yuan (US$42.0 million), compared to a net loss of 219.4 million yuan in the same period last year. This was mainly due to increased R&D expenses and changes in the fair value of equity investments, said the company.

The company disclosed that as of March 31, 2024, over 6.4 million vehicles on the road are equipped with ECARX products.