Executives to Review ECARX's Vision,
Strategy, and Execution
NEW
YORK, May 9, 2023 /PRNewswire/ -- Today,
ECARX Holdings, Inc. (Nasdaq: ECX) ("ECARX"), will host its
inaugural investor day in New York
City. The event will feature presentations from leadership
and provide an updated view of the company's growth strategy,
capital allocation plans, and product pipeline, followed by a live
Q&A and product demonstrations.
"ECARX is driving a new era of industry innovation and growth,
operating as an architect of the next-generation automotive
technology ecosystem," said Ziyu
Shen, co-founder, Chairman and CEO of ECARX. "Our mission is
to build a smart mobility platform that seamlessly integrates
cutting-edge hardware and software to deliver intelligent and
sustainable solutions for customers. As we bring ECARX technology
to a truly global audience, we are excited to deliver the future of
smart mobility today."
Value Creation Strategy
At the event, leadership will give details about its plans for
long-term value creation, including:
- Partnering with global OEMs to expand revenue streams and
market presence, and ultimately deliver more value to
customers,
- Innovating its product portfolio to increase average revenue
per car,
- Aggressive investments in R&D to accelerate the shift
toward a central computing platform, and enable more advanced
features and functionality in vehicles, and
- Accelerating collaborations with cutting-edge global partners
to reach further scale.
Five Year Outlook
ECARX will announce the following targets for the business
through to 2027:
Measure
|
Target
|
Revenue
|
$2,600 - $2,800 million
in 2027
|
Revenue
growth
|
CAGR of 40% 2023
through 2027
|
Gross Margin
|
>30% in
2027
|
Adjusted
EBITDA
|
Positive in 2024;
$340 - $360 million in 2027;
~13% margin in 2027
|
Free Cash
Flow
|
>$300 million in
2027
|
Content per
car
|
$630 - $650 in
2027
|
Cars ECARX technology
deployed in
|
>20 million in
2027
|
|
Fireside Q&A with Alwin
Bakkenes, Head of Software Engineering at
Volvo
A featured discussion with Volvo's Head of Software Engineering,
Alwin Bakkenes, will take place and
center on the deepening partnership between ECARX and Volvo, as
well as how the two companies are working together to develop
next-generation vehicle technologies.
The collaboration is helping to further Volvo's innovation
agenda by leveraging ECARX's expertise in automotive electronics,
software, and data-driven services.
Watch On Demand
The ECARX Investor Day will take place today at 8:00am ET/5:00am
PT. ECARX partners featured during today's event include:
Dirk Adelmann, CEO of smart
Europe, Thomas Ingenlath, CEO of
Polestar, Serino Angellotti, Head of
E/E – Digital User Experience at Lotus, and Rajneesh Gaur,
Corporate Vice President & GM of AMD.
Video of the event is available on-demand on the company's
investor relations page, available here:
www.ecarxgroup.com/investorday
About ECARX
ECARX (Nasdaq: ECX) is a global mobility-tech provider
partnering with OEMs to reshape the automotive landscape as the
industry transitions to an all-electric future. As OEMs develop new
vehicle platforms from the ground up, ECARX is developing a
full-stack solution – central computer, System-on-a-Chip (SoCs) and
software to help continuously improve the in-car user experience.
The company's products have been integrated into more than 5
million cars worldwide, and it continues to shape the interaction
between people and vehicles by rapidly advancing the technology at
the heart of smart mobility.
ECARX was founded in 2017 and today has around 1,500 team
members. The co-founders are two automotive entrepreneurs, Chairman
and CEO Ziyu Shen, and Eric Li (Li Shufu), who is also the founder and
chairman of Zhejiang Geely Holding Group – one of the largest
automotive groups in the world, with ownership interests in
international brand OEMs including Lotus, Lynk & Co, Polestar,
smart and Volvo Cars.
Forward-Looking Statements
This release contains statements that are forward-looking
statements within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995. These statements are based on
management's beliefs and expectations as well as on assumptions
made by and data currently available to management, appear in a
number of places throughout this document and include statements
regarding, amongst other things, results of operations, financial
condition, liquidity, prospects, growth, strategies and the
industry in which we operate. The use of words "expects,"
"intends," "anticipates," "estimates," "predicts," "believes,"
"should," "potential," "may," "preliminary," "forecast,"
"objective," "plan," or "target," and other similar expressions are
intended to identify forward-looking statements. These
forward-looking statements are not guarantees of future performance
and are subject to a number of risks and uncertainties that could
cause actual results to differ materially, including, but not
limited to statements regarding our intentions, beliefs or current
expectations concerning, among other things, results of operations,
financial condition, liquidity, prospects, growth, strategies,
future market conditions or economic performance and developments
in the capital and credit markets and expected future financial
performance, and the markets in which we operate.
For a discussion of these and other risks and uncertainties that
could cause actual results to differ materially from those
expressed in any forward-looking statement, see ECARX's filings
with the U.S. Securities and Exchange Commission. ECARX undertakes
no obligation to update or revise and forward-looking statements to
reflect subsequent events or circumstances, except as required by
applicable law.
Translation of results into U.S. dollars
This announcement contains translations of certain Renminbi
(RMB) amounts into U.S dollars (US$) at a specified rate solely for
the convenience of the reader. Unless otherwise noted, the
translation of RMB into US$ has been made at RMB6.8972 to US$1.00, the noon buying rate in effect on
December 30, 2022 as set forth in the
H.10 Statistical Release of The Board of Governors of the Federal
Reserve System. We make no representation that any Renminbi or U.S.
dollar amounts could have been, or could be, converted into U.S.
dollars or Renminbi, as the case may be, at any particular rate, or
at all.
Non-GAAP Financial Measure
Adjusted EBITDA
The Company uses adjusted EBITDA (non-GAAP) in evaluating its
operating results and for financial and operational decision-making
purposes. Adjusted EBITDA (non-GAAP) is defined as net loss
excluding interest income, interest expense, income tax expenses,
depreciation of property and equipment, amortization of intangible
assets, and share-based compensation expenses.
Adjusted EBITDA (non-GAAP) should not be considered in isolation
or construed as alternatives to net loss or any other measures of
performance or as indicators of the Company's operating
performance. Investors are encouraged to compare the Company's
historical adjusted EBITDA (non-GAAP) to the most directly
comparable GAAP measure, net loss. Adjusted EBITDA (non-GAAP)
presented here may not be comparable to similarly titled measures
presented by other companies.
Growth at Constant Currency
The Company provides revenue growth rates at constant currency,
which exclude the impact of foreign currency translation, in order
to facilitate a comparison of its current revenue performance to
its past revenue performance. To calculate revenue growth rates in
constant currency, the Company converts actual net sales from local
currency to U.S. dollars using constant foreign currency exchange
rates in the current and prior period.
Free Cash Flow
Free cash flow (non-GAAP) is used by the Company to evaluate its
cash generation ability. Free cash flow is defined as net cash
provided by operating activities after adjusting for working
capital movements and capital expenditures. Management believe that
free cash flow is a useful metric for investors to assess the
Company's financial performance because it measures the amount of
cash generated after taking into account the investments made in
the business. This measure enables management to assess the
Company's ability to fund future growth initiatives, make strategic
acquisitions, and return value to shareholders.
The Company presents these non-GAAP financial measure because
they are used by management to evaluate the Company's operating
performance and formulate business plans. The Company believes that
these non-GAAP measure helps identify underlying trends in its
business that could otherwise be distorted. The Company also
believes that the use of the non-GAAP measure facilitates
investors' assessment of its operating performance. Such non-GAAP
measures should be considered only as supplemental to, and not as
superior to, financial measures prepared in accordance with GAAP.
The management of the Company does not consider these non-GAAP
measures in isolation or as an alternative to financial measures
determined in accordance with GAAP. Further, other companies may
calculate similarly titled measures differently, limiting their
usefulness as comparative measures to the Company's data. The
Company encourages investors and others to review the financial
information in its entirety and not rely on a single financial
measure. Non-GAAP financial measures are subject to inherent
limitations as they reflect the exercise of judgments by management
about which expense and income are excluded or included in
determining these non-GAAP financial measures. Additionally, to the
extent that forward-looking non-GAAP financial measures are
provided, they are presented on a non-GAAP basis without
reconciliations of such forward-looking non-GAAP measures due to
the inherent difficulty in forecasting and quantifying certain
amounts that are necessary for such reconciliation.
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SOURCE ECARX