ECARX Holdings Inc.

Good morning and welcome to eCorex's fourth quarter and full year 2022 earnings conference call. At this time, I would like to turn the conference over to Adam Kay, Head of Investor Relations. Please go ahead, Adam.

Good morning and welcome to our Q4 and full year 2022 earnings conference call. With me today are eCorex Chairman, CEO and Co-Founder Zhu Shen, Chief Operating Officer Peter Serino and Chief Financial Officer Ramesh Narasimhan. As a quick reminder, this call is being recorded. Before we begin the prepared remarks followed by Q&A, please note that we may refer to both GAAP and non-GAAP measures. Today's discussion also contains forward-looking statements based on the environment as we currently see it, and as such, it does include risks and uncertainties. Please refer to our filings with the SEC for more information on the specific risk factors that could cause actual results to differ materially. With that, I'd like to introduce eCorex Chairman and CEO, Ziu Shen.

Thank you, Adam. Hello, everyone, and welcome. Thank you for joining our first earnings call as a public company following our listing on NASDAQ in December. We are very excited to be here today. For those who are new to our story, I would like to start today's call with a brief overview of our company before discussing our financial results. I will also discuss some of the exciting announcements made at our recent tech day and then turn the call over to Peter and Ramesh for commentary on our strategy. financial performance, and outlook for the year. To begin with, eCARX is a global mobility tech provider working with OEMs to shift the automotive landscape as the industry moves to an all-electrical future. As OEMs create new vehicle platforms from the ground up, we are developing vertically integrated full-stack solutions which include digital copies, chipset solutions, a core operating system, and an integrated software stack, all designed specifically for automotive use, aiming to combine multiple ECUs into a single computing platform, which enables OEMs to develop new applications, services, and run new streams. As of December 31, Our solutions have been integrated into 4.7 million cars worldwide, and we continue to share the interaction between people and vehicles by advancing the technology behind smart mobility products. Six years ago, I co-founded eCarX with Eric Li, founder and chairman of Zhejiang GD Group Holding Group, one of the largest automotive groups in the world. Today, we have around 1,500 employees worldwide, of which over 70% are involved in RMB. Our operations span 10 global centers in cities such as London, Goldenberg, and Shanghai. We work with a total of 12 OEMs and 21 vehicle brands across Asia Pacific and Europe, including GDRO, LinkinCo, Zika, Lotus, Volvo Cars, Polestar, and Smart, as well as eight different tier one automotive suppliers, including Viztion, Newsoft, Beidou, and Decisy. In the same way, the telephone involved into a handheld computer. The car of the future will evolve into a computer on wheels. eCarX is at the forefront of this journey, helping to bring automotive intelligence to all. We focus on developing an automotive tech platform that is uniquely informed by our deep-rooted automotive and strategic collaboration We learned in our early days that the best way to deliver great computing power and experience is to collaborate at the research and the development stage. For example, we have agreements and strong relationships with cutting edge companies like AMD, Volvo and SunEngine. where we collaborate on an immersive digital computing platform that is defining the next generation of in-vehicle entertainment and taking the digital customer experience to the next level. Another example is our latest strategic partnership with Unreal Engine, with which we are working on creating an enhanced user experience through real-time 3D immersive virtual effects which supports large-scale AAA games and the extensive gaming ecosystem of the Epic Games Store, we view this as one of the key differential aids for eCarX. OEMs benefit from our seamless, deeply integrated solution and work with us as early as they want a new car design. Looking ahead, we are excited by the opportunity in the large and growing automotive tech industry and believe our cutting-edge solutions and strategic relationships will enable us to continue to capture new market share. Now, I will provide some highlights on our financial performance, which Ramesh will go into in greater detail later. We saw a revenue of 516 million for full year 2022 and year-over-year increase of 28% at concentrated currency. This growth was largely driven by an increase of new digital copy sales volume and favorable sales mix with higher revenues per unit. Demand for our innovative products remains strong as we continue to expand our customer base. In 2022, we introduced and launched new products with vehicle brands such as Lotus, Smart, Citroen, and Mazda. Alongside our strong top-run performance, we also saw significantly improved adjusted EBITDA loss of $100 million for four years 2022, coming below our projected loss of $162 million for the four years Importantly, we remain on track to reach adjusted EBITDA profitability by the end of 2024. Last year was historic for e-car apps, and we are excited to build on this momentum in 2023 and beyond. We look forward to providing more details on our strategic vision, product roadmap, five years financial targets and growth opportunities at our Invest Day on Tuesday, May 9 in New York City. I hope you will all attend in order to see our products in action through live demos and meet more of our leadership team. Before handing off to Peter, I want to highlight a few items from our Tech Day event, which was held last month, with the theme of Enable and Accelerate. We showcase how eCarX is pioneering a new era of intelligent vehicles by bringing the next level of efficiency and computing power to the global automotive market. Business and R&D leaders from more than 10 automakers and their major brands participated in the event, including Mercedes-Benz, Smart, and Porsche, as well as representatives from various emerging EV We were also joined by many of our global partners, such as AMD, emphasizing e-commerce, comparing technology, and the excitement among our stakeholders. During the event, we announced the launch of multiple automotive hardware and software platforms, including the Antora Series, Macaulay, the SuperBrain Central Computing Platform, and the Cloud Peak Software. These products will enable our customers to create high-quality vehicles and define the next generation of intelligent automotive experience. And importantly, bring their new designs to market at speed. Peter will discuss our strategy, partnerships, and platforms next, and we're looking forward to sharing additional details about our innovative offerings at our investor next month.