• Total Revenue: $441.9 million, up 21.5% from $363.7 million in 2023.
• Auto Insurance Revenue: Increased 44.4% to $170.5 million from $118.1 million in 2023.
• Technology Services Revenue: Increased 26.4% to $44.9 million from $30.7 million in 2023.
• Auto Services Revenue: Increased 5.3% to $226.5 million from $215 million in 2023.
• Operating Costs and Expenses: Increased to $500.3 million from $379.2 million in 2023.
• Adjusted EBITDA: Increased 492% to $9.8 million from $1.6 million in 2023.
• General and Administrative Expenses: Increased to $47 million from $22.5 million in 2023.
• Research and Development Expenses: Increased to $40.2 million from $14.1 million in 2023.

• Warning! GuruFocus has detected 2 Warning Signs with SDA.

Release Date: April 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• SunCar Technology Group Inc (NASDAQ:SDA) reported record revenue of $442 million for 2024, demonstrating sustainable growth.
• The company's adjusted EBITDA increased by nearly 500%, indicating strong operational performance.
• SunCar expanded its partnership with Tesla to 48 cities, enhancing its market presence and customer reach.
• The company has developed a customized insurance product for Xiaomi, showcasing its ability to innovate and meet specific partner needs.
• SunCar's investment in AI technology and software has yielded a positive return on investment, enhancing product development and customer satisfaction.

Negative Points

• Operating costs and expenses increased significantly to $500.3 million, impacting overall profitability.
• General and administrative expenses rose due to a $31 million increase in share-based compensation, affecting net income.
• Research and development expenses increased substantially, driven by share-based compensation, which may pressure future margins.
• The company's expansion into the gas vehicle market is still in progress, and its impact on revenue growth remains uncertain.
• SunCar faces potential risks from regulatory changes and market competition, which could affect future performance.

Q & A Highlights

Q: What impact, if any, will US tariffs have on SunCar's business? A: Breaux Walker, Chief Strategy Officer, stated that US tariffs are not expected to have a material direct impact on SunCar's business as it is entirely focused on China's domestic auto market. However, they continue to monitor potential indirect effects such as supply chain disruptions for their partners.

Q: Why have so many EV manufacturers been interested in partnering with SunCar and using your technology? A: Breaux Walker explained that SunCar's long-standing market presence and significant investment in industry-specific cloud, AI, mobile apps, and data infrastructure have resulted in a differentiated solution. This makes SunCar's insurance technology the most mature and feature-rich in the market, appealing to EV manufacturers focusing on the post-sale customer journey.

Q: How do you see your Tesla relationship evolving over time? A: Breaux Walker noted that Tesla remains a strong partner, expanding SunCar's portfolio of insurance products and sharing the vision of delivering customized, full-featured services to each driver.

Q: What do you attribute the rapid growth of your insurance business to? A: Breaux Walker attributed the growth to differentiation and the increasing competition among EV and gas vehicle manufacturers. SunCar's technology plays a key role in their digitalization strategy, enabling additional downstream revenue opportunities through sales and service options for vehicle owners.

Q: How do you view AI impacting your business in 2025? A: Breaux Walker highlighted that AI has significantly impacted their business, optimizing operations and adding new product features. They plan to integrate AI into as many features as possible to enhance the driver's experience and accelerate customers' monetization efforts.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.