Artificial Intelligence

GXO Reports First Quarter 2023 Results

Published

1 year ago

May 9, 2023

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Highlights

Record first quarter revenue of $2.3 billion, up 12% year over year; organic revenue growth¹ of 7%; net income attributable to GXO of $25 million; adjusted EBITDA¹ of $158 million; diluted EPS of $0.21 and adjusted diluted EPS¹ of $0.49
Full-year 2023 profit guidance raised:
- Adjusted diluted EPS raised $0.10, now expected to be $2.40–$2.60
- Adjusted EBITDA raised $15 million, now expected to be $715–$745 million

Business Highlights

Sales pipeline grows to approximately $2.3 billion, up from fourth quarter 2022
Strong first half momentum in new wins, including signing GXO’s largest-ever annual revenue contract
Incremental 2023 revenue of $782 million secured through the first quarter
Revenue retention rate remains in the mid-to-high 90s
First quarter e-commerce revenue up 34% year over year; reverse logistics revenue up 50% year over year
Record operational tech deployment, up 64% year over year
Expanded GXO Direct product to UK; rollout to Continental Europe planned later this year

GREENWICH, Conn., May 09, 2023 (GLOBE NEWSWIRE) — GXO Logistics, Inc. (NYSE: GXO) today announced results for the first quarter 2023.

Malcolm Wilson, Chief Executive Officer of GXO, said, “We’ve had a great start to the year, with strong top- and bottom-line results showcasing the strength and predictability of our business. In the first quarter, we delivered record revenue of $2.3 billion, up 12 percent year over year; $25 million of net income attributable to GXO; and $158 million of adjusted EBITDA, reflecting stellar operational performance.

“We’ve kicked off the year by signing exciting new partnerships and expanding relationships across multiple verticals and markets, with several transformative projects coming to fruition. Our new project with Sainsbury’s, a leading grocery retailer in the UK, is the largest annual revenue contract awarded in GXO’s history and represents nearly $1 billion in lifetime value. Through the end of April, we’ve secured over $800 million of incremental revenue for 2023, while bringing our pipeline to a near-record level.

“We saw increased outsourcing and automation in the quarter. Operational tech was up a record 64 percent year over year, and we are accelerating our deployment of artificial intelligence, which boosts productivity significantly. We also continued to make strong progress on our key initiatives: we are seeing the benefits of our central efficiencies program sooner than expected, and the integration of Clipper is largely complete, allowing GXO to accelerate the expansion of GXO Direct, our industry-leading shared-user solution, to the UK.

“Our first quarter performance, strong wins, growing pipeline, and excellent execution put us squarely on track for achieving our raised 2023 guidance and delivering our 2027 targets. It’s an exciting year, and we see significant opportunity to take share and grow our business.”

_______________
¹ For definitions of non-GAAP measures see the “Non-GAAP Financial Measures” section in this press release.

First Quarter 2023 Results

Revenue increased to $2.3 billion, up 12% year over year compared with $2.1 billion for the first quarter 2022. Organic revenue grew by 7%.

Operating income increased to $42 million, up 14% year over year compared with $37 million for the first quarter 2022.

Reflecting the impact of non-operational items, including foreign exchange rates, interest expense, and reduced pension income, net income attributable to GXO was $25 million, compared with $37 million for the first quarter 2022. Diluted earnings per share was $0.21, compared with $0.32 for the first quarter 2022.

Adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA¹”) increased to $158 million from $155 million in the first quarter 2022.

Adjusted net income attributable to GXO¹ was $59 million, compared with $68 million for the first quarter 2022. Adjusted diluted earnings per share¹ was $0.49, compared with $0.59 for the first quarter 2022.

GXO generated $39 million of cash flow from operations, compared with $46 million for the first quarter 2022. In the first quarter of 2023, GXO used $43 million of free cash flow¹ compared to $16 million for the first quarter 2022, reflecting typical seasonality.

Cash Balances and Outstanding Debt

As of March 31, 2023, cash and cash equivalents and debt outstanding were $426 million and $1,781 million, respectively, as part of GXO’s investment grade balance sheet.

2023 Guidance

GXO’s current 2023 financial outlook is as follows:

Organic revenue growth¹ of 6% to 8%;
Adjusted EBITDA¹ of $715 million to $745 million (raised from $700 million to $730 million);
Free cash flow¹ conversion of approximately 30% of adjusted EBITDA¹; and
Adjusted diluted earnings per share¹of $2.40 to $2.60 (raised from $2.30 to $2.50).

Conference Call

GXO will hold a conference call on Wednesday, May 10, 2023, at 8:30 a.m. Eastern Time. Participants can call toll-free (from US/Canada) 877-407-8029; international callers dial +1 201-689-8029. Conference ID: 13737653. A live webcast of the conference will be available on the Investor Relations area of the company’s website, investors.gxo.com. The conference will be archived until May 24, 2023. To access the replay by phone, call toll-free (from US/Canada) 877-660-6853; international callers dial +1 201-612-7415. Use participant passcode 13737653.

About GXO Logistics

GXO Logistics, Inc. (NYSE: GXO) is the world’s largest pure-play contract logistics provider and is benefiting from the rapid growth of ecommerce, automation and outsourcing. GXO is committed to providing a diverse, world-class workplace for more than 130,000 team members across more than 970 facilities totaling approximately 200 million square feet. The company partners with the world’s leading blue-chip companies to solve complex logistics challenges with technologically advanced supply chain and ecommerce solutions, at scale and with speed. GXO corporate headquarters is in Greenwich, Connecticut, USA. Visit GXO.com for more information and connect with GXO on LinkedIn, Twitter, Facebook, Instagram and YouTube.

Non-GAAP Financial Measures

As required by the rules of the Securities and Exchange Commission (“SEC”), we provide reconciliations of the non-GAAP financial measures contained in this press release to the most directly comparable measure under GAAP, which are set forth in the financial tables below.

GXO’s non-GAAP financial measures in this press release include: adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”), adjusted EBITDA margin, adjusted earnings before interest, taxes and amortization (“adjusted EBITA”), adjusted EBITA, net of income taxes paid, adjusted EBITA margin, adjusted net income attributable to GXO, adjusted earnings per share (basic and diluted) (“adjusted EPS”), free cash flow, organic revenue, organic revenue growth, net leverage ratio, net debt, and return on invested capital (“ROIC”).

We believe that the above adjusted financial measures facilitate analysis of our ongoing business operations because they exclude items that may not be reflective of, or are unrelated to, GXO’s core operating performance, and may assist investors with comparisons to prior periods and assessing trends in our underlying businesses. Other companies may calculate these non-GAAP financial measures differently, and therefore our measures may not be comparable to similarly titled measures used by other companies. GXO’s non-GAAP financial measures should only be used as supplemental measures of our operating performance.

Adjusted EBITDA, adjusted EBITA, adjusted net income attributable to GXO and adjusted EPS include adjustments for transaction and integration costs, as well as restructuring costs and other adjustments as set forth in the financial tables below. Transaction and integration adjustments are generally incremental costs that result from an actual or planned acquisition or divestiture and may include transaction costs, consulting fees, retention awards, internal salaries and wages (to the extent the individuals are assigned full-time to integration and transformation activities) and certain costs related to integrating and separating IT systems. Restructuring costs primarily related to severance costs associated with business optimization initiatives.

We believe that free cash flow is an important measure of our ability to repay maturing debt or fund other uses of capital that we believe will enhance stockholder value. We calculate free cash flow as net cash provided by operating activities less payment for purchases of property and equipment plus proceeds from sale of property and equipment.

We believe that adjusted EBITDA, adjusted EBITDA margin, adjusted EBITA, adjusted EBITA, net of income taxes paid, and adjusted EBITA margin, improve comparability from period to period by removing the impact of our capital structure (interest and financing expenses), asset base (depreciation and amortization), tax impacts and other adjustments as set out in the attached tables, which management has determined are not reflective of core operating activities and thereby assist investors with assessing trends in our underlying businesses.

We believe that adjusted net income attributable to GXO and adjusted EPS improve the comparability of our operating results from period to period by removing the impact of certain costs and gains, which management has determined are not reflective of our core operating activities, including amortization of acquisition-related intangible assets.

We believe that organic revenue and organic revenue growth are important measures because they exclude the impact of foreign currency exchange rate fluctuations, revenue from acquired businesses and revenue from deconsolidated operations.

We believe that net leverage ratio and net debt are important measures of our overall liquidity position and are calculated by removing cash and cash equivalents from our total debt and net debt as a ratio of our adjusted EBITDA. We calculate ROIC as our adjusted EBITA, net of income taxes paid divided by invested capital. We believe ROIC provides investors with an important perspective on how effectively GXO deploys capital and use this metric internally as a high-level target to assess overall performance throughout the business cycle.

Management uses these non-GAAP financial measures in making financial, operating and planning decisions and evaluating GXO’s ongoing performance.

With respect to our financial targets for full-year 2023 organic revenue growth, adjusted EBITDA, free cash flow, and adjusted diluted EPS, a reconciliation of these non-GAAP measures to the corresponding GAAP measures is not available without unreasonable effort due to the variability and complexity of the reconciling items described above that we exclude from these non-GAAP target measures. The variability of these items may have a significant impact on our future GAAP financial results and, as a result, we are unable to prepare the forward-looking statements of income and cash flows prepared in accordance with GAAP, that would be required to produce such a reconciliation.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements, including our full year 2023 financial targets of organic revenue growth, adjusted EBITDA, free cash flow, adjusted diluted earnings per share, the expected incremental revenue in 2023 from new customer wins in 2023, and continued strong performance in 2023 and delivery of our 2027 targets. In some cases, forward-looking statements can be identified by the use of forward-looking terms such as “anticipate,” “estimate,” “believe,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict,” “should,” “will,” “expect,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target,” “trajectory” or the negative of these terms or other comparable terms. However, the absence of these words does not mean that the statements are not forward-looking. These forward-looking statements are based on certain assumptions and analyses made by the company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors the company believes are appropriate in the circumstances.

These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions that may cause actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause or contribute to a material difference include, but are not limited to, the risks discussed in our filings with the SEC and the following: the impact of the COVID-19 pandemic; economic conditions generally; supply chain challenges, including labor shortages; our ability to align our investments in capital assets, including equipment, and warehouses, to our customers’ demands; our ability to successfully integrate and realize anticipated synergies, cost savings and profit improvement opportunities with respect to acquired companies; unsuccessful acquisitions or other risks or developments that adversely affect our financial condition and results; our ability to develop and implement suitable information technology systems and prevent failures in or breaches of such systems; our indebtedness; our ability to raise debt and equity capital; litigation; labor matters, including our ability to manage our subcontractors, and risks associated with labor disputes at our customers’ facilities and efforts by labor organizations to organize our employees; risks associated with defined benefit plans for our current and former employees; our inability to attract or retain necessary talent; the increased costs associated with labor; fluctuations in currency exchange rates; fluctuations in fixed and floating interest rates; seasonal fluctuations; issues related to our intellectual property rights; governmental regulation, including environmental laws, trade compliance laws, as well as changes in international trade policies and tax regimes; governmental or political actions, including the United Kingdom’s exit from the European Union; natural disasters, terrorist attacks or similar incidents, including the conflict between Russia and Ukraine; a material disruption of the company’s operations; the inability to achieve the level of revenue growth, cash generation, cost savings, improvement in profitability and margins, fiscal discipline, or strengthening of competitiveness and operations anticipated or targeted; the impact of potential cyber-attacks and information technology or data security breaches; the inability to implement technology initiatives successfully; our ability to achieve our Environmental, Social and Governance goals; and a determination by the IRS that the distribution or certain related spin-off transactions should be treated as taxable transactions.

All forward-looking statements set forth in this release are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to or effects on us or our business or operations. Forward-looking statements set forth in this release speak only as of the date hereof, and we do not undertake any obligation to update forward-looking statements to reflect subsequent events or circumstances, changes in expectations or the occurrence of unanticipated events, except to the extent required by law.

Investor Contact

Chris Jordan
+1 (203) 536 8493
[email protected]

Media Contact

Matthew Schmidt
+1 (203) 307-2809
[email protected]

GXO Logistics, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)

	Three Months Ended March 31,
(Dollars in millions, shares in thousands, except per share amounts)		2023			2022
Revenue	$	2,323		$	2,083
Direct operating expense		1,906			1,748
Selling, general and administrative expense		258			190
Depreciation and amortization expense		83			76
Transaction and integration costs		13			19
Restructuring costs and other		21			13
Operating income		42			37
Other income, net		—			16
Interest expense, net		(13	)		(4	)
Income before income taxes		29			49
Income tax expense		(3	)		(11	)
Net income		26			38
Net income attributable to noncontrolling interests		(1	)		(1	)
Net income attributable to GXO	$	25		$	37

Earnings per share data
Basic	$	0.21		$	0.32
Diluted	$	0.21		$	0.32
Weighted-average common shares outstanding
Basic		118,781			114,731
Diluted		119,231			115,569

GXO Logistics, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)

	March 31,			December 31,
(Dollars in millions, shares in thousands, except per share amounts)		2023			2022
ASSETS
Current assets
Cash and cash equivalents	$	426		$	495
Accounts receivable, net of allowance of $11 and $12		1,605			1,647
Other current assets		280			286
Total current assets		2,311			2,428
Long-term assets
Property and equipment, net of accumulated depreciation of $1,361 and $1,297		964			960
Operating lease assets		2,168			2,227
Goodwill		2,765			2,728
Intangible assets, net of accumulated amortization of $477 and $456		555			570
Other long-term assets		327			306
Total long-term assets		6,779			6,791
Total assets	$	9,090		$	9,219
LIABILITIES AND EQUITY
Current liabilities
Accounts payable	$	652		$	717
Accrued expenses		908			995
Current debt		84			67
Current operating lease liabilities		568			560
Other current liabilities		209			193
Total current liabilities		2,421			2,532
Long-term liabilities
Long-term debt		1,697			1,739
Long-term operating lease liabilities		1,800			1,853
Other long-term liabilities		453			417
Total long-term liabilities		3,950			4,009
Commitments and contingencies
Stockholders’ Equity
Common Stock, $0.01 par value per share; 300,000 shares authorized, 118,889 and 118,728 issued and outstanding		1			1
Preferred Stock, $0.01 par value per share; 10,000 shares authorized, none issued and outstanding		—			—
Additional paid-in capital		2,580			2,575
Retained earnings		348			323
Accumulated other comprehensive loss		(244	)		(254	)
Total stockholders’ equity before noncontrolling interests		2,685			2,645
Noncontrolling interests		34			33
Total equity		2,719			2,678
Total liabilities and equity	$	9,090		$	9,219

GXO Logistics, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)

	Three Months Ended March 31,
(In millions)		2023			2022
Cash flows from operating activities:
Net income	$	26		$	38
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization expense		83			76
Stock-based compensation expense		9			6
Deferred tax expense (benefit)		(7	)		3
Other		9			4
Changes in operating assets and liabilities
Accounts receivable		57			(33	)
Other assets		11			(7	)
Accounts payable		(49	)		(39	)
Accrued expenses and other liabilities		(100	)		(2	)
Net cash provided by operating activities		39			46
Cash flows from investing activities:
Capital expenditures		(91	)		(65	)
Proceeds from sales of property and equipment		9			3
Other		—			18
Net cash used in investing activities		(82	)		(44	)
Cash flows from financing activities:
Repayments of debt, net		(21	)		—
Repayments of finance lease obligations		(8	)		(9	)
Taxes paid related to stock-based compensation awards		(4	)		(11	)
Other		4			2
Net cash used in financing activities		(29	)		(18	)
Effect of exchange rates on cash and cash equivalents		3			(5	)
Net decrease in cash and cash equivalents		(69	)		(21	)
Cash and cash equivalents, beginning of period		495			333
Cash and cash equivalents, end of period	$	426		$	312

GXO Logistics, Inc.
Key Data
Disaggregation of Revenue
(Unaudited)

Revenue disaggregated by geographical area was as follows:

	Three Months Ended March 31,
(In millions)	2023		2022
United Kingdom	$	844	$	704
United States		714		681
France		202		176
Netherlands		196		170
Spain		127		120
Italy		88		82
Other		152		150
Total	$	2,323	$	2,083

The Company’s Revenue can also be disaggregated by various verticals, reflecting the customer’s principal industry. Revenue disaggregated by industries was as follows:

	Three Months Ended March 31,
(In millions)	2023		2022
Omnichannel retail	$	968	$	825
Technology and consumer electronics		366		305
Food and beverage		307		338
Industrial and manufacturing		272		263
Consumer packaged goods		253		213
Other		157		139
Total	$	2,323	$	2,083

GXO Logistics, Inc.
Reconciliation of Net Income to Adjusted EBITDA and Adjusted EBITA
and Adjusted EBITDA and Adjusted EBITA Margins
(Unaudited)

	Three Months Ended March 31,						Year Ended		Trailing Twelve Months Ended
(In millions)		2023			2022		December 31, 2022		March 31, 2023
Net income attributable to GXO	$	25		$	37		$	197	$	185
Net income attributable to noncontrolling interest		1			1			3		3
Net income	$	26		$	38		$	200	$	188
Interest expense, net		13			4			29		38
Income tax expense		3			11			64		56
Depreciation and amortization expense		83			76			329		336
Transaction and integration costs		13			19			61		55
Restructuring costs and other		21			13			32		40
Unrealized (gain) loss on foreign currency options and other		(1	)		(6	)		13		18
Adjusted EBITDA⁽¹⁾	$	158		$	155		$	728	$	731

Less: Depreciation		66			62			261		265
Adjusted EBITA⁽¹⁾	$	92		$	93		$	467	$	466

Revenue	$	2,323		$	2,083
Adjusted EBITDA margin⁽¹⁾⁽²⁾		6.8	%		7.4	%
Adjusted EBITA margin⁽¹⁾⁽³⁾		4.0	%		4.5	%

(1) See the “Non-GAAP Financial Measures” section of this press release.
(2) Adjusted EBITDA margin is calculated as adjusted EBITDA divided by revenue.
(3) Adjusted EBITA margin is calculated as adjusted EBITA divided by revenue.

GXO Logistics, Inc.
Reconciliation of Net Income to Adjusted Net Income
and Adjusted Earnings Per Share
(Unaudited)

	Three Months Ended March 31,
(Dollars in millions, shares in thousands, except per share amounts)		2023			2022
Net income attributable to GXO	$	25		$	37
Amortization expense		17			14
Transaction and integration costs		13			19
Restructuring costs and other		21			13
Unrealized gain on foreign currency options		(1	)		(6	)
Income tax associated with the adjustments above⁽¹⁾		(11	)		(9	)
Discrete tax benefit⁽²⁾		(5	)		—
Adjusted net income attributable to GXO⁽³⁾	$	59		$	68

Adjusted basic earnings per share⁽³⁾	$	0.50		$	0.59
Adjusted diluted earnings per share⁽³⁾	$	0.49		$	0.59

Weighted-average common shares outstanding
Basic		118,781			114,731
Diluted		119,231			115,569

(1) The income tax rate applied to items is based on the GAAP annual effective tax rate.
(2) Discrete tax benefit from the release of valuation allowances.
(3) See the “Non-GAAP Financial Measures” section of this press release.

GXO Logistics, Inc.
Other Reconciliations
(Unaudited)

Reconciliation of Cash Flows from Operating Activities to Free Cash Flow:

	Three Months Ended March 31,
(In millions)		2023			2022
Net cash provided by operating activities	$	39		$	46
Payment for purchases of property and equipment		(91	)		(65	)
Proceeds from sale of property and equipment		9			3
Free Cash Flow⁽¹⁾	$	(43	)	$	(16	)

(1) See the “Non-GAAP Financial Measures” section of this press release.
The Company calculates free cash flow conversion as free cash flow divided by adjusted EBITDA, expressed as a ratio.

Reconciliation of Revenue to Organic Revenue:

	Three Months Ended March 31,
(In millions)		2023			2022
Revenue	$	2,323		$	2,083
Revenue from acquired business		(224	)		—
Revenue from deconsolidation		—			(20	)
Foreign exchange rates		100			—
Organic revenue⁽¹⁾	$	2,199		$	2,063

Revenue growth⁽²⁾		11.5	%
Organic revenue growth⁽¹⁾⁽³⁾		6.6	%

(1) See the “Non-GAAP Financial Measures” section of this press release.
(2) Revenue growth is calculated as the change in the period-over-period revenue divided by the prior period, expressed as a percentage.
(3) Organic revenue growth is calculated as the change in the period-over-period organic revenue divided by the prior period, expressed as a percentage.

GXO Logistics, Inc.
Liquidity Reconciliations
(Unaudited)

Reconciliation of Total Debt and Net Debt:

(In millions)	March 31, 2023
Current debt	$	84
Long-term debt		1,697
Total debt	$	1,781
Less: Cash and cash equivalents		(426	)
Net debt⁽¹⁾	$	1,355

(1) See the “Non-GAAP Financial Measures” section of this press release.

Reconciliation of Total debt to Net income attributable to GXO Ratio:

(In millions)	March 31, 2023
Total debt	$	1,781
Trailing twelve months net income attributable to GXO	$	185
Debt to net income attributable to GXO ratio	9.6x

Reconciliation of Net Leverage Ratio:

(In millions)	March 31, 2023
Net debt	$	1,355
Trailing twelve months adjusted EBITDA⁽¹⁾	$	731
Net leverage ratio⁽¹⁾	1.9x

(1) See the “Non-GAAP Financial Measures” section of this press release.

GXO Logistics, Inc.
Return on Invested Capital
(Unaudited)

Adjusted EBITA, net of income taxes paid

	Three Months Ended March 31,					Year Ended			Trailing Twelve Months Ended
(In millions)	2023		2022			December 31, 2022			March 31, 2023
Adjusted EBITA⁽¹⁾	$	92	$	93		$	467		$	466
Less: Cash paid for income taxes		—		(5	)		(111	)		(106	)
Adjusted EBITA⁽¹⁾, net of income taxes paid	$	92	$	88		$	356		$	360

(1) See the “Non-GAAP Financial Measures” section of this press release.

Operating Return on Invested Capital

	March 31,
(In millions)		2023			2022		Average
Selected Assets:
Accounts receivable, net	$	1,605		$	1,492		$	1,549
Other current assets		280			226			253
Property and equipment, net		964			833			899
Selected Liabilities:
Accounts payable	$	(652	)	$	(549	)	$	(601	)
Accrued expenses		(908	)		(940	)		(924	)
Other current liabilities		(209	)		(146	)		(178	)
Invested Capital	$	1,080		$	916		$	998

Ratio of Return on Invested Capital⁽¹⁾⁽²⁾								36.1	%

(1) The ratio of return on invested capital is calculated as trailing twelve months adjusted EBITA, net of income taxes paid, divided by invested capital.
(2) See the “Non-GAAP Financial Measures” section of this press release.

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Car as a Connected Living Ecosystem worth USD 1.5 trillion by 2035 | MarketsandMarkets

Published

1 hour ago

May 9, 2024

CISION (PR Newswire)

CHICAGO, May 9, 2024 /PRNewswire/ — Car as a Connected Living Ecosystem is estimated to grow from USD 8 billion in 2023 to more than USD 1.5 trillion by 2035 at the CAGR of 54.5%. according to a new report by MarketsandMarkets. Factors such as technology developments and advanced connectivity levels across automotive OEMs and customer perceptions & service expectations from connected cars are driving the growth of the car as a connected living ecosystem market. Customers, especially the GenZ customers and customers paying a premium for the advanced connectivity, expect to see a range of connected features such as advanced safety, remote vehicle features, security, car-home connectivity, and EV & energy management services. Almost all OEMs such as Mercedes Benz, BMW, Stellantis, VW and others are aggressively focused on the connected car market to earn new revenue streams.

Download an Illustrative overview: https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=32781103
Car as a Connected Living Ecosystem Scope:
Report Coverage
Details
Market Revenue in 2023
USD 8 billion
Estimated Value by 2035
USD 1.5 trillion
Growth Rate
Poised to grow at a CAGR of 54.5%
Market Size Available for
2023–2035
Forecast Period
2024–2035
Forecast Units
Value (USD Billion – Trillion)
Report Coverage
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered
Connected Living (through the car) Market by Segments – In-car connectivity, Connected Energy, Connected Aftermarket, Connected Health, and other
Geographies Covered
Global
Report Highlights
Updated financial information / product portfolio of players
Key Market Opportunities
Greenfield Market
Key Market Drivers
Advanced Technologies & Customer Propensity to Adopt
The car is emerging as the new smartphone.
Connected cars have moved beyond being data generating machines for fleet management and safety compliance. Connected cars have emerged as the golden goose for automakers, with its ability to drive continuous revenues across lifetime. The cars are capable of performing almost any function that is offered by our smartphones today and even more, offering comprehensive connected living solutions at the touch of a button. The cars can remotely unlock, drive and navigate themselves, save themselves from potential hazards and security threats, manage energy requirements, offer in-car marketplaces with integrated payment platforms, entertain passengers, take care of their health and homes, manage work diaries, civil responsibilities, and can integrate the physical and virtual realm.
The In-Car Connectivity segment is expected to dominate the digital connected living services market.
There services are expected to be available to customers at an annual cost of $1,600 by 2035. Over the next decade, OEMs must identify their connectivity and subscription revenue strategy – in-car experience is expected to earn the lion’s share of revenue at 87% with health, energy, and aftermarket developing as formidable segments. However, the key challenge is to strike the right balance between subscription costs and customer willingness to pay.
The wider ecosystem of connected car offers further growth potential.
OEMs stand to gain further through developing competencies in the wider automotive ecosystem such as energy management services and connected insurance. Tesla, Hyundai, GM, and Ford are not just selling EVs but the entire spectrum of services such as renewable energy generation, energy storage, and V2G technology, required for energy independence. Tesla, GM, and JLR are leveraging connected vehicle data to offer connected insurance services underwritten by insurance companies. A third revenue stream is data monetization partnerships with various stakeholders such as cities, automotive workshops, and others. Several other revenue streams could emerge from a single connected car.
From being able to communicate with drivers, offering AR based driver assist and autonomous driving systems and automatically managed maintenance systems, to managing energy services, insurance and healthcare through the car’s ecosystem. 6G connectivity, V2X technology, and VR repair and maintenance will change the way customers experience the car.
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Key Market Players of Car as a Connected Living Ecosystem Industry:
Major players in the Car as a Connected Living include Mercedez Benz (Germany), BMW (Germany), VW (Germany), Stellantis (Netherlands), Hyundai (South Korea), Toyota (Japan), GM (USA), Ford (USA), Nio (China), Xpeng (China). All OEMs offer vary levels of connectivity solutions through the car.
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Car as a Connected Living Ecosystem Industry Recent Developments:
In January 2024, Mercedes Benz unveiled its AI powered MBUX Virtual Assistant.In January 2024, Stellantis acquired Artificial Intelligence Technologies and IP from CloudMade for advanced connectivity features.In January 2024, GM introduced OnStar connectivity features in Saudi Arabia.Car as a Connected Living Ecosystem Size – Key Benefits of Buying the Report:
The report will help the market leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the connected living solutions.This report will help stakeholders understand the competitive landscape and gain more insights to position their businesses better and plan suitable go-to-market strategies.The report also helps stakeholders understand the pulse of the market and provides them with information on key market drivers, restraints, challenges, and opportunities. This report provides insights on:
Analysis of key drivers (advanced technologies, customer propensity to adopt), restraints (cost of technology development), challenges (undertaking strategic partnerships), and opportunities (first mover advantage).Product Development/Innovation: Detailed insights on upcoming technologies, research & development activities, and new product & service launches in the connected living space.Market Development: Comprehensive information about lucrative markets – the report analyses the future of connected living solutions through the car.Market Diversification: Exhaustive information about new products & services, recent developments, and investments in the connected living space.Competitive Assessment: Competitor benchmarking to understand ket industry connected living service offerings.Get access to the latest updates on Car as a Connected Living Ecosystem Industry Growth
Related Reports:
Connected Car Market – Global Forecast to 2026
India Connected Car Market – Forecast to 2025
Connected Rail Market – Global forecast to 2027
Connected Motorcycle Market – Global Forecast to 2027
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Artificial Intelligence

Infosys and Formula E Strike New Partnership to Enable Next-Gen Fan Experiences Powered by AI and Digital Innovations

Published

1 hour ago

May 9, 2024

CISION (PR Newswire)

This multi-year technology association will provide in-race insights, fan engagement, and sustainability solutions for the world’s first all-electric motorsport
BENGALURU, India, May 9, 2024 /PRNewswire/ — Infosys (NSE : INFY), (BSE: INFY), (NYSE: INFY), a global leader in next-generation digital services and consulting, today announced a strategic three-year partnership with the ABB FIA Formula E World Championship, the global motorsport championship for electric cars, as its official Digital Innovation Partner. Through this collaboration, Infosys will provide in-race analytics, unlock fan engagement experiences, and enhance sustainability reporting and tracking for the Formula E championship.

The partnership between Infosys and Formula E will focus on three core areas: fan growth, technology innovation, and continued environmental stewardship.
Creating a new Fan Customer Data Platform: With the aim of engaging 500 million fans by 2030, Infosys will help build an AI-powered Fan Customer Data Platform for Formula E to unlock deep fan engagement and personalization opportunities, allowing Formula E to better serve its growing global fan base.In-race insights and Driver Statistics: Leveraging Infosys Topaz, an AI-first suite of offerings using generative AI technologies, the collaboration aims to provide real-time insights and real time driver statistics during races, enhancing the overall viewing experience for fans.An enhanced sustainability data management tool: With the objective of playing a pivotal role in supporting Formula E’s carbon reduction target of 45% by 2030, Infosys will work to transform the sport’s carbon reporting capabilities by using AI to improve accuracy, reliability, and traceability of data collection, and setting new standards in sustainability assessments for the championship.Jeff Dodds, Chief Executive Officer, Formula E, said, “Infosys’ expertise in cutting-edge technologies makes them the ideal partner to help us drive the future of electric motorsport. We are excited to work with them to deliver exceptional experiences for our global fan base and further strengthen Formula E’s position as a leader in sustainable, digital-first sports. Infosys’ commitment to sustainability and innovation aligns perfectly with our vision, and we are confident that this collaboration will unlock new avenues in our key focus areas.”
Sumit Virmani, EVP & Global Chief Marketing Officer, Infosys, said, “Infosys has built and nurtured several strategic sports collaborations globally. We are now delighted to partner with Formula E, a visionary motorsport series, that shares our passion for sustainability and AI-led innovation. This strategic collaboration will showcase our AI, digital, and analytics prowess, elevating the fan experience, while enhancing Formula E’s sustainability goals. Together, we aim to redefine the possibilities in electric motorsport.”
As a brand, Infosys has been successfully associated with the global tennis ecosystem for nine years through strong partnerships with Roland-Garros, Australian Open, ATP, and the International Tennis Hall of Fame. In addition, we continue to accelerate brand momentum through our collaboration with the Madison Square Garden, including key MSG properties New York Knicks, New York Rangers, and the Madison Square Garden Arena. Through all these partnerships, Infosys has successfully demonstrated how it brings to life the benefits of AI into sports.
About Formula E and the ABB FIA Formula E World Championship
As the world’s first all-electric FIA World Championship and the only sport certified net zero carbon since inception, the ABB FIA Formula E World Championship brings dramatic racing to the heart of some of the world’s most iconic cities providing an elite motorsport platform for the world’s leading automotive manufacturers to accelerate electric vehicle innovation.
The Formula E network of teams, manufacturers, partners, broadcasters, and host cities are united by a passion for the sport and belief in its potential to accelerate sustainable human progress and create a better future for people and planet.
www.FIAFormulaE.com
About Infosys
Infosys is a global leader in next-generation digital services and consulting. Over 300,000 of our people work to amplify human potential and create the next opportunity for people, businesses and communities. We enable clients in more than 56 countries to navigate their digital transformation. With over four decades of experience in managing the systems and workings of global enterprises, we expertly steer clients, as they navigate their digital transformation powered by cloud and AI. We enable them with an AI-first core, empower the business with agile digital at scale and drive continuous improvement with always-on learning through the transfer of digital skills, expertise, and ideas from our innovation ecosystem. We are deeply committed to being a well-governed, environmentally sustainable organization where diverse talent thrives in an inclusive workplace.
Visit www.infosys.com to see how Infosys (NSE, BSE, NYSE: INFY) can help your enterprise navigate your next.
Safe Harbor
Certain statements in this release concerning our future growth prospects, or our future financial or operating performance, are forward-looking statements intended to qualify for the ‘safe harbor’ under the Private Securities Litigation Reform Act of 1995, which involve a number of risks and uncertainties that could cause actual results or outcomes to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding the execution of our business strategy, our ability to attract and retain personnel, our transition to hybrid work model, economic uncertainties, technological innovations such as Generative AI, the complex and evolving regulatory landscape including immigration regulation changes, our ESG vision, our capital allocation policy and expectations concerning our market position, future operations, margins, profitability, liquidity, capital resources, our corporate actions including acquisitions, and cybersecurity matters. Important factors that may cause actual results or outcomes to differ from those implied by the forward-looking statements are discussed in more detail in our US Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2023. These filings are available at www.sec.gov. Infosys may, from time to time, make additional written and oral forward-looking statements, including statements contained in the Company’s filings with the Securities and Exchange Commission and our reports to shareholders. The Company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the Company unless it is required by law.
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Artificial Intelligence

Latest VIPRE Security Group Email Threat Trends Research Exposes Global Phishing and Malware Threat Landscape

Published

3 hours ago

May 9, 2024

CISION (PR Newswire)

The US, UK, Ireland, and Japan emerge as the main source of spam; manufacturing, government, and IT sectors are most victimized; Pikabot top malware family
LONDON, May 9, 2024 /PRNewswire/ — VIPRE Security Group, a global leader and award-winning cybersecurity, privacy, and data protection company, today released its Q1 2024 Email Threat Trends report, based on an analysis of 1.8 billion emails. The findings reveal the evolving landscape of email-based threats and emerging tactics malicious actors are employing.

The US, UK, Ireland, and Japan top the spam sources listThe report identifies the US as the top source of spam emails globally, followed by the U.K., Ireland, and Japan. The US, UK, and Canada are the top three countries most subjected to email-based attacks.
Attackers aim at the manufacturing sectorThe manufacturing, government, and IT sectors are the most victimized by malicious actors. In Q1 2024, the manufacturing sector suffered 43% of email-based attacks, with the government (15%) and IT (11%) trailing well behind. This is a change from Q1 2023, when attackers targeted the financial (25%), healthcare (22%), and education (15%) sectors most often.
Scams surpassing phishing This research warns that ‘scams’ within the spam category are growing in popularity among cybercriminals, overtaking phishing emails in the first quarter of 2024.
There’s been a notable increase in phishing emails masquerading as communications from Human Resources, falsely claiming to relate to employee benefits, compensation, or insurance within a company. These emails contain malicious attachments in .html or .pdf formats, featuring phishing QR codes that redirect recipients to phishing sites upon scanning.
New phishing trends and techniquesIn email phishing campaigns, 75% of emails leverage links, 24% favor attachments, and 1% use QR codes. Attackers are employing links in phishing emails for URL redirection (54%), compromised websites (22%), and newly created domains (15%).
Emerging tactics employed by cybercriminals to execute phishing attacks include the use of .ics calendar invite and .rtf attachment file formats to trick recipients into opening malicious content.
Malspam links and top malware familyEncouraged by the success of password-oriented phishing emails that use links, cybercriminals are opting for malicious links in malspam emails instead of attachments. Malware is increasingly being hidden in cloud storage platforms such as Google Drive. The use of malware-based emails employing attachments has increased to 22% in Q1 2024, from only 3% in Q1 2023.
Due to the void left by the dismantled Qakbot malware, Pikabot has emerged as the top malware family, with IceID a distant second.
Exploiting software vulnerabilitiesCriminals are exploiting a web application vulnerability, most notably Reflected Cross-Site Scripting (XSS), focusing on the tag attribute “href”, to circumvent detection by using a variety of tactics such as images as the entire email content, encoding URLs, and directing the victim through multiple URLs.
Malicious actors are also finding success with thread hijacking of NTLM (NT LAN Manager), a security protocol used by Microsoft Windows operating systems for authentication. By hijacking the authentication thread, attackers extract NTLM challenge-response hashes from legitimate SMB (Server Message Block) sessions, to enable them to impersonate authenticated users and gain unauthorized access.
“Criminals are using email with success to scam, infiltrate networks, and unleash malicious payloads,” warns Usman Choudhary, Chief Product and Technology Officer, VIPRE Security Group. “We’re witnessing bad actors relentlessly exploiting human vulnerabilities and software flaws, circumventing email gateways and security measures with alarming precision. Robust email and endpoint defenses, coupled with a vigilant human frontline, remain our strongest defense against these unyielding attacks.”
To read the full report, click here: VIPRE’s Email Threat Trends Report: Q1 2024.
VIPRE leverages its unique understanding of email security to equip organizations with the information they need to protect themselves. This report is based on proprietary intelligence gleaned from round-the-clock vigilance of the cybersecurity landscape.
About VIPRE Security Group VIPRE Security Group, part of Ziff Davis, Inc., is a leading provider of internet security solutions purpose-built to protect businesses, solution providers, and home users from costly and malicious cyber threats. With over 25 years of industry expertise, VIPRE is one of the world’s largest threat intelligence clouds, delivering exceptional protection against today’s most aggressive online threats. Our award-winning software portfolio includes next-generation antivirus endpoint cloud solutions, advanced email security products, along with threat intelligence for real-time malware analysis, and security awareness training for compliance and risk management. VIPRE solutions deliver easy-to-use, comprehensive layered defense through cloud-based and server security, with mobile interfaces that enable instant threat response. VIPRE is a proud Advanced Technology Partner of Amazon Web Services operating globally across North America and Europe.
The group operates under various brands, including VIPRE®, StrongVPN®, IPVanish®, Inspired eLearning®, Livedrive®, and SugarSync®. www.VIPRE.com

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