New leadership focused on strategic path to profitability supported by recent capital raise and organizational streamlining
Early 2024 Leadership Transition
In
“I believe there is tremendous potential in Getaround’s business model,” said Mudrick. “With proper leadership, adequate funding and thoughtful capital allocation, we should be able to scale the platform
“I joined
2023 Full Year Business Highlights
Iniguez went on to say, “Getaround has a tremendous opportunity ahead to increase its market share and deliver a truly differentiated service offering. At the same time, there are multiple challenges to achieving our full potential – some are specific to our company, and some relate to evolving macro trends. The company has taken critical steps to address these challenges head on which we expect to accelerate our path to profitability.”
-
Restructured operations to reduce Total Operating Expenses by more than
$25 million on an annualized basis as of the fourth quarter 2023, excluding the HyreCar assets acquired in May - Acquired HyreCar assets to build on our expanding Uber relationship and solidify our leadership position in gig carsharing
- Launched the next generation of our proprietary AI-based TrustScore model and announced a new relationship with TransUnion to reduce cost of claims and insurance
On
2023 Full Year Financial Highlights
“In May, 2023 we completed the acquisition of HyreCar assets to expand our gig carsharing business. This acquisition was the primary driver of our 2023 revenue growth,” said
Alderman went on to say, “In 2023 we showed significant improvement in our Adjusted EBITDA loss driven by our continued focus on cost optimization measures. Throughout the year we also recognized significant benefits from the business restructuring announced in February 2023.”
-
Total Revenues of
$72.7 million , an increase of 22% year-over-year -
Gross Booking Value of
$204 million , an increase of 16% year-over-year - Gross margin from Service revenue was 85%, consistent with the prior year
- Trip Contribution Margin was 40%, down from 47% the prior year
-
GAAP Net Loss of
$113.9 million , a 16% improvement from the same period last year -
Adjusted EBITDA loss of
$72.0 million , a 20% improvement from the same period last year
About
Offering a digital experience,
Forward-Looking Statements
This press release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995. In particular, the statements contained in the quotations of our Chief Executive Officer, Chairman and Chief Financial Officer with respect to expectations regarding the Company’s opportunities to increase its market share and accelerate its path to profitability, the Company’s potential for success, and the Company’s expectation the additional trip support costs it experienced in 2023 will not continue in 2024 may constitute forward-looking statements. Forward-looking statements can be identified by the fact that they do not relate strictly to historical facts and generally contain words such as "believes”, "expects”, "may”, "will”, "should”, "seeks”, "approximately”, "intends”, "plans”, "estimates”, "anticipates”, and other expressions that are predictions of or indicate future events. Although the forward-looking statements contained in this press release are based upon information available at the time the statements are made and reflect management's good faith beliefs, forward-looking statements inherently involve known and unknown risks, uncertainties and other factors, including the dilutive effect of future financings, which may cause the actual results, performance or achievements to differ materially from anticipated future results.
These risks and uncertainties include those described in our filings which we make with the
Consolidated Balance Sheet | ||||||
(In thousands, except share and per share data) |
2023 |
2022 |
||||
Assets | ||||||
Current Assets | ||||||
Cash and cash equivalents | $ |
15,624 |
$ |
64,294 |
||
Restricted cash |
— |
3,600 |
||||
Accounts receivable, net |
853 |
533 |
||||
Prepaid expenses and other current assets |
10,131 |
6,084 |
||||
Total Current Assets | $ |
26,608 |
$ |
74,511 |
||
Property and equipment, net |
8,504 |
10,451 |
||||
Operating lease right-of-use assets, net |
12,162 |
13,284 |
||||
|
95,869 |
92,728 |
||||
Intangible assets, net |
13,358 |
11,028 |
||||
Deferred tax assets |
— |
46 |
||||
Other assets |
4,635 |
3,371 |
||||
Total Assets | $ |
161,136 |
$ |
205,419 |
||
Liabilities and Stockholders’ Equity | ||||||
Current Liabilities | ||||||
Accounts payable | $ |
15,552 |
$ |
3,652 |
||
Accrued host payments and insurance fees |
13,192 |
11,780 |
||||
Operating lease liabilities, current |
2,268 |
1,923 |
||||
Notes payable, current |
19,904 |
1,211 |
||||
Warrant commitment liability |
— |
320 |
||||
Other accrued liabilities |
48,107 |
37,360 |
||||
Deferred revenue |
684 |
698 |
||||
Total Current Liabilities | $ |
99,707 |
$ |
56,944 |
||
Notes payable, net of current portion |
2,122 |
3,198 |
||||
Convertible notes payable ( |
40,469 |
56,842 |
||||
Operating lease liabilities (net of current portion) |
15,487 |
17,715 |
||||
Deferred tax liabilities |
212 |
973 |
||||
Warrant liability |
20 |
247 |
||||
Total Liabilities | $ |
158,017 |
$ |
135,919 |
||
Commitments and contingencies (Note 13) | ||||||
Stockholders’ Equity | ||||||
Common stock, |
$ |
9 |
$ |
9 |
||
Additional paid-in capital |
859,163 |
845,888 |
||||
Stockholder notes |
(8,284) |
(8,284) |
||||
Accumulated deficit |
(875,955) |
(762,009) |
||||
Accumulated other comprehensive (loss) income |
28,186 |
(6,104) |
||||
Total Stockholders’ Equity | $ |
3,119 |
$ |
69,500 |
||
Total Liabilities and Stockholders’ Equity | $ |
161,136 |
$ |
205,419 |
||
Consolidated Statements of Operations and Comprehensive Loss | ||||||
(In thousands, except per share data) |
Year ended 2023 |
Year ended 2022 |
||||
Service revenue | $ |
71,152 |
$ |
58,108 |
||
Lease revenue |
1,528 |
1,347 |
||||
Total Revenues | $ |
72,680 |
$ |
59,455 |
||
Costs and Expenses | ||||||
Cost of revenue (exclusive of amortization and depreciation shown separately below): |
||||||
Service | $ |
6,660 |
$ |
5,445 |
||
Lease |
143 |
126 |
||||
Sales and marketing |
18,539 |
34,525 |
||||
Operations and support |
65,487 |
56,634 |
||||
Technology and product development |
16,051 |
24,677 |
||||
General and administrative |
51,150 |
58,800 |
||||
Depreciation and amortization |
14,080 |
10,141 |
||||
Transaction costs |
— |
26,807 |
||||
Impairment loss on goodwill |
— |
23,269 |
||||
Total Operating Expenses | $ |
172,110 |
$ |
240,424 |
||
Loss from Operations | $ |
(99,430) |
$ |
(180,969) |
||
Other Income (Expense) | ||||||
Convertible promissory note and note payable fair value adjustment |
(17,026) |
93,029 |
||||
Warrant liability fair value adjustment |
266 |
(31,749) |
||||
Interest income (expense), net |
481 |
(14,181) |
||||
Other income (expense), net |
974 |
(2,833) |
||||
Total Other Income (Expense) | $ |
(15,305) |
$ |
44,266 |
||
Loss before Benefit for Income Taxes | $ |
(114,735) |
$ |
(136,703) |
||
Income Tax Benefit |
(789) |
(638) |
||||
Net Loss | $ |
(113,946) |
$ |
(136,065) |
||
Change in fair value of the convertible instrument liability |
32,247 |
— |
||||
Foreign Currency Translation (Loss) Gain |
2,043 |
(8,387) |
||||
Comprehensive Loss | $ |
(79,656) |
$ |
(144,452) |
||
Net Loss Per Share Attributable to Stockholders: | ||||||
Basic |
(1.23) |
(5.00) |
||||
Diluted |
(1.23) |
(5.00) |
||||
Weighted average shares outstanding (Basic and Diluted) |
92,685 |
27,222 |
Non-GAAP Financial Measures
We use Trip Contribution Profit, Trip Contribution Margin and Adjusted EBITDA, each of which are non-GAAP financial measures, in conjunction with GAAP measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies, and to communicate with the Getaround Board concerning our financial performance. Our definitions of these non-GAAP financial measures may differ from definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar financial measures. Furthermore, these financial measures have certain limitations in that they do not include the impact of certain expenses that are reflected in our consolidated statements of operations that are necessary to run our business. Thus, these non-GAAP financial measures should be considered in addition to, and not as a substitute for, or in isolation from, financial measures prepared in accordance with GAAP.
We compensate for these limitations by providing a reconciliation of each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP. We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure, and to view the non-GAAP financial measures in conjunction with their most directly comparable GAAP financial measures.
Trip Contribution Profit and Trip Contribution Margin
Trip Contribution Profit is defined as our gross profit from Service revenue adjusted for: (i) cost of Service revenue, amortization and depreciation; and (ii) trip support costs, which consist of auto insurance expenses, claims support and customer relations costs. We define Trip Contribution Margin as Trip Contribution Profit divided by Service revenue recognized during the period presented. We believe these measures are leading indicators of our ability to achieve profitability and sustain or increase it over time. Trip Contribution Profit and Trip Contribution Margin are measures we use to understand and evaluate our operating performance and trends. Trip Contribution Profit and Trip Contribution Margin have generally increased over the periods as Service revenue increased while costs considered in the calculation of Trip Contribution Profit decreased as a percentage of Total Revenues.
The following tables present a reconciliation of Trip Contribution Profit from the most comparable GAAP measure, gross profit from Service revenue, for the periods presented:
(In thousands, except percentages) |
Year Ended 2023 |
Year Ended 2022 |
||||
Gross profit from Service revenue | $ |
60,640 |
$ |
49,679 |
||
Gross margin from Service revenue |
85% |
85% |
||||
Plus: Cost of Service revenue, amortization and depreciation |
3,852 |
2,984 |
||||
Less: Trip support costs |
(36,173) |
(25,259) |
||||
Trip Contribution Profit | $ |
28,319 |
$ |
27,404 |
||
Trip Contribution Margin |
40% |
47% |
||||
(In thousands, except percentages) |
Year Ended 2023 |
Year Ended 2022 |
||||
Service revenue | $ |
71,152 |
$ |
58,108 |
||
Less: Cost of Service revenue, net of amortization and depreciation |
(6,660) |
(5,445) |
||||
Less: Cost of Service revenue, amortization and depreciation |
(3,852) |
(2,984) |
||||
Gross profit from Service revenue | $ |
60,640 |
$ |
49,679 |
||
Gross margin from Service revenue |
85% |
85% |
Adjusted EBITDA
We define Adjusted EBITDA as net income adjusted for: (i) fair value adjustment of instruments carried at fair value; (ii) interest income (expense) and other income (expense); (iii) income tax provision/benefit; (iv) depreciation and amortization; (v) stock-based compensation expense; (vi) contingent compensation; (vii) transaction costs; (viii) impairment loss on goodwill and (ix) certain expenses determined to be incurred outside of the regular course of business which includes: certain restructuring costs, certain legal settlements and 2022 Business Combination-related legal fees, and investments in preparation of going public, initial implementation projects and transaction costs associated with proposed 2022 Business Combinations that are not subject to deferral. Adjusted EBITDA is a key performance measure that we use to assess operating performance and operating leverage of our business. As Adjusted EBITDA facilitates internal comparisons of our historical operating performance on a more consistent basis, we use this measure for business planning purposes. Accordingly, we believe that Adjusted EBITDA provides useful to investors and others in understanding and evaluating our results of operations in the same manner as our management and board of directors. The items excluded from our Adjusted EBITDA calculation are either non-cash in nature, or not driven by core results of recurring operations and therefore not predictable or recurring, rendering comparisons with prior periods and competitors less meaningful.
The following tables present a reconciliation of Adjusted EBITDA from the most comparable GAAP measure, Net Loss, for the periods presented:
(In thousands) |
Year Ended 2023 |
Year Ended
2022 |
||||
Net Loss | $ |
(113,946) |
$ |
(136,065) |
||
Plus: warrant liability, convertible promissory note and note payable fair value adjustment |
16,760 |
(61,280) |
||||
Plus: interest and other income (expense), net |
(1,455) |
17,014 |
||||
Minus: income tax benefit |
(789) |
(638) |
||||
Plus: depreciation and amortization |
14,080 |
10,141 |
||||
Plus: stock-based compensation |
12,578 |
9,127 |
||||
Plus: contingent compensation(1) |
— |
430 |
||||
Plus: transaction costs |
— |
26,807 |
||||
Plus: impairment loss on goodwill |
— |
23,269 |
||||
Plus: expense not incurred in the regular course of business(2) |
754 |
21,478 |
||||
Adjusted EBITDA | $ |
(72,018) |
$ |
(89,717) |
||
(1) Represents retention-based compensation related to a 2019 acquisition | ||||||
(2) Of the total amount of the adjustment in 2022, |
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Investors:
investors@getaround.com
Media:
press@getaround.com
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