Getaround Reports Second Quarter 2024 Financial Results
- Under new leadership team, Company raised capital, reduced expenses, and accelerated path to profitability
-
GAAP net loss of
$12.0 million , vs. a net loss of$30.3 million a year ago -
Adjusted EBITDA loss improved 49% to
$11.4 million from$22.4 million loss vs. same period 2023
“During the first half of 2024 we aggressively capitalized on opportunities to increase efficiency and right-size expenses,” said
Second Quarter 2024 Business Highlights
- Appointed three new independent board members who bring significant expertise in governance, strategy and product development
-
Appointed
Patricia Huerta , our Chief Accounting Officer, to the role of Interim Chief Financial Officer while restructuring our Finance and Accounting functions to rein in associated fixed expense -
Secured an additional
$50 million in financing
“In the second quarter we continued to take significant steps to reset our company leadership, business direction and operations,” said Huerta. “These changes are now in place and the benefits are reflected in our financial results, including positive trends related to Trip Contribution Margin and Adjusted EBITDA”.
Second Quarter 2024 Financial Highlights
-
Total revenues of
$18.6 million , flat compared to the year ago period -
Gross Booking Value of
$53.0 million , a decrease of 1% - Gross margin from Service Revenue expanded to 88%, an increase of 286 basis points year-over-year
- Trip Contribution Margin expanded to 53%, an increase of 980 basis points year over year
-
GAAP net loss of
$12.0 million , vs. a net loss of$30.3 million a year ago -
Adjusted EBITDA loss of
$11.4 million , vs. a$22.4 million loss a year ago
Conference Call Details
Company management will host a conference call and webcast today at
Additionally, participants may dial 1-844-512-2921 or 1-412-317-6671 to hear a telephone replay which will be available approximately three hours after the conference call ends until
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 and Interim Chief Financial Officer with respect to expectations regarding the Company’s competitive position in the carsharing space, improving margins and growing with positive unit economics, and positive trends related to Trip Contribution Margin and Adjusted EBITDA. 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) |
|
|
||||||
(Unaudited) | ||||||||
Assets | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ |
30,861 |
|
$ |
15,624 |
|
||
Accounts receivable, net |
731 |
|
853 |
|
||||
Prepaid expenses and other current assets |
6,707 |
|
10,131 |
|
||||
Total Current Assets | $ |
38,299 |
|
$ |
26,608 |
|
||
Property and equipment, net |
1,641 |
|
8,504 |
|
||||
Operating lease right-of-use assets, net |
1,270 |
|
12,162 |
|
||||
|
93,058 |
|
95,869 |
|
||||
Intangible assets, net |
8,469 |
|
13,358 |
|
||||
Other assets |
6,982 |
|
4,635 |
|
||||
Total Assets | $ |
149,719 |
|
$ |
161,136 |
|
||
Liabilities and Stockholders’ Equity (Deficit) | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ |
7,401 |
|
$ |
15,552 |
|
||
Accrued host payments and insurance fees |
19,630 |
|
13,192 |
|
||||
Operating lease liabilities, current |
181 |
|
2,268 |
|
||||
Notes payable, current ( |
2,418 |
|
19,904 |
|
||||
Other accrued liabilities |
43,062 |
|
48,107 |
|
||||
Deferred revenue |
2,634 |
|
684 |
|
||||
Total Current Liabilities | $ |
75,326 |
|
$ |
99,707 |
|
||
Notes payable ( |
52,078 |
|
2,122 |
|
||||
Convertible notes payable ( |
54,850 |
|
40,469 |
|
||||
Operating lease liabilities (net of current portion) |
1,089 |
|
15,487 |
|
||||
Deferred tax liabilities |
262 |
|
212 |
|
||||
Warrant liability |
30 |
|
20 |
|
||||
Total Liabilities | $ |
183,635 |
|
$ |
158,017 |
|
||
Stockholders’ Equity (Deficit) | ||||||||
Common stock, |
$ |
10 |
|
$ |
9 |
|
||
Additional paid-in capital |
866,574 |
|
859,163 |
|
||||
Stockholder notes |
(8,284 |
) |
(8,284 |
) |
||||
Accumulated deficit |
(918,945 |
) |
(875,955 |
) |
||||
Accumulated other comprehensive income |
26,729 |
|
28,186 |
|
||||
Total Stockholders’ Equity (Deficit) | $ |
(33,916 |
) |
$ |
3,119 |
|
||
Total Liabilities and Stockholders’ Equity (Deficit) | $ |
149,719 |
|
$ |
161,136 |
|
Consolidated Statements of Operations and Comprehensive Loss | ||||||||||||||||
Three Months Ended |
|
|
Six Months Ended |
|||||||||||||
(In thousands, except per share data) (Unaudited) |
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
||||||
Service revenue | $ |
18,307 |
|
$ |
18,224 |
|
$ |
35,113 |
|
$ |
29,423 |
|
||||
Lease revenue |
277 |
|
396 |
|
627 |
|
717 |
|
||||||||
Total Revenues | $ |
18,584 |
|
$ |
18,620 |
|
$ |
35,740 |
|
$ |
30,140 |
|
||||
Costs and Expenses | ||||||||||||||||
Cost of revenue (exclusive of amortization and depreciation shown separately below): |
||||||||||||||||
Service | $ |
1,660 |
|
$ |
1,730 |
|
$ |
3,576 |
|
$ |
3,075 |
|
||||
Lease |
14 |
|
36 |
|
54 |
|
75 |
|
||||||||
Sales and marketing |
5,736 |
|
7,728 |
|
8,968 |
|
11,368 |
|
||||||||
Operations and support |
12,680 |
|
16,024 |
|
27,290 |
|
28,126 |
|
||||||||
Technology and product development |
4,292 |
|
4,291 |
|
8,411 |
|
8,130 |
|
||||||||
General and administrative |
13,501 |
|
14,194 |
|
27,450 |
|
28,562 |
|
||||||||
Depreciation and amortization |
2,772 |
|
3,297 |
|
6,645 |
|
5,779 |
|
||||||||
Total Operating Expenses | $ |
40,655 |
|
$ |
47,300 |
|
$ |
82,394 |
|
$ |
85,115 |
|
||||
Loss from Operations | $ |
(22,071 |
) |
$ |
(28,680 |
) |
$ |
(46,654 |
) |
$ |
(54,975 |
) |
||||
Other Income (Expense) | ||||||||||||||||
Convertible promissory note and note payable fair value adjustment |
11,359 |
|
(2,244 |
) |
(6,022 |
) |
676 |
|
||||||||
Warrant liability fair value adjustment |
(3 |
) |
184 |
|
(9 |
) |
173 |
|
||||||||
Interest income (expense), net |
(55 |
) |
78 |
|
(150 |
) |
284 |
|
||||||||
Other income, net |
(1,267 |
) |
185 |
|
9,884 |
|
395 |
|
||||||||
Total Other Income (Expense) | $ |
10,034 |
|
$ |
(1,797 |
) |
$ |
3,703 |
|
$ |
1,528 |
|
||||
Loss before Benefit for Income Taxes | $ |
(12,037 |
) |
$ |
(30,477 |
) |
$ |
(42,951 |
) |
$ |
(53,447 |
) |
||||
Income Tax Expense (Benefit) |
(12 |
) |
(208 |
) |
39 |
|
(379 |
) |
||||||||
Net Loss | $ |
(12,025 |
) |
$ |
(30,269 |
) |
$ |
(42,990 |
) |
$ |
(53,068 |
) |
||||
Change in fair value of the convertible instrument liability |
1,514 |
|
- |
|
1,161 |
|
- |
|
||||||||
Foreign Currency Translation (Loss) Gain |
(307 |
) |
(586 |
) |
(2,618 |
) |
235 |
|
||||||||
Comprehensive Loss | $ |
(10,818 |
) |
$ |
(30,855 |
) |
$ |
(44,447 |
) |
$ |
(52,833 |
) |
||||
Net Loss Per Share Attributable to Stockholders: | ||||||||||||||||
Basic | $ |
(0.12 |
) |
$ |
(0.33 |
) |
$ |
(0.44 |
) |
$ |
(0.57 |
) |
||||
Diluted | $ |
(0.12 |
) |
$ |
(0.33 |
) |
$ |
(0.44 |
) |
$ |
(0.57 |
) |
||||
Weighted average shares outstanding (Basic and Diluted) |
98,321,295 |
|
92,608,276 |
|
97,498,510 |
|
92,460,655 |
|
Non-GAAP Financial Measures
We use Gross Booking Value, Gross Margin from Service Revenue, 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:
Trip Contribution Profit and Trip Contribution Margin | ||||||||
(In thousands, except percentages) |
Three Months Ended |
Three Months Ended |
||||||
Gross profit from Service revenue | $ |
16,154 |
|
$ |
15,559 |
|
||
Gross margin from Service revenue |
88 |
% |
85 |
% |
||||
Plus: Cost of Service revenue, amortization and depreciation |
502 |
|
935 |
|
||||
Less: Trip support costs |
(6,941 |
) |
(8,609 |
) |
||||
Trip Contribution Profit | $ |
9,715 |
|
$ |
7,885 |
|
||
Trip Contribution Margin |
53 |
% |
43 |
% |
||||
Gross Profit and Gross Margin | ||||||||
(In thousands, except percentages) |
Three Months Ended |
Three Months Ended |
||||||
Service revenue | $ |
18,307 |
|
$ |
18,224 |
|
||
Less: Cost of Service revenue, net of amortization and depreciation |
(1,651 |
) |
(1,730 |
) |
||||
Less: Cost of Service revenue, amortization and depreciation |
(502 |
) |
(935 |
) |
||||
Gross profit from Service revenue | $ |
16,154 |
|
$ |
15,559 |
|
||
Gross margin from Service revenue |
88 |
% |
85 |
% |
||||
Contribution Profit and Contribution Margin | ||||||||
(In thousands, except percentages) |
Three Months Ended |
Three Months Ended |
||||||
Net revenue | $ |
18,584 |
|
$ |
18,620 |
|
||
Variable operating expenses |
(13,027 |
) |
(15,747 |
) |
||||
Contribution profit | $ |
5,557 |
|
$ |
2,873 |
|
||
Contribution margin |
30 |
% |
15 |
% |
||||
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; (iv) depreciation and amortization; (v) stock-based compensation expense; (vi) contingent compensation; and (vii) certain expenses determined to be incurred outside of the regular course of business which includes: one-time expenses related to the shutdown of the
The following tables present a reconciliation of Adjusted EBITDA from the most comparable GAAP measure, Net Loss, for the periods presented:
Adjusted EBITDA | ||||||||
(In thousands) |
Three Months Ended |
Three Months Ended |
||||||
Net Loss | $ |
(12,025 |
) |
$ |
(30,269 |
) |
||
Plus: warrant liability, convertible promissory note and note payable fair value adjustment |
(11,356 |
) |
2,060 |
|
||||
Plus: interest and other income (expense), net |
1,322 |
|
(263 |
) |
||||
Minus: income tax benefit |
(12 |
) |
(208 |
) |
||||
Plus: depreciation and amortization |
2,772 |
|
3,297 |
|
||||
Plus: stock-based compensation |
4,112 |
|
2,840 |
|
||||
Plus: expense not incurred in the regular course of business |
3,774 |
|
190 |
|
||||
Adjusted EBITDA | $ |
(11,413 |
) |
$ |
(22,353 |
) |
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