Getaround Reports Third Quarter 2024 Financial Results
OAKLAND, Calif., Nov. 14, 2024 (GLOBE NEWSWIRE) -- Getaround (OTCQB: GETR), the world's first connected carsharing marketplace, today announced financial results for the third quarter of 2024 ended September 30, 2024.
Third Quarter 2024 Highlights
- Total revenue of $22.4 million versus $23.8 million in the prior-year period
- Gross Booking Value of $65.1 million compared to $53.0 million as of June 30, 2024
- Gross Margin from Service Revenue expanded to 90%, an increase of 300 basis points year-over-year
- Trip Contribution Margin decreased to 48%, a decrease of 400 basis points year-over-year
- GAAP net loss of $15.5 million compared to $27.3 million a year ago
- Adjusted EBITDA loss of $9.3 million versus $11.3 million in 2023
- Appointed AJ Lee, Chief Operating Officer, to the role of Interim Chief Executive Officer
“We believe Getaround continues to gain momentum following our restructuring efforts, positioning the Company for what we expect will be its most successful year to date,” said AJ Lee, Interim CEO. “While revenue in the third quarter saw a minor decrease compared to 2023, primarily attributable to the planned suspension of operations in New York State, the Company demonstrated sequential top-line growth from the second quarter. This growth – coupled with an 18% reduction in Adjusted EBITDA loss on a year-over-year basis – underscores the effectiveness of our operational execution and a focus on cost optimization that we believe puts us on a secure trajectory for sustainable and profitable growth.”
The Company expects to resume hosting quarterly conference calls at the end of fiscal 2024.
Financial Results
Getaround reported revenue of $22.4 million in the third quarter of fiscal 2024 versus $23.8 million in the prior-year period, with the lower revenue primarily reflecting the decision to suspend operations in New York State earlier in 2024.
The Company reported an operating loss of $16.5 million in the fiscal 2024 third quarter compared with $19.1 million in the prior-year period. Reported net loss was $15.5 million, or $(0.15) per diluted share, versus $27.3 million, or $(0.29) per diluted share, in the quarter ended September 30, 2023.
About Getaround
Offering a digital experience, Getaround (OTCQB: GETR) makes sharing cars and trucks simple through its proprietary cloud and in-car Getaround Connect® technology. The company empowers consumers to shift away from car ownership through instant and convenient access to desirable, affordable, and safe cars from entrepreneurial hosts. Getaround’s on-demand technology enables a contactless experience — no waiting in line at a car rental facility, manually completing paperwork or meeting anyone to collect or drop off car keys. Getaround’s purpose is to propel the world’s transition to a more sustainable society, economy and environment with its peer-to-peer connected carsharing marketplace. Launched in 2011, Getaround is available today in more than 1,000 cities across 8 countries including the United States and Europe. For more information, please visit https://www.getaround.com/.
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 interim Chief Executive Officer with respect to expectations regarding the Company’s competitive position in the carsharing space, operational execution, cost optimization, and ability to achieve sustainable and profitable growth. 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 SEC from time to time, including the risk factors contained in our Annual Report on Form 10-K for the year ended December 31, 2023. You should not place undue reliance on these forward-looking statements, which speak only as of the date hereof. We do not undertake to update or revise any forward-looking statements after they are made, whether as a result of new information, future events, or otherwise, except as required by applicable law.
| Consolidated Balance Sheet | ||||||
| (In thousands, except share and per share data) | September 30, 2024 | December 31, 2023 | ||||
| (Unaudited) | ||||||
| Assets | ||||||
| Current Assets | ||||||
| Cash and cash equivalents | $ | 30,797 | $ | 15,624 | ||
| Accounts receivable, net | 728 | 853 | ||||
| Prepaid expenses and other current assets | 7,811 | 10,131 | ||||
| Total Current Assets | $ | 39,336 | $ | 26,608 | ||
| Property and equipment, net | 1,528 | 8,504 | ||||
| Operating lease right-of-use assets, net | 1,281 | 12,162 | ||||
| Goodwill | 96,984 | 95,869 | ||||
| Intangible assets, net | 6,826 | 13,358 | ||||
| Other assets | 7,360 | 4,635 | ||||
| Total Assets | $ | 153,315 | $ | 161,136 | ||
| Liabilities and Stockholders’ Equity (Deficit) | ||||||
| Current Liabilities | ||||||
| Accounts payable | $ | 6,408 | $ | 15,552 | ||
| Accrued host payments and insurance fees | 14,257 | 13,192 | ||||
| Operating lease liabilities, current | 194 | 2,268 | ||||
| Notes payable, current ($0 and $18,568 measured at fair value, respectively) | 1,583 | 19,904 | ||||
| Other accrued liabilities | 43,401 | 48,107 | ||||
| Deferred revenue | 1,024 | 684 | ||||
| Total Current Liabilities | $ | 66,867 | $ | 99,707 | ||
| Notes payable ($70,970 and $0 measured at fair value, respectively) | 73,764 | 2,122 | ||||
| Convertible notes payable ($44,760 and $40,370 measured at fair value, respectively) | 44,760 | 40,469 | ||||
| Operating lease liabilities (net of current portion) | 1,087 | 15,487 | ||||
| Deferred tax liabilities | 274 | 212 | ||||
| Warrant liability | 15 | 20 | ||||
| Total Liabilities | $ | 186,767 | $ | 158,017 | ||
| Stockholders’ Equity (Deficit) | ||||||
| Common stock, $0.0001 par value, 1,000,000,000 shares authorized; 97,120,623 and 92,827,281 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively | $ | 10 | $ | 9 | ||
| Additional paid-in capital | 870,179 | 859,163 | ||||
| Stockholder notes | (8,284) | (8,284) | ||||
| Accumulated deficit | (934,469) | (875,955) | ||||
| Accumulated other comprehensive income | 39,112 | 28,186 | ||||
| Total Stockholders’ Equity (Deficit) | $ | (33,452) | $ | 3,119 | ||
| Total Liabilities and Stockholders’ Equity (Deficit) | $ | 153,315 | $ | 161,136 | ||
| Consolidated Statements of Operations and Comprehensive Loss | |||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||
| (In thousands, except per share data) (Unaudited) | 2024 | 2023 | 2024 | 2023 | |||||
| Service revenue | $ | 22,122 | 23,387 | 57,235 | 52,810 | ||||
| Lease revenue | 265 | 412 | 892 | 1,129 | |||||
| Total Revenues | $ | 22,387 | 23,799 | 58,127 | 53,939 | ||||
| Costs and Expenses | |||||||||
| Cost of revenue (exclusive of amortization and depreciation shown separately below): | |||||||||
| Service | $ | 1,719 | 1,920 | 5,295 | 4,995 | ||||
| Lease | 9 | 32 | 63 | 107 | |||||
| Sales and marketing | 5,197 | 4,118 | 14,165 | 15,486 | |||||
| Operations and support | 15,255 | 16,874 | 42,545 | 45,000 | |||||
| Technology and product development | 3,686 | 4,156 | 12,097 | 12,286 | |||||
| General and administrative | 11,103 | 11,662 | 38,553 | 40,224 | |||||
| Depreciation and amortization | 1,911 | 4,135 | 8,556 | 9,914 | |||||
| Total Operating Expenses | $ | 38,880 | 42,897 | 121,274 | 128,012 | ||||
| Loss from Operations | $ | (16,493) | (19,098) | (63,147) | (74,073) | ||||
| Other Income (Expense) | |||||||||
| Convertible promissory note and note payable fair value adjustment | 708 | (8,686) | (5,314) | (8,010) | |||||
| Warrant liability fair value adjustment | 14 | 36 | 5 | 209 | |||||
| Interest income (expense), net | (30) | 222 | (180) | 506 | |||||
| Other income, net | 284 | (64) | 10,168 | 331 | |||||
| Total Other Income (Expense) | $ | 976 | (8,492) | 4,679 | (6,964) | ||||
| Loss before Benefit for Income Taxes | $ | (15,517) | (27,590) | (58,468) | (81,037) | ||||
| Income Tax Expense (Benefit) | 7 | (244) | 46 | (623) | |||||
| Net Loss | $ | (15,524) | (27,346) | (58,514) | (80,414) | ||||
| Change in fair value of the convertible instrument liability | 8,542 | 15,628 | 9,703 | 15,628 | |||||
| Foreign Currency Translation (Loss) Gain | 3,841 | (2,111) | 1,223 | (1,876) | |||||
| Comprehensive Loss | $ | (3,141) | (13,829) | (47,588) | (66,662) | ||||
| Net Loss Per Share Attributable to Stockholders: | |||||||||
| Basic | $ | (0.15) | (0.29) | (0.59) | (0.87) | ||||
| Diluted | $ | (0.15) | (0.29) | (0.59) | (0.87) | ||||
| Weighted average shares outstanding (Basic and Diluted) | 100,475,081 | 93,204,630 | 98,497,942 | 92,707,994 | |||||
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.
Gross Booking Value
Gross Booking Value (“GBV”) represents the dollar value of all service transactions on our platform during a period, charged to both guests and hosts, net of cancellations. This includes charges for transactions resulting from all revenue generating activities, inclusive of all pass-through fees and taxes, net of lease revenue. As such, we consider GBV to be a key indicator of our market scale. Growth of GBV reflects our ability to attract and retain guests and hosts on our platform.
The following tables present a reconciliation of Gross Booking Value from the most comparable GAAP measure, Service Revenues, for the periods presented:
| Gross Booking Value | |||||||
| (In thousands) | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | |||||
| Service Revenues | $ | 22,122 | 23,387 | ||||
| Plus: Host reimbursements | 42,875 | 45,149 | |||||
| Plus: Pass-through fees | 67 | 700 | |||||
| Gross Booking Value | $ | 65,064 | 69,236 | ||||
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 September 30, 2024 | Three Months Ended September 30, 2023 | |||||
| Gross profit from Service revenue | $ | 19,962 | 20,422 | ||||
| Gross margin from Service revenue | 90% | 87% | |||||
| Plus: Cost of Service revenue, amortization and depreciation | 451 | 1,045 | |||||
| Less: Trip support costs | (9,685) | (9,397) | |||||
| Trip Contribution Profit | $ | 10,728 | 12,070 | ||||
| Trip Contribution Margin | 48% | 52% | |||||
| Gross Profit and Gross Margin | |||||||
| (In thousands, except percentages) | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | |||||
| Service revenue | $ | 22,122 | 23,387 | ||||
| Less: Cost of Service revenue, net of amortization and depreciation | (1,709) | (1,920) | |||||
| Less: Cost of Service revenue, amortization and depreciation | (451) | (1,045) | |||||
| Gross profit from Service revenue | $ | 19,962 | 20,422 | ||||
| Gross margin from Service revenue | 90% | 87% | |||||
| Contribution Profit and Contribution Margin | |||||||
| (In thousands, except percentages) | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | |||||
| Net revenue | $ | 22,397 | 23,804 | ||||
| Variable operating expenses | (15,110) | (16,434) | |||||
| Contribution profit | $ | 7,287 | 7,370 | ||||
| Contribution margin | 33% | 31% | |||||
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 Green St. Office, legal fees to raise capital, certain legal settlements and business combination-related legal fees, and investments in preparation of going public, initial implementation projects and transaction costs associated with proposed 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:
| Adjusted EBITDA | |||||
| (In thousands) | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | |||
| Net Loss | $ | (15,524) | (27,346) | ||
| Plus: warrant liability, convertible promissory note and note payable fair value adjustment | (722) | 8,650 | |||
| Plus: interest and other income (expense), net | (254) | (158) | |||
| Minus: income tax benefit | 7 | (244) | |||
| Plus: depreciation and amortization | 1,911 | 4,135 | |||
| Plus: stock-based compensation | 3,605 | 3,548 | |||
| Plus: expense not incurred in the regular course of business | 1,725 | 138 | |||
| Adjusted EBITDA | $ | (9,252) | (11,277) | ||
Investors:
investors@getaround.com
Chris Witty
646-438-9385
cwitty@darrowir.com
Media:
press@getaround.com
Source: Getaround
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