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
Getaround (OTC:GETR), the world's first connected carsharing marketplace, today announced financial results for the second quarter of 2024 ended June 30, 2024.
"During the first half of 2024 we aggressively capitalized on opportunities to increase efficiency and right-size expenses," said Eduardo Iniguez, CEO of Getaround. "I am pleased to share that our second quarter 2024 results are starting to reflect the results of being laser-focused on addressing legacy challenges while charting a new path for Getaround. For the remainder of 2024, we expect to maintain our positive momentum with margin improvement while growing in markets and segments with profitable unit economics."
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 2:00 p.m. PT / 5:00 p.m. ET to discuss the financial results and provide a corporate update. A live webcast and replay can be accessed from the investor relations page of Getaround's website at Getaround | Investor Relations. Individuals interested in listening to the conference call may do so by dialing 1-844-826-3033 or 1-412-317-5185.
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 Monday, August 26, 2024.
About Getaround
Offering a digital experience, Getaround (NYSE: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 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 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) | June 30, 2024 | December 31, 2023 | ||||||
| (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 |
|
||||
| Goodwill | 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 ($0 and $18,568 measured at fair value, respectively) | 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 ($50,130 and $0 measured at fair value, respectively) | 52,078 |
|
2,122 |
|
||||
| Convertible notes payable ($54,850 and $40,370 measured at fair value, respectively) | 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, $0.0001 par value, 1,000,000,000 shares authorized; 96,660,499 and 92,827,281 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively | $ | 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 June 30, |
|
|
Six Months Ended June 30, |
|||||||||||||
| (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 June 30, 2024 | Three Months Ended June 30, 2023 | ||||||
| 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 June 30, 2024 | Three Months Ended June 30, 2023 | ||||||
| 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 June 30, 2024 | Three Months Ended June 30, 2023 | ||||||
| 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 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 June 30, 2024 | Three Months Ended June 30, 2023 | ||||||
| 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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