Zoomcar Reports Highest-Ever Unaudited and Unreviewed Contribution Profit in December 2024 Which Covers India Operational Costs
BENGALURU, India, Jan. 9, 2025 /PRNewswire/ -- Zoomcar Holdings, Inc. (NASDAQ:ZCAR) ("Zoomcar", or "we", or "our"), the leading marketplace for car sharing in India, proudly announces a milestone achievement in its financial performance in select unaudited and unreviewed financial results for the third fiscal quarter ended December 31, 2024. The company recorded its highest-ever unaudited and unreviewed contribution profit for the single month in December 2024, amounting to $494,506 based on provisional financials for the month, sufficient to cover its operational costs in India (excluding exceptional items). Zoomcar currently only operates in India and does not incur operational costs in any other country. This accomplishment underscores Zoomcar's commitment to operational excellence and sustainable growth.
December 2024 marked a significant growth in consumer demand, leading to a 17% growth in bookings compared to December 2023. This surge in activity highlights the growing appeal of Zoomcar's platform among Hosts and Guests, as well as the increasing adoption of car-sharing solutions across India.
Zoomcar's financial turnaround has been remarkable over the past year. Key highlights include:
- In the first fiscal quarter 2024-25 report, Zoomcar reported a contribution profit of $0.46 million (20%), a substantial improvement in contribution margin from a loss of $1.2 million (-45%) in the first fiscal quarter 2023-24.
- Similarly, Zoomcar shared a record quarterly contribution profit of $1.21 million (54% of revenue) in the second fiscal quarter 2024-25, up from a loss of $0.12 million (-5%) in the second fiscal quarter 2023-24.
- December 2024's unaudited and unreviewed monthly contribution profit continues this positive trajectory, following a streak of four consecutive quarters of contribution profit improvement filed by the company.
Hiroshi Nishijima, Interim CEO of Zoomcar, commented, "By achieving a record contribution profit (unaudited and unreviewed) in December 2024 which is our peak seasonal demand month and covering operational costs reflects that our business fundamentals are right on track by putting the customer experience at the center of our strategy. This focus drives repeat bookings from Guests and strengthens Host retention, all while minimizing our spend on discounts and marketing—an organic flywheel of growth. With improved profitability, we are committed to reinvesting in enhancing the customer journey and launching innovative products that add value to our community."
As Zoomcar heads into 2025, the company remains dedicated to advancing its mission of empowering Hosts, offering affordable and convenient transportation for Guests, and driving financial sustainability. The continuous trend of improving contribution profits not only signals progress but also sets a strong foundation for the future.
Financial Disclosure Advisory:
The Company reports its financial results in accordance with U.S. generally accepted accounting principles ("GAAP"). The select unaudited and unreviewed results described in this press release are estimates only and are subject to revision until the Company reports its full financial and business results for the third quarter of the fiscal year 2024-2025. These estimates are not a comprehensive statement of the Company's financial results for the third quarter of the fiscal year 2024-2025 and actual results may differ materially from these estimates as a result of the completion of year-end accounting procedures and adjustments, including the execution of the Company's internal control over financial reporting, the completion of the preparation and audit of the Company's financial statements and the subsequent occurrence or identification of events prior to the formal issuance of the reviewed financial statements for the third quarter of the fiscal year 2024-2025.
Non-GAAP Financial Measures:
Certain non-GAAP financial measures, including contribution profit, are presented in this press release to provide information that may assist investors in understanding the Company's financial and operating results. The Company believes these non-GAAP financial measures are important performance indicators because they exclude items that are unrelated to, and may not be indicative of, the Company's core financial and operating results. These non-GAAP financial measures, as calculated, may not necessarily be comparable to similarly titled measures of other companies and may not be appropriate measures for comparing the performance of other companies relative to the Company. These non-GAAP financial measures are not intended to represent, and should not be considered to be more meaningful measures than, or alternatives to, measures of operating performance as determined in accordance with GAAP. To the extent the Company utilizes such non-GAAP financial measures in the future, it expects to calculate them using a consistent method from period to period.
About Zoomcar:
Founded in 2013 and headquartered in Bengaluru, India, Zoomcar is a leading marketplace for car sharing focused in India. The Zoomcar community connects Hosts with Guests, who choose from a selection of cars for use at affordable prices, promoting sustainable, smart transportation solutions in India.
Forward Looking Statement:
Certain statements contained in this press release are not historical facts and may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "plans," "expects," "believes," "anticipates," and similar words are intended to identify forward-looking statements. These forward-looking statements include, but are not limited to, statements relating to the Company's preliminary, unaudited financial results for the third quarter of the fiscal year 2024-2025, the Company's progress against its strategic objectives, and the plans for and timing of the Company's the Company's release of its financial and business results for the third quarter of the fiscal year 2024-2025. Forward-looking statements are based on our current expectations and beliefs, and involve a number of risks and uncertainties that are difficult to predict and that could cause actual results to differ materially from those stated or implied by the forward-looking statements. A description of certain of these risks, uncertainties and other matters can be found in filings we make with the U.S. Securities and Exchange Commission, all of which are available at www.sec.gov. Because forward-looking statements involve risks and uncertainties, actual results and events may differ materially from results and events currently expected by us, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect any change in its expectations with regard to these forward-looking statements or the occurrence of unanticipated events.
Press Contact:
Bhagyashree Rewatkar: [email protected]
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SOURCE Zoomcar Holdings, Inc.