- 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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version on businesswire.com: https://www.businesswire.com/news/home/20240812706179/en/
Investors: investors@getaround.com
Media: press@getaround.com Source: Getaround