Net Loss Declines 43% Year-over-Year; Adjusted EBITDA Loss Improves 18%
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
