Near Intelligence, Inc. (Nasdaq: NIR) (“Near,” “we,” “our,” or the
“Company”), a global leader in privacy-led data intelligence on
people and places, today announced financial results for the second
quarter ended June 30, 2023.
“In the second quarter of 2023, Near successfully implemented
our go-to-market strategy, acquiring new clients across various
regions and enhancing our offerings for existing customers. As
anticipated, our year-over-year revenue growth was 19%, which is
within the guidance range, and for the remainder of the year our
focus will be on sustainable growth with a strong focus on getting
to profitability on an operational basis” said Anil Mathews, CEO of
Near. “I believe that Near is well-positioned to continue to
deliver products that our customers rely on to extract insights
that help them make better decisions. Looking to the future, we
believe our high-quality data, coupled with generative AI, will
allow our customers to get the maximum value out of data without
sacrificing privacy.”
Second Quarter 2023 Financial Highlights
- Near achieved revenue of $17.7 million for the second quarter
of 2023, up 19% vs. total revenue of $14.8 million in the second
quarter of 2022.
- GAAP gross profit for the second quarter of 2023 was $12.1
million, and GAAP gross margin for the second quarter of 2023 was
68%.
- GAAP operating expenses for the second quarter of 2023 were
$28.2 million and GAAP operating loss for the second quarter of
2023 was $16.1 million.
- GAAP net loss for the second quarter of 2023 was $17.7
million.
- Adjusted EBITDA1 was $(5.1) million in the second quarter of
2023.
- Net Revenue Retention for the second quarter of 2023 was
112%.
YTD June 2023 Financial
Highlights
- Total revenue was $33.2 million for the six months ended June
30, 2023, an increase of 15% from total revenue of $28.9 million
for 2022.
- GAAP gross profit was $22.4 million, and GAAP gross margin was
68%.
- GAAP operating expenses were $60.9 million and GAAP operating
loss was $38.4 million.
- Adjusted EBITDA1 was $(12.0) million in the first six months
ended June 30, 2023.
Recent Business Highlights
- Near expanded its channel partner strategy to the United
Kingdom and also signed a new partner in Europe at an annual
commitment of over $1 million.
- Near unveiled its new website designed to revolutionize the way
users engage and interact with our brand by offering easier
navigation, and a better mobile experience that enhances user
experiences and streamlines interactions.
- Near announced that Earth.Vision, its customer, utilized Near’s
Platform to help its real estate clients identify customer
demographics, analyze trade areas, and assess cannibalization risks
which allowed them to optimize their market strategies, resulting
in 488 successfully completed projects.
1 Adjusted EBITDA is a non-GAAP financial measure. Please see
the discussion below under the heading “Use of Non-GAAP Financial
Measures” and the reconciliation at the end of this release for
additional information concerning non-GAAP financial measures.
Financial Outlook
Near is providing guidance for its third quarter 2023 as
follows:
Third Quarter 2023 Guidance: Total revenue is
expected to be in the range of $18.0 million to $20.0 million.
Adjusted EBITDA is expected to be in the range of $(1.5) million to
$(2.5) million.
Quarterly Conference Call
Near will host a conference call tomorrow, August 15, 2023, to
review its second quarter 2023 financial results and to discuss its
financial outlook. The call is scheduled to begin at 8:30 a.m. ET.
Investors are invited to join the webcast by visiting
investors.near.com. The webcast will be available live, and a
replay will be available following the completion of the live
broadcast for approximately 90 days.
About Near
Near, a global, full-stack data intelligence
software-as-a-service (“SaaS”) platform curates one of the world’s
largest sources of intelligence on people and places. The Near
platform’s patented technology processes data from an estimated 1.6
billion unique user IDs and 70 million points of interest, in more
than 44 countries. Near’s data and insights empower marketing and
operations teams to understand consumers’ online and offline
behaviors, affinities, and attributes in order to engage them and
grow their businesses. With a presence in Los Angeles, Paris,
Bangalore, Singapore, Sydney, and Tokyo, Near serves scaled
enterprises in retail, real estate, restaurant/QSR, travel/tourism,
telecom, and financial services. For more information, please visit
https://near.com
Additional information about Near is available at
investors.near.com. The Company plans to routinely post important
information on that site.
Use of Non-GAAP Financial Measures
To supplement our financial information presented in accordance
with generally accepted accounting principles in the United States
(“GAAP”), we present certain non-GAAP financial measures in this
press release and on the related teleconference call, including
adjusted EBITDA, non-GAAP net loss and non-GAAP operating loss. We
use these non-GAAP financial measures internally in analyzing our
financial results and believe they are useful to investors, as a
supplement to GAAP measures, in evaluating our ongoing operational
performance. These adjustments to our current period GAAP results
are made with the intent of providing both management and investors
a more complete understanding of our underlying operating results
and trends and our marketplace performance. Management believes
these non-GAAP results are an indication of our baseline
performance that is considered by management for the purpose of
making operational decisions. In addition, the non-GAAP results are
the primary indicators management uses as a basis for our planning
and forecasting of future periods. We believe that the use of these
non-GAAP financial measures provides an additional tool for
investors to use in evaluating ongoing operating results and
trends, and in comparing our financial results with other companies
in our industry, many of which present similar non-GAAP financial
measures to investors.
The non-GAAP financial measures presented in this press release
and discussed on the related teleconference call are not measures
of financial performance under GAAP and should not be considered a
substitute for net loss and operating expenses. Non-GAAP financial
measures have limitations as analytical tools, and when assessing
our operating performance, you should not consider non-GAAP
financial measures in isolation, or as a substitute for the
consolidated statements of income data prepared in accordance with
GAAP. The non-GAAP financial measures that we present may not be
comparable to similarly titled measures of other companies and
other companies may not calculate such measures in the same manner
as we do. Non-GAAP net loss is defined as net loss adjusted for
stock-based compensation expense for restricted stock units and
certain one-time expenses related to our business combination with
KludeIn I Acquisition Corp. which was completed on March 23, 2023
(the “Business Combination”) and other financing transactions.
Non-GAAP operating loss is defined as Non-GAAP net loss adjusted
for interest, taxes, fair valuation of warrant instruments and
other income.
Adjusted EBITDA is defined as net loss, plus depreciation and
amortization, stock-based compensation expense for restricted stock
units, interest expense, changes in fair value of warrant
liabilities, other expenses (income), provision for income taxes,
and certain one-time expenses related to the Business Combination
and other financing transactions.
We have not reconciled the forward-looking adjusted EBITDA
ranges discussed on the teleconference call to net income (loss),
because applicable information for future periods, on which this
reconciliation would be based, is not readily available due to
uncertainty regarding, and the potential variability of,
depreciation and amortization, interest expense, provision for
income taxes and other items. Accordingly, a reconciliation of the
forward-looking adjusted EBITDA ranges to net income (loss) is not
available at this time without unreasonable effort.
Key Performance Metric – Net Revenue
Retention
The key performance measure that management uses to help it
evaluate the health of our business, identify trends affecting its
growth, formulate goals and objectives and make strategic decisions
is Net Revenue Retention (“NRR”). NRR is a metric that measures
recurring revenue generated from existing customers over a set
period of time and is used to monitor the sustainability of revenue
growth. NRR calculates the percentage of revenue retained from
existing customers over the specified period of time, including
upgrades, downgrades, cross-selling, and cancellations by such
customers. Because NRR only looks at an existing cohort of
customers over a period of time and not new customer sales,
management believes it is a true reflection of aggregated revenue
growth and the core key performance measure we use to measure usage
and engagement across our platform. NRR is increased by account
expansion and lowered by account downgrades and churn. We calculate
NRR by dividing the last twelve months of subscription revenue
from the relevant reporting period by the revenue from that same
customer group a year earlier. NRR of greater than 100% means
aggregated revenue from the existing customer base is expanding,
while NRR of less than 100% shows revenue from that customer base
is lowering.
We continually strive to drive higher NRR by focusing on
customer needs during the sales process and dedicating customer
service resources to engage the customer and ensure the platform is
fulfilling their existing needs while looking for ways in which to
expand their usage going forward.
Forward-Looking Statements
This press release contains “forward-looking statements” for
purposes of the federal securities laws. Forward-looking statements
are any statements that look to future events and include, but are
not limited to, statements regarding our business strategy;
anticipated future operating results and operating expenses, cash
flows, capital resources, and liquidity; trends, opportunities, and
risks affecting our business, industry and financial results; the
expected benefits of use of our solutions; future expansion or
growth plans and potential for future growth; our ability to
attract new clients to purchase our solutions; market acceptance of
our solutions; the sufficiency of our existing cash and cash
equivalents to meet our working capital and capital expenditure
needs over the next 12 months; acquisitions; and our expectations
or beliefs concerning future events. In addition, the words
“anticipates,” “appear,” “approximate,” “believe,” “continue,”
“could,” “estimate,” “expect,” “foresee,” “intends,” “may,”
“might,” “plan,” “possible,” “potential,” “predict,” “project,”
“seek,” “should,” “would” and similar expressions may identify
forward-looking statements, but the absence of these words does not
mean that a statement is not forward-looking. Forward-looking
statements are neither historical facts nor assurances of future
performance and are based only on our current beliefs,
expectations, and assumptions regarding the future of our business,
future plans and strategies, projections, anticipated events and
trends, the economy, and other future conditions. Because
forward-looking statements relate to the future, they are subject
to inherent uncertainties, risks, and changes in circumstances that
are difficult to predict and many of which are outside of our
control. Therefore, you should not place undue reliance on these
forward-looking statements. Important factors that could cause our
actual results and financial condition to differ materially from
those indicated in the forward-looking statements include, among
others, the following: (i) our ability to continue as a going
concern; (ii) our ability to raise the additional financing
necessary to meet our liquidity needs and fund our operations,
which we may not be able to obtain on favorable terms or at all;
(iii) our ability to generate sufficient revenue to achieve and
sustain profitability; (iv) our ability to attract new customers or
retain existing customers; (v) our reliance on a limited number of
customers for a significant portion of our revenue; (vi) the impact
of restrictions and limitations under our financing arrangements,
which could significantly affect our ability to operate our
business, as well as significantly affect our liquidity; (vii)
substantial regulation and the potential for unfavorable changes
to, or our failure to comply with, these regulations, which could
substantially harm our business and operating results; (viii) the
level of demand for and market utilization of our solutions and
products; (ix) developments and projections relating to our
competitors and industry; (x) our management team’s limited
experience managing a public company; (xi) the possibility that we
need to defend ourselves against fines, penalties and injunctions
if we are determined to be promoting products for unapproved uses;
(xii) our dependency upon third-party service providers for certain
technologies; (xiii) our ability to maintain the listing of our
common stock or public warrants on Nasdaq; (xiv) the risk that our
significant increased expenses and administrative burdens as a
public company could have an adverse effect on our business,
financial condition and results of operations; and (xv) the other
risks and uncertainties identified in our SEC filings. These
forward-looking statements are based on information available as of
the date hereof and current expectations, forecasts, and
assumptions, and involve a number of judgments, risks, and
uncertainties. Accordingly, forward-looking statements should not
be relied upon as representing our views as of any subsequent date,
and we do not undertake any obligation to update forward-looking
statements to reflect events or circumstances after the date they
were made, whether as a result of new information, future events or
otherwise, except as may be required under applicable securities
laws.
Investor Contact: Marc P. GriffinICR, Inc for
NearIR@near.com
Media Contact:Kat HarwoodPR@near.com
Near
Intelligence Inc. |
Condensed
Consolidated Balance Sheets |
(In thousands,
except shares and per share data) |
(unaudited) |
|
|
|
|
|
|
|
June 30,2023 |
|
December 31,2022 |
Assets |
|
|
|
|
Current assets |
|
|
|
|
Cash and cash equivalents |
|
24,323 |
|
|
16,600 |
|
Restricted cash |
|
29,773 |
|
|
44,398 |
|
Accounts receivable, net of
allowance for credit losses of $3,222,728, and $3,417,845 as of
June 30, 2023 and December 31,2022, respectively |
|
23,217 |
|
|
26,011 |
|
Prepaid expenses and other
current assets |
|
5,742 |
|
|
4,963 |
|
Total current
assets |
|
83,055 |
|
|
91,973 |
|
|
|
|
|
|
Property and equipment,
net |
|
2,614 |
|
|
4,659 |
|
Operating lease right-of-use
assets |
|
3,616 |
|
|
4,038 |
|
Goodwill |
|
62,078 |
|
|
61,995 |
|
Intangible assets, net |
|
7,477 |
|
|
10,689 |
|
Other assets |
|
2,850 |
|
|
2,882 |
|
Total
assets |
|
161,690 |
|
|
176,236 |
|
|
|
|
|
|
Liabilities,
redeemable convertible preferred shares and shareholders'
deficit |
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
Current portion of long-term
borrowings |
|
90,360 |
|
|
2,783 |
|
Convertible debentures |
|
10,238 |
|
|
|
Accounts payable |
|
14,663 |
|
|
9,992 |
|
Accrued expenses and other
current liabilities |
|
21,397 |
|
|
20,004 |
|
Current portion of operating
lease liabilities |
|
1,032 |
|
|
937 |
|
Derivative liabilities |
|
12,016 |
|
|
|
Total current
liabilities |
|
149,706 |
|
|
33,716 |
|
|
|
|
|
|
Long-term borrowings, less
current portion |
|
717 |
|
|
85,564 |
|
Long-term operating lease
liabilities |
|
2,803 |
|
|
3,299 |
|
Long-term Derivative
liabilities |
|
4,059 |
|
|
16,766 |
|
Other liabilities |
|
482 |
|
|
731 |
|
Total
liabilities |
|
157,767 |
|
|
140,076 |
|
|
|
|
|
|
Redeemable convertible
preferred shares |
|
|
|
|
Redeemable convertible
preferred stock, par value $0.0001, 50,000,000 and 33,083,858
shares authorized as of June 30, 2023 and December 31, 2022,
respectively; 0 and 33,083,858, shares issued and outstanding as of
June 30, 2023 and December 31, 2022 respectively; redemption amount
of $0 and $253,045,305 as of June 30, 2023 and December 31, 2022,
respectively |
|
- |
|
|
207,417 |
|
|
|
- |
|
|
- |
|
Stockholders’ equity
(deficit) |
|
|
|
|
Common stock, par value
$0.0001; 300,000,000 and 20,746,276 shares authorized as of June
30, 2023 and December 31, 2022, respectively; 50,588,257 and
8,296,074 shares issued and outstanding as of June 30, 2023 and
December 31, 2022, respectively |
|
5 |
|
|
0 |
|
Additional
paid-in-capital |
|
282,843 |
|
|
70,901 |
|
Accumulated deficit |
|
(277,687) |
|
|
(240,787) |
|
Accumulated other
comprehensive loss |
|
(1,237) |
|
|
(1,371) |
|
Total stockholders’
equity (deficit) |
|
3,923 |
|
|
(171,258) |
|
|
|
|
|
|
Total liabilities,
redeemable convertible preferred stock and stockholders’ equity
(deficit) |
|
161,690 |
|
|
176,236 |
|
|
|
|
|
|
Near
Intelligence Inc. |
Condensed
Consolidated Statements of Operations |
(In thousands,
except shares and per share data) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
Revenue |
|
17,709 |
|
|
14,839 |
|
|
33,217 |
|
|
28,898 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
Cost of revenue (exclusive of
depreciation and amortization shown separately below) |
|
5,636 |
|
|
5,116 |
|
|
10,780 |
|
|
9,394 |
|
Product and technology |
|
6,898 |
|
|
9,936 |
|
|
15,202 |
|
|
14,837 |
|
Sales and marketing |
|
4,825 |
|
|
8,433 |
|
|
9,987 |
|
|
13,126 |
|
General and
administrative |
|
13,727 |
|
|
58,374 |
|
|
30,242 |
|
|
61,380 |
|
Depreciation and
amortization |
|
2,717 |
|
|
2,362 |
|
|
5,439 |
|
|
4,742 |
|
Total costs and
expenses |
|
33,804 |
|
|
84,222 |
|
|
71,650 |
|
|
103,477 |
|
Operating loss |
|
(16,094) |
|
|
(69,383) |
|
|
(38,432) |
|
|
(74,579) |
|
Interest expense, net |
|
4,872 |
|
|
972 |
|
|
8,871 |
|
|
1,721 |
|
Changes in fair value of
derivative liabilities |
|
(2,740) |
|
|
15 |
|
|
(10,044) |
|
|
(1,685) |
|
Other expense (income),
net |
|
(685) |
|
|
(18) |
|
|
(680) |
|
|
(517) |
|
Loss before income tax
expense |
|
(17,541) |
|
|
(70,352) |
|
|
(36,579) |
|
|
(74,098) |
|
Income tax expense |
|
200 |
|
|
76 |
|
|
321 |
|
|
138 |
|
Net loss attributable
to Near Intelligence Inc. and common stockholders |
|
(17,742) |
|
|
(70,428) |
|
|
(36,900) |
|
|
(74,236) |
|
|
|
|
|
|
|
|
|
|
Net loss attributable to
common stockholders, basic and diluted |
|
(17,742) |
|
|
(70,428) |
|
|
(36,900) |
|
|
(74,236) |
|
Net loss per share
attributable to common stockholders, basic and diluted |
|
(0.36) |
|
|
(7.16) |
|
|
(1.12) |
|
|
(8.44) |
|
Weighted-average number of
shares outstanding used to compute net loss per share attributable
to common stockholders, basic and diluted |
|
48,820,697 |
|
|
9,830,720 |
|
|
32,807,291 |
|
|
8,794,947 |
|
|
|
|
|
|
|
|
|
|
Near
Intelligence Inc. |
|
|
Condensed
Consolidated Statements of Cash Flows |
|
|
(In
thousands) |
|
|
(unaudited) |
|
|
|
|
Six months ended June 30, |
|
|
|
|
2023 |
|
|
2022 |
|
|
|
Cash flows from
operating activities: |
|
|
|
|
|
|
Net loss |
|
(36,900) |
|
|
(74,236) |
|
|
|
Adjustments to reconcile net
loss to net cash used in operating activities: |
|
|
|
|
|
|
Depreciation and
amortization |
|
5,439 |
|
|
4,742 |
|
|
|
Share based compensation |
|
10,954 |
|
|
63,090 |
|
|
|
Changes in fair value of
warrant liabilities |
|
(10,044) |
|
|
(1,685) |
|
|
|
Allowance for credit losses on
trade receivables and write off |
|
419 |
|
|
739 |
|
|
|
Amortization of debt discount
due to warrants |
|
1,560 |
|
|
597 |
|
|
|
Other |
|
(716) |
|
|
(918) |
|
|
|
Changes in operating assets
and liabilities: |
|
|
|
|
|
|
Accounts receivable |
|
2,446 |
|
|
(11,722) |
|
|
|
Prepaid expenses and other
current assets |
|
(3,182) |
|
|
(1,274) |
|
|
|
Operating lease right-of-use
assets |
|
460 |
|
|
251 |
|
|
|
Other assets |
|
32 |
|
|
222 |
|
|
|
Accounts payable |
|
3,232 |
|
|
1,199 |
|
|
|
Accrued expenses and other
current liabilities |
|
1,710 |
|
|
7,869 |
|
|
|
Operating lease
liabilities |
|
(441) |
|
|
(235) |
|
|
|
Other liabilities |
|
(250) |
|
|
13 |
|
|
|
Net cash used in
operating activities |
|
(25,282) |
|
|
(11,347) |
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
Additions to property and
equipment |
|
(179) |
|
|
(114) |
|
|
|
Proceeds from sale of
marketable securities |
|
- |
|
|
259 |
|
|
|
Proceeds from sale of short
term investments |
|
- |
|
|
1,067 |
|
|
|
Cash acquired in Business
Combination, net of transaction costs paid |
|
205 |
|
|
- |
|
|
|
Advance to related party (note
23) |
|
1,778 |
|
|
- |
|
|
|
Net cash provided by
investing activities |
|
1,804 |
|
|
1,211 |
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities |
|
|
|
|
|
|
Proceeds from issuance of
debt, net of issuance costs |
|
18,969 |
|
|
19,325 |
|
|
|
Proceeds from exercise of
share options |
|
- |
|
|
3 |
|
|
|
Cash distributed to
stockholders as part of reorganization |
|
- |
|
|
(539) |
|
|
|
Repayment of short term
borrowing from related party (note 21) |
|
(2,073) |
|
|
- |
|
|
|
Repayments of debt |
|
(361) |
|
|
(1,941) |
|
|
|
Net cash (used in)
provided by financing activities |
|
16,535 |
|
|
16,848 |
|
|
|
|
|
|
|
|
|
|
Effect of exchange rates on
cash, cash equivalents and restricted cash |
|
41 |
|
|
(233) |
|
|
|
Net (decrease)
increase in cash and cash equivalents and restricted
cash |
|
(6,901) |
|
|
6,479 |
|
|
|
Cash and cash equivalents and
restricted cash at beginning of period |
|
60,998 |
|
|
8,950 |
|
|
|
Cash, cash equivalents
and restricted cash at the end of the period |
|
54,097 |
|
|
15,429 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure of cash flow information: |
|
|
|
|
|
|
Cash paid for income
taxes |
|
67 |
|
|
282 |
|
|
|
Cash paid for interest on
borrowings |
|
8,549 |
|
|
1,111 |
|
|
|
|
|
|
|
|
|
|
Non-cash investing and
financing activities |
|
|
|
|
|
|
Business Combination
transaction costs, accrued but not paid |
|
8,802 |
|
|
|
|
|
Recapitalization of Near
Holdings common stock |
|
1 |
|
|
- |
|
|
|
Assumption of Business
Combination warrants liability |
|
2,296 |
|
|
- |
|
|
|
Assumption of Business
Combination promissory note and working capital loan |
|
1,795 |
|
|
- |
|
|
|
Issuance of Common Stock as
commitment fee shares in connection with convertible debt |
|
602,556 |
|
|
|
|
|
Near
Intelligence, Inc. |
Unaudited
Reconciliation of GAAP to Non-GAAP Operating Results |
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
Net loss to adjusted
EBITDA |
|
|
|
|
|
Net loss |
|
(17,741) |
|
|
(70,427) |
|
|
|
(36,899) |
|
|
(74,234) |
|
Stock-based compensation
expense related to restricted stock units |
|
5,115 |
|
|
63,043 |
|
|
|
10,954 |
|
|
63,090 |
|
One-time expenses |
|
3,197 |
|
|
19 |
|
|
|
9,999 |
|
|
134 |
|
Non GAAP Net
Loss |
|
(9,429) |
|
|
(7,365) |
|
|
|
(15,946) |
|
|
(11,010) |
|
Provision for income
taxes |
|
200 |
|
|
76 |
|
|
|
321 |
|
|
138 |
|
Other expenses (income) |
|
(685) |
|
|
(18) |
|
|
|
(680) |
|
|
(517) |
|
Changes in fair value of
warrant liabilities |
|
(2,740) |
|
|
15 |
|
|
|
(10,044) |
|
|
(1,685) |
|
Interest expense |
|
4,872 |
|
|
972 |
|
|
|
8,871 |
|
|
1,721 |
|
Non GAAP Operating
Loss |
|
(7,782) |
|
|
(6,320) |
|
|
|
(17,479) |
|
|
(11,354) |
|
Depreciation and
amortization |
|
2,717 |
|
|
2,362 |
|
|
|
5,439 |
|
|
4,742 |
|
Adjusted
EBITDA |
$ |
(5,065) |
|
$ |
(3,957) |
|
|
$ |
(12,040) |
|
$ |
(6,612) |
|
|
|
|
|
|
|
Near Intelligence (NASDAQ:NIR)
Historical Stock Chart
From Apr 2024 to May 2024
Near Intelligence (NASDAQ:NIR)
Historical Stock Chart
From May 2023 to May 2024