Total Revenues Up 49% and Gross Booking Value
Up 41% Year-Over-Year
Leadership Transition, Capital Raise and
Operational Streamlining Support Renewed Focus on Achieving
Profitable Growth
Getaround (NYSE: GETR) (“Getaround'' or “the Company”), the
world’s first connected carsharing marketplace, today announced
financial results for the first quarter of 2024 ended March 31,
2024.
"Since transitioning our leadership earlier this year, we have
realigned our business priorities to focus on achieving profitable
growth, reduced our cost structure as a percent of total revenue,
and raised additional capital to fund operations into 2025,” said
Eduardo Iniguez, Getaround’s Chief Executive Officer. “We also
reached several major strategic milestones, including integrating
our North America operations into our global platform and
withdrawing from certain unprofitable markets.
“As we continue to right-size our expense profile in North
America, I am also excited about our high growth potential
opportunities including Getaround’s Drive With Uber and HyreCar Gig
programs, and expansion of our European carsharing business,”
continued Iniguez. “The recent decisions and developments reflect
the clear pivot that we are making towards scaling profitably. I am
confident that with new management and a laser focus on balancing
growth and financial discipline, we are opening a new chapter for
Getaround.”
First Quarter 2024 Business Highlights
- Initiated a transition of the board of directors and executive
management team to accelerate the Company’s path to
profitability.
- Secured $20 million in financing in January and up to an
additional $50 million in April, of which $20 million has been
drawn to date, for a total of up to $70 million to fund operations
and growth investments into 2025.
- Announced and executed a restructuring of operations to reduce
total operating expenses. The run-rate benefits of these actions
are expected to be reflected in the second quarter financial
results and beyond.
- Suspended consumer carsharing operations in New York State as
of April 1, 2024, due to the extremely high cost of maintaining the
insurance coverage required under the New York Peer-to-Peer (P2P)
Carsharing Act enacted in 2022, which is fifty times greater than
the insurance limits required for rental car companies and private
vehicle ownership.
“Our first quarter results continue to validate Getaround’s
critical position in this dynamic and growing space,” said Tom
Alderman, Getaround’s Chief Financial Officer. “This is reflected
in the growth of our Gig business which was accelerated by our
HyreCar asset acquisition in May 2023 and drove significant growth
in Total Revenues and Gross Booking Value in the first quarter.
Looking ahead, we expect to see continued growth in our Gig
business as we also continue to invest in strategic consumer
carsharing markets globally.”
Alderman went on to say, “We expect that the first quarter will
represent the year’s high point in fixed operating expenses while
we anticipate ongoing cost improvements from our recent
restructuring initiatives throughout the remainder of 2024.
Although the exit from certain unprofitable geographic markets
places downward pressure on revenue, we anticipate a corresponding
positive impact to unit economics. As a result, we expect to see
continued improvement in Adjusted EBITDA beginning in the second
quarter of 2024.”
- Total Revenues of $17.2 million, an increase of 49%
year-over-year
- Gross Booking Value of $44.9 million, an increase of 41%
year-over-year
- Gross Profit from Service Revenue of $13.9 million, an increase
of 54% year-over-year; Gross margin from Service revenue was 83%,
an improvement from 81% in the year-ago period
- Trip Contribution Profit of $6.8 million, an increase of 38%
year-over-year; Trip Contribution Margin was 40%, down from 44% in
the year-ago period
- GAAP Net Loss of $31.0 million, a 36% decrease from the
year-ago period
- Adjusted EBITDA loss of $15.3 million, a 23% improvement from
the year-ago period
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 mission is to utilize its
peer-to-peer marketplace to help solve some of the most pressing
challenges facing the world today, including environmental
sustainability and access to economic opportunity. 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, Chairman and Chief Financial Officer with respect to
expectations regarding the Company’s opportunities to increase its
market share and accelerate its path to profitability, the
Company’s potential for success, and the Company’s expectation the
additional trip support costs it experienced in 2023 will not
continue in 2024 may constitute forward-looking statements.
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 filed with the SEC on March 29, 2024.
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)
March 31, 2024
December 31, 2023
Assets Current Assets Cash and cash equivalents $
24,537
$
15,624
Accounts receivable, net
768
853
Prepaid expenses and other current assets
7,660
10,131
Total Current Assets $
32,965
$
26,608
Property and equipment, net
7,943
8,504
Operating lease right-of-use assets, net
11,804
12,162
Goodwill
93,613
95,869
Intangible assets, net
10,845
13,358
Other assets
6,817
4,635
Total Assets $
163,987
$
161,136
Liabilities and Stockholders’ Equity (Deficit) Current
Liabilities Accounts payable $
10,784
$
15,552
Accrued host payments and insurance fees
15,445
13,192
Operating lease liabilities, current
2,355
2,268
Notes payable, current
1,595
19,904
Other accrued liabilities
44,611
48,107
Deferred revenue
1,547
684
Total Current Liabilities $
76,337
$
99,707
Notes payable, net of current portion
33,250
2,122
Convertible notes payable($66,390 and $40,370 measured at fair
value, respectively)
66,489
40,469
Operating lease liabilities (net of current portion)
14,839
15,487
Deferred tax liabilities
257
212
Warrant liability
26
20
Total Liabilities $
191,198
$
158,017
Stockholders’ Equity (Deficit) Common stock, $0.0001 par
value, 1,000,000,000 shares authorized, 93,105,059 and 92,827,281
shares issued and outstanding as of March 31, 2024 and December 31,
2023, respectively $
9
$
9
Additional paid-in capital
862,462
859,163
Stockholder notes
(8,284
)
(8,284
)
Accumulated deficit
(906,920
)
(875,955
)
Accumulated other comprehensive income
25,522
28,186
Total Stockholders’ Equity (Deficit) $
(27,211
)
$
3,119
Total Liabilities and Stockholders’ Equity (Deficit)
$
163,987
$
161,136
Consolidated Statements of Operations and Comprehensive
Loss (In thousands, except per share data)
Three Months Ended
March 31, 2024
Three Months Ended
March 31, 2023
Service revenue $
16,806
$
11,199
Lease revenue
350
321
Total Revenues $
17,156
$
11,520
Costs and Expenses Cost of revenue (exclusive of
amortization and depreciation shown separately below): Service $
1,916
$
1,345
Lease
40
39
Sales and marketing
3,232
3,640
Operations and support
14,610
12,102
Technology and product development
4,119
3,839
General and administrative
13,949
14,368
Depreciation and amortization
3,873
2,482
Total Operating Expenses $
41,739
$
37,815
Loss from Operations $
(24,583
)
$
(26,295
)
Other Income (Expense) Convertible promissory note and note payable
fair value adjustment
(17,381
)
2,920
Warrant liability fair value adjustment
(6
)
(11
)
Interest income (expense), net
(95
)
206
Other income, net
11,151
210
Total Other Income (Expense) $
(6,331
)
$
3,325
Loss before Benefit for Income Taxes $
(30,914
)
$
(22,970
)
Income Tax Expense (Benefit)
51
(171
)
Net Loss $
(30,965
)
$
(22,799
)
Change in fair value of the convertible instrument liability
(353
)
—
Foreign Currency Translation (Loss) Gain
(2,311
)
821
Comprehensive Loss $
(33,629
)
$
(21,978
)
Net Loss Per Share Attributable to Stockholders:
Basic
(0.32
)
(0.25
)
Diluted
(0.32
)
(0.25
)
Weighted average shares outstanding (Basic and Diluted)
96,675,724
92,308,288
Non-GAAP Financial Measures
We use 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
March 31, 2024
Three Months Ended
March 31, 2023
Gross profit from Service revenue $
13,886
$
9,033
Gross margin from Service revenue
83
%
81
%
Plus: Cost of Service revenue, amortization and depreciation
1,004
821
Less: Trip support costs
(8,136
)
(4,975
)
Trip Contribution Profit $
6,754
$
4,879
Trip Contribution Margin
40
%
44
%
Gross Profit and Gross Margin (In
thousands, except percentages)
Three Months Ended
March 31, 2024
Three Months Ended
March 31, 2023
Service revenue $
16,806
$
11,199
Less: Cost of Service revenue, net of amortization and depreciation
(1,916
)
(1,345
)
Less: Cost of Service revenue, amortization and depreciation
(1,004
)
(821
)
Gross profit from Service revenue $
13,886
$
9,033
Gross margin from Service revenue
83
%
81
%
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; and (vi) certain expenses determined to be
incurred outside of the regular course of business which include
certain restructuring expenses. 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
March 31, 2024
Three Months Ended
March 31, 2023
Net Loss $
(30,965
)
$
(22,799
)
Plus: warrant liability, convertible promissory note and note
payable fair value adjustment
17,387
(2,909
)
Plus: interest and other income (expense), net
(11,056
)
(416
)
Minus: income tax expense (benefit)
51
(171
)
Plus: depreciation and amortization
3,873
2,482
Plus: stock-based compensation
3,299
3,565
Plus: expense not incurred in the regular course of business
2,129
392
Adjusted EBITDA $
(15,282
)
$
(19,856
)
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Investors: investors@getaround.com
Media: press@getaround.com
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