Roadzen Inc. (Nasdaq: RDZN), a global pioneer in
AI-driven insurance and mobility solutions, today reported its
first quarterly earnings since becoming a publicly listed entity.
The Company's second quarter of its fiscal year 2024 closed with
revenue reaching $15.4 million marking a 493% increase from the
same quarter last year. Management attributes this growth to
strategic acquisitions as well as organic revenue expansion of 89%.
Rohan Malhotra, Co-Founder and CEO of Roadzen,
stated, "We are pleased to announce that our first quarter as a
public company represents the best revenue quarter in our history,
concluding with $15.4 million in revenue and significant
year-over-year growth. As AI continues to reshape industry, Roadzen
is strategically positioned to become a global leader at the
intersection of mobility and insurance."
Malhotra further commented that, "Our revenue
growth, fueled by both strategic acquisitions and organic growth,
reflects our commitment to delivering innovative solutions within
the evolving auto insurance ecosystem. We are focused on bringing
onboard new clients, enhancing our embedded distribution model, and
employing AI to optimize operations. Roadzen's cutting-edge AI
uniquely positions us to be the preferred partner for insurers,
fleets and carmakers aiming to innovate their auto insurance
offerings."
The Company’s net loss of $31.1 million includes
$27.5 million of non-cash, non-recurring and other extraordinary
items resulting in an Adjusted EBITDA1 loss of $3.6 million. The
Adjusted EBITDA loss of $3.6 million compares to an Adjusted EBITDA
loss of $2.3 million in the same quarter of the prior year while
growing revenue 493% over the corresponding period.
Market Expansion and Strategic
Acquisitions: Roadzen has extended its global reach with
strategic acquisitions in the US and UK markets during June 2023.
The acquisition of Global Insurance Management Ltd. (GIM), a
prominent Managing General Agent specializing in auto insurance,
extended warranties and global claims management, solidifies our
position in the UK. Similarly, the acquisition of the National
Automobile Club (NAC), a California-based entity known for its
claims management expertise and round-the-clock commercial roadside
assistance, has bolstered our service offerings in the US.
Roadzen partners with 90 enterprise clients that
include leading insurers, automakers and large fleets, as well as
3,000 small and medium businesses including agents, brokers,
dealerships, and fleets under 100 vehicles.
About Roadzen Inc.Roadzen Inc.
(NASDAQ: RDZN) is a leading insurance technology company on a
mission to transform global auto insurance powered by advanced AI.
Thousands of clients - from some of the world's leading insurers,
fleets, and carmakers to small fleets, brokers, and insurance
agents - use Roadzen's technology to build new products, sell
insurance, process claims, and improve road safety. Roadzen's
pioneering work in telematics and computer vision has earned
recognition as a top AI innovator by publications such as Forbes,
Fortune, and Financial Express. Roadzen has approximately 400
employees across its global offices in the US, India, UK, and
France. For more information, visit www.roadzen.io.
Cautionary Statement Regarding Forward-Looking
Statements
This press release includes forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended (the “Securities Act”), and Section 21E of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”).
We have based these forward-looking statements on our current
expectations and projections about future events. These
forward-looking statements are subject to known and unknown risks,
uncertainties and assumptions about us that may cause our actual
results, levels of activity, performance or achievements to be
materially different from any future results, levels of activity,
performance or achievements expressed or implied by such
forward-looking statements. In some cases, you can identify
forward-looking statements by terminology such as “may,” “should,”
“could,” “would,” “expect,” “plan,” “anticipate,” “believe,”
“estimate,” and “continue,” or the negative of such terms or other
similar expressions. Such statements include, but are not limited
to, statements regarding our strategy, demand for our products,
expansion plans, future operations, future operating results,
estimated revenues, losses, projected costs, prospects, plans and
objectives of management, as well as all other statements other
than statements of historical fact included in this press release.
Factors that might cause or contribute to such a discrepancy
include, but are not limited to, those described in “Risk Factors”
in our Securities and Exchange Commission (“SEC”) filings,
including the definitive proxy statement/prospectus we filed with
the SEC on August 14, 2023. We urge you to consider these factors,
risks and uncertainties carefully in evaluating the forward-looking
statements contained in this press release. All subsequent written
or oral forward-looking statements attributable to our Company or
persons acting on our behalf are expressly qualified in their
entirety by these cautionary statements. The forward-looking
statements included in this press release are made only as of the
date of this release. Except as expressly required by applicable
securities law, we disclaim any intention or obligation to update
or revise any forward-looking statements whether as a result of new
information, future events or otherwise.
1. Adjusted EBITDA is a non-GAAP financial
metrics. See “Non-GAAP Financial Measures” at the end of this press
release for more information, including a reconciliation to the
nearest GAAP financial measure.
Roadzen Inc.Condensed
Consolidated Balance Sheets(in $, except per share
data and share count)
Particulars |
|
As ofSeptember
30,2023(Unaudited) |
|
As of March 31,2023 |
|
Assets |
|
|
|
|
|
Current
assets: |
|
|
|
|
|
Cash and cash equivalents |
|
8,109,694 |
|
589,340 |
|
Accounts receivable, net |
|
8,687,873 |
|
1,535,985 |
|
Inventories |
|
132,641 |
|
59,897 |
|
Prepayments and other current assets |
|
34,468,175 |
|
3,181,936 |
|
Total current
assets |
|
51,398,383 |
|
5,367,158 |
|
Restricted cash |
|
886,105 |
|
542,490 |
|
Non marketable securities |
|
4,910,030 |
|
4,910,030 |
|
Property and equipment,
net |
|
305,335 |
|
232,493 |
|
Goodwill |
|
2,304,159 |
|
996,441 |
|
Operating lease right-of-use
assets |
|
918,940 |
|
545,988 |
|
Intangible assets, net |
|
4,732,963 |
|
2,469,158 |
|
Other long term assets |
|
227,050 |
|
117,484 |
|
Total
assets |
|
65,682,965 |
|
15,181,242 |
|
|
|
|
|
|
|
Liabilities, mezzanine
equity and stockholders' deficit |
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
Current portion of long-term borrowings |
|
2,813,526 |
|
2,852,528 |
|
Short term borrowings |
|
14,052,206 |
|
4,875,801 |
|
Due to insurer |
|
8,175,754 |
|
— |
|
Accounts payable and accrued expenses |
|
30,584,429 |
|
6,241,066 |
|
Short-term operating lease liabilities |
|
455,830 |
|
208,697 |
|
Other current liabilities |
|
5,905,161 |
|
2,503,893 |
|
Total current
liabilities |
|
61,986,906 |
|
16,681,985 |
|
Long term borrowings |
|
234,351 |
|
653,269 |
|
Long-term operating lease
liabilities |
|
272,089 |
|
360,306 |
|
Other long term
liabilities |
|
954,048 |
|
294,301 |
|
Total
liabilities |
|
63,447,394 |
|
17,989,861 |
|
|
|
|
|
|
|
Commitments and
contingencies (refer note 22) |
|
|
|
|
|
|
|
|
|
|
|
Mezzanine
equity |
|
|
|
|
|
None authorized or issued as on September 30, 2023;Series A and A1
Preferred stock and additional paid in capital, $.0001 par value
per share, 81,635,738 shares authorized (Series A 5,442,383 and
Series A1 76,193,356); 39,868,173 shares issued and outstanding as
on March 31, 2023. |
|
— |
|
48,274,279 |
|
Stockholders'
deficit |
|
|
|
|
|
Preference shares, $.0001 par value per share, 60,000,000 shares
authorized and none issued as of September 30, 2023 and none
authorized or issued as on March 31, 2023 |
|
— |
|
— |
|
Common stock and additional paid in capital, $.0001 par value per
share, 220,000,000 shares authorized as of September 30 2023 and
$.0001 par value per share, 108,840,000 shares authorized as of
March 31, 2023 ; 68,440,829 shares and 16,501,984 shares issued and
outstanding as of September 30, 2023 and March 31, 2023
respectively |
|
84,980,325 |
|
303,213 |
|
Accumulated deficit |
|
(86,524,231 |
) |
(51,448,299 |
) |
Accumulated other comprehensive income/(loss) |
|
236,448 |
|
(66,903 |
) |
Other components of equity |
|
3,847,883 |
|
366,786 |
|
Total stockholders’
deficit |
|
2,540,425 |
|
(50,845,203 |
) |
Non controlling
interest |
|
(304,854 |
) |
(237,695 |
) |
Total
deficit |
|
2,235,571 |
|
(51,082,898 |
) |
Total liabilities,
Mezzanine equity and Stockholders’ deficit, Non
controlling interest |
|
65,682,965 |
|
15,181,242 |
|
|
|
Roadzen Inc.Unaudited
Condensed Consolidated Statements of Operations(in
$, except per share data and share count)
|
|
For the three months ended September
30, |
|
|
For the six months ended September
30, |
|
Particulars |
|
2023 |
|
2022 |
|
|
2023 |
|
2022 |
|
Revenue |
|
15,470,581 |
|
2,607,577 |
|
|
21,081,491 |
|
5,237,748 |
|
Costs and
expenses: |
|
|
|
|
|
|
|
|
|
|
Cost of services (exclusive of
depreciation and amortization shown separately) |
|
6,358,677 |
|
1,351,394 |
|
|
8,848,771 |
|
2,892,065 |
|
Research and development |
|
602,105 |
|
638,447 |
|
|
1,175,405 |
|
1,259,911 |
|
Sales and marketing |
|
10,059,347 |
|
2,237,701 |
|
|
13,526,403 |
|
4,171,971 |
|
General and
administrative |
|
5,577,477 |
|
656,198 |
|
|
8,179,460 |
|
1,113,061 |
|
Depreciation and
amortization |
|
413,315 |
|
369,420 |
|
|
780,853 |
|
772,259 |
|
Total costs and
expenses |
|
23,010,921 |
|
5,253,160 |
|
|
32,510,892 |
|
10,209,267 |
|
Loss from
operations |
|
(7,540,340 |
) |
(2,645,583 |
) |
|
(11,429,401 |
) |
(4,971,519 |
) |
Interest income/(expense) |
|
(617,470 |
) |
(150,816 |
) |
|
(835,424 |
) |
(203,738 |
) |
Fair value gains/(losses) in
financial instruments carried at fair value |
|
(23,590,000 |
) |
(4,676,734 |
) |
|
(23,590,000 |
) |
(5,026,894 |
) |
Other income/(expense)
net |
|
637,492 |
|
8,152 |
|
|
699,922 |
|
117,689 |
|
Total other
income |
|
(23,569,978 |
) |
(4,819,398 |
) |
|
(23,725,502 |
) |
(5,112,943 |
) |
Loss before income tax
expense |
|
(31,110,318 |
) |
(7,464,981 |
) |
|
(35,154,903 |
) |
(10,084,462 |
) |
Less: Income tax
(benefit)/expense |
|
10,939 |
|
3,447 |
|
|
33,350 |
|
2,008 |
|
Net Loss |
|
(31,121,257 |
) |
(7,468,428 |
) |
|
(35,188,253 |
) |
(10,086,470 |
) |
Net loss attributable to
non-controlling interest, net of tax |
|
(39,457 |
) |
(39,499 |
) |
|
(67,209 |
) |
(79,169 |
) |
Net loss attributable
to Roadzen Inc. |
|
(31,081,800 |
) |
(7,428,929 |
) |
|
(35,121,044 |
) |
(10,007,301 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to Roadzen Inc. common stockholders |
|
(31,081,800 |
) |
(7,428,929 |
) |
|
(35,121,044 |
) |
(10,007,301 |
) |
Basic and diluted |
|
(1.40 |
) |
(0.45 |
) |
|
(1.81 |
) |
(0.61 |
) |
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number
of shares outstanding used to compute net loss per share
attributable to Roadzen Inc. common stockholders |
|
22,272,967 |
|
16,501,984 |
|
|
19,387,476 |
|
16,501,984 |
|
|
|
|
|
|
|
|
|
|
|
|
Roadzen Inc.Unaudited
Condensed Consolidated Statements of Cash Flow (in $)
|
|
For the six months ended September
30, |
|
Particulars |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
Cash flows from
operating activities |
|
|
|
|
|
Net loss including non
controlling interest |
|
(35,188,253 |
) |
(10,086,470 |
) |
Adjustments to reconcile net
loss to net cash used in operating activities: |
|
|
|
|
|
Depreciation and amortization |
|
780,853 |
|
772,259 |
|
Stock based compensation |
|
3,526,209 |
|
- |
|
Deferred income taxes |
|
79,094 |
|
(89,509 |
) |
Unrealised foreign exchange loss/(profit) |
|
(28,884 |
) |
(4,672 |
) |
Fair value losses in financial instruments carried at fair
value |
|
23,590,000 |
|
5,026,894 |
|
Expected credit loss allowance |
|
171,946 |
|
- |
|
Lease equalisation reserve |
|
— |
|
(9,715 |
) |
Balances written off/(back) |
|
(1,609 |
) |
— |
|
Changes in assets and
liabilities, net of assets acquired and liabilities assumed from
acquisitions: |
|
|
|
|
|
Inventories |
|
(73,732 |
) |
(9,149 |
) |
Income taxes, net |
|
19,297 |
|
(47,545 |
) |
Accounts receivables, net |
|
4,352,472 |
|
169,205 |
|
Prepayments and other assets |
|
(30,343,651 |
) |
(627,470 |
) |
Accounts payable and accrued expenses and other current
liabilities |
|
19,106,908 |
|
(163,364 |
) |
Other liabilities |
|
(1,118,459 |
) |
412,803 |
|
Net cash used in
operating activities |
|
(15,127,809 |
) |
(4,656,733 |
) |
|
|
|
|
|
|
Cash flows from
investing activities |
|
|
|
|
|
Purchase of property and equipment, intangible assets and
goodwill |
|
(136,220 |
) |
(711,706 |
) |
Acquisition of business |
|
(5,748,000 |
) |
- |
|
Net cash used in
investing activities |
|
(5,884,220 |
) |
(711,706 |
) |
|
|
|
|
|
|
Cash flows from
financing activities |
|
|
|
|
|
Proceeds from business combination |
|
32,770 |
|
- |
|
Proceeds from issue of preferred stock |
|
6,079,409 |
|
- |
|
Proceeds from long-term borrowings |
|
2,805,418 |
|
2,164,728 |
|
Repayments of long-term borrowings |
|
(569,207 |
) |
(243,406 |
) |
Net proceeds/(payments) from short-term borrowings |
|
9,218,689 |
|
3,700,604 |
|
Net cash generated
from financing activities |
|
17,567,079 |
|
5,621,926 |
|
Effect of exchange rate
changes on cash and cash equivalents |
|
56,372 |
|
(26,055 |
) |
Net
(decrease)/increase in cash and cash equivalents (including
restricted cash) |
|
(3,388,578 |
) |
227,432 |
|
Cash acquired in business
combination |
|
11,252,547 |
|
- |
|
Cash and cash equivalents at
the beginning of the period (including restricted cash) |
|
1,131,830 |
|
1,086,418 |
|
Cash and cash
equivalents at the end of the period (including restricted
cash) |
|
8,995,799 |
|
1,313,850 |
|
|
|
|
|
|
|
Reconciliation of cash
and cash equivalents |
|
|
|
|
|
Cash and cash equivalents |
|
8,109,694 |
|
1,153,240 |
|
Restricted cash |
|
886,105 |
|
160,610 |
|
Total cash and cash
equivalents |
|
8,995,799 |
|
1,313,850 |
|
|
|
|
|
|
|
Supplemental
disclosure of cash flow information |
|
|
|
|
|
Cash paid for interest, net of
amounts capitalized |
|
378,064 |
|
145,061 |
|
Cash paid for income taxes,
net of refunds |
|
83,680 |
|
133,875 |
|
Non-cash investing and
financing activities |
|
|
|
|
|
Convertible preferred stock
issued on conversion of convertible notes |
|
— |
|
10,141,462 |
|
Consideration payable in
connection with acquisitions |
|
1,854,732 |
|
611,204 |
|
Interest accrued on
borrowings |
|
157,649 |
|
— |
|
Non-GAAP Financial Measures
Adjusted Earnings Before Interest, Tax,
Depreciation and Amortization (“Adjusted EBITDA”) is a non-GAAP
financial measure which excludes the impact of finance costs,
taxes, depreciation and amortization and certain other items from
reported net profit or loss. We believe that Adjusted EBITDA aids
investors by providing an operating profit/loss without the impact
of non-cash depreciation and amortization and certain other items
to help clarify sustainability and trends affecting the business.
For comparability of reporting, management considers non-GAAP
measures in conjunction with U.S. GAAP financial results in
evaluating business performance. Adjusted EBITDA should not be
considered a substitute for, or superior to, the measures of
financial performance prepared in accordance with U.S. GAAP. In
addition, Adjusted EBITDA does not purport to represent cash flow
provided by, or used for, operating activities in accordance with
GAAP and should not be used as a measure of liquidity.
The following table reconciles our net loss
reported in accordance with U.S. GAAP to Adjusted EBITDA
|
|
For the three months ended September
30, |
|
Particulars |
|
2023 |
|
2022 |
|
Net loss |
|
(31,121,257 |
) |
(7,468,428 |
) |
Adjusted for: |
|
|
|
|
Other (income)/expense
net |
|
(637,492 |
) |
(8,152 |
) |
Interest (income)/expense |
|
617,470 |
|
150,816 |
|
Fair value changes in
financial instruments carried at fair value |
|
23,590,000 |
|
4,676,734 |
|
Tax (benefit)/expense |
|
10,939 |
|
3,447 |
|
Depreciation and
amortization |
|
413,315 |
|
369,420 |
|
Stock based compensation
expense |
|
3,526,209 |
|
- |
|
Adjusted
EBITDA |
|
(3,600,816 |
) |
(2,276,163 |
) |
|
|
For the six months ended September
30, |
|
Particulars |
|
2023 |
|
2022 |
|
Net loss |
|
(35,188,253 |
) |
(10,086,470 |
) |
Adjusted for: |
|
|
|
|
Other (income)/expense
net |
|
(699,922 |
) |
(117,689 |
) |
Interest (income)/expense |
|
835,424 |
|
203,738 |
|
Fair value changes in
financial instruments carried at fair value |
|
23,590,000 |
|
5,026,894 |
|
Tax (benefit)/expense |
|
33,350 |
|
2,008 |
|
Depreciation and
amortization |
|
780,853 |
|
772,259 |
|
Stock based compensation
expense |
|
3,526,209 |
|
- |
|
Non-recurring expenses |
|
1,819,746 |
|
- |
|
Adjusted
EBITDA |
|
(5,302,593 |
) |
(4,199,260 |
) |
For more information, please contact:Investor
Contacts:Roadzen: Raghav Kansal (raghav@roadzen.io)ICR: Michael
Bowen & Dhruv Chopra (roadzenIR@icrinc.com)
Media Contacts:Roadzen: Sanya Soni
(sanya@roadzen.io)ICR: roadzenPR@icrinc.comGutenberg:
roadzen@thegutenberg.com
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