- Delivered Total Revenues of $23.8 million, increasing 42%
year-over-year, and reflecting an annualized run-rate of over $95
million
- Gross Booking Volume of $69 million, reflecting an annualized
run-rate of $276 million
- GAAP Net Loss of $27.3 million, a 16% improvement from the same
period last year
- Adjusted EBITDA loss of $11.3 million, a 43% improvement from
the same period last year
- Gross Margin from Service Revenue remained at 87%, up 27 basis
points year-over-year
- Trip Contribution Margin increased to 52%, up 640 basis points
year-over-year
Getaround (NYSE: GETR), the world's first connected carsharing
marketplace, today announced financial results for the period ended
September 30, 2023.
“Getaround is now the leader in gig car sharing. We believe our
performance in the third quarter marked an inflection point in our
growth as a company, with a significant increase in total revenues
over 2022, achieving an annualized revenue run-rate of $95
million,” said Sam Zaid, CEO and Founder of Getaround. “We’ve
greatly improved our unit economics as we’ve cycled through a few
quarters of our TrustScore A.I. and made significant progress
reducing our cost structure. We remain hyper-focused on delivering
profitable growth, expanding our margins, narrowing our losses, and
achieving our profitability goals, which we expect will drive value
for our shareholders.”
2023 Business Highlights
- Announced restructuring plan in February to reduce costs by $25
million-$30 million annually, streamlining operations and
increasing efficiency
- Acquired highly synergistic HyreCar assets in May, which we
believe will accelerate our path to profitability
- Launched TrustScore A.I., which is expected to enhance our
gross margin and carsharing marketplace safety
- Formed a strategic alliance with TransUnion, which is expected
to enhance risk management capabilities and Getaround marketplace
economics
Full Year 2023 Outlook
For the fiscal year ending December 31, 2023, the Company
expects:
- Gross Booking Value to be in the range of $200 million to $205
million
- Adjusted EBITDA loss to be in the range of $68 million to $70
million
The Company estimates that 2023 full year operating expenses
include approximately $22 million of costs that are not expected to
recur in 2024. These costs include heightened professional fees and
capital markets expenses following our business combination at the
end of 2022, together with the full benefit of restructuring
initiatives that were completed throughout the year.
The guidance provided above constitutes forward-looking
statements and actual results may differ materially. Refer to the
“Forward-Looking Statements” safe harbor section below for
information on the factors that could cause our actual results to
differ materially from these forward-looking statements.
Adjusted EBITDA is a non-GAAP financial measure and excludes
estimates for, among other things, stock-based compensation
expense, depreciation and amortization expense, contingent
compensation expense, and certain expenses determined to be
incurred outside of the regular course of business. A
reconciliation of this non-GAAP financial guidance measure to a
corresponding GAAP financial guidance measure is not available on a
forward-looking basis because the Company does not provide guidance
on GAAP Net Loss and is not able to present the various reconciling
cash and non-cash items between GAAP Net Loss and non-GAAP Adjusted
EBITDA without unreasonable effort. In particular, stock-based
compensation expense is impacted by the Company’s future hiring and
retention needs, as well as the future fair market value of its
common stock, all of which is difficult to predict and is subject
to change. The actual amount of these expenses during 2023 will
have a significant impact on the Company’s future GAAP financial
results.
Conference Call Details
Getaround will host a conference call with analysts to discuss
its third quarter 2023 results and business outlook today at 5:00
p.m. Eastern time. To listen to the conference call via the
Internet, please go to the Investors page of Getaround’s website.
To listen to the conference call via telephone, please call
1-877-704-4453 (domestic) or 1-201-389-0920 (international).
A replay of the conference call will be available starting at
9:00 p.m. Eastern time on December 14, 2023, until 11:59 p.m.
Eastern time on December 27, 2023, on the Investors page of
Getaround's website, or by calling 1-844-512-2921 (domestic) or
1-412-317-6671 (international), Access ID: 13743068.
About Getaround
Offering a 100% digital experience, Getaround (NYSE: GETR) makes
sharing cars and trucks simple through its proprietary cloud and
in-car 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 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 financial projections under “Full Year 2023 Outlook” and the
statements contained in the quotations of our Chief Executive
Officer with respect to expectations regarding the Company’s unit
economics and profitable growth 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, 2022. We have not filed our Form 10-Q for
the quarters ended March 31, June 30, and September 30, 2023. As a
result, all financial results described in this press release
should be considered preliminary, and are subject to change to
reflect any necessary adjustments or changes in accounting
estimates, that are identified prior to the time we file our Form
10-Qs. 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
Sheets
(preliminary and
unaudited)
(in thousands, except share
and per share data)
September 30, 2023
December 31, 2022
Assets
Current Assets
Cash and cash equivalents
$
22,164
$
64,294
Restricted cash
3,600
3,600
Accounts receivable, net
717
533
Prepaid expenses and other current
assets
7,598
6,084
Total Current Assets
$
34,079
$
74,511
Property and equipment, net
9,352
10,451
Operating lease right-of-use assets,
net
12,414
13,284
Goodwill
91,879
92,728
Intangible assets, net
15,552
11,028
Deferred tax assets
—
46
Other assets
3,938
3,371
Total Assets
$
167,214
$
205,419
Liabilities and Stockholders’
Equity
Current Liabilities
Accounts payable
$
12,548
$
3,652
Accrued host payments and insurance
fees
15,262
11,780
Operating lease liabilities, current
2,173
1,923
Notes payable, current
15,860
1,211
Warrant commitment liability
—
320
Other accrued liabilities
39,167
37,360
Deferred revenue
1,003
698
Total Current Liabilities
$
86,013
$
56,944
Notes payable
2,314
3,198
Convertible notes payable ($48,880 and
$56,743 measured at fair value, respectively)
48,979
56,842
Operating lease liabilities (net of
current portion)
16,030
17,715
Deferred tax liabilities
311
973
Warrant liability
78
247
Total Liabilities
$
153,725
$
135,919
Commitments and contingencies
Stockholders’ Equity
Common stock, $0.0001 par value,
1,000,000,000 shares authorized; 92,941,175 and 92,085,974 shares
issued and outstanding as of September 30, 2023 and December 31,
2022, respectively
$
9
$
9
Additional paid-in capital
856,539
845,888
Stockholder notes
(8,284
)
(8,284
)
Accumulated deficit
(842,423
)
(762,009
)
Accumulated other comprehensive loss
7,648
(6,104
)
Total Stockholders’ Equity
$
13,489
$
69,500
Total Liabilities and Stockholders’
Equity
$
167,214
$
205,419
Consolidated Statements of
Operations and Comprehensive Loss
(preliminary and
unaudited)
(in thousands, except per
share data)
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
Service revenue
$
23,387
$
16,355
$
52,810
$
43,967
Lease revenue
412
383
1,129
1,058
Total Revenues
$
23,799
$
16,738
$
53,939
$
45,025
Costs and Expenses
Cost of revenue (exclusive of items shown
separately below):
Service
$
1,920
$
1,439
$
4,995
$
3,754
Lease
32
33
107
90
Sales and marketing
4,118
6,577
15,486
22,736
Operations and support
16,874
14,455
45,000
39,596
Technology and product development
4,156
4,665
12,286
13,374
General and administrative
11,662
11,080
40,224
38,665
Depreciation and amortization
4,135
2,322
9,914
7,670
Total Operating Expenses
$
42,897
$
40,571
$
128,012
$
125,885
Loss from Operations
$
(19,098
)
$
(23,833
)
$
(74,073
)
$
(80,860
)
Other Income (Expense)
Convertible promissory note fair value
adjustment
(8,441
)
2,140
(7,765
)
3,896
Note payable fair value adjustment
(245
)
—
(245
)
—
Warrant fair value adjustment
36
(8,804
)
209
(17,521
)
Interest income (expense), net
222
(2,660
)
506
(7,903
)
Other income (expense), net
(64
)
572
331
1,258
Total Other Income (Expense)
$
(8,492
)
$
(8,752
)
$
(6,964
)
$
(20,270
)
Loss, before Benefit for Income
Taxes
$
(27,590
)
$
(32,585
)
$
(81,037
)
$
(101,130
)
Income Tax Benefit
(244
)
(166
)
(623
)
(547
)
Net Loss
$
(27,346
)
$
(32,419
)
$
(80,414
)
$
(100,583
)
Change in fair value of the convertible
instrument liability
15,628
—
15,628
—
Foreign Currency Translation
Loss
(2,111
)
(8,047
)
(1,876
)
(19,553
)
Comprehensive Loss
$
(13,829
)
$
(40,466
)
$
(66,662
)
$
(120,136
)
Net Loss Per Share Attributable to
Stockholders:
Basic
(0.29
)
(1.38
)
(0.87
)
(4.41
)
Diluted
(0.29
)
(1.38
)
(0.87
)
(4.41
)
Weighted average shares outstanding (Basic
and Diluted)
93,205
23,503
92,708
22,792
Non-GAAP Financial Measures
To supplement our financial results presented in accordance with
Generally Accepted Accounting Principles (GAAP), this press release
contains certain non-GAAP financial measures, including Net
Marketplace Value, Trip Contribution Profit, Trip Contribution
Margin and Adjusted EBITDA. We believe these non-GAAP financial
measures are helpful in understanding our past financial
performance and future results. Our non-GAAP financial measures
should not be considered in isolation or as a substitute for
comparable GAAP measures and should be read in conjunction with our
consolidated financial statements prepared in accordance with GAAP.
Our management regularly uses our supplemental non-GAAP financial
measures internally to understand and manage our business and
forecast future periods. These non-GAAP financial measures are not
based on any standardized methodology prescribed by GAAP and are
not necessarily comparable to similar measures presented by other
companies. 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.
Our non-GAAP Financial measures are described as follows:
Net Marketplace Value. Net Marketplace Value (NMV) represents
the dollar value of all transactions on our platform contributing
to service revenue during a period, charged to both guests and
hosts, net of cancellations, hosts’ earnings, incentives, and
pass-throughs.
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.
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: 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.
The following tables present reconciliations of the non-GAAP
financial measures used in this press release from the most
comparable GAAP measures for the periods presented:
Net Marketplace Value
Three Months Ended September
30,
(In thousands, preliminary and
unaudited)
2023
2022
Service Revenues
$
23,387
$
16,355
Plus: EU insurance share
7,367
6,387
Net Marketplace Value
$
30,754
$
22,742
Trip Contribution Margin
Three Months Ended September
30,
(In thousands, except percentages,
preliminary and unaudited)
2023
2022
Service revenue
$
23,387
$
16,355
Less: Cost of Service revenue, net of
amortization and depreciation
(1,920
)
(1,439
)
Less: Cost of Service revenue,
amortization and depreciation
(1,045
)
(678
)
Gross profit from Service revenue
$
20,422
$
14,238
Gross margin from Service revenue
87%
87%
Three Months Ended September
30,
(In thousands, except percentages,
preliminary and unaudited)
2023
2022
Gross profit from Service revenue
$
20,422
$
14,238
Gross margin from Service revenue
87%
87%
Plus: Cost of Service revenue,
amortization and depreciation
1,045
678
Less: Trip support costs
(9,397
)
(7,522
)
Trip Contribution Profit
12,070
7,394
Trip Contribution Margin
52%
45%
Adjusted EBITDA
Three Months Ended September
30,
(In thousands, preliminary and
unaudited)
2023
2022
Net Loss
$
(27,346
)
$
(32,419
)
Plus: warrant liability, convertible
promissory note and securities fair value adjustment
8,650
6,664
Plus: interest and other income (expense),
net
(158
)
2,088
Minus: income tax provision
(244
)
(166
)
Plus: depreciation and amortization
4,135
2,322
Plus: stock-based compensation
3,548
1,275
Plus: expense not incurred in the regular
course of business
138
391
Adjusted EBITDA
(11,277
)
(19,845
)
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