Core Insights - Roamly has launched a proprietary Carshare Insurance product aimed at commercial fleet vehicle operators, enhancing insurance protection for car sharing marketplaces [1][5] - The global car sharing market is projected to reach $51.7 billion by 2030, indicating significant growth potential for Roamly's offerings [2][5] - The first integration of Roamly Carshare is live on Getaround, providing coverage for their Power User communities [2][4] Company Overview - Roamly is an API-enabled digital insurance platform that offers a suite of unique digital insurance products, including Carshare Insurance, designed to meet the needs of car sharing users [1][10] - The platform aims to eliminate the commercial use exclusion clause, allowing for seamless integration of insurance products into peer-to-peer marketplaces [10] Industry Context - The car sharing market is experiencing rapid growth, driven by a shift towards environmentally-friendly transportation and mobility-on-demand options [4][5] - Getaround, as a pioneer in the car sharing industry, is leveraging Roamly's insurance solutions to enhance user experience and provide peace of mind for vehicle owners [6][9]

Company Overview - As of March 31, 2024, Getaround supports approximately 2.1 million unique guests and has around 75,000 active cars in over 1,000 cities across 8 countries [161]. - Getaround has facilitated approximately 8.1 million carsharing trips, with hosts earning more than $540 million through the platform [162]. - The company appointed Mr. Eduardo Iniguez as CEO on February 26, 2024, succeeding co-founder Mr. Sam Zaid [166]. Financial Performance - Service revenue for Q1 2024 was $16,806,000, a 50.5% increase from $11,199,000 in Q1 2023 [207]. - Total revenues for Q1 2024 reached $17,156,000, compared to $11,520,000 in Q1 2023, reflecting a growth of 48.5% [207]. - The net loss for Q1 2024 was $30,965,000, compared to a net loss of $22,799,000 in Q1 2023, showing a deterioration of 35.7% [207]. - Comprehensive loss for Q1 2024 was $33,629,000, compared to $21,978,000 in Q1 2023, reflecting an increase of 52.9% [207]. - Adjusted EBITDA for the three months ended March 31, 2024, was a loss of $15.3 million, an improvement of $4.6 million or 23% from a loss of $19.9 million in the same period last year [241]. Revenue and Cost Structure - Getaround generates revenue primarily from fees charged to guests and subscriptions from hosts, with a significant portion of revenue dependent on Powerhosts [179]. - The average commission charged to hosts is approximately 40%, with hosts retaining 60% of the Trip Price [183]. - Total operating expenses for Q1 2024 were $41,739,000, up from $37,815,000 in Q1 2023, indicating an increase of 10.5% [207]. - Operations and support expenses increased to $14,610,000 in Q1 2024 from $12,102,000 in Q1 2023, representing a rise of 20.7% [207]. - Sales and marketing expenses decreased to 19% of total revenues in Q1 2024 from 32% in Q1 2023 [208]. - Technology and product development expenses accounted for 24% of total revenues in Q1 2024, down from 33% in Q1 2023 [208]. Market Impact and Future Outlook - The suspension of carsharing operations in New York State is expected to reduce annualized service revenue by $5 million to $7 million but improve annualized trip contribution profit by an estimated $2 million [165]. - The company expects to continue incurring operating losses and negative cash flows as it develops and promotes its platform globally [243]. Legal and Settlement Matters - A settlement payment of $15 million was received from Broadspire, resulting in a net payment of approximately $10.3 million after legal fees [168]. - Other income increased significantly by $10.9 million, or 5210%, to $11.2 million, mainly due to a $10.8 million gain from the Broadspire settlement [221]. Cash Flow and Financial Position - Cash and cash equivalents as of March 31, 2024, were $24.5 million, with net cash provided by financing activities amounting to $21.2 million during the same period [242][248]. - Operating activities used $11.1 million in cash for the three months ended March 31, 2024, compared to $21.6 million in the same period of 2023 [246]. - Total contractual obligations as of March 31, 2024, amounted to $240.7 million, with long-term debt obligations of $217.8 million [249]. Accounting and Valuation - The company prepares financial statements in accordance with GAAP, requiring management to make estimates and assumptions that significantly impact reported amounts of assets, liabilities, revenue, and expenses [252]. - Critical accounting policies include business combination accounting under ASC 805, revenue recognition under ASC 606, and stock-based compensation under ASC 718 [253]. - Fair value measurements are based on orderly transactions between market participants, utilizing significant unobservable inputs for certain assets and liabilities [255]. - Stock-based compensation expense is measured based on estimated fair value at grant date, influenced by stock price volatility and other subjective variables [263].

Getaround, Inc. (GETR) came out with a quarterly loss of $0.32 per share versus the Zacks Consensus Estimate of a loss of $0.20. This compares to loss of $0.25 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -60%. A quarter ago, it was expected that this company would post a loss of $0.21 per share when it actually produced a loss of $0.36, delivering a surprise of -71.43%.Over the last four quarters, the company has surpassed ...

Financial Performance - Total Revenues reached $17.2 million, representing a 49% increase year-over-year[9] - Gross Booking Value was $44.9 million, an increase of 41% year-over-year[9] - Gross Profit from Service Revenue amounted to $13.9 million, up 54% year-over-year, with a gross margin of 83%[9] - Trip Contribution Profit increased to $6.8 million, a 38% rise year-over-year, with a Trip Contribution Margin of 40%[9] - GAAP Net Loss was $31.0 million, a 36% decrease from the previous year[9] - Adjusted EBITDA loss improved to $15.3 million, reflecting a 23% improvement year-over-year[9] - Service revenue for the three months ended March 31, 2024, was $16,806,000, up from $11,199,000 in the same period of 2023, representing a growth of 50.5%[21] - Gross profit from Service revenue increased to $13,886,000 for the three months ended March 31, 2024, compared to $9,033,000 in the prior year, resulting in a gross margin improvement from 81% to 83%[21] - Adjusted EBITDA for the three months ended March 31, 2024, was $(15,282,000), an improvement from $(19,856,000) in the same period of 2023[23] - The net loss for the three months ended March 31, 2024, was $(30,965,000), compared to $(22,799,000) in the prior year[23] Operational Changes - The company secured $20 million in financing in January and an additional $50 million in April, totaling up to $70 million for operations and growth investments into 2025[5] - The restructuring of operations is expected to reduce total operating expenses, with benefits reflected in the second quarter financial results and beyond[5] - The company suspended consumer carsharing operations in New York State due to high insurance costs, which are fifty times greater than those required for rental car companies[5] Future Outlook - The company anticipates continued improvement in Adjusted EBITDA beginning in the second quarter of 2024[6] Expense Details - The fair value adjustment of warrant liability and convertible promissory notes contributed $17,387,000 to the Adjusted EBITDA calculation for the three months ended March 31, 2024[23] - Depreciation and amortization expenses increased to $3,873,000 for the three months ended March 31, 2024, from $2,482,000 in the same period of 2023[23] - Stock-based compensation expense was $3,299,000 for the three months ended March 31, 2024, slightly down from $3,565,000 in the prior year[23] - The company incurred $2,129,000 in expenses not related to the regular course of business for the three months ended March 31, 2024, compared to $392,000 in the same period of 2023[23]

Financial Performance - The company reported a net loss before provision for income taxes of $113.9 million for the year ended December 31, 2023, compared to a net loss of $136.7 million for 2022[75]. - Cash flow from operations was negative for both 2023 and 2022, indicating potential challenges in achieving positive cash flow in the future[75]. - Revenue is recognized over trip duration, which may delay the reflection of significant changes in trip bookings in financial results[149]. - Revenue growth is dependent on the supply and demand for shared vehicles, and the company may struggle to maintain its growth rate in the future[162]. - Seasonal fluctuations in revenue are expected, with higher earnings typically in the third and fourth quarters due to increased travel[164]. - The company may experience significant operational fluctuations, making it difficult to project future results[165]. Operational Challenges - The company has scaled back efforts to reduce costs, including workforce reductions and suspending discretionary marketing spend, but these measures may not sufficiently increase revenues or decrease costs[75]. - The company has a limited operating history at its current scale, having grown rapidly through acquisitions, including Getaround SAS in 2019 and HyreCar in May 2023[79]. - Intense competition exists in the carsharing market, with competitors having advantages such as larger marketing budgets and greater brand recognition[81]. - The company faces risks from economic conditions that could adversely affect consumer spending and demand for vehicle bookings[89]. - Fluctuations in fuel prices and availability pose risks to the company's operations, potentially impacting demand for its marketplace[90]. - Costs to launch or operate in new markets may exceed expectations, hindering market entry or continued operations[93]. - The company faces challenges in retaining hosts due to insufficient earnings from sharing vehicles, which may not offset their ownership costs[97]. - A significant portion of hosts may opt to share vehicles on competing platforms if the company fails to generate sufficient demand[97]. Supply Chain and Technology Risks - The company has experienced supply chain disruptions affecting the manufacturing and delivery of Getaround Connect IoT devices, which are crucial for connected cars[104]. - The global parts shortage has limited the supply of certain components needed for the company's devices since 2020, impacting growth potential[105]. - The company relies on third-party suppliers for critical components, and any disruption in these relationships could severely limit growth[104]. - The effectiveness of the Connect IoT devices relies on data connectivity, and any failure in information technology systems could lead to significant operational disruptions[180]. - Issues with the installation of the Connect IoT device could lead to operational failures, resulting in loss of business and negatively impacting financial results[178]. Regulatory and Compliance Risks - The company is subject to various laws and regulations governing payments, which may impose conflicting obligations and increase liability risks[213]. - Compliance with economic and trade sanctions laws is critical, as failure to comply could negatively impact the company's financial condition and results of operations[201]. - The company faces risks from overlapping investigations and regulatory proceedings due to the complexity of global regulatory environments, which could impact relationships with financial institutions[215]. - The company must strengthen internal controls to manage customer funds accurately, as failure to do so could lead to reputational harm and significant penalties[216]. - Compliance with privacy and data protection laws, such as GDPR, may lead to significant compliance costs and risks of regulatory fines, with penalties up to €20 million or 4% of annual global revenue for noncompliance[237]. Insurance and Liability Risks - Insurance costs have risen significantly as the business has grown, with challenges in obtaining adequate coverage at reasonable costs, potentially impacting financial condition[120]. - The company has established insurance reserves for claims, but the ultimate liability could exceed these reserves, posing a risk to financial stability[121]. - The company faces potential liability for information or content available in its marketplace, which could lead to claims of defamation, negligence, or intellectual property infringement[204]. - The company faces risks from personal injury and property damage claims arising from shared vehicle usage, with potential liabilities that may exceed insurance coverage limits[249]. Market and Competitive Landscape - The company primarily serves hosts and guests in large metropolitan areas, making it vulnerable to disruptions in these regions[92]. - Retaining hosts and guests is critical; failure to do so could materially impact revenue and overall business performance[94]. - Powerhosts, defined as hosts sharing three or more cars, contributed approximately 64% of the Gross Booking Value (GBV) for the year ended December 31, 2023[102]. - Collaborations with OEMs and ridesharing apps are critical, but their success is uncertain and could impact future revenue generation[132]. Human Resources and Management - Attracting and retaining skilled management and employees is essential, with the loss of key personnel posing a risk to business operations[136]. - Competition for qualified employees is intense, particularly in key operational regions, which could hinder the company's growth and innovation[137]. Financial Stability and Capital Requirements - The company issued $175.0 million aggregate principal amount of convertible senior secured notes[154]. - The company is required to maintain a minimum liquidity amount of at least $10.0 million under the Convertible Notes Indenture[155]. - The company may not have sufficient cash or financing options to repurchase or repay the Convertible Notes at maturity, which could lead to defaults[157]. - The company faces risks related to bad debt, which could lead to increased operating expenses and reduced marketplace activity[161]. - The current cash runway may be insufficient to achieve or maintain positive cash flow, necessitating additional capital[268]. Stock and Market Performance - The company's common stock has experienced significant volatility, with prices ranging from a high of $8.88 to a low of $0.138 since the business combination[264]. - The company’s public warrants were delisted from NYSE and are now quoted on the OTC Pink Market, which may limit liquidity and market interest[263]. - Sales of substantial amounts of common stock could adversely affect the market price and liquidity of the stock[271]. Legal Proceedings and Investigations - The company is currently involved in multiple legal proceedings, including civil complaints and class actions related to misclassification of employment status, which could lead to significant financial damages[246]. - The company has received notices from NYSE regarding non-compliance with listing standards, including an average closing price below $1.00 per share and a market capitalization below $50 million[260].

[Getaround Full Year 2023 Results](index=1&type=section&id=Getaround%20Full%20Year%202023%20Results) [Executive Summary & Business Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Business%20Highlights) Getaround appointed new leadership in early 2024, secured **$20 million** financing, and focused on profitability through cost reduction and strategic acquisitions - A new leadership team was appointed in early 2024, with Jason Mudrick as Chairperson and Eduardo Iniguez as CEO, following a **$20 million** financing agreement with Mudrick Capital[3](index=3&type=chunk) - The company's near-term strategic focus is to stabilize the business, reduce losses, and then pursue thoughtful growth[4](index=4&type=chunk) - Restructured operations to reduce annualized Total Operating Expenses by more than **$25 million** as of Q4 2023[5](index=5&type=chunk) - Acquired HyreCar assets to expand its relationship with Uber and strengthen its position in the gig carsharing market[5](index=5&type=chunk) - Launched a next-generation AI-based TrustScore model and partnered with TransUnion to reduce claims and insurance costs[5](index=5&type=chunk) [Financial Performance](index=2&type=section&id=Financial%20Performance) Getaround's 2023 revenue grew **22%** to **$72.7 million** due to acquisitions, with significant improvements in net loss and Adjusted EBITDA loss Full Year 2023 Financial Highlights | Metric | FY 2023 | FY 2022 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenues | $72.7 million | $59.5 million | +22% | | Gross Booking Value | $204 million | Not specified | +16% | | Trip Contribution Margin | 40% | 47% | -7 p.p. | | GAAP Net Loss | $(113.9) million | $(136.1) million | 16% improvement | | Adjusted EBITDA loss | $(72.0) million | $(89.7) million | 20% improvement | - The acquisition of HyreCar assets was the primary driver of revenue growth in 2023[7](index=7&type=chunk) - The decrease in Trip Contribution Margin was attributed to increased trip support costs in New York State and insurance liabilities from the HyreCar acquisition, which are not expected to recur in 2024[7](index=7&type=chunk) [Operational Updates](index=2&type=section&id=Operational%20Updates) Getaround suspended New York State consumer car sharing operations due to prohibitively high insurance costs mandated by state law - The company suspended consumer car sharing operations in New York State, effective April 1, 2024[6](index=6&type=chunk) - The suspension was due to the prohibitively high cost of insurance required by the New York P2P Carsharing Act, which mandates limits 50 times greater than for rental car companies[6](index=6&type=chunk) [Financial Statements](index=3&type=section&id=Financial%20Statements) The consolidated financial statements for 2023 show decreased cash and equity, alongside revenue growth and reduced operating and net losses [Consolidated Balance Sheet](index=3&type=section&id=Consolidated%20Balance%20Sheet) As of December 31, 2023, total assets decreased to **$161.1 million**, liabilities increased, and stockholders' equity significantly declined to **$3.1 million** Key Balance Sheet Items (in thousands) | Item | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $15,624 | $64,294 | | Total Assets | $161,136 | $205,419 | | Total Liabilities | $158,017 | $135,919 | | Total Stockholders' Equity | $3,119 | $69,500 | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) For FY2023, total revenues increased to **$72.7 million**, with loss from operations narrowing to **$99.4 million** and net loss improving to **$113.9 million** Key Statement of Operations Items (in thousands) | Item | Year ended Dec 31, 2023 | Year ended Dec 31, 2022 | | :--- | :--- | :--- | | Total Revenues | $72,680 | $59,455 | | Total Operating Expenses | $172,110 | $240,424 | | Loss from Operations | $(99,430) | $(180,969) | | Net Loss | $(113,946) | $(136,065) | | Net Loss Per Share (Basic) | $(1.23) | $(5.00) | [Non-GAAP Financial Measures](index=5&type=section&id=Non-GAAP%20Financial%20Measures) Getaround uses non-GAAP metrics like Trip Contribution Profit/Margin and Adjusted EBITDA to assess core operating performance and underlying business trends - The company uses non-GAAP measures like Trip Contribution Profit, Trip Contribution Margin, and Adjusted EBITDA to assess performance, evaluate business strategies, and prepare budgets[17](index=17&type=chunk) [Trip Contribution Profit and Margin](index=5&type=section&id=Trip%20Contribution%20Profit%20and%20Margin) In 2023, Trip Contribution Profit slightly increased to **$28.3 million**, but the margin decreased to **40%** due to rising direct costs Trip Contribution Profit Reconciliation (in thousands) | Metric | Year Ended Dec 31, 2023 | Year Ended Dec 31, 2022 | | :--- | :--- | :--- | | Gross profit from Service revenue | $60,640 | $49,679 | | Trip Contribution Profit | $28,319 | $27,404 | | **Trip Contribution Margin** | **40%** | **47%** | - Trip Contribution Profit is defined as gross profit from Service revenue adjusted for cost of Service revenue and trip support costs (auto insurance, claims support, and customer relations)[19](index=19&type=chunk) [Adjusted EBITDA](index=6&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA loss significantly improved by **20%** to **$72.0 million** in 2023, reflecting positive impacts from cost optimization efforts Adjusted EBITDA Reconciliation (in thousands) | Metric | Year Ended Dec 31, 2023 | Year Ended Dec 31, 2022 | | :--- | :--- | :--- | | Net Loss | $(113,946) | $(136,065) | | **Adjusted EBITDA** | **$(72,018)** | **$(89,717)** | - Adjusted EBITDA is defined as net income adjusted for items including fair value adjustments, interest, taxes, depreciation, amortization, stock-based compensation, and certain non-recurring expenses[22](index=22&type=chunk)

SAN FRANCISCO--(BUSINESS WIRE)--Getaround (NYSE: GETR) (“Getaround'' or “the Company”), the world’s first connected carsharing marketplace, today announced the promotion of AJ Lee, Getaround’s former General Manager of Gig, to Chief Operating Officer. In this role, Lee will report to Getaround CEO Eduardo Iniguez, to accelerate the Company's growth and path to profitability. Lee will have broad responsibilities including operations, marketing, sales and other functions to drive operational excellence across ...

SAN FRANCISCO--(BUSINESS WIRE)--Getaround (NYSE: GETR), the world's first connected carsharing marketplace, announced that on February 26, 2024, its Board of Directors granted to its new Chief Executive Officer, Eduardo Iniguez, employment inducement awards consisting of the following: (i) an option to purchase up to 11,100,000 shares of the Company’s common stock at an exercise price of $0.25 per share, which shares will vest in four annual 25% installments; and (ii) an option to purchase up to 76,950,000 ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited financial statements for H1 2023 show decreased assets, increased liabilities, reduced equity, a net loss of $53.1 million, and a going concern uncertainty [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of June 30, 2023, reflects a significant decrease in cash and total assets, alongside an increase in total liabilities, leading to a substantial drop in stockholders' equity Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $24,658 | $64,294 | | Total Current Assets | $36,942 | $74,511 | | Total Assets | $175,491 | $205,419 | | **Liabilities & Equity** | | | | Total Current Liabilities | $75,632 | $56,944 | | Total Liabilities | $151,768 | $135,919 | | Total Stockholders' Equity | $23,723 | $69,500 | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) For H1 2023, revenues grew to $30.1 million and the net loss narrowed to $53.1 million from $68.2 million in the prior year period Statement of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $18,620 | $15,792 | $30,140 | $28,287 | | Loss from Operations | $(28,680) | $(30,538) | $(54,975) | $(57,027) | | Net Loss | $(30,269) | $(39,419) | $(53,068) | $(68,164) | | Net Loss Per Share (Basic & Diluted) | $(0.33) | $(1.75) | $(0.57) | $(3.04) | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For H1 2023, net cash used in operating activities improved to $28.6 million, while investing activities used $10.5 million, resulting in a $39.6 million decrease in cash Cash Flow Summary (in thousands) | Metric | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | $(28,614) | $(36,635) | | Net Cash Used in Investing Activities | $(10,547) | $(1,092) | | Net Cash Provided by (Used in) Financing Activities | $(650) | $29,642 | | Net change in cash and restricted cash | $(39,636) | $(10,126) | | Cash, Cash Equivalents and Restricted Cash, end of period | $28,258 | $56,339 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail significant events including the HyreCar acquisition, a going concern warning, debt defaults, and subsequent financing activities - The company's ability to continue as a **going concern** is in substantial doubt due to a history of losses and negative cash flows[34](index=34&type=chunk)[36](index=36&type=chunk) - On May 16, 2023, the company acquired substantially all assets of HyreCar Inc for an aggregate purchase price of **$8.13 million**[43](index=43&type=chunk)[44](index=44&type=chunk) - The company received **default notices** for failure to timely file reports as required by the indenture for the Mudrick Convertible Notes[89](index=89&type=chunk)[139](index=139&type=chunk)[140](index=140&type=chunk) - Subsequent to the quarter end, the company entered into new promissory note agreements and **defaulted on lease payments** for its San Francisco headquarters[141](index=141&type=chunk)[143](index=143&type=chunk)[150](index=150&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses an 18% Q2 revenue increase driven by the HyreCar acquisition, improved Adjusted EBITDA loss, and significant liquidity challenges raising going concern doubts [Results of Operations](index=34&type=section&id=Results%20of%20Operations) Q2 2023 revenues rose 18% to $18.6 million due to the HyreCar acquisition, while net loss improved, reflecting reduced marketing spend and lower interest expense Revenue Comparison (in thousands) | Period | 2023 | 2022 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Three Months Ended June 30** | $18,620 | $15,792 | $2,828 | 18% | | **Six Months Ended June 30** | $30,140 | $28,287 | $1,853 | 7% | - The increase in revenue was primarily driven by incremental service revenue of **$4.4 million** from the acquisition of HyreCar assets[187](index=187&type=chunk)[223](index=223&type=chunk) - Sales and marketing expenses **decreased by $1.5 million (16%)** in Q2 2023 and **$4.8 million (30%)** in H1 2023, reflecting a cost control strategy and restructuring[191](index=191&type=chunk)[227](index=227&type=chunk) - Operations and support expenses **increased by $1.9 million (14%)** in Q2 2023, largely due to incremental costs from the HyreCar business combination[192](index=192&type=chunk) [Key Business Metrics and Non-GAAP Financial Measures](index=38&type=section&id=Key%20Business%20Metrics%20and%20Non-GAAP%20Financial%20Measures) In Q2 2023, Gross Booking Value grew 15% to $53.6 million and Adjusted EBITDA loss improved, though the number of trips slightly decreased Key Business Metrics (Q2) | Metric | Q2 2023 | Q2 2022 | Change (%) | | :--- | :--- | :--- | :--- | | Gross Booking Value (in thousands) | $53,561 | $46,450 | 15% | | Trips (in thousands) | 257 | 261 | -1% | Non-GAAP Financial Measures (Q2, in thousands) | Metric | Q2 2023 | Q2 2022 | | :--- | :--- | :--- | | Net Marketplace Value (NMV) | $24,306 | $20,997 | | Trip Contribution Profit | $7,885 | $6,879 | | Adjusted EBITDA | $(22,353) | $(24,306) | [Liquidity and Capital Resources](index=50&type=section&id=Liquidity%20and%20Capital%20Resources) The company's critical liquidity position, with only $24.7 million in cash, raises substantial doubt about its ability to continue as a going concern - Principal sources of liquidity are cash and cash equivalents, which stood at **$24.7 million** as of June 30, 2023[258](index=258&type=chunk) - The company has **insufficient capital** to fund its business operations, raising substantial doubt about its ability to continue as a going concern within one year[259](index=259&type=chunk)[261](index=261&type=chunk) Contractual Obligations as of June 30, 2023 (in thousands) | Obligation Type | Total | Less than 1 Year | 1-3 years | 3-5 years | More than 5 years | | :--- | :--- | :--- | :--- | :--- | :--- | | Long Term Debt | $178,808 | $573 | $2,306 | $175,929 | $0 | | Operating Lease | $25,985 | $2,044 | $8,429 | $8,825 | $6,687 | | **Total** | **$204,793** | **$2,617** | **$10,735** | **$184,754** | **$6,687** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=54&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes in its market risk compared to its most recent Annual Report on Form 10-K - There have been **no material changes** in market risk since the last Annual Report on Form 10-K[284](index=284&type=chunk) [Item 4. Controls and Procedures](index=54&type=section&id=Item%204.%20Controls%20and%20Procedures) The company reports no material changes in its internal controls and procedures since its last Annual Report - There have been **no material changes** in controls and procedures since the last Annual Report on Form 10-K[285](index=285&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=55&type=section&id=Item%201.%20Legal%20Proceedings) The company accrued $1.6 million for various pending claims and legal actions as of June 30, 2023 - For details on legal proceedings, the report refers to **Note 12** in the financial statements[288](index=288&type=chunk) - As of June 30, 2023, the company had accrued **$1.6 million** for various pending claims and legal actions[114](index=114&type=chunk) [Item 1A. Risk Factors](index=55&type=section&id=Item%201A.%20Risk%20Factors) The company states there have been no material changes to the risk factors previously disclosed in its Annual Report - There have been **no material changes** to the Risk Factors described in the Annual Report on Form 10-K for the year ended December 31, 2022[290](index=290&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=55&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or use of proceeds during the period - The company reports **'None'** for this item[290](index=290&type=chunk) [Item 3. Defaults Upon Senior Securities](index=55&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities, though defaults on reporting covenants are noted elsewhere - The company reports **'None'** for this item, however, defaults related to reporting covenants on the Mudrick Convertible Notes are disclosed elsewhere in the report[291](index=291&type=chunk)[139](index=139&type=chunk) [Item 5. Other Information](index=55&type=section&id=Item%205.%20Other%20Information) The company reported no other material information for this item - The company reports **'None'** for this item[293](index=293&type=chunk) [Item 6. Exhibits](index=56&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the report, including the HyreCar Asset Purchase Agreement and officer certifications - Exhibits filed include the **Asset Purchase Agreement with HyreCar Inc.** and required certifications by the Principal Executive Officer and Principal Financial Officer[295](index=295&type=chunk)

Business Overview - As of March 31, 2023, Getaround's platform supports approximately 1.8 million unique guests and has around 68,000 active cars in over 1,000 cities across 8 countries[150]. - Getaround has facilitated approximately 7.0 million carsharing trips, with hosts earning more than $440.0 million through the marketplace[151]. - The company entered into a definitive agreement to acquire HyreCar for a total consideration of $8.13 million, aimed at enhancing its position in gig carsharing[153]. Revenue Model - Getaround's revenue model includes Carsharing Revenue, Connect Subscription Revenue, and Parking Revenue, with Carsharing Revenue being the primary source[163][164]. - The average commission charged to hosts is approximately 40%, allowing hosts to retain around 60% of the Trip Price[160]. - Total revenues are presented net of incentives and refunds, with significant fluctuations driven by pricing strategies and market dynamics[168]. Expenses - Cost of Revenue includes payment-processing fees and server hosting charges, which may vary as a percentage of Total Revenues depending on booking activity[169][170]. - Sales and marketing expenses are expected to vary as a percentage of net revenue, influenced by digital and brand advertising efforts[171]. - Operations and support expenses are anticipated to increase with growth in key business metrics, reflecting the company's expansion[173]. - Getaround's technology and product development expenses are expected to vary as a percentage of Total Revenues, focusing on software and hardware innovation[174]. Financial Performance - Total revenues for the three months ended March 31, 2023, decreased by $1.0 million, or 8%, to $11.52 million compared to $12.495 million in the same period of 2022[185]. - Service revenue declined by $1.0 million, or 8%, primarily due to a $0.3 million increase in customer incentives and unfavorable currency fluctuations impacting revenue by $0.2 million[186]. - Lease revenue increased by $0.1 million, or 11%, driven by greater utilization of parking locations within the marketplace[187]. - Total operating expenses for the three months ended March 31, 2023, were $37.815 million, a slight decrease from $38.984 million in the same period of 2022[183]. - Sales and marketing expenses decreased by $3.3 million, or 48%, to $3.64 million, attributed to reduced advertising and compensation expenses[189]. - Operations and support expenses increased by $1.1 million, or 10%, to $12.102 million, mainly due to higher compensation costs[190]. - General and administrative expenses rose by $1.3 million, or 10%, to $14.368 million, largely due to increased compensation and insurance costs[192]. - The fair value adjustment for convertible promissory notes increased by $3.747 million, or 453%, reflecting significant fluctuations in fair value[194]. - Interest income (expense), net improved by $2.819 million, or 108%, due to the payoff of long-term debt that previously incurred interest expenses[196]. Future Expectations - The company expects that the implementation of the Getaround TrustScore will reduce insurance and claims costs by up to 50% in the future[185]. Key Metrics - For the three months ended March 31, 2023, Other income increased by $0.1 million, or 63%, to $0.21 million compared to $0.13 million in the same period of 2022, representing 2% of total revenues[198]. - Gross Booking Value (GBV) for the three months ended March 31, 2023, was $31.9 million, a decrease of $0.5 million, or 1%, from $32.2 million in the prior year, primarily due to Trust Score impacts and unfavorable currency fluctuations[203]. - The number of Trips facilitated increased by 2 thousand, or 1%, to 196 thousand in Q1 2023 from 194 thousand in Q1 2022, driven by repeat rentals from existing customers[206]. - Net Marketplace Value (NMV) for the three months ended March 31, 2023, was $15.5 million, a decrease of $0.6 million, or 4%, from $16.1 million in the prior year, primarily due to a $1.0 million decrease in Service revenue[211]. - Trip Contribution Profit for Q1 2023 was $4.9 million, a decrease of $1.2 million, or 20%, from $6.1 million in Q1 2022, largely due to a $1.0 million decrease in Service revenue[213]. - Adjusted EBITDA for the three months ended March 31, 2023, was a loss of $19.9 million, an improvement of $1.2 million, or 6%, from a loss of $21.1 million in the same period of the previous year, primarily driven by reduced marketing expenses[217]. Cash Flow and Financial Position - As of March 31, 2023, the company had cash and cash equivalents of $40.9 million, excluding restricted cash of $3.6 million[218]. - The company has incurred cumulative losses from inception through March 31, 2023, and expects to continue incurring additional losses for the foreseeable future, raising substantial doubt about its ability to continue as a going concern[220]. - Operating activities cash flows for Q1 2023 were $21.6 million, compared to $20.4 million in Q1 2022, reflecting a 5.9% increase[222]. - Cash flows used in investing activities for Q1 2023 totaled $1.7 million, up from $1.1 million in Q1 2022, representing a 54.5% increase[223]. - Net cash used in financing activities was $0.4 million in Q1 2023, compared to $0.1 million in Q1 2022, indicating a 300% increase[224]. - Total contractual obligations as of March 31, 2023, amounted to $206.1 million, with $179.1 million in long-term debt and $27.0 million in operating leases[225]. - The company incurred $0.4 million in capital expenditures for property and equipment and $1.3 million for capitalized software in Q1 2023[223]. - The effect of foreign currency translation on cash was a positive $0.2 million in Q1 2023, compared to a negative $0.4 million in Q1 2022[221]. - The net change in cash, cash equivalents, and restricted cash for Q1 2023 was a decrease of $23.4 million, compared to a decrease of $22.0 million in Q1 2022[221]. - The company’s cash flows from operating activities were impacted by changes in working capital, including sales volumes and timing of collections[222]. Legal and Valuation Considerations - The company is involved in various legal claims and contingencies that may impact future financial results[228]. - The fair value of the company's common stock is determined using a combination of income and market approaches, reflecting various subjective factors[233].