Roadzen (RDZN) - 2024 Q1 - Quarterly Results

Executive Summary & Fiscal Year Highlights Roadzen Inc. achieved record revenue growth in its first public fiscal year, managing a net loss from non-cash items through strategic expansion. Overall Performance Roadzen Inc. achieved record revenue growth in its first public fiscal year, navigating a net loss from non-cash items. - Roadzen Inc. reported record revenue growth in its first fiscal year as a public company, ending March 31, 2024[2][3] - Net loss of $99.7 million was primarily impacted by non-cash, non-recurring, and extraordinary items[2] - Adjusted EBITDA loss was $10.4 million, a 5.1% increase over the prior year[2] - CFO noted focus on simplifying organizational structure, streamlining operations, and eliminating redundancies, leading to a 7% headcount reduction and closure of under-performing assets[4] - CEO highlighted substantial revenue growth, trajectory towards profitability, and significant expansion in U.S. and U.K. markets, alongside strong growth in India[23] Revenue and Key Performance Indicators Full-year revenue surged to $46.7 million, a 245% increase, driven by acquisitions and strong segment growth. | Metric | FY2024 | FY2023 | Change (%) | | :----- | :----- | :----- | :--------- | | Total Revenue | $46.7 million | $13.5 million | 245% | | Brokerage Revenue Share | 65% | N/A | N/A | | Brokerage Revenue Growth | 232% | N/A | N/A | | IaaS Revenue Share | 35% | N/A | N/A | | IaaS Revenue Growth | 270% | N/A | N/A | | Gross Margin | 61.2% | 60.1% | +1.1 pp | | Customer Segment | FY2024 | FY2023 | Change (%) | | :--------------- | :----- | :----- | :--------- | | Insurance Customer Agreements | 33 | 26 | 26.9% | | Automotive Customer Agreements | 68 | 23 | 195.7% | | Agents & Fleet Customer Agreements | ~3,200 | ~2,000 | 60% | | Brokerage Segment Performance | FY2024 | FY2023 | Change (%) | | :-------------------------- | :----- | :----- | :--------- | | Policies Sold | 324,293 | 258,546 | 25.4% | | Gross Written Premium (GWP) | $61.8 million | $38.0 million | 62.6% | | IaaS Segment Performance | FY2024 | FY2023 | Change (%) | | :--------------------- | :----- | :----- | :--------- | | Claims & Vehicle Inspections | 301,120 | 220,781 | 36.4% | Expenses and Net Results Operating expenses significantly increased to $104.1 million, largely due to non-cash items, resulting in a $99.7 million net loss. | Metric | FY2024 | FY2023 | Change | | :----- | :----- | :----- | :----- | | Operating Expenses (excl. D&A) | $104.1 million | $18.1 million | +$86.0 million | | Non-cash Expenses (within OpEx) | $61.2 million | N/A | N/A | | Equity Compensation Expense | $56.3 million | N/A | N/A | | Provisions for Doubtful Accounts | $4.9 million | N/A | N/A | | Other Expenses | $22.2 million | $2.7 million | +$19.5 million | | Net Loss Attributable to Roadzen Inc. | $(99,669,335) | $(14,024,268) | $(85,645,067) | | Adjusted EBITDA Loss | $(10.4) million | $(9.9) million | +$0.5 million | | Adjusted EBITDA Margin | -22.3% | -73.1% | +50.8 pp | - The increase in other expenses was driven by $19.5 million of non-cash expense related to fair market valuation adjustments of financial instruments[9] Balance Sheet Highlights Current assets reached $49.8 million, driven by prepayments and cash, while current liabilities totaled $65.7 million. | Metric | March 31, 2024 | March 31, 2023 | Change | | :----- | :------------- | :------------- | :----- | | Current Assets | $49.8 million | $5.4 million | +$44.4 million | | FPA Prepayment Balance (within Current Assets) | $28.8 million | N/A | N/A | | Cash on Hand | $11.2 million | $0.6 million | +$10.6 million | | Current Liabilities | $65.7 million | $16.7 million | +$49.0 million | | Long-Term Liabilities | $3.0 million | $1.3 million | +$1.7 million | - Current liabilities included $17.4 million in Accounts Payable assumed by Roadzen in connection with the Business Combination, and $13.1 million for Mizuho Securities USA LLC, comprising $7.5 million in short-term borrowings and a $5.6 million fair valuation of warrants[30] About Roadzen Inc. Roadzen Inc. is a global AI technology company transforming auto insurance, headquartered in California. Company Overview Roadzen Inc. is a global AI technology company based in California, transforming auto insurance with advanced AI. - Roadzen Inc. is a global technology company transforming auto insurance using advanced artificial intelligence (AI)[13] - The company's technology is used by thousands of clients, including leading insurers, carmakers, fleets, dealerships, and auto insurance agents, for product development, sales, claims processing, and road safety[13] - Roadzen's mission is to advance AI research at the intersection of mobility and insurance to prevent accidents, ensure fair premiums, and process claims rapidly[13] - Headquartered in Burlingame, California, Roadzen has over 380 employees globally across the U.S., India, U.K., and France[13] Financial Statements Financial statements detail Roadzen's balance sheet, operations, and cash flows, reflecting revenue growth, increased expenses, and a net loss. Consolidated Balance Sheets Total assets grew to $58.1 million, driven by current assets including cash and prepayments, while total liabilities increased to $68.6 million. | Metric | March 31, 2024 | March 31, 2023 | Change | | :----- | :------------- | :------------- | :----- | | Total Assets | $58,136,346 | $15,181,242 | +$42,955,104 | | Current Assets | $49,842,571 | $5,367,158 | +$44,475,413 | | Cash and Cash Equivalents | $11,186,095 | $589,340 | +$10,596,755 | | Prepayments and Other Current Assets | $34,426,335 | $3,181,936 | +$31,244,399 | | Total Liabilities | $68,636,212 | $17,989,861 | +$50,646,351 | | Total Current Liabilities | $65,652,506 | $16,681,985 | +$48,970,521 | | Total Shareholders' Deficit | $(10,499,866) | $(51,082,898) | +$40,583,032 | - Significant increases in current assets and liabilities reflect business expansion and financial instrument adjustments[10][15][30][34] Consolidated Statements of Operations Revenue significantly increased to $46.7 million, but a surge in total costs and expenses to $124.4 million led to a net loss of $(99.7) million. | Metric | FY2024 | FY2023 | Change | | :----- | :----- | :----- | :----- | | Revenue | $46,724,287 | $13,560,498 | +$33,163,789 | | Cost of Services | $18,132,757 | $5,413,686 | +$12,719,071 | | Research and Development | $4,973,816 | $2,670,333 | +$2,303,483 | | Sales and Marketing | $33,195,608 | $10,736,173 | +$22,459,435