Getaround(US:GETR)2024-08-13 20:20Company Operations - As of June 30, 2024, Getaround's platform supports approximately 2.2 million unique guests and has around 72,000 active cars in over 1,000 cities across 8 countries[118]. - The suspension of carsharing operations in New York State is expected to reduce annualized service revenue by $5 million to $7 million, while improving annualized trip contribution profit by an estimated $2 million[121]. - Getaround has incurred cumulative losses from inception through June 30, 2024, and anticipates continued operating losses and negative cash flows for the foreseeable future[134]. - The company received a notice from the NYSE regarding the suspension of trading of its common stock due to not meeting the continued listing standard of maintaining an average global market capitalization of at least $15 million[133]. - The company appointed Mr. Eduardo Iniguez as CEO and transitioned part of its executive team in early 2024[120]. - The Getaround Connect Cloud Platform enables a contactless booking, pickup, and return experience for guests, enhancing user convenience[119]. - The company has a broad network of loyal hosts and guests, benefiting from low entry costs and dynamic pricing algorithms informed by data analytics[119]. Financial Performance - Service revenue for Q2 2024 was $18,307, compared to $18,224 in Q2 2023, reflecting a slight increase of 0.5%[154]. - Total revenues for Q2 2024 were $18,584, down from $18,620 in Q2 2023, indicating a decrease of 0.2%[154]. - Net loss for Q2 2024 was $12,025, compared to a net loss of $30,269 in Q2 2023, showing an improvement of 60.2%[154]. - Total revenues for the six months ended June 30, 2024, increased by $5.6 million, or 19%, to $35.74 million compared to $30.14 million in the same period of 2023[191]. - The net loss for the six months ended June 30, 2024, was $42.99 million, an improvement from a net loss of $53.07 million in the same period of 2023[190]. - Contribution profit increased by $2.7 million, or 93%, to $5.6 million for the three months ended June 30, 2024, due to a decrease in variable operating expenses[181]. - Trip Contribution Profit was $9.7 million, an increase of $1.8 million, or 23%, from the previous year, attributed to a decrease in Trip support costs[184]. - Adjusted EBITDA loss for the three months ended June 30, 2024, was $11.4 million, an improvement of $10.9 million, or 49%, from a loss of $22.4 million in the same period last year[187]. Revenue and Expenses - Getaround generates revenue primarily from fees charged to guests and subscriptions from hosts, with a significant portion dependent on Powerhosts, defined as hosts with three or more active cars[135]. - The average commission charged to hosts is approximately 40%, with hosts retaining 60% of the Trip Price[138]. - Cost of revenue (exclusive of depreciation and amortization) for Q2 2024 was $1,660, down from $1,730 in Q2 2023, a decrease of 4.0%[154]. - Sales and marketing expenses for Q2 2024 were $5,736, a decrease of 25.7% from $7,728 in Q2 2023[154]. - Operations and support expenses decreased to $12,680 in Q2 2024 from $16,024 in Q2 2023, a reduction of 21.5%[154]. - Total operating expenses decreased to $82.39 million for the six months ended June 30, 2024, from $85.12 million in the prior year, reflecting a reduction in various expense categories[191]. - Sales and marketing expenses decreased by $2.4 million, or 21%, to $8.97 million, attributed to cost control measures and a shift in focus towards improving unit economics[194]. - General and administrative expenses decreased by $1.1 million, or 4%, to $27.45 million, largely due to reductions in office-related expenses and bad debt[198]. Cash Flow and Financing - Cash and cash equivalents as of June 30, 2024, totaled $30.9 million, consisting of institutional money market funds and similar instruments[223]. - Net cash provided by financing activities was $41.1 million during the six months ended June 30, 2024, entirely from the issuance of the Mudrick Super Priority Note[229]. - Operating activities used cash of $24.5 million for the six months ended June 30, 2024, compared to $28.6 million in the same period in 2023[227]. - Cash flows used in investing activities were $0.9 million for the six months ended June 30, 2024, down from $10.5 million in the prior year[228]. Market and Valuation - The fair value adjustment for convertible promissory notes increased by $13.6 million, or 606%, for the three months ended June 30, 2024, compared to the prior year[165]. - The valuation of common stock warrants is sensitive to changes in unobservable inputs, which could materially affect estimated fair value[241]. - The company utilized a market-based approach for valuing Mudrick Convertible Notes and Super Priority Note Payable, incorporating unobservable inputs[240]. - Significant unobservable inputs for the valuation model include timing of potential events, guideline public company multiples, and projected future cash flows[240]. Legal and Compliance - The company reported material weaknesses in internal control over financial reporting as of June 30, 2024, affecting the effectiveness of disclosure controls and procedures[244]. - Legal proceedings are discussed in "Note 12: Commitments and Contingencies" of the condensed consolidated financial statements[246].