Marti Technologies(MRT) - 2024 Q4 - Annual Report

Full Year 2024 Results Overview This section provides an executive summary of Marti's 2024 performance, highlighting strategic shifts, key financial metrics, and operational achievements Executive Summary & CEO Remarks Marti focused on ride-hailing in 2024, achieving growth and monetization, with the CEO projecting substantial 2025 revenue and Adjusted EBITDA growth - The company is positioned to almost double its revenue and achieve positive Adjusted EBITDA in 2025, excluding potential incremental investments to accelerate ride-hailing growth[4] - Marti identifies a potential $3 billion annual revenue opportunity in the Turkish ride-hailing market, based on market size estimates and global take-rate benchmarks[5] - The company began monetizing its ride-hailing service in October 2024 through driver subscription packages[4][6] - In 2024, the company continued to focus on enhancing the profitability of its two-wheeled electric vehicle service through efficiency initiatives[5] Key Financial & Operational Highlights Marti's FY2024 revenue and Adjusted EBITDA surpassed guidance, driven by ride-hailing monetization and significant operational growth in riders and drivers Consolidated Financial and Operational Highlights (2023 vs 2024) | | 2023 | 2024 | ∆ | | :--- | :--- | :--- | :--- | | Number of Total Rides (Millions) | 21.93 | 31.71 | 44.6% | | Number of Unique Ride-hailing Riders (Thousands) | 499 | 1,663 | 233.5% | | Number of Registered Ride-hailing Drivers (Thousands) | 107 | 262 | 145.9% | | Revenue (USD Thousands) | 20,030 | 18,660 | (6.8)% | | Net Loss (USD Thousands) | (33,815) | (73,881) | 118.5% | | Adj. EBITDA (USD Thousands) | (17,692) | (19,274) | 8.9% | - FY'24 revenue of $18.7M surpassed guidance of $16.6M, primarily due to the monetization of the ride-hailing service starting in October 2024[6][11] - FY'24 Adjusted EBITDA of $(19.3)M exceeded guidance of $(22.5)M, also driven by the new revenue stream from ride-hailing[6][11] - The number of unique ride-hailing riders grew to 1.66M, and registered drivers reached 262 thousand by year-end 2024, outperforming company targets[12] Business Outlook & Strategy This section outlines Marti's strategic direction and financial targets for 2025, including ride-hailing growth and profitability initiatives Full Year 2025 Guidance & Targets Marti reaffirms its 2025 guidance, projecting $34.0 million revenue and $3.0 million Adjusted EBITDA, with specific ride-hailing growth targets Full Year 2025 Guidance | | 2025 Guidance | | :--- | :--- | | Net Revenue (USD Millions) | $ 34.0M | | Adjusted EBITDA (USD Millions) | $ 3.0M | June 30, 2025 Ride-Hailing Targets | | June 30, 2025 Targets | | :--- | :--- | | Number of Unique Ride-hailing Riders (Millions) | 2.15 million | | Number of Registered Ride-hailing Drivers (Thousands) | 310 thousand | - The 2025 guidance assumes no fleet size expansion for the two-wheeled electric vehicle business and excludes any incremental investments to accelerate ride-hailing growth[17] Strategic Initiatives Marti implemented strategic initiatives including AI software acquisition, a share repurchase program, and operational adjustments to enhance profitability - In February 2024, Marti acquired the intellectual property and software of Zoba, an AI platform for dynamic fleet optimization. Vehicles deployed with Zoba produced 2.4x higher daily rides per vehicle in H2'24[8][16] - A share repurchase program, adopted in January 2024, authorizes the company to buy back up to $2.5 million of its ordinary shares through October 2025[7] - The company ceased operations in Kocaeli, Mersin, and Muğla, which accounted for 5% of revenue but 12% of variable operating costs, to improve overall profitability[12] - In January 2025, a dynamic pricing model was launched for the ride-hailing service to improve efficiency, reduce wait times, and enhance driver earnings[12] Consolidated Financial Statements This section presents Marti's consolidated balance sheet, income statement, and cash flow statement for the fiscal year 2024 Consolidated Balance Sheet Marti's balance sheet as of December 31, 2024, shows decreased assets and cash, increased liabilities, and a widening stockholders' deficit Key Balance Sheet Items (Thousands $) | | Dec 31, 2023 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | 19,424 | 5,149 | | Total assets | 40,211 | 20,379 | | Total liabilities | 72,909 | 81,820 | | Total stockholders' equity | (32,698) | (61,441) | Consolidated Income Statement Marti's FY2024 income statement shows a slight revenue decrease and a significant increase in net loss, primarily due to higher general and administrative expenses Key Income Statement Items (Thousands $) | | FY 2023 | FY 2024 | | :--- | :--- | :--- | | Revenue | 20,030 | 18,660 | | Cost of revenues | (24,085) | (21,549) | | General and administrative expenses | (15,130) | (49,249) | | Loss from operations | (30,603) | (65,310) | | Net loss | (33,815) | (73,881) | - General & administrative expenses in 2024 included $37.2 million of share-based compensation expense. Excluding this, G&A expenses were $12.1 million[29] Consolidated Statement of Cash Flows Marti's FY2024 cash flow statement shows increased cash used in operations and a net decrease in cash and cash equivalents, despite cash generated from financing activities Key Cash Flow Items (Thousands $) | | FY 2023 | FY 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | (14,866) | (25,077) | | Net cash used in investing activities | (4,820) | (1,039) | | Net cash generated from financing activities | 28,612 | 11,841 | | Net (decrease)/increase in cash | 8,926 | (14,275) | | Cash and cash equivalents at end of year | 19,424 | 5,149 | Non-GAAP Measures and Reconciliations This section defines Marti's non-GAAP financial measures and provides a reconciliation of net loss to Adjusted EBITDA Definition of Non-GAAP Measures Marti defines Adjusted EBITDA and Adjusted EBITDA margin as non-GAAP measures, used by management and investors to assess financial and business trends - Adjusted EBITDA is calculated by adding depreciation, amortization, taxes, net financial expenses, and one-time/non-cash adjustments to net income (loss)[20] - Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by revenue[21] Reconciliation of Net Loss to Adjusted EBITDA Marti reconciled its FY2024 GAAP net loss of $(73.9) million to a non-GAAP Adjusted EBITDA of $(19.3) million, primarily adjusted for share-based compensation Consolidated Adjusted EBITDA Reconciliation (Thousands $) | | FY 2023 | FY 2024 | | :--- | :--- | :--- | | Net loss | (33,815) | (73,881) | | Depreciation and amortization | 10,045 | 8,691 | | Financial expense (net) | 3,212 | 8,572 | | Stock based compensation expense | 1,989 | 37,161 | | Adjusted EBITDA | (17,692) | (19,274) | Other Information This section provides details on the conference call and a cautionary statement regarding forward-looking information Conference Call Information Marti held a conference call and webcast on April 29, 2025, to discuss its full-year 2024 financial and operational results - A conference call to discuss FY 2024 results was held on April 29, 2025, at 8:30 a.m. New York Time[19] Cautionary Statement Regarding Forward-Looking Information This section includes a cautionary statement that forward-looking statements are subject to risks and uncertainties, and actual results may differ materially from expectations - Statements about anticipated growth, 2025 guidance, and future performance are forward-looking and not guarantees of future results[25] - Actual results may differ materially due to various risks, including industry competition, regulatory changes, economic conditions, and other factors detailed in SEC filings[26]