Roadzen (RDZN) - 2025 Q1 - Quarterly Results

Executive Summary & Management Outlook This section provides an overview of Roadzen's fiscal year 2025 performance, highlighting key financial achievements and strategic insights from management regarding growth and efficiency initiatives Key Highlights – Fiscal Year 2025 Roadzen achieved Q4 revenue growth, significantly reduced net loss, accelerated pipeline expansion, strengthened AI leadership, and improved balance sheet and operational efficiency Fiscal Year 2025 Key Financial Highlights: | Metric | FY2025 | FY2024 | Change (YoY) | | :-------------------------------- | :------- | :------- | :----------- | | Full-Year Revenue | $44.3M | $46.7M | -5.2% | | Q4 Revenue | $11.3M | $10.0M | +13.3% | | Q4 Net Loss | $(0.1)M | $(34.1)M | 99% improvement | | FY Adjusted EBITDA Loss | $(8.4)M | $(10.2)M | 17.6% improvement | | Q4 Adjusted EBITDA Loss | $(1.6)M | $(2.1)M | 24% improvement | - The company's pipeline now exceeds $300 million, reflecting strong momentum across India, the U.S., and resumed U.K. contracts, driven by enterprise adoption of Roadzen's AI solutions[3] - Roadzen strengthened its position as a global leader in applied AI with the launch of MixtapeAI and DrivebuddyAI™ securing multiple patents, surpassing 1.8 billion kilometers of driving data, and enabling client fleets to reduce accidents by 72%[4] - For the full fiscal year, Roadzen reduced total liabilities by 15% ($10.4 million), lowered operating costs by 19% ($19.8 million), and reduced headcount by 19%, driving meaningful operating leverage and improved efficiency[5] Management Commentary Management commentary highlights Q4 growth, the strategic impact of DrivebuddyAI, a target for Adjusted EBITDA breakeven, and significant progress in balance sheet and cost optimization - CEO Rohan Malhotra noted the company achieved roughly flat revenues for the year despite a U.K. pause impacting nearly 40% of prior revenues, returning to 13.3% YoY growth in Q4, and expects this momentum to continue[8] - Malhotra stated that DrivebuddyAI is gaining strong commercial traction and regulatory validation, expected to unlock over $200 million worth of revenue opportunities as the Indian government adopts new road safety mandates[8] - The company is targeting Adjusted EBITDA breakeven within the next two quarters, citing pipeline strength and major growth catalysts[8] - CFO Jean-Noël Gallardo reported that FY2025 objectives were met, with total liabilities reduced by approximately 15%, operating costs decreased by 19%, and total headcount reduced by 19% to 308 employees[8] Fiscal Year 2025 Financial Performance This section details Roadzen's financial performance for fiscal year 2025, covering revenue trends, operating expenses, net results, and key financial developments in the fourth quarter Revenue and Key Performance Indicators Full-year revenue declined by 5.2% due to a U.K. GAP insurance suspension, while customer counts increased across all segments Revenue Performance (FY2025 vs FY2024): | Metric | FY2025 | FY2024 | Change (YoY) | | :----- | :----- | :----- | :----------- | | Revenue | $44.3M | $46.7M | -5.2% | - The 5.2% revenue decrease was primarily due to the temporary countrywide suspension of GAP insurance sales by the U.K., which impacted an estimated $27 million in annualized revenues[1][9] Customer Count (as of March 31, 2025): | Segment | Count | | :-------------------------------- | :---- | | Insurance customer agreements | 34 | | Automotive customer agreements | 78 | | Agents and fleet customer agreements | ~3,800 | Operating Expenses Operating expenses for FY2025 significantly decreased, both including and excluding non-cash RSU charges, demonstrating improved efficiency Operating Expenses (Excluding Cost of Services and D&A): | Metric | FY2025 | FY2024 | Change (YoY) | | :-------------------------------- | :------- | :------- | :----------- | | Total Operating Expenses | $84.3M | $104.1M | -$19.8M (-19%) | | Operating Expenses (Excl. RSU) | $37.0M | $47.8M | -$10.8M (-23%) | Net Results The company substantially reduced its net loss and Adjusted EBITDA loss in FY2025, driven by lower operating expenses and decreased non-cash charges Net Loss and Adjusted EBITDA Loss: | Metric | FY2025 | FY2024 | Change (YoY) | | :-------------------------------- | :------- | :------- | :----------- | | Net Loss | $(72.9)M | $(99.7)M | 26.9% improvement | | Net Loss Per Share | $(1.04) | $(2.26) | 54% improvement | | Non-Cash Expenses | $66.9M | $80.3M | -16.7% | | Net Loss (Excl. Non-Cash) | $(5.9)M | $(19.4)M | 70% improvement | | Adjusted EBITDA Loss | $(8.4)M | $(10.2)M | 17.6% improvement | | Q4 Adjusted EBITDA Loss | $(1.6)M | $(2.1)M | 24% improvement | - Non-cash expenses in FY2025 included $47.2 million in RSU charges, $14.8 million loss on fair value of financial instruments, and $4.9 million for depreciation, amortization, impairment, and other non-cash items[11] Fourth Quarter Financial Developments Roadzen completed two public offerings in Q4 FY2025, raising $5.0 million in gross proceeds, and eliminated $12.6 million in short-term liabilities - On January 6, 2025, Roadzen closed a public offering of 2,222,300 ordinary shares at $2.25 per share, generating approximately $5.0 million in gross proceeds, following an earlier offering of 2,300,000 shares at $1.25 per share[15] - The company eliminated a total of $12.6 million in short-term liabilities over six months (July 2024 - January 2025), utilizing $1.65 million in cash and approximately 1.2 million shares[19] - On March 31, 2025, Roadzen entered into a securities purchase agreement to issue and sell junior convertible notes for up to an aggregate principal amount of $2,300,000[19] Fiscal Year 2025 Financial Position This section outlines Roadzen's financial position as of March 31, 2025, detailing changes in assets, liabilities, and capitalization structure Balance Sheet Overview Roadzen significantly reduced total assets and liabilities as of March 31, 2025, reflecting efforts to simplify and right-size its balance sheet Consolidated Balance Sheet Summary: | Metric | March 31, 2025 | March 31, 2024 | | :-------------------------------- | :------------- | :------------- | | Total Assets | $32.6M | $58.1M | | Total Liabilities | $58.3M | $68.6M | | Total Shareholders' Deficit | $(25.1)M | $(10.1)M | Assets Total assets decreased by $25.6 million, primarily due to a reduction in the fair market valuation of the Forward Purchase Agreement - Total assets as of March 31, 2025, were $32.6 million, representing a decrease of $25.6 million from the previous fiscal year-end, primarily driven by a $20.2 million reduction in the fair market valuation of its Forward Purchase Agreement[12] Liabilities Total liabilities decreased by $10.4 million, driven by a significant reduction in payables and long-term debt - Total liabilities as of March 31, 2025, decreased by $10.4 million to $58.3 million, compared to fiscal year-end 2024, driven by an $8.2 million (21%) reduction in payables[13] - Long-term debt was reduced from $1.5 million at the previous fiscal year-end to approximately $0.1 million on March 31, 2025[13] Capitalization Ordinary shares outstanding increased due to public equity deals, with executive management and the Board retaining a significant ownership stake - As of March 31, 2025, the Company had approximately 74.3 million Ordinary Shares outstanding, an increase of 5.9 million shares from the prior fiscal year-end as a result of two public equity deals[14] - At fiscal year-end, executive management and the Board owned approximately 26.9% of the Company's outstanding shares[14] Fiscal Year 2025 Operational Highlights This section highlights Roadzen's operational achievements in fiscal year 2025, including new product launches, patent awards, and strategic partnerships Product Launches & Enhancements Roadzen launched and upgraded MixtapeAI, a reasoning-based agentic AI platform, earning industry recognition for its transformative impact on customer experience - On October 30, 2024, Roadzen's AI Labs unveiled MixtapeAI, a platform designed to power AI agents and transform customer interactions for insurers, brokers, agents, carmakers, and fleets[19] - On January 28, 2025, MixtapeAI was upgraded with DeepSeekR1, a leading open-source reasoning model offering advanced capabilities, full traceability, and lower costs[19] - On March 6, 2025, MixtapeAI won 'Best AI in Deep Tech' at the Entrepreneur AI Awards 2025 for transforming customer experience in auto insurance and mobility[19] Patents and Certifications DrivebuddyAI secured an Indian patent for its risk assessment system and achieved ARAI certification, positioning it for upcoming regulatory mandates - On March 11, 2025, Roadzen's DrivebuddyAI was awarded a patent in India for its computer vision and AI-based Cognitive Assessment of Risk for Drivers ('CARD') scoring system[19] - On December 6, 2024, DrivebuddyAI became the first AI-powered driver safety system to receive Automotive Research Association of India ('ARAI') certification under India's Automotive Industry Standard 184 (AIS184)[19] New Key Contracts, Partnerships and Collaborations Roadzen expanded its market reach in FY2025 through strategic partnerships, including joining Bosch's L.OS, securing U.S. MGA licenses, and providing roadside assistance for a major U.S. fleet - On December 19, 2024, Roadzen's DrivebuddyAI joined Bosch's Logistics Operating System (L.OS) as a partner, expanding reach for its ADAS and driver monitoring systems across India's commercial vehicle market[19] - On December 11, 2024, Roadzen signed a MoU with Cimarron Underwriters, LLC to secure nationwide Managing General Agent licenses and infrastructure to expand the distribution of its insurance offerings across all 50 U.S. States[19] - On December 10, 2024, Roadzen was contracted by Motive, a top U.S. AI-powered fleet management company, to provide 24/7 roadside assistance for its network of over one million vehicles[19] Subsequent Operational Developments (FY2026) This section details Roadzen's operational advancements and new contracts announced after the close of fiscal year 2025, extending into FY2026 Product Advances and Patent Awards Post-FY2025, DrivebuddyAI advanced with new patents, integrated advanced technologies, and is positioned to benefit from India's new road safety regulations, significantly reducing accidents - DrivebuddyAI, Roadzen's ADAMATICS platform, integrates advanced driver assistance, AI, machine learning, and video telematics to deliver real-time monitoring, predictive analytics, and proactive collision avoidance[20] - On April 1, 2025, Roadzen announced its positioning to benefit from India's new road safety regulations, mandating Driver Drowsiness and Attention Warning Systems (DDAWS) under AIS184 by April 2026[20] - On June 3, 2025, DrivebuddyAI was awarded a patent in India for its real-time driver drowsiness detection algorithm, leveraging AI and computer vision to monitor over 92 real-time eye and facial cues[21] - By June 3, 2025, DrivebuddyAI surpassed 1.8 billion kilometers of real-world driving data (an 80% increase in six months) and helped commercial fleets achieve over a 72% reduction in on-road accidents[22] Contract Announcements Roadzen secured new contracts and partnerships in India and the U.K. post-FY2025, expanding AI solutions for claims, warranties, and fleet safety, and resuming U.K. market growth - On June 25, 2024, Roadzen was chosen by Oriental Insurance Company Ltd., India's 6th largest insurer, to deliver AI-powered claims processing for 50,000+ claims annually[24] - On December 31, 2024, Roadzen partnered with Simple Energy, a top premium EV manufacturer, and a leading global reinsurer to offer extended warranties for Simple Energy vehicles[24] - On April 29, 2024, Roadzen was awarded a 5-year contract from Dalmia Transport & Logistics, one of India's largest logistics fleet operators, to install DrivebuddyAI technology across its entire fleet[24] - On May 6, 2025, Roadzen's U.K. subsidiary, GIM, partnered with Vodafone Automotive to deliver an integrated vehicle protection solution, marking the resumption of GIM's growth in the U.K. following regulatory transition[25] General Interest Roadzen's DrivebuddyAI platform received recognition in a globally influential publication for its advancements in in-cabin technologies - On June 10, 2025, Roadzen's DrivebuddyAI platform was featured in the latest InCabin Report & Vision System Market Map, recognized for setting the global standard for safety and intelligence inside vehicles[26] Company Overview This section provides an overview of Roadzen Inc., its mission, global presence, and a cautionary statement regarding forward-looking information About Roadzen Inc. Roadzen Inc. is a global technology company leveraging AI to transform auto insurance and mobility, aiming to prevent accidents, ensure fair premiums, and expedite claims - Roadzen Inc. (Nasdaq: RDZN) is a global technology company transforming auto insurance using advanced artificial intelligence (AI), including telematics, generative AI, and computer vision[27] - The company's mission is to advance AI research at the intersection of mobility and insurance, aiming for a world where accidents are prevented, premiums are fair, and claims are processed within minutes[27] - Headquartered in Burlingame, California, Roadzen has 308 employees across its global offices in the U.S., U.K., and India[27] Cautionary Statement Regarding Forward Looking Statements This section provides a standard cautionary statement regarding forward-looking statements, outlining inherent risks, uncertainties, and the company's policy on updating such information - The press release includes forward-looking statements based on current expectations and projections, which are subject to known and unknown risks, uncertainties, and assumptions that may cause actual results to differ materially[28] - Forward-looking statements can be identified by terminology such as 'may,' 'should,' 'expect,' 'plan,' 'anticipate,' 'believe,' 'estimate,' and 'continue,' or similar expressions[28] - The company disclaims any intention or obligation to update or revise any forward-looking statements, except as expressly required by applicable securities law[28] Consolidated Financial Statements This section presents Roadzen's consolidated financial statements, including balance sheets, statements of operations, and cash flows for fiscal years 2025 and 2024 Consolidated Balance Sheets The consolidated balance sheets present Roadzen's financial position as of March 31, 2025, and 2024, showing decreased total assets and liabilities, and an increased shareholders' deficit Consolidated Balance Sheets (as of March 31): | Particulars | 2025 (US $) | 2024 (US $) | | :-------------------------------- | :---------- | :---------- | | Assets: | | | | Total current assets | 26,954,896 | 49,842,571 | | Total Non current assets | 5,624,454 | 8,293,775 | | Total assets | 32,579,350 | 58,136,346 | | Liabilities: | | | | Total current liabilities | 56,935,304 | 65,652,506 | | Total Non current liabilities | 1,334,826 | 2,983,706 | | Total liabilities | 58,270,130 | 68,636,212 | | Shareholders' Equity/(Deficit): | | | | Total shareholders' deficit | (25,073,897) | (10,073,836) | | Non-controlling interest | (616,883) | (426,030) | | Total deficit | (25,690,780) | (10,499,866) | Consolidated Statements of Operations The consolidated statements of operations detail the company's revenue, expenses, and net loss for fiscal years 2025 and 2024, showing a reduction in net loss and loss per share Consolidated Statements of Operations (For the Year ended March 31): | Particulars | 2025 (US $) | 2024 (US $) | | :-------------------------------- | :---------- | :---------- | | Revenue | 44,296,098 | 46,724,287 | | Total costs and expenses | 105,109,040 | 124,383,124 | | Loss from operations | (60,812,942) | (77,658,837) | | Total other income/(expense) | (12,264,342) | (22,223,889) | | Net Loss attributable to Ordinary shareholders | (72,870,432) | (99,669,335) | | Net loss per share (Basic and diluted) | (1.04) | (2.26) | | Weighted-average shares | 69,867,792 | 44,032,410 | Consolidated Statements of Cash Flows The consolidated statements of cash flows illustrate the company's cash generation and usage from operating, investing, and financing activities for FY2025 and FY2024, indicating a net decrease in cash Consolidated Statements of Cash Flows (For the Year ended March 31): | Particulars | 2025 (US $) | 2024 (US $) | | :-------------------------------- | :---------- | :---------- | | Net cash used in operating activities | (18,142,198) | (19,218,165) | | Net cash used in investing activities | (115,621) | (6,705,124) | | Net cash generated from financing activities | 11,743,203 | 25,362,382 | | Net (decrease)/increase in cash and cash equivalents | (6,511,448) | (805,351) | | Cash and cash equivalents at end of period | 5,053,640 | 11,565,088 | Non-cash investing and financing activities: | Particulars | 2025 (US $) | 2024 (US $) | | :-------------------------------- | :---------- | :---------- | | Consideration payable in connection with acquisitions | 8,376,253 | 488,000 | | Interest accrued on borrowings | 2,123,633 | 451,323 | Non-GAAP Financial Measures This section provides a reconciliation of non-GAAP financial measures, specifically Adjusted EBITDA, to the most directly comparable GAAP financial measure Adjusted EBITDA Reconciliation This section defines Adjusted EBITDA as a non-GAAP financial measure, explains its limitations, and provides a reconciliation to GAAP net loss for Q4 and full fiscal years 2025 and 2024 - Adjusted EBITDA is a non-GAAP financial measure that excludes finance costs, taxes, depreciation and amortization, and certain other items from reported net profit or loss, used to clarify sustainability and trends[37] - Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as substitutes for financial information presented under GAAP[38] Adjusted EBITDA Reconciliation: | Particulars | Q4 2025 (US $) | Q4 2024 (US $) | FY 2025 (US $) | FY 2024 (US $) | | :-------------------------------- | :------------- | :------------- | :------------- | :------------- | | Net loss | (106,967) | (33,978,672) | (72,870,432) | (99,669,335) | | Adjusted for: | | | | | | Other (income)/expense net | (3,861,541) | (55,459) | (7,073,235) | (838,728) | | Interest (income)/expense | 714,899 | 732,138 | 3,247,831 | 2,291,123 | | Fair value changes in financial instruments | (1,681,725) | (2,894,633) | 14,844,420 | 19,475,005 | | Gain on deconsolidation of subsidiaries | - | (2,098,745) | - | (2,098,745) | | Impairment of investment | 1,245,326 | 3,395,234 | 1,245,326 | 3,395,234 | | Tax (benefit)/expense | 69,709 | 69,734 | (13,973) | (23,648) | | Depreciation and amortization | 1,046,539 | 953,232 | 2,020,610 | 2,185,858 | | Stock based compensation expense | 76,397 | 25,523,471 | 47,211,816 | 56,303,135 | | Non-cash expenses | 493,210 | 820,440 | 1,649,448 | 1,048,464 | | Non-recurring expenses | 386,746 | 5,408,410 | 1,340,062 | 7,685,859 | | Adjusted EBITDA | (1,617,407) | (2,124,850) | (8,398,127) | (10,245,778) |