Getaround(US:GETR)2023-12-14 16:00Business 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].