Getaround(GETR) - 2023 Q4 - Annual Results

Getaround Full Year 2023 Results Executive Summary & Business Highlights Getaround appointed new leadership in early 2024, secured $20 million financing, and focused on profitability through cost reduction and strategic acquisitions - A new leadership team was appointed in early 2024, with Jason Mudrick as Chairperson and Eduardo Iniguez as CEO, following a $20 million financing agreement with Mudrick Capital[3] - The company's near-term strategic focus is to stabilize the business, reduce losses, and then pursue thoughtful growth[4] - Restructured operations to reduce annualized Total Operating Expenses by more than $25 million as of Q4 2023[5] - Acquired HyreCar assets to expand its relationship with Uber and strengthen its position in the gig carsharing market[5] - Launched a next-generation AI-based TrustScore model and partnered with TransUnion to reduce claims and insurance costs[5] Financial Performance Getaround's 2023 revenue grew 22% to $72.7 million due to acquisitions, with significant improvements in net loss and Adjusted EBITDA loss Full Year 2023 Financial Highlights | Metric | FY 2023 | FY 2022 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenues | $72.7 million | $59.5 million | +22% | | Gross Booking Value | $204 million | Not specified | +16% | | Trip Contribution Margin | 40% | 47% | -7 p.p. | | GAAP Net Loss | $(113.9) million | $(136.1) million | 16% improvement | | Adjusted EBITDA loss | $(72.0) million | $(89.7) million | 20% improvement | - The acquisition of HyreCar assets was the primary driver of revenue growth in 2023[7] - The decrease in Trip Contribution Margin was attributed to increased trip support costs in New York State and insurance liabilities from the HyreCar acquisition, which are not expected to recur in 2024[7] Operational Updates Getaround suspended New York State consumer car sharing operations due to prohibitively high insurance costs mandated by state law - The company suspended consumer car sharing operations in New York State, effective April 1, 2024[6] - The suspension was due to the prohibitively high cost of insurance required by the New York P2P Carsharing Act, which mandates limits 50 times greater than for rental car companies[6] Financial Statements The consolidated financial statements for 2023 show decreased cash and equity, alongside revenue growth and reduced operating and net losses Consolidated Balance Sheet As of December 31, 2023, total assets decreased to $161.1 million, liabilities increased, and stockholders' equity significantly declined to $3.1 million Key Balance Sheet Items (in thousands) | Item | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $15,624 | $64,294 | | Total Assets | $161,136 | $205,419 | | Total Liabilities | $158,017 | $135,919 | | Total Stockholders' Equity | $3,119 | $69,500 | Consolidated Statements of Operations For FY2023, total revenues increased to $72.7 million, with loss from operations narrowing to $99.4 million and net loss improving to $113.9 million Key Statement of Operations Items (in thousands) | Item | Year ended Dec 31, 2023 | Year ended Dec 31, 2022 | | :--- | :--- | :--- | | Total Revenues | $72,680 | $59,455 | | Total Operating Expenses | $172,110 | $240,424 | | Loss from Operations | $(99,430) | $(180,969) | | Net Loss | $(113,946) | $(136,065) | | Net Loss Per Share (Basic) | $(1.23) | $(5.00) | Non-GAAP Financial Measures Getaround uses non-GAAP metrics like Trip Contribution Profit/Margin and Adjusted EBITDA to assess core operating performance and underlying business trends - The company uses non-GAAP measures like Trip Contribution Profit, Trip Contribution Margin, and Adjusted EBITDA to assess performance, evaluate business strategies, and prepare budgets[17] Trip Contribution Profit and Margin In 2023, Trip Contribution Profit slightly increased to $28.3 million, but the margin decreased to 40% due to rising direct costs Trip Contribution Profit Reconciliation (in thousands) | Metric | Year Ended Dec 31, 2023 | Year Ended Dec 31, 2022 | | :--- | :--- | :--- | | Gross profit from Service revenue | $60,640 | $49,679 | | Trip Contribution Profit | $28,319 | $27,404 | | Trip Contribution Margin | 40% | 47% | - Trip Contribution Profit is defined as gross profit from Service revenue adjusted for cost of Service revenue and trip support costs (auto insurance, claims support, and customer relations)[19] Adjusted EBITDA Adjusted EBITDA loss significantly improved by 20% to $72.0 million in 2023, reflecting positive impacts from cost optimization efforts Adjusted EBITDA Reconciliation (in thousands) | Metric | Year Ended Dec 31, 2023 | Year Ended Dec 31, 2022 | | :--- | :--- | :--- | | Net Loss | $(113,946) | $(136,065) | | Adjusted EBITDA | $(72,018) | $(89,717) | - Adjusted EBITDA is defined as net income adjusted for items including fair value adjustments, interest, taxes, depreciation, amortization, stock-based compensation, and certain non-recurring expenses[22]