Getaround(US:GETR)2024-05-10 20:15Company Overview - As of March 31, 2024, Getaround supports approximately 2.1 million unique guests and has around 75,000 active cars in over 1,000 cities across 8 countries [161]. - Getaround has facilitated approximately 8.1 million carsharing trips, with hosts earning more than $540 million through the platform [162]. - The company appointed Mr. Eduardo Iniguez as CEO on February 26, 2024, succeeding co-founder Mr. Sam Zaid [166]. Financial Performance - Service revenue for Q1 2024 was $16,806,000, a 50.5% increase from $11,199,000 in Q1 2023 [207]. - Total revenues for Q1 2024 reached $17,156,000, compared to $11,520,000 in Q1 2023, reflecting a growth of 48.5% [207]. - The net loss for Q1 2024 was $30,965,000, compared to a net loss of $22,799,000 in Q1 2023, showing a deterioration of 35.7% [207]. - Comprehensive loss for Q1 2024 was $33,629,000, compared to $21,978,000 in Q1 2023, reflecting an increase of 52.9% [207]. - Adjusted EBITDA for the three months ended March 31, 2024, was a loss of $15.3 million, an improvement of $4.6 million or 23% from a loss of $19.9 million in the same period last year [241]. Revenue and Cost Structure - Getaround generates revenue primarily from fees charged to guests and subscriptions from hosts, with a significant portion of revenue dependent on Powerhosts [179]. - The average commission charged to hosts is approximately 40%, with hosts retaining 60% of the Trip Price [183]. - Total operating expenses for Q1 2024 were $41,739,000, up from $37,815,000 in Q1 2023, indicating an increase of 10.5% [207]. - Operations and support expenses increased to $14,610,000 in Q1 2024 from $12,102,000 in Q1 2023, representing a rise of 20.7% [207]. - Sales and marketing expenses decreased to 19% of total revenues in Q1 2024 from 32% in Q1 2023 [208]. - Technology and product development expenses accounted for 24% of total revenues in Q1 2024, down from 33% in Q1 2023 [208]. Market Impact and Future Outlook - The suspension of carsharing operations in New York State is expected to reduce annualized service revenue by $5 million to $7 million but improve annualized trip contribution profit by an estimated $2 million [165]. - The company expects to continue incurring operating losses and negative cash flows as it develops and promotes its platform globally [243]. Legal and Settlement Matters - A settlement payment of $15 million was received from Broadspire, resulting in a net payment of approximately $10.3 million after legal fees [168]. - Other income increased significantly by $10.9 million, or 5210%, to $11.2 million, mainly due to a $10.8 million gain from the Broadspire settlement [221]. Cash Flow and Financial Position - Cash and cash equivalents as of March 31, 2024, were $24.5 million, with net cash provided by financing activities amounting to $21.2 million during the same period [242][248]. - Operating activities used $11.1 million in cash for the three months ended March 31, 2024, compared to $21.6 million in the same period of 2023 [246]. - Total contractual obligations as of March 31, 2024, amounted to $240.7 million, with long-term debt obligations of $217.8 million [249]. Accounting and Valuation - The company prepares financial statements in accordance with GAAP, requiring management to make estimates and assumptions that significantly impact reported amounts of assets, liabilities, revenue, and expenses [252]. - Critical accounting policies include business combination accounting under ASC 805, revenue recognition under ASC 606, and stock-based compensation under ASC 718 [253]. - Fair value measurements are based on orderly transactions between market participants, utilizing significant unobservable inputs for certain assets and liabilities [255]. - Stock-based compensation expense is measured based on estimated fair value at grant date, influenced by stock price volatility and other subjective variables [263].