Getaround Reports Second Quarter 2024 Financial Results

  • Under new leadership team, Company raised capital, reduced expenses, and accelerated path to profitability
  • GAAP net loss of $12.0 million, vs. a net loss of $30.3 million a year ago
  • Adjusted EBITDA loss improved 49% to $11.4 million from $22.4 million loss vs. same period 2023

Getaround (OTC: GETR), the world's first connected carsharing marketplace, today announced financial results for the second quarter of 2024 ended June 30, 2024.

“During the first half of 2024 we aggressively capitalized on opportunities to increase efficiency and right-size expenses,” said Eduardo Iniguez, CEO of Getaround. “I am pleased to share that our second quarter 2024 results are starting to reflect the results of being laser-focused on addressing legacy challenges while charting a new path for Getaround. For the remainder of 2024, we expect to maintain our positive momentum with margin improvement while growing in markets and segments with profitable unit economics.”

Second Quarter 2024 Business Highlights

  • Appointed three new independent board members who bring significant expertise in governance, strategy and product development
  • Appointed Patricia Huerta, our Chief Accounting Officer, to the role of Interim Chief Financial Officer while restructuring our Finance and Accounting functions to rein in associated fixed expense
  • Secured an additional $50 million in financing

“In the second quarter we continued to take significant steps to reset our company leadership, business direction and operations,” said Huerta. “These changes are now in place and the benefits are reflected in our financial results, including positive trends related to Trip Contribution Margin and Adjusted EBITDA”.

Second Quarter 2024 Financial Highlights

  • Total revenues of $18.6 million, flat compared to the year ago period
  • Gross Booking Value of $53.0 million, a decrease of 1%
  • Gross margin from Service Revenue expanded to 88%, an increase of 286 basis points year-over-year
  • Trip Contribution Margin expanded to 53%, an increase of 980 basis points year over year
  • GAAP net loss of $12.0 million, vs. a net loss of $30.3 million a year ago
  • Adjusted EBITDA loss of $11.4 million, vs. a $22.4 million loss a year ago

Conference Call Details

Company management will host a conference call and webcast today at 2:00 p.m. PT / 5:00 p.m. ET to discuss the financial results and provide a corporate update. A live webcast and replay can be accessed from the investor relations page of Getaround’s website at Getaround | Investor Relations. Individuals interested in listening to the conference call may do so by dialing 1-844-826-3033 or 1-412-317-5185.

Additionally, participants may dial 1-844-512-2921 or 1-412-317-6671 to hear a telephone replay which will be available approximately three hours after the conference call ends until Monday, August 26, 2024.

About Getaround

Offering a digital experience, Getaround (NYSE: GETR) makes sharing cars and trucks simple through its proprietary cloud and in-car Getaround Connect® technology. The company empowers consumers to shift away from car ownership through instant and convenient access to desirable, affordable, and safe cars from entrepreneurial hosts. Getaround’s on-demand technology enables a contactless experience — no waiting in line at a car rental facility, manually completing paperwork or meeting anyone to collect or drop off car keys. Getaround’s purpose is to propel the world’s transition to a more sustainable society, economy and environment with its peer-to-peer connected carsharing marketplace. Launched in 2011, Getaround is available today in more than 1,000 cities across 8 countries including the United States and Europe. For more information, please visit https://www.getaround.com/.

Forward-Looking Statements

This press release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995. In particular, the statements contained in the quotations of our Chief Executive Officer and Interim Chief Financial Officer with respect to expectations regarding the Company’s competitive position in the carsharing space, improving margins and growing with positive unit economics, and positive trends related to Trip Contribution Margin and Adjusted EBITDA. Forward-looking statements can be identified by the fact that they do not relate strictly to historical facts and generally contain words such as "believes”, "expects”, "may”, "will”, "should”, "seeks”, "approximately”, "intends”, "plans”, "estimates”, "anticipates”, and other expressions that are predictions of or indicate future events. Although the forward-looking statements contained in this press release are based upon information available at the time the statements are made and reflect management's good faith beliefs, forward-looking statements inherently involve known and unknown risks, uncertainties and other factors, including the dilutive effect of future financings, which may cause the actual results, performance or achievements to differ materially from anticipated future results.

These risks and uncertainties include those described in our filings which we make with the SEC from time to time, including the risk factors contained in our Annual Report on Form 10-K for the year ended December 31, 2023. You should not place undue reliance on these forward-looking statements, which speak only as of the date hereof. We do not undertake to update or revise any forward-looking statements after they are made, whether as a result of new information, future events, or otherwise, except as required by applicable law.

Consolidated Balance Sheet
(In thousands, except share and per share data) June 30, 2024 December 31, 2023
(Unaudited)
Assets
Current Assets
Cash and cash equivalents $

30,861

 

$

15,624

 

Accounts receivable, net

731

 

853

 

Prepaid expenses and other current assets

6,707

 

10,131

 

Total Current Assets $

38,299

 

$

26,608

 

Property and equipment, net

1,641

 

8,504

 

Operating lease right-of-use assets, net

1,270

 

12,162

 

Goodwill

93,058

 

95,869

 

Intangible assets, net

8,469

 

13,358

 

Other assets

6,982

 

4,635

 

Total Assets $

149,719

 

$

161,136

 

Liabilities and Stockholders’ Equity (Deficit)
Current Liabilities
Accounts payable $

7,401

 

$

15,552

 

Accrued host payments and insurance fees

19,630

 

13,192

 

Operating lease liabilities, current

181

 

2,268

 

Notes payable, current ($0 and $18,568 measured at fair value, respectively)

2,418

 

19,904

 

Other accrued liabilities

43,062

 

48,107

 

Deferred revenue

2,634

 

684

 

Total Current Liabilities $

75,326

 

$

99,707

 

Notes payable ($50,130 and $0 measured at fair value, respectively)

52,078

 

2,122

 

Convertible notes payable ($54,850 and $40,370 measured at fair value, respectively)

54,850

 

40,469

 

Operating lease liabilities (net of current portion)

1,089

 

15,487

 

Deferred tax liabilities

262

 

212

 

Warrant liability

30

 

20

 

Total Liabilities $

183,635

 

$

158,017

 

Stockholders’ Equity (Deficit)
Common stock, $0.0001 par value, 1,000,000,000 shares authorized; 96,660,499 and 92,827,281 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively $

10

 

$

9

 

Additional paid-in capital

866,574

 

859,163

 

Stockholder notes

(8,284

)

(8,284

)

Accumulated deficit

(918,945

)

(875,955

)

Accumulated other comprehensive income

26,729

 

28,186

 

Total Stockholders’ Equity (Deficit) $

(33,916

)

$

3,119

 

Total Liabilities and Stockholders’ Equity (Deficit) $

149,719

 

$

161,136

 

Consolidated Statements of Operations and Comprehensive Loss

Three Months Ended June 30,

 

 

Six Months Ended June 30,

(In thousands, except per share data) (Unaudited)

2024

 

 

2023

 

 

2024

 

 

2023

Service revenue $

18,307

 

$

18,224

 

$

35,113

 

$

29,423

 

Lease revenue

277

 

396

 

627

 

717

 

Total Revenues $

18,584

 

$

18,620

 

$

35,740

 

$

30,140

 

 
Costs and Expenses
Cost of revenue

(exclusive of amortization and depreciation shown separately below):
Service $

1,660

 

$

1,730

 

$

3,576

 

$

3,075

 

Lease

14

 

36

 

54

 

75

 

Sales and marketing

5,736

 

7,728

 

8,968

 

11,368

 

Operations and support

12,680

 

16,024

 

27,290

 

28,126

 

Technology and product development

4,292

 

4,291

 

8,411

 

8,130

 

General and administrative

13,501

 

14,194

 

27,450

 

28,562

 

Depreciation and amortization

2,772

 

3,297

 

6,645

 

5,779

 

Total Operating Expenses $

40,655

 

$

47,300

 

$

82,394

 

$

85,115

 

Loss from Operations $

(22,071

)

$

(28,680

)

$

(46,654

)

$

(54,975

)

Other Income (Expense)
Convertible promissory note and note payable fair value adjustment

11,359

 

(2,244

)

(6,022

)

676

 

Warrant liability fair value adjustment

(3

)

184

 

(9

)

173

 

Interest income (expense), net

(55

)

78

 

(150

)

284

 

Other income, net

(1,267

)

185

 

9,884

 

395

 

Total Other Income (Expense) $

10,034

 

$

(1,797

)

$

3,703

 

$

1,528

 

Loss before Benefit for Income Taxes $

(12,037

)

$

(30,477

)

$

(42,951

)

$

(53,447

)

Income Tax Expense (Benefit)

(12

)

(208

)

39

 

(379

)

Net Loss $

(12,025

)

$

(30,269

)

$

(42,990

)

$

(53,068

)

Change in fair value of the convertible instrument liability

1,514

 

-

 

1,161

 

-

 

Foreign Currency Translation (Loss) Gain

(307

)

(586

)

(2,618

)

235

 

Comprehensive Loss $

(10,818

)

$

(30,855

)

$

(44,447

)

$

(52,833

)

 
Net Loss Per Share Attributable to Stockholders:
Basic $

(0.12

)

$

(0.33

)

$

(0.44

)

$

(0.57

)

Diluted $

(0.12

)

$

(0.33

)

$

(0.44

)

$

(0.57

)

Weighted average shares outstanding (Basic and Diluted)

98,321,295

 

92,608,276

 

97,498,510

 

92,460,655

 

Non-GAAP Financial Measures

We use Gross Booking Value, Gross Margin from Service Revenue, Trip Contribution Profit, Trip Contribution Margin and Adjusted EBITDA, each of which are non-GAAP financial measures, in conjunction with GAAP measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies, and to communicate with the Getaround Board concerning our financial performance. Our definitions of these non-GAAP financial measures may differ from definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar financial measures. Furthermore, these financial measures have certain limitations in that they do not include the impact of certain expenses that are reflected in our consolidated statements of operations that are necessary to run our business. Thus, these non-GAAP financial measures should be considered in addition to, and not as a substitute for, or in isolation from, financial measures prepared in accordance with GAAP.

We compensate for these limitations by providing a reconciliation of each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP. We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure, and to view the non-GAAP financial measures in conjunction with their most directly comparable GAAP financial measures.

Trip Contribution Profit and Trip Contribution Margin

Trip Contribution Profit is defined as our gross profit from Service revenue adjusted for: (i) cost of Service revenue, amortization and depreciation; and (ii) trip support costs, which consist of auto insurance expenses, claims support and customer relations costs. We define Trip Contribution Margin as Trip Contribution Profit divided by Service revenue recognized during the period presented. We believe these measures are leading indicators of our ability to achieve profitability and sustain or increase it over time. Trip Contribution Profit and Trip Contribution Margin are measures we use to understand and evaluate our operating performance and trends. Trip Contribution Profit and Trip Contribution Margin have generally increased over the periods as Service revenue increased while costs considered in the calculation of Trip Contribution Profit decreased as a percentage of Total Revenues.

The following tables present a reconciliation of Trip Contribution Profit from the most comparable GAAP measure, gross profit from Service revenue, for the periods presented:

Trip Contribution Profit and Trip Contribution Margin
(In thousands, except percentages) Three Months Ended June 30, 2024 Three Months Ended June 30, 2023
Gross profit from Service revenue $

16,154

 

$

15,559

 

Gross margin from Service revenue

88

%

85

%

 
Plus: Cost of Service revenue, amortization and depreciation

502

 

935

 

Less: Trip support costs

(6,941

)

(8,609

)

 
Trip Contribution Profit $

9,715

 

$

7,885

 

Trip Contribution Margin

53

%

43

%

 
 
 
 
 
 
Gross Profit and Gross Margin
(In thousands, except percentages) Three Months Ended June 30, 2024 Three Months Ended June 30, 2023
Service revenue $

18,307

 

$

18,224

 

Less: Cost of Service revenue, net of amortization and depreciation

(1,651

)

(1,730

)

Less: Cost of Service revenue, amortization and depreciation

(502

)

(935

)

 
Gross profit from Service revenue $

16,154

 

$

15,559

 

Gross margin from Service revenue

88

%

85

%

 
 
 
 
 
 
Contribution Profit and Contribution Margin
(In thousands, except percentages) Three Months Ended June 30, 2024 Three Months Ended June 30, 2023
Net revenue $

18,584

 

$

18,620

 

Variable operating expenses

(13,027

)

(15,747

)

Contribution profit $

5,557

 

$

2,873

 

 
Contribution margin

30

%

15

%

 

Adjusted EBITDA

We define Adjusted EBITDA as net income adjusted for: (i) fair value adjustment of instruments carried at fair value; (ii) interest income (expense) and other income (expense); (iii) income tax provision; (iv) depreciation and amortization; (v) stock-based compensation expense; (vi) contingent compensation; and (vii) certain expenses determined to be incurred outside of the regular course of business which includes: one-time expenses related to the shutdown of the Green St. Office, legal fees to raise capital, certain legal settlements and business combination-related legal fees, and investments in preparation of going public, initial implementation projects and transaction costs associated with proposed business combinations that are not subject to deferral. Adjusted EBITDA is a key performance measure that we use to assess operating performance and operating leverage of our business. As Adjusted EBITDA facilitates internal comparisons of our historical operating performance on a more consistent basis, we use this measure for business planning purposes. Accordingly, we believe that Adjusted EBITDA provides useful to investors and others in understanding and evaluating our results of operations in the same manner as our management and board of directors. The items excluded from our Adjusted EBITDA calculation are either non-cash in nature, or not driven by core results of recurring operations and therefore not predictable or recurring, rendering comparisons with prior periods and competitors less meaningful.

The following tables present a reconciliation of Adjusted EBITDA from the most comparable GAAP measure, Net Loss, for the periods presented:

Adjusted EBITDA
(In thousands) Three Months Ended June 30, 2024 Three Months Ended June 30, 2023
Net Loss $

(12,025

)

$

(30,269

)

Plus: warrant liability, convertible promissory note and note payable fair value adjustment

(11,356

)

2,060

 

Plus: interest and other income (expense), net

1,322

 

(263

)

Minus: income tax benefit

(12

)

(208

)

Plus: depreciation and amortization

2,772

 

3,297

 

Plus: stock-based compensation

4,112

 

2,840

 

Plus: expense not incurred in the regular course of business

3,774

 

190

 

Adjusted EBITDA $

(11,413

)

$

(22,353

)

 

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