Getaround, the peer-to-peer carsharing platform
Getaround recently released its third-quarter earnings report, marking a significant milestone since its public debut through a SPAC combination a year ago. While the report indicates robust revenue growth, the company is still grappling with the challenge of aligning its expenses with its income.
In Q3, Getaround recorded gross bookings of $69 million, translating into $23.8 million in revenue—a notable increase from the $16.7 million reported in the same period last year. The cumulative revenue for the first nine months of 2023 reached $54 million.
Investors have responded positively to the 42% year-over-year revenue growth, propelling Getaround’s shares up by 75% in after-hours trading. However, the company faces ongoing financial hurdles.
Operating expenses for Q3 amounted to $42.9 million, with a cumulative $128 million across the first three quarters, surpassing gross profits for both periods. Although there is progress in improving profitability, with a 16% reduction in net GAAP losses compared to Q3 2022, Getaround remains in the red. Adjusted EBITDA for the most recent quarter stood at -$11.3 million, indicating a 43% improvement from the previous year.
For the full year 2023, aims for a gross booking value between $200 million and $205 million. However, specific revenue goals were not disclosed. The Q3 revenues annualized to over $95 million, while the company anticipates an adjusted EBITDA loss ranging from $68 million to $70 million in 2023.
Closing Q3 with $22.1 million in cash and cash equivalents, a notable decrease from the previous year, Getaround secured a $3 million infusion from Mudrick Capital, providing some financial relief.
Despite the positive market response, stock value remains below $1 per share, risking delisting. The company previously implemented layoffs in February, reducing expenses by $25 million to $30 million annually. Delisting threats arose when its share price plummeted, prompting a focused effort to streamline operations.
Getaround addressed concerns about delisting notices, citing the completion of a complex go-public transaction as a contributing factor. CEO Sam Zaid expressed confidence that the compliance issues are resolved but did not comment on the potential use of a reverse stock split to boost share prices.
The acquisition of HyreCar’s assets in May aimed to enhance Getaround’s scale, though it initially increased operating costs. The company remains optimistic that the acquisition will expedite its journey to profitability.
In summary, while Getaround shows promise with its revenue growth, the company grapples with financial challenges and faces the ongoing risk of delisting. Strategic measures, including cost-cutting and acquisitions, are underway to navigate these hurdles. This update incorporates additional insights from Getaround’s CEO.
