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Zoomcar Reports Significant Profitability Improvement in its Second Quarter Financial 2024 Results

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Zoomcar (NASDAQ: ZCAR) reported improved Q2 2024 financial results, with contribution profit reaching $1.21 million (54% of revenue), up from a loss of $0.12 million in Q2 2023. Bookings increased 7% to 105,160, driven by a 1.5x increase in guest repeat booking rate. The company achieved significant cost reductions: 81% in marketing, 55% in repairs, and 52% in technology expenses. Net loss per share decreased to $4.43 from $2,568.82 year-over-year, while Adjusted EBITDA loss reduced to $1.47 million from $3.87 million. Active high-quality cars increased 6% to 5,830, with guest trip ratings improving to 4.63.

Zoomcar (NASDAQ: ZCAR) ha riportato risultati finanziari migliorati nel secondo trimestre del 2024, con un profitto operativo che ha raggiunto 1,21 milioni di dollari (54% dei ricavi), in aumento rispetto a una perdita di 0,12 milioni di dollari nel secondo trimestre del 2023. Le prenotazioni sono aumentate del 7%, raggiungendo 105.160, sostenute da un incremento di 1,5 volte nel tasso di prenotazione ripetuta degli ospiti. L'azienda ha ottenuto significative riduzioni dei costi: 81% nel marketing, 55% nelle riparazioni e 52% nelle spese tecnologiche. La perdita netta per azione è diminuita a 4,43 dollari rispetto a 2.568,82 dollari anno su anno, mentre la perdita dell'EBITDA rettificato si è ridotta a 1,47 milioni di dollari da 3,87 milioni. Il numero di auto di alta qualità attive è aumentato del 6% a 5.830, con le valutazioni dei viaggi degli ospiti che migliorano a 4,63.

Zoomcar (NASDAQ: ZCAR) reportó resultados financieros mejorados en el segundo trimestre de 2024, con una ganancia de contribución que alcanzó 1,21 millones de dólares (54% de los ingresos), en comparación con una pérdida de 0,12 millones de dólares en el segundo trimestre de 2023. Las reservas aumentaron un 7% hasta 105,160, impulsadas por un incremento de 1.5 veces en la tasa de repetición de reservas de los huéspedes. La compañía logró reducciones significativas de costos: 81% en marketing, 55% en reparaciones y 52% en gastos tecnológicos. La pérdida neta por acción disminuyó a 4,43 dólares desde 2,568.82 dólares interanualmente, mientras que la pérdida del EBITDA ajustado se redujo a 1,47 millones de dólares desde 3,87 millones. El número de autos de alta calidad activos aumentó un 6% a 5,830, con las calificaciones de los viajes de los huéspedes mejorando a 4,63.

Zoomcar (NASDAQ: ZCAR)는 2024년 2분기 개선된 재무 결과를 보고했으며, 기여 이익이 121만 달러(수익의 54%)에 달해 2023년 2분기의 12만 달러 손실에서 증가했습니다. 예약이 7% 증가했습니다, 105,160건에 달하며, 손님 재예약 비율이 1.5배 증가한 데 힘입었습니다. 회사는 마케팅에서 81%, 수리에서 55%, 기술 비용에서 52%의 비용 절감을 이루었습니다. 주당 순손실은 연간 2,568.82달러에서 4.43달러로 감소하였고, 조정된 EBITDA 손실은 387만 달러에서 147만 달러로 줄어들었습니다. 고품질 자동차의 활성 수는 6% 증가하여 5,830대에 달했으며 손님 여행 평점은 4.63으로 향상되었습니다.

Zoomcar (NASDAQ: ZCAR) a annoncé des résultats financiers améliorés pour le deuxième trimestre de 2024, avec un bénéfice de contribution atteignant 1,21 million de dollars (54% des revenus), contre une perte de 0,12 million de dollars au deuxième trimestre de 2023. Les réservations ont augmenté de 7% pour atteindre 105 160, soutenues par une augmentation de 1,5 fois du taux de réservation répétée des clients. L'entreprise a réalisé des réductions de coûts significatives : 81% en marketing, 55% en réparations et 52% en dépenses technologiques. La perte nette par action a diminué à 4,43 dollars contre 2 568,82 dollars d'une année sur l'autre, tandis que la perte d'EBITDA ajusté a été réduite à 1,47 million de dollars contre 3,87 millions de dollars. Le nombre de voitures de haute qualité actives a augmenté de 6% pour atteindre 5 830, les évaluations des voyages des clients s'améliorant à 4,63.

Zoomcar (NASDAQ: ZCAR) meldete verbesserte Finanzzahlen für das zweite Quartal 2024, wobei der Beitraggewinn 1,21 Millionen Dollar (54% des Umsatzes) erreichte, im Vergleich zu einem Verlust von 0,12 Millionen Dollar im zweiten Quartal 2023. Die Buchungen stiegen um 7% auf 105.160, angetrieben durch einen 1,5-mal höheren Wiederbuchungsrate der Gäste. Das Unternehmen erzielte erhebliche Kostensenkungen: 81% im Marketing, 55% bei Reparaturen und 52% bei Technologiekosten. Der Nettoverlust pro Aktie verringerte sich im Jahresvergleich auf 4,43 Dollar von 2.568,82 Dollar, während der Verlust des bereinigten EBITDA auf 1,47 Millionen Dollar von 3,87 Millionen Dollar sank. Die Anzahl der aktiven hochwertigen Autos stieg um 6% auf 5.830, wobei die Reisebewertungen der Gäste auf 4,63 verbessert wurden.

Positive
  • Contribution profit reached record $1.21M (54% of revenue) vs -$0.12M loss year-over-year
  • Significant cost reductions: marketing (81%), repairs (55%), technology (52%)
  • Bookings increased 7% to 105,160
  • Net loss per share decreased substantially from $2,568.82 to $4.43
  • Adjusted EBITDA loss reduced by 62% to $1.47M
  • Active high-quality cars increased 6% to 5,830
Negative
  • Company still operating at a loss with -$1.47M Adjusted EBITDA
  • Net loss per share remains negative at -$4.43

Insights

The Q2 FY24 results demonstrate significant operational improvements for Zoomcar. The standout metric is the contribution profit reaching $1.21 million (54% of revenue), a dramatic turnaround from a loss in the same quarter last year. The company has effectively executed cost optimization, achieving substantial reductions across key expense categories: 81% in marketing, 55% in maintenance and 52% in technology costs.

While the 7% growth in bookings to 105,160 shows modest expansion, the $1.47 million Adjusted EBITDA loss represents meaningful progress in reducing cash burn. The dramatic reduction in net loss per share from $2,568.82 to $4.43 indicates improved operational efficiency, though the company remains unprofitable. The focus on high-quality cars and improved customer ratings suggests a sustainable path to profitability, but investors should monitor booking growth acceleration and continued margin expansion.

BANGALORE, India, Nov. 14, 2024 /PRNewswire/ -- Zoomcar Holdings, Inc. (NASDAQ: ZCAR) ('Zoomcar,' or 'we,' or 'our'), the leading marketplace for car sharing in India, today announced results for its second quarter ended September 30, 2024.

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Hiroshi Nishijima, CEO of Zoomcar stated, "By making customer experience our top priority, we've been able to organically boost guest repeat bookings and improve host retention. This focus has allowed us to optimize costs, particularly in marketing spend, cash incentives, and discounts, driving a significant improvement in our contribution profit. With a stronger contribution margin, our primary goal is now to grow the number of bookings by bringing in more Guests and achieving more frequent repeat usage. Despite shorter average booking durations, our contribution margin remains robust, making the total number of bookings our most critical metric."

Key Highlights:

  1. Net loss per share significantly declined for the quarter ended September 30, 2024 to $4.43 per share as compared to $2,568.82 per share during the same quarter last year.
  2. Contribution profit reached a record high of $1.21 million (54% of revenue), a significant improvement from a loss of $0.12 million (-5%) in the same quarter last year and $0.46 million (20%) in the previous quarter.
  3. The number of bookings rose by 7%, from 97,970 in the previous quarter to 105,160, in the quarter ended September 30, 2024, driven by 1.5x increase in the guest repeat booking rate.
  4. Cost optimization efforts resulted in a 55% reduction in repair and maintenance costs, a 52% reduction in technology expenses (such as cloud services), and an 81% decrease in marketing costs. All reductions are a comparison of the quarter ended September 30, 2024 vs the same quarter last year.
  5. Adjusted EBITDA loss decreased significantly to $1.47 million in the quarter ended September 30, 2024 as compared to $3.87 million for the same quarter last year.
  6. Average Guest trip ratings saw a significant improvement, rising from 4.16 (out of 5) on March 31, 2024, to 4.70 on June 30, 2024. We are maintaining the improved ratings at 4.63 on September 30, 2024, reflecting our ongoing commitment to enhancing the customer experience.
  7. Active high quality cars (with an average rating of more than 4.5 out of 5) increased by 6% from 5,516 cars for the previous quarter to 5,830 cars for the quarter ended September 30, 2024, signaling the improvement of Host retention rate.

We will have a deeper discussion in our Q2 2024 Earnings call:

We would like to invite all shareholders to our Q2 2024 Earnings Call, scheduled for November 14, 2024, at 10:00 AM Eastern Time. Please register in advance through this link - https://us06web.zoom.us/webinar/register/WN_y4xI8uNhTOqMj-fEB8oU4g#/registration

For more details, you can access the full quarterly report here.

Media contact details
Akarshit Gulati: akarshitg@avianwe.com
Bhagyashree Rewatkar: bhagyashree.rewatkar@zoomcar.com

About Zoomcar:

Founded in 2013 and headquartered in Bengaluru, India, Zoomcar is a leading marketplace for car sharing focused in India. The Zoomcar community connects Hosts with Guests, who choose from a selection of cars for use at affordable prices, promoting sustainable, smart transportation solutions in India.

Forward Looking Statement:

Certain statements contained in this press release are not historical facts and may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "plans," "expects," "believes," "anticipates," and similar words are intended to identify forward-looking statements. These forward-looking statements include, but are not limited to, statements concerning our expected revenue growth and improved profitability, and our financial forecasts. Forward-looking statements are based on our current expectations and beliefs, and involve a number of risks and uncertainties that are difficult to predict and that could cause actual results to differ materially from those stated or implied by the forward-looking statements. A description of certain of these risks, uncertainties and other matters can be found in filings we make with the U.S. Securities and Exchange Commission, all of which are available at www.sec.gov. Because forward-looking statements involve risks and uncertainties, actual results and events may differ materially from results and events currently expected by us, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect any change in its expectations with regard to these forward-looking statements or the occurrence of unanticipated events.

Non-GAAP Financial Measure:

To supplement our financial statements, which are presented on the basis of U.S. generally accepted accounting principles (GAAP), the following non-GAAP measures of financial performance are included in this release: contribution margin, and adjusted EBITDA. A reconciliation of GAAP to adjusted non-GAAP financial measures is included as an attachment to this press release. We believe these non-GAAP financial measures are useful to investors in assessing our operating performance. We use these financial measures internally to evaluate our operating performance and for planning and forecasting of future periods. We also believe it is in the best interests of investors to provide this non-GAAP information. While we believe these non-GAAP financial measures provide useful supplemental information to investors, there are limitations associated with the use of these non-GAAP financial measures. These non-GAAP financial measures may not be reported by competitors, and they may not be directly comparable to similarly titled measures of other companies due to differences in calculation methodologies. The non-GAAP financial measures are not an alternative to GAAP information and are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures. They should be used only as a supplement to GAAP information and should be considered only in conjunction with our consolidated financial statements prepared in accordance with GAAP.

Reconciliation of GAAP to Non-GAAP Metrics

The following is the reconciliation of adjusted EBITDA to the most comparable GAAP measure for three months and six months ending September 30, Net Loss.


For the Three Months Ended Sep 30,

For the Six Months Ended Sep 30,

2024

2023

2024

2023

Net Loss

$  (3,351,976)

$  (12,402,287)

$  (5,883,554)

$  (41,183,419)

Add/ (deduct)





Stock-based compensation

-

173,693

-

617,905

Depreciation and amortization

101,809

255,126

215,136

510,607

Finance costs

2,160,178

8,363,800

2,320,963

29,884,357

Finance costs to related parties

-

12,915

-

25,777

Other income, net

(28,006)

(271,497)

(1,031,781)

(522,716)

Other income from related parties

-

(1,626)

-

(5,676)

Gain on troubled debt restructuring

(352,447)

-

(352,447)

-

Adjusted EBITDA

$  (1,470,442)

$ (3,869,876)

$  (4,731,683)

$  (10,673,165)

Adjusted EBITDA is a non-GAAP financial measure that represents our net income or loss adjusted for (i) provision for income taxes; (ii) other income and (expense), net; (iii) depreciation and amortization; (iv) stock-based compensation expense; (v) finance costs; and (vi) Gain on trouble debt restructuring.

Contribution Profit/(Loss)

The following is the calculation of Contribution Profit/(Loss) to the most comparable GAAP measure for three months and six months ending September 30, Net Revenue.


For the Three Months Ended Sep 30,

For the Six Months Ended Sep 30,


2024

2023

2024

2023

Net revenue

$  2,246,897

$  2,681,008

$  4,487,882

$  5,295,626

Cost of revenue

1,213,422

2,737,486

2,725,711

6,348,468

Gross Profit/(Loss)

1,033,475

(56,478)

1,762,171

(1,052,842)

Add: Depreciation and amortization in COR

74,306

210,435

149,179

419,370

Add: Stock-based compensation in COR

-

15,526

-

83,035

Add: Overhead costs in COR  (rent, software support, insurance, travel)

145,346

306,403

350,321

739,295

Less: Host Incentives and Marketing costs (excl. brand marketing)

45,361

598,578

594,744

1,478,093

   Less: Host incentives

30,242

145,210

77,864

275,025

   Less: Marketing costs (excl. brand marketing)

15,119

453,368

516,880

1,203,048

Contribution Profit / (Loss)

1,207,766

(122,692)

1,666,927

(1,289,235)

Contribution margin

54 %

-5 %

37 %

-24 %

We define contribution profit (loss) as our gross profit plus (a) depreciation expense included in cost of revenue, (b) stock-based compensation expense included in cost of revenue, (c) other general costs included in cost of revenue (rent, software support, insurance, travel); less (i) Host incentive payments and (ii) marketing and promotional expenses (excluding brand marketing).

Logo: https://mma.prnewswire.com/media/2517562/5014195/Zoomcar_Logo.jpg

 

Cision View original content:https://www.prnewswire.com/news-releases/zoomcar-reports-significant-profitability-improvement--in-its-second-quarter-financial-2024-results-302305434.html

SOURCE Zoomcar

FAQ

What was Zoomcar's (ZCAR) contribution profit in Q2 2024?

Zoomcar's contribution profit reached $1.21 million (54% of revenue) in Q2 2024, compared to a loss of $0.12 million in Q2 2023.

How much did Zoomcar (ZCAR) reduce its marketing costs in Q2 2024?

Zoomcar reduced its marketing costs by 81% in Q2 2024 compared to the same quarter last year.

What was Zoomcar's (ZCAR) booking growth in Q2 2024?

Zoomcar's bookings increased by 7% from 97,970 to 105,160 in Q2 2024, driven by a 1.5x increase in guest repeat booking rate.

What was Zoomcar's (ZCAR) Adjusted EBITDA loss in Q2 2024?

Zoomcar's Adjusted EBITDA loss was $1.47 million in Q2 2024, down from $3.87 million in Q2 2023.

Zoomcar Holdings, Inc.

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Rental & Leasing Services
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