Getaround, the innovative peer-to-peer carsharing company, has released its highly anticipated first earnings report after going public through a SPAC combination last year. While the report highlights impressive revenue growth, the company is still struggling to generate enough revenue to cover its expenses.
In the third quarter, Getaround reported gross bookings of $69 million, resulting in a revenue increase to $23.8 million, up from $16.7 million in the same period last year. However, for the first three quarters of the year, the company’s revenue only totaled to $54 million.
Despite a significant 42% year-over-year revenue growth in the third quarter, investors are still cautious as Getaround’s expenses continue to overshadow its gross profit. In fact, the company had operating expenses of $42.9 million in the third quarter and a staggering $128 million for the first nine months of the year.
However, Getaround is making some progress in terms of profitability. In the third quarter, the company reported a net loss of $27.3 million on a GAAP basis, which is a 16% improvement from the previous year. Additionally, using more generous profit calculations, Getaround reported an adjusted EBITDA of -$11.3 million, a 43% improvement from the previous year.
Looking ahead, Getaround is aiming for a gross booking value of $200 million to $205 million for the full-year 2023, with no specific revenue goals. However, based on its third-quarter data, the company has an annualized run-rate of over $95 million. Getaround also expects to report an adjusted EBITDA loss of $68 million to $70 million in 2023.
Closing the third quarter with $22.1 million in cash and cash equivalents, Getaround is facing financial strain as this number is significantly lower than the $64.3 million reported in the same period last year. This decrease in cash reserves is due to the company’s acquisition of startup HyreCar in May, which has added to its operating costs. Getaround hopes that this acquisition will help accelerate its path to profitability through increased scale.
However, in February, Getaround was forced to make some tough decisions in an attempt to reach sustainability. The company laid off 10% of its staff, resulting in $25 million to $30 million in annual expense savings. Unfortunately, this was not enough, as the New York Stock Exchange issued a delisting notice due to Getaround’s low share price.
Today, despite its impressive share-price gains after releasing its earnings report, Getaround’s stock is still worth less than $1 per share, putting it at risk of being delisted. To prevent this, some SPAC combinations have executed reverse stock splits to boost their share price.
Moreover, Getaround has received delisting notices for failing to timely file yearly and quarterly reports. The company did not file its 2022 annual report and has only recently filed its third-quarter earnings report. Getaround explains that the delay was due to additional time needed to complete an audit, which has now been completed.
“Getaround continues to work towards regaining compliance,” said Harry Nicholas, a spokesperson for Getaround.
Despite the challenges, Getaround is determined to overcome them and succeed in the long run. With its innovative business model and acquired assets from HyreCar, the company is making strides towards profitability and sustainability. Only time will tell if Getaround will achieve its goals and fully turn its business around.
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