Zoomcar Holdings Inc., a leading car-sharing marketplace in emerging markets, has released selected financial results for the third fiscal quarter ending December 31, 2023, along with insights into its strategic priorities and key performance indicators.
CEO and Co-Founder Greg Moran expressed satisfaction with the company’s performance during the quarter, highlighting record gross profit and non-GAAP contribution profit. He also emphasized Zoomcar’s successful public listing on Nasdaq, signifying a significant milestone.
Zoomcar continues to focus on strategic priorities:
- Vehicle Hosting Mainstream: The company aims to popularize vehicle hosting as much as renting a car through Zoomcar. It has observed double-digit supply growth across major regions in India, with active vehicle listings reaching 10.3K in the third fiscal quarter of 2023. Zoomcar Hosts earned approximately $4 million during this period.
- Perfecting Core Guest Experience: Zoomcar is committed to enhancing the booking experience for its community of guests through technology-driven product innovation. It introduced over 20 new features and upgrades in the third quarter of 2023 to improve vehicle listing discoverability, price comparison capabilities, search filters, and the payment experience at checkout.
- Expansion Beyond India: Zoomcar is making steady progress in expanding beyond India. In Egypt, bookings are scaling up while efforts are underway to achieve sustainable non-GAAP contribution margins at the country level. In Indonesia, the focus is on building a suitable supply mix to attract consistent demand to the platform. The company plans to invest further in these markets in 2024 and explore opportunities for new country expansions later in the year.
Key Performance Indicators:
- Average Transaction Size: Zoomcar achieved a record average transaction size of over $75 per booking in the third fiscal quarter of 2023.
- Booked Days and Guests: Total booked days and guests were 163.9K and 68.1K, respectively.
- Active Vehicle Listings: The platform reached a record of 10.3K active vehicle listings in the third fiscal quarter of 2023.
- Platform Quality: The platform’s average guest trip rating was 4.50 out of 5 in the same period, indicating ongoing improvements in the customer experience.
Financial Results for the Third Quarter of 2023:
- Net Revenue: Net revenue decreased by 19% to $2.4 million compared to the same period in the previous year, primarily due to a lower number of booked days.
- Gross Profit: Gross profit increased to a record $0.3 million, compared to a loss of $0.3 million in the same period last year.
- Operating Expenses: Operating expenses (excluding G&A costs) decreased by 24% to $2.2 million, driven by reductions in sales and marketing costs and technology and development costs.
- Net Income: GAAP net income was $14.4 million, compared to a net loss of $8.7 million in the same period last year, primarily due to a one-time gain associated with financial instrument conversions.
- Gross Booking Value (GBV): GBV was $6.5 million, down from $8.3 million in the same period last year, reflecting the company’s focus on booking level profitability improvements.
Financial Outlook for Calendar Year 2024:
- Zoomcar projects net revenue to range between $17.0 million and $20.0 million for the calendar year ending December 31, 2024, representing a significant increase compared to the previous year.
- The company expects to achieve an annualized adjusted EBITDA run rate between $2.0 million and $4.0 million in the fourth quarter of 2024.
Overall, Zoomcar remains focused on driving growth, enhancing profitability, and expanding its presence across emerging markets.
