Executive Summary

Q3 2022 revenue rose 19% year over year to $72.9M; consolidated gross margin reached a record 38% as Bird delivered its first positive Adjusted EBITDA ($0.2M) and positive cash flow from operations ($2.2M) .
Management withdrew FY2022 revenue guidance due to a revenue restatement (failed payment recognition) and pending recognition of “breakage” revenue on rider wallet balances expected in Q4; FY2023 still targets positive Adjusted EBITDA while cutting the Adjusted OpEx run-rate to $120–$130M by early FY2023 (from prior ≤$160M) .
Bird is exiting unprofitable markets (full exit from Germany, Sweden, Norway, and wind-down in dozens of smaller markets) to prioritize profitability; management said these exits are estimated to increase gross profit by roughly $10M annually and enable further OpEx savings .
Liquidity is tight: management raised substantial doubt about going concern with $38.5M in unrestricted cash at 9/30/22; they amended the $150M vehicle financing facility and paid down $45M to reduce future interest/amortization and improve seasonal flexibility .

What Went Well and What Went Wrong

What Went Well

First quarter of positive Adjusted EBITDA ($0.2M) and positive operating cash flow ($2.2M), supported by record consolidated gross margin (38%) and efficiency gains in the Sharing business .
Ride Profit Margin (before vehicle depreciation) improved to 55% (+10 pts YoY), helped by lower operating costs and scaling across larger fleet manager partners; net loss narrowed to $(9.8)M from $(42.1)M YoY .
Cost actions tracking ahead: cumulative $80M annual run-rate savings achieved; new target for an incremental $30–$40M annualized reduction by early 2023; CEO: “We successfully delivered our first quarter of positive Adjusted EBITDA and positive cash flow from operations… now targeting an incremental $30 to $40 million of annualized cost reductions” .

What Went Wrong

Revenue accounting restatement (failed payments recognized as revenue) forced withdrawal of FY2022 revenue guidance; management expects Q4 “breakage” revenue recognition and a true-up, but near-term visibility is reduced .
Going concern warning: unrestricted cash of $38.5M at quarter-end deemed insufficient for the next 12 months without additional funding; potential need to scale back or discontinue operations absent new capital .
Utilization pressure: Average Rides per Deployed Vehicle per Day fell to 1.5x from 2.1x YoY (–26%); call remarks cited over-ordering during supply chain constraints and a mismatch between ride volume and vehicle deployment that will take “quarters” to optimize .

Financial Results

Consolidated P&L and Profitability (USD)

Metric	Q1 2022	Q2 2022	Q3 2022
Revenue ($M)	$38.0	$76.7	$72.9
Gross Margin (%)	9%	(17)%	38%
Ride Profit Margin % (before Vehicle Depreciation)	39%	53%	55%
Total Operating Expenses ($M)	$100.2	$317.9	$29.4
Adjusted Operating Expenses ($M)	$50.0	$56.0	$40.0
Net Income (Loss) ($M)	$10.4	$(310.4)	$(9.8)
Adjusted EBITDA ($M)	$(36.8)	$(19.1)	$0.2

Notes: Adjusted Operating Expenses and Adjusted EBITDA are non-GAAP as defined by the company; see reconciliations in the press releases .

Segment Revenue ($M)

Segment	Q1 2022	Q2 2022	Q3 2022
Sharing	$33.6	$72.4	$68.8
Product Sales	$4.4	$4.3	$4.1

KPIs

KPI	Q1 2022	Q2 2022	Q3 2022
Rides (M)	7.3	14.5	16.5
Avg Rides per Deployed Vehicle per Day (x)	1.0x	1.5x	1.5x
Average Deployed Vehicles (k)	78.9	109.9	117.3
Gross Transaction Value ($M)	$43.1	$86.0	$89.4

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2022	$275–$325M (Q2 guide)	Withdrawn (Q3)	Withdrawn
Adjusted OpEx Run-Rate	Early FY 2023	≤$160M (FY2022 run-rate, Q2)	$120–$130M run-rate by early FY23	Lowered target
Adjusted EBITDA	Q3 2022	Positive (guided)	Positive actual in Q3 ($0.2M)	Achieved
Adjusted EBITDA	FY 2023	Positive (guided)	Goal remains positive FY2023	Maintained
Breakage Revenue	Q4 2022 onward	n/a	Expect ongoing recognition; Q4 true-up expected	New item
Market Footprint	2022–2023	n/a	Exit Germany, Sweden, Norway; wind-down in dozens of small/mid markets	Strategic realignment
Vehicle Financing	2022	n/a	Amended facility; $45M paydown to reduce interest/amortization	Improves flexibility

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2 2022)	Current Period (Q3 2022)	Trend
Cost discipline	Q1: Announced ≥$80M run-rate savings; target Q3 positive Adj. EBITDA . Q2: On track; reiterated positive Q3 and FY23; Adj. OpEx run-rate ≤$160M .	Achieved $80M run-rate savings; targeting additional $30–$40M; new run-rate $120–$130M by early FY23 .	Accelerating savings
Regulatory/legal & footprint	n/a in Q1; Q2 focused on macro and business model .	Exiting 3 European countries and several dozen markets; cites lack of robust regulatory frameworks in select locales .	Rationalizing markets
Supply chain & deployment	Q1: Vehicle spend high to secure supply amid disruptions .	Over-ordered in 2021; mismatch between rides and deployment; optimizing placement will take “quarters” .	Improving discipline
Financing/liquidity	Q1: Standby equity purchase agreement up to $100M; $150M vehicle facility .	Going concern warning; facility amended; $45M paydown; $38.5M unrestricted cash at 9/30 .	Elevated risk, actions taken
Accounting & estimates	n/a in Q1/Q2 press releases.	Restatement for failed payments; breakage revenue true-up expected in Q4; withdrew FY22 revenue guide .	Reset and rebuild credibility
Pricing & unit economics	Q2: Record Sharing gross profit; unit economics benefited from fleet manager model .	Record 38% gross margin; Sharing gross margin 37%; Ride Profit Margin (pre-dep) 55% .	Improving margins

Management Commentary

CEO Shane Torchiana: “We successfully delivered our first quarter of positive Adjusted EBITDA and positive cash flow from operations… As we continue to set the bar higher, we are now targeting an incremental $30 to $40 million of annualized cost reductions… and will continue to drive toward our goal of achieving positive Adjusted EBITDA in full year fiscal 2023.” .
CEO on footprint: “The lack of a robust regulatory framework in select cities and countries creates an operating environment that is unsustainable… we made the decision… to reduce our footprint… including a full exit from three European countries” .
CFO Ben Lu: “Our gross margin reached an all-time high… These earlier cost optimization initiatives, along with additional savings ahead from our reduced city footprint and cost realignment, are now expected to result in an annualized Adjusted Operating Expense run-rate of $120 million to $130 million by early fiscal year 2023.” .
CFO on restatement and guidance withdrawal: “While the restatement… reduced our historical revenues… we… expect to record… breakage revenue… As a result of these two accounting adjustments, we are withdrawing our previous fiscal year 2022 revenue guidance of $275 to $325 million.” .

Q&A Highlights

Market exits and profitability impact: “These market exits are estimated to increase our gross profit dollars by about roughly $10 million on an annualized basis,” with additional OpEx savings from EMEA consolidation .
Deployment optimization: CEO described it as both an analytical/technology exercise and a change management effort with fleet managers; adoption will be “measured in quarters as opposed to in weeks or in months” .
Cost run-rate into 2023 and liquidity: Management reiterated the reduced Adjusted OpEx run-rate target and discussed available financing tools, including standby equity capacity, while highlighting going concern risks given current cash levels .

Estimates Context

S&P Global (Capital IQ) consensus estimates for BRDS were unavailable via our data connector at the time of analysis; therefore, we cannot provide authoritative “vs. consensus” comparisons for revenue or EPS for Q3 2022. As a result, we anchor comparisons to company-reported results only and note the withdrawal of FY2022 revenue guidance, which likely necessitates downward revisions to Street revenue models, partially offset by expected Q4 breakage revenue recognition .

Key Takeaways for Investors

Profitability-first pivot is real: record 38% gross margin, first positive Adjusted EBITDA and operating cash flow, and a materially lower target Adjusted OpEx run-rate should support medium-term breakeven ambitions if volumes hold .
Near-term uncertainty high: restatement and breakage accounting cloud FY2022 comparability; revenue guidance withdrawal removes a key anchor for estimates, increasing model risk .
Liquidity remains the swing factor: going concern disclosure and low unrestricted cash highlight urgency for external capital, operating cash generation, and/or further cost cuts; facility amendment and $45M paydown help but are not a panacea .
Strategic pruning should lift unit economics: exiting unprofitable markets and focusing on regulatory-friendly geographies is expected to add ~$10M in annual gross profit and reduce OpEx, improving returns on deployed vehicles .
Execution watchlist: raise utilization (RpD), align fleet deployment with demand, and deliver on Q4 breakage revenue timing; management indicates deployment optimization will take multiple quarters to fully realize .
Trading setup: headlines on liquidity, restatement progress, and additional cost actions are likely to drive stock reactions near term; sustained margin performance and cash generation are the catalysts to re-rate the equity .

Additional context (for trend analysis):

Q1 2022: Revenue $38.0M; gross margin 9%; Adjusted EBITDA $(36.8)M; launched ≥$80M cost savings plan and guided to positive Q3 Adj. EBITDA .
Q2 2022: Revenue $76.7M; consolidated gross margin (17)% as product sales were de-emphasized; Adjusted EBITDA $(19.1)M; reiterated FY2022 revenue $275–$325M and positive Q3/FY23 Adj. EBITDA guidance .

Sources: Q3 2022 8-K and press release (including financial statements, reconciliations, and disclosures) ; Q2 2022 8-K and press release ; Q1 2022 8-K and press release ; Q3 2022 earnings call transcript (prepared remarks and Q&A excerpts) .

Bird Global, Inc. (BRDS)·Q3 2022 Earnings Summary