Sign in

You're signed outSign in or to get full access.

BG

Bird Global, Inc. (BRDS)·Q4 2022 Earnings Summary

Executive Summary

  • Q4 2022 revenue was $69.7M, up 41% year over year, aided by $28.8M of unredeemed preloaded wallet “breakage” recognized in the quarter; consolidated gross margin improved to 42% (+35 pts YoY) and Adjusted EBITDA reached $6.1M, Bird’s second consecutive positive quarter .
  • Management issued 2023 guidance: Adjusted Operating Expense ≤$100M, Adjusted EBITDA $15–$20M, and positive cash flow of $5–$10M; CFO added expectations for positive cash flow starting in Q2 2023 .
  • Strategic actions included exiting unprofitable EMEA/North America markets and acquiring Bird Canada, adding profitable, cash flow–generative operations and ~$30M capital; unit economics improved (Ride Profit before depreciation up to 72% of Sharing revenue) .
  • Risks remain elevated: going concern language reiterated due to limited unrestricted cash ($33.5M at year‑end) and financing needs; revenue guidance for FY22 was withdrawn in Q3 amid restatement, and product sales margins remain negative .
  • Stock-relevant narrative: breakage recognition lifted reported Q4 revenue and margins, but durability hinges on cost discipline, regulatory wins, and achieving 2023 free cash flow; going concern and capital access remain key overhangs .

What Went Well and What Went Wrong

  • What Went Well

    • Gross margins and unit economics improved materially: consolidated gross margin 42% (+35 pts YoY); Ride Profit before depreciation $49.7M and 72% of Sharing revenue vs 53% YoY .
    • Second consecutive quarter of positive Adjusted EBITDA ($6.1M); management guided to FY2023 Adjusted EBITDA $15–$20M and positive cash flow $5–$10M, citing “rightsized footprint” and cost discipline .
    • Strategic footprint optimization and Bird Canada acquisition: “added profitable, cash flow generating operations in Canada and a $30 million cash investment” (CEO); “laser-focused on improving gross margins and reducing operating expenses” (CFO) .

  • What Went Wrong

    • Going concern warning: unrestricted cash $33.5M deemed insufficient for next 12 months absent funding; substantial doubt about ability to continue as a going concern .
    • Product Sales remains a drag: Q4 product sales revenue $0.6M and negative gross margin; FY22 saw $31.8M inventory impairment and product sales gross margin of $(30.6)M .
    • Prior guidance instability and accounting issues: FY22 revenue guidance of $275–$325M (issued in Q2) was withdrawn in Q3 following restatement for failed payments; breakage recognition drove Q4 revenue uplift, limiting quality of beat .

Financial Results

MetricQ4 2021Q2 2022Q3 2022Q4 2022
Revenue ($USD Millions)$49.5 $76.7 $72.9 $69.7
Consolidated Gross Margin (%)7% (17)% 38% 42%
Sharing Gross Margin (%)7% 27% 37% 43%
Net Loss ($USD Millions)$(47.7) $(310.4) $(9.8) $(36.4)
Adjusted EBITDA ($USD Millions)$(23.8) $(19.1) $0.2 $6.1
Total Operating Expenses ($USD Millions)$135.8 $317.9 $29.4 $58.5
Adjusted Operating Expenses ($USD Millions)$59.3 $56.0 $40.0 $42.3

Segment Revenue

Segment Revenue ($USD Millions)Q4 2021Q2 2022Q3 2022Q4 2022
Sharing$40.5 $72.4 $68.8 $69.1
Product Sales$9.0 $4.3 $4.1 $0.6

KPIs

KPIQ4 2021Q2 2022Q3 2022Q4 2022
Rides (Millions)9.4 14.5 16.5 8.2
Rides per Deployed Vehicle per Day (x)1.3x 1.5x 1.5x 1.0x
Average Deployed Vehicles (Thousands)0.1 109.9 117.3 0.1
Gross Transaction Value ($USD Millions)$59.5 $86.0 $89.4 $74.8
Ride Profit (Before Vehicle Depreciation) ($USD Millions)$21.5 $38.4 $37.7 $49.7
Ride Profit Margin % (Before Vehicle Depreciation)53% 53% 55% 72%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Adjusted Operating ExpenseFY 2023$120–$130M run-rate by early FY 2023 ≤$100M Lowered (better)
Adjusted EBITDAFY 2023Positive FY 2023 (no range) $15–$20M Maintained positive; specified range
Cash FlowFY 2023Not providedPositive $5–$10M; CFO expects positive starting Q2 2023 Introduced
RevenueFY 2022$275–$325M Withdrawn in Q3 2022 Withdrawn

Earnings Call Themes & Trends

TopicQ2 2022 (Aug)Q3 2022 (Nov)Q4 2022 (Mar)Trend
Cost discipline / AOECost savings initiatives; aiming positive Adj. EBITDA in Q3 and FY23 Additional $30–$40M savings; AOE run-rate $120–$130M by early FY23 Target ≤$100M AOE in FY23 Increasing savings; tighter cost targets
Asset efficiency / deploymentEmphasis on Fleet Manager model efficiencies Operating efficiencies; footprint exits to focus on profitable markets Data-driven deployment to boost utilization; improve repair rate; end-of-life depreciation management More granular, data‑driven execution
Regulatory environment—“Lack of robust regulatory framework” in select markets; footprint reduction Cities favoring 2–3 operators; permits won in Dallas, Baltimore, Doha, Abu Dhabi, Seattle Improving regulatory tailwinds in core cities
Product sales pivotShift away from Product Sales; $31.8M inventory impairment One-time contra cost benefit; continued deemphasis Product sales minimal; gross margin negative Continued exit; drag diminishing in scale
Capital / LiquidityCash and restricted cash $105M at Q2 end Going concern risk; amended vehicle financing; $45M paydown Unrestricted cash $33.5M; debt repayments; going concern reiterated Liquidity tighter; financing actions ongoing
Strategic M&A——Completed Bird Canada acquisition; ~$30M capital; profitable ops Adds accretive markets and capital

Management Commentary

  • CEO Shane Torchiana: “We have sharpened our focus on our core Sharing business and exited unprofitable operations… acquisition of Bird Canada… added profitable, cash flow generating operations… In the fourth quarter, we saw dramatically improved gross margins and reduced operating expenses, which position Bird to generate positive Adjusted EBITDA and Free Cash Flow in 2023.”
  • CFO Michael Washinushi: “We are laser-focused on improving gross margins and reducing operating expenses… we expect [core operating expense run-rate] to be below $100 million in fiscal year 2023, accelerating our positive Adjusted EBITDA and Free Cash Flow goals… We ended the year with total cash of $39 million, including $33 million of unrestricted cash… expect to return to positive cash flow starting in the second quarter of 2023.”
  • Q&A (unit economics and regulation): Management emphasized asset efficiency via “data driven” deployment, improved repair cycle, and end‑of‑life depreciation handling; regulatory backdrop moving to 2–3 operator permits with recent wins in multiple cities (Dallas, Baltimore, Doha, Abu Dhabi, Seattle), viewed as a tailwind .

Q&A Highlights

  • Unit economics drivers: Focus on asset efficiency (right vehicles in right places based on demand modeling), faster repairs to boost deployment, and managing end‑of‑life depreciation to constrain capex needs .
  • Regulatory environment: Movement toward limited-operator permits in U.S. and EMEA; Bird highlighted permit wins and stickiness once established as a trusted operator .
  • Footprint strategy: 2023 focus on optimizing existing cities rather than broad expansion; selective adds where permits and unit economics support free cash flow .
  • Cash flow trajectory: Reinforced expectation to turn positive in Q2 2023 as seasonal demand returns and cost measures take hold .

Estimates Context

  • S&P Global Wall Street consensus for Q4 2022 revenue and EPS was unavailable due to a missing CIQ mapping for BRDS; therefore, comparisons to consensus cannot be provided at this time. Values would normally be retrieved from S&P Global; unavailable in this case.

Key Takeaways for Investors

  • Quality of Q4 revenue/margin uplift was influenced by one-time breakage recognition ($28.8M), but underlying Sharing unit economics improved (Ride Profit before depreciation 72% of Sharing revenue) and Adjusted EBITDA was positive for a second consecutive quarter .
  • 2023 plan is explicitly cost- and cash-flow oriented: AOE ≤$100M, Adjusted EBITDA $15–$20M, positive cash flow $5–$10M with CFO targeting positive starting Q2 2023; monitor execution on cost reductions and seasonality benefits into Q2/Q3 .
  • Strategic refocus (exit of unprofitable markets) and Bird Canada acquisition provide a path to profitable, cash flow–generative operations; track permit wins and regulatory consolidation in key cities as medium-term tailwinds .
  • Liquidity and capital access remain the crux: going concern language and limited unrestricted cash elevate refinancing and capital raise risk; watch debt amortization alignment and cash burn cadence through Q1/Q2 .
  • Product sales drag is shrinking in scale, but legacy impairments underscore focus on Sharing; expect continued deemphasis of Product Sales to support margin stability .
  • Operational KPIs highlight seasonality and deployment challenges (RpD fell to 1.0x in Q4); improved data-driven deployment and repair cycles should support utilization as weather improves .
  • Near-term trading: sensitivity to any capital-raising announcements and Q2 cash flow inflection; medium-term thesis hinges on sustained cost discipline, permit wins, and demonstrated free cash flow generation per guidance .