Sign in

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

GI

Getaround, Inc (GETR)·Q1 2024 Earnings Summary

Executive Summary

  • Q1 2024 revenue grew 49% year-over-year to $17.2M, driven by gig (HyreCar) and pricing optimization; service gross margin expanded to 83% and Trip Contribution Profit rose 38% to $6.8M .
  • GAAP net loss improved year-over-year (−$31.0M, down 36%), while Adjusted EBITDA loss improved 23% to −$15.3M; other income included ~$10.8M from a Broadspire settlement (net cash ~$10.3M) .
  • Management executed board/leadership transition, raised up to $70M of financing (drawn $20M in Jan and $20M in Apr; super priority note later increased to ~$61.7M on Apr 29), and initiated restructuring to reduce OpEx; Q1 fixed OpEx expected to be the peak with Adjusted EBITDA improvement starting Q2 2024 .
  • Operational pivot: integrated North America into the global platform and suspended New York consumer carsharing from Apr 1, 2024 (annual revenue −$5–$7M, but +$2M improvement to annual Trip Contribution Profit), focusing on profitable growth (Uber/HyreCar gig, Europe expansion) .
  • Wall Street S&P Global consensus was unavailable; third-party estimates indicate a miss on EPS (−$0.32 vs −$0.20) and revenue ($17.16M vs higher consensus), highlighting investor focus on cost actions and gig growth narrative .

What Went Well and What Went Wrong

  • What Went Well

    • “Total Revenues Up 49% and Gross Booking Value Up 41% YoY” with Trip Contribution Profit +38% to $6.8M; service gross margin improved to 83% from 81% .
    • CEO: “Realigned priorities to focus on achieving profitable growth…integrating North America operations into our global platform and withdrawing from unprofitable markets” .
    • CFO: “First quarter represents the year’s high point in fixed operating expenses…expect ongoing cost improvements; anticipate continued improvement in Adjusted EBITDA beginning in Q2 2024” .

  • What Went Wrong

    • Trip Contribution Margin fell to 40% (from 44% YoY) due to higher trip support costs (insurance/claims) tied to HyreCar integration and market mix .
    • New York exit reduces annual revenue by $5–$7M (offset by unit economics), signaling near-term topline pressure while improving profitability; management flagged need to right-size expense profile .
    • Consensus context: third-party estimates indicated an EPS and revenue miss, underscoring sensitivity to near-term execution and claims costs .

Financial Results

Revenue, EPS, margins vs prior year (Q1 YoY) and most recent available quarter

MetricQ1 2023 (YoY base)Q3 2023Q1 2024
Total Revenues ($USD Millions)$11.52 $23.80 $17.16
Service Revenue ($USD Millions)$11.20 $23.39 $16.81
Gross Booking Value ($USD Millions)$31.91 $69.24 $44.93
Gross Profit from Service Revenue ($USD Millions)$9.03 $20.42 $13.89
Service Gross Margin (%)81% 87% 83%
Trip Contribution Profit ($USD Millions)$4.88 $12.07 $6.75
Trip Contribution Margin (%)44% 52% 40%
GAAP Net Loss ($USD Millions)$(22.80) $(27.35) $(30.97)
Diluted EPS ($)$(0.25) $(0.29) $(0.32)
Adjusted EBITDA ($USD Millions)$(19.86) $(11.28) $(15.28)

Geographic revenue breakdown (Service and Lease revenue)

GeographyQ1 2023 Service ($M)Q3 2023 Service ($M)Q1 2024 Service ($M)Q1 2023 Lease ($M)Q3 2023 Lease ($M)Q1 2024 Lease ($M)
United States$6.85 $14.20 $11.39 $0.21 $0.22 $0.12
Europe$4.35 $9.19 $5.42 $0.11 $0.19 $0.23
Total$11.20 $23.39 $16.81 $0.32 $0.41 $0.35

KPIs

KPIQ1 2023Q3 2023Q1 2024
Gross Booking Value ($USD Millions)$31.91 $69.24 $44.93
Trips (Thousands)196 271 202

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Fixed Operating ExpensesFY 2024Not previously quantifiedQ1 expected to be the year’s high point in fixed OpEx; ongoing cost improvements through 2024 Qualitative lowered trajectory
Adjusted EBITDAFY 2024Not previously quantifiedExpect continued improvement starting Q2 2024 Qualitative raised trajectory
Revenue (NY State exit impact)AnnualizedN/AAnnualized service revenue −$5–$7M due to NY exit (effective Apr 1) Lowered
Trip Contribution Profit (NY exit impact)AnnualizedN/AAnnualized Trip Contribution Profit +$2M from NY exit Raised

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2023 / FY 2023)Current Period (Q1 2024)Trend
Restructuring/OpExReduction in marketing and corporate overhead; restructuring commenced in early 2023 Q1 fixed OpEx peak; ongoing cost improvements expected Cost discipline intensifying
Gig (Uber/HyreCar)HyreCar acquisition closed May 2023; gig revenues contributed materially CEO highlights Drive with Uber and HyreCar Gig as high-growth vectors Expanding gig focus
Geography mix & EuropeEU service revenue growth; NMV includes EU insurance share EU still strong; Q1 EU service $5.42M; U.S. $11.39M Balanced growth; U.S. restructuring
Insurance / Trip support costsElevated claims with HyreCar integration; expecting TrustScore to reduce claims Trip support costs pressured margins; TrustScore and market exits to improve unit economics Improving claims trajectory
Financing & LiquidityMudrick convertible notes and super priority note initiated in 2023 Financing expanded; Fifth A&R Super Note to $61.68M (Apr 29) Extended runway
Regulatory/Market exitsOperating constraints in certain states (insurance/claims costs) NY State suspension from Apr 1 due to insurance requirements 50x rental car limits Portfolio optimization

Management Commentary

  • CEO: “We have realigned our business priorities to focus on achieving profitable growth…integrating our North America operations into our global platform and withdrawing from certain unprofitable markets” .
  • CEO (Wedbush Conference): “2024 is a fix‑it year…reduce fixed costs, focus on profitable volume; partnerships with Uber and OEMs will be key for scaling profitably” .
  • CFO: “First quarter will represent the year’s high point in fixed operating expenses…we anticipate ongoing cost improvements…and expect continued improvement in Adjusted EBITDA beginning in Q2 2024” .

Q&A Highlights

  • No Q1 2024 earnings call transcript was found; management hosted a call/webcast on May 9, 2024 per Business Wire, but transcript is not available .
  • Wedbush Disruptive Transportation Conference (May 16): CEO emphasized restructuring, profitable growth, insurance underwriting improvements, and strategic partnerships (Uber, potential OEM native connect), indicating an execution-focused tone .

Estimates Context

  • S&P Global consensus data unavailable at this time (tool limit).
  • Third-party estimates indicate:
    • EPS: Actual −$0.32 vs Zacks consensus −$0.20 → bold miss (−60% surprise) .
    • Revenue: Actual $17.16M vs consensus higher (article cited miss) → bold miss .
  • Implication: Estimates may need to adjust for the NY exit revenue headwind, claims cost trajectory, and restructuring benefits to OpEx/Adjusted EBITDA beginning Q2 2024 .

Key Takeaways for Investors

  • Gig-led growth with HyreCar and Uber programs supported Q1 revenue acceleration; Europe remains a meaningful contributor, while U.S. consumer carsharing is being optimized for unit economics .
  • Margin dynamics: service gross margin improved YoY; Trip Contribution Margin compressed on higher trip support costs—management expects improvement as cost actions and TrustScore effects flow through H2 2024 .
  • Restructuring/OpEx: Q1 likely the peak; tangible Adjusted EBITDA improvement targeted from Q2—watch quarterly OpEx run-rate and claims expense lines for confirmation .
  • Liquidity: additional super priority financing extended runway (to 2026 maturity); monitor covenant compliance and cost of capital implications .
  • NY exit reduces revenue but enhances profitability; investors should recalibrate revenue models (−$5–$7M annual) and raise Trip Contribution assumptions (+$2M annual) .
  • Non-recurring tailwind in Q1 from Broadspire settlement (other income ~$10.8M, net cash ~$10.3M); strip this from core profitability assessment .
  • Near-term trading: sensitivity to claims cost trends and confirmation of OpEx reductions; medium-term thesis hinges on gig scaling, partnerships (Uber/OEM), and European expansion driving profitable growth .