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GI

Getaround, Inc (GETR)·Q3 2024 Earnings Summary

Executive Summary

  • Q3 revenue of $22.4M declined 5.9% year over year on the planned New York exit but rose sequentially from $18.6M in Q2; GAAP net loss narrowed to $15.5M and Adjusted EBITDA loss improved to $9.3M, reflecting cost actions and operating discipline .
  • Gross Margin from Service Revenue expanded to 90% (+300 bps YoY), though Trip Contribution Margin fell to 48% (-400 bps YoY), indicating mix/insurance dynamics despite efficiency gains .
  • Liquidity update: amended Mudrick super-priority secured note to $97.84M principal at 15% interest, maturing Aug 7, 2026, with 108% repayment at maturity; senior secured and subject to mandatory prepayment from asset sale proceeds, signaling access to capital but at high cost and with restrictive terms .
  • No formal guidance and no Q3 call (management plans to resume calls at FY-end); consensus estimates from S&P Global were unavailable at time of writing—monitor for estimate resets on revenue trajectory and loss narrowing as restructuring takes hold .

What Went Well and What Went Wrong

  • What Went Well

    • Sequential growth and cost discipline: “sequential top-line growth from the second quarter… coupled with an 18% reduction in Adjusted EBITDA loss” with “operational execution and a focus on cost optimization” (AJ Lee, Interim CEO) .
    • Margin expansion at the gross level: Gross Margin from Service Revenue improved to 90% (+300 bps YoY), evidencing product/pricing/COGS improvements .
    • Losses narrowing: GAAP net loss improved to $15.5M from $27.3M YoY, and Adjusted EBITDA loss improved to $9.3M from $11.3M YoY, consistent with the restructuring narrative .

  • What Went Wrong

    • Revenue down YoY: $22.4M vs $23.8M prior-year, driven by the suspension of New York operations, demonstrating revenue sensitivity to regulatory/geographic exits .
    • Unit economics pressure: Trip Contribution Margin declined to 48% (-400 bps YoY), suggesting higher trip support costs/insurance or mix effects offsetting gross margin gains .
    • Heavy, expensive financing: Super-priority note increased to $97.84M at 15% with 108% payoff, ranking senior to other debt and mandating prepayment from asset sales, elevating financial risk and limiting flexibility; company’s forward-looking statements also cite potential dilutive financings as a risk .

Financial Results

P&L and key profitability metrics

MetricQ1 2024Q2 2024Q3 2024
Total Revenue ($M)$17.2 $18.6 $22.4
GAAP Net Loss ($M)$(31.0) $(12.0) $(15.5)
Diluted EPS ($)$(0.32) N/A$(0.15)
Adjusted EBITDA ($M)$(15.3) $(11.4) $(9.3)
Gross Margin from Service Revenue (%)83% 88% 90%
Trip Contribution Margin (%)40% 53% 48%
Gross Booking Value ($M)$44.9 $53.0 $65.1

Notes:

  • Q3 YoY revenue decline reflects the New York suspension; sequential growth reflects ongoing execution .
  • Q2 Trips were 235k (context for throughput; Q1/Q3 not disclosed) .

Consensus vs actual (S&P Global)

  • Q3 2024 Revenue Consensus Mean: N/A (not retrievable at time of writing).
  • Q3 2024 Primary EPS Consensus Mean: N/A (not retrievable at time of writing).
    Values could not be retrieved due to S&P Global data access limits at the time of the request; the company did not provide guidance to triangulate .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Company guidanceQ4/FY 2024None providedNone provided; company expects to resume conference calls at end of fiscal 2024Maintained: no quantitative guidance

Earnings Call Themes & Trends

Note: No Q3 call was held; themes below compare Q1/Q2 disclosures to Q3 press.

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q3 2024)Trend
Cost restructuring/operating disciplineQ1: Restructuring to reduce opex; expect EBITDA improvement from Q2 onward . Q2: Opex reduced; Adjusted EBITDA loss improved 49% YoY .Sequential revenue growth and 18% YoY improvement in Adjusted EBITDA loss; CEO emphasizes cost optimization .Improving margins and losses narrowing.
Regulatory/geographic exits (NY)Q1: Suspended NY consumer operations due to disproportionately high insurance requirements .Q2: NY exit pressured trips/revenue YoY .Q3: NY exit cited as primary driver of YoY revenue down .
Liquidity/financingQ1: $20M Jan + up to $50M Apr financing secured (up to $70M) .Q2: Secured additional $50M; drew $20M in July via Mudrick facility .Q3: Super-priority note increased to $97.84M, 15% coupon, 108% payoff, senior secured .
Product/technology & AIQ2: Emphasis on Connect, TrustScore (AI risk), global platform, Key Exchange; exploring AI for personalization, pricing, support .Q3: Not emphasized in the press release; focus on operations and margins .Execution-focused; tech/AI narrative paused publicly in Q3.
Gig/HyreCar & partnershipsQ1: Growth opportunities in Drive with Uber and HyreCar Gig; European expansion .Q2: HyreCar synergies expanded Drive with Uber; utilization and longer rentals .Q3: Not highlighted in the release .
Governance/leadershipQ1: Leadership transition underway .Q2: New board members; Interim CFO appointed .Q3: COO AJ Lee appointed Interim CEO .
Listing statusQ2: Withdrew NYSE appeal; remains public OTC; may reevaluate later .Q3: No update in release .Stable; focus on fundamentals.

Management Commentary

  • “We believe Getaround continues to gain momentum following our restructuring efforts… sequential top-line growth from the second quarter… 18% reduction in Adjusted EBITDA loss… operational execution and a focus on cost optimization” – AJ Lee, Interim CEO (Q3 press) .
  • “During the first half of 2024 we aggressively… right-size expenses… maintain our positive momentum with margin improvement while growing in markets and segments with profitable unit economics.” – CEO (Q2 press) .
  • “Trip Contribution profit was $9.7 million, up 23% YoY, driven by reductions in support costs… operating expenses totaled $40.7 million… adjusted EBITDA… $11.4 million loss [improved].” – Interim CFO (Q2 call) .
  • “We… raised additional capital to fund operations into 2025… integrating our North America operations into our global platform and withdrawing from certain unprofitable markets.” – CEO (Q1 press) .

Q&A Highlights

Note: No Q3 call; themes below reflect the Q2 call’s structured Q&A.

  • Exchange listing and path forward: Management withdrew NYSE appeal, remains public OTC, focusing on operational turnaround; will reevaluate listing options when appropriate .
  • Profitability vs growth: Management will not sacrifice growth, but will pursue segments aligned with profitable unit economics; emphasizes proven business model and balancing optimization with growth .
  • Differentiation: Connect (keyless, app-based access), AI-driven TrustScore risk model, unified global platform, and experienced team cited as core differentiators .
  • AI deployment: Exploring AI for personalization, dynamic base pricing, risk pricing via TrustScore, and customer support automation .
  • NY/regulatory challenge: State-level legislation continues to pose operating hurdles (e.g., NY suspension) .

Estimates Context

  • Q3 2024 S&P Global consensus for revenue and EPS was not retrievable at the time of analysis due to access limits; the company did not issue quantitative guidance, and no Q3 call was held to anchor near-term outlook .
  • Implications: Absent guidance, the sequential revenue inflection and improved Adjusted EBITDA loss provide positive signals; however, lower Trip Contribution Margin and high-cost senior secured financing may temper aggressive estimate upgrades until clearer visibility emerges .

Guidance Changes

  • The company provided no quantitative guidance and indicated it expects to resume hosting quarterly calls at the end of fiscal 2024 .

Key Takeaways for Investors

  • Sequential re-acceleration: Revenue rose to $22.4M from $18.6M in Q2, indicating renewed traction despite the NY exit; watch for continuation into Q4/FY call resumption .
  • Efficiency gains: Service gross margin expanded to 90% and losses narrowed (GAAP and Adjusted EBITDA), supporting the restructuring case .
  • Mixed unit economics: Trip Contribution Margin slipped to 48% YoY; monitor insurance/claims and mix as they scale GBV and gig programs .
  • Liquidity at a price: $97.84M super-priority note (15% interest, 108% payoff) strengthens runway but increases financial leverage and restrictiveness—equity dilution or further debt actions remain risks per forward-looking statements .
  • Regulatory overhang: NY suspension continues to weigh on YoY comps; broader regulatory environment remains a key external variable .
  • Execution catalysts: Resumption of earnings calls, further margin improvements, stabilization/improvement in Trip Contribution, and evidence of durable GBV growth are likely stock catalysts .
  • Monitoring list: Cash balance updates, trajectory of Adjusted EBITDA, insurance claims trends, and any developments in financing or listing strategy .

Appendix: Additional Data and Definitions

  • Non-GAAP definitions and reconciliations (Gross Booking Value, Trip Contribution, Adjusted EBITDA) are described in Q3, Q2, and Q1 press materials; investors should review these alongside GAAP metrics .
  • Q3 operational loss noted at $16.5M, providing additional context for GAAP P&L trajectory .