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Zoomcar Holdings, Inc. (IOAC)·Q3 2024 Earnings Summary

Executive Summary

  • Q3 FY2024 delivered modest revenue growth but strong unit economics: revenue rose to $2.45M (+1% YoY), bookings increased 19% YoY to 103,599, and contribution profit reached a record $1.28M (52% margin), marking five consecutive quarters of positive contribution profit .
  • Losses narrowed materially YoY: GAAP net loss was $(7.92)M vs $14.43M in Q3 FY2023; adjusted EBITDA loss improved to $(3.15)M from $(10.17)M in Q3 FY2023, supported by cost reductions across cost of revenue (-28% YoY), technology (-41% YoY), and marketing (-80% YoY) .
  • Customer experience metrics improved: average guest trip ratings reached 4.70/5 and “high quality” active cars rose 24% QoQ to 7,247, driven by higher repeat-user booking rates (2.0x YoY) .
  • Balance sheet actions continued: company raised $15M in FQ3 FY2024 and $3M in February 2025, with ongoing debt restructuring and plans to raise additional capital to reduce balance sheet burden and fund growth .

What Went Well and What Went Wrong

What Went Well

  • Record contribution profit and sustained margin improvement: contribution profit rose to $1.28M with a 52% margin, from $0.21M (9%) in Q3 FY2023, reflecting improved platform quality and disciplined cost controls .
  • Demand/retention metrics strengthened: bookings grew 19% YoY to 103,599 and repeat user booking rates doubled YoY (2.0x), supporting growth without heavy marketing spend; active high-quality cars increased 24% QoQ to 7,247 .
  • Management quote on CX-led momentum: “We’re seeing the improvements we’ve made in the customer experience bearing fruit… contribution profit reaching an all time high in FQ3… combining a greater customer experience and our efforts to increase supply…” — CEO Hiroshi Nishijima .

What Went Wrong

  • GAAP profitability remains negative: adjusted EBITDA loss of $(3.15)M and GAAP net loss of $(7.92)M in Q3 FY2024, though improved YoY; continued need for capital and debt restructuring highlights balance sheet constraints .
  • Slight sequential bookings softness vs Q2: Q3 bookings (103,599) were below Q2 (105,160), implying near-term normalization despite stronger repeat usage trends .
  • EPS comparability remains noisy given corporate actions (including reverse split in Oct 2024), complicating quarter-to-quarter per-share metrics for investors tracking reported EPS .

Financial Results

MetricQ3 2023Q2 2024Q3 2024
Revenue ($USD Millions)$2.42 N/A$2.45
Net Loss ($USD Millions)$(14.43) N/A$(7.92)
Adjusted EBITDA ($USD Millions)$(10.17) $(1.47) $(3.15)
Contribution Profit ($USD Millions)$0.209 $1.21 $1.284
Contribution Margin (%)9% 54% 52%
Bookings (#)86,917 105,160 103,599

KPIs

KPIQ2 2024Q3 2024
Average Guest Trip Rating (out of 5)4.63 4.70
Active High-Quality Cars (#, rating >4.5)5,830 7,247
Contribution Profit per Booking ($)N/A$12.39
Cost of Revenue (YoY change)N/A-28%
Technology Expense (YoY change)N/A-41%
Marketing Expense (YoY change)N/A-80%

Notes: The company also highlighted December 2024 as its highest-ever unaudited monthly contribution profit ($494,506), evidencing continued momentum into quarter-end .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueQ4 FY2024 / FY2025Not providedNot providedMaintained (no formal guidance issued)
Adjusted EBITDAQ4 FY2024 / FY2025Not providedNot providedMaintained (no formal guidance issued)
Balance Sheet / CapitalQ3 FY2024–Feb 2025N/ARaised $15M in Q3 FY2024; $3M in Feb 2025; continuing debt restructuring; in process of raising additional capitalUpdated

No tax rate, OI&E, or dividend guidance disclosed in Q3 FY2024 materials .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 FY2024)Previous Mentions (Q2 FY2024)Current Period (Q3 FY2024)Trend
Customer Experience & Repeat UsagePlatform ratings at all-time high; repeat usage improving 1.5x increase in repeat booking rate; ratings maintained at 4.63 Repeat user booking rate doubled YoY (2.0x); ratings at 4.70 Improving
Cost OptimizationSignificant reductions in cost of revenue and Opex highlighted Deep cuts in repair/maintenance (-55%), tech (-52%), marketing (-81%) YoY YoY declines continue: CoR (-28%), tech (-41%), marketing (-80%) Sustained discipline
Unit Economics (Contribution Margin)Third consecutive quarter of positive contribution profit Record contribution profit; margin 54% Record contribution profit; margin 52%; five consecutive quarters Positive, consistent
Supply/Host RetentionActive high-quality cars increased; verification/process improvements Active high-quality cars up to 5,830 (+6% QoQ) Active high-quality cars rose to 7,247 (+24% QoQ) Improving
Capital & Balance SheetOperational efficiency focus; groundwork for growth Announced Q2 call and ongoing investor communications Raised capital ($15M in Q3; $3M in Feb), continued debt restructuring; seeking additional capital Active balance sheet actions

Note: A full written earnings call transcript is not posted publicly; the company provided a webcast replay and an earnings presentation PDF .

Management Commentary

  • “We’re seeing the improvements we’ve made in the customer experience bearing fruit, with repeat users doubling this quarter… and contribution profit reaching an all time high in FQ3.” — CEO Hiroshi Nishijima .
  • Management emphasized ongoing cost optimization and marketing spend efficiency as drivers of improved unit economics and contribution margin .
  • The company highlighted fundraising and debt restructuring efforts to reduce balance sheet burden and support sustainable growth .

Q&A Highlights

  • A formal transcript of analyst Q&A was not published; the company hosted a Zoom webinar and provided a replay link and presentation materials. No granular Q&A clarifications are available in document form .

Estimates Context

  • Wall Street consensus estimates via S&P Global (Capital IQ) for Q3 FY2024, Q2 FY2024, and Q1 FY2024 were unavailable due to missing CIQ mapping for IOAC/ZCAR. As a result, we cannot present beats/misses versus S&P Global consensus. Values retrieved from S&P Global were unavailable due to mapping constraints* [GetEstimates attempt error].

Key Takeaways for Investors

  • Unit economics are improving materially: consecutive quarters of positive contribution profit and rising contribution margins indicate durable progress in monetization and cost discipline; this is the core driver of medium-term margin expansion narrative .
  • Demand quality is rising even with reduced marketing: higher repeat usage and guest ratings, alongside more high-quality vehicles, suggest the platform flywheel is strengthening, which should reduce CAC and support gross margin trajectory .
  • GAAP loss persists; capital structure remains a key variable: continued fundraising ($18M across Q3 and Feb 2025) and debt restructuring are critical to liquidity and investment capacity, and remain an important stock narrative driver in the near term .
  • Near-term trading implication: absent formal guidance and consensus visibility, traders should watch for incremental disclosures on fundraising, debt terms, and sequential bookings momentum; any updates can act as catalysts given small cap dynamics .
  • Medium-term thesis: execution on host retention, repeat usage, and cost structure supports a path to adjusted EBITDA breakeven; monitoring contribution profit per booking and cost of revenue trajectory is essential for validating the margin story .
  • EPS comparability remains limited: corporate actions (e.g., reverse split in Oct 2024) and evolving share counts complicate EPS-based assessments; focus on operational KPIs and adjusted EBITDA for trend analysis .
  • Watch macro/regulatory items: while not highlighted in Q3, prior communications note the India-first operating model is not affected by US-India tariff dynamics; any regulatory changes impacting shared mobility or KYC could influence platform costs and quality metrics .

Sources and documents reviewed:

  • Q3 FY2024 press release and investor page .
  • Q3 FY2024 earnings presentation PDF .
  • Q2 FY2024 press release .
  • Q1 FY2024 press release .
  • Meetings & Events (webcast resources) .
  • SEC filing (Oct 17, 2024) noting corporate actions (reverse split) .

Note: We searched for an 8-K 2.02 and full call transcript for Q3 FY2024 but did not find them in the document catalog. The company disseminated Q3 results via press release, investor site, and presentation, with call replay links provided; a written transcript was not posted.