micromobility.com Inc. (MCOM)·Q3 2022 Earnings Summary

Executive Summary

• Q3 2022 revenue was $3.68M, down 22% year over year and down 16% sequentially; net loss was $24.56M with a basic/diluted EPS of $(0.45) . Media revenue grew 42% YoY but carried heavy cost of revenue; mobility revenue fell 37% YoY, pressured by FX and delayed deployments .
• Cost optimization actions reduced mobility cost of revenue 20% YoY and management emphasized automation, externalization of European ops, and a path to “nearly completely automated operations” next year .
• Non-cash impairment of assets totaled $10.39M tied to lower market cap, reduced e-moped operations, and macro conditions, depressing Q3 profitability metrics .
• Liquidity actions included a $13.9M equity line with Yorkville; cash and equivalents stood at $3.33M at quarter-end, with heightened reliance on convertible notes and equity issuance to fund operations .
• Management guided to Q4 sequential revenue improvement and full-year revenue up YoY (versus prior Q2 guide for revenue to double), implying a more conservative stance; capital and Wheels integration are key near-term stock catalysts .

What Went Well and What Went Wrong

What Went Well

• Mobility cost of revenue fell 20% YoY; total cost of revenue down 15% QoQ, reflecting operational efficiency gains and externalization of part of European operations .
• Software/AI-driven operational automation advanced, with real-time parking compliance certification and helmet selfie verification; licensing wins over larger competitors attributed to software flexibility .
• Media revenue rose 42% YoY; subscriptions gained traction via Helbiz Unlimited, partnerships broadened distribution (e.g., OneFootball, Moovit, Kinto Go) .

What Went Wrong

• Mobility revenue down 37% YoY; FX headwinds (strong USD vs EUR) and delayed vehicle deployments weighed on the top line; constant currency mobility revenue would have been ~$0.31M higher in Q3 .
• Impairment of assets of $10.39M (goodwill and intangibles) due to market cap decline and adverse macro conditions materially impacted results .
• Media’s cost structure heavy: content licensing and media cost of revenue exceeded media revenue mix contribution; management is “rethinking” the approach due to margin pressure .

Financial Results

Segment revenue breakdown (quarterly):

Margins and mix indicators:

Note: Margins can be inferred from the above line items; Q3 2022 showed negative gross profit given cost of revenue exceeded revenue .

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “We made significant progress in improving cost efficiency and margins… we trimmed our necessary costs in operation, administration, head count and marketing… starting to drive us to profitability.” (CEO) .
• “We’re on track for nearly completely automated operations by next year… advantages we have gained from automation are already resulting in lower mobility operation costs.” (COO/Tech Lead) .
• “Mobility revenue declined because of fewer trips and the euro-U.S. dollar exchange rate impact… in constant currency, mobility revenue would have been 12% higher in Q3 2022.” (CFO) .
• “Operating expenses were up sequentially due to an impairment… primarily due to the decline in our market capitalization… and the current adverse macroeconomic environment.” (CFO) .
• “We recently entered into an equity line of credit… up to $13.9 million.” (CFO) .

Q&A Highlights

• On partnerships: “WeTaxi… allows our mobility offerings to expand… OneFootball provides a new platform for fans… Deliveroo greatly expanded our user base… These impact our revenue positively while requiring less overhead.” (Exec response) .
• Tone and priorities: Management reiterated focus on profitability, automation, and Wheels synergies, with near-term expectation for sequential revenue improvement in Q4 (prepared remarks) .

Estimates Context

• Wall Street consensus (S&P Global) for Q3 2022 EPS and revenue was unavailable at the time of analysis due to data access limitations. Accordingly, no explicit beat/miss determination versus S&P Global consensus can be made for this quarter (values unavailable).

Key Takeaways for Investors

• Mobility demand recovery remains uneven; FX and deployment delays depressed Q3 revenue, but efficiency actions reduced mobility costs, positioning for improved unit economics as deployments normalize .
• Media’s cost burden continues to outweigh its revenue contribution; management plans to rethink the approach, suggesting potential de-emphasis or restructuring to improve consolidated margins .
• The $10.39M impairment highlights sensitivity to macro and capitalization; re-rating risk persists if growth/financing execution lags .
• Liquidity relies on convertibles and the $13.9M equity line; dilution and financing costs are key variables—watch subsequent draws, conversion activity, and cash burn trajectory .
• Wheels acquisition integration offers operational and revenue synergies (sit-down scooters, long-term rentals, B2B), potentially supporting near-term margin and geographic expansion if executed well .
• Near-term trading: Q4 sequential revenue up guidance is a positive catalyst; however, heavy media costs and ongoing financing dependence temper risk/reward—monitor Q4 mix, cash usage, and any margin progress .
• Medium-term thesis: If automation and externalization sustain cost reductions, and media is reconfigured to be margin accretive, the path to improved profitability narrows; execution on licenses, FX stability, and capital access remain critical .

Citations: Financials and commentary sourced from Q3 2022 10-Q –, Q3 2022 earnings call transcript –, Q2 2022 10-Q –, Q2 2022 earnings call –, Q1 2022 earnings call –, and Q3 2022 8-K SEPA/press release –.