Getaround, Inc. Reports Quarterly Results for the Period Ended June 30, 2024
Getaround, Inc. filed its quarterly report (Form 10-Q) for the period ended June 30, 2024. The company reported a net loss of $X million, with total revenue of $Y million and total operating expenses of $Z million. As of June 30, 2024, the company had cash and cash equivalents of $X million and a working capital deficit of $Y million. The company’s financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) and include the consolidated financial statements of Getaround, Inc. and its subsidiaries. The report also includes management’s discussion and analysis of the company’s financial condition and results of operations.
Overview
Getaround is a global carsharing marketplace that connects car owners (hosts) with people who need to rent a car (guests). The company’s proprietary technology platform makes it easy for hosts to share their cars and for guests to book and access vehicles on-demand. Since launching in 2011, Getaround has grown to support approximately 2.2 million unique guests and 72,000 active cars across 1,000 cities in 8 countries.
Getaround generates revenue primarily from fees charged to guests for booking cars, as well as subscriptions paid by hosts to access the company’s connected car technology. The company’s dynamic pricing model aims to optimize each transaction by balancing supply and demand. Getaround also earns revenue from leasing parking spaces to hosts.
Recent Developments
Getaround has undergone several significant changes in 2024:
The company suspended its carsharing operations in New York state due to high insurance costs, which is expected to reduce annual service revenue by $5-7 million but improve trip contribution profit by $2 million.
Getaround appointed a new CEO, Eduardo Iniguez, who succeeded co-founder Sam Zaid. Iniguez’s compensation package includes a large equity award.
The company’s Chief Financial Officer, Tom Alderman, departed and was replaced by the Chief Accounting Officer, Patricia Huerta, as interim CFO.
Getaround received notice that the New York Stock Exchange suspended trading of its stock and initiated the delisting process due to the company not meeting the minimum market capitalization requirement.
Getaround amended and restated its Mudrick Super Priority Note multiple times, increasing the principal amount to $83.7 million as of July 2024. This senior secured debt is used to provide additional capital to the company.
Getaround settled a civil lawsuit against Broadspire Services, Inc. for $15 million, resulting in a $10.3 million net payment to the company.
Financial Performance
For the three months ended June 30, 2024, Getaround reported:
| Metric | Q2 2024 | Q2 2023 | Change |
|---|---|---|---|
| Total Revenue | $18.6 million | $18.6 million | 0% |
| Service Revenue | $18.3 million | $18.2 million | +0.5% |
| Lease Revenue | $0.3 million | $0.4 million | -30% |
| Net Loss | $12.0 million | $30.3 million | -60% |
| Adjusted EBITDA | $11.4 million loss | $22.4 million loss | +49% |
The key drivers of Getaround’s financial performance in Q2 2024 were:
- Service revenue increased slightly due to the acquisition of HyreCar’s assets, offset by lower revenue from the US carsharing business and the suspension of operations in New York.
- Lease revenue declined due to the New York suspension.
- Operating expenses decreased across sales & marketing, operations, and general & administrative, leading to a 49% improvement in Adjusted EBITDA loss.
- The company recognized a $11.4 million gain from the fair value adjustment of its convertible debt and notes payable.
For the six months ended June 30, 2024, Getaround reported:
| Metric | H1 2024 | H1 2023 | Change |
|---|---|---|---|
| Total Revenue | $35.7 million | $30.1 million | +19% |
| Service Revenue | $35.1 million | $29.4 million | +19% |
| Lease Revenue | $0.6 million | $0.7 million | -13% |
| Net Loss | $43.0 million | $53.1 million | -19% |
| Adjusted EBITDA | $26.7 million loss | $42.2 million loss | +37% |
The key drivers of Getaround’s financial performance in H1 2024 were:
- Service revenue increased 19% due to the HyreCar acquisition, partially offset by lower US carsharing revenue.
- Lease revenue declined due to the New York suspension.
- Operating expenses decreased across sales & marketing and general & administrative, leading to a 37% improvement in Adjusted EBITDA loss.
- The company recognized a $6.0 million loss from the fair value adjustment of its convertible debt and notes payable.
Key Business Metrics
Getaround tracks two key metrics to measure the scale and performance of its marketplace:
Gross Booking Value (GBV): The total dollar value of all service transactions on the platform, charged to both guests and hosts, net of cancellations. GBV was $53.0 million in Q2 2024, down 1% from Q2 2023, due to the impact of the Getaround TrustScore launch and the New York suspension, partially offset by the HyreCar acquisition.
Trips: The number of completed, non-cancelled bookings. Trips were 235,000 in Q2 2024, down 9% from Q2 2023, primarily due to the New York suspension.
Non-GAAP Metrics
Getaround uses several non-GAAP financial measures to supplement its GAAP reporting:
Net Marketplace Value (NMV): The dollar value of all transactions on the platform contributing to service revenue, net of host earnings, incentives, and pass-throughs. NMV was $24.8 million in Q2 2024, up 2% from Q2 2023.
Contribution Profit and Margin: Contribution profit, defined as net revenue less variable operating expenses, was $5.6 million in Q2 2024, up 93% from Q2 2023. Contribution margin was 30% in Q2 2024, up from 15% in Q2 2023.
Trip Contribution Profit and Margin: Trip contribution profit, which excludes fixed costs, was $9.7 million in Q2 2024, up 23% from Q2 2023. Trip contribution margin was 53% in Q2 2024, up from 43% in Q2 2023.
Adjusted EBITDA: A measure of operating performance that excludes the impact of certain non-cash and non-recurring items. Adjusted EBITDA was a loss of $11.4 million in Q2 2024, an improvement of 49% from a $22.4 million loss in Q2 2023.
Strengths and Weaknesses
Getaround’s key strengths include:
- Proprietary technology platform that enables a seamless, digital carsharing experience for hosts and guests
- Scaled network of 2.2 million guests and 72,000 active cars across 8 countries
- Dynamic pricing capabilities that optimize revenue per transaction
- Diversified revenue streams from carsharing, subscriptions, and parking
Getaround’s key weaknesses include:
- Reliance on a small number of “Powerhosts” who account for a significant majority of revenue
- Suspension of operations in high-cost markets like New York due to regulatory challenges
- Ongoing losses and negative cash flows, requiring additional financing to fund operations
- Delisting from the NYSE due to failure to meet minimum market capitalization requirements
Outlook and Conclusion
Getaround faces an uncertain future as it continues to grapple with profitability challenges and regulatory hurdles in key markets. The company’s ability to secure additional financing will be critical to funding its operations and growth plans.
While Getaround has demonstrated progress in improving its financial performance through cost reductions, the suspension of operations in New York and the potential delisting from the NYSE raise concerns about the company’s long-term viability. Getaround will need to find ways to drive sustainable revenue growth, improve unit economics, and navigate the regulatory landscape if it hopes to achieve profitability and continue scaling its global carsharing platform.
