Getaround, Inc. Reports Quarterly Results for the Period Ended September 30, 2024
Getaround, Inc. filed its quarterly report (Form 10-Q) for the period ended September 30, 2024. The company reported a net loss of $[amount] for the quarter, compared to a net loss of $[amount] for the same period last year. Revenue decreased by [percentage] to $[amount], primarily due to a decline in ride-sharing services. The company’s operating expenses increased by [percentage] to $[amount], driven by higher research and development costs and general and administrative expenses. As of September 30, 2024, Getaround had cash and cash equivalents of $[amount] and a working capital deficit of $[amount]. The company’s stockholders’ equity decreased by [percentage] to $[amount] due to the net loss and a decrease in accumulated other comprehensive income.
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 66,000 active cars across over 1,000 cities in 8 countries.
Getaround generates revenue primarily from fees charged to guests for booking trips, as well as subscriptions paid by hosts to access the company’s connected car technology. The company’s pricing system uses dynamic algorithms to optimize each transaction based on factors like location, time of day, and vehicle details. Getaround also earns revenue by subleasing parking spaces to hosts.
Recent Developments
Getaround has raised significant additional financing in recent quarters to fund its operations and growth. Key events include:
- In November 2024, the company amended its Sixth A&R Super Note to increase the aggregate principal amount to $97.8 million. This note matures in August 2026.
- In July 2024, Getaround received notice that the New York Stock Exchange had suspended trading of its common stock and initiated the delisting process. The stock is now quoted on the OTCQB Venture Market.
- The company has incurred cumulative losses and expects to continue operating at a loss for the foreseeable future. Getaround’s ability to fund operations will depend on its ability to generate cash from operations or raise additional financing, which may not be available on acceptable terms.
Financial Performance
For the three months ended September 30, 2024, Getaround reported:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenue | $22.4 million | $23.8 million | -6% |
| Service Revenue | $22.1 million | $23.4 million | -5% |
| Lease Revenue | $0.3 million | $0.4 million | -36% |
| Net Loss | $15.5 million | $27.3 million | -43% |
| Adjusted EBITDA | $9.3 million loss | $11.3 million loss | +18% |
The decrease in total revenue was primarily due to the suspension of operations in New York State and a temporary reduction in U.S. carsharing revenue following the launch of Getaround’s new TrustScore system. However, the company saw a 53% year-over-year increase in Contribution Profit to $7.3 million, driven by lower variable operating expenses.
For the nine months ended September 30, 2024, Getaround reported:
| Metric | 9M 2024 | 9M 2023 | Change |
|---|---|---|---|
| Total Revenue | $58.1 million | $53.9 million | +8% |
| Service Revenue | $57.2 million | $52.8 million | +8% |
| Lease Revenue | $0.9 million | $1.1 million | -21% |
| Net Loss | $58.5 million | $80.4 million | -27% |
| Adjusted EBITDA | $35.9 million loss | $53.5 million loss | +33% |
The increase in total revenue was driven by the addition of $8.7 million from the 2023 Business Combination, partially offset by the suspension of New York operations and the TrustScore impact. Getaround saw a 53% year-over-year increase in Contribution Profit to $15.3 million, aided by lower variable costs.
Key Metrics
Getaround tracks “Trips” as its primary key business metric, representing the number of completed bookings on the platform. Trips decreased 10% year-over-year in Q3 2024 to 243,000, and 6% year-over-year in 9M 2024 to 680,000, largely due to the suspension of operations in New York.
The company also reports several non-GAAP metrics:
- Gross Booking Value (GBV): The total dollar value of all service transactions, including pass-through fees and taxes. GBV was $65.1 million in Q3 2024, down 6% year-over-year, and $163.0 million in 9M 2024, up 5% year-over-year.
- Net Marketplace Value (NMV): The dollar value of transactions contributing to service revenue, net of host earnings, incentives, and pass-throughs. NMV was $29.8 million in Q3 2024, down 3% year-over-year, and $76.5 million in 9M 2024, up 8% year-over-year.
- Contribution Profit and Margin: Gross profit adjusted for variable operating expenses. Contribution Profit was $7.3 million (33% margin) in Q3 2024 and $15.3 million (26% margin) in 9M 2024, up 53% year-over-year.
- Adjusted EBITDA: Net loss adjusted for fair value changes, interest, taxes, depreciation/amortization, stock-based compensation, and other one-time items. Adjusted EBITDA was a $9.3 million loss in Q3 2024 and a $35.9 million loss in 9M 2024, improving 18% and 33% year-over-year, respectively.
Strengths and Weaknesses
Getaround’s key strengths include:
- Proprietary technology platform that provides a seamless, contactless carsharing experience for hosts and guests
- Scaled network of over 2 million guests and 66,000 active cars across 8 countries
- Dynamic pricing algorithms that optimize revenue per transaction
- Diversified revenue streams from carsharing fees, subscriptions, and parking
Weaknesses and challenges include:
- Significant historical and ongoing losses, raising substantial doubt about the company’s ability to continue as a going concern
- Reliance on additional financing to fund operations and growth
- Suspension of operations in key market of New York State
- Temporary impact on revenue from launch of new TrustScore system
Outlook
Getaround faces an uncertain future as it continues to incur significant losses and requires additional capital to fund its operations. The company’s ability to achieve profitability will depend on its success in growing its user base and transaction volume, while controlling costs. Key factors to monitor include:
- Getaround’s ability to raise sufficient financing to sustain operations
- Impact of the TrustScore system on revenue and trip volume over time
- Expansion into new geographic markets and scaling of the platform
- Effectiveness of cost control measures to improve contribution margin and Adjusted EBITDA
Overall, Getaround has built a technology-driven carsharing platform with global reach, but must overcome significant financial challenges to establish a sustainable business model. The company’s future will depend on its execution in driving user growth, optimizing pricing and operations, and securing the necessary capital to fund its ambitious plans.
