Zoomcar Reports Significant Profitability Improvement in its Second Quarter Financial 2024 Results<\/b><\/p>\n
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Bangalore, India \u2013 [14 November, 2024]<\/b> \u2013 <\/span>Zoomcar Holdings, Inc.<\/span><\/a> (Nasdaq: ZCAR) (\u201cZoomcar,\u201d or \u201cwe,\u201d or \u201cour\u201d), the leading marketplace for car sharing in India, today announced results for its second quarter ended September 30, 2024.<\/span><\/p>\n <\/p>\n Hiroshi Nishijima, CEO of Zoomcar stated,.<\/i><\/b> \u201cBy making customer experience our top priority, we\u2019ve been able to organically boost guest repeat bookings and improve host retention. This focus has allowed us to optimize costs, particularly in marketing spend, cash incentives, and discounts, driving a significant improvement in our contribution profit. With a stronger contribution margin, our primary goal is now to grow the number of bookings by bringing in more Guests and achieving more frequent repeat usage. Despite shorter average booking durations, our contribution margin remains robust, making the total number of bookings our most critical metric.\u201c<\/span><\/i><\/p>\n <\/p>\n Key Highlights:<\/b><\/p>\n <\/span><\/a><\/p>\n For more details, you can access the full quarterly report <\/span>here<\/span><\/a>.\u00a0<\/span><\/p>\n <\/p>\n About Zoomcar<\/b>:<\/span><\/p>\n Founded in 2013 and headquartered in Bengaluru, India, Zoomcar is a leading marketplace for car sharing focused in India. The Zoomcar community connects Hosts with Guests, who choose from a selection of cars for use at affordable prices, promoting sustainable, smart transportation solutions in India.<\/span><\/p>\n <\/p>\n Forward Looking Statement<\/b>:<\/span><\/p>\n <\/p>\n Certain statements contained in this press release are not historical facts and may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “plans,” “expects,” “believes,” “anticipates,” and similar words are intended to identify forward-looking statements. These forward-looking statements include, but are not limited to, statements concerning our expected revenue growth and improved profitability, and our financial forecasts. Forward-looking statements are based on our current expectations and beliefs, and involve a number of risks and uncertainties that are difficult to predict and that could cause actual results to differ materially from those stated or implied by the forward-looking statements. A description of certain of these risks, uncertainties and other matters can be found in filings we make with the U.S. Securities and Exchange Commission, all of which are available at www.sec.gov. Because forward-looking statements involve risks and uncertainties, actual results and events may differ materially from results and events currently expected by us, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect any change in its expectations with regard to these forward-looking statements or the occurrence of unanticipated events.<\/span><\/p>\n <\/p>\n Non-GAAP Financial Measure<\/b>:<\/span><\/p>\n To supplement our financial statements, which are presented on the basis of U.S. generally accepted accounting principles (GAAP), the following non-GAAP measures of financial performance are included in this release: contribution margin, and adjusted EBITDA. A reconciliation of GAAP to adjusted non-GAAP financial measures is included as an attachment to this press release. We believe these non-GAAP financial measures are useful to investors in assessing our operating performance. We use these financial measures internally to evaluate our operating performance and for planning and forecasting of future periods. We also believe it is in the best interests of investors to provide this non-GAAP information. While we believe these non-GAAP financial measures provide useful supplemental information to investors, there are limitations associated with the use of these non-GAAP financial measures. These non-GAAP financial measures may not be reported by competitors, and they may not be directly comparable to similarly titled measures of other companies due to differences in calculation methodologies. The non-GAAP financial measures are not an alternative to GAAP information and are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures. They should be used only as a supplement to GAAP information and should be considered only in conjunction with our consolidated financial statements prepared in accordance with GAAP.<\/span><\/p>\n <\/p>\n Reconciliation of GAAP to Non-GAAP Metrics<\/b><\/p>\n <\/p>\n The following is the reconciliation of adjusted EBITDA to the most comparable GAAP measure for three months and six months ending September 30, Net Loss.<\/span><\/p>\n <\/p>\n Adjusted EBITDA is a non-GAAP financial measure that represents our net income or loss adjusted for (i) provision for income taxes; (ii) other income and (expense), net; (iii) depreciation and amortization; (iv) stock-based compensation expense; (v) finance costs; and (vi) Gain on trouble debt restructuring.<\/span><\/p>\n Contribution Profit\/(Loss)<\/b><\/p>\n <\/p>\n The following is the calculation of Contribution Profit\/(Loss) to the most comparable GAAP measure for three months and six months ending September 30, Net Revenue.<\/span><\/p>\n <\/p>\n <\/p>\n We define contribution profit (loss) as our gross profit plus (a) depreciation expense included in cost of revenue, (b) stock-based compensation expense included in cost of revenue, (c) other general costs included in cost of revenue (rent, software support, insurance, travel); less (i) Host incentive payments and (ii) marketing and promotional expenses (excluding brand marketing).<\/span><\/p>\n","protected":false},"excerpt":{"rendered":" Zoomcar Reports Significant Profitability Improvement in its Second Quarter Financial 2024 Results Bangalore, India \u2013 [14 November, 2024] \u2013 Zoomcar Holdings, Inc. (Nasdaq: ZCAR) (\u201cZoomcar,\u201d or \u201cwe,\u201d or \u201cour\u201d), the leading marketplace for car sharing in India, today announced … Continue reading \n
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\n<\/span>We will have a deeper discussion in our Q2 2024 Earnings call:<\/b>
\n<\/span>We would like to invite all shareholders to our <\/span>Q2 2024 Earnings Call<\/b>, scheduled for <\/span>November 14, 2024, at 10:00 AM Eastern Time<\/b>. Please register in advance through this link – <\/span>https:\/\/us06web.zoom.us\/webinar\/register\/WN_y4xI8uNhTOqMj-fEB8oU4g#\/registration<\/b>
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\n \u00a0<\/span><\/td>\n For the Three Months Ended Sep 30,<\/b><\/td>\n For the Six Months Ended Sep 30,<\/b><\/td>\n<\/tr>\n \n 2024<\/b><\/td>\n 2023<\/b><\/td>\n 2024<\/b><\/td>\n 2023<\/b><\/td>\n<\/tr>\n \n Net Loss<\/b><\/td>\n $ (3,351,976)<\/b><\/td>\n $ (12,402,287)<\/b><\/td>\n $ (5,883,554)<\/b><\/td>\n $ (41,183,419)<\/b><\/td>\n<\/tr>\n \n Add\/ (deduct)<\/span><\/td>\n <\/td>\n \u00a0<\/span><\/td>\n \u00a0<\/span><\/td>\n \u00a0<\/span><\/td>\n<\/tr>\n \n Stock-based compensation<\/span><\/td>\n –<\/span><\/td>\n 173,693<\/span><\/td>\n –\u00a0\u00a0<\/span><\/td>\n 617,905<\/span><\/td>\n<\/tr>\n \n Depreciation and amortization<\/span><\/td>\n 101,809<\/span><\/td>\n 255,126<\/span><\/td>\n 215,136<\/span><\/td>\n 510,607<\/span><\/td>\n<\/tr>\n \n Finance costs<\/span><\/td>\n 2,160,178<\/span><\/td>\n 8,363,800<\/span><\/td>\n 2,320,963<\/span><\/td>\n 29,884,357<\/span><\/td>\n<\/tr>\n \n Finance costs to related parties<\/span><\/td>\n –\u00a0\u00a0<\/span><\/td>\n 12,915<\/span><\/td>\n –\u00a0\u00a0<\/span><\/td>\n 25,777<\/span><\/td>\n<\/tr>\n \n Other income, net<\/span><\/td>\n (28,006)<\/span><\/td>\n (271,497)<\/span><\/td>\n (1,031,781)<\/span><\/td>\n (522,716)<\/span><\/td>\n<\/tr>\n \n Other income from related parties<\/span><\/td>\n –\u00a0\u00a0<\/span><\/td>\n (1,626)<\/span><\/td>\n –\u00a0\u00a0<\/span><\/td>\n (5,676)<\/span><\/td>\n<\/tr>\n \n Gain on troubled debt restructuring<\/span><\/td>\n (352,447)<\/span><\/td>\n –\u00a0\u00a0<\/span><\/td>\n (352,447)<\/span><\/td>\n –\u00a0\u00a0<\/span><\/td>\n<\/tr>\n \n Adjusted EBITDA<\/b><\/td>\n $ (1,470,442)<\/b><\/td>\n $ (3,869,876)<\/b><\/td>\n $ (4,731,683)<\/b><\/td>\n $ (10,673,165)<\/b><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \n\n
\n \u00a0<\/span><\/td>\n For the Three Months Ended Sep 30,<\/b><\/td>\n For the Six Months Ended Sep 30,<\/b><\/td>\n<\/tr>\n \n <\/td>\n 2024<\/b><\/td>\n 2023<\/b><\/td>\n 2024<\/b><\/td>\n 2023<\/b><\/td>\n<\/tr>\n \n Net revenue<\/span><\/td>\n $ 2,246,897<\/span><\/td>\n $ 2,681,008<\/span><\/td>\n $ 4,487,882<\/span><\/td>\n $ 5,295,626<\/span><\/td>\n<\/tr>\n \n Cost of revenue<\/span><\/td>\n 1,213,422<\/span><\/td>\n 2,737,486<\/span><\/td>\n 2,725,711<\/span><\/td>\n 6,348,468<\/span><\/td>\n<\/tr>\n \n Gross Profit\/(Loss)<\/b><\/td>\n 1,033,475<\/b><\/td>\n (56,478)<\/b><\/td>\n 1,762,171<\/b><\/td>\n (1,052,842)<\/b><\/td>\n<\/tr>\n \n Add: Depreciation and amortization in COR<\/span><\/td>\n 74,306<\/span><\/td>\n 210,435<\/span><\/td>\n 149,179<\/span><\/td>\n 419,370<\/span><\/td>\n<\/tr>\n \n Add: Stock-based compensation in COR<\/span><\/td>\n –\u00a0\u00a0<\/span><\/td>\n 15,526<\/span><\/td>\n –\u00a0\u00a0<\/span><\/td>\n 83,035<\/span><\/td>\n<\/tr>\n \n Add: Overhead costs in COR\u00a0 (rent, software support, insurance, travel)<\/span><\/td>\n 145,346<\/span><\/td>\n 306,403<\/span><\/td>\n 350,321<\/span><\/td>\n 739,295<\/span><\/td>\n<\/tr>\n \n Less: Host Incentives and Marketing costs (excl. brand marketing)<\/b><\/td>\n 45,361<\/b><\/td>\n 598,578<\/b><\/td>\n 594,744<\/b><\/td>\n 1,478,093<\/b><\/td>\n<\/tr>\n \n \u00a0 Less: Host incentives<\/span><\/td>\n 30,242<\/span><\/td>\n 145,210<\/span><\/td>\n 77,864<\/span><\/td>\n 275,025<\/span><\/td>\n<\/tr>\n \n \u00a0 Less: Marketing costs (excl. brand marketing)<\/span><\/td>\n 15,119<\/span><\/td>\n 453,368<\/span><\/td>\n 516,880<\/span><\/td>\n 1,203,048<\/span><\/td>\n<\/tr>\n \n Contribution Profit \/ (Loss)<\/b><\/td>\n 1,207,766<\/b><\/td>\n (122,692)<\/b><\/td>\n 1,666,927<\/b><\/td>\n (1,289,235)<\/b><\/td>\n<\/tr>\n \n Contribution margin<\/span><\/td>\n 54%<\/span><\/td>\n -5%<\/span><\/td>\n 37%<\/span><\/td>\n -24%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n