Getaround, Inc. Releases Q2 2024 10-Q Report Highlighting Financial and Operational Performance
Getaround, Inc., a leading carsharing marketplace, has released its Form 10-Q report for the second quarter of 2024. The report provides a detailed overview of the company's financial performance and operational highlights, reflecting its strategic initiatives and market dynamics.
Financial Highlights
- Total Revenues: $18.584 million, a slight decrease from the previous year, primarily driven by a decrease in lease revenue offset by an increase in service revenue.
- Gross Profit from Service Revenue: $16.154 million, reflecting an increase due to a decrease in cost of service revenue and an increase in service revenue.
- Loss from Operations: $(22.071) million, an improvement from the previous year due to reduced sales and marketing expenses and operations and support costs.
- Net Loss: $(12.025) million, a significant improvement from the previous year, driven by a favorable change in convertible promissory note and note payable fair value adjustment.
- Comprehensive Loss: $(10.818) million, reflecting improvements in operational efficiency and cost management strategies.
Business Highlights
Revenue Segments
Getaround generates revenue primarily from its carsharing marketplace, which includes service revenue from trip reservations and other fees collected from guests. The company also earns connect subscription revenue from hosts for IoT hardware devices installed in cars. Additionally, parking revenue is generated by subleasing parking spaces to hosts on a monthly basis. Service revenue represents the majority of total revenue. The company’s pricing system dynamically adjusts trip prices based on various factors such as trip length, location, and vehicle details, allowing hosts to set minimum daily rates and trip durations while providing personalized pricing suggestions. This dynamic pricing strategy aims to optimize transaction value and increase revenue yield by incentivizing longer trips and adjusting fees based on risk factors associated with each trip. The company’s revenue model is heavily reliant on Powerhosts, defined as hosts with three or more active cars in the marketplace, who contribute significantly to the overall revenue.
Geographical Performance
Getaround operates in more than 1,000 cities across eight countries, including the United States and Europe. The company recently suspended operations in New York State due to high insurance costs under the New York Peer-to-Peer Carsharing Act, which is expected to impact annualized service revenue by $5 million to $7 million but improve annualized trip contribution profit by an estimated $2 million. Despite this, the company has seen an increase in service revenue driven by the acquisition of HyreCar Inc. and improvements in revenue management strategies. The company’s operations are supported by a broad network of loyal hosts and guests, with approximately 2.2 million unique guests and 72,000 active cars on the platform as of June 30, 2024.
Sales Units
For the three months ended June 30, 2024, Getaround facilitated 235 thousand trips, a decrease of 22 thousand trips or 9% from the same period in the prior year. This decrease is largely attributed to the suspension of operations in New York State. For the six months ended June 30, 2024, the company facilitated 437 thousand trips, a decrease of 16 thousand trips or 4% from the same period in the prior year.
Future Outlook
Getaround anticipates continued operating losses and negative cash flows as it focuses on developing and promoting its platform while expanding its user base globally. The company’s future capital requirements will depend on various factors, including business growth needs and unforeseen circumstances. If current cash resources are insufficient to achieve positive cash flow, Getaround may seek additional equity or debt financing. The company’s ability to continue as a going concern is contingent upon generating sufficient cash from operating activities and securing additional capital if needed.