Zoomcar's Q3 adjusted core loss improves amid cost reductions
Zoomcar listed on the NASDAQ global market platform in December last year, via the acquisition of blank check SPAC, International Acquisition Corporation (IOAC), under the symbol 'ZCAR'.
Car-sharing company on Thursday said its quarterly adjusted core loss improved as it managed to keep a lid on its operating expenses.
Zoomcar reported an adjusted EBITDA loss of $4 million in the third quarter ended December 31, compared with a loss of $5.2 million a year ago.
Its non-adjusted net income jumped to $14.4 million from a loss of $8.7 million a year earlier, primarily because of a one-time financial gain resulting from completing the process of transitioning from a private company to a publicly traded entity through a merger with a special purpose acquisition company (SPAC).
The company listed on the NASDAQ in December last year.
Zoomcar trimmed its operating expenses by 24% to $2.2 million, driven by reductions in both sales and marketing expenses, as well as technology and development costs.
However, its net revenue dropped by 18.7% to $2.4 million because fewer days were booked, leading to lower gross billings. Zoomcar said it focused more on booking higher-margin trips in the quarter, which earned it more money and helped reduce costs.
"As we look ahead to 2024, we expect a meaningful return to growth with materially improved profitability as we now have the right infrastructure in place to scale our operations efficiently," said Greg Moran, CEO and Co-founder of Zoomcar.
Zoomcar is like an Airbnb for cars where hosts connect with guests interested in renting their cars. The Bengaluru-headquartered company has operations across India, Egypt, and Indonesia.
It said its hosts earned nearly $4 million in the third quarter on its platform.
For the calendar year ended December 31, 2024, Zoomcar said it expects net revenue between $17 million and $20 million, up around 70-100% from the previous corresponding period.
It hopes to swing to profit on an adjusted EBITDA basis, expecting to earn $2 million to $4 million, by the fourth quarter of 2024.
Zoomcar's presence in India over the past decade has been quite turbulent, featuring a series of shifts and strategic manoeuvres that, unfortunately, have not successfully achieved the intended outcomes.
It started with buying a small fleet of cars and leasing them out, after which it tried convincing wealthy individuals to invest in purchasing a small fleet of cars for a neat return.
Edited by Affirunisa Kankudti