Q2 2024 Getaround Inc Earnings Call

August 12, 2024

Good afternoon, and welcome to get around second quarter 'twenty 'twenty four earnings conference call. Today's webcast includes management's prepared remarks, along with a host Q&A session. As a reminder, this event is being recorded.

Operator: Good afternoon, and welcome to Getaround's second quarter 2024 earnings conference call. Today's webcast includes management's prepared remarks along with a hosted Q&A session. As a reminder, this event is being recorded. I would now like to turn the conference over to Barry Hutton, Managing Director of the Blue Shirt Group. Please go ahead.

Operator: Good afternoon, and welcome to Getaround's 2nd quarter 2024 earnings conference call. Today's webcast includes management's prepared remarks, along with a hosted Q&A session. As a reminder, this event is being recorded.

Barry Hutton: I would now like to turn the conference over to Barry Hutton, Managing Director of the Blue Shirt Group.

I would now like to turn the conference over to Barry Hutton managing director of the Blue shirt group. Please go ahead.

Barry Hutton: Thank you, Operator, and thank you, everyone, for joining us today. Hosting the call with me are Getaround's Chief Executive Officer, Eduardo, and Getaround's Chief Accounting Officer and Interim Chief Financial Officer, Patricia. On this call, management will be making projections or other forward-looking statements within the meaning of federal securities laws, which are based on our current expectations and assumptions and are subject to risk and uncertainty. Forward-looking statements generally relate to future events or our future financial and operating performance.

Barry Hutton: Thank you, operator, and thank you, everyone, for joining us today. Hosting the call with me are Getaround's Chief Executive Officer, Eduardo, and Getaround's Chief Accounting Officer and Interim Chief Financial Officer, Patricia.

Speaker Change: Thank you operator, and thank you everyone for joining us today hosting the call with me are get around Chief Executive Officer, Eduardo and get around Chief Accounting Officer, and interim Chief Financial Officer Patricia.

Barry Hutton: On this call, management will be making protections for other forward-looking statements within the needing of federal securities laws, which are based on our current expectations and assumptions and are subject to risk and uncertainty. Forward-looking statements generally relate to future events for our future financial and operating performance. Our assumptions, expectations, and beliefs regarding these matters may not materialize, and our actual results in future periods are subject to risks and uncertainties that could cause those actual results to differ materially from those projected. These risks, which include those set forth in the press release that we issued earlier today, as well as those more fully described in our filings with the Securities and Exchange Commission.

Barry Hutton: Our assumptions, expectations, and beliefs regarding these matters may not materialize, and our actual results in future periods are subject to risk and uncertainties that could cause those actual results to differ materially from those projected. These risks, which include those set forth in the press release that we issued earlier today, as well as those more fully described in our filings with the Securities and Exchange Commission. The forward-looking statements in this announcement are based on information available to us as of the date hereof, and we disclaim any obligation to update any forward-looking statements except as required by law.

Speaker Change: On this call management will be making projections or other forward looking statements within the meaning of federal securities laws, which are based on our current expectations and assumptions and are subject to risks and uncertainty.

Speaker Change: Forward looking statements generally relate to future events or our future financial and operating performance.

Speaker Change: Our assumptions expectations and beliefs regarding these matters may not materialize and our actual results in future periods are subject to risks and uncertainties that could cause those actual results to differ materially from those projects.

Speaker Change: These risks which include those set forth in the press release that we issued earlier today as well as those more fully described in our filings with the securities and exchange.

Barry Hutton: These risks, which include those set forth in the press release that we issued earlier today, as well as those more fully described in our filings with the Securities and Exchange Commission. The forward-looking statements in this announcement are based on information available to us as of the date hereof, and we disclaim any obligation to update any forward-looking statements except as required by law. Please note that, other than revenue, or as otherwise specifically stated, the financial measures to be discussed on this call will be on a non-GAAP basis. The non-GAAP financial measures are not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP.

Speaker Change: The forward looking statements in this announcement are based on information available to us as of the date hereof, and we disclaim any obligation to update any forward looking statements, except as required by law.

Barry Hutton: The forward-looking statements in this announcement are based on information available to us as of the date hereup, and we've explained any obligation to update any forward-looking statements, except as required by law.

Barry Hutton: Please note that, other than revenue, or as otherwise specifically stated, the financial measures to be discussed on this call will be on a non-GAAP basis. The non-GAAP financial measures are not intended to be considered in isolation, or as a substitute for results prepared in accordance with GAAP. The discussion of why we present non-GAAP financial measures and a reconciliation of the non-GAAP financial measures discussed in this call to the most directly comparable GAAP financial measures are included in our earnings press release that is available on our website.

Barry Hutton: Please note that, other than revenue or as otherwise specifically stated, the financial measures to be discussed on this call will be on a non-GAAP basis. The non-GAAP financial measures are not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A discussion of why we present non-GAAP financial measures and a reconciliation of the non-GAAP financial measures discussed in this call to the most directly comparable GAAP financial measures are included in our earnings press release that is available on our website. With that, I will turn the call over to Eduardo.

Speaker Change: Please note that other than revenue or as otherwise specifically stated the financial measures to be discussed on this call will be on a non-GAAP basis.

Speaker Change: The non-GAAP financial measures are not in that should be considered in isolation or as a substitute for results prepared in accordance with GAAP.

Barry Hutton: A discussion of why we present non-GAAP financial measures and a reconciliation of the non-GAAP financial measures discussed in this call to the most directly comparable GAAP financial measures are included in our earnings press release that is available on our website. With that, I will turn the call over to Eduardo. Thank you, Barry, and good afternoon everyone. As you know, I rejoined Getaround as CEO in late February. Since then, I have been working with our team on multiple initiatives to lay the foundation for growth and profitability.

Speaker Change: A discussion of why we present non-GAAP financial measures and a reconciliation of the non-GAAP financial measures discussed in this call.

Speaker Change: Most directly comparable GAAP unusual measures are included in our earnings press release that is available on our west.

Eduardo Iniguez: With that, let me turn the call over to Eduardo. Thank you, Barry, and good afternoon, everyone. As you know, I rejoined Getaround at CEO in late February. Since then, I have been working with our team on multiple initiatives to lay the foundation for growth and profitability. I believe Get Around has several advantages that uniquely position us to continue improving our better position within the car sharing space. These include our proprietary Connect Technology, which enables fully remote management of bookings; our growing global presence that allows customers to book in the US and in Europe; and our incredibly loyal and talented team that continues to focus on executing our mission.

With that let me turn the call over to Eduardo.

Eduardo: Thank you, Barry, and good afternoon, everyone. As you know, I rejoined Getaround as CEO in late February. Since then, I have been working with our team on multiple initiatives to lay the foundation for growth and profitability. I believe Getaround has several advantages that uniquely position us to continue improving our competitive position within the car sharing space. These include our proprietary Connect technology, which enables fully remote management of bookings, our growing global presence that allows customers to book in the U.S. and Europe, and our incredibly loyal and talented team that continues to focus on executing our mission. To date, we have completed the following.

Eduardo: Thank you Barry and good afternoon, everyone.

Eduardo: As you know I rejoined get around as CEO in late February.

Eduardo: Since then I've been working with our team on multiple initiatives to lay the foundation for growth and profitability.

Eduardo: I believe get around February advantages that uniquely position us to continue improving our competitive position within the car sharing space.

Barry Hutton: I believe Getaround has several advantages that uniquely position us to continue improving our competitive position within the car sharing space. These include our proprietary Connect technology, which enables fully remote management of bookings, our growing global presence that allows customers to book in the U.S. and Europe, and our incredibly loyal and talented team that continues to focus on executing our mission.

Eduardo: These include our proprietary connect technology, which enables fully remote management of bookings are growing global presence that allows customers to book in the U S and in Europe.

Eduardo: Our incredibly loyal and talented team that continues to focus on executing our mission.

Eduardo Iniguez: To date, we have completed the following. Revealing and streamlining our operations across every function to lower our cost structure. Focus in heavily on improving margins, which include making the difficult decision to suspend operations in markets where profitability is challenging due to regulatory requirements such as New York. And enhancing our governance and leadership team by appointing industry experts to need board member seats and senior executive positions, and obtaining a commitment of $50 million in additional financing, with $40 million of this already secured to execute our business plan. There are other initiatives in flight, including pursuing ISIL certification as part of a renewed focus on strategic partnerships with OEM automakers and their connected cars.

Eduardo: To date, we have completed the following.

Eduardo: To date, we have completed the following. Reviewing and streamlining our operations across every function to lower our cost structure. Focusing heavily on improving margins, which includes making the difficult decision to suspend operations in markets where profitability is challenging due to regulatory requirements, such as New York. Enhancing our governance and leadership team by appointing industry experts to new board member seats and senior executive positions, and obtaining a commitment of $50 million in additional financing, with $40 million of this already secured, to execute our business plan. There are other initiatives in flight, including

Eduardo: Reviewing and streamlining our operations across every function to lower our cost structure and focus heavily on improving margins, which includes making the difficult decision to suspend operations in markets where profitability is challenging due to regulatory requirements, such as New York. Enhancing our governance and leadership team by appointing industry experts to new board member seats and senior executive positions, and obtaining a commitment of $50 million in additional financing, with $40 million of this already secured, to execute our business plan. There are other initiatives in flight, including

Eduardo: Reviewing and streamlining our operations across every function to lower our cost structure.

Eduardo: Focusing heavily on improving margins, which include making the difficult decision to suspend operations in markets, where profitability is challenging due to regulatory requirements such as New York.

Enhancing our governance and leadership team by appointing an industry experts two new board members and senior executive positions and.

Eduardo: In obtaining a commitment of $50 million and additional financing with $40 million of this already secured to execute our business plan.

Speaker Change: There are other than as citizens flight, including.

Eduardo: Pursuing ISO certification as part of a renewed focus on strategic partnerships with OEM automakers and their connected cars. Aggressive expansion of our gig business, including both our hire car by Getaround and drive with Uber operations. New ways to get into a car in addition to our seamless connect experience, including delivery to a driver's location or point of interest. We will iterate on our AI-based trust score model to better assess and price risk

Speaker Change: So I full certification as part of a renewed focus on strategic partnerships with OEM automakers and their connected cars.

Eduardo Iniguez: A grant of expansion of our gig business, including both our higher part by getting around and drive with Uber operations. New ways to get into a car in addition to our seamless connect experience, including delivery to a driver's location or point of interest, and iterate on our AI-based trust core model to better assess and price risk.

Speaker Change: Aggressive expansion of our business, including both our higher part by get around and dry wood operations.

Speaker Change: New ways to get into a car in addition to our seamless connected experience including delivery drivers.

Speaker Change: Drivers location or point of interest and iterate on our AI based trustcorp model better assess and price risk.

Eduardo Iniguez: I am pleased to report that these efforts are beginning to translate into financial performance, particularly with respect to margin improvement. On a year-over-year basis, our Q2 trip contribution margins improved from 43% to 53%. This reflects a new growth of focus on controlling our trip to forecast, including claims and customer support expenses. We have also completed extensive restructuring of people, teams, processes, and systems, which have been our expected to continue to improve our bottom line. As a result, second quarter year over year adjusted it at a loss improved 49% to $11.4 million. Total net revenue was consistent with the same period in 2023 at $18.6 million, while gross booking value fell by 1% to $53 million.

Speaker Change: I am pleased to report that these efforts are beginning to translate into financial performance, particularly with respect to margin improvement.

Eduardo: I am pleased to report that these efforts are beginning to translate into financial performance, particularly with respect to margin improvement. On a year-over-year basis, our Q2 trip contribution margins improved from 43% to 53%. This reflects a new aggressive focus on controlling our trip support costs, including planes and customer support expenses. We have also completed extensive restructuring of people, teams, processes, and systems, which have and are expected to continue to improve our bottom line.

Speaker Change: On a year over year basis, our Q2 trip contribution margin improved from 43% 53%.

Speaker Change: This reflects the new aggressive focus on controlling our trip support costs, including claims.

Speaker Change: Support expenses.

Speaker Change: We have also completed extensive restructuring of people teams processes and systems, which have and are expected to continue to improve our bottom line.

Eduardo: As a result, the second quarter year-over-year adjusted EBITDA loss improved 49% to $11.4 million. Total net revenue was consistent with the same period in 2023 at $18.6 million, while gross booking value fell by 1% to $53 million. It is important to note that we achieved similar year-over-year total revenues in the second quarter despite facing several headwinds. These include suspending all operations in New York, one of our largest markets, as well as legacy challenges from 2023 that impacted supply operations and acquisitions and reduced global marketing investment that impacted demand.

Speaker Change: As a result second quarter year over year, adjusted EBITDA loss improved 49% to $11 $4 million.

Speaker Change: Total net revenue was consistent with the same period in 2023 at $18 $6 million, while gross booking value fell by 1%.

Eduardo: Total net revenue was consistent with the same period in 2023 at $18.6 million, while gross booking value fell by 1% to $53 million. It is important to note that we achieved similar year-over-year total revenues in the second quarter despite facing several headwinds. These include suspending all operations in New York, one of our largest markets, as well as legacy challenges from 2023 that impacted supply operations and acquisitions and reduced global marketing investment that impacted demand.

Speaker Change: $3 million.

Eduardo Iniguez: It is important to note that we achieve similar year-to-year total revenues in the second quarter despite facing several headwinds. These include suspending all operations in New York, one of our largest markets, as well as legacy challenges from 2023 that impact the supply operations and acquisitions and reduce global marketing investment that impact of demand. Revenue benefited from the acquisition of higher-car assets completed in May 2023, and we continue to invest in our gig operations, which makes Getaround now the country's largest peer-to-peer car sharing marketplace for gig drivers. In Q2, synergies from the higher-car acquisition expanded our drive-with-through group program, integrated skilled operational leadership to other business areas, and provided insight into managing a healthy margin business while focusing on high vehicle utilization, longer duration rentals, and high velocity product development.

Speaker Change: It is important to note that we achieved similar year over year total revenues in the second quarter, despite facing several headwinds.

Speaker Change: These include suspending all operations in New York, one of our largest markets.

Speaker Change: As well as legacy challenges from 2023 that impacted supply operations and acquisitions and reduced global marketing investment that impacted demand.

Speaker Change: Revenue benefited from the acquisition of higher par assets completed in May 2023, and we continue to invest in our gig operations, which makes get around now the country's largest peer to peer car sharing marketplace for gig drivers.

Eduardo: Revenue benefited from the acquisition of higher-car assets completed in May 2023, and we continue to invest in our gig operations, which makes Getaround now the country's largest peer-to-peer car sharing marketplace for gig drivers. In Q2, synergies from the Higher Car Acquisition expanded our Drive with Uber program, integrated skilled operational leadership into other business areas, and provided insights into managing a healthy margin business while focusing on high vehicle utilization, longer duration rentals, and high-velocity product development.

Speaker Change: In Q2 synergies from the higher core acquisition expanded our drive program.

Speaker Change: Skilled operational leadership to other business areas and providing insights into managing a healthy margin business.

Speaker Change: Focusing on high vehicle utilization longer duration rentals and high velocity product development.

Eduardo Iniguez: Our gig and global technology platform updates completed in the first quarter have been encouraging. with the launch of new features such as Key Exchange, which allows owners and drivers to connect in person, providing owners more agency and drivers with more choice in order to improve liquidity, and anticipate our 2025 global platform implementation across all business operations to further drive significant top-light growth.

Speaker Change: Our gig in global technology platform updates completed in the first quarter have been encouraging.

Eduardo: Our gig and global technology platform updates completed in the first quarter have been encouraging, with the launch of new features such as key exchange, which allows owners and drivers to connect in person, providing owners with more agency and drivers with more choice in order to improve liquidity. I anticipate our 2025 global platform implementation across all business operations to further drive significant top-line growth. During the first half of 2024, we implemented an opportunity to increase efficiency and right-size fixed costs.

Speaker Change: With the launch of new features such as key exchange, which allows owners and drivers to connect the person providing owners more agency and drivers with more choice in order to improve liquidity.

Speaker Change: I anticipate our 2025 global platform implementation across all business operations to further drive significant top line growth.

Eduardo Iniguez: During the first half of 2024, we executed on opportunity to increase efficiency and right size fixed costs. For the remainder of 2024, the team is laser focused on maintaining our positive momentum on improving margins and growing in markets and segments with profitable unit economics.

Speaker Change: During the first half of 2024, we executed an opportunity to increase efficiency and rightsize fixed costs.

Eduardo: During the first half of 2024, we executed an opportunity to increase efficiency and right-size fixed costs. For the remainder of 2024, the team is laser-focused on maintaining our positive momentum on improving margins and growing in markets and segments with profitable unit economics. Now, I'll turn it over to Patricia Huerta, our Chief Accounting Officer and Interim Chief Financial Officer, to review our financial results. Thank you, Eduardo, and good afternoon.

Eduardo: For the remainder of 2024, the team is laser-focused on maintaining our positive momentum on improving margins and growing in markets and segments with profitable unit economics. Now, I'll turn it over to Patricia Huerta, our Chief Accounting Officer and Interim Chief Financial Officer, to review our financial results.

Speaker Change: For the remainder of 2024 the team is laser focused on maintaining our positive momentum on improving margins and growing end markets and segments, but profitable unit economics.

Patricia: Now I'll turn it over to Patricia whereby our Chief accounting Officer, and interim Chief Financial Officer to review our financial results.

Patricia Huerta: Now I'll turn it over to Patricia Huerta, our Chief Accounting Officer and Interim Chief Financial Officer, to review our financial results. Thank you, Eduardo, and good afternoon. I said, Eduardo, mention we've seen revenue consistent with the same period year over year, with an uptick in profitability, signaling positive momentum from our ongoing efforts to enhance performance. Upline revenue was flat relative to Q2 2023 at $18.6 million, while gross margin from service revenue, continuous upward trends reaching 88% in Q2 2024. Trips for the second quarter were 235,000, down from 257,000 in Q2 2023. The reduction in trips is largely attributed to the suspension of operations in New York state.

Thank you Dino and good afternoon.

Patricia Huerta: Thank you, Eduardo, and good afternoon. As Eduardo mentioned, we've seen revenue consistent with the same period year over year with an uptick in profitability, signaling positive momentum from our ongoing efforts to enhance performance. Offline revenue was flat relative to Q2 2023 at $18.6 million, while gross margin from service revenue continued its upward trend, reaching 88% in Q2 2024. Trips for the second quarter were $235,000, down from $257,000 in Q2 2023. The reduction in trips is largely attributed to the suspension of operations in New York State.

Patricia Huerta: As Eduardo mentioned, we've seen revenue consistent with the same period year over year with an uptick in profitability, signaling positive momentum from our ongoing efforts to enhance performance. Upline revenue was flat relative to Q2 2023 at $18.6 million, while gross margin from service revenue continued its upward trend, reaching 88% in Q2 2024. Trips for the second quarter were $235,000, down from $257,000 in Q2 2023.

Patricia: Actually I wanted to mention we've seen revenue consistent with the same period year over year with an uptick in profitability take not only positive momentum from our ongoing efforts to enhance performance.

Patricia: Underlying revenue was flat relative to Q2 2023 at $18 $6 million, while gross margin from service revenue continuing upward trend, reaching 88% in Q2 2024.

Patricia: For the second quarter were 235000 down from 257000 in Q2 2023.

Patricia Huerta: The reduction in trips is largely attributed to the suspension of operations in New York State. However, year over year, net revenue was consistent with Q2 2023, despite headwinds from exiting the New York market effective April 1st, 2024, and our exit from certain other unprofitable geographic markets. That impact was partially offset by the revenue contributed by our acquisition of higher-car assets in May 2023. On the cost side, we have improved gross margins from service revenue to 88% in Q2 of 2024, an improvement of 300 basis points year over year.

Patricia: The reduction in trip is largely attributed to the suspension of operations in New York State.

Patricia Huerta: Year over year, net revenue was consistent with Q2 2023, despite headwinds from exiting the New York market effective April 1, 2024, in our exit from certain other unprofitable geographic markets. That impact was partially offset by the revenue contributed by our acquisition of higher car assets in May 2023. On the cost side, we have improved gross margins from service revenue to 88% in Q2 of 2024, an improvement of 300 basis points year over year. Trip contribution profit was $9.7 million, up 23% year over year, driven by reductions in support costs. This improvement in our unit economic reflects the meaningful impact of many operational and cost actions we've taken this year, and we believe there's further room for margin improvement while sustaining healthy top line momentum.

Patricia: Year over year net revenue was consistent with Q2 2023.

Patricia Huerta: Year over year, net revenue was consistent with Q2 2023, despite headwinds from exiting the New York market effective April 1st, 2024, and our exit from certain other unprofitable geographic markets. That impact was partially offset by the revenue contributed by our acquisition of hire car assets in May 2023. On the cost side, we have improved gross margins from service revenue to 88% in Q2 of 2024, an improvement of 300 basis points year over year.

Patricia: By headwind from exiting the New York market effective April one 2024, and our exit from certain other unprofitable geographic market.

Patricia: That impact was partially offset by the revenue contributed by our acquisition of higher car asset in May 2023.

Patricia: On the cost side, we have improved gross margin from service revenues to 88% in Q2 'twenty 'twenty four.

Patricia: An improvement of 300 basis points year over year.

Patricia: Great contribution profit was $9 $7 million up 23% year over year, driven by reductions and support costs.

Patricia Huerta: Strip contribution profit was $9.7 million, up 23% year-over-year, driven by reductions in support costs. This improvement in our unit economics reflects the meaningful impact of many operational and cost actions we've taken this year, and we believe there's further room for margin improvement while sustaining healthy top-line momentum. Operating expenses totaled $40.7 million in the second quarter, a decrease of $6.6 million compared to Q2 of last year due to reducing and optimizing marketing spend, operations, support expenses, as well as general and administrative costs.

Patricia Huerta: Strip contribution profit was $9.7 million, up 23% year-over-year, driven by reductions in support costs. This improvement in our unit economics reflects the meaningful impact of many operational and cost actions we've taken this year, and we believe there's further room for margin improvement while sustaining healthy top-line momentum. Operating expenses totaled $40.7 million in the second quarter, a decrease of $6.6 million compared to Q2 of last year, due to reducing and optimizing marketing spend, operations, support expenses, as well as general and administrative costs. Our adjusted EBITDA ended the quarter at $11.4 million loss, favorable to the $22.4 million loss during the same period last year, mostly tied to optimizing our marketing, operations, and support expenses.

Patricia: This improvement in our unit economic reflects the meaningful impact of many operational and cost actions. We've taken this year and we believe there's further room for margin improvement, while sustaining healthy top line momentum.

Patricia Huerta: Operating expenses total $40.7 million in the second quarter. A decrease of $6.6 million compared to Q2 of last year. due to reducing and optimizing marketing spend operations, support expenses, as well as general and administrative costs. Our adjusted EBITDA ended the quarter at $11.4 million dollar loss, favorable to the $22.4 million dollar loss during the same period last year, mostly tied to optimizing our marketing operations and support expenses. Our cash position was $30.9 million dollars at the end of Q2 2024, and we are in the process of improving that position. Finally, we have used the existing moderate capital debt facility to add $20 million of cash in July 2024.

Patricia: Operating expenses totaled $47 million in the second quarter.

Patricia: Decrease of $6 $6 million compared to Q2 of last year.

Patricia: To reducing and optimizing marketing spend operation support expenses as well as general and administrative costs.

Patricia Huerta: Our adjusted EBITDA ended the quarter at $11.4 million in a loss, favorable to the $22.4 million loss during the same period last year, mostly tied to optimizing our marketing, operations, and support expenses. Our cash position was $30.9 million at the end of Q2 2024, and we are in the process of improving that position. Finally, we have used the existing Madrid Capital Debt Facility to add $20 million of cash in July 2024. As Eduardo outlined, we're taking significant steps to reset our company's leadership, business direction, and operations.

Patricia: Our adjusted EBIT that ended the quarter at $11 4 million dollar loss favorable to the $22 4 million dollar loss during the same period last year.

Patricia: Mostly tied to optimizing our marketing operations and support expenses.

Patricia Huerta: Our cash position was $30.9 million at the end of Q2 2024, and we are in the process of improving that position. Finally, we used the existing Madrid Capital Debt Facility to add $20 million of cash in July 2024. As Eduardo outlined, we're taking significant steps to reset our company's leadership, business direction, and operations. These changes are now in place, and the benefits are beginning to be reflected in our financial results. As our efforts continue, we look forward to providing ongoing business updates. At this time, I'll return the call to Barry Hutton to host our Q&A session. Right. Thank you, Eduardo. Thank you, Patricia.

Patricia: Our cash position was $39 million at the end of Q2 2024, and we are in the process of improving that position.

Patricia: Finally, we have used the existing mudrick capital debt facility to add $20 million of cash in July 2024.

Patricia Huerta: I said, Eduardo outlined with taking significant steps to reset our company leadership, business direction, and operations. These changes are now in place, and the benefits are beginning to be reflected in our financial results.

Speaker Change: I said do outdoor outlined we've taken significant steps to reset our company's leadership business direction and operation.

Speaker Change: These changes are now in place and the benefits are beginning to be reflected in our financial results.

Patricia Huerta: These changes are now in place, and the benefits are beginning to be reflected in our financial results. As our efforts continue, we look forward to providing ongoing business updates. At this time, I'll return the call to Barry Hutton to host our Q&A session.

Patricia Huerta: As our efforts continue, we look forward to providing ongoing business updates.

Speaker Change: As our efforts continue we look forward to providing ongoing business upbeat.

Barry Hutton: At this time, I'll return the call to Barry Hutton to host our Q&A session. Great. Thank you, Eduardo. Thank you, Patricia. We've received a number of questions from investors over the course of the quarter, especially in the last day or two. As we've filtered those questions, we've recognized that many of the questions are similar and really concentrate around a few key topics, and so we wanted management to take a few moments to address those primary topics right now, publicly, for the entire audience.

Speaker Change: At this time I'll return the call to Barry Hutton to host a Q&A session.

Barry Hutton: Great. Thank you Eduardo Thank you Patricia.

Barry Hutton: Great. Thank you, Eduardo. Thank you, Patricia.

Speaker Change: Sure.

Speaker Change: We yeah we've.

Barry Hutton: We have received a number of questions from investors over the course of the quarter, especially in the last day or two. As we have fielded those questions, we have recognized that many of the questions are similar and really concentrate around a few key topics. We wanted management to take a few moments to address those primary topics right now publicly for the entire audience. So I will ask these questions to Eduardo to get his comment. The first question is related to the stock exchange listing. Effectively, Eduardo, can you explain the company's decision to withdraw the appeal to the New York Stock Exchange and what is likely to happen next?

Barry Hutton: We have received a number of questions from investors over the course of the quarter, especially in the last day or two. As we have fielded those questions, we have recognized that many of the questions are similar and really concentrate around a few key topics. We wanted management to take a few moments to address those primary topics right now publicly for the entire audience. So I will ask the topics to Ed Wardo to get his take on them. The first question is related to the stock exchange listing. Effectively, Eduardo, can you explain the company's decision to withdraw the appeal to the New York Stock Exchange and what is likely to happen next? Thank you, Barry.

We've received a number of questions from investors over the course of the quarter, especially here in the last day or two.

Speaker Change: As we.

Bill did those questions.

Speaker Change: And is that many of the questions are similar and really concentrate around a few key topics and so we wanted management to take a few moments to address those primary topics.

Speaker Change: Right right now publicly for the entire audience.

Barry Hutton: So I will ask these topics to Eduardo to get his comments.

Speaker Change: So I will ask these topics too to Eduardo to get his comments.

Barry Hutton: The first question is related to the stock exchange listing. Effectively, Eduardo, can you explain the company's decision to withdraw the appeal to the New York Stock Exchange and what is likely to happen next?

Speaker Change: First question is related to the stock exchange listing effectively Eduardo can you explain the company's decision to withdraw the appeal to the New York stock exchange and what is likely to happen next.

Eduardo Iniguez: Barry, thank you. Look, I understand the move from the NYC may appear to be a high-profile change, but if you've been following Get-Around's journey as a public company, you'll be familiar with the fact that the company hasn't been compliant with the NYC's listing requirements for some time. I think since going to the public in late 2022, the company has had several operational and financial challenges that have impacted our finances and ultimately our status with the NYC.

Barry Hutton: Barry Thank you.

Barry Hutton: <unk>.

Eduardo: Very much, thank you. Look, I understand the move from NYC may appear to be a high-profile change, but if you've been following Getaround's journey as a public company, you'll be familiar with the fact that the company hasn't been compliant with the NYIC's listing requirements for some time. I think since going public in late 2022, the company has had several operational and financial challenges that have impacted our finances and ultimately our status with the NYC.

Eduardo: Thank you. Look, I understand the move from NYC may appear to be a high-profile change, but if you've been following Getaround's journey as a public company, you'll be familiar with the fact that the company hasn't been compliant with NYIP's listings requirements for some time. Since going public in late 2022, the company has had several operational and financial challenges that have impacted our finances and ultimately our status with the NY

Eduardo: Look I understand the move from the NYSE may appear to be high profile change.

Speaker Change: But if you've been following to get our own journey as a public company you'll be familiar with the fact that the company hasn't been compliant with the NYSE listing requirements for some time.

Glenn: Thanks Glenn.

Glenn: Public in late 2022, the company has had several operational and financial challenges that have been.

Glenn: Impacted our finances, and ultimately our status with the NYSE.

Glenn: But however.

Eduardo: But, however, we are today and we will continue to be a public company. We fully plan to follow the expected SAC public company requirements. As outlined during the call, we have installed a new executive team, several new board members, along with making operational changes and successfully securing financing. Our immediate near-term focus is to transform the company into a sustainable operational model to better serve our drivers, car owners, and investors. I believe, and the team believes, that when the time is right, we will re-evaluate our exchange listing options.

Eduardo Iniguez: However, we are today, and we will continue to be a public company. We fully plan. To follow the expected SSC public company requirements, as outlined during the call, we have installed the new executive team, several new board members along with making operational changes, and successfully are a medium near-term focus to transform the company into sustainable operational models, better server drivers, car owners and investors. I believe, and the team believes, when the time is right, we will re-evaluate our exchange listing options.

Eduardo: We are today, and we will continue to be a public company. 45 45, will meet the expected SSE public company requirements. Outlined during the call, we have installed new executive teams, several new board members, along with making operational changes, just for you. Our immediate near-term focus is to transform the company into a sustainable operational model to better serve our drivers, car owners, and investors. GM believes, and the team believes that when the time is right, we will re-evaluate our exchange listing. Thank you.

Glenn: We are today and we will continue to be a public company.

Glenn: We fully plan.

Glenn: To follow the expected public company requirements.

Glenn: As outlined during the call we have installed new executive team several new board members, along with making operational changes.

Glenn: And successfully so.

Glenn: Turning financing.

Glenn: Our immediate and near term focus is to transform the company into a sustainable operational model to better serve our drivers partners and investors.

Glenn: I believe in the team believes that.

Glenn: When the time is right, we will reevaluate our exchange listing options.

Eduardo Iniguez: Thank you.

Glenn: Great.

Barry Hutton: Great, thank you. The next question... In addition to your efforts to streamline the business operation, what are the near-term and mid-term opportunities to improve your key growth metrics?

Eduardo: The next question... In addition to your efforts to streamline the business operation, what are the near-term and mid-term opportunities to improve your key growth? It's a good question. Thank you.

Speaker Change: Thank you.

Eduardo Iniguez: The next question, in addition to your efforts to streamline the business operations, what are the near-term and mid-term opportunities to improve your key growth metrics? It's a very good question. As Patricia and I shared on the call, we're pleased with cutting our quarterly net loss by more than half the year, but we will not sacrifice growth to continue optimizing our cost structure. It is important to remember that we have a proven business model, and we know that car sharing can be profitable, so we firmly focus on balancing cost optimization with profitable growth.

Speaker Change: The next question.

Speaker Change: In addition to your efforts to streamline the business operations, what are the near term and mid term opportunities to improve your key growth metrics.

Speaker Change: Pittsburgh is a good question.

Eduardo: It's a good question. As Patricia and I shared on the call, we're pleased with cutting our quarterly net loss by more than half year over year, but we will not sacrifice growth to continue optimizing our cost structure. It is important to remember that we have a proven business model and we know that car sharing can be profitable, so we firmly focus on balancing cost optimization with profitable growth. As you recall, and if you follow Get Around, as I mentioned before, and I was here during that time, the company was focused on growth at all costs, but now the management team is aggressively pursuing market segments that are aligned with our business model. For some context,

Speaker Change:

Speaker Change: As Patricia and I shared on the call. We're pleased with cutting our quarterly net loss, but more than half year over year, but we will not sacrifice growth to continue optimizing our cost structure.

Eduardo: As Patricia and I shared on the call, we're pleased with cutting our quarterly net loss by more than half year-over-year, but we will not sacrifice growth to continue optimizing our costs. It's important to remember that we have a proven business, and we know that car sharing can be profitable, so we firmly focus on balancing cost optimization with profitable growth, as you recall. And if you follow Getaround, like I mentioned before, previously, and I was scared to end up, the company was focused on growth at all costs. But now, the management team is aggressively pursuing market segments that are along with us, contact. The company's estimate of the total serviceable market is over $100 billion, and there are only a handful of global players.

Speaker Change: Important to remember that we have a proven business model and we know that car sharing can be a profitable. So we firmly focused on balancing cost optimization with profitable growth.

Eduardo Iniguez: As you recall, and if you've followed Getaround, like I mentioned before, previously, and I was here today at that time, the company was focused on growth at all costs, but now the management team is aggressively pursuing market segments that are aligned with our business model. For some context, the company's estimate of total serviceable market is over 100 billion, and there's only a handful of global players. So the question is how we grow properly, and that's what my team and I are here to do. To give you some growth examples, we continue building on our technology and support infrastructure to drive loyalty.

Speaker Change: As you recall, if you've followed get around like I mentioned before.

Speaker Change: Previously and I will share during that time.

Company with focus on growth at all cost.

Speaker Change: But now the management team is aggressively pursuing market segments that are aligned with our business model.

Speaker Change: For some context.

Speaker Change: The custom the company's estimate of total serviceable market is over 100 billion.

Speaker Change: There's only a handful of go global players.

Eduardo: The company's estimate of the total serviceable market is over $100 billion, and there are only a handful of global players. The question is how we can grow profitably, and that's what my team and I are here to do. To give you some growth examples, we continue building on our technology and support infrastructure to drive loyalty and increase repeat get around customers. Our proprietary technology with Connect is key here, making it incredibly convenient to rent. Focusing on aggressive geographic expansion and possible North American-European country dialogue and pursuing longer-distance rental by attracting a new customer segment of rental companies.

Speaker Change: So the question is how big.

Eduardo: The question is how to grow profitably, and that's what my team and I are doing. Here are some growth examples. We continue building on our technology. Report Infrastructure Report Infrastructure, to drive loyal customers. Our proprietary technology with Kinect is key here, making it incredibly convenient to rent. Focusing on aggressive geographic expansion and possible North American country discourse, and pursuing longer-distance rental by attracting a new customer segment of rentals. Thank you. Looking at

Speaker Change: Grow profitably and that's what my team and I are here to do.

Speaker Change: To give you some growth examples we continued building on our technology and support infrastructure to drive loyalty.

Speaker Change: Increasing repeat get around customers, our proprietary technology with connect is key here make it incredibly convenient to rent.

Eduardo Iniguez: Increasing repeat Getaround customers of a prior to our technology would connect its key year, making it incredibly convenient to rent.

Eduardo Iniguez: Focusing on aggressive geographic expansion in possible North American European countries is core, and pursuing longer distance rental by attracting a new customer segment of renters.

Speaker Change: Focusing on aggressive geographic expansion and profitable North American European.

Speaker Change:

Speaker Change: Countries this quarter.

Speaker Change: And pursuing longer distance Russell by attracting a new customer segment of renters.

Eduardo Iniguez: Thank you.

Speaker Change: Thank you.

Eduardo Iniguez: Looking bigger picture, how does Getaround differentiate itself from competitors in the car sharing market?

Speaker Change: Looking bigger picture.

Barry Hutton: Thank you. Looking at the bigger picture, how does Getaround differentiate itself from competitors in the car-sharing market, and what are the key challenges and opportunities that you perceive for the industry?

Speaker Change: How does get around differentiate itself from competitors competitors in the car sharing market and what are the key challenges and opportunities that you foresee for the industry.

Eduardo: How does Getaround differentiate itself from competitors in the car-sharing market? And what are the key challenges and opportunities that you perceive for the industry? On the top of my head, I could think of four, and I'll review them, continue, but I want to start with. First, we align.

Eduardo Iniguez: And what are the key challenges and opportunities that you've perceived for the industry?

Eduardo Iniguez: Thanks very much.

Larry: Thanks, Larry.

Eduardo: Thanks, Barry. Right off the bat, I could think of four, and I'll review them as I continue, but I want to start with: First, we align all of our functions around creating a cohesive driver and owner experience that's seamless, intuitive, and adds value to the community we're a part of. To us, the customer experience is what differentiates us from the competition, whether in car sharing or compared to traditional rental agencies. We've seen four areas that we, the freighter itself, can improve.

Speaker Change: And the top of my head I can think of for now I'll review them.

Eduardo Iniguez: I think the top of my head, I could think of four. Now I'll review them as I continue, but I want to start with, first we align all of our functions around creating the cohesive driver and owner experience that seem less to it as Matt's value to community we're part of. So as customer experience is what differentiates us from the competition, whether in car sharing or compared to traditional rental agencies, we see four areas that we differentiate itself. One is our Connect technology, which is targeted to our drivers. We want to continue making it incredibly easy for that to search, book, and drive.

Speaker Change: Continue, but I want to start with.

Speaker Change: First we aligned.

Eduardo: All of our functions revolve around creating a cohesive driver and owner experience that's seamless, intuitive, and adds value to the community we're a part of. To us, the customer experience is what differentiates us from the competition, whether in car sharing or compared to traditional rental agencies. We've seen four areas where we discredit ourselves.

Oliver: Oliver functions around creating a cohesive driver and owner experience seamless intuitive and that's value to community we're part of.

Oliver: To us customer experiences what differentiates us from the competition.

Oliver: Other in carsharing or compared to traditional rental agency.

Oliver:

Oliver: We see four areas that we the fracture itself one is our connect technology.

Eduardo: One is our connected knowledge, which is targeted at our drivers. We want to continue making it incredibly easy for them to search, book, and drive. For example, our drivers do not have to wait in a long line at a physical location to get into a car, and they could just use the app, connect to the vehicle, and pick up the car without having anyone there. The second place is our trust score technology, which is AI. Machine Learning Technology, which focuses on honors.

Eduardo: One is our Connect technology, which is targeted at our drivers. We want to continue making it incredibly easy for them to search, book, and drive. For example, our drivers do not have to wait in a long line at a physical location to get into a car, and they can just use the app, connect to the vehicle, and pick up the car without having anyone. Second, our Trust Score technology, to AI, you learn to get out, focus on honor.

Oliver: Which is targeted to our drivers.

Oliver: We want to continue making it incredibly easy for them to search booked and drive.

Eduardo Iniguez: for example, our drivers did not have to wait in long lines on the physical location to get into a car, and they could just use the app, connect to the vehicle, and pick up the car without having anyone there.

Oliver: For example, our drivers, but not have to wait in a long line.

Oliver: Physical location to get into a car.

Oliver: And they can just use the app connects to the.

Oliver: Yeah, Glenn pick up the car without having anyone there.

Eduardo Iniguez: Second place is our trust score, technology, which is AI, machine learning technology, which both is on on on on Earth. The way trust score works is I want to ensure that drivers take care of the parts because it's important to our owners, so we continue to iterate our risk on the right to make it more rewarding to rent Getaround than any other marketplace.

Oliver: Second places our trust score technology, which is AI.

Oliver: She learning technology, which focuses on our on owners.

Oliver: The way Trust score works.

Eduardo: The way the trust score works is we want to ensure that drivers take good care of their cars because it's important to our owners. So we continue to iterate our risk underwriting to make it more rewarding to rent a getaround than any other market. The 13th is our global platform. For both North America and Europe, we are now a single global technology platform that we believe is best in class, unlocking efficiency at scales as we continue to release new features to our customers.

Eduardo: The way to score work, and want to ensure that drivers take good care of their cars, is important to our owners, so we continue to iterate our risk underwriting to make it more rewarding to rent a get-around than any other money. The 13th is our global platform, the world, on October 1, 2018. And the last piece is... in our turtle town.

Oliver: One ensure that drivers take care of their part.

Oliver: Because it's important to our owners. So we continue to iterate our risk underwriting.

Oliver: To make it more rewarding to run to get around any other marketplace.

Eduardo Iniguez: The third piece is our global platform. I believe for North America and Europe we are now a single global technology platform that we believe is best in class.

Oliver: The third piece is our global platform I believe for.

Oliver: North America and Europe, we are now a single global technology platform that we believe is best in class.

Oliver: Unlocked and efficiency at scale as we continue to release new features to our customers.

Eduardo Iniguez: Unlocked Customers. And the last piece is our turtle talent, and we've done a really good job internally with the past few months to attract industry experts or passing about changing the car sharing world. They're the ones who are really leading the implementation of changes to better serve our customers.

Eduardo: And the last piece is our internal talent. We've done a really good job internally over the past few months to attract industry experts who are passionate about changing the car sharing world. They're the ones who are really leading the implementation of changes to better serve our customers. As far as the challenge goes, we continue to phase it in. State legislation that makes certain markets challenging to operate for car sharing, studying our operations in New York as a result of legislation, as one example. This takes away from the opportunity for our communities to drive, earn, and reduce congestion.

Oliver: And the last piece is.

Oliver: And our internal talent.

Oliver: I think we've done a really good job and certainly over the past few months.

Eduardo: We've done a really good job internally over the past few months of attracting industry experts with passion for changing the car sharing world. They're the ones who are really leading the implementation of changes to better serve customers. As far as the challenge goes, we continue to say, we have faith. State legislation that makes certain markets challenging to operate for car sharing, setting our operations in New York as a result of legislation, for example, takes away from the opportunity for our communities to thrive, earn, and... And lastly, some of the audience has recognized that given Getaround's business model, the company must have a significant amount of data from its drivers and its car owners. Has the company tried to leverage any AI capabilities or features through your technology or your platform? Thanks, Barry.

Speaker Change: To attract industry experts for passenger about changing the Carsharing world.

Speaker Change: They are the ones, who are really leading the implementation of changes to better serve our customers.

As far as the challenge goes.

Eduardo Iniguez: As far as the challenge goes, we continue to face and we have faced state legislation that makes certain markets challenging to operate for car sharing, to setting our operations in New York as a result of legislation, as one example. This takes away from the opportunity for our communities to drive or never do congestion.

Speaker Change: We continue to face we have fees.

Speaker Change: I feel a distillation that maybe certain markets challenging to operate for Carsharing suspending our operations in New York as a result of legislation as one example.

Speaker Change: This takes away from the opportunity our communities for our commitment to drive earned and reduce congestion.

Eduardo Iniguez: And lastly, some of the audience that's recognized that given Getaround business model, the company must have a significant amount of data from its drivers and its car owners.

Eduardo: And lastly, some of the audience has recognized that given Getaround's business model, the company must have a significant amount of data from its drivers and its car owners. Has Getaround tried to leverage any AI capabilities or features through your technology or your platform?

Speaker Change: And lastly.

Speaker Change: Some of the audience is recognize that given get around the business model. The company must have a significant amount of data from its drivers and.

Speaker Change: This car owners.

Eduardo Iniguez: How does the company try to leverage any AI capabilities or features through your technology or your platform? Thanks for another good question. It's true Getaround has a significant amount of data from over a decade of operating in the car sharing space. But it's not just connect data. It's also general marketplace dynamics, and there are always opportunities to better leverage data. One way we're doing this is by exploring how AI can help improve the customer experience. For example, how we generate AI will help liquidity. We can use data for personalization and improving the research experience for drivers so they can better now to get the marketplace experience for risk management is another area where we can deploy specifically by incorporating our data sets how we price risk with our trust code models as well as how we base price with more accurate dynamic pricing.

Speaker Change: How does the company try to leverage any AI capabilities or features through your technology or your platform.

Speaker Change: Thanks, Bert another good question.

Eduardo: Thanks, Barry. Another good question. It's true. Getaround has a significant amount of data from over a decade of operating in the classroom. But it's not just Connect data; it's also general marketplace dynamics, and there are always opportunities to better leverage data. One way we are doing this is by exploring how AI can help improve the customer experience. For example, how we generate AI will help liquidity. We can use data for personalization, improving the research experience for drivers so they can better... Navigate the marketplace experience.

Eduardo: Another good question. It's true, Getaround has a significant amount of data from over a decade of operation, and the questions, but But it's not just Connect data; it's also general marketplace dynamics; there are always opportunities to better leverage data. One way we are doing this is by exploring how AI can help improve the customer experience. For example, how we generate AI will help liquidity. We can use data for personalization, improving the research experience for drivers so they can do it better.

Speaker Change: True get around has significant amount of data from over a decade of operating in the crusher.

Speaker Change: But it's not just connect data, it's also general marketplace dynamics.

Speaker Change: And there are always opportunities to better leverage data.

Speaker Change: One way we're doing this is by exploring how AI can help improve the customer experience.

Speaker Change: For example, how we generate AI will help liquidity.

Speaker Change: We can use data for personalization improving the research experience for drivers so they can better.

Speaker Change: Uh huh.

Now we can get the marketplace experience for.

Eduardo: Navigate the marketplace experience. Risk management is another area where we can deploy, specifically by incorporating our data set, how we price risk with our trust score models as well as how we base price with more accurate dynamic pricing. Another one I could think of is how we can incorporate AI. How you interact with her.

Eduardo: Risk management is another area where we can deploy. I'm going to talk a little bit about how we do that, specifically by incorporating our data sets, how we price risk with our trust score models, as well as how we base price with more accurate dynamic pricing. Another one I can think of is how we can incorporate AI and how we interact with our customers. Another example of that would be using the chat experience to assist bookies and have instant customer support. And we all know AI, new ways for companies to compute and differentiate themselves, and AI presents a new frontier.

Speaker Change: Our risk management is another area, where we can deploy.

Speaker Change: Specifically by incorporating our datasets, how we price risk with our trust score model, that's how we base price.

Speaker Change: With more accurate dynamic pricing.

Eduardo Iniguez: Another one I could think of we can incorporate AI and how we interact with our customers. Another example that would be we can and with the chat experience to assist bookings and have instant customer support.

Speaker Change: Another one I can think of we can incorporate AI and.

And how we interact with our customers.

Eduardo: Another example of that would be using the chat experience to assist bookies and have instant customer support. And we all know AI, the new ways for a company to compute and differentiate itself, and AI presents a new frontier for our business. Honestly, I'm really excited to share more about it and how we're using it, and particularly the impact on the business.

Speaker Change: Another example of that would be.

Speaker Change: N.

Speaker Change: With the chat experience to assist Brooklyn, and have instant customer support.

Eduardo Iniguez: As we all know, AI is the new way for it to compete in the frames ourselves, and AI presents a different year for our business, and honestly, I'm really excited to share more about it, and how we're using it, and particularly the impact of the business. The more this will come into your cost.

Speaker Change: As we all know AI.

Speaker Change: The new.

Speaker Change: Wafer needs to compete and differentiate yourselves.

Speaker Change: AI presents a difference here for our business and honestly unbleached started to share more about it and how we're using it and particularly the impact of the business.

Speaker Change: But more of this will come in future calls.

Barry Hutton: Great. Thank you, Eduardo, and Patricia. You know, our audience recognizes that has been a very busy and dynamic few months with the company.

Speaker Change: Great. Thank you Eduardo and Patricia.

Barry Hutton: Thank you, Eduardo and Patricia. You know, our audience recognizes that it has been a very busy and dynamic few months with the company. We appreciate management giving this business update today and addressing several of the key topics that most of our investors have been asking about. So at this point, we want to thank the audience and our investors and other stakeholders for your interest in the company and listening in today. And we look forward to updating all of our stakeholders with future developments as appropriate through various communications channels, including but not limited to our next quarterly report at the end of the third quarter. So again, thank you for your interest, and at this time, we can disconnect and end the call.

Barry Hutton: Thank you, Eduardo and Patricia. You know, our audience recognizes.

Speaker Change: Our audience recognizes that it's been very busy and dynamic few months with the company. We appreciate management given this business update today in the dressing.

Barry Hutton: We appreciate management given this business update today and addressing several of the key topics that most of our investors have been asking about. So at this one, we want to thank the audience and our investors and other stakeholders for your interest in the company and listening in today, and we look forward to updating all of our stakeholders with future development as appropriate through various communications channels, including not limited to our next quarterly report at the end of the third quarter.

Speaker Change: Several of the key topics that.

Speaker Change: Most of our investors have been asking about.

Speaker Change: So at this point, we want to thank the audience and our investors and other stakeholders for your interest in the company and listening in today and we look forward to updating all of our stakeholders with future development as appropriate through various communication channels.

Operator: Good afternoon, and welcome to Getaround's 2nd quarter, 2024 earnings conference call. Today's webcast includes management's prepared remarks along with a hosted Q&A session. As a reminder, this event is being recorded.

Barry Hutton: I would now like to turn the conference over to Barry Hutton, managing director of the Blue Shirt Group. Please go ahead.

Speaker Change: Including not limited to our next quarterly report.

Barry Hutton: Thank you, operator, and thank you, everyone, for joining us today.

Speaker Change: The end of the third quarter.

Barry Hutton: So again, thank you for your interest, and at this time, we can disconnect and end the call.

Speaker Change: Again, thank you for your interest and at this time, we can disconnect the call.

Barry Hutton: Hosting the call with me are Getaround's Chief Executive Officer, Eduardo, and Getaround's Chief Accounting Officer and Interim Chief Financial Officer, Patricia. On this call, management will be making protections for other forward-looking statements within the needing of federal securities laws, which are based on our current expectations and assumptions and our subject to risk and uncertainty. Forward-looking statements generally relate to future events for our future financial and operating performance. Our assumptions, expectations, and beliefs regarding these matters may not materialize, and our actual results in future periods are subject to risk and uncertainties that could cause those actual results to differ materially from those projected.

Barry Hutton: These risks, which include those set forth in the press release that we issued earlier today, as well as those more fully described in our filings with the securities and exchange commission. The forward-looking statements in this announcement are based on information available to us as of the date hereup, and we've explained any obligation to update any forward-looking statements except as required by law. Please note that other than revenue, or as otherwise specifically stated, the financial measures to be discussed on this call will be on a non-gap basis.

Barry Hutton: The non-gap financial measures are not intended to be considered in isolation, or as a substitute for results prepared in accordance with GAP. The discussion of why we present non-gap financial measures and a reconciliation of the non-gap financial measures discussed in this call to the most directly comparable GAP financial measures are included in our earnings press release that is available on our website.

Eduardo Iniguez: With that, let me turn the call over to Eduardo.

Eduardo Iniguez: Thank you, Barry, and good afternoon, everyone. As you know, I rejoined Get Around at CEO and late February. Since then, I have been working with our team on multiple initiatives to lay the foundation for growth and profitability.

Eduardo Iniguez: I believe Get Around has several advantages that uniquely position us to continue improving our better position within the car sharing space. These include our proprietary Connect Technology, which enables fully remote management of bookings, our growing global presence that allows customers to book in the US and in Europe, and our incredibly loyal and talented team that continues to focus on executing our mission.

Eduardo Iniguez: To date, we have completed the following. Revealing and streamlining our operations across every function to lower our cost structure. Focus in heavily on improving margins, which include making the difficult decision to suspend operations in markets where profitability is challenging due to regulatory requirements such as New York. And enhancing our governance and leadership team by appointing industry experts to need board member seats and senior executive positions and obtaining a commitment of $50 million in additional financing with $40 million of this already secured to execute our business plan.

Eduardo Iniguez: There are other initiatives in flight including pursuing ISIL certification as part of a renewed focus on strategic partnerships with OEM automakers and their connected cars. A grant of expansion of our gig business including both our higher part by getting around and drive with Uber operations. New ways to get into a car in addition to our seamless connect experience including delivery to a driver's location or point of interest and iterate on our AI based trust core model to better assess and price risk.

Eduardo Iniguez: I am pleased to report that these efforts are beginning to translate into financial performance particularly with respect to margin improvement. On a year over year basis our Q2 trip contribution margins improved from 43% to 53%. This reflects a new growth of focus on controlling our trip to forecast including claims and customer support expenses. We have also completed extensive restructuring of people, teams, processes and systems which have been our expected to continue to improve our bottom line.

Eduardo Iniguez: As a result second quarter year over year adjusted it at a loss improved 49% to $11.4 million. Total net revenue was consistent with the same period in 2023 at $18.6 million while gross booking value fell by 1% to $53 million.

Eduardo Iniguez: It is important to note that we achieve similar year to year total revenues in the second quarter despite facing several headwinds. These include suspending all operations in New York, one of our largest markets as well as legacy challenges from 2023 that impact the supply operations and acquisitions and reduce global marketing investment that impact of demand.

Eduardo Iniguez: Revenue benefited from the acquisition of higher-car assets completed in May 2023 and we continue to invest in our gig operations which makes get around now the country's largest peer-to-peer car sharing marketplace for gig drivers. In Q2 synergies from the higher-car acquisition expanded our drive-with-through group program, integrated skilled operational leadership to other business areas and provided insight into managing a healthy margin business while focusing on high vehicle utilization, longer duration rentals and high velocity product development.

Eduardo Iniguez: Our gig and global technology platform updates completed in the first quarter have been encouraging, with the launch of new features such as Key Exchange, which allows owners and drivers to connect in person, providing owners more agency and drivers with more choice in order to improve liquidity, and anticipate our 2025 global platform implementation across all business operations to further drive significant top-light growth.

Patricia Huerta: Now I'll turn it over to Patricia Huerta, our Chief Accounting Officer and Interim Chief Financial Officer to review our financial results. Thank you, Eduardo, and good afternoon. I said, Eduardo, mention we've seen revenue consistent with the same period year over year with an uptick in profitability, signaling positive momentum from our ongoing efforts to enhance performance. Upline revenue was flat relative to Q2 2023 at $18.6 million while gross margin from service revenue, continuous upward trends reaching 88% in Q2 2024.

Patricia Huerta: Trips for the second quarter were 235,000 down from 257,000 in Q2 2023. The reduction in trips is largely attributed to the suspension of operations in New York State. Year over year, net revenue was consistent with Q2 2023 despite headwinds from exiting the New York market effective April 1, 2024 in our exit from certain other unprofitable geographic markets. That impact was partially offset by the revenue contributed by our acquisition of higher car assets in May 2023.

Patricia Huerta: On the cost side, we have improved gross margins from service revenue to 88% in Q2 of 2024, an improvement of 300 basis points year over year. Trip contribution profit was $9.7 million, up 23% year over year driven by reductions in support costs. This improvement in our unit economic reflects the meaningful impact of many operational and cost actions we've taken this year and we believe there's further room for margin improvement while sustaining healthy top line momentum.

Patricia Huerta: Operating expenses total $40.7 million in the second quarter. A decrease of $6.6 million compared to Q2 of last year, due to reducing and optimizing marketing spend operations, support expenses, as well as general and administrative costs. Our adjusted EBITDA ended the quarter at $11.4 million dollar loss, favorable to the $22.4 million dollar loss during the same period last year, mostly tied to optimizing our marketing operations and support expenses. Our cash position was $30.9 million dollars at the end of Q2 2024, and we are in the process of improving that position.

Patricia Huerta: Finally, we have used the existing moderate capital debt facility to add $20 million of cash in July 2024. I said, Eduardo outlined with taking significant steps to reset our company leadership, business direction, and operations. These changes are now in place and the benefits are beginning to be reflected in our financial results.

Patricia Huerta: As our efforts continue, we look forward to providing ongoing business updates.

Barry Hutton: The first question is related to the stock exchange listing.

Eduardo Iniguez: Effectively, Eduardo, can you explain the company's decision to withdraw the appeal to the New York Stock Exchange and what is likely to happen next? Barry, thank you. Look, I understand the move from the NYC may appear to be high-profile change, but if you've been following get-around journey as a public company, you'll be familiar with the fact that the company hasn't been compliant with the NYC's listings requirements for some time. I think since going to the public in late 2022, the company has had several operational and financial challenges that have impacted our finances and ultimately are status with the NYC.

Eduardo Iniguez: However, we are today and we will continue to be a public company. We fully plan. To follow the expected SSC public company requirements, as outlined during the call, we have installed the new executive team, several new board members along with making operational changes, and successfully are a medium near-term focus to transform the company into sustainable operational models, better server drivers, car owners and investors. I believe, and the team believes, when the time is right, we will re-evaluate our exchange listing options. Thank you.

Eduardo Iniguez: The next question, in addition to your efforts to streamline the business operations, what are the near-term and mid-term opportunities to improve your key growth metrics? It's very good question. As Patricia and I shared on the call, we're pleased with cutting our quarterly net loss been more than half the year, but we will not sacrifice growth to continue optimizing our cost structure. It is important to remember that we have a proven business model, and we know that car sharing can be profitable, so we firmly focus on balancing cost optimization with profitable growth.

Eduardo Iniguez: To give you some growth examples, we continue building on our technology and support infrastructure to drive loyalty. Increasing repeat getaround customers of a prior to our technology would connect its key year, making it incredibly convenient to rent. Focusing on aggressive geographic expansion in possible North American European countries is core, and pursuing longer distance rental by attracting a new customer segment of renters.

Eduardo Iniguez: Thank you.

Eduardo Iniguez: Looking bigger picture, how does Getaround differentiate itself from competitors in the car sharing market? And what are the key challenges and opportunities that you've perceived for the industry? Thanks very much.

Eduardo Iniguez: I think the top of my head, I could think of four, now I'll review them as I continue, but I want to start with, first we align all of our functions around creating the cohesive driver and owner experience that seem less to it as Matt's value to community we're part of. So as customer experience is what differentiates us from the competition, whether in car sharing or compared to traditional rental agencies, we see four areas that we differentiate itself.

Eduardo Iniguez: One is our connect technology, which is targeted to our drivers. We want to continue making incredibly easy for that to search, book, and drive, for example, our drivers did not have to wait in long lines on the physical location to get into a car and they could just use the app, connect to the to the vehicle and pick up the car without having anyone there. Second place is our trust score, technology, which is AI, machine learning technology, which both is on on on on Earth.

Eduardo Iniguez: The way trust score works is I want to ensure that drivers take care of the parts because it's important to our owners so we continue to iterate our risk on the right to make it more rewarding to rent get around than any other marketplace. The third piece is our global platform. I believe for North America and Europe we are now a single global technology platform that we believe is best in class.

Eduardo Iniguez: Unlocked customers. And the last piece is our turtle talent and we've done a really good job internally with the past few months to attract industry experts or passing about changing the car sharing world. They're the ones who are really leading the implementation of changes to better serve our customers. As far as the challenge goes, we continue to face and we have faced state legislation that makes certain markets challenging to operate for car sharing to setting our operations in New York as a result of legislation as one example. This takes away from the opportunity for our communities to drive or never do congestion.

Eduardo Iniguez: And lastly, some of the audience that's recognized that given get around business model, the company must have a significant amount of data from its drivers and its car owners.

Eduardo Iniguez: How does the company try to leverage any AI capabilities or features through your technology or your platform? Thanks for another good question. It's true get around has significant amount of data from over a decade of operating in the car sharing space. But it's not just connect data. It's also general marketplace dynamics and there are always opportunities to better leverage data. One way we're doing this is by exploring how AI can help improve the customer experience.

Eduardo Iniguez: For example, how we generate AI will help liquidity. We can use data for personalization and improving the research experience for drivers so they can better now to get the marketplace experience for risk management is another area where we can deploy specifically by incorporating our data sets how we price risk with our trust code models as well as how we base price with more accurate dynamic pricing. Another one I could think of we can incorporate AI and how we interact with our customers. Another example that would be we can and with the chat experience to assist bookings and have instant customer support.

Barry Hutton: Thank you, Eduardo, and Patricia. You know, our audience recognizes that has been very busy and dynamic few months with the company. We appreciate management given this business update today and addressing several of the key topics that most of our investors have been asking about.

Barry Hutton: So at this one, we want to thank the audience and our investors and other stakeholders for your interest in the company and listening in today, and we look forward to updating all of our stakeholders with future development as appropriate through various communications channels, including not limited to our next quarterly report at the end of the third quarter. So again, thank you for your interest, and at this time, we can disconnect and in the call.

Q2 2024 Getaround Inc Earnings Call

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