Q3 2024 Zoomcar Holdings Inc Earnings Call
You have joined the meeting.
Please consider the forward looking statements contained in the earnings press release issued this morning on February 14, 2025, and seeded during this conference call as well as the risk factors and uncertainties described in our annual and quarterly filings with the Securities and Exchange Commission.
During our presentation, we may discuss our disclosed non-GAAP measures.
These non-GAAP measures are not intended to replace the presentation of our financial results in accordance with U S. GAAP.
The presentation of non-GAAP information is intended instead to provide additional information to investors to facilitate the comparison of past and present results.
Any forward looking statements. We make today are based on assumptions, which believes to be reasonable as of today. We undertake no obligation to update these statements as a result of future events.
Hiroshi: I will now hand, the call over to Hiroshi to provide his remarks.
Hiroshi: Thank you Vivian.
Hiroshi: Hello, everyone and thank you for joining our call today I'm excited to share that <unk>.
Hiroshi: I've been able to achieve another model.
Hiroshi: Results for the quarter ended December 31 2024.
Hiroshi: During this quarter, we remain focused on Betty, bringing a high boy E com experience for our guests simple and we saw continued grow on a year over year basis in booking up 19%.
Hiroshi: Demand remained strong while we concentrate on what athletes elite briefing supply organically and through partnerships with supply partners.
Hiroshi: These improvements have led to an increase in the number of <unk> and in all three digital right.
Hiroshi: Okay.
Hiroshi: Reflecting the strength of <unk> platform and Brad.
Hiroshi: You need to develop.
Hiroshi: We continue to focus on optimizing the cost structure and improving the profitability of the business, while driving bookings growth.
Hiroshi: This quarter, we saw another increase in contribution profit.
Speaker Change: Market data.
Hiroshi: Consecutive quarter of positive contribution profit.
Hiroshi: Lastly, we continue to make progress in restructuring of the debt all know our balance sheet.
Hiroshi: Which will ultimately reduce the cash burden on the business.
Hiroshi: We appreciate that some of the audience, maybe learning about zoom call for the first time, let me take you through a few slides for a brief introduction of the business.
Hiroshi: And to discuss the key problem, we're solving for in India.
Hiroshi: Jim guys of Nap that the both India's leading marketplace full cautionary.
The App on a post who provides the best vehicles to guests who choose from a selection of cars for use at affordable prices all of beach promote a sustainable Smatch transportation solutions.
Hiroshi: We are headquartered in Bangalore and have been in existence for more than 10 years.
Hiroshi: The company has 143 employees of which the majority are engineering design and product related stuff we have.
Hiroshi: Host 10 million guests and add over 25000 cards on our platform.
Hiroshi: We are well recognized in our home market and have over 90% brand awareness among cost sharing and rental guidance.
Hiroshi: So.
Hiroshi: What other major programs that homestead get phase and how does is in bell offer a solution for.
Hiroshi: Paul host vehicle ownership is highly expensive in India, while vehicles that are under utilized this is the program.
Hiroshi: Our market brands provides post an opportunity to make site income from vehicles, which would have otherwise been keeping idle.
Hiroshi: How to host make money.
Hiroshi: Let's say a whole it has a full time job and at month three income for the fruit that job is approximately 1000 below.
Hiroshi: Listing a compact SUV, he or she can $150 to $200 met of loan repayment maintenance and insurance that is.
Hiroshi: 15%, 20% extra income.
Hiroshi: This is a good site income and many horlicks consider adding the second legal to further increase their E call.
Hiroshi: We have hosts who will obtain.
Hiroshi: Financing for multiple vehicles upwards of say 15, plus whereas zoom Guy is their main income so as our professionals.
Hiroshi: Through these examples you can see how it zoom guy enables <unk> to start their own cost sharing.
Hiroshi: Moving to the gas side there are two problems statements one buying the tide build very expensive in India. The most popular vehicle used that Suzuki Swift, which coastal both 10000 Bella.
Hiroshi: This is significant bolt the average consumer who owns around $2700 per year.
Speaker Change: Yes, I may not be able to afford my own car. However, still wants do occasionally rent a vehicle and go on holiday with my friends in poverty.
Hiroshi: Second program.
Hiroshi: People still require vehicles to travel from one city to another.
Hiroshi: And need access to cod, joining the duration of the tree, whether it is both personal or business related travel.
Hiroshi: I am personally very happy because these program. Unlike in the U S where car ownership is high owning a vehicle is very aspirational and India.
Hiroshi: And this is why we are excited to help consumers by improving access to mobility in India through our platform.
Speaker Change: How big is the scale of these programs.
Speaker Change: India has a population of one 4 billion people of which the majority is walking edge.
Speaker Change: Only one in 10 household with the able to afford vehicles at the most popular car model coast fall time of GDP per capita so accessibility to mobility needs to be significantly improved.
Speaker Change: We believe there is a massive opportunity for.
Speaker Change: Digital print penetration is quite high where more than one video mobile phone connected to the internet.
Speaker Change: And importantly digital wallet.
Speaker Change: The predominant way to transact in India, you can even buy components or bananas on the street using your mobile.
Speaker Change: We believes them guys well positioned in India, where there exists a large market for cost sharing on the digital platform, where penetration today is still very low and demand or vehicle is high.
Speaker Change: With this overview of the business, let me dive deeper into some of these key highlights from this quarters results.
Speaker Change: The customer experience has been a key priority as it impacts greatly with our guest books another them got as well as the host decision to remain on our platform.
Speaker Change: We are taking February initiatives to improve the customer experience, including doubling customer support capacity, which is supported by Gen. AI tools machine learning based dynamic pricing and loyalty points became more attractive for repeat users increasing supply with great partners with nearly 10.
Speaker Change: Percent of hype worthy cause provided by one large fleet, operator, and zoom, Gus where film incentives across four main cities.
Speaker Change: These developments have led to improving metrics on our platform such as Pleasant Asia repeat users doubling from 6% at the end of the quarter ended September 32020, Paul two of 12%.
Speaker Change: The end of quarter ended December 31, 2024. In addition, we saw a continued increase in the number of hosts as well as an improvement in high 40 depots retention, which increased from 11% in fiscal Q2, 30% by the end of the fiscal Q3 2024.
Okay.
Speaker Change: Okay.
Speaker Change: We achieved another record quarter of contribution profit.
Speaker Change: The improvement in guest and host customer experience.
Speaker Change: Also allowed us to continue optimizing costs related to marketing incentives and discounts combined with continuous improvement in operational efficiencies and modern machine learning based dynamic pricing, we continue to optimize our cost base, which leads to another increase in quarter off contribution profit.
Speaker Change: I will now hand, it over to Sachin to provide an update on the company's fundraising and to discuss the financials in greater detail.
Sachin: Thank you.
Sachin: Hello, everyone and thank you for joining our earnings call today.
Sachin: I would like to share an update on the fundraising process since last quarter earnings call. We have closed a combined $15 million between the months of November and December 2000, and Britney for interviews.
In addition, we closed another round of funding totaling $3 million on January 31, 2025.
Sachin: And we will continue to raise additional funds during fiscal quarter quarter to support the needs of the business.
Sachin: These funds will primarily be used to support the growth of our operations and in part to Paydown the restructure tics.
Sachin: In terms of debt on the balance sheet beyond in discussion with our debt partners to restructure the existing debt, which we believe will help us introducing the near term cash and funding needs for this.
Sachin: And in the sustainability of our balance sheet.
Sachin: Let's take a look at our operational and financial measures.
Sachin: For fiscal quarter marked a solid quarter of performance as exhibited in our operational and financial measures on this beach.
Sachin: The numbers presented data for.
Sachin: For the quarter ended December 31, 2020, as compared to the quarter ending December 31 2020.
Sachin: Otherwise mentioned.
Sachin: The number of booking grew by 19% 203099 bookings in quarter three over the prior year period.
Sachin: Gross booking value remained flat and revenue increased by 1% following a similar pattern to the last quarter, whereby we are seeing more frequent but shorter duration bookings relative to the variety of petered.
Sachin: We will continue to focus on driving higher frequency of <unk> bookings over the immediate revenue growth.
Sachin: We are prioritizing the growth of repeat guests and good evening repeat booking behavior, which we believe will ultimately add value to our business in the longer term.
Sachin: The number of active high quality cars.
Sachin: Which we defined net cards with four five blocks with eight out of five increase from 5832 7247.
Sachin: And the average separating continue to improve from 4.16 during the quarter ended March 31 2020.
Sachin: 2470 during the quarter ended December 31 2024.
Sachin: All of this is driven driven by our efforts to improve the customer experience building radius in App features and use it and the use of AI tools to improve the in App experience for both guests and the host.
Sachin: As mentioned earlier revenue increased by 1% from 242 million to about <unk> 5 million.
Sachin: Contribution profit increased significantly from zero to $1 million to about one point to $8 million due to a reduction in marketing costs.
Sachin: <unk> and other cost improvement projects.
Sachin: This marks our fifth consecutive quarter of positive contribution profits and just to give you a perspective on a booking basis contribution profit increased from $2 $4 per booking during the quarter ended December 31, 2023 to 12 point $309 spud booking.
Sachin: During the quarter ended December pretty close to closing <unk>, which also represents a significant growth in contribution margin from 9% to 52% as a percentage of revenue year over year.
Sachin: Okay.
Sachin: Our adjusted EBITDA loss improved from 10 point $107 million to a loss of $3, one 5 million.
Sachin: Driven by company wide cost optimization efforts improvement in customer experience, which drove that.
Sachin: Group retention metric for both cost and get thereby reducing our requirement to spend on post incentive discounts and overall performance marketing.
Sachin: Loss from.
Sachin: From operations also improved from 11, six 8 million to a loss of $3 million to $4 million.
Sachin: Due to all of the aforementioned reasons.
Sachin: Our contribution.
Sachin: We have presented in the subsequent slides, which is slide number 13 and 14, we have presented to non-GAAP measures of contribution margin and adjusted EBITDA, which we believe are an important and supplemental to the GAAP measures. These slides provide a reconciliation of non-GAAP measures to the GAAP numbers reported in other.
Sachin: We reported an out by in our 10-Q. These recalculations will also be part of the 10-Q filed with Securities and Exchange Commission to be filed later today. After the market close and will also and is also part of the press release meet.
Sachin: Earlier in the day to day.
Sachin: I would now hand over the call to begin the Q&A session.
Sachin: Thank you Sachin, we will now move on to the Q&A portion of the call. Thank.
Speaker Change: Thank you to those who have submitted questions prior to today's call.
Speaker Change: The first question for today's session is can you. Please provide more details about the fundraising process and debt restructuring.
Sure let me take that question.
Speaker Change: In November 2000 recorded in December 2024 will be leased 915 million and $5.5 million, respectively for a combined result $15 million earlier.
Speaker Change: Earlier this month at <unk>.
Speaker Change: <unk>, an additional $3 million of capital.
Speaker Change: We will.
Speaker Change: Opportunistically continue to raise additional capital this quarter.
Speaker Change: The funds raised so far and intended to be raised in future will primarily be used to fund the growth initiatives of the business and part of the fund will also be used to paydown the restructured debt.
Speaker Change: Additionally, what we are doing is we are exploring various options with our data partners to restructure the current debt on the balance sheet. This may include for example, adjusting the terms of the debt to a longer paydowns should yield settling via issuance of equity are settling in cash again substantial debt forgiveness.
Speaker Change: We believe this is an important exercise, which will reduce the burden on the balance sheet reduce the interest expense and reduce the burden on the funds being raised in the short term shorter term.
Speaker Change: We believe our funds can then be better utilized to support the growth of the operations benefiting the business and increasing the shareholders value in the longer run.
Sachin: Thank you Sachin.
Speaker Change: Next question is please provide us with an update on your NASDAQ listing status.
Speaker Change: Sure. So we've been diligently working to regain the compliance compliance with NASDAQ applicable rules and are making significant progress.
Speaker Change: Earlier. This week, we received a notification from NASDAQ, allowing us to transition to NASDAQ capital markets by February 19, 2025, and further granting us the extension to regain compliance with the outstanding deficiency.
Speaker Change: Reflecting the efforts we have made so far and the comprehensive plan in place to restore our compliance. The company is fully committed to addressing the remaining deficiency and will continue to exert our best efforts in the weeks ahead.
Sachin: Thank you Sachin.
unknown: Last question is what are management's near term priorities for the business.
unknown: Yes, I will take this question ultimately we are prioritizing growth of the business by improving the customer experience for both hosts and guests and we have many initiatives in place to support. This in addition, we expect this to also improve the cash flows of the business through cost optimization.
unknown: Projects as well as the restructuring of the debt on our balance sheet, which such and discuss the outlook.
unknown: Allow me to provide more details operationally real proud as two things one increase supply and to provide a more seamless experience.
unknown: Our guests in house, we will continue to increase supply and this is a growth driver for us by having more vehicles on the platform. It provides guests with more vehicle options in a given radios and with shorter distances. It makes it more convenient for pickups as well.
unknown: We'll continue to improve the customer experience, providing a more seamless experience for guests and hosts that on our platform.
unknown: All of these factors will drive the growth of our business.
unknown: Greater customer experience also has a positive impact on the financials, which essentially greater bookings volume and revenue as well as cost savings.
unknown: We have been optimizing our cost structure and a big factor is being able to optimize marketing incentives without impacting growth.
unknown: Post redemption.
unknown: We believe we can continue to reduce coast to eventually reach a positive cash flow position.
unknown: Our core contribution margin is strong over 50% and it continues to improve over time.
unknown: Yeah.
Rishi: Thank you Rishi.
Speaker Change: This now concludes <unk> fiscal third quarter 2024 earnings conference call for more information. Please refer to our fiscal third quarter 2024 earnings press release and other materials found on our Investor Relations website.
Speaker Change: Also email lesser investors at <unk> Dot com for any further questions. Thank you for your participation today you may now disconnect.
Speaker Change: Okay.
Speaker Change: Okay.