Full Year 2024 Marti Technologies Inc Earnings Call
Operator: Greetings and welcome to Marti Technologies, Inc. Full Year 2024 Earnings Conference. At this time, all participants are on a listen-only mode.
Greetings and welcome to Marty Technologies, Inc. Full year 2024 earnings conference call.
At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone requires operator assistance during the conference. Please press star zero on your telephone keypad. As a reminder, this conference is being recorded it is now my pleasure to introduce your host can cut.
Operator: A question-and-answer session will follow the formal. If anyone requires operator assistance during the conference, please press star zero on your telephone.
Operator: As a reminder, this conference is being It is now my pleasure to introduce your host, Can Cliff Durgan, founder and president. Thank you, please go ahead.
Speaker Change: <unk> founder and President. Thank you. Please go ahead.
Can Cliff Durgan: Hello. Thank you, Donna.
Speaker Change: Hello, Oregon, Please thank you Donna.
Speaker Change: Thank you Donna.
Can Cliff Durgan: Before we begin, I'd like to remind everyone that statements made on this call, as well as in the full year 2024 presentation and earnings release contain forward looking statements regarding our financial outlook, business plans and objectives and other future events and developments. including statements about the market and revenue potential of our products and services and our goals and strategies. these subjects.
Speaker Change: Before we begin I'd like to remind everyone that statements made on this call as well as in the full year 2020 for presentation and earnings release contain forward looking statements regarding our financial outlook business plans and objectives and other future events and developments, including statements about the market and revenue potential of our products and services and our goals and strategies.
Speaker Change: These subjects please.
Can Cliff Durgan: These statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected. These risks and uncertainties include those described in the company's filings with the SEC, the earnings release and the presentation, and are based on current expectations and beliefs as of today, April 28, 2025.
Speaker Change: These statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected these risks and uncertainties include those described in the company's filings with the SEC the earnings release and presentation and are based on current expectations and beliefs as of today April 28 2025.
Can Cliff Durgan: In addition, our discussion today will include references to certain supplemental non-GAAP financial measures, which should be considered in addition to and not as a substitute for our GAAP results. We use these non-GAAP measures in evaluating and managing MART as a business, and believe they provide useful information for our investors. Reconciliations of the non-GAAP measures to the corresponding GAAP measures where appropriate can be found in the earnings presentation available on our website, as well as our earnings release and our filings with the SEC.
Speaker Change: In addition, our discussion today will include references to certain supplemental non-GAAP financial measures, which should be considered in addition to and not as a substitute for our GAAP results.
Speaker Change: We use these non-GAAP measures in evaluating and managing margins business and believe they provide useful information for our investors reconciliations of the non-GAAP measures to corresponding GAAP measures where appropriate can be found in the earnings presentation available on our website as well as our earnings release and our filings with the SEC with that I'll now turn the call over to my partner at that.
Can Cliff Durgan: With that, I'll now turn the call over to my partner, Ajit. Thank you all for joining us today and thank you, Jonkut, for the full year 2024 earnings goal of Mark Technology.
Speaker Change: Okay.
Speaker Change: Thank you all for joining us today, and thank you John clubs or the full year 'twenty 'twenty four earnings call with Mark technologies.
Ajit: For those new to our company, Marti, as the mobility super app of Turkey, Marti offers six services over our app, including car hailing, motorcycle hailing, taxi hailing marketplaces and owned and operated e-bike, e-scooter and e-moped rental services. Our car hailing, motorcycle hailing, and taxi hailing marketplace are a part of our ride hailing operation. And our e-bike, e-scooter, and e-moped rental services are part of our two-wheeled electric vehicle operation.
Speaker Change: For those new to our company Martha it as the mobility cheaper apples to gate marquee offers six services over our app, including car hailing motorcycle hailing taxis marketplaces, and owned and operated E bike E scooter and email that rental services.
Speaker Change: Our car hailing motorcycle healing and taxi and marketplace are a part of our radio operations.
Speaker Change: E bike E scooter.
Speaker Change: Rental services on a parts bar two wheel electric vehicle operations.
Ajit: As we continue to evolve our business model to align with Turkey's growing mobility demands, we are excited to share a key strategic shift. Over the past two and a half years, we have transitioned our primary focus to Right Here. Since sharpening our focus on ride hailing, we've consistently exceeded operational targets for both unique ride hailing riders and registered drivers. We began monetizing the ride-hailing service in October 2024, and in January 2025, we introduced a dynamic pricing model to further enhance efficiency and rider and driver satisfaction. These strategic moves are already generating strong early momentum. While we prioritize our growth of our rider and service, we've also implemented critical profitability enhancing measures and successfully deployed efficiency initiatives for our two-wheeled electric vehicle service, resulting in a notable reduction in both operating losses and capital required.
Speaker Change: As you continue to evolve our business model to allow them to keep growing.
Speaker Change: I'm excited to share a key strategic shifts.
Speaker Change: Over the past one half years, the transition of our primary focus to right here.
Speaker Change: And sharpening our focus on Friday, I mean, it consistently exceeded the operational targets for both unique ride hailing writers and registered drivers.
Speaker Change: He began monetizing the variety of in service in October 2024, and in January of 2025, we introduced eight dynamic pricing models to further enhance efficiency and rider and driver satisfaction.
Speaker Change: These moves are already generating strong early momentum.
Speaker Change: While we talk all the time about cool alrighty on surface, mostly implemented critical placebos enhancing measures and successfully deployed efficiency initiatives for our tool yield electric vehicle service, resulting in a notable reduction in both operating losses and capital requirements.
Ajit: This has helped us rebalance our portfolio and channel resources more effectively. These efforts are translating into accelerated financial performance. They're on track to almost double our revenue compared to 2024, to $34 million in 2025, and are expecting to achieve positive adjusted EBITDA in 2025, including incremental investments to accelerate right-of-hand growth. Lastly, the monetization of our ride-hailing and our first-move advantage are significantly enhancing our cash generation and capital efficiency. is bolstered financial performance.
Speaker Change: It has helped us rebalance our portfolio and channel resources more effectively.
Speaker Change: These efforts are translating into exciting national performance.
Speaker Change: In fact, almost double our revenue compared to 2000 $24 million to $34 million in 2025 and are expecting to achieve positive adjusted EBITDA in 2020.
Speaker Change: Excluding incremental investments to accelerate growth.
Speaker Change: Lastly, the monetization of a variety of them and a first mover advantage are significantly enhancing our cash generation and capital efficiency.
Speaker Change: It's bolster financial performance.
Ajit: positions us well to scale operations and capture Turkey's long-term mobility opportunity with increased resilience and flexibility. We're the number one urban mobility app, both on iOS and Android app stores in Turkey. We are the only car-hailing and motorcycle-hailing provider and the largest electric vehicle operator in the country. We have served over 109.4 million rides to 5.9 million riders since our launch. in 2024. We consistently outperformed our ride-hailing targets, hitting 1.66 million unique ride-hailing riders and 262,000 registered drivers by the end of the year. Although we are the youngest player in Turkey's urban mobility market, we are the clear market leader.
Speaker Change: Positions us well to scale operations and capture to get long term mobility opportunities within key resilience and flexibility.
Speaker Change: What are the number one urban mobility app, both on iOS and Android App stores in Turkey.
Speaker Change: The only car hailing a motorcyle cool hailing provider and the largest electric vehicle operator in the country. You have served over $109 4 million rights to 5.9 million unique writers since our launch in 2024.
Speaker Change: We consistently outperformed alrighty and targets hitting one points to 86 million unique ride hailing writers and 262000 registered drivers by the end of the year.
Speaker Change: Although they are the youngest stand to Keith urban mobility market, we are the clear market leader here.
Ajit: It is also important to note that. Of the top five urban mobility apps in the country, four, including Marte, are local. This is in line with global benchmarks. which have demonstrated that local companies win their respective mobility markets because of their operational advantage. We currently serve four of Turkey's largest cities, Istanbul, the capital of Ankara, Izmir, and Antalya. Together, these cities account for 50% of the country's GDP and 34% of its population. The opportunity is not limited to just these cities. Turkey is a large, untapped market with 24 cities that have populations greater than one million.
Speaker Change: It is also important to note that.
Speaker Change: Of the top five urban mobility apps in the country for including Martha are local.
Speaker Change: This is in line with global benchmarks.
We have demonstrated that local companies when their respective mobility markets because of their operational events.
Speaker Change: He currently serves four of turkeys largest.
Speaker Change: Assemble the type of encore isn't at Ana Paula.
Speaker Change: Together these Cds account for 50% of the country's GDP and 34% of its population.
Speaker Change: Ever.
Speaker Change: The opportunity is not limited to just E City, Turkey is a large untapped market. The 24 cities that have populations greater than 1 million people.
Ajit: And we plan on expanding to these cities in 2025 and beyond. In 24, we continue to invest in the growth of our ride-hailing service. As the only at-scale ride-hailing operator in the country, we spent two years growing the service before announcing its monetization in October 2024 in the form of a driver subscription package. Our number of unique ride-hailing riders grew 233% in 2024, from 499,000 to 1.66 million. Our registered drivers grew 146% from 107,000 to 262,000. We will continue to invest in the cost-effective growth of our ride-hailing service in 2025 and beyond, and aim to reach 2.15 million riders and 310,000 registered drivers by the end of June 2025.
Speaker Change: And we plan on extending these cities in 2025 and beyond.
Speaker Change: In 24, we continue to invest in the growth of our ride hailing service.
Speaker Change: As the only at scale variety of as operator in the country.
Speaker Change: Spent two years growing to service before announcing its monetization in October 2024 in the form of a driver's subscription package.
Speaker Change: Our number of unique why do you have any buyers grew 233% and 20.
Speaker Change: So imports from 499000 to $166 million.
Speaker Change: Our registered drivers grew 146% from 107000 to 262000.
Speaker Change: We will continue to lessen the cost effective growth of our ride hailing service in 'twenty five and beyond.
Speaker Change: And aim to reach two point 15 million writers and 310000 registered drivers by the end of June 2025.
Ajit: The accelerated growth and substantial scale that we've achieved in our base of riders and registered drivers relative to limited capital outlays that we have made in our rider-owned business reflect our commitment to capital-efficient growth. Looking forward, we will pursue incremental investments to capitalize on multiple growth drivers. These include pursuing further organic growth in the cities where we already operate, improving our rider and driver experiences, launching new cities to serve a greater share of Turkey's urban population, refining our dynamic pricing engine, and increasing our take-home. These initiatives will support our path towards capturing a $3 billion annual revenue opportunity in the Ryder-Hillenburg area.
Speaker Change: The accelerated growth and substantial scale that neither cheek.
Speaker Change: It's a writers and regulatory drivers relative to limited capital outlays.
Speaker Change: We have made no vitamin business reflect our commitment to capital efficient growth.
Speaker Change: Ports will pursue incremental lessons to capitalize on multiple growth drivers. These include first lien further organic growth in the cities, where we already operate including a rider and driver experiences launching new cities to serve a greater share of sugarcane urban population.
Speaker Change: We're finding our dynamic pricing engine.
Speaker Change: Increasing our take.
Speaker Change: These initiatives will support our path towards capturing a $3 billion annual revenue opportunity in the ride hailing business.
Speaker Change: Yes.
Ajit: Turkey is in great need of tech-enabled mobility solutions. Substitute transportation options are either less available or more expensive than in other markets. In Turkey, car ownership is costly, metro station density is low, traffic is an absolute nightmare, and the availability of taxis are very limited. We set out to change that, especially the limited number of available taxis, without writing instructions.
Speaker Change: Turkey is a great need of tech enabled mobility solutions does it because.
Speaker Change: Substitute transportation options are either less available or more expensive than in other markets.
Speaker Change: In Turkey.
Speaker Change: Car ownership is costly.
Speaker Change: Metro station density low fat that is an absolute nightmare and the availability of taxis are very limited.
Speaker Change: We set out to change that especially the limited number of available taxes without ride hailing service.
Ajit: Here's how large we believe our revenue opportunity is. every global benchmark. We see that the introduction of ride-hailing services into a market uncovers unmet demand. significantly eclipsing the demand of taxi service prior to the introduction of Rydia. This is because Rydale usually offers a significantly better, more accessible customer experience than taxis across almost all dimensions, including vehicle availability, price, and driver and vehicle quality. in the city of New York, for example. Riding and hailing increased the size of the taxi market by 1.6%. There were approximately 800,000 daily taxi rides in Istanbul, our largest city, when we launched RideAiling.
Speaker Change: Here's how large we believe our revenue opportunity it.
Speaker Change: It's every global benchmarks.
Speaker Change: You see that the introduction of ride hailing services into a market uncovered unmet demand.
Speaker Change: Difficultly eclipsing the demand of.
Speaker Change: Taxi service prior to the introduction of radio.
Speaker Change: This is because radio usually offers a significantly better more accessible customer experience than taxis across almost all dimensions, including vehicle availability price and driver and vehicle quality.
Speaker Change: In the city of New York for example.
Speaker Change: Ride hailing increases hydro taxi market by 1.6 times.
Speaker Change: There were approximately 800000 daily taxi rides and assemble our largest city when we launched right out what.
Ajit: What happened in New York is happening in Istanbul today. And we expect that there will be 1.3 million daily RideAiling trips in Istanbul at steady speed. And Istanbul's taxi market accounts for about 45% of Turkey's general taxi market. So this implies that there will eventually be about 2.9 million daily ride-hailing rides in Turkey. This is about 1 billion rights a year and around $10 billion of gross booking value. It's our At a take rate of 30% in LIVETHGOLD benchmarks, this produces $3 billion of annual revenue potential for Turkey's ride-hailing market at maturity. And in our two-wheeled electric vehicle business, consisting of owned and operated e-bikes, e-scooters and e-mopeds, we continue to focus on operational efficiency throughout 2024.
Speaker Change: What happened in New York is happening in Istanbul today, and we expect that there will be $1 3 million daily ride hailing trips stumble at steady state.
Speaker Change: And he stumbles taxi market accounts for about 45% of Turkey's general towards a general tax market. So this implies that there will eventually be about $2 9 million daily ride hailing rights in Turkey.
Speaker Change: This is about 1 billion rides, a year and around $10 billion of gross booking value.
Speaker Change: That's all.
Speaker Change: And the take rate of 30% and minus go benchmarks.
Speaker Change: This $3 billion of annual revenue potential for two keys right there in the market at maturity.
Speaker Change: And in our two wheel electric vehicle business, consisting of owned and operated E bikes E scooters and E. More pets, we continue to focus on operational efficiency throughout 2024.
Ajit: Our operational efficiency projects decreased the total cost of revenues by 10.5% year-over-year, despite managing a similarly sized fleet as in the previous year. We achieved each of these operational improvements while maintaining our historical TEPP and Mendelian rate of less than 0.1% of our feed on a monthly basis.
Speaker Change: Our operational efficiency projects decrease the total cost of revenues by 10, 5% year over year, despite managing a similarly sized seat as in the previous year.
Speaker Change: We achieved each of these operational improvements, while maintaining our historical except the mendoza rate of less than 0.1% of our feet on a monthly basis.
Ajit: Those are thinking and we will evaluate the opportunity to extend our fleet more earlier than the summer of twenty twenty.
Speaker Change: They're also thinking and we will evaluate the opportunities to extend our fleet more earlier than the summer of 'twenty 'twenty six.
Ajit: To further advance our operational efficiency efforts, in February 2024, we completed the acquisition. of all the intellectual property and software assets of ZOBA, the leading AI-powered software-as-a-service platform offering dynamic fleet optimization algorithms for two-wheeled electric vehicle optimization. ZOBA dynamically optimizes where vehicles are deployed and when operational tasks such as battery swaps, rebalances, and pickups occur to maximize ridership and minimize operational inefficiencies. In the first half of 2024, our vehicles deployed according to Zobo's algorithms achieved two times higher daily rides per vehicle than vehicles deployed without Zobo. This figure increased to 2.4 times in the second half of 2024, demonstrating that both ZOBA's effectiveness and room for further improvement.
Speaker Change: To further advance our operational efficiency efforts in February 'twenty 'twenty four we completed the acquisition.
Speaker Change: Of all the intellectual property and software assets of Zorba, the leading AI powered software as a service platform offering dynamic fleet optimization algorithms for two wheel electric vehicle offerings.
Speaker Change: Zorba dynamically optimizes when vehicles are deployed and then operational tasks such as battery swaps be balances and pick up a cure to maximize ridership and minimize operational inefficiencies.
Speaker Change: In the first half will change many core or vehicles deployed according to Zabows algorithms achieved two climbs higher daily rights for vehicles and vehicles deployed without soap.
Speaker Change: This figure increased to two four times in the second half of 'twenty 'twenty four demonstrating that both zorba as effectiveness.
Speaker Change: And room for further improvement.
Ajit: The additional revenue which ZOBA deployment recommendations have generated for Marti in the first year following the acquisition has already returned more than twice our acquisition cost. Our future focus will be to scale vehicles deployed with ZOBOT from around 80% at present to 100% of deployments and to apply additional features like logistics vehicle routing recommendations on the field.
Speaker Change: The additional revenue with Zorba deployment recommendations have generate for Martin in the first year. Following the acquisition has already returned more than twice of our acquisition cost.
Speaker Change: Our future focus will be to scale equals deploys its all about forming around 80% at present to 100% of the appointments and top line. It's additional features like logistics vehicle routing recommendations on the field.
Ajit: throughout last year, 2024.
Speaker Change: Well last year 'twenty 'twenty four.
Ajit: The behavior of our riders continues to support our decision to offer multiple transportation modalities over a single app. We believe, and the data continues to show, that this multi-modal oxidation is aligned with viral traffic. 70% of our e-bikes, 84% of our e-moped, 43% of our car hailing, and 82% of our motorcycle hailing riders use these modalities after previously being introduced to Martha by using another modality. Are existing modalities served as an excellent cost? pre-rider acquisition channel for new modalities. Furthermore, 68% of our e-bike and 77% of our e-moped. 26% of our car hailing and 81% of our motorcycle hailing riders subsequently used other Marta modalities after their first e-bike, e-moped, car hailing, and motorcycle hailing rides, respectively.
Speaker Change: The behavior of our writers continues to support our decision to offer multiple transportation modality over a single App.
Speaker Change: We believe and the data continues to show that this multimodal off.
Speaker Change: Align with viral infections.
Speaker Change: 70% of our E bike, 84% of our in market, 43% of our car hailing and 82% of our motorcycle hitting buyers use. These modalities after previously being introduced to Martha by using other modalities.
Speaker Change: Our existing without who served as an excellent cost.
Speaker Change: The rider acquisition channel for our new modalities. Furthermore.
Speaker Change: The 8% of our E bike and 77% of our email bed, 26% of our car hailing and 81% of our motorcycle here writers sub second we use other mark to modalities. After their first E bike E mail that car hailing and motorcycle hailing rides respectively.
Ajit: These data points all show an overwhelming wider preference for multi-modal transportation services. serving multimodal riders. also creates economic benefits for markets. Rides per rider is 4.1 times higher, and revenue per rider is 3.7 times higher for our multimodal riders than for our single modality. These heuristics reinforce our decision to invest in the balanced growth of our multimodal services.
Speaker Change: These data points, all show, an overwhelming rider preference or multimodal transportation surface.
Speaker Change: Serving multi modal riders.
Speaker Change: Also creates economic benefits for Martin.
Speaker Change: Right for Ryder is four one times higher.
Speaker Change: Zebedee providers 3.7 times higher for multimodal writers that are done for our single modality lives. These statistics reinforce our decision to invest in the balanced growth of our multimodal services I'd now like to turn it over to my partner John could present, our financials. Thank you.
Jean-Claude: I'd now like to turn it over to my partner, Jean-Claude, to present our financials. Thank you. In aggregate, we generated revenue of $18.7 million for the year, exceeding our 2020-2024 revenue guidance of $16.6 million by $2.1 million. This was primarily due to the monetization of our ride hailing service, which began in October 2024. Also, we generated negative $19.3 million of adjusted EBITDA for the year, exceeding our 2024 adjusted EBITDA guidance of negative $22.5 million by $3.2 million. This was driven by a combination of factors, including the launch of the monetization of our ride hailing service, but also the greater than expected operational efficiencies that we produced in our two wheeled electric vehicle service.
Rod Petrik: Thank you Rod Petrik.
Rod Petrik: We generated revenue of $18 $7 million for the year exceeding our 2020 or revenue guidance of $16 $6 million by $2 $1 billion. This was primarily due to the monetization of our ride hailing service, which began in October 2024.
Rod Petrik: Also we generated negative $19 $3 million of adjusted EBITDA for the year exceeding our 2024, adjusted EBITDA guidance of negative $22 $5 million by $3 $2 million.
Rod Petrik: This was driven by a combination of factors, including the launch of the monetization of our ride hailing service, but also the greater than expected operational efficiencies that we produced in our two wheel electric vehicle service.
Jean-Claude: Looking at our KPIs, we increased our number of total rides from 21.9 million in 2023 to 31.7 million in 2024. We also increased our number of unique riders who used our services at least once during the year from 1.8 million to 2.1 million people. Both increases were driven by an increase in ride hailing rides and ride Our number of unique ride hailing riders that have used the service since its launch increased from about half a million at the end of 23 to 1.66 million at the end of 24, while the number of registered drivers increased from 107,000 to 262,000 during the same time.
Rod Petrik: Looking at our Kpis, we increased our number of total rides from $21 9 million in 2023 to $31 7 million in 2024.
Rod Petrik: We also increased our number of unique riders, who used our services at least once during the year from $1 8 million to $2 1 million people.
Rod Petrik: Both increases were driven by an increase in ride hailing rides and riders.
Rod Petrik: Our number of unique ride hailing riders that have used the service since its launch increased from about half a million at the end of 'twenty three to $1 66 million at the end of 'twenty four while the number of registered drivers decreased from 107000 to 262000 during the same time period.
Jean-Claude: As a result of the gradual decommissioning of our two-wheeled electric vehicle fleet, our number of average daily two-wheeled electric vehicles deployed fell from 34,600 in 2023 to 32,600 in 2024. We completed the year with $18.7 million of revenue, down from $20 million in 2023, primarily attributable to a decreased number of two-wheeled electric vehicles on the field and partially offset by ride-hailing monetization beginning in October. We reduced our cost of revenues by 11% from $24.1 million in 2023 to $21.5 million in 2024 as a result of decreasing depreciation and amortization expense and the operational efficiencies that I previously described.
Rod Petrik: As a result of the gradual decommissioning of our two wheel electric vehicle fleet. Our number of average daily two wheel electric vehicles deployed fell from 40 $34 6000 in 2023 to $32 6000 in 2024.
Rod Petrik: We completed the year with $18 $7 million of revenue down from $20 million in 2023, primarily.
Rod Petrik: Attributable to a decreased number of two wheel electric vehicles on the field and partially offset by ride hailing monetization beginning in October.
Rod Petrik: We reduced our cost of revenues by 11% from $24 $1 million in 2023 to 21 $5 million in 2024, as a result of decreasing depreciation and amortization expense and the operational efficiencies that I previously described.
Jean-Claude: These projects included optimizing our field staff, repair and maintenance staff, and logistics vehicle counts, launching on-field repairs, and increasing our usage of refurbished electronic and spare parts.
<unk> included optimizing our field staff, who kind of maintenance staff and logistics vehicle counts launching on field repairs and increasing our use of jabil furbished electronic and spare parts.
Jean-Claude: Our general and administrative expenses increased by 226% from $15.1 million in 2023 to $49.2 million in 2024. However, the vast majority of this increase was as a result of increased share-based compensation expense of $37.2 million. in the absence of share-based compensation expense. Cash-based general and administrative expenses decreased from $13.1 million in 2023 to $12.1 million in 2024. This was driven by team efficiency and the streamlining of public company advisory expenses. As a result, our adjusted EBITDA came in at negative $19.3 million in 2024, 8.9% lower compared to adjusted EBITDA of negative $17.7 million in 2023.
Rod Petrik: Our general and administrative expenses increased by 226% from $15 $1 million in 2023% to $49 $2 million in 2024.
Rod Petrik: However, the.
Rod Petrik: Fast majority of this increase was that the result of increased share based compensation expense of $37 $2 million and the absence of share based compensation expense.
Rod Petrik: Cash based general and administrative expenses decreased from $13 $1 million in 2023 to $12 $1 million in 2024.
Rod Petrik: This was driven by team efficiencies and streamlining the public company advisory expenses.
Rod Petrik: As a result, our adjusted EBITDA came in at negative $19 $3 million in 2020, 489% lower compared to adjusted EBITDA of negative $17 $7 million in 2023.
Jean-Claude: This was driven primarily by more aggressive investments in our ride hailing service prior to the commencement of monetization in the fourth quarter.
Rod Petrik: This was driven primarily by more aggressive investments in our ride hailing service prior to the commencement of monetization in the fourth quarter.
Rod Petrik: Yeah.
Jean-Claude: Transition to ride hailing monetization mark the key inflection point for our growth and profitability. We aim to almost double our annual revenue from $18.7 million in 2024 to $34 million in 2025, and to achieve positive EBITDA with a projected $22.3 million improvement. Our 2025 guidance excludes any incremental investments that we may choose to make to support the continued wide hailing growth during the year.
Rod Petrik: The transition to ride hailing monetization marks a key inflection point for our growth and profitability.
Rod Petrik: 25.
Rod Petrik: We aimed to almost double our annual revenue from $18 $7 million in 2024% to $34 million in 2025.
Rod Petrik: And to achieve positive EBITDA with a projected $22 $3 million.
Rod Petrik: Our 2025 guidance excludes any incremental investments that we may choose to make to support the continued ride hailing growth during the year.
Jean-Claude: Finally, our share repurchase program, which we announced in January of 2024 and which enables us to purchase up to three and a half million dollars of our ordinary shares up to a price per share of six dollars through October 9th, 2025 remains ongoing. Thank you for participating today and listening to our performance and our future plans.
Rod Petrik: Finally, our share repurchase program, which we announced in January 2024, and which enables us to purchase up to $5 million of our ordinary shares up to a price per share of $6. Three October 19, 2025 remains ongoing.
Rod Petrik: Thank you for participating today and listening to our performance and our future plans, we'd be glad to address any questions you may have.
Jean-Claude: We'd be glad to address any questions you may have. Thank you.
Rod Petrik: Thank you.
Operator: The floor is now open for questions. If you'd like to ask a question, please press star 1 on your telephone keypad at this time. A confirmation tone will indicate your location. press star 2 if you would like to remove your question from the queue.
Rod Petrik: Now open for questions. If he would like to ask a question. Please press star one on your telephone keypad at this time.
Rod Petrik: Confirmation tone will indicate your line is in the question queue. You May press star two if he would like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up the handset before pressing the star key again Thats Star One to register a question at this time.
Operator: For participants using speaker equipment... Again, that's star 1 to register.
Jack: Our first question. Naughton of Cantor Fitzgerald, please go ahead. Hey guys, this is Jack on for Deepak. Thanks for taking our questions. I've got two for you.
Rod Petrik: Our first question is coming from Deepak.
Nancy: Nancy as Marvin of Cantor Fitzgerald. Please go ahead.
Nancy: Hey, guys. This is Jack on for Deepak, Thanks for taking our questions.
Nancy: I've got two for you first can.
Jack: First, can you talk a little bit more about how the dynamic pricing has been helping the ride-hailing monetization model since launch? Kind of where are you on the overall monetization journey and sort of what have been the early signs of success you're seeing there?
Nancy: Can you talk a little bit more about how the dynamic pricing has been helping the ride hailing monetization models since launch.
Nancy: Where are you on the overall monetization journey and sort of would have been the early signs of success Youre seeing there and then secondly on the driver supply.
Ajit: And then secondly, on the driver supply, kind of how are you seeing success getting more drivers on the and then how much runway do you have to continue growing this metric? I've basically seen nice growth thus far to date. Thank you. Sure. Thank you for the question. Esther, you asked two questions, so I'll answer the first one first. The dynamic pricing algorithm actually helps increase our match rate. because ride-hailing is not a business with constant demand nor supply. On a Friday night when it's raining and the weather's nice, you know, the temperature is not too cold, after work the demand is...
Nancy: Kind of how are you seeing success getting more drivers on the platform and then how much runway do you have to continue growing this metric obviously seen nice growth thus far to date. Thank you.
Nancy: Sure.
Nancy: Thank you for the question.
Nancy: As for your first one.
Nancy: You asked two questions. So I'll answer the first one first the dynamic pricing algorithm actually helps.
Nancy: He's on metrics because ride hailing is not a business that constant demand nor supply.
Nancy: A Friday night, when it's raining.
Nancy: And the weather is nice and all.
Nancy: The temperatures not too cold.
Nancy: Apt to work the demand is.
Ajit: The highest it can possibly be, but on a Tuesday, if it's cold and early morning hours, the demand is not just there, right? If you don't adjust your pricing based on demand and preferences of the drivers and riders, you are not going to get as many trips as you can. Your match rates will be low because if the prices are too low, your drivers won't accept it. But if the prices are too high, your riders will not want to take the trip. So it is a constant battle to measure every metric possible that's out there.
Nancy: The highest it can possibly be but on a Tuesday, if it's cold and the early morning hours. The demand is not just there.
Nancy: Adjust your pricing based on demand and preferences of the drivers and riders you are not going to get as many trips as you can and match rates will be low because if the prices are too low you drivers won't accept it but at the price. They are too high you're riders will not want to take the trip. So it is a constant.
Nancy: To measure every metric possible that's out there.
Ajit: Be it personal or traffic-related, weather-related, specific events going on in the city, time of year, there are numerous other factors that we look at constantly and adjust our pricing on a, not a citywide basis, but on small locations. So the pricing algorithm works differently for each neighborhood, sometimes each street within a neighborhood. So we are constantly working on it and we have seen tremendous improvements in our match rates because we were able to price things as well as we could.
Nancy: Be it personal or traffic.
Nancy: Traffic related weather related.
Nancy: Specific events going on in the city time of year.
Nancy: There are numerous other factors that we look at constantly and adjust our pricing on a I'm not a citywide basis, but on a small.
Nancy: Locations for the pricing algorithm works differently for each neighborhood.
Nancy: Each E Street within a neighborhood. So we are constantly working on it and we have seen tremendous improvements in our match rates, because we were being able to price things.
Nancy: As well as we could.
Ajit: And in terms of our rider-to-driver growth, one key factor here is, I mean, ride-hailing did not exist in Turkey prior to our launch. So, I, you know, sometimes use this analogy and say, it is akin to us selling water in the desert. Istanbul is starved for tech-enabled urban transportation, taxis are just in terms of quality and quantity simply abysmal, the level of service is unacceptable, and we are selling something that's economical, efficient, and easy to use. So, that's why people tend to like us a lot. This obviously reflects on the demand side, which hence then reflects into the supply side.
Nancy: And in terms of a rider to driver growth one key factor here is I mean.
Nancy: Ride hailing did not exist in Turkey prior to our launch so I you know sometimes use the analogy and say.
Nancy: It is akin to a selling water in the desert Istanbul is starved.
Nancy: For Tech enabled urban transportation taxes are.
Nancy: Just in terms of quality and quantity.
Nancy: Abysmal the level of service is unacceptable and we are selling something that's economical efficient and easy to use. So that's why people tend to like it a lot. This obviously reflects on the demand side, which hence then reflect into the supply side. So I don't know, where this will end, but I still.
Ajit: So, I don't know where this will end, but I still see very strong increase in our driver applications, and, you know, as years go by, those numbers are gonna reach very, very high figures.
Nancy: T. They shrunk.
Nancy: The increase in our driver application are men.
Nancy: Years ago by those numbers are going to reach.
Nancy: They are very high figures are we also seeing increased.
Ajit: We're also seeing increased. Thank you.
Nancy: Actavis in our already registered drivers so our cohorts suggest that people who have signed up to the platform once they start using it they start using them more as drivers show improvements in the already signed up drivers is a critical.
Nancy: Factor for totaled trip costs as well thank you.
Nancy: Thank you.
Speaker Change: Thank you. The next question is coming from Rohit Kulkarni of Roth Capital. Please go ahead.
Kulkarni: The next question is coming.
Kulkarni: Kulkarni of Roth Capital, please go ahead. Thank you. Congrats on the success in ride-sharing so far.
Nancy: Thank you.
Speaker Change: Congrats on the success in the ride sharing so far I guess just maybe.
Kulkarni: I guess just maybe at a high level, how do you think the competitive environment has evolved over the last seven, eight months? You seem to be the market leader in the markets over there, but how do you anticipate that to evolve over the next year or so as probably the market grows, your success and your traction improves? And perhaps talk about how do you contemplate that in the near future?
Speaker Change: Maybe at a high level, how do you think the competitive environment has evolved over the last seven eight months.
Speaker Change: You seem to be the market leader in.
Speaker Change: The markets over there, but Oh do you anticipate that evolve over the next year or so.
Speaker Change: So that's broadly the market goes yours fixes and your traction and bullish.
Speaker Change: So I'll talk about how do you.
Speaker Change: Contemplate about.
Speaker Change: Sure.
Ajit: Great question. Thank you for that.
Speaker Change: Great question. Thank you for that first of all it is.
Ajit: First of all, as you know, we mentioned we are the first mover here. And the first more advantage in a double-sided marketplace business model like ride hailing is a fairly large advantage. The larger you are, the more your competitors arrive. The local players who have the personal advantage have always somehow kept the that a lot of local expertise and that we believe is the magical formula to win the highest market share in the market.
Speaker Change: You know we.
Speaker Change: We mentioned we are the first mover here.
Speaker Change: And the first mover advantage in a double sided marketplaces. This model like ride hailing is.
Speaker Change: A fairly large advantage the larger you are manual competitors arrive.
Speaker Change: Higher steady state market share you will have so that's why you find everything we can.
Grow as fast as possible before.
Speaker Change: Before any type of competition right that being said these market the size of Turkey generally tend to be either duopolies or all the got pleased with.
Speaker Change: Three to four players at Max at a maximum.
Speaker Change: And historically.
Speaker Change: And you'll get other similar economy and the G 20.
Speaker Change: You see that the local players will have the first mover advantage had always somehow kept the.
Speaker Change:
Speaker Change: Better position.
Speaker Change: We are not afraid of competition, we welcome it.
Speaker Change: Ready for it if it emerges eventually will be the dominant player with a tremendous first mover advantage and with a lot of local expertise and that we believe is the magical formula to win the highest market share in the market.
Ajit: Okay. Great.
Speaker Change: Okay, great and if I could ask one more oh, what is the status of kind of ridesharing and.
Ajit: And if I could ask one more, what is the state of kind of right-sharing regulatory backdrop over there in terms of where are you with regards to kind of the various rules and regulations that a right-sharing marketplace like yours needs to adopt, and are there any specific kind of catalysts or other events that could essentially make operating a right-sharing marketplace much more structured in a manner? Sure, it's also a very good question. So first of all, ride hailing not being One of the main urban transportation solutions in a country like Turkey is unthinkable. The only countries I believe left without a proper ride-hailing system are North Korea, the Congo, and Eritrea.
Speaker Change: Backdrop over there in terms of that.
Speaker Change: In regards to.
Speaker Change: Goodness.
Speaker Change: And the various rules and regulations that are.
Speaker Change: Shifting marketplace like yours need to adopt and Oh Dear to me.
Speaker Change: Perfect.
Speaker Change: [noise] catalysts or other events.
Speaker Change: Liquid essentially I'll make operating a ridesharing marketplace much more.
Speaker Change: <unk> structured in a message.
Speaker Change: Sure closed out a very good point.
Speaker Change: Great question.
Speaker Change: So first of all.
Speaker Change: Ride hailing not being.
Speaker Change: One of the main urban transportation solutions in a country like Turkey is unthinkable the only countries I'd be left without a proper ride hailing system are.
Speaker Change: North Korea.
Speaker Change: The Congo and air travel.
Speaker Change: And.
Ajit: that obviously shows a global trend where, you know, over 190 countries have this system in place with regulation. The regulation could come at three separate levels, depending on the country. So it could be, first of all, on the local level. The cities, the city municipalities, city councils could regulate ride-hailing individually with their own rules, and it could change from place to place, city to city. There could be, if the country has a federal system, like Germany, per se, there could be federal laws that govern the ride-hailing market. Or in other countries, it could be national.
Speaker Change: That obviously shows the global trend, where you know over 190 countries have the system in place with regulation.
Speaker Change: The regulation could come at three separate levels, depending on the country. So it could be first of all on the local level the cities the city municipalities City Council's could regulate ride hailing individually.
Speaker Change: With their own rules and it could change from place to place city facility that could be if the country is a federal system My Germany per se there could be federal laws that govern the ride hailing market or in other countries it could be national.
Ajit: So there are three tiers of regulation that's possible and that's out there. Right now, in Turkey, we're working on getting the full regulation in place to be able to operate freely and successfully in this market. But what needs to be kept in mind is that Turkey is playing catch-up to the rest of the world when it comes to Rite-Aid. We believe with almost 100% certainty that this market with the largest city in Europe and with the highest population in Europe will have ride hailing. And we believe that the local player who's sort of forced its way in and forged the entire business from scratch will be the key component of this entire equation.
Speaker Change: So there are key tiers of regulation that's possible that's out there right now in Turkey, we were working on.
Speaker Change: Getting the full regulation in place.
Speaker Change: Be able to operate freely and successfully in this market, but what needs to be kept in mind is that Turkey is playing catch up to the rest of the world when it comes to a variety of things.
Speaker Change: We believe with almost 100% certainty that this market.
Speaker Change: With the largest city in Europe, and it's the highest population the Europe will have ride hailing and we believe that the local player who's sort of.
Speaker Change: Fourth its way in and towards the entire business from scratch will be the key.
Speaker Change: Key component of the entire equation.
Ajit: Okay. Great. Thank you. That's very helpful. Thank you.
Speaker Change: Okay, great. Thank you that's very helpful.
Speaker Change: Thank you.
Po Fratt: The next question is coming from Po Fratt of Alliance Global Partners. Please go ahead. Hi, good afternoon. It's just, have your earnings been released, is there a press release available? I can't find anything, so I'm flying a little bit blind. Yes, they have been released. If you look at our IR website, ir.marta.tech, you should be able to see it. Yeah, for some reason, Jan Coot, I'm on there and I can't find anything. I'll refresh, but nonetheless, I do have a couple of questions.
Speaker Change: The next question is coming from Poe <unk> of Alliance Global Partners. Please go ahead.
Speaker Change: Hi, good afternoon.
Speaker Change: If you have your earnings has been released as their press release available.
Speaker Change: I can't find anything so I'm flying a little bit blind.
Speaker Change: Yes, they have been leased.
Speaker Change: If you look at our IR website, IR Dot Marta Dot tech.
Speaker Change: You should be able to see it.
Speaker Change: Yeah, it's for some reason Jan could them on there and I can't find anything a REIT.
Speaker Change: Fresh, but nonetheless I do have a couple of questions. You talked about you know your your targets for 2025 revenue of $34 million improve.
Po Fratt: You talked about, you know, your targets for 2025, a revenue of $34 million, improving adjusted EBITDA by, you know, about $22 million to get to, you know, positive adjusted EBITDA. Can you talk about some of the assumptions in there as far as, you know, either your cash GNA, your take rate, you know, if you could just sort of frame some of the assumptions that are in your embedded in your guidance, that would be really helpful. Of course, so the guidance first, it is guidance with respect to continued operations in our existing city. So the four cities that we currently operate in Istanbul, Ankara, the capital of Turkey, Antalya and Izmir, it assumes continued operations in those existing cities.
Speaker Change: Improving adjusted EBITDA by about 22 million to get to positive.
Speaker Change: Positive adjusted EBITA can you talk about some of the assumptions in there as far as you know either your cash G&A your take rate.
Speaker Change: If you could just sort of frame some of the assumptions that are in your embedded in your guidance that would be really helpful.
Speaker Change: Of course, so the guidance first it is guidance with respect to continued operations at our existing cities.
Speaker Change: Four cities that we currently operate in Istanbul.
Speaker Change: Cut out the capital with Turkey.
Speaker Change: And it assumes continued operations in those existing cities. It does not assume any other new city launches.
Jean-Claude: It does not assume any other new city launches. The second important assumption in those figures is also that it assumes a similarly sized GNA team to the GNA team that we had throughout the year 2024. And therefore, no incremental increases to the size of the team that we may choose to make in order to increase the preparedness of the company for a greater scale operation are included.
Speaker Change: The second important assumption in those.
Speaker Change: Figures is also that it assumes a similarly sized G&A team to the G&A team that we had throughout the year 2024.
Speaker Change: And therefore, no incremental increases to the size of the team that we may choose to make in order to increase the preparedness of the company for a greater scale operation are included those are the two main assumptions. So what that means is that it.
Jean-Claude: Those are the two main assumptions. So what that means is that if we continue our ride hailing business. With a similarly sized GNA team and in our existing cities, we have a very healthy economic profile in the existing business.
Speaker Change: If we continue our ride hailing business.
Speaker Change: Similarly sized G&A team and in our existing cities, we have a very healthy economic profile and the existing business. We may choose a force to throughout the year.
Jean-Claude: We may choose, of course, to, throughout the year, expand the scale of our operations by launching new cities as well as by preparing our team to operate a much larger scale marketplace. You asked about our take rates. Our take rates, given that we just started monetizing in October of 2024, so it's been, you know, close to about half a year, we gradually will be increasing our take rates over time. We started with lower take rates relative to global benchmarks and the assumptions for the 2025 financial performance also assume that we continue to operate with the same take rates that we currently have in place, which remain in the single digits.
Speaker Change: Expand the scale of our operations by launching new cities as well as by preparing our team to operate.
Speaker Change: Operate a much larger scale our marketplace.
Speaker Change: You asked about our take rates are or take rates given that we just started monetizing in October of 2024. So it's been you know close to about.
Speaker Change: Half a year.
Speaker Change: We gradually we'll be increasing our take rates over time.
Speaker Change: We started with lower take rates relative to global benchmarks.
Speaker Change: The assumptions for the 2025 financial performance.
Speaker Change: It also assumes that.
Speaker Change: We continue to operate with the same take rates that we currently have in place which are remain in the single digits and therefore that is the additional potential upside.
Jean-Claude: And therefore, that is an additional potential upside is when we choose to increase the effective take rates that we operate with. Great. Jen-Ku, could I narrow the range as far as single digit? Can you, at the upper end of the single digit range, middle, sort of where are you as far as current take rates? And then, where do you think you would exit 2025 as far as a take rate? It's going to be a gradual process, and we're going to be taking multiple parameters into account in making those decisions. So, those parameters include the clear tradeoff between sort of growth and take rates.
Speaker Change: It is when we choose to increase the effective take rate that we operate with.
Speaker Change: Great Jenkins could I narrowed the ranchers as far as single digit can you.
Speaker Change: Or ended the single digit range metal sort of where are you as far as current take rates and then where do you think you would exit 2025 as far as the take rate.
Speaker Change: Yeah.
Speaker Change: It's going to be a gradual.
Speaker Change: Process, and we're going to be taking multiple parameters into account in making those decisions. So those parameters include the clear trade off between sort of growth and take rates. They take into account the competitive environment in our market the potential anticipation of a regulatory.
Jean-Claude: They take into account the competitive environment in the market, the potential anticipation of regulatory developments that we discussed. There are to pinpoint a specific figure for the end of the year. What we will be doing is... Taking all those parameters into account and whatever is necessary to optimize our current positioning in light of what we want to achieve, that's what's going to determine the take rate, which remains in the single digits, although it has increased from very low single digits when we initially launched. Okay.
Speaker Change: It meant that we discussed there are multiple parameters that we look at and therefore.
Speaker Change: Very difficult to pinpoint a specific figure for the end of the year.
Speaker Change: What we will be doing is.
Speaker Change: Taking all of those parameters into account and whatever is necessary to optimize.
Speaker Change: Our current positioning in light of what we wanted to achieve that's what's going to determine the take rate, which remains in the single digits. Although it has increased from a very low single digits. When we initially launched.
Speaker Change: Okay, and then Turkey has been on the in the news as far as at the national level from a political standpoint.
Po Fratt: And then Turkey has been on the, you know, in the news as far as at the national level from a political standpoint.
Ajit: Are there any potential changes that you see in the political landscape that might impact Mardi in 2025? I guess I'll take this one. So first of all, let's, you know, let me make something very clear. For those who follow Turkey closely, will know this or know the history of Turkey will know this. But Turkey is a place where there's. mild but constant political turmoil. It's been that way for the past 150 years. It's normal, it's a part of this country's DNA, but keep in mind that this is a very vibrant society of 85 million people, the largest in Europe, with a city of 20 million people in Istanbul, which again is the largest in Europe.
Speaker Change: Are there any potential changes that you see in the political landscape that might impact Marty in 2025.
Speaker Change: Hmm.
Speaker Change: Well I guess I'll take this one so first of all lets you know.
Speaker Change: Let me make something very clear.
Speaker Change: Those who follow Turkey closely will note. That's all know the history of Turkey will notice, but Turkey is a.
Speaker Change: Place where does.
Speaker Change: Mild the constant political turmoil and it's been that way for the past 50 years.
Speaker Change: Normal it's a part of this country's DNA.
Speaker Change: But keep in mind that if any biases in society of 85 million people the largest in Europe with a city of 20 million people in Istanbul.
Speaker Change: Which again is the largest in Europe, Arctic economies solid and sound.
Ajit: Our economy is solid and sound. And our growth rates historically have been pretty impressive. So I don't foresee this country experiencing any major trouble in the coming years that could potentially affect our company. But specifically about ride hailing, come hell or high water, people still need to move around cities, whatever happens. So I believe our business model is ironclad against any type of negative situation. And Turkey, a country that has never defaulted on its sovereign debt ever, will not have the level of turmoil that could affect a company of our size.
Speaker Change: And our growth rate historically has been a pretty.
Speaker Change: With the impressive so I don't foresee this country experiencing any major.
Speaker Change: Trouble in the coming years that could potentially affect our company, but specifically about ride hailing come hell or high water people still need to move around cities whatever happens. So I believe our business model is now iron clad against any type of a neck.
Speaker Change: Situation.
Speaker Change: Turkey, a country that has never defaulted on a sovereign debt ever.
Speaker Change: We will not have the level of turmoil that could affect our company of our size.
Po Fratt: Great.
Speaker Change: Great and then one last one if I may.
Jean-Claude: And then one last one, if I may, you know, the. You re-upped or you changed the stock repurchase program at the end of March. Can you just highlight whether you've been active either in the last couple of weeks of March or into April as far as buying stock back? So, we're very opportunistic with the repurchases that we make. We have a clear belief as to the, you know... potential market shares.
The units you.
Speaker Change: You bring up or have you changed the.
Speaker Change: Stock repurchase program through the end of March can you just highlight whether you've been active in either in the last couple of weeks of March or into April as far as buying stock back.
Speaker Change: Yeah.
Speaker Change: So we're very opportunistic.
Speaker Change: With the repurchases that we make.
Speaker Change: We have a clear belief as to the.
Speaker Change: Potential maximum value of the shares and therefore, the stock repurchase plan has six dollar.
Speaker Change: Sure cap and we're going to continue to throughout the year.
Speaker Change: <unk> the stock price, which currently I think is it is significantly.
Speaker Change: Lower than that and therefore, we're going to continue to be opportunistic as the share repurchases.
Jean-Claude: Okay, great.
Speaker Change: Okay great.
Po Fratt: It looks like the press release just hit your website, so I appreciate that. Thanks a lot, Jankoot. Thank you.
Speaker Change: It looks like the press release just hit your website. So I appreciate that thanks, a lot Jan could.
Speaker Change: Thank you.
Speaker Change: Thank you. The next question is coming from Theodore O'neill of Litchfield Hills Research. Please go ahead.
Sidharth: Yeah, hi, thanks and congratulations on the Revenue is just EBITDA. I'm following up on Poe's question here on your assumption that there's no... for writing.
Theodore O'Neill: Yeah, Hi, thanks, and congratulations on the on the.
Speaker Change: Revenue and adjusted EBITDA.
Speaker Change: I'm following up on Poe's question here on Thier.
Speaker Change: Assumption that there's no.
Speaker Change: Spansion.
Speaker Change: On the existing cities for the for ride hailing in.
Sidharth: In your assumptions for this year, does that mean there won't be any expansion? Um, First of all, we are running pilots all the time. So the cities names are the ones we are operational at scale, but we're constantly testing and researching and doing R&D into the market in multiple other cities. So 2025 we expect is going to be an active year. As I've said before, ride hailing is something new to the Turkish market and obviously what is happening here is akin to what has happened in any other market when ride hailing was first launched. You go to Europe, even in the smallest cities of Germany, where, you know, less than 50,000 people live, you see large ride-hailing operators operate profitably.
Speaker Change: In your assumptions for this year does that mean that there won't be any any expansion.
Speaker Change:
Speaker Change: First of all we're running pilots all the time.
Speaker Change: So the city's named are the ones that are operational at scale.
Speaker Change: We're constantly testing in <unk>.
Speaker Change: Researching and doing R&D into the market and multiple other piece. So 2025, we expect is going to be an active year.
Speaker Change: As I've said before ride hailing is.
Speaker Change: Something new.
Speaker Change: Turkish market and obviously what is happening here is akin to what has happened in any other market when ride hailing was first launched.
Speaker Change: You go to Europe, even in the smallest cities of Germany, where you know less than 50000 people lift you see large ride hailing operators operate profitably. So we see tremendous potential and opportunity in the smaller cities of Turkey, and we will be constantly looking for those opportunities and doing pilot.
Ajit: So we see tremendous potential and opportunity in the smaller cities of Turkey. And we will be constantly looking for those opportunities and doing pilots. And when we are sure we're going to be launching those cities one by one.
Speaker Change: And let me assure we're gonna be launching those cities one by one.
Jean-Claude: Okay, that makes sense. And your comments about the G and A team staying the same size, is that because as you de-emphasize the two wheel and focus on right hailing, it allows you to keep the head count approximately constant? That's right. That's one of the contributing factors. So in line with the emphasis on our two-wheeled electric vehicle operations, as evidenced by the decrease, year-over-year decrease in average daily vehicles deployed, that does mean that we need less central resources in order to support that operation, and therefore even the current forecast. They represent a similarly sized GNA team in 2024 as in 2025, but the distribution of that team, yes, does mean that two-wheeled electric vehicles are getting smaller, ride hailing is getting larger, but they do not represent increasing the total size of the team across the country.
Speaker Change: Okay that makes sense and your comments about the G&A team staying the same size is that because as you deemphasize the two wheel and focus on ride hailing. It allows you to keep the head count approximately constant.
Speaker Change: John that's right and I think one of the.
Speaker Change: Contributing that's right that's one of the contributing factors so in line with Ah.
Speaker Change: The emphasis on our two wheel electric vehicle operations.
Speaker Change: As evidenced by the decrease year over year decrease in average daily vehicles deployed.
Speaker Change: That does mean that we need less central resources in order to support that operation.
Speaker Change: Therefore, even the current forecasts.
Speaker Change: They represent a similarly sized G&A team in 2024.
Speaker Change: As in 2025, but the distribution of that team. Yes does mean that you know to be electric vehicles are getting smaller ride hailing is getting larger.
Speaker Change: They do not represent increasing the total size.
Speaker Change: The team across the company.
Speaker Change: Okay. Thanks very much.
Operator: Okay, thanks very much. Thank you. Once again, that's star 1 if you'd like to register a question.
Speaker Change: Thank you once again Thats star one if you'd like to register a question.
Sidharth: The next question is coming from Sidharth. Saldar of Crescent Enterprises. Hey, John. Good. Hey, Alfred.
Speaker Change: Question is coming from Siddharth, how about that.
Siddharth: Of Crescent Enterprises. Please go ahead.
Siddharth: Hey, John currently out for thank you for the presentation.
Sidharth: Thanks for the I have a couple of questions.
Speaker Change: Couple of questions.
Speaker Change: Just it'd be helpful to understand sort of your monthly in cash burn until data and cash position.
Jean-Claude: be helpful to understand sort of, you know, your monthly and cash flow until dating cash positions you have today and how you plan to, I guess, if they plan to raise additional capital for it and finance of the expansion for 25 or how to sort of compensate that with the increase in the take rate. So the cash position of the company as disclosed in our. financials was roughly $5 million at the end of the year, and we continue to raise as and where necessary in order to support the growth of the company. Okay, and so your monthly burn guidance for the current future year?
Speaker Change: Today, and how would you plan to I guess, if it plans to raise additional capital for it and finance the.
Speaker Change: Expansion for 25 or hobby cognizant that with the increase in the take rates.
Speaker Change: So the cash position of the company as disclosed in.
Speaker Change: Financials was roughly $5 million at the end of the year and we continue to raise as them where necessary in order to support the growth of the company.
Speaker Change: Okay, and so your monthly burn.
Speaker Change: Items for the future here.
Jean-Claude: So our forecast for 2025 is for $3 million in EBITDA, excluding investments that we may choose to make to accelerate the growth of our ride-hailing business across the two dimensions that I shared. So currently, the forecast does not include any new city launches, and secondly, it does not include an increase in the size of our G&A team.
Speaker Change: So our forecast for 2025 is for $3 million in EBITDA, excluding investments that we may choose to make to accelerate the growth of our ride hailing business across the two dimensions that I share. So currently the forecast do not include any new city launches and secondly, it does not include increase in the size.
Speaker Change: Our G&A team.
Speaker Change: Yeah.
Jean-Claude: Okay, and then do you plan for additional sort of capex for the two-wheeler refurbishment business, or is that sort of prioritized to focus on the ride-hailing element of it? And for the ride-hailing aspect, I mean, you've introduced further investments that may sort of alter the guidance for 3Million Nipidon. So, regarding the 2 wheeled electric vehicles, that's right that we're not going to be evaluating any increases in the scale of our 2 wheeled electric vehicle operations prior to the summer of 2026. so that will not be made in 2025. With regards to the guidance, if we were to choose to make some of the investments that we make, that we may make, those investments do have the ability to not only, of course, contribute to the expense line, but also potentially contribute to the revenue line of our 2025 forecast.
Speaker Change: Okay, and then do you plan for additional sort of Capex for the two Wheeler refurbishment does this or does that sort of prioritizing our focus on the ride hailing element of it and so the ride hailing.
Speaker Change: Aspect.
Speaker Change: Further investments that meet sort of altered the guidance.
Speaker Change: 3 million EBITDA.
Speaker Change: Yeah.
Speaker Change: So regarding the two wheel electric vehicles, that's right that we're not gonna be evaluating any increases in the scale of our two wheel electric vehicle operations prior to the summer of 2026.
Speaker Change: So that will not be made in 2025.
Speaker Change: With regards to the guidance, if we weren't to choose to make some of the investments.
Speaker Change: But we make that we may make those investments do have the ability to not only of course.
Speaker Change: It contributes to the expense line, but also potentially contribute to the revenue line of our 2025 forecasts.
Ajit: Maybe let me add some color as well. Look, as a CEO, what I'm seeing when I look at our dashboard and our growth figures are just, you know. Amazing how fast Turkey is adapting to this. Globally old, but locally new, tech-enabled transportation solution. So any money spent in our ride-hailing operations, be it expansion, be it marketing, be it any other thing. seems to have unbelievable ROI going forward affecting our future performance in the next few years. Okay, I appreciate the question. I'll update your response, thank you.
Speaker Change: Maybe let me add some color as well.
Speaker Change: The as the CEO, what I'm seeing when I look at our dashboard and our growth figures.
Speaker Change: Or just you know amaze.
Speaker Change: Amazing how fast Turkey is adapting to this glow.
Speaker Change: Globally old locally new Tech enabled transportation solution, so any money spent.
Speaker Change: In our ride hailing operations he'd expansion deep marketing need any other thing.
Speaker Change: It seems to have unbelievable ROI.
Speaker Change: Going forward.
Speaker Change: Affecting our future performance in the next two years.
Speaker Change: Okay.
Speaker Change: A quick update on computer I think just one last question from my end with the increase of the take rate from single low single digits to high single digits. So the impact on the demand that you have seen that the drivers because as you mentioned in your volume in multiple parameters when considering increasing take rates have.
Sidharth: I think just one last question from my end. With the sort of increase of the take rate from single, low single digits to high single digits, so the impact on the demand that you've seen with the drivers, because as you mentioned, you're valuing multiple parameters when considering increasing take rates. Have you seen a resulting impact on the decrease?
Speaker Change: Have you seen a resulting in backlog increase and so.
Ajit: And sort of, as you scale higher, any, you know, would the demand stay constant or improve? So we've seen, Icar, do you want to take this or shall I? No, go ahead, man. Go ahead.
Speaker Change: As you scale higher any you.
Speaker Change: You know with the demand stay home center for them.
Speaker Change: So we've seen like or do you want to take this or July no go ahead go ahead.
Ajit: So we've seen no change in either the pace of driver acquisition or the retention parameters as a result of the application of monetization or the subsequent gradual increases that we performed in the take rates. And the reason for this, I believe, is because We are, one, introducing a new service to the country. We are doing so in an environment where we are the only at-scale ride-hailing operator currently in the country. And we are also doing so. in a structure where the alternative employment opportunities and the income that those alternative employment opportunities would present for our current driver base are smaller in nature.
Speaker Change: So we've seen no change in either the driver pace of driver acquisition or the retention parameters as a result of the application of monetization or the subsequent graduate increases that we performed in the take rate.
And the reason for this I believe is because.
Speaker Change: We are one introducing the new service to the to the country. We are doing so in an environment, where we are the only at scale ride hailing operator currently in the country.
Speaker Change: And we are also doing so.
Speaker Change:
Speaker Change: A structure, where the alternative employment opportunities and the income that those alternative employment opportunities would present for our current driver base are.
Speaker Change: Smaller in nature.
Ajit: And the direct analogy, of course, is that many of our drivers, for example, they formerly drove for taxis. And if you look at the structure of the taxi sector in Turkey, it's one where in the vast majority of cities and most notably in Istanbul, there's a medallion system where a very large portion of the earnings of the driver go to rent the medallion. And our application of take rates still remains a very small fraction of what the alternative for many of our drivers is, which is to rent a medallion and to drive a taxi. Okay, I understand.
Speaker Change: And the direct analogy of courses that many of our drivers for example, they formerly drove for taxes.
Speaker Change: And if you look at the structure of the taxi sector in Turkey.
Speaker Change: One way or the vast majority of cities and most notably in Istanbul, There's the medallion system, where a very large portion of that.
Speaker Change: Earnings of the driver go to rent them value.
Speaker Change: Our application take rates still remains a very small fraction of what alternative for many of our drivers is which is too.
Speaker Change: Rent, a medallion and to drive a taxi.
Speaker Change: Oh.
Speaker Change: Okay understood.
Sidharth: Thank you.
Speaker Change: Okay.
Speaker Change: Thank you. The next question is a follow up coming from Rohit Kulkarni of Roth capital. Please go ahead.
Kulkarni: The next question is a follow-up. of Roth Capitol, please. Hey, thanks.
Speaker Change: Oh, Hey, thanks again.
Kulkarni: Again, given some of these recent questions, I wanted to jump in. Philosophically, how do you guys kind of balance growth versus profitability? Clearly, it feels that there's a large market opportunity ahead of you. But as a company of your size and scale, there's always the tug of war between where you invest near term versus medium and long term for sustainable growth.
Speaker Change: Again, given some of these recent questions I wanted to jump in.
Speaker Change: Philosophically, how do you guys cause balance growth versus profitability clearly it seems that there is a large market opportunity I heard a few.
Speaker Change: As a company and scan there's always a bit there.
Speaker Change: Gulf War between where you invest a near term versus medium and long term for sustainable growth could you just maybe talk through that and more specifically.
Ajit: Just maybe talk through that and more specifically towards how profitability overall could get affected as you think through these growth investments, perhaps going deeper in existing cities, new cities, even new ways of maybe talk through how philosophically investors should get comfortable that as a ways to kind of manage capital and growth going forward. So I think the state of the ride-hailing market in Turkey is sort of important to highlight, right? We're less than three years into our ride-hailing operation and therefore the state of the ride-hailing market in Turkey is probably similar to the state of the ride-hailing market in markets like the U.S.
Speaker Change: The words that could have for how profitability.
Speaker Change: Overall could get affected as you would think through these growth.
Speaker Change: The investment so.
Speaker Change: That's going deeper in existing cities new cities, even new.
Speaker Change: So monetizing your engagement being deliberate in your financials and whatnot. So just maybe talk through wholesale ourselves, we believe investors should get comfortable with that.
Speaker Change: Hum.
Speaker Change: We used to kind of manage.
Speaker Change: Managed capital vertical going forward.
Speaker Change: So I think the state of the ride hailing market in Turkey is sort of important to highlight right.
Speaker Change: We're less than three years into our ride hailing operation and therefore, the state of the ride hailing market in Turkey is probably similar to the state of the ride hailing market in markets like the U S back in pre 2015, right and in light of that we remain very much growth focused.
Ajit: back in pre-2015, right? And in light of that, we remain very much growth-focused. Until we started in October 2024, arguably we were 100% growth-focused. Now, while we have begun monetizing, still remain. very, very heavily tilted towards growth rather than profitability, but as a result of the market structure that we currently have, which is one where we are the leading at-scale operator. Even while we remain very focused on growth, we are able to, in our existing cities, create very healthy economics.
Speaker Change: Until we started monetizing in October 2024, arguably we were 100% growth focus.
Speaker Change: Now, while we have begun monetizing we still remain.
Speaker Change: Very heavily tilted towards growth rather than profitability, but as a result of the market structure that we currently have which is one where we are the leading at scale operator.
Speaker Change: Even while we remain very focused on growth, we are able to in our existing cities.
Speaker Change: Create very healthy economics, and those are the those are the forecasts for 2025.
Ajit: Those are the forecasts for 2025. With respect to the future of the company, the opportunity in ride in and of itself is. so large that we do not foresee in 2025, for example, entering, you know, deliveries, entering financial services or extending into other. And it's simply a function of market size, right, sort of potential volume and revenue per volume that we look at. And by far, you know, ride hailing is the biggest opportunity. It's one that we are, I think, also very well positioned to capture as the clear market leader at steady and therefore, that's our exclusive focus for 2025.
Speaker Change: With respect to the future of the company.
Speaker Change: The opportunity in ride hailing in and out.
Speaker Change: If itself.
Speaker Change: Is so large that we do not foresee in 2025 for example, entering.
Speaker Change: Deliveries entry in financial services or extending into other verticals and it's simply it's simply a function of market size right sort of potential volume.
Speaker Change: Our revenue per volume that we look at and by far you know ride hailing.
Speaker Change: Is the biggest opportunity is.
Speaker Change: It's one that we are I think also very well positioned to capture as the clear market leader at steady state and therefore, that's our exclusive focus for 2025 once we have.
Ajit: Once we have captured the ride-hailing opportunity fully, then we will begin looking at other expansion verticals, but that's not going to be taking place in 2025. Okay. Thanks. Thanks, John. Good. I appreciate the answer.
Speaker Change: Captured the ride hailing opportunity fully.
Speaker Change: Then we will begin looking at other expansion verticals, but that's not going to be taking place in 'twenty five.
John: Okay. Thanks, Thanks, John.
Speaker Change: I appreciate the answer.
Speaker Change: Thank you at this time I would like to turn the floor back over to management for any additional or closing comments.
Can Cliff Durgan: At this time, I would like to turn the floor back. Thank you very much for listening. Thank you for joining everybody and for your insightful questions. Appreciate it.
Speaker Change: Yeah.
Speaker Change: Thank you very much for listening. Thank you for joining everybody and for your insightful questions. Appreciate it.
Operator: Operator Ladies and gentlemen, thank you for your participation. This concludes today's event. You may disconnect your lines and log off the webcast.
Speaker Change: Ladies and gentlemen, thank you for your participation. This concludes today's event you may.
Speaker Change: Disconnect your lines and log off the webcast at this time and enjoy the rest of your day.