Peer-to-peer carsharing company Escape has filed its first earnings report since going public a year ago through a SPAC combination. The company’s third-quarter earnings report detailed a company with fast revenue growth, but not enough of a top line to cover its expenses.
Getaround reported gross bookings of $69 million in the third quarter, resulting in $23.8 million in revenue for the period, up from $16.7 million in the same period last year. In the first nine months of 2023, Getaround’s revenue was $54 million.
However, while Getaround’s 42% year-over-year revenue growth reported for the third quarter was well received by investors that sent its shares up 75% in after-hours trading at press time, the company is not out of the woods yet.
Getaround had operating expenses of $42.9 million in the third quarter and $128 million in the first three quarters of the year, both figures well above gross profit in both periods. However, Getaround is making some progress on the profitability front. In the third quarter, the company lost $27.3 million on a GAAP net basis, 16% better than it reported in the third quarter of 2022. Using more generous earnings calculations, Getaround was still unprofitable in its most recent quarter, reporting an adjusted EBITDA of -$11.3 million in the quarter, although it improved 43% year-over-year.
For the full year 2023, Getaround is targeting gross booking value in the range of $200 million to $205 million. The company didn’t share its revenue targets for the year, but its third-quarter revenue reflects an annualized run rate of more than $95 million. Getaround expects an adjusted EBITDA loss in the range of $68 million to $70 million in 2023.
Getaround ended the third quarter with $22.1 million in cash and cash equivalents. That figure is well below the $64.3 million it reported in cash and equivalents at the end of the third quarter of 2022. The company received some good news in the form of a $3 million injection from Mudrick Capital, which has an existing $15 million note with the company that was expanded to give Getaround a little more breathing room.
Getaround’s stock closed Thursday’s regular session at about $0.17 before reporting third-quarter data.
Reconstruction
Getaround is working to straighten out its cost base, including laying off the company 10% of its staff in February to cut $25 million to $30 million worth of annual expenses in an effort to achieve sustainability. The layoffs came a day after the release of Getaround a notice of delisting from the New York Stock Exchange because its share price was trading too low.
Today, after its huge share price gains in the wake of its earnings report, Getaround remains worth essentially less than $1 per share, meaning it’s still at risk of being delisted. some SPAC combinations have been executed reverse stock splits to boost their price per share back past the hundred cent mark.
Getaround has received other takedown notices for failure to submit timely annual and quarterly reports. The company did not file its 2022 annual report and just filed its third-quarter earnings report. Getaround has yet to file its first and second quarter earnings. The company says it took extra time to complete an audit, which it has now completed.
“We believe the reasons we were out of compliance, including a complex public transaction, are now behind us,” Getaround CEO Sam Zaid told TechCrunch. Zaid did not comment on whether Getaround would pursue a reverse stock split to boost its share price.
The carsharing company too acquired the assets of startup HyreCar in May, which in the short term has added to Getaround’s operating cost base. Getaround hopes the scale provided by the acquisition will help accelerate its path to profitability.
This article has been updated with more information from Getaround’s CEO.
