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GETR Getaround Inc (QB)

0.0414
-0.0086 (-17.20%)
04 Dec 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type
Getaround Inc (QB) USOTC:GETR OTCMarkets Common Stock
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -0.0086 -17.20% 0.0414 0.04 0.045 0.05 0.0405 0.0443 210,246 22:00:01

Form 8-K - Current report

12/08/2024 9:15pm

Edgar (US Regulatory)


0001839608falseNONE00018396082024-06-302024-06-30

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): June 30, 2024

 

 

Getaround, Inc.

(Exact name of Registrant as Specified in Its Charter)

 

 

Delaware

001-40152

85-3122877

(State or Other Jurisdiction
of Incorporation)

(Commission File Number)

(IRS Employer
Identification No.)

 

 

 

 

 

PO Box 24173

 

Oakland, California

 

94623

(Address of Principal Executive Offices)

 

(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: 415 295-5725

 

 

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class

 

Trading
Symbol(s)

 


Name of each exchange on which registered

N/A

 

N/A

 

N/A

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 


Item 2.02 Results of Operations and Financial Condition.

On August 12, 2024, Getaround, Inc. (the “Company”) issued a press release announcing its financial results for the three-month period ended June 30, 2024. The full text of the press release issued in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The information set forth in this Item 2.02 (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

 

Exhibit No.

Description

 

 

99.1

Press release dated August 12, 2024 titled “Getaround Reports Second Quarter 2024 Results”

104

Cover Page Interactive Data File (embedded with the Inline XBRL document)

 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

GETAROUND, INC.

Date:

August 12, 2024

By:

/s/ Spencer Jackson

Name:

Title:

Spencer Jackson
General Counsel & Secretary

 


img248481801_0.jpg 

Getaround Reports Second Quarter 2024 Financial Results

Under new leadership team, Company raised capital, reduced expenses, and accelerated path to profitability
GAAP net loss of $12.0 million, vs. a net loss of $30.3 million a year ago
Adjusted EBITDA loss improved 49% to $11.4 million from $22.4 million loss vs. same period 2023

 

OAKLAND, Calif.--(BUSINESS WIRE)-- Getaround (OTC: GETR), the world's first connected carsharing marketplace, today announced financial results for the second quarter of 2024 ended June 30, 2024.

“During the first half of 2024 we aggressively capitalized on opportunities to increase efficiency and right-size expenses,” said Eduardo Iniguez, CEO of Getaround. “I am pleased to share that our second quarter 2024 results are starting to reflect the results of being laser-focused on addressing legacy challenges while charting a new path for Getaround. For the remainder of 2024, we expect to maintain our positive momentum with margin improvement while growing in markets and segments with profitable unit economics.”

Second Quarter 2024 Business Highlights

Appointed three new independent board members who bring significant expertise in governance, strategy and product development
Appointed Patricia Huerta, our Chief Accounting Officer, to the role of Interim Chief Financial Officer while restructuring our Finance and Accounting functions to rein in associated fixed expense
Secured an additional $50 million in financing

“In the second quarter we continued to take significant steps to reset our company leadership, business direction and operations,” said Huerta. “These changes are now in place and the benefits are reflected in our financial results, including positive trends related to Trip Contribution Margin and Adjusted EBITDA”.

Second Quarter 2024 Financial Highlights

Total revenues of $18.6 million, flat compared to the year ago period
Gross Booking Value of $53.0 million, a decrease of 1%
Gross margin from Service Revenue expanded to 88%, an increase of 286 basis points year-over-year
Trip Contribution Margin expanded to 53%, an increase of 980 basis points year over year
GAAP net loss of $12.0 million, vs. a net loss of $30.3 million a year ago
Adjusted EBITDA loss of $11.4 million, vs. a $22.4 million loss a year ago

Conference Call Details

Company management will host a conference call and webcast today at 2:00 p.m. PT / 5:00 p.m. ET to discuss the financial results and provide a corporate update. A live webcast and replay can be accessed from the investor


relations page of Getaround’s website at Getaround | Investor Relations. Individuals interested in listening to the conference call may do so by dialing 1-844-826-3033 or 1-412-317-5185.

Additionally, participants may dial 1-844-512-2921 or 1-412-317-6671 to hear a telephone replay which will be available approximately three hours after the conference call ends until Monday, August 26, 2024.

About Getaround

Offering a digital experience, Getaround (NYSE: GETR) makes sharing cars and trucks simple through its proprietary cloud and in-car Getaround Connect® technology. The company empowers consumers to shift away from car ownership through instant and convenient access to desirable, affordable, and safe cars from entrepreneurial hosts. Getaround’s on-demand technology enables a contactless experience — no waiting in line at a car rental facility, manually completing paperwork or meeting anyone to collect or drop off car keys. Getaround’s purpose is to propel the world’s transition to a more sustainable society, economy and environment with its peer-to-peer connected carsharing marketplace. Launched in 2011, Getaround is available today in more than 1,000 cities across 8 countries including the United States and Europe. For more information, please visit https://www.getaround.com/.

Forward-Looking Statements

This press release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995. In particular, the statements contained in the quotations of our Chief Executive Officer and Interim Chief Financial Officer with respect to expectations regarding the Company’s competitive position in the carsharing space, improving margins and growing with positive unit economics, and positive trends related to Trip Contribution Margin and Adjusted EBITDA. Forward-looking statements can be identified by the fact that they do not relate strictly to historical facts and generally contain words such as "believes”, "expects”, "may”, "will”, "should”, "seeks”, "approximately”, "intends”, "plans”, "estimates”, "anticipates”, and other expressions that are predictions of or indicate future events. Although the forward-looking statements contained in this press release are based upon information available at the time the statements are made and reflect management's good faith beliefs, forward-looking statements inherently involve known and unknown risks, uncertainties and other factors, including the dilutive effect of future financings, which may cause the actual results, performance or achievements to differ materially from anticipated future results.

These risks and uncertainties include those described in our filings which we make with the SEC from time to time, including the risk factors contained in our Annual Report on Form 10-K for the year ended December 31, 2023. You should not place undue reliance on these forward-looking statements, which speak only as of the date hereof. We do not undertake to update or revise any forward-looking statements after they are made, whether as a result of new information, future events, or otherwise, except as required by applicable law.

Consolidated Balance Sheet

 

 

 

 

 

 

(In thousands, except share and per share data)

 

June 30, 2024

 

 

December 31, 2023

 

 

 

(Unaudited)

 

 

 

Assets

 

 

Current Assets

 

 

 

 

 

Cash and cash equivalents

 

$

30,861

 

$

15,624

Accounts receivable, net

 

 

731

 

 

853

Prepaid expenses and other current assets

 

 

6,707

 

 

10,131

Total Current Assets

 

$

38,299

 

$

26,608


Property and equipment, net

 

 

1,641

 

 

8,504

Operating lease right-of-use assets, net

 

 

1,270

 

 

12,162

Goodwill

 

 

93,058

 

 

95,869

Intangible assets, net

 

 

8,469

 

 

13,358

Other assets

 

 

6,982

 

 

4,635

Total Assets

 

$

149,719

 

$

161,136

Liabilities and Stockholders’ Equity (Deficit)

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

Accounts payable

 

$

7,401

 

$

15,552

Accrued host payments and insurance fees

 

 

19,630

 

 

13,192

Operating lease liabilities, current

 

 

181

 

 

2,268

Notes payable, current ($0 and $18,568 measured at fair value, respectively)

 

 

2,418

 

 

19,904

Other accrued liabilities

 

 

43,062

 

 

48,107

Deferred revenue

 

 

2,634

 

 

684

Total Current Liabilities

 

$

75,326

 

$

99,707

Notes payable ($50,130 and $0 measured at fair value, respectively)

 

 

52,078

 

 

2,122

Convertible notes payable ($54,850 and $40,370 measured at fair value, respectively)

 

 

54,850

 

 

40,469

Operating lease liabilities (net of current portion)

 

 

1,089

 

 

15,487

Deferred tax liabilities

 

 

262

 

 

212

Warrant liability

 

 

30

 

 

20

Total Liabilities

 

$

183,635

 

$

158,017

Stockholders’ Equity (Deficit)

 

 

 

 

 

 

Common stock, $0.0001 par value, 1,000,000,000 shares authorized; 96,660,499 and 92,827,281 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively

 

$

10

 

$

9

Additional paid-in capital

 

 

866,574

 

 

859,163

Stockholder notes

 

 

          (8,284)

 

 

          (8,284)

Accumulated deficit

 

 

      (918,945)

 

 

      (875,955)

Accumulated other comprehensive income

 

 

26,729

 

 

           28,186

Total Stockholders’ Equity (Deficit)

 

$

    (33,916)

 

$

3,119

Total Liabilities and Stockholders’ Equity (Deficit)

 

$

149,719

 

$

161,136

 

Non-GAAP Financial Measures

We use Gross Booking Value, Gross Margin from Service Revenue, Trip Contribution Profit, Trip Contribution Margin and Adjusted EBITDA, each of which are non-GAAP financial measures, in conjunction with GAAP measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies, and to communicate with the


Getaround Board concerning our financial performance. Our definitions of these non-GAAP financial measures may differ from definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar financial measures. Furthermore, these financial measures have certain limitations in that they do not include the impact of certain expenses that are reflected in our consolidated statements of operations that are necessary to run our business. Thus, these non-GAAP financial measures should be considered in addition to, and not as a substitute for, or in isolation from, financial measures prepared in accordance with GAAP.

We compensate for these limitations by providing a reconciliation of each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP. We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure, and to view the non-GAAP financial measures in conjunction with their most directly comparable GAAP financial measures.

Trip Contribution Profit and Trip Contribution Margin

Trip Contribution Profit is defined as our gross profit from Service revenue adjusted for: (i) cost of Service revenue, amortization and depreciation; and (ii) trip support costs, which consist of auto insurance expenses, claims support and customer relations costs. We define Trip Contribution Margin as Trip Contribution Profit divided by Service revenue recognized during the period presented. We believe these measures are leading indicators of our ability to achieve profitability and sustain or increase it over time. Trip Contribution Profit and Trip Contribution Margin are measures we use to understand and evaluate our operating performance and trends. Trip Contribution Profit and Trip Contribution Margin have generally increased over the periods as Service revenue increased while costs considered in the calculation of Trip Contribution Profit decreased as a percentage of Total Revenues.

The following tables present a reconciliation of Trip Contribution Profit from the most comparable GAAP measure, gross profit from Service revenue, for the periods presented:

 

Trip Contribution Profit and Trip Contribution Margin

 

 

 

 

 

 

(In thousands, except percentages)



Three Months Ended June 30, 2024

 

Three Months Ended June 30, 2023

Gross profit from Service revenue



$

   16,154



$

  15,559

Gross margin from Service revenue





88%





85%







 





 

Plus: Cost of Service revenue, amortization and depreciation





       502





       935

Less: Trip support costs





 (6,941)

 

 

  (8,609)







 





 

Trip Contribution Profit



$

9,715



$

7,885

Trip Contribution Margin





53%





43%

 

 

 

 

 

 

 

 


Gross Profit and Gross Margin

 

 

 

 

 

 

(In thousands, except percentages)

Three Months Ended June 30, 2024

 

Three Months Ended June 30, 2023

Service revenue

 

$

18,307

 

$

18,224

Less: Cost of Service revenue, net of amortization and depreciation

 

 

       (1,651)

 

 

       (1,730)

Less: Cost of Service revenue, amortization and depreciation

 

 

          (502)

 

 

           (935)

 

 

 

 

 

 

 

Gross profit from Service revenue

 

$

16,154

 

$

15,559

Gross margin from Service revenue

 

 

88%

 

 

85%

 

 

 

 

 

 

 

Contribution Profit and Contribution Margin

 

 

 

 

 

 

(In thousands, except percentages)

 

Three Months Ended June 30, 2024

 

Three Months Ended June 30, 2023

Net revenue

 

$

18,584

 

$

18,620

Variable operating expenses

 

 

(13,027)

 

 

(15,747)

Contribution profit

 

$

    5,557

 

$

    2,873

 

 

 

 

 

 

 

Contribution margin

 

 

30%

 

 

15%

 

Adjusted EBITDA

We define Adjusted EBITDA as net income adjusted for: (i) fair value adjustment of instruments carried at fair value; (ii) interest income (expense) and other income (expense); (iii) income tax provision; (iv) depreciation and amortization; (v) stock-based compensation expense; (vi) contingent compensation; and (vii) certain expenses determined to be incurred outside of the regular course of business which includes: one-time expenses related to the shutdown of the Green St. Office, legal fees to raise capital, certain legal settlements and business combination-related legal fees, and investments in preparation of going public, initial implementation projects and transaction costs associated with proposed business combinations that are not subject to deferral. Adjusted EBITDA is a key performance measure that we use to assess operating performance and operating leverage of our business. As Adjusted EBITDA facilitates internal comparisons of our historical operating performance on a more consistent basis, we use this measure for business planning purposes. Accordingly, we believe that Adjusted EBITDA provides useful to investors and others in understanding and evaluating our results of operations in the same manner as our management and board of directors. The items excluded from our Adjusted EBITDA calculation are either non-cash in nature, or not driven by core results of recurring operations and therefore not predictable or recurring, rendering comparisons with prior periods and competitors less meaningful.

The following tables present a reconciliation of Adjusted EBITDA from the most comparable GAAP measure, Net Loss, for the periods presented:

 


Adjusted EBITDA

 

 

 

 

 

 

(In thousands)

 

Three Months Ended June 30, 2024

 

Three Months Ended June 30, 2023

Net Loss

 

$

(12,025)

 

$

  (30,269)

Plus: warrant liability, convertible promissory note and note payable fair value adjustment

 

 

(11,356)

 

 

2,060

Plus: interest and other income (expense), net

 

 

     1,322

 

 

       (263)

Minus: income tax benefit

 

 

       (12)

 

 

       (208)

Plus: depreciation and amortization

 

 

     2,772

 

 

      3,297

Plus: stock-based compensation

 

 

    4,112

 

 

      2,840

Plus: expense not incurred in the regular course of business

 

 

    3,774

 

 

         190

Adjusted EBITDA

 

$

(11,413)

 

$

  (22,353)

 

Contacts

Investors:
investors@getaround.com 

Media:
press@getaround.com
Source: Getaround

 


v3.24.2.u1
Document And Entity Information
Jun. 30, 2024
Cover [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date Jun. 30, 2024
Entity Registrant Name Getaround, Inc.
Entity Central Index Key 0001839608
Entity Emerging Growth Company true
Entity File Number 001-40152
Entity Incorporation, State or Country Code DE
Entity Tax Identification Number 85-3122877
Entity Address, Address Line One PO Box 24173
Entity Address, City or Town Oakland
Entity Address, State or Province CA
Entity Address, Postal Zip Code 94623
City Area Code 415
Local Phone Number 295-5725
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Ex Transition Period false
Title of 12(b) Security N/A
No Trading Symbol Flag true
Security Exchange Name NONE

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