Introduction:
Zoomcar, the Nasdaq-listed self-driving car marketplace, witnessed a 19% decline in net revenue to $2.4 Mn in the third quarter of 2023 compared to the same period last year. Despite this, strategic cost-cutting measures led to a significant improvement in the company’s bottom line.
Revenue Decline and Strategic Prioritization:
The decrease in net revenue was attributed to a lower number of days booked, impacting gross billings. However, Zoomcar prioritized higher-margin bookings during the quarter, aligning with its cost reduction efforts. Gross booking value decreased to $6.5 Mn in Q3 2023 from $8.3 Mn in the corresponding period of the previous year.
Improved Bottom Line and Efficiency Efforts:
Thanks to the implementation of cost-cutting measures, Zoomcar reported a gross profit of $0.3 Mn in Q3 2023, a significant improvement from the gross loss of $0.3 Mn in Q3 2022. CEO and cofounder Greg Moran highlighted the company’s efficiency efforts, which contributed to achieving record gross profit and paving the way for future revenue growth.
Enhanced Operational Efficiency and Financial Performance:
Zoomcar’s adjusted EBITDA loss improved to $4 Mn in Q3 2023 from $5.2 Mn in the same period last year. This improvement reflects the success of broad-based cost reduction and efficiency initiatives, resulting in a decline in operating expenses, excluding general and administrative costs, by 24%.
Outlook and Future Growth Prospects:
Despite the challenges, Zoomcar remains optimistic about its future growth trajectory. The company foresees achieving an annualized adjusted EBITDA run rate in the range of $2 Mn-$4 Mn in Q4 2024, signaling a meaningful return to growth and improved profitability. With a balanced mix of vehicle segments and a record average transaction size, Zoomcar is poised for continued success in the coming quarters.
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- Source: https://timesnext.com/zoomcar-reports-q3-results-revenue-declines-but-bottom-line-improves/
