Zoomcar, the Nasdaq-listed car-sharing platform, reported a 19% decline in revenue for the quarter ending December 2023, to $2.4 million compared to $3 million in the same period last year. Despite the revenue drop, the company achieved a record gross profit of $0.3 million, a stark turnaround from the $0.3 million loss in the quarter in the previous year.
The company attributed the revenue dip to a lower number of booked days, explaining that it prioritised higher-margin bookings as part of its cost-reduction efforts. However, this strategy paid off in terms of profitability, with trip fulfillment costs falling due to efficiency gains and reduced accident-related reimbursements.
Zoomcar also highlighted its strong average transaction size of over $75 per booking, attributing it to its AI-powered pricing models and growing demand for multi-day rentals.
Greg Moran, CEO and Co-Founder of Nasdaq-listed Zoomcar, said, "Our third fiscal quarter results capped a strong performance in our ongoing efficiency efforts as we achieved record gross profit and non-GAAP contribution profit while also paving the way for meaningful revenue growth over the next several quarters."
"The period also marked an important milestone with our public listing on Nasdaq following our successful business combination. As we look ahead to 2024, we expect a meaningful return to growth with materially improved profitability as we now have the right infrastructure in place to scale our operations efficiently.” he added.
Offering its calendar 2024 financial outlook, the self-driving car market place leadership anticipates their business's net revenue to range between $17.0 million and $20.0 million for the calendar year ended December 31, 2024, representing an increase of approximately 70% to 100% compared to calendar year 2023. The company also expects to achieve an annualized adjusted EBITDA run rate between $2.0 million and $4.0 million in calendar Q4 2024.