Zoomcar Q3: Revenue Slips 19% YoY To $2.4 Mn, Bottom Line Improves With Cost Cuts

Nasdaq-listed self-driving car marketplace Zoomcar’s net revenue declined 19% to $2.4 Mn in the three months ended December 31, 2023 (Q3) from $3 Mn posted in the year-ago quarter, hurt by the lower number of days booked, which impacted its gross billings.

Zoomcar in its statement said that it prioritised higher-margin bookings during the reported period on the back of its cost reduction efforts. In Q3 2023, the startup’s gross booking value stood at $6.5 Mn as against $8.3 Mn in the same period last year. 

Meanwhile, due to the cost-cutting measures, the company posted a gross profit of $0.3 Mn as against a gross loss of $0.3 Mn in Q3 2022. 

“Our third fiscal quarter results capped a strong performance in our ongoing efficiency efforts as we achieved record gross profit… while also paving the way for meaningful revenue growth over the next several quarters,” said Greg Moran, CEO and cofounder of Zoomcar. 

As per non-GAAP (Generally Accepted Accounting Principles) reporting standards, the company’s adjusted EBITDA loss improved to $4 Mn in Q3 2023 from $5.2 Mn in the same period last year. 

Zoomcar reiterated that the improvement in its adjusted EBITDA improvement reflects broad-based cost reduction and efficiency initiatives that reduced its cost of revenue, technology and development costs, and operating expenses.

Helped by a decrease in its sales and marketing costs and technology and development costs, Zoomcar’s operating expenses, excluding general and administrative costs, declined 24% to $2.2 Mn in the reported quarter from $2.9 Mn in Q3 2022. 

Bengaluru-based Zoomcar started trading on the Nasdaq on December 29 following a SPAC merger with Cayman Island-registered Innovative International Acquisition Corp. The company posted a net loss of INR 237 Cr ($28 Mn approx) in FY23, which surged over 3X year-on-year (YoY).

The company said in its regulatory filing with the US SEC that it continues to witness growth across Indian metros and witnessed a balanced mix of vehicle segments associated with new listings. 

Zoomcar also said that its Q3 2023 marked a record quarter in average transaction size across the company as it achieved a record average transaction size of over $75 per booking during the quarter. 

“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,” said CEO Moran.

Zoomcar sees achieving an annualised adjusted EBITDA run rate in the range of $2 Mn-$4Mn in Q4 2024.