The Bangalore-headquartered, Nasdaq-listed self-drive rental car company Zoomcar reported a narrowed adjusted Ebitda loss, decreasing from $6.8 million to $3.3 million year-on-year during the first quarter of the financial year 2024-25, ending on June 30. Additionally, the company achieved a 58 per cent reduction in the cost of revenue, bringing it down to $1.5 million.
The improvement in adjusted Ebitda was attributed to cost optimisation efforts driven by technology and product enhancements. A guest verification process, incorporating Aadhaar, driving licence, and selfie authentication, has been instrumental in reducing late returns and accidents, contributing to overall cost savings.
For this quarter, the total number of bookings increased by 9 per cent, from 103,643 bookings to 112,944 compared to the corresponding period last year. The company claims this was achieved with lower expenditure on performance marketing.
Speaking on this, Hiroshi Nishijima, CEO of Zoomcar, stated: “Our first fiscal quarter results reflect a robust performance in our ongoing efficiency efforts. We achieved record non-GAAP gross profit and contribution profit, while also laying the groundwork for substantial revenue growth in the coming quarters.”
The company has achieved three consecutive quarters of profitable growth, driven by streamlined operations. This positive trajectory is expected to continue, leading to a significant upturn in overall performance by the end of the financial year.
In Q1, the platform’s average guest trip rating soared to 4.71, an improvement from the previous quarter’s 4.16. This achievement is attributed to enhanced in-trip communication and a focused approach to customer experience. Additionally, the number of high-rated vehicles has grown substantially, with 5,648 active vehicles now boasting a platform rating above 4.5.
The company reports its financial results according to US GAAP standards but also provides additional non-GAAP metrics such as contribution margin, Ebitda, and adjusted Ebitda for investors’ reference.
First Published: Aug 16 2024 | 8:42 PM IST
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