Bangalore, India – [15th November, 2024] – Zoomcar Holdings, Inc. (Nasdaq: ZCAR) (“Zoomcar,” or “we,” or “our”), the leading marketplace for car sharing in India, today announced results for its second quarter ended September 30, 2024.
Hiroshi Nishijima, CEO of Zoomcar stated, “By making customer experience our top priority, we’ve been able to organically boost guest repeat bookings and improve host retention. This focus has allowed us to optimize costs, particularly in marketing spend, cash incentives, and discounts, driving a significant improvement in our contribution profit. With a stronger contribution margin, our primary goal is now to grow the number of bookings by bringing in more Guests and achieving more frequent repeat usage. Despite shorter average booking durations, our contribution margin remains robust, making the total number of bookings our most critical metric.“
Key Highlights:
- Net loss per share significantly declined for the quarter ended September 30, 2024, to $4.43 per share as compared to $2,568.82 per share during the same quarter last year.
- Contribution profit reached a record high of $1.21 million (54% of revenue), a significant improvement from a loss of $0.12 million (-5%) in the same quarter last year and $0.46 million (20%) in the previous quarter.
- The number of bookings rose by 7%, from 97,970 in the previous quarter to 105,160, in the quarter ended September 30, 2024, driven by 1.5x increase in the guest repeat booking rate.
- Cost optimization efforts resulted in a 55% reduction in repair and maintenance costs, a 52% reduction in technology expenses (such as cloud services), and an 81% decrease in marketing costs. All reductions are a comparison of the quarter ended September 30, 2024, vs the same quarter last year.
- Adjusted EBITDA loss decreased significantly to $1.47 million in the quarter ended September 30, 2024, as compared to $3.87 million for the same quarter last year.
- Average Guest trip ratings saw a significant improvement, rising from 4.16 (out of 5) on March 31, 2024, to 4.70 on June 30, 2024. We are maintaining the improved ratings at 4.63 on September 30, 2024, reflecting our ongoing commitment to enhancing the customer experience.
- Active high-quality cars (with an average rating of more than 4.5 out of 5) increased by 6% from 5,516 cars for the previous quarter to 5,830 cars for the quarter ended September 30, 2024, signaling the improvement of Host retention rate.
We will have a deeper discussion in our Q2 2024 Earnings call:
We would like to invite all shareholders to our Q2 2024 Earnings Call, scheduled for November 14, 2024, at 10:00 AM Eastern Time. Please register in advance through this link – https://us06web.zoom.us/webinar/register/WN_y4xI8uNhTOqMj-fEB8oU4g#/registration
For more details, you can access the full quarterly report here.