SUMMARY
- Self-driving car rental marketplace Zoomcar’s net loss decreased by 92% to $2.53 million in Q1 FY25 from $28.78 million in the same quarter in the previous fiscal year.
- The company also experienced a drop in its operating income as its revenue from services decreased by 15% to $2.20 million from $2.61 million in the same quarter last year.
- The total costs and expenses fell by 44.5% to $5.61 million in Q1 FY25 from $10.11 million in Q1 FY24.
Self-driving car rental marketplace Zoomcar significantly reduced its financial losses in Q1 FY25 by cutting its finance expenses sharply. The company’s net loss decreased by 92% to $2.53 million from $28.78 million in the same quarter in the previous fiscal year.
However, it also experienced a drop in its operating income as its revenue from services decreased by 15% to $2.20 million from $2.61 million in the same quarter last year.
Despite this decline in revenue, Zoomcar noted in a statement that it witnessed increased demand for its services throughout the quarter. The number of bookings rose by 9% YoY to 1.12 lakh in Q1 FY25. The company attributed this growth to lower spending on performance marketing and host incentives.
The total costs and expenses fell by 44.5% to $5.61 million in Q1 FY25 from $10.11 million in Q1 FY24. The cost of revenue decreased by 58% to $1.51 million from $3.61 million, while sales and marketing expenses dropped by 70% to $802.5K from $2.70 million in the same period.
Zoomcar reported a substantial decrease in its finance costs for the quarter, with these expenses falling over 97% to $551K from $21.52 million in Q1 FY24.
The company attributed this decline to “broad-based cost optimisation initiatives driven by technology and product”. It mentioned that it tightened its guest verification process during the quarter, which led to a decrease in late returns and accidents.
Nasdaq-listed Zoomcar also noted that its adjusted EBITDA loss was $3.3 million during the quarter, down from $6.8 million in the year-ago quarter.
Hiroshi Nishijima, the recently appointed CEO of Zoomcar, stated in the company’s announcement that the company’s first fiscal quarter results demonstrate strong performance in its ongoing efficiency initiatives. “We achieved record non-GAAP gross profit and contribution profit, while also laying the groundwork for substantial revenue growth in the coming quarters,” she added.
These financial improvements come at a time when the company has seen several changes at the executive level. Greg Moran, one of the cofounders and former CEO of Zoomcar, was terminated from his position on June 27. Following this, Nishijima, who was the company’s former COO, assumed Moran’s role. Additionally, Zoomcar’s global president, Adarsh Menon, also left the company in July.
Founded by Moran and David Back in 2013, Zoomcar operates as a marketplace for renting autonomous vehicles. The company connects hosts with guests, offering a variety of self-driving cars at affordable rates.
Earlier this month, Zoomcar introduced a unified app aimed at enhancing the car-sharing experience for both hosts and guests.
Zoomcar went public on the Nasdaq in December 2023, following a merger with Innovative International Acquisition Corp, a Cayman Islands-based special-purpose acquisition company.
