Zoomcar Holdings, Inc. SEC 10-Q Report

Zoomcar Holdings, Inc., a leading marketplace platform connecting vehicle owners with users in need of temporary vehicle rentals, has released its Form 10-Q report for the quarter ended December 31, 2024. The report provides a comprehensive overview of the company's financial performance and operational highlights, reflecting both challenges and strategic initiatives undertaken during the period.

Financial Highlights

Total Revenue: Zoomcar reported total revenue of $2.45 million for the three months ended December 31, 2024, reflecting a slight increase from $2.42 million in the same period of 2023. For the nine months ended December 31, 2024, total revenue was $6.94 million, compared to $7.72 million in the same period of 2023, indicating a decrease in revenue.

Loss from Operations Before Income Tax: The company reported a loss from operations before income tax of $(3.24) million for the three months ended December 31, 2024, compared to $(11.68) million in the same period of 2023, showing a significant reduction in operating losses. For the nine months ended December 31, 2024, the loss from operations before income tax was $(8.18) million, compared to $(23.48) million in the same period of 2023, indicating improved operational efficiency.

Net Profit/(Loss) Attributable to Common Stockholders: Zoomcar reported a net loss attributable to common stockholders of $(7.92) million for the three months ended December 31, 2024, compared to a net profit of $14.43 million in the same period of 2023, highlighting a shift from profit to loss. For the nine months ended December 31, 2024, the net loss attributable to common stockholders was $(13.81) million, compared to $(26.76) million in the same period of 2023, showing a reduction in net losses.

Basic and Diluted Net Profit/(Loss) Per Share: The basic and diluted net loss per share for the three months ended December 31, 2024, was $(3.56), compared to $451.45 and $89.86, respectively, in the same period of 2023, reflecting a significant change in earnings per share. For the nine months ended December 31, 2024, the basic and diluted net loss per share was $(9.85), compared to $(1,924.75) in the same period of 2023, indicating a reduction in diluted losses per share.

Business Highlights

Facilitation Revenue: Zoomcar derives its revenue primarily from its 'Zoomcar Host Services', a marketplace platform that connects vehicle owners with users in need of temporary vehicle rentals. The facilitation fees are charged to hosts as a percentage of the total booking value, excluding taxes.

Fleet Management Program: During the nine months ended December 31, 2024, Zoomcar launched a Fleet Management Program as an additional service for hosts, offering parking spaces for their vehicles. This service is recognized under 'Other Operating Revenue'.

Loyalty Program: Zoomcar offers a loyalty program called Z-Points, where customers earn points redeemable for payment towards facilitation fees. The program's deferred revenue balance as of December 31, 2024, was $29,369.

Geographical Operations: Zoomcar operates its facilitation services under the Zoomcar brand with its operations primarily in India. The company also has subsidiaries and step-down subsidiaries in the USA, Netherlands, Singapore, Indonesia, Philippines, Egypt, and Vietnam.

Variable Interest Entities (VIEs): Zoomcar consolidates several VIEs, including Fleet Mobility Philippines Corporation, Zoomcar Egypt Car Rental LLC, and Zoomcar Vietnam Mobility LLC, as it is the primary beneficiary with the power to direct activities that significantly impact the VIEs' economic performance.

Operational Challenges: The company has faced operational challenges, including the closure of operations in Indonesia and Egypt due to decreased bookings and economic difficulties. Additionally, Zoomcar Vietnam Mobility LLC has filed for bankruptcy.

Future Outlook: The company expects to continue incurring net losses and significant cash outflows from operating activities for at least the next 12 months. Management plans to address these financial conditions through additional funding and strategic initiatives.

SEC Filing: Zoomcar Holdings, Inc. [ ZCAR ] - 10-Q - Feb. 14, 2025