[ad_1]
Helbiz, Inc. (NASDAQ:HLBZ) Q2 2022 Earnings Convention Name August 15, 2022 4:30 PM ET
Firm Contributors
Gary Dvorchak – Investor Relations
Salvatore Palella – Founder and Chief Govt Officer
Giulio Profumo – Chief Monetary Officer
Operator
Thanks for standing by and welcome to the Helbiz Second Quarter 2022 Earnings Convention Name. [Operator Instructions] As a reminder, at this time’s program might be recorded. If anybody objects, please disconnect now. I’d prefer to introduce your host for at this time’s name, Gary Dvorchak, Managing Director with The Blueshirt Group. Mr. Dvorchak, please go forward.
Gary Dvorchak
Thanks, operator, and hey, everybody. Welcome to Helbiz second quarter 2022 outcomes convention name. With us at this time are Founder and Chief Govt Officer, Salvatore Palella; and Chief Monetary Officer, Giulio Profumo. We issued our monetary outcomes press launch at this time after the market shut. It’s out there through newswires and on our web site at traders.helbiz.com. A replay of this convention name might be out there later at this time on the Investor Relations web page of our web site.
Please observe that our press launch and this convention name include forward-looking statements which are topic to dangers and uncertainties. These forward-looking statements are solely predictions and will differ materially from precise future occasions or outcomes as a consequence of a wide range of components. Helbiz can provide no assurance that these statements will show to be right. We’ve got no obligation to replace these statements.
I’ll now flip the decision over to Salvatore to start.
Salvatore Palella
Thanks, Gary, and good day, everybody. Thanks for becoming a member of at this time’s name to evaluate our enterprise efficiency and monetary consequence for the second quarter of 2022. I’ll present a enterprise replace earlier than turning the decision over to Giulio for the financials.
To start out off, I need to make you all conscious that now we have focuses our world workforce from prime to backside to drive wholesome worthwhile operation as shortly as potential. We spent quite a lot of effort and cash over the previous yr constructing our infrastructure. We launched many enticing product and repair and on the whole ready for explosive development. These require massive investments, which you could have seen in our operation bills and capital spending. With this basis in place, now’s the time to transform our funding into revenue. We directed our workforce to shift their mindset to cost-effectiveness, environment friendly use of capital and a backside line focus. Our rapid purpose is to drive margin growth, present working leverage, preserve money and make investments neatly and successfully.
Within the second quarter, we noticed preliminary signal of success. In our core mobility section, value of income declined 70% versus final yr. We imagine we are able to proceed to scale mobility by rising income quickly and increasing gross margin whereas controlling working bills. This might be major purpose upon which each worker of Helbiz might be judged, ranging from me. Our deal with value of margin doesn’t deviate from our effort to drive development. In that regard, efficiency within the second quarter was fairly stable. Income of $4.4 million was up 46% year-over-year and 32% in comparison with the primary quarter. Income development was pushed each by rising license and rising in our core micro-mobility enterprise and by our entry into media and meals supply final yr.
As our core enterprise, mobility noticed stable development in the important thing measure of quarterly exercise platform consumer and journey. The expansion replicate rebounding journey and the essential season issue, the arrive of the nice and cozy climate. Our workforce is doing a exceptional job of navigating a fancy regulatory surroundings. We’re working carefully with Metropolis Officer to make sure that we offer a secure, dependable service. As of June 30, 2022, we owned 50 licenses in 38 cities in each the U.S. and Europe. To maintain this excessive tempo of growth, now we have constructed our fleet and working groups. In Tampa, Florida, we had been chosen as a brand new vendor to switch an current operator. Increasing fleet, Michigan and Miami-Dade, Florida are on plan. We additionally acquired an growth for our license in Washington, D.C. and proceed to be the one operator in Miami.
Trying overseas, we lately develop our world presence into Australia. We’re partnering with Logan Metropolis Council of the Queensland, Australia to provoke trial operation. We’re additionally beginning a program with alloggio, a number one native vacation rental operator, to supply our scooter to their company. In Italy, we’re partnering with Common Photos to accumulate native rider with a file activation with the brand new Minions film. Even with the near-term purpose of scaling the profitability operation, we aren’t ignoring the large long-term alternative. We signed a letter of intent to accumulate Wheels, one other main micro-mobility firm within the U.S., and the combination is underway. We’ll replace the market because it progress.
Additionally wanting long run, simply final week, we launched taxi hailing to our app. This service enhances our mobility providing to our buyer, for instance, allow them to make the most of Helbiz even in dangerous climate. The chance right here is so as of magnitude larger than scooter alone, and it’s capital-light because it doesn’t require us to spend money on automobile. You’ll hear extra about this new product as we rollout within the coming months. On our expertise entrance, we’re investing to future develop security applied sciences. In early July, we launched HelmetChecker, our self-development, real-time helmet verification perform. HelmetChecker is a part of the Helbiz app, in fact, but in addition might be licensed by different in our trade. As an trade chief, we’re motivated to advertise secure driving of all micro-mobility automobiles.
Lastly, to fund development, we’re constructing our liquidity. In July and August, we full a $5 million financing that’s a part of a deliberate inexperienced bond situation that may very well be as much as $50 million. Our bonds are contemplating inexperienced and might faucet a wider pool of investor as a result of sustainability initiative we launched final December. These tips replicate right here our dedication to ESG science in motion.
Now let me flip the decision over to our CFO, Giulio Profumo, to debate our monetary efficiency for the second quarter. Giulio?
Giulio Profumo
Thanks, Salvatore. Our detailed financials might be present in our earnings launch and 10-Q filings. So we are going to consider discussing the drivers of monetary efficiency. Understand that all figures given are for the second quarter of 2022 and all comparisons are with the second quarter of 2021, except I observe in any other case.
We delivered one other sturdy quarter and a stable monetary efficiency regardless of continued headwinds from trade, provide chain points and inflationary value pressures. Each year-over-years and sequential income development was an all-time excessive in Q2 with sturdy development in mobility working metrics. Income of $4.4 million was up 46% from 1 yr in the past and 32% sequentially.
Mobility continued to point out enchancment with sturdy prime line development, contributing 62% of complete income, rising 72% sequentially as a result of rising fleet measurement and rising consciousness, coupled with the sturdy utilization as a result of seasonal issue of hotter climate. Income continues to be dominated by pay-per-ride, however subscriptions are gaining tractions. General, the continued strengthening of the U.S. greenback had an unfavorable affect on income. In fixed foreign money, mobility income would have been 8% larger in Q2 2022 than what we reported. Throughout areas, sturdy mobility income was pushed by stable efficiency in the important thing metrics that measure the utilization. Quarterly lively platform customers had been up 90% sequentially and up 47% year-over-year. The variety of journeys had been up 71% sequentially and 6% yearly.
Trying on the different strains of enterprise. Media continues to be an engine of development, contributing 34% of complete income. Most media income got here from commercialization of media rights and Helbiz Reside subscriptions. We’re constructing momentum in Reside subscriptions by the Helbiz Limitless providing. Helbiz Kitchen income practically doubled sequentially as we proceed to construct consciousness of this service in our preliminary check to market, Milano in Italy.
Turning to the prices and bills. I need to reiterate Salvatore’s remark that Helbiz is now 100% centered on attending to worthwhile operations. All prices and bills are topic to evaluate. We’ll proceed to spend money on development, however we’re doing it extra successfully and effectively. The primary space of success is mobility value of income, which decreased by 17%. We’re continuously on the lookout for locations to automate our operations in order that we are able to improve effectivity, customer support whereas lowering prices. This enables us to shortly establish stock to maneuver the favored spots of automobiles which can want a battery change.
In the meantime, complete working bills doubled versus final yr, reflecting our speedy development. General, value of income was 69% larger primarily as a result of content material licensing bills in media, offsetting the enhancements in mobility. Going ahead, search for way more subdued OpEx development as we deal with leveraging the infrastructure now we have constructed over the previous yr.
Digging into working bills for the quarter. R&D expense development represents some funding in our in-house engineering workforce to additional optimize our working programs and customer-facing apps. Gross sales and advertising and marketing bills grew from final yr, demonstrating our dedication to promoting, promotional and enterprise growth, particularly after the launch of media and meals supply choices. We incurred $1 million in non-cash stock-based compensation bills, which accounted for nearly 5% of the whole working bills.
Turning to our steadiness sheet and liquidity. On the finish of Q2, money and equivalents had been $2.5 million. Throughout Q2, we used money to spend money on development, specifically the acquisition of latest electrical automobiles to develop the working fleet in a number of new cities. Understand that our capital allocation strategy is to prioritize investments in enticing markets the place we’re positioned to develop. We deal with initiative that strengthen our platform, geographic footprint and buyer attain, which in flip lowers our buyer acquisition prices, will increase the lifetime worth of our clients. Our development objectives are aggressive. So naturally, we’re centered on sustaining a wholesome degree of funding.
In April, we secured $10 million of capital through two convertible notes. And in July, we accomplished a $2 million financing by an issuance of a observe and additional raised an extra $3 million through convertible notes. With the elevated liquidity, we stay assured with our skill to fund the enterprise and pursue our targets. We’re all the time exploring cost-efficient types of capital to fund the enterprise and alternatives to additional optimize our capital construction.
Trying forward, we anticipate third quarter income to be up sequentially as we profit from the upper fleet utilization as a result of seasonal issue of hotter climate. For the complete yr 2022, we reiterate our expectation for income to double. We’re solidly on monitor to realize this purpose.
Now let me flip the decision to Salvatore for some closing remarks.
Salvatore Palella
Thanks, Giulio. Q2 was a pivotal quarter for Helbiz. We intensify our deal with working profitability, placing each value underneath the microscope to make sure that we’re driving profitability operation. Income grew substantively, and we expanded our working footprint with extra license within the U.S. and our fleet measurement grew as we deploy new automobile. We additionally began licensing our helmet compliance expertise, creating a totally new income alternative.
Most significantly, we’re constructing the muse to seize the large long-term development alternative in entrance of us. We additionally simply introduced the Helbiz taxi-hailing service inside our app that develop our mobility providing in a high-value, capital-light means. After we look to the long run, now we have by no means been extra enthusiastic about what we are able to accomplish within the near-term. We thanks to your curiosity and help and sit up for reporting our progress to you once more within the months forward.
Now I’ll flip the decision again to Gary to wrap up. Gary?
Gary Dvorchak
Thanks all for becoming a member of the decision. When you’ve got any follow-up questions, please don’t hesitate to contact us by e-mail or cellphone proven on the backside of our press launch. This concludes at this time’s convention name. Thanks to your participation. Chances are you’ll now disconnect.
Query-and-Reply Session
[No Q&A session for this event]
[ad_2]
Source link