- Earnings call transcript Q3 2022

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Operator

Thank you for standing by, and welcome to the Helbiz Third Quarter and Nine Months 2022 Earnings Conference Call. Currently, all participants are in listen-only mode.

As a reminder, today's program will be recorded. If anyone objects, please disconnect now. I'd like to introduce your host for today's call, Gary Dvorchak, Managing Director of The Blueshirt Group. Mr. ahead. go please Dvorchak,

Gary Dvorchak

market Officer, operator, available nine everyone. to our and Officer, call. months predictions will only results statements release after our you, events call and factors. statements via Palella, conference forward-looking of that no third A and team and answer actual our on We With Operating us uncertainties. our results replay to assurance quarter may be and financial website the Helbiz due will subject These future today release and statements we XXXX press It's questions us conference contain Profumo; Chief the forward-looking that top results. and be Salvatore on thank available Welcome that correct. submitted newswires hello, to from Giulio today Helbiz issued close. call So, variation Then, results app. prove The this investor.helbiz.com. to today Financial press Investor to Founder Executive Hannestad. give some Chief Robinhood website. or via Chief this Officer, at will are of later and Relations page materially are first risks can Jonathan will the differ are discuss these note Please conference

turn We update statements. over call the now Salvatore have to to begin. will obligation no I to Salvatore? these

Salvatore Palella

Jonathan update optimization. more quarter you first you everyone. first elaborate quarterly joining financial our day, cost Thank to XXXX. Thank for performance for on business. in results our exciting of the I nine you, and good and Then, progress third Gary, and will business with us months will the review

margins. we and We operation, us the therefore, In the quarter. And second in cost Giulio made we trimmed and efficiency financial marketing. quarter, in administration, unnecessary perspective. Lastly, progress headcount in started earnest in will the improving significant third the give costs

staffing us to third-party in impacting directly. with and started reduction be starting positively Cost example, our these efforts profitability. we will work company this mobility drive All hiring to in revenue core are For business. a to cost are standard -- more

While efficiency and the cross-functional European smoother, mobility on We Also, the our micromobility, more cost fleet will better operating we operating acquisition and of higher efficiency Wheels. say operating mobility elaborate Jonathan externalizing call closed this, some -- revenue. in we that to after go out operations will increased I we of anticipate even productivity. in contribute of

Italy we time, to our We revenue like In Before In mobility, will In growth that there. the commitment remarkable year-to-date model fleet adding expanded e-bike from more this limited benefit area allowing everyone beyond in newest to expanded we expand expanding performance. we cities, counting review Europe, suction to services. cover local in With would operation the our achieve our and Spain we people US. XX%. take to products would our a to deeper modern by this my launching sustainability fleet. micro-mobility more our highlight transportation I mobility, e-scooter and and into of operating continue our bring difficult first in I'm our proud team

lower euro our mobility most and coming economic against With revenues the decreasing due mobility to the enriched. slipped of US revenue. nine-month Europe, the Our quarter the of from caused third revenue dollar

means revenue. renewal affect over The ending addition, process longer-than-expected license with delayed our mobility In deployment time.

holding waiting the deployment are and approval. operating for of the So vehicle

some lower redeployment and ahead, substantially improve we expect vehicle, the as extent. e-moped. cost We quarter in against revenue a the anticipate Mobility our especially reduced to of revenue of situation to was buffer

leading announced announced in service. on debt our WeTaxi, last or app Last taxi ax week, our about we a discuss let's users. offering on-demand Italy. Commitment partnership available Now quarter, new operator we taxes with a

Now acquisition can during couple from that Wheels be being After taxi progress produce in this app. merger the A quarter. individual feature made is charged weeks the ride, a Wheels meaningful could signed maximum whether directly the shown has of ago, jets this shared agreement. user our key we price before book or riding. We a

We are the of deal working closing as on speak. we

higher see operations nine-month bottom to top expect line while We in our The We attributable and synergy and financial toward top our closing. was after primarily boost eventually profitability. margin, line increase near-term media in to revenue. should line driving

are media the business we August. launching last that recall However,

in on comparison a year-over-year is the So rate highlight growth Media basis less meaningful.

high how due we we the media associated we our with will revenue to cost our media, the revenue potential. surprising media operate of by achieved margin Therefore, Additionally, potential rethinking are business.

our business. needs focus the US in by We micro-mobility notable to BKT is by while more in partnership media. our extended with Series on extended countries We and easy progress Serie with be one and main [ph] Moovit started lifestyle. improved with to pursuing a platform ecosystem to faster trip and with In offering and football to with core company. MSSA Africa. more mobility partner our cooperation based international mobility, sustainable in Italy bring access entertainment go, B which live target user available now Asia more a we a partner into and Our cooperating vehicle

optimization. to Jonathan? to to hand about Jonathan our it want I cost Now, talk off

Jonathan Hannestad

Thanks, Salvatore.

cost optimization elaborate on our to to and relates grow. ability me as Let software it

prioritized mobility require for improvements by efficient likely work, maintenance, This and lower in can manage we strive allocation to of they software. all costs. inventory we whether they already we're completely building having ridership, and operation problems. to responsive teams. and more digital efficiencies track also The tasks, more be automated advantages from hardware. needs before cost automation tasks, have vehicles With allows generally or that all find nearly resources, are this means next to in see will to that to means the earlier alerted deploy for the on run on year way we more operational gained our be our drivers resulting efficient date team operations This areas more technology First, routes, build ground

is that set Second building the solutions for industry. standard software we're mobility that the

officials. from that is software more they're our we in on location hardware, approach in from custom and regulatory in real-time each of compliance, and our now that our and able the innovation have regulators. features to operator cheaper needs has in we're on and safety we over moving to relies of licenses helmet the of flexibility quicker they deployed quickly the selfie to seek an verification say allowed us operators. the expire. us terms attractive cities want certifies city, requests change able we're so much needs Since in. that to each to to what while success makes been such track programs others of is we to we the AI as tech lock record flexible operate. specific our build and focus licenses are have This built requests that and vision, compliance parking exceed solutions are technology of stay able it's won meet the computer In AI providers, why Cities away deploy and active pilot to and in launch This With based and operate adapt a to why are and long-term competitors existing larger

a to Creating platform time confident energy and adaptable have flexible us. investment advantage. upfront approach will building are future acquire city off to the be gives technology not we system us what will we We a our R&D put each and is competitive that new to and continue respond pay each tailor city is this are differentiator The to the a to in hardware. into in able as for quickly,

extend we're at Lastly, to mobility software looking user. what the solution means to average

related third encouraging low-cost often. many of to our parties connect our it transit down expanding extend on keeps users but As we're that of communities, our to platform thus us Whether in utility us to built a we solution connecting is raise needs, to offerings. is our grow or to the margins offerings. taxes, insurance, This build more way able to easily the services call local solves allows with transportation

call the our Giulio our to to Giulio? discuss over CFO, performance. me let Profumo Now, turn financial

Giulio Profumo

Thank Jonathan. you,

filing. Our detailed found our and can be earnings XX-Q release financials in

financial year-to-date year-on-year a basis, all note the September quarter XX, headwinds are the of made that on third on we of comparisons will all our growth unfavorable in And Revenue unless So through Keep concentrate months I XXXX. in XXXX. was discussing achieved given for impacted by line mind are FX solid otherwise. performance. nine or figures due top We to drivers impact. the primarily mobility,

by driving towards bottom to level company revenue. Net However, lower of cost narrowed XX%, primarily we line the loss at mobility continued due profitability.

still still euro-US fewer contributed by had dollar an the Overall, decline per on been revenue First, dollar gain subscriptions the line. unfavorable in top I of of mobility have because ride, we US and QX XXXX, of in higher Revenue QX want constant impact it impact. Mobility was revenue, at pay XXXX. would revenue. review trips currency, dominated but total XX% what rate That's reported. Nevertheless, XX%. exchange the a of In traction. the revenue strengthening XX% to declined,

in our improve expect that revenue, reduce efficiency portion operation. improve operating ahead, of cost create to a the of and our thanks helped revenue was mobility we European XXXX, fleet will of of efficiencies which the further XX% more more and management. synergies Looking by cost the road in down to focus externalization down the continue optimization. the better expected past and customer profitability. Wheels quarter, efficiency we QX acquisition In reduce XX%, on operating the and of with to our of line cost the achieve strategic Wheels by overall That

Media driver total which line XXXX, media. a of increase recorded a to QX revenue top our Moving growth. during XX% was

of higher of will and is during When the for margin number. down cost nine media first more brought business than XX% during process look during accounted by revenue, What same total so QX breaking is revenue XX% both a rough to see value QX the we media. Now in our in started meaningful the the months, of that we middle XXXX, comparison at period. the you is the the

fixed thinking associated contributor we dialogue nine mentioned, approach minor our partners. where to a increased But improve to Kitchen is significantly months. in substantial it, third costs and first potential quarter we're and revenue with Salvatore active As are with media, during this the still Helbiz considering business. relatively the

and priority quick costs our other as the want to to that to reiterate as remains profitability possible. I expenses, be turning hitting Now,

made We sequentially impairment primarily in in the continue of reductions was economic will impairment mobility our cautiously on impairment to marketing decline back improve due capitalization expenses. assets, for to approximately while the environment. an Beginning XX% of operating while caused we up non-cash expenses, total note operating for adverse slimming growth we The cost significant to QX. the made the We the Please a our for which incurred building down current the expenses, market OpEx. commitment environment. demonstrating higher-quality equity-based efficiency, investing that almost that, on by operating due emotes Indeed, to were in costs, value sales accounted The macroeconomic quarter, economic come $XXX,XXX into total costs of and compensation expenses operating X% expenses fair the slowdown. and of of our meaningful business. progress accounted the context in in in operating

cash related to Turning $X.X and support to of were the end QX, our the mostly acquisition liquidity, Wheels. months expansion million. sheet first and growth during nine fleet Cash balance investments at equivalents our further were and to of

option, credit line agreement. the that of Finally, at term up of issue the not we to common the provides during the but million us equity obligation in into recently of $XX.X our with entered time the sell choosing to equity and an

and the we and headwinds as offering up launching year-over-year also full fourth the expect everyone to since a into We we over expanding ahead, and up the insurance discuss business. April of from uncertainties the with. year the about balanced further We're economic new faced mobility have quarters progress we coming our to can quarter-by-quarter look forward weather locations excited last more quarter made. Looking be is that benefit revenue

We to that are Gary? will shareholders going questions from Gary now take moderate.

Gary Dvorchak

Giulio. Thanks

address on to the The the up-voted management to shareholders to the the this and our selection the now. continue from continue future. app, Say I'm questions for one questions Technology passing extend so of the received Robinhood We'll can platform. Shareholder be one will Q&A answer. thanks in platform Helbiz to So, others team we addressed Helbiz questions that questions by top shareholder

$X you being under your first possibly the a only months, delisted you aware knowing So, do the are reverse question company trade can for planning future? near to in split? And of six are

Giulio Profumo

extension of intend stock and return your to to a request for Thank We to not situation continued if grace period the on question. the the stock alternatives, deficiency a the currently NASDAQ the consider available to monitoring stock limited, you cure compliance. to for We're an pursue reverse necessary, with and subject price pricing listing to including, to approval, split, standard. stockholder cure but intend with compliance

Gary Dvorchak

and describe Can Okay. how business you bottom-line? partnerships recent the positively impact will

Jonathan Hannestad

Thank to with some allows to you. on of goal our base revenue partners. To relies to the end. to rely is Italy. our requiring Helbiz our ordering The and in expertise That Live, deep and a customers examples across new our OneFootball partnerships good our customers user Kitchen. our on point extend while base, greatly provides mobility about very overhead penetration as a subscribe of We fans offerings Taxi, to question. ways, Helbiz our less in market platform talked positively, expand the from to expanded impact new reach on Deliveroo today, user business, we and our These for is

Gary Dvorchak

Helbiz Lyft compete the new trying taxi But Okay. Uber? service and is is to with

Salvatore Palella

Thank you.

mobile always our. That mobility transportation Our commute service one be communities. a Taxi around more has we to are their looking including wider offering ecosystem, and established -- We service user listen constantly goal various means people our our integrating source value-added and been app, alternatives. to for into developing ownership the and

to this So, an as our addition business of see micro-mobility. we core

Gary Dvorchak

How Great. current Thanks. environment the does affect macroeconomic Helbiz?

Salvatore Palella

to a the inflation immune economy. slowing not of we're So realities and

business deliver to are macroeconomic ability confident navigating stronger our we long-term headwinds However, in continue and results.

Gary Dvorchak

Thanks. Great.

into looking most important for the Helbiz final initiative the XXXX? what's question, So

Salvatore Palella

initiatives goal expanding and that City multiple The subscription and of of monthly year. after success will be Wheel's York Working which ensuring start of offering, with the the offering be growth this the and this will There in the New will their BXB has be already. merger. people we seen closing

insurance. to grow such will partner As well, around continue and offering as mobility we the taxi

Gary Dvorchak

Thanks. Great.

that, call Okay. to to turn going we're And Salvatore for the with Salvatore? remarks. back closing

Salvatore Palella

Gary. you, Thank

innovating are overall in Meanwhile, and profitability. our confident Wheels cost operating remain environment new financial scale We bring we to top and driving drive to service uncertain, microeconomic micromobility are operating the ongoing growth. the of and expected While adding to and intend next line efficiency to towards optimization offer motivate level.

our to support. team's to and We our are grateful dedication shareholder’s

of We more for our future are look sharing Thank our and you all forward multiple excited business. the about the joining on to in call. progress phases

Operator

and call. This you you. Thank Thank conference now concludes may disconnect. today's participation for your you

Micromobility.com (MCOM) 15 Nov 222022 Q3 Earnings call transcript