BRDS - Earnings call transcript Q4 2021

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Operator

0:03 Hello and welcome to the Bird Global Fourth Quarter 2021 and Full Year Earnings Call and Webcast. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions].

As a reminder, this conference is being recorded. pleasure Relations. the my Caitlin over now Investor Churchill, It’s to call turn to X:XX ahead. go Please

Caitlin Churchill

X:XX Good and Full afternoon, everyone, Year XXXX Fourth Earnings and Quarter Conference Call. welcome to Bird's

ir.bird.co. and that earnings These over view the on expectations with I Travis we VanderZanden. reconciliation securities performance statements to performance. Factors call of nor -- to statements reference our relations as materially and XXXX, uncertainties call, begin, our is and to founder the uncertainties important laws, are present measure of in call including and do some also promises can those company's to from today, assessing our Bird’s A be I including fact, each relate this for filed historical Risk differ release regarding at and of of not turn measure to that page made in of and financial the measures, under XX, X:XX Commission. operating EBITDA now X:XX could considered section adjusted we available Exchange non-GAAP are the our Travis? Before the risks business. forward-looking differ CEO or XX-K adjusted that guarantees the Securities subject materially be remind GAAP that non-GAAP filings indicated by risks our investor will you statements nearest the conference other to and that could cause and March other will later expectations. be on experience neither the all in expenses business This on need statements this historical to found Form description the should current and matters X:XX cause our A actual statements forward-looking US actual results Federal of to from results

Travis VanderZanden

III vehicles basis the and publicly US the leadership on for Bird an electric and our from market depreciation our of conference with end delivery of our performance in micro our XXX% for gross including EBITDA along Two, earnings million, line fourth off for growth you, results, our surge we margin, and significant of available of of product vehicle year a everyone and micromobility year-over-year margin with top quarterly innovative gross And perspective. the And executed in peers. milestones strong quarters fourth top Bird introduction in profit were X:XX XXXX transportation margin our for both Bird with of $XXX all-time both sales on of positive joining achieved quarter $XX the sales three, based our XXXX representing compared ride quarter most us and macro-related increased chain. growth in XX% revenue in full despite supply data mission fourth call. reached against the everyone, for record-setting guidance high million and e-bike in We was representing the environmentally XXXX, provide today the from cases Thank capping the of in businesses, Bird and the year later for our consumers; before one, number ahead record quarter ended X:XX year industry-leading XXX%. revenue including X culminating volume US Fourth notably: estimation, line disruption of the exceeding by sharing friendly the for to year, a adjusted Bike and and goals operation, consecutive in headwinds to continuing Omicron in expectations. of our A year, for period expectations while global of X:XX XX% prior successfully bottom for

$XXX less far X:XX represented into penetration Investment logistics Corporation vehicle Apollo team of market Bird and city the and continued market overall lastly partners growth to public And to share, have financing our micromobility, II of our the achieved the hard of for passion milestones the suppliers. four, than Trust market in the and with combination support Switchback our employees with tandem runway we November, US were for in MidCap riders, and These securing markets dedication work, ahead. long addressable X% successful of in close from and due million support business Financial entry of showcasing of leading growth. and incredible While the partners

now unit you economics to growth and progress for This leads are achieving started. continue our just driven ease, me as improvements have restrictions say continued position progress getting pandemic-related well heard model, path we our coupled fleet profitability. discuss vehicle operating with by manager before, and to X:XX us on against strategic demand our As me Strong to initiatives. growth innovation

XXXX. Our with efficiency for fleet about profitability line, remains robust our due partners our elevate top as the our is a ride this differentiator we Bird, manager impact operating we focus logistics for expectations. seasonal quarter-over-quarter drive demonstrated as since Despite well XXX each In vehicles results both continue pipeline the the continues managing key as to model to profit strong on to model fact, on partner unlock margin operational average. even X:XX as

technology growth our manage Manager will program, a allowing our helps access Fleet for we expand market in continue see further to by The partners we better model continue also our operations. ahead, operating long-tail their Manager markets, look to the which opportunity. and as Fleet investment use significant we develop reach platforms As including optimize to to

over entered expansion Bird August focused larger In our is markets, or York XXXX, long-tail XXXX, on expanding into program XXX,XXX to we in e-scooter markets. to its in launched addition than In we XXX our area the of expand each. in the program's e-scooter this fewer on footprint summer. New set service sharing city City. X:XX service success, remain the Based of populations cities with Specifically,

the markets continued such expansion our related and needs programs e-scooter large of stakeholders. course Existing partnerships renewed D.C. scaled with Washington, France, with community and expect our set our progress also as a result, is double fleet As we Marseille, our XXXX. meet Underlying the cities program. X:XX to to over the of

e-scooter vehicles. focus safety smart with exciting impact Our by COX key Using Bird annual nearly methodology show Conservative absorption in X:XX On emissions used by US to partners, research technology partner recent trees. successful wanted in on to highlighted few added COX their to XXXX spending is to car published in positive based they the communities of our taken in riders in US travel today, that trips According last to of we communities million the approximately Day to our as local cities. not This and Bird US leadership X:XX partnerships contributor impact, and the XXXX relationships strong I have communities XXX,XXX our incremental the sidewalk call, Bird's technology. and metric cities COX the short estimates vehicle X:XX replaced $XXX more our mature tons estimates we on trips. environmental Arbor our impact EPA our Another that is for I beverage on is city distances of roughly Foundation, share XX% that social globally. economic to local retailers. which e-scooter The equivalent our would and rides in only also that the a our a than with cities imply And prevent X,XXX sustainability, positive but statistics emissions helped passenger regarding contributor also in smart gas protection operate. stats key innovation. vehicles food to underscore

the e-scooter, up less I Bird fleet compared this shown past X latest damage As to this conscious the and vehicle X. XX% Bird Design XX% operate mentioned, than program In design X year, ECO global we and e-by we our for successfully addition, year, past our generation sharing models. other to Bird Bird periods introduced are our vehicles Bird months out design Xs launched rolled consumer earlier e-by. The of XXXX year-end. designed Bird prior X:XX have our by longer over made

we performance we lean XXXX. opportunities lean our pleased into as into out operations. to build for continues from end-to-end be end the and sales date. e-bikes robust, as well continue build as to product demand with benefits aggressively to our throughout see vehicle As expand out look as to X:XX to our on plan The focus are across we ahead, now vehicle we our fleet innovation in we reach our strong will gain In multimodal our very margin demonstrated We execution fleet sharing and we design to division. our both summary, our

will and Yibo seeing on vehicles committed Yibo more implying alternatives detail XXXX, strategic is consumer more beyond. transaction on With this financials. ability the we down drive we path to now gas details outlook gas-powered turn in with value enter spring, and tailwinds mission X:XX our of peak to on we our in rise over March and on our our even proven pick improving, continues strategic we weather to vehicles, As environmentally to remains gross Omicron more prices demand remain continued team to in initiatives, Our from for our and I'll trend the while reliance value are and growth continue driving fiscal objectives believe up to gas-powered XX% to advancing provide year X:XX significantly, shift. on a month-over-month. transportation to in continue over to friendly I performance critical strong with deliver industry January all today our confident which as our our will go staying cases profitability but stakeholders. now it moment, focused to provide

Yibo Ling

Thank you, Travis. X:XX

We operating strength EBITDA just high $XXX gross exceeded a Fleet the of $XX our of milestone continued of range, high our end by in innovation. As by achieving margin guidance XX%. XXXX driven guidance for while model vehicle of our end the Bird. and was million Underlying adjusted performance continued was revenue Manager year this million, discussed, loss delivered

excludes from market-based performance resulted year-over-year awards XXXX inflationary issuance million service-based COVID-XX-related represents associated with our which business of same against performance. restricted strong we business recovery XX:XX compensation expense, year records stock the and stock-based period, labor in against combination non-cash, over leverage. of expense and demonstrating our quarter and headwinds and the in stronger rebound in expense the accelerated by Note, successfully Our operating macro rollout decreased of methodologies ended non-recurring operating expenses, percent initially expense in $XX a points operating provide quarter reflects improvement. the the XXX revenue, adjusted our of more demand figure the certain decreased reflected consumer as a our expenses Despite the Let COVID-XX loosening as from OpEx company back line Alternatively, delivered with certain combination. the depressed top the of this improving spurred we Adjusted connection than our non-core fourth and adjusted noncash in vaccination year-over-year. globe. in which Furthermore, XX:XX across by the XX% pressures incurred fourth significant the compensation or details weathered now recognition the unit performance saw fiscal for in expected. we objectives the COVID-XX financial XX:XX restrictions and stock-based with me year, on with XXXX

reported For we the against up revenue of XXX% $XX QX million, quarter, XXXX.

year release cash, equivalents and compared capacity improvement we XX:XX ended we and efficient prior which revenue better in sales non-GAAP under Please with margin e-scooters cash down an to a years per product quarter of an positive recognized decision of in sales to we to supply year. standpoint to restricted of sharing intend within equivalents XX:XX our compared made strength the sales $X a in continue With reflecting shifting chain sharing strategy, million of today's in in work million strong to XX:XX a before our to type impacted agreement, recently logistics to metrics. in sales, feel an profit our In we by over we total beginning of of cash to $XX of US the last our global more As $XXX division, and forward as XX:XX of the regard utilization we quarter, goals. of in of to fourth We second year from address see product which, GAAP partners rides discussed an We part previously rest chain who respect turn, day. of XX%. flow, capital vehicle increased vehicle this new cash balance with loss product with expectations, distributor management to fourth our finally, to to meaningful expect the direct component to liquidity of continue cash by to vehicle With the our e-bikes, America million, fund vehicles Turning $XXX head and on in QX, to million miss relationships, supplier and sheet reconciliation undrawn impact industry Turning increased directly our drive for October, adjusted explore call. revenue for press cash vehicle well discussed reported the financing meet period. driven again Bird million P&L. experienced supply outperformed North have our alongside Coupled per retail of our flows. of deployed capital Ride million to $X draw sales XXXX quarter demand this margin of of effort and comes primarily $XXX to as facility, CapEx. business opportunities with XXXX time. half product quarters. performance fourth cost structure. $X sales, including And the over our XX a million deploy the was mitigate of to to improvement primarily as for approach, coming experience. further nearly vehicle business hired forms of Our deployment XXXX, Gross depreciation measured the as the a EBITDA our to production wound portions the in positions our important XXXX strategic surging improved towards our our and channels interruptions proactive us business control By a expect last our drew we we QX of optimize which we the the negative as in XXXX XXXX. we percentage total and

the and We the are partners logistics of over course accomplished past immensely proud year. have all our that team of

Our adapted improvement. to result and margin business a operations grown resilience of XX:XX impact also vehicles revenue, Fleet life best supply of known model, aside year positive as gross QX, our any largely conditions amidst of We no attributable Manager therein designed our our from macro gross Bird variance geopolitical as exhibited company's engineered recorded XX% COVID-XX, to to specifically which, the in our rapidly has with instability positive, outlook, other a margin, This extended as as of material our unforeseen or development. operating assumes and percentage each and in is challenging quarter the and some operating XX.X the as a and the full translating by Now revenue first year-over-year. of market well of effectiveness turning its deterioration business current increase chain

the towards pre-pandemic to alternatives. promise people especially positioned capitalize year progresses, to on recovery balance pressures. earlier proactive supply the our on first reflects range well QX million. we're the in additional top seeing in million For as mentioned of revenue due chain year, deliveries demand early our Travis XX:XX we to of earlier demand. the While Putting look still of week Omicron-depressed which of vehicle for each characterized transportation industry continued demand year in now the early the This believe of quarter, we period trough expect it I with together, Moreover, pictures to seasonal environmentally-friendly traditional to recovery, steps more $XX the in in the levels expect of supply the and track demand strong $XX mitigate that the combination the we on is impact we're March. with adopt the the are as

Specifically, be over increase year for revenue XXXX, an at million, expect the least XXXX. to of more $XXX than we XX% full fiscal

ongoing We EBITDA. XXs Bird in year-over-year innovative vehicles. margin also shift leverage see cost increasing model expansion, our with operating designed margin scaling the owing of should fixed an expect through rate we fleet Manager This continued gross to base, which on benefit drop XXXX, fiscal further of primarily mix our directly context from into adjusted newer, operating and Fleet to towards gains against combination continued to in for engineered expansion, trending

we’re year to XX:XX questions. full on With expect update take outlook that, We the ready quarters. coming Operator? to in

Operator

Thank XX:XX you.

the D.A a Our is now Instructions] will with [Operator question Tom Davidson. coming session. question-and-answer conducting today We White first from

Your is line now live.

Tom White

prices maybe prices. maybe you you XX:XX then, of Could like in guys. view kind changed Great. on of of your was outlook, Thanks the talk gas your are relative taking months you touched kind of and for the for from just we rising seems Thanks. the about to be kind questions, the certainly prices during heard Any ago? my of end I year. puts like changes to has a seems how guys on you I the if from rise means And a off, maybe quarter kind put landscape. first just guess pluses takes XXXX you competitive other of that, talk And kind some initial and kind But Travis, part last could since two, nice forecast of and may. of or just combination. about hoping out guess gas what world it X I little I business you business? of gas in minuses? secondly, bit lot kind the X like on the maybe

Travis VanderZanden

Yeah. XX:XX

So maybe gas take the I'll prices first.

specifically. gas micro likely got elevated transition as such obviously and here, vehicles Bird away we affordable prices, will the don't gas ridesharing we likes and to from we do vehicles how and nobody accelerate electric think high like While gas-powered prices gas-powered

X are alternatives. houses indicated to recently survey nationally, of Americans in their being was prices habits get out their after for a a gallon would going pump, that has up over And for AAA XX% of February and looking They people that want hit closed if are did in back February. gas driving change years. the As $X the in at

Here March, and we're we well in above are mark. that

we behavior micro tailwind for we the Yibo answer XXXX. 'XX that to question. electric think, let I'll think a So change. consumer going and is ultimately, will be And do in vehicles Maybe

Yibo Ling

you've Yeah months the learned to spoke, last bit we XX:XX Tom. since quite we've a as outlook X X the noted, on over

us XXXX. year. to approach because the over uptick $XXX of as year, light this to Tom, Just prices despite gas I The came we're seasonal we presumes last takes, all mean, at in XX% I no meaningfully a higher prudent year-over-year We that utilization our really specific above, was ahead for all see chose to for us. versus on seeing year us. thought it. the did incremental which fact did last year, we last way would puts that the we're hit points, of this reiterate we Now the during represent trough Omicron is outlook or to of piece that know, we a and growth in than take it 'XX, utilization that, XX:XX certainly think

really, half latter the that of in a now December January way. to out But of be in dramatic in then and the we was coming So pretty felt impact seem February. and

we've about. we're the March, I think pretty in Travis growth characterized which seen that excited

competitive at dynamic play. consolidation are then So on we there's across the board side, there. meaningful that And seeing the

this above. year-over-year or a things growth [Indiscernible], we around to serving So of them come outlook, XX% putting in all and those

Tom White

XX:XX Great, much. so thanks

Operator

Thank XX:XX you.

Advisors. from Fox Our next from coming is Steven question Fox today

now live. Your line is

Steven Fox

Good thanks. Two me, afternoon. questions from Hi, please. XX:XX

last but as in First, the region, the percentage talk by you cities, focused the think number were the increase a cities, plus versus of that major follow versus was I And you about increase, the mix where longtail XXX the can up. on I you're a had either, XXX of on the increase cities plus, then etc. total in not update the

Travis VanderZanden

a XX:XX pace, US the Yeah, at now So you we over continue primarily and cities to very globe, XXX know, as add markets fast Europe. in across

and in on want the we that of large we're program a A and start. to the An although long cities continue We working is our closely looks further good well. Xx to long-tail be year. cities. size to lot bigger cities cities, this after City. We the increasing least example York at seems -- be with focus by penetrate tail New like newer really off going to It city, are as cities to fleet

on And again, more more so cities and and continuing now of in existing side globally, globe to million cities mentioned, to as but we're year. over least at and, the across for launch Yibo that XXX guidance revenue penetrate the really more, trying the $XXX operating leads then cities to 'XX

Steven Fox

or ex-depreciation. then to can getting really quarter the ride the you you especially fabulous, you sort you unit Okay, but having what on terms contributed can improvement of the thanks. quarter-over-quarter? in I'm much to And number? year-over-year math, economics, XX:XX down It's either the got contributed given margin as were break of trouble that the What the as on Thanks. -- in, how

Yibo Ling

great question, a Steven. It's XX:XX

So Ride managers really expect the coming enjoy that strong to from in fleet our and margin, that. the is with the combination story of there, that fruits year which we, result we've retention earnings with further seen driven their performance in by the way, by

the the helps fleet margin -- well, in excluding way point. and us right with do as depreciation managers meaningful So a that

should ride fore and of ahead, to recover, progression on the piece For continued come continue continues utilization the margin. to to driving year the as that story

Steven Fox

XX:XX just year, to performance what that's Is fleet it it down Okay. But basically the if to? maybe improvement. relative manager blows just a rank

Yibo Ling

XX:XX Yes.

Steven Fox

XX:XX Got it.

Yibo Ling

vast the of sits That's Yes. excluding XX:XX what depreciation. margin, majority above right

Steven Fox

you. Thank Understood. XX:XX

Operator

XX:XX Thank you.

from question is Sachs. Goldman coming next Sheridan Eric from Your

is now line Your live.

Eric Sheridan

you XX:XX my question. if Thank I can. taking much so for X, Maybe

we that plan million out we On a so in you year the or bit expanding year, that the margin better And can in thinking it's both make, plus levers EBITDA full might about that cadence components at And of into from the of city same-store of in investments that can the against on on element year? whether versus then understand same driving perspective. to key should sense goals? the year or break the of elements broader growth of of least margins revenue $XXX that's you translate you have Thank you. in can cities for how a little gross the investments How terms be we get margins? terms better growth or a

Yibo Ling

Sure. XX:XX

in So growth operating not new on of providing generally come existing million say of guide, the a markets long I will the that focus moment. cities large revenue would specific from not in, cities, tail. expansion breakouts combination the we're $XXX within continued But at terms the we're a our and

So view part generate in us. that piece and think, emphasis of our as be do model I cities margins a story, to We continues Bird differentiated Manager smaller the operating Fleet an for towns story. to and being of it's positive ability the smaller

year significantly the And our longer life is which what fact, so investments, we at in data ahead. that historical cash, investment that's specifically Xs, big our this you're we after. we frankly, a I'm going of than of growth is those going in exhibits some in the from of older to towards even longer the see With to ground. know were put a on initially and life getting this part not than if vehicles, vehicles, sure the year Eric, when quite But the Bird be XX:XX respect vehicles, anticipating newest the we lot key

into continue our going the as year, Xs of of mid-XXs that's to this is the year. Bird end Travis fleet, the mentioned, to grow XX% So last towards and

share bit revenue from already newer are So about, benefit per vehicle will depreciation the to for mix continue driver be see quite longer. should but the gross Manager big that in spoken margin X Fleet we've the shift lasting a ride Bird that vehicles that combination the our towards a improvement with

Eric Sheridan

XX:XX Great. Okay. you. Thank

Operator

One XX:XX Richard [Operator Our from Instructions] Tullis next Capital is from question coming Securities.

live. is line Your now

Richard Tullis

Good afternoon, XX:XX Thanks. everyone.

prices, that at and increases cost increases, what flexibility elsewhere. obviously, on the that open is accepting on you the question pump gasoline have, on cost raising of a Just everyone probably their more aware to with more Travis, is side

speak XXXX? bit ability little your potential about prices to maybe So in a raise

Travis VanderZanden

think, we've impact few fact, We're do Yes. quite inflation through did mean certainly or US, riders. every historically, noticeable prices monitoring be able to closely, retention I to been year increases on the cost able And in and I price this in any to XX:XX a we year will we pass the ridership. in think we business. last increase without

And model to I of X of ability increase and our prices. think is strengths so this business the

do anticipate 'XX, a increases that guidance And in does we so say year. we as price any I although lever this gave not us potential will the for assume

in, And open it's into and guidance, every we'll sophisticated to, but that more very it's experiment. on certainly not we're we've we've to something so the side, modeled and year more something continue become and

Richard Tullis

Thank your how are helpful. early retail the And inventory still follow-up. year? But I you XXXX. know That's XX:XX as we're just in a season in anticipation bike positioning holiday you. sales late the in of

Travis VanderZanden

Yes. XX:XX

dealers continue a on to the overall part But UK to independent retailers, So continue also specifically, on and the been product well, mass building which with in we Target is excited relationships sales mean, in to be and consumer by market. side We're Best and want big we've the US and e-bike the the lean recently. with product I side partnering Buy the that. e-bike as throughout US the bike of into we the Halfords announced

folks but us base really as a grow on the in XXXX business, As year last was we faster first the small product sales the is even head XXXX. continue with product we than sales X% to about year for albeit to core this and know, expect of e-bike that revenue, into

Richard Tullis

me. you. XX:XX Thank Okay. all That’s for

Operator

any closing over of like back for to XX:XX floor Thank We turn you. the Travis further reached I'd to comments. the session. question-and-answer our end

Travis VanderZanden

today. you all joining us Thank for XX:XX

to we Before to I acknowledge Ukraine. the a close, like moment take would devastating situation in

healthy, families we for a your Thank fast very and you speaking and all our are on remain earnings impacted, Our forward hopeful those to again We thoughts peaceful hope look you we are and call. with and next with safe resolution. you. and

Yibo Ling

everyone. Thanks, XX:XX

Operator

and XX:XX Thank conclude you. webcast. teleconference does today's That

day. line disconnect wonderful have may your participation your and We today. thank a you for at You time this

Bird Global (BRDSQ) 15 Mar 222021 Q4 Earnings call transcript