BRDS - Earnings call transcript Q1 2022

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Operator

Hello and welcome to the Bird Global First Quarter 2022 Earnings Call. All participants will be in a listen-only mode. [Operator Instructions] Please note today’s event is being recorded. I'd now like to turn the conference over to Caitlin Churchill, Investor Relations. Please go ahead.

Caitlin Churchill

welcome first and conference XXXX everyone, call. afternoon, to quarter Bird's earnings Good

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

Travis VanderZanden

improvement into today. vehicle guidance joining alongside March driven the for demand expanding everyone us exceeded our end grew deployments. In range, year-over-year by XX% revenue and of continued you QX, Thank but

quarter prices. demand was in But turn March beginning broader As the last said, we light of improved plan in noted weather gas negatively With which resulted strong consumers to for weather to alternatives March. lower surge impacted to the our we ease, QX we year-over-year, in accelerate the and that on by in cases. significant such early period. transportation impacted early in the adjusted as market EBITDA headwinds saw the are increase trends, and we a in softness early in higher demand and quarter Overall, pleased signals the macro as said, our the given utilization path with results call That very Bird in performance Omicron profitability.

expect $XX As operations streamline we least you saw of our release, to that plans result we annualized at our savings. cost million in announced in have press will

year As on a and accelerate goals term We of adjusted of first positive EBITDA long Bird our EBITDA the first we full in now for us creation believe now result, are to track allow adjusted quarter the will we our now market value expect profitability are importance our leadership. and understand to positioning for third difficult Furthermore, quarter we toward to of and XXXX. of XXXX. deliver in the positive delivering on generation cash profitability decisions positive path making our

to results profitability, financial review to let path Yibo call our and turn detail. our on deeper go over outlook in more to me the I Before

Yibo Ling

Thanks Travis.

X% net X% XX% and vehicle other we $XX gross driven million certain before to year non-cash QX XX% expenses expense depreciation against in compared and the ago. reported Adjusted by margin operating compared XX% QX non-core which revenue stock-based Ride to margin XXXX depreciation XX% to rides. or a year-over-year. vehicle million, which For non-recurring XXXX. expenses excludes increased $XX was profit With respect in compensation XX% quarter increase of profitability, year-over-year up quarter, first is was of

related compared million today's loss operating Travis percentage well year reconciliation periods. given the of press As company of as revenue expenses prior $XX a a in for as EBITDA of release costs, well public points the million, reviewed, Adjusted Please operating of RPD, ahead to GAAP as year was adjusted versus CECL non-GAAP expenses ramp prior in to to see decreased softness a as peak $XX increased despite XX operation loss metrics. the increased period which the expenses.

of chain management strategy XXXX in and saw XXXX deposit CapEx $XXX XXXX and investments of of for vehicle financing logistics total Turning facility. global $XXX chain QX supply to cash of million significant supply in million with our XXXX million part QX balance including under equivalents cash of million, and total ended approximately equivalents restricted period and face our capacity vehicle the interruptions. of as $XX and deployments of cash, long-term $XX and of and sheet our the cash We undrawn cash flows. liquidity

As we of realize our will benefits begin cost discuss. seasonal expect upcycled, move we the position as initiatives stabilize, savings to the we to particularly towards Travis cash that

on with $XX Additionally, facility with in vehicle cash our against flexible deployments the US million April more and total cash both cash, equivalents. And continue we EMEA. restricted we and to Apollo vehicle and than cash ended equivalents in draw financing

will under as market with issuance loan ahead of this bolster any standby optional our repayments to the liquidity to facility in press access further $XXX a Purchase term medium the to To in with warrant. season. opportunistically equity financial conditions million release, we us $XX undertaken we've operating provide Finally, million flexibility incremental upfront an entered and which peak into clear, Agreement, be increased outlined cash activity expect as be

turning to outlook. our Now

release, to to streamline revised press account have full year we taking seen As the outlook operations. revenue in into XXXX actions our we're our take

to majority the XXs owing context at no million Core are fiscal newer, savings representing year-over-year of primarily to Through the to million guidance annual will Our expect realized to $XXX be operating expected XXXX, profitability into consumed of in of expect focus the design in $XXX our the portfolio at reflects a innovative now we year million for expense to revenue million. of more and third ongoing run than be an cost cost expansion sales adjusted our operating fleet the rate manager which annual of updated fleet $XXX vehicles. least on growth of We slowing XXXX Bird our XX% our range, in in by mix achieve savings margins scaling to product $XX shift trend resulting run the rate initiatives, the an quarter more midpoint. offerings. revenue model

quarter. top our our Furthermore, gross expect targeting in healthy and first expectations with cost outlook positive savings initiatives, we're Given line of margin combined the EBITDA we quarter our adjusted revised to our deliver third alongside year current based cash in XXXX, XXXX adjusted expectations full for achieved on of approximately flow acceleration first which toward with to is XX% growth positive our positive generation. year-over-year EBITDA revenue XX% an of

we across quarters be to and meaningful strains That and the our of supply to as for business a structure. to respect a more we fixed being plan impact structure a secured vehicle ahead, broader capital new disciplined flexible these said, committed persistent chain to support expenditures, growing the to with focus cost helping of headwinds. strategy the forward expect China ‘XX our ‘XX the to pull portions we're solutions conditions believe capital sectors. our than lower with mitigate last markets With global landscape, regards continue COVID core Looking number the maintaining sweep profitable be and sharing to sufficient updated CapEx across challenging on two to decision have logistics into of impacting full production is to

We of have the deploy received are peak summer in vehicles approach vast majority ongoing the we closely as we developments, intend monitoring but the XXXX. months, we already particularly to

such, disciplined path ‘XX, I'll vehicle back positioned believe our to accelerate well As turn plans of to discuss the to approach allocation. call vehicle balance profitability. maintain the with we now our for we to a over Travis to will we're deliveries our

Travis VanderZanden

positive Few way operations our dynamic and return the even in to in continue over and to and Thank success environment especially of a expansion company level. profitability the of five markets. a further path fleet managers model, winter amid years, the to was great position components into long unlocked our evolve micro small mobility addressing of been months. efficiencies way. is fleet our form macro model opportunity has overall best efficient example us for the operating adapt manager market paved you, our significant as the tail operational our past in developed The to level fleet our our Bird’s means Yibo. address ride door along cost to ability which providing our fixed to at model, serve years shift in a to scalable model, while order challenging A manager profitability and past the prior this for this the through opening two The accelerate consistent we and improvements vehicle over with well mid-size operating

at prudent, initiative, look immediate As structure, while to identified part hard and for of areas taken decisions change. our cost have a have this we easy make. specific are These never

product to sales decided of expansion As we our plan, of this portfolio the slow offering. part have

further prioritize that investment be and will to US our geographic taking conditions. will not do a meet within returns regions, additionally some proven open current We markets we sharing And be goals while which to profitability operations market to have approach resources realigning existing given leaving EMEA our expansion. our measured

CapEx on finance further we investments in the and we made half with XXXX vehicle spend year. QX expect capital do this Finally, material latter in accelerated not the on XXXX, QX

over maintaining we sharing in these growth, profitability actions leading remain on core While markets. position prioritize focused our

first cost in to adjusted remain which which majority to delivering opportunity quarter positive Yibo to continue expect outlined. addition Bird. position and see of the deliver flow ahead our objectives, QX, to I realize in on confident associated cash we other by believe we profitability for will savings of EBITDA the us the We

and team's Directors their Board strategy and voluntarily their of sentiment, equity have demonstrating the management profitability. our our months six towards and of for echo path lockup extended this conviction ownership Our team to

all actions stakeholders, the and taking on focused delivering hardware technology, are are are commitment done at our and vehicle to been have our a We we value never time today stronger. partners our when to of

doubling that to With to are path take our down to on profitability. committed are we We questions. Operator? ready

Operator

first Davidson. with [Operator from White question Instructions] the D.A And Tom comes

Tom White

be if a would could, off first about And then Couple kind of you questions. color my think little also taking the for versus guidance presumed couple revenue I in for about thoughts just of maybe contemplated Thanks the But utilization should give here? I helpful. bit outlook, guys. maybe year overall Can on of full you just guess updated think new increase how revenue. quarters guess to evening, full last of next maybe, I how Good no the sales any quarter, utilization. updated kind year that Product about that's think sharing? we I in us

Yibo Ling

Tom. Hi,

guide, the bridge, previous to So attributable primarily is in slowing between expansion. sales the on product the previous the guide the our delta of now

the Our to quarter expansion performed mentioned light in against really in of individual of changed, and with back on a cost savings headwinds, as a the given portfolio, business the the potentially term higher markets. timing position taking, do not QX expect we profitability of updated earlier. Generally, performance, full outlook [Indiscernible], has And the near to insurance actions say product for give we're top of guidance slowing in I materially taking year QX the hasn't the sales some bar the the line on plan date. however, that initiatives we're half to

Tom White

how then should competitive I And on the thanks. had And follow think about of overall then just environment. utilization. on we up kind Okay, just a

some if of there's been curious kind consolidation space. in Just the

the competitors. domestically of developments one recent your You've of larger some also with here larger had one with competitors,

Just near those of kind either on your industry your structure of landscape, the or term on kind curious thoughts evolves? high of view level like term, on impact to and longer moves of have the the business hear competitive changed the whether just maybe the sort how

Travis VanderZanden

And to forward we that space. to seeing Yes, continues look more consolidation I in happen the say consolidation. would

consolidation. market, their, bit US behind is US but was a with you little overall recent it the on to structure markets which there largely market the Europe's mentioned, helping acquisition that, As more consolidated, is helpful see a consolidate in

Yibo Ling

the April. on Tom, piece, expectations through generally through the that's and here also And against performed topline utilization April

Operator

Fox Advisors. comes And the with question Steven Fox from next

Steven Fox

should parameters list of follow good sort on looking Hi, sort quarters think now? we had Or forward When that sort in or the in that there Do regional you means at appropriate coming and change cities previously not up? cities to are the where you some a you is getting then you're how the way meant reference put going you that of expansion return? have afternoon. and of to versus what any about about what think of around now

Travis VanderZanden

primarily plan to Yes, we path US and near both portfolio. term for market our global look new Europe our do flow markets Within of to focus But markets regions. obviously want vast regions, the They're those we'll the the on continue cash the through the that expansion, generation. to existing at we focus and Europe on cash to profitability. to sure entire this we look to we US profitable already. are creating that expect are are generation and flow lens of majority the and make continue profitable and on focus markets, Thankfully,

are at. markets the But already primarily the the on Europe year. that And great of vast to obviously see the we rest focusing close of be regions US for that's will ones profitable. majority taking aren't, we'll the And again, look be so and a

Steven Fox

helpful. And quickly positive cash that’s of then CapEx pretty portfolio, we versus terms to is expect Thanks. now for would flows between EBITDA, you in next flows EBITDA cash That's about year. -- How next the positive thinking and year? turn much vehicles if

Yibo Ling

Yes.

in two up significant So pulled XXXX through pretty in here, half finance restricted cash vehicle end did CapEx the and equivalents significant mentioned, And last of a expect over with spend our deployments of and cash material you as have total primarily don't latter we April a of we million for CapEx $XX amount cash this we on saw cash, just and pointed the capital deposits, XXXX further outflows year. as you out quarters, we equivalents.

So we we on We're will in these ahead. we $XXX on confident guidance the feel specific free standby behind including at investments not flexible this task we've earlier, flows million financing that facility, be million sizable mentioned purchase $XXX with back and us, but capital and solutions agreement vehicle equity cash secured, the do giving above point, that.

Operator

from question Sheridan comes next And Sachs. Goldman with Eric

Eric Sheridan

the Thanks taking for question.

analyzing one Sorry First the two, can term. is in That'd you new we out markets will that in long question number I in to you're portfolio market a you're profitable laid sooner? term? for of about EBITDA the medium where talked versus stay structural bit Just you of out, to portfolio long to market for higher term? alignment markets much. a you so versus laying growth solve of lean exit to path business so higher to profitability, think terms you're follow little bit be to you in a what's the not that analyzing be mixed about of what can the and when new seeing market, accelerating number us the would up the type to help term, get might dynamic be in want understand longer little year? you're and there some to want last better prism you're on the this structural growth? trying business the over what talk an a of you the the we long a just in than know better versus one. is understand And understand you on to push the bit trying behind in degree can element listed side just about over of Or a But this Thanks to a be, profitability little the

Travis VanderZanden

mix. on on Yes, the the market

college et on cities there's weather lot are term the the we But focused look that the the said, and some place. we I regulations cities that profitable pretty I would towns, obviously. our of vast have be closely majority to profitability trends, is of and As density, here, and north for near be we'll cash that like markets Europe of certainly profitable, tend at. a say cetera, around looking dimensions ones in cities a US seasonality, that mentioned, bigger And aren't handful onerous primarily bigger the true generation only

that be regulatory profitability. at so certainly future we'll cities near and in future the profitability the term And means and framework looking for what

Yibo Ling

plan to the resources respect with focus business, the and sharing our is sharing and core just really Yes, against business. align our here to

the margin on the generally view, potential on view profile Our our hasn't changed there changed. hasn't

are that ensure primarily We build here, a growth against noted as as do cost growth, we've we the most to bit, it we tapering down structure that fixed can efficiently.

And so path to it's anything else. really about the more accelerating profitability than

Operator

And the next Tullis question Richard comes with Capital One. from

Richard Tullis

total the by the your mentioned move of the vehicles afternoon, the comments, this this thanks. what fleet. opening representative of Yibo, the of is vehicles say Hey, quarter Bird of third fleet, year transition in or year, or continued kind Three newer toward vehicles in could total had Good to everyone. newer bring into of end the percentage the the say you the

Yibo Ling

of in Threes roughly moment vehicles of Bird the XX% are fleet As fleet the the half for about and be year Bird our this our expect of balance Threes. to to XX% we

Richard Tullis

toward of that's to you. the like positive was year, And supply what's And kind supply chain the strategy end of was seemed sales, pretty it going view helpful. it? more driven it to just outstripping of kind logistics last cetera, of the forward deal? product your et there? even issues, a going sales, there changed back bike update it is maybe Or on given is deemphasizing demand Okay, Thank maybe

Travis VanderZanden

product it really, was last as of X% sales Yes, revenue. was year, you know,

can business we on question important sharing backdrop, the the as answer business market is put the given session macro macro for today's on in so that for focus environment. path there's focused it's place business. new fast. for think And felt the a that business, still as that core well Thank a And the our Thank be and given really, to call much we and us there's level growing want and So itself. profitability it you. laser so you concludes line presentation. is we But attending focus which opportunity, of really that to company just to the

may now your You disconnect lines.

Bird Global (BRDSQ) 17 May 222022 Q1 Earnings call transcript