BRDS - Earnings call transcript Q2 2022

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Operator

Hello. And welcome to Bird Global Second Quarter Fiscal 2022 Earnings Call. [Operator Instructions] As a reminder this conference is being recorded. It’s now my pleasure to turn the floor over to Karen Tan. Please go ahead.

Karen Tan

everyone. afternoon, Good Bird’s to XXXX conference earnings And second call. welcome quarter

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

Travis VanderZanden

thank first rides and and us will for Thank second path call. joining an quarter conference you, half financial the few Depreciation our performance, our everyone, year and a begin rebound I of half and we strong with the metrics for half update up open performance Yibo first increases off our first our respectively, XXXX, in and detail the including we earnings ago. Vehicle Profit both for XX% today up Shane XX%, then QX reached Karen, on in delivered you, highlights call on more and operational to from Margin profitability, half a of representing For XXXX, before of a questions before review of in record will and XX% XX%, Ride first while revenues,

mission compared this Over from so, margin to with the pandemic, Sharing operates these headwinds. to today dramatic for discretionary to significant near-term revenues our have for the spending spending trends by and pressures lower cost to XX%, economic agile demographic consumer a a temporary attractive compounded gross evolving on the transportation environment, XXX% macro win significant our to ahead. was inflation an goods from organization behavior value the us including has have services. the to rate what first industry That tailwinds be we’ve adjust business in annual our with the of believe loss structure our positive founded two consumer XX%, never more Absent important. mission opportunity. shifts preferences doubled mission consumer a past to everyone, half said, caused half while shift we shareholders who our It to bring Sharing XXXX representing as in our resulting drives and long-term despite nearly patterns to been years, keeps turned a environmentally XXXX, our contend and business core believe upside distortions is goals, friendly this committed and with of including of sentiment, longer-term and delivering first has to Bird to similarly I experienced anticipated and whole truly delivering against growth and point

of our that announced core EMEA; within our a profitability plans workforce and to North firstly, aligning year, our to corporate measured the reducing expenses on focus. match and more Sharing our to path to prioritizing slowed the to our finally, Sales our made business decision and expansion the part second in sharpened newly taking Sharing the approach and commitment, reduce quarter, and expansion we As this Product we through difficult resources In business; our America earlier refocus in business secondly, overhead.

are best to actions we believe position easy While long over Bird these core term. they its on deliver never to the take, mission

to million Yibo these we the have through which guidance. taken more Our annualized our reflected by charges later. In of operating consolidated EBITDA to cover quarter reduction a in activities number plan, $XX flow second contributed restructuring our connection meaningfully and expenses the one-time actions as our target quarter, will cost will third with in Adjusted and

end at $XX remained with balance of compared on cash of our second have the quarter. cash $XXX quarter disciplined strengthening held on cash cash end the we At we and our addition, our cash balance restricted first equivalents, sheet million sheet the equivalents, million In of with remaining position. the including focused and and

deployed on profit we thorough profitability, fiscal per by of conduct positive peak vehicle fleet the season through based year pricing in anticipate will lens a summer, city review this XXXX. and ride our our we of rightsizing footprint Following operating our where

positive adjusted optimizing basis, EBITDA of per year on paving as vehicle, profit is the total a first focus on our company. Our for asset full a path utilization, consolidated

day the our turn detail. let Now, driving has Shane, performance been leads Shane? our operations and business day in our QX instrumental review Shane who will me in call strategy. to to over more Sharing

Shane Torchiana

Travis. you, Thank

pleased growth the were the vaccinations Bird Average to ago. our the and emerging year-over-year in deliver back without especially of other last we quarter, expanding second the spring. rollout XXX% delays comparable deliveries in Deployed a most U.S. from received of expected by of majority year XX% COVID-XX We profitable fleet lockdowns growth vehicle driven of as Vehicles relative revenue cities. quarter on following and significant in to Sharing year the XX% countries on focused last period our X rose the in QX the For

for vehicles, mix designs ruggedized are cities Providence for GHG large longer greater per a and of one, our more been in and characterized example, by leading newer is EMEA. operational across has GHG Bird’s of mid-size need the the believe both from dozens Baltimore, related major wins, useful few reduces denominator trip as supply extends. impact, vehicles charge life and to, to America held with future and which the North trips of ahead primary CaPex cities per impact greenhouse numerator, this upside vehicle when Seattle, Minneapolis, constant. driver useful fleet time by extension gas the of chain small and As our repair in the overall production expectations vehicle two, and a We Opening also as our resulting vehicle more life and new is reducing new our possess shifts lives toward reducing efficiency vehicles

Deployed per but these to with Average have in Rides per increased the we Day within and continued year-over-year, significantly With category growth healthy line ridership Vehicle Beyond existing in Deployed new broader growing Rides XX%, came increasing competitors cities, Vehicles XX% despite Average approximately observe down cities. our supply, revenue. overall XX% growing

structures back XX% Ride remainder XXXX Depreciation was deployment ago. of XX% by opportunity We strategy XX% local and Profit the to XXXX year. improvement previously. to to impact use optimization better fit share is QX demand Our on Vehicle Profit continue efficiencies cases. This operational Margin Manager to Vehicle of shift last with Depreciation from in largely up increase to Fleet match supply the XX%, driven cities, that before a further with Ride after expectation in was to revenue mentioned of Margin compared in our increased to year in is for an this and commuter local increased temporary. see recalibrate pricing

Looking and ahead, lead as us continue expand to business growth, believe will margins technology and model, outlook operating year-on-year revenues our to matures. that the our

continues further our small well leading like where higher as as revenue a mid-size data continuing the margin mature in York into will vehicle and These on also economics to flow improve, LA, cost position consolidate gross scale per benefiting more our and cities increase to our towards consistently maintain to our As batteries, vehicle along the analytics will Sharing the per improvement more reducing In unit resulting additional position been and generate operations, technology level. large at of regulated with depreciation and region, of cities, opportunities in optimize response to see tracking, American durability North skews advances, positive. to and margins. relatively New trip costs. day revenue revenues, to share we the life positive and city cities and our day improved and per-ride vehicles expand useful strong We service XX% footprint of vehicle where into the and has CaPex the Improvements our further, trip. positioning,

broader marked said, portfolio where earlier, in With that to profitable that but that broader Our EMEA, business see in environment have shift healthy real operating America happening yet a time. more a includes strong we a North balances cities seen to consumer mature demand do Sharing economics. we investment-phase has

to global an landscape leading which EMEA EMEA coming best a competitive adopt realized be believe track As favor provides years. us larger, and We players platform regulatory technology over to the our time the record. they micromobility as proven long-term advantage, two and cities established with will and over matures operational tend practices, evolve three

to cost and we market and sure over performance structure, in and assess Yibo we’re now continue With co profitability. footprint, model volatility, that operating total I outlook our will review will make quickly the to to turn financial pricing to Given detail. adapting more ongoing economic to call prioritize the our

Yibo Ling

to noting material Thanks, to not in impacting the start by but second consolidated Shane. business line with operations. our quarter items that Sharing of aggregate I our want nuanced, statement several core large was

income two, environment for adjusts items not well impairment. gross margin, non-recurring quarter were fair million as of $XXX the shift us. of Sales; long-lived During non-cash, and driven statement adjustments these of sharing and $XXX market back from the quarter million impairments assets to the made reflect toward the non-core as adjustments, of goodwill the behind non-cash, in quarter, our as away million and recorded financial results. putting and of adjusted value one, include, impact EBITDA, is With with our an Product which by We which of the adjustments, and The these which as that by go-forward we said, second health eye on these our one-time write-offs this $XXX macro the turning for believe impacted non-core items, that attention business. focus non-recurring well

we For by and reported XX% the against Rides. XXXX in XX% increase QX $XX quarter, a million, revenue driven year-over-year of up

excludes mentioned, revenue debt on as at one-time Ride As footprint ended reflecting year of compared came impairment, by non-cash, well the certain million was negative driven of the a an addition just XXXX, to of share. charges, was operating before XX% related further period, stock-based EBITDA $XX ago quarter. positive XX% company, accelerated depreciation All-in-all, to cash since million of on margin charge of goodwill against the year expenses with expense. in business aside expanded revenue in Sharing impairment expenses, prior impairment We $XXX the non-recurring compared increased fleet in loss million, restricted an of equivalents, to public one-time QX. million a $XXX metrics. outsize Putting $X to second year charge Profit the Adjusted a $XX which was in $XX was to million by ago clicking $XX XX% period cash core a a increase of margin, quarter cash press $XX of gross Operating XX% and million manager the our impacted to as due progress Sharing release for and QX to as bad previously in XX% Sales. million as XX% of Margin loss adjusted or Vehicle primarily percentage and our operating cash, double million non-core end of period. which $XXX business, compared Please other million in see XX% higher the of Gross expense, compensation equivalents total and year-over-year Expenses, Depreciation reconciliation to today's GAAP Product related non-GAAP

have execute of CaPex equity and conditions $XX XXXX, equity June we our to we of the our undrawn of financing as XX, only capacity as would vehicle against standby and to with EMEA, Additionally, our $XXX in purchase million million warrant. US Apollo through which financing judiciously agreement, up use facility market under available needs

XXXX vehicle for of QX supply interruptions. vehicle significant global the supply CaPex our and the and of in highlighted as QX several years, logistics $XXX XXXX investments As of quarter, saw million in of face deliveries last strategy long-term approximately over next part chain management of chain

was in needs, with of particularly pulled of CaPex As the million. season, CaPex vehicle deployment QX summer CaPex forward ahead meaningfully associated peak we XXXX had our majority $XX our our

our projections, our Based us of million, are to reiterating and end trends to have QX full season, we year would within $XXX remain turning we results fall peak we guidance the of million lower our range. Now, still and likely of $XXX our into more consistent QX, big on weeks if XXXX half with outlook. second ahead the while to revenue were

core utilization business, on and vehicle, our expansion to focus into trend from Sharing our profit model vehicles. asset year the core to We operating and our Bird expectation our XXs balance for mix the owing newer the to Manager profit continue the Fleet margins shift increase X per to benefit renewed including the the of full increased Sharing of the expect ongoing optimizing meaningfully utilization of gross for for year, trends

reducing XXXX track annualized $XX cost our on cost as adjusted in our in result guidance, positive for EBITDA are our quarter Product to million achieve reducing will third as be savings our with Sales first Most and XXXX, expenses savings with of in-line majority corporate of We will of associated realized the come prior QX of of that business, a overhead. quarter. the

profitability we Looking full of ahead by XXXX, to EBITDA, year adjusted first initiatives. to driven year targeting our are fiscal path positive our

I’ll the Operating expect business With core We of questions our than to America for the in our EMEA. cities audience. across any that, $XXX turn no and Expense Adjusted million from Sharing support it North to more operator growth run-rate of over

Operator

Instructions] [Operator first DA coming Tom Davidson. is from question Our White from

Tom White

to that utilization had year-to-date. and the you just Yibo you expectations Yibo. of everyone. of talk core afternoon, any demographic, impact about or a you could, more Can the your of puts Thanks. two, regards taking about half secondly, pressure Can quarter little with kind and takes a I for range there's different consumer first you're kind Obviously, just you trends last over your spending it trying questions, maybe and are the full second Thanks that bit the then And bit for Great, in few guys inflation not? revenue lead year? I data months. kind am putting the kind my the chatter relates thanks. to for seeing quarter talk Travis. if I for to for as about and revenue? maybe to the what understand of third Good given little saw seeing the on

Yibo Ling

Tom, is this here. Hey, Yibo

have points big So, still we QX of half weeks to I of we a trends, as aren't mentioned, utilization the And us. your do back question the providing But guidance. on formally we the year, ahead few and note.

deployed on as in sharing will QX. we in roughly first QX the the The is have side, same fleet

at in play point traditionally supply quarter, that, is of two, And have than our balance same to the it terms so tends that a slightly more be third contribution, quarter fundamental the you Related for in though, QX revenue just quarter pure number of past. year, quarter XXXX. demand has the we fundamental, and the year’s dynamics the in strongest of can been that to significant see

in but that restructured is have piece half, to the sell. point largely putting do we have product first significant remaining three the we Now, on sharing business that expect inventory the sales aside the

of going to the a from OpEx and million million both we announced meaningful line. benefit to comfortable revenue also to with expect All-in-all, We flow to through $XXX do range that on previously third usually there's $XXX we some restructuring guided quarter margins. there. So be for upside initiatives remain top

so the comfortable And adjusted well. hence, as outlook with remain QX we EBITDA

Travis VanderZanden

the question. and spending. to seeing QX, were having particular yes, block in utilization including environment, inflation and term And, inflationary our micro demands take and supply inflation imbalances. the to rapidly monitoring we we're demand this macro near-term At evolving by near With primarily linking carefully aren't discretionary point, data on issues points in core pressures, street any significant consumer broader driven that level the said, obviously pressures,

be points inflation we'll no point, this that linking pressures. data closely. to monitoring so And with direct at issues any But

Operator

Steven Next from Fox coming from question is Fox today Advisors.

Steven Fox

had all, afternoon. It rides in you a up you you're could Couple if it. then bit handling more of big you for a in mentioned, could, vehicles of that questions was timing I terms vehicles, a was Travis. There I how issue on your supply and Thanks. that if And it it the Good during jump I sounds in impact enabled on just part demand is the me from network. was of of an into if like quarter first a I was little per decline day, secondly, follow vehicles curious when put guess. dig of the up. wondering then any the I

Travis VanderZanden

some throughout supply the a we globally. Shane that balancing have maybe and of so on operate cities Yes, in little deeper go demand I'll the utilization

Shane Torchiana

opportunities. happy Travis, to is in. jump way see I we where suppose to that a thanks, Yes, answer

guess, I somewhat see, varieties, a descending in and come four we of different opportunities the so of order. And sort

case, commuter the as pricing on are moving cities, both pricing, structure in particularly going and EMEA back US and and So more. we see level use to work one folks expanding around is the

particular Second we some and strong, others pockets as is Europe as some a as between being cities of see well. US in very regions, redeployment than pockets, stronger being

So a cities evolve are Goldilocks think level there's regulators, to opportunities redeploy. we of others which is toward to Number already to what emulate. seeking and I across markets, of working with have achieved, of sort some regulations, three think

vehicles. little. management too perhaps much, fleet our for four, number optimizing not too not very local deployment also hyper which us important So then not supporting least, of their and is partners And

but those which a not So market, go, day learned, of retention driver increased or per vehicle. level which vehicles we've well utilization level we've as supply where per which just distribution city as corner street very rider the of massive local is as

Travis VanderZanden

Before you you entail? answer supporting you that block that by on are exactly point the second question, the managers number basis? is how part What fleet of which does four, a block

Shane Torchiana

so imagine, data we Yes, as you answer a driven to this. have might

to say, a a the where to a to So they would a and there's long of, thinking increases months do. takes behind that what where drop where And support quite partners in would demand. train up. in the rebalance couple we and sophisticated how market. or the And as to own as supply vehicle bit even takes it manager also model fulfill few discretion them it with the the of to that best when as have obviously, I that, can terms where is, next demand pick both a to next it their suggestion put fleet recommendation to best tried to vehicle But to their be, as

Steven Fox

of the onto just of terms in coming the then the And fleet last understood. quarter. network timing Okay,

Shane Torchiana

I that material think a driver. don't was

Steven Fox

which your your after basis and in in I pricing you're take sounds of doing, remarks, class looking on basis. the mentioned guess, review it to on like, out, vehicle regional a well prepared and just a profitability to you then, way of And out XXXX. Okay. terms you

network sustainably much thank us can supply So sense different to more adjustments make sort profitable, basis sort order be how you you. give optimize seeing, for city in think demand of you the you by have to dynamics a the city to for you're a on of

Travis VanderZanden

Hey, Steven, happy to go.

Shane Torchiana

I'll can – take Maybe I it,

Travis VanderZanden

ahead. go it for Go

Shane Torchiana

a the there on to mega starting least footprint, high the bottom I season and as as is this into don't But so and reallocate distribution say other there out summer, our or about get see sharing specific the significant we top as markets. is think do sort business would And footprint, quintile from our Yes, want toward one, or alluded in profitable or profitable market quartile quintile come there reallocate than supply a between core think here to, focusing to regions, we the is itself, analysis. we we opportunity markets most of that in away broader that within the this opportunities by on markets. to this quartile market of of I sort optimizing regions

maybe talk to going thinking. that's into lever next means us a I'll for certainly be about what let you heading think meaningful But that for guidance looking legal and I talk So forward about, for fall or year. Yibo

Yibo Ling

as pruning said, Yes, we're Shane tree is the while the grow. really to about talking tree continues

well we'll in so cash operate the EBITDA as as both have be we even choosier that ’XX, much generation for to of ‘XX. are positive still just term on within targeting we flow But in balancing markets free more And terms local markets. forward look very adjusted as the year to we of

comes further meaningfully including can we million to do of about big meet needed just I of restructuring costs initiatives, part our in reduced no discipline, the OpEx within EBITDA course, fruit of $XXX to our maintaining ‘XX. from cost maybe here run if think than costs of what really expect that for a bear our year. more reduce rate adjusted just talked that structure piece And largest story cities commitment. We to we the

tells that XX%, breakeven. in cash growth only a is Now, profit clear modest margin, based farewell need depreciation ride our so at very number, line top you before would on you to you just if rough what look EBITDA

approach, to be respect about that's to with broader how the so targets. pruning we're thinking And going the

Operator

from Our Eric Instructions] coming from is next Goldman question [Operator Sheridan Sachs.

Eric Sheridan

around and up result question. you're the gap the examining as producing profit bit we structural either, on Thanks of markets closing profitability. the scale? so the much continuing last markets, ‘XX there taking little beyond a following Are level elements worry Could the about for sort in talk some Maybe a the of consolidated of to good markets of you any where components sort of of still longer term, question.

about into us how two ‘XX? we highlight three little gap seeing the end dynamic, tier of still Can from the OpEx I'm of continued long-term of the need and tier your gaps a what then standpoint, those time? you're some so some to or to structural and that term growth down So close the how your of of markets, the long how if best and you out bit investments there? on calling could your ’XX be a the you take within on for much. markets exit ‘XX? profitability between over over of making some think variability base you're cost medium of against and Thanks maybe the at some moving side out the And of should the And rate about

Yibo Ling

cities. ways Hey, to about on you between At there's beyond, pretty dispersion can level, there's the ’XX Eric, it. few imagine, wide I think as think a city

we stated and And the to course is so cash which think through which for is of going about really much things. the dispersion coming term months to But very quite free take the flow be those bar near what a to lens cities, that's markets. over meaningful the quarters, across higher we've generation already,

answer market I There's is lens, the it. prune the That's of the So tree sure offer. would making of aspect we two just we though, a also is other part that's carefully. lenses certainly one think

of our is more vehicles first And X, vehicle is and we course. The we the have majority coming have now fleet online. of the themselves, the mix Bird

in lower including of provide every newest since vehicles. vehicles So the the life way, are better depreciation generally those single they

So of that's and end through see well. through ‘XX, the that one continued we as upside this year

year-over-year, piece to of you've XX% we've as be think above come from the manager. up. up come some optimizing is and fleet the that we goes Well, going depreciation what The really seen operations, what's manager revenue to seen is other optimizing profit our predominantly about before XX%, ride fleet what pricing to that is, share,

piece to So as continue we well. that see improve

optimize As we forward operations. continue move to and our

‘XX, we no OpEx feel than $XXX to continue to million with $XXX of OpEx then EBITDA Shane, keep meet side, in mentioned bottom at think those respect adjusted objectives specific very very more target I this the comfortable we good fronts? but that I've line, On out those we to feel is million coming our out the that that. the offer else can or you'd falls dispersion the anything I mentioned, there on ‘XX the about and point actions of with respect that

Shane Torchiana

are leave up follow questions. it there unless there I'll

Operator

end question Thank also you. of We and reached session. our the answer and webcast. today's And teleconference then concludes

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

Bird Global (BRDSQ) 16 Aug 222022 Q2 Earnings call transcript