The company started out as a shared mobility company but has since expanded to include ghost kitchens, media streaming, and a taxi service. After the bell, the company reported its second quarter earnings. The startup was the first to go public via the SPAC route and many in the industry wish it wasn't so.
The company has burned through its cash reserves, doesn't pull in enough revenue to make up for its high costs of operations, and has shifted away from core operations into strange business units.
The report shows that the revenue has increased slightly over the last quarter and year over year.
There is a little context before we start looking into the finances. The letter of intent to buy Wheels was signed in June. There were times when employees in the US and Serbia had to wait for payments. According to sources, there is a lack of company structure as well as chronic late shipments of scooters.
Bird's stock is higher than Helbiz's despite lackluster earnings. After hours, the company is up 12.4%. The bulk of that is due to the acquisition of 258,636 shares of the company by the CEO at an average price of $3 per share. The number is still a far cry from the opening price.
The company had $4.4 million in revenue in the second quarter, which is up from the same period last year and the previous quarter. In the second quarter, mobility, or shared micromobility rides, made up more than half of the total revenue.
The company reported 1.2 million rides in the second quarter, which is double the number of rides it reported in the first quarter. The number of vehicles on the ground and the number of rides per day are not reported by the company.
The rest of the revenue came from the Media and Kitchen businesses.
Italy's Series B soccer, NCAA football and basketball, and MLB games are currently being shown on the platform. Some of the $6 million expected to be generated during the first Series B season must have already been realized by the second quarter of 2022.
It introduced a ghost kitchen delivery service around the same time as Live. The company didn't say how much revenue the new service brought in, but Kitchen did. Revenue doubled in the first half of the year. doubling from zero isn't a big deal.
Profumo said that growth was solid in the core mobility business and that they were improving margins. We are investing effectively and efficiently in talent, advertising, marketing, and R&D to sustain our pace of expansion.
The decrease in operating expenses was slightly offset by the double-digit increase. The loss from operations was down from 18 million in the first quarter to 16.4 million in the second quarter.
The company ended the quarter with $2.5 million in cash, which is up from $1 million last quarter, but down from $21 million during the same period last year. There was a new issue of convertible notes that had to be raised. The company raised another $5 million in July and August.
In the first half of the year, the company used $4.7 million in cash. The company paid $3.5 million to vehicle manufacturers as deposits for e-bikes, e-scooters and e-mopeds. In order to enter into the letter of intent, Helbiz put down a $1 million deposit and invested $100,000 in operating licenses, which it categorized as intangible assets.
We will deploy more vehicles, pursue more micro-mobility licenses, and drive expansion in Asia Pacific in the future. The company expanded its fleets in the US and Italy after launching shared e-scooter operations in Australia.
The company did not give any guidance for the third quarter.
Helbiz earns its name with punishing 2021 earnings
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