Zoomcar Reports Revenue Increase for Q3 2024, But Decline for Nine-Month Period

Zoomcar Holdings, Inc. reported its financial results for the three and nine months ended December 31, 2024, revealing a total revenue of $2.45 million for the quarter, a slight increase from $2.42 million in the same period last year. However, for the nine-month period, revenue decreased to $6.94 million from $7.72 million, reflecting a decline of approximately 10%. The company attributed this decline to strategic shifts aimed at improving profitability, which included reducing cash incentives for hosts and implementing cancellation fees for guests. Despite the revenue challenges, the number of bookings and booking days increased by 19% and 11%, respectively, during the quarter.

The company's net loss for the three months ended December 31, 2024, was $7.92 million, compared to a profit of $14.43 million in the same period last year, primarily due to significant non-cash gains recorded in the previous year from changes in the fair value of financial instruments. For the nine months, the net loss was $13.81 million, down from a loss of $26.76 million in the prior year. The substantial reduction in losses was attributed to cost-cutting measures that resulted in a 67% decrease in general and administrative expenses and a 75% reduction in sales and marketing expenses.

Operationally, Zoomcar has made significant changes, including the discontinuation of operations in Vietnam, Egypt, and Indonesia, which contributed to a reduction in personnel costs and overall operational efficiency. The company also launched a Fleet Management Program aimed at providing additional services to hosts, which is expected to enhance revenue streams. As of December 31, 2024, Zoomcar had 7,846,450 shares of common stock outstanding following a reverse stock split effective October 21, 2024.

Looking ahead, Zoomcar's management expressed concerns regarding the company's ability to continue as a going concern, citing a critical cash position and the need for additional capital to meet operational obligations. The company raised approximately $9.15 million in a private placement in November 2024 and an additional $5.48 million in December 2024, but further funding will be necessary to sustain operations. The management is actively exploring options to improve liquidity and operational efficiency while navigating ongoing legal and regulatory challenges, including compliance with Nasdaq listing requirements.