micromobility.com Inc. Releases Q3 2023 10-Q Report Highlighting Strategic Shifts and Financial Performance
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micromobility.com Inc., a leading provider of urban mobility solutions, has released its Form 10-Q report for the third quarter of 2023. The report outlines significant financial and operational changes as the company continues to focus on profitability and strategic market exits.
Financial Highlights
- Total Revenue: $1,554 million, a decrease of 58% for the three months ended September 30, 2023, compared to the same period in 2022. This decline is primarily attributed to the reduction in Media revenues following the early termination of agreements and the strategic exit from non-profitable markets.
- Cost of Revenue: $3,254 million, a decrease of 61% for the three months ended September 30, 2023, compared to the same period in 2022. This reflects the company's efforts to reduce operating cash burn and focus on its Mobility business.
- Loss from Operations: $(7,520) million, an improvement from a loss of $(22,848) million in the same period in 2022, indicating a significant reduction in operating expenses.
- Net Loss: $(9,477) million, an improvement from a net loss of $(24,562) million for the three months ended September 30, 2022. This improvement is due to cost reduction strategies and decreased operating expenses.
- Net Loss Per Share: $(0.06), an improvement from $(22.57) for the three months ended September 30, 2022, reflecting the impact of reduced losses and changes in share count.
Business Highlights
- Revenue Segments: Mobility revenues decreased by 33% in the nine months ended September 30, 2023, compared to the same period in 2022, primarily due to the company's strategy to exit non-profitable markets. Media revenues also saw a significant decline of 78% in the three months ended September 30, 2023, due to the early termination of agreements with LNPB.
- Geographical Performance: The company operates in various cities across Italy and the United States. In Italy, operations are ongoing in cities like Milan, Turin, and Palermo. In the U.S., services are provided in cities such as Santa Monica and Honolulu. The company has strategically reduced its presence in certain markets to focus on profitability.
- Sales Units: The number of trips and Quarterly Active Platform Users (QAPUs) decreased, reflecting the company's strategic decision to reduce operations in less profitable markets.
- Future Outlook: The company plans to continue funding its operations and expansion through debt and equity financing. It aims to achieve cash-positive operations by focusing on profitable markets and reducing operational cash burn.