Le Lézard
Classified in: Business
Subjects: EARNINGS, Conference Call, Webcast

Marti Announces Full Year 2023 Results


Türkiye's leading mobility super app Marti Technologies, Inc. ("Marti" or the "Company") (NYSE American: MRT) today announced its financial and operational results for the full year ended December 31, 2023.

Financial and Operational Highlights for Full Year 2023

"2023 was a year of record ride-hailing growth for Marti, proving that the high demand for ride-hailing globally also exists in Türkiye," said Oguz Alper Oktem, founder and CEO. "We also proved that there is a significant number of drivers that want to work for our service, well exceeding the number of taxi drivers in our largest city Istanbul. The fast and capital efficient growth of our ride-hailing business was enabled by our existing position as leading urban mobility app in Türkiye across both iOS and Android, having served over 77M rides to over 4.9M unique riders since our 2019 launch. We plan to increase the pace of our investments in our ride-hailing service in 2024."

"Since the 2019 launch of our two-wheeled electric vehicle rental business, we have consistently grown the segment to its current scale of 35 thousand average daily vehicles deployed in 2023. Now that we have reached scale, we are substituting fleet expansion to focus on operational efficiencies which we believe will increase the profitability metrics of the segment. We will continue to take these operational efficiency enhancing actions throughout 2024.

"Throughout 2023, the behavior of our riders continued to support our decision to offer multiple transportation modalities over a single app. We currently offer six modalities over our app: car-hailing, motorcycle-hailing, and also taxi-hailing services, which we launched in February 2024 as part of our ride hailing segment, and owned and operated e-bike, e-scooter, and e-moped rental services as part of our two-wheeled electric vehicle rental segment. The data shows that this multi-modal offering is aligned with rider preferences. Depending on the modality, between 57% to 85% of our riders used the modality after previously being introduced to us by using another Marti modality. Our existing modalities serve as an excellent cost free rider acquisition channel for our new modalities. Furthermore, depending on the modality, between 32% and 64% of our riders subsequently used other Marti modalities after their first ride with us. These data points show an overwhelming rider preference for multi-modal transportation services. Serving multi-modal riders also creates economic benefits for Marti. Rides per rider is 5.3X higher, and revenue per rider is 5.3X higher for our multi-modal riders than for our single modality riders."

Financial Highlights for Full Year 2023

Consolidated Revenue

Consolidated Adjusted EBITDA

Liquidity

Share Repurchase Program

Acquisitions

Financial and Operational Highlights for our Ride-Hailing Service in 2023

 

2022 (Oct-Dec)

2023

G&A (USD, thousands)

(410)

(4,758)

of which, Cost of Ride*

--

(95)

Selling & Marketing (USD, thousands)

(974)

(6,372)

of which, Cost of Ride*

(171)

(1,040)

Other Expenses (USD, thousands)

--

(525)

Total Expenses (USD, thousands)

(1,384)

(11,654)

*As Marti did not earn revenue from its ride hailing service in 2023, the cost of delivering this service is classified under General & Administrative Expenses and Selling & Marketing Expenses.

* The targeted number of riders and registered drivers by June 30, 2024 in the Ride-Hailing Service are based on Marti's current estimates and assumptions and are not a guarantee of future performance. The targets provided are subject to significant risks and uncertainties, including the risk factors discussed in the Company's reports on file with the Securities and Exchange Commission ("SEC"), that could cause actual results to differ materially. There can be no assurance that the Company will achieve the results expressed by these targets.

Financial and Operational Highlights for our Two-Wheeled Electric Vehicle Service in 2023

 

2022

2023

?

Average Daily Vehicles Deployed

33,011

34,585

5%

Average Daily Rides per Vehicle

2.36

1.27

(46)%

Average Revenue per Ride (USD)

0.88

1.25

43%

Revenue1 (USD, thousands)

24,988

20,030

(20)%

Cost of Revenues, excl. Fleet Depreciation2 (USD, thousands)

(18,465)

(14,762)

(20)%

% of Revenue

74%

74%

 

G&A3 (USD, thousands)

(11,564)

(14,894)

29%

% of Revenue

46%

74%

 

Net Loss4 (USD, thousands)

(12,862)

(22,160)

72%

Adj. EBITDA5 (USD, thousands)

(2,489)

(6,665)

168%

Adj. EBITDA Margin6

(10)%

(33)%

 

1. Revenue for our Two-wheeled Electric Vehicle Service is the same as consolidated Revenue given Marti does not yet charge for the Ride-Hailing Service.
2. Cost of Revenues, excl. Fleet Depreciation is calculated by subtracting Fleet Depreciation from Cost of Revenues.
3. G&A includes selling and marketing; other income/expense, R&D expense.
4. Unallocated other income, financial income, and financial expense are presented under Two-wheeled Electric Vehicle Service segment (FY'23 net expense $4,5M, FY'22 net expense $1,1M)
5. Adjusted EBITDA is a non- GAAP metric and is calculated by adding depreciation, amortization, taxes, financial expenses (net of financial income) and one-time charges and non-cash adjustments to net income (loss).
6. Adjusted EBITDA Margin is a non-GAAP metric and is calculated as Adjusted EBITDA divided by revenue.

(*) Pilot results not necessarily indicative of future attainment.

Full Year 2024 Guidance

Marti is presenting its full year 2024 guidance, as summarized below:

 

 

2024 Guidance

Revenue(1)

 

$16.6M

Adjusted EBITDA(2)

 

$(22.5)M

  1. The Company's initial 2024 guidance assumes continued growth of our ride-hailing service in the absence of monetization and the absence of any fleet size expansion or replacement investments as vehicles are retired from our two-wheeled electric vehicle fleet.
  2. The Company's initial 2024 guidance assumes an increase in the pace of our ride-hailing investments relative to 2023.

The full year 2024 guidance provided herein and the targeted number of riders and registered drivers by year end in the Ride-Hailing Service are based on Marti's current estimates and assumptions and are not a guarantee of future performance. The 2024 guidance and targets provided are subject to significant risks and uncertainties, including the risk factors discussed in the Company's reports on file with the Securities and Exchange Commission ("SEC"), that could cause actual results to differ materially. There can be no assurance that the Company will achieve the results expressed by this guidance or the targets.

Conference Call Information

Marti will host a conference call today to discuss its financial and operational results for the full year 2023. See details of such conference call below. A supplemental investor deck can be accessed from the Company's investor relations website (https://ir.marti.tech) where it will remain available for six months.

Date:

 

April 16, 2024

Time:

 

3:30 p.m. Istanbul / 1:30 p.m. London / 8:30 a.m. New York Time

Dial-in:

 

877-485-3103 / +1 201-689-8890

Webcast & Replay & Archive Link:

 

https://event.choruscall.com/mediaframe/webcast.html?webcastid=qlMJcjkO

Non-GAAP Financial Measures

Certain financial information and data contained herein are not presented in accordance with generally accepted accounting principles of the United States ("GAAP") including, but not limited to, adjusted EBITDA, adjusted EBITDA margin and certain ratios and other metrics derived therefrom. We define these metrics as follows:

Adjusted EBITDA as depreciation, amortization, taxes, financial expenses (net of financial income) and one-time charges and non-cash adjustments, plus net income (loss). The one-time charges and non-cash adjustments are mainly comprised of customs tax provision expenses resulting from the one-time amendment of customs duties, period adjustments for the founders' salary which resulted from a one-time lump sum deferred payment made to the founders, and lawsuit provision expense which the Company does not consider the provision to be reflective of its normal cash operations.

Adjusted EBITDA margin as adjusted EBITDA/revenue.

Pre-depreciation contribution per ride is calculated by adding depreciation per ride to gross profit per ride.

These non-GAAP financial measures are not measures of financial performance in accordance with GAAP and may exclude items that are significant in understanding and assessing the Company's financial results. Therefore, these measures should not be considered in isolation or as an alternative to revenue, cash flows from operations or other measures of profitability, liquidity or performance under GAAP. You should be aware that the Company's presentation of these measures may not be comparable to similarly titled measures used by other companies. The Company believes these non-GAAP measures of financial results provide useful information for management and investors regarding certain financial and business trends relating to the Company's financial condition and results of operations. The Company believes the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company's financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. These non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non-GAAP financial measures and accordingly, should always be considered as supplemental financial results to those calculated in accordance with GAAP.

This financial information and data contained herein also includes certain projections of non-GAAP financial measures. Due to the high variability and difficulty in making accurate forecasts and projections of some of the information excluded from these projected measures, together with some of the excluded information not being ascertainable or accessible, the Company is unable to quantify certain amounts that would be required to be included in the most directly comparable GAAP financial measures without unreasonable effort. Consequently, no disclosure of estimated comparable GAAP measures is included and no reconciliation of the forward-looking non-GAAP financial measures is included.

About Marti:

Founded in 2018, Marti is Türkiye's leading mobility app, offering multiple transportation services to its riders. Marti operates a ride-hailing service that matches riders with car, motorcycle and taxi drivers, and operates a large fleet of rental e-mopeds, e-bikes, and e-scooters. All of Marti's offerings are serviced by proprietary software systems and IoT infrastructure. For more information, visit www.marti.tech.

Cautionary Statement Regarding Forward-Looking Information

This press release contains statements that are not based on historical fact and are "forward-looking statements'' within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. For example, statements about the anticipated growth, including the number of riders and registered drivers, of the ride-hailing business, the full year 2024 guidance, and the expected future performance, operational efficiencies and market opportunities of Marti and its two-wheeled electric vehicle business and ride hailing business, are forward-looking statements. In some cases, you can identify forward looking statements by terminology such as, or which contain the words "will," "aim," "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "future," "intend," "may," "plan," "possible," "predict," "project," "seek," "should," "target," "will," "would" and variations of these words or similar expressions. Such forward-looking statements are subject to risks, uncertainties and other factors. Actual results may differ materially from the expectations expressed or implied in the forward-looking statements as a result of known and unknown risks and uncertainties.

These forward-looking statements are based on estimates and assumptions that, while considered reasonable by Marti and its management are inherently uncertain and are subject to a number of risks and assumptions. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond Marti's control, are difficult to predict, and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. Known risks and uncertainties include but are not limited to: (i) the effect of the public listing of the Company's securities on its business relationships, performance, financial condition and business generally, (ii) risks that the business combination may disrupt the Company's current plans or divert management's attention from its ongoing business operations, (iii) the outcome of any legal proceedings that may be instituted against the Company or its directors or officers related to the business combination or otherwise, (iv) the Company's ability to maintain the listing of its securities on the NYSE American, (v) volatility in the price of the Company's securities due to a variety of factors, including without limitation changes in the competitive and highly regulated industries in which the Company currently or plans to operate, variations in competitors' performance and success and changes in laws and regulations affecting the Company's business, (vi) the Company's ability to implement business plans, forecasts, and other expectations, and identify opportunities, (vii) the risk of downturns in the highly competitive tech-enabled mobility services industry, (viii) the Company's ability to build its brand and consumers' recognition, acceptance and adoption of its brand, (ix) the risk that the Company may not be able to effectively manage its growth, including its design, research, development and maintenance capabilities, (x) technological changes and risks associated with doing business in an emerging market, (xi) risks relating to dependence on and use of certain intellectual property and technology and (xii) and other important factors or risks discussed in the Company's filings with the SEC, accessible on the SEC's website at www.sec.gov and the Investors Relations section of Company's website at https://ir.marti.tech. Investors should carefully consider the risks and uncertainties described in the documents filed by the Company from time to time with the SEC as most of the factors are outside the Company's control and are difficult to predict. As a result, the Company's actual results may differ from its expectations, estimates and projections and consequently, such forward-looking statements should not be relied upon as predictions of future events. The Company cautions not to place undue reliance upon any forward-looking statements, including its 2024 guidance and ride-hailing targets, which speaks only as to management expectations and beliefs as of the date they are made. The Company disclaims any obligation or undertaking to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than to the extent required by applicable law.

Consolidated Balance Sheets

(in thousands $)

December 31, 2022

 

December 31, 2023

ASSETS

 

 

 

Current assets:

Cash and cash equivalents

10,498

 

19,424

Accounts receivable, net

375

 

188

Inventories

3,332

 

2,612

Operating lease right of use assets

2,683

 

224

Other current assets

3,567

 

3,248

- VAT receivables

3,135

 

2,251

- Other

433

 

997

Total current assets

20,455

 

25,696

 

 

 

 

Non-current assets:

 

 

 

Property, equipment and deposits, net

19,423

 

13,531

- Property, equipment, net

19,328

 

13,526

- Vehicle deposits

95

 

5

Operating lease right of use assets

841

 

800

Intangible assets

160

 

184

Total non-current assets

20,423

 

14,515

Total assets

40,878

 

40,211

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

Current liabilities

 

 

 

Short-term financial liabilities, net

7,294

 

10,448

Accounts payable

3,574

 

2,796

Operating lease liabilities

2,153

 

413

Deferred revenue

1,328

 

1,550

Accrued expenses and other current liabilities

1,518

 

2,295

Total current liabilities

15,867

 

17,502

 

 

 

 

Non-current liabilities:

 

 

 

Long-term financial liabilities, net

16,380

 

54,803

Operating lease liabilities

674

 

278

Other non-current liabilities

357

 

326

Total non-current liabilities

17,412

 

55,407

 

 

 

 

Total liabilities

33,279

 

72,909

Stockholders' equity

 

 

 

Common stock

4

 

6

Share premium

54,336

 

40,461

Accumulated other comprehensive loss

(7,558)

 

(7,558)

Accumulated deficit

(39,183)

 

(65,606)

 

 

 

 

Total stockholders' equity

7,600

 

(32,698)

Total liabilities and stockholders' equity

40,878

 

40,211

Consolidated Income Statements

(in thousands $)

January 1 -

Dec 31, 2021

 

January 1 -

Dec 31, 2022

 

January 1 -

Dec 31, 2023

 

 

 

Revenue

16,999

 

24,988

 

20,030

Operating expenses:

 

 

 

 

 

Cost of revenues

(16,956)

 

(27,093)

 

(24,085)

Research and development expenses

(1,039)

 

(1,878)

 

(1,955)

General and administrative expenses

(6,054)

 

(9,041)

 

(15,130)

Selling and marketing expenses

(1,256)

 

(1,646)

 

(7,348)

Other income

134

 

187

 

658

Other expenses

(882)

 

(399)

 

(2,774)

Total operating expenses

(26,052)

 

(39,869)

 

(50,633)

Loss from operations

(9,053)

 

(14,881)

 

(30,603)

 

 

 

 

 

 

Financial income

180

 

2,567

 

3,561

Financial expense

(4,712)

 

(1,932)

 

(6,773)

Loss before income tax expense

(13,585)

 

(14,246)

 

(33,815)

 

 

 

 

 

 

Income tax expense

(888)

 

--

 

--

Net loss

(14,472)

 

(14,246)

 

(33,815)

 

 

 

 

 

 

Net loss attributable to stockholders

(14,472)

 

(14,246)

 

(33,815)

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

(7,467)

 

(337)

 

--

Total comprehensive loss

(21,940)

 

(14,583)

 

(33,815)

Consolidated Statements of Cash Flows

(in thousands $)

January 1 ?

Dec 31, 2021

 

January 1 ?

Dec 31, 2022

 

January 1 ?

Dec 31, 2023

Cash flow from operating activities

Net loss

(14,472)

 

(14,246)

 

(33,815)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

Depreciation and amortization

5,473

 

9,097

 

10,045

Loss on disposal of assets

179

 

144

 

567

Stock-based compensation, net of forfeitures

869

 

1,663

 

1,992

Interest expense-income, net

263

 

800

 

5,910

Foreign exchange (gains)/loss

4,086

 

(2,338)

 

(2,726)

Provision for inventory

--

 

--

 

63

Other non-cash

666

 

666

 

1,543

 

 

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

Account receivable

(192)

 

(210)

 

187

Inventory

(1,749)

 

(2,104)

 

658

Other assets and prepayments

(2,880)

 

(1,151)

 

96

Accounts payable

2,373

 

1,660

 

(777)

Deferred revenue

1,033

 

662

 

222

Income tax payable

888

 

(530)

 

--

Other liabilities

(572)

 

423

 

1,171

A. Net cash used in operating activities

(4,037)

 

(5,466)

 

(14,866)

 

 

 

 

 

 

Cash flow from investing activities

 

 

 

 

 

Purchases of vehicles

(22,005)

 

(7,186)

 

(4,087)

Purchases of other property, plant and equipment

(829)

 

(804)

 

(652)

Proceeds from disposal of property, plant and equipment

--

 

38

 

21

Purchases of intangible assets

(58)

 

(209)

 

(102)

B. Net cash used in investing activities

(22,892)

 

(8,160)

 

(4,820)

 

 

 

 

 

 

Cash flow from financing activities

 

 

 

 

 

Net proceeds from reverse acquisition

--

 

--

 

29,629

Proceeds from issuance of convertible notes

100

 

10,000

 

7,500

Proceeds from issuance of series B preferred stock

29,710

 

--

 

--

Proceeds from term loans

14,825

 

5,468

 

--

Payments of term loans

(1,541)

 

(4,209)

 

(7,202)

Payments on warrants

--

 

--

 

(1,315)

C. Net cash from financing activities

43,094

 

11,259

 

28,612

 

 

 

 

 

 

D. Increase (decrease) in cash and cash equivalents, and restricted cash

16,165

 

(2,367)

 

8,926

E. Effect of exchange rate changes

(6,451)

 

(351)

 

--

F. Net increase in cash and cash equivalents

9,713

 

(2,718)

 

8,926

G. Cash and cash equivalents at beginning of the year

3,502

 

13,216

 

10,498

Cash and cash equivalents at ending of the year

13,216

 

10,498

 

19,424

 

 

 

 

 

 

Supplemental disclosures of cash flow information:

 

 

 

 

 

Cash paid, received for:

 

 

 

 

 

Interest, net

(183)

 

(903)

 

(448)

Income taxes

--

 

(530)

 

--

Non-GAAP Reconciliations

Consolidated Adjusted EBITDA

(in thousands $)

2022

2023

Net loss

(14,246)

(33,815)

Depreciation and amortization

9,097

10,045

Financial income

(2,567)

(3,561)

Financial expense

1,932

6,773

Customs tax provision expense

78

32

Lawsuit provision expense

175

846

Stock based compensation expense accrual

1,658

1,989

Adjusted EBITDA

(3,873)

(17,692)

Adjusted EBITDA margin

(15.5%)

(88.3%)

Two-wheeled Electric Vehicle Service - Adjusted EBITDA

(in thousands $)

2022

2023

1H 2023

2H 2023

Net loss

(12,862)

(22,160)

(7,789)

(14,371)

Depreciation and amortization

9,097

10,045

4,672

5,373

Financial income

(2,567)

(3,561)

(2,720)

(842)

Financial expense

1,932

6,773

616

6,157

Customs tax provision expense

78

32

(78)

110

Lawsuit provision expense

175

846

67

779

Stock based compensation expense accrual

1,658

1,362

573

788

Adjusted EBITDA

(2,489)

(6,665)

(4,659)

(2,006)

Adjusted EBITDA margin

(10.0%)

(33.3%)

(49.1%)

(19.0%)

Two-wheeled Electric Vehicle Service - Cost of Revenues, excluding Fleet Depreciation

(in thousands $)

2022

2023

1H 2023

2H 2023

Cost of revenues

(26,922)

(24,085)

(13,018)

(11,067)

Fleet depreciation (Cost of revenues)

8,456

9,322

4,284

5,039

Cost of Revenues, excl. Fleet Depreciation1

(18,465)

(14,762)

(8,734)

(6,028)

  1. Cost of revenues, excl. fleet depreciation is calculated by subtracting fleet depreciation from cost of revenues.

Consolidated Pre-depreciation Contribution Profit per Ride

(in thousands $)

2022

2023

Revenue

24,988

20,030

Cost of revenues

(27,093)

(24,085)

Cost of revenues, excl. fleet depreciation1

(18,636)

(14,762)

Fleet depreciation (cost of revenues)

(8,456)

(9,322)

Gross profit

(2,104)

(4,055)

Fleet depreciation (cost of revenues)

8,456

9,322

Pre-depreciation contribution profit

6,352

5,267

Pre-depreciation contribution profit per ride2 ($)

0.22

0.33

  1. Cost of revenues, excl. fleet depreciation is calculated by subtracting fleet depreciation from cost of revenues.
  2. Pre-depreciation contribution per ride is calculated by adding depreciation per ride to gross profit per ride.

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