Helbiz reports increased revenue but decreased cash reserves – TechCrunch

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Helbiz started as a shared micromobility business, but has since expanded to include ghost kitchens, media streaming and, more recently, a taxi service. The company released its second-quarter results on Monday after the bell. The startup was the first scooter operator to go public via the SPAC route, and many in the industry wish it didn’t after consistently meh income reports.

Since Helbiz’s public debut in August 2021, its earnings reports have shown that a company is burning through dwindling cash reserves, not generating enough revenue to offset high operating costs and continuing to s moving away from core operations into new, and sometimes strange, business units.

While Helbiz’s revenue edged up quarter-over-quarter and year-over-year, Monday’s report tells a similar story.

Before digging into the finances, a bit of background. At the end of June, Helbiz signed a letter of intent to acquire Wheels, another shared micromobility operator, by the end of the year. In the midst of this, there were several times when Helbiz employees in the US and Serbian offices had to wait for late payments. Sources told TechCrunch that aside from late paychecks, Helbiz suffers from chronically late scooter shipments and a general lack of business structure.

Despite lackluster earnings, shares of Helbiz are trading higher than public market rival Bird, which also reported earnings today. Today, at $1.43 after hours, Helbiz is up 12.6%. This is largely attributable to Helbiz CEO Salvatore Palella’s acquisition of 252,636 shares of the company at an average price of $3, a transaction valued at $757,908. Moreover, this number is still far from the $10.92 at which Helbiz opened.

Helbiz Q2 2022 review

Helbiz closed the second quarter with revenue of $4.4 million, up 46% from the same period last year and 33% from last quarter. Mobility, or shared micromobility rides, accounted for more than half of total second quarter revenue at $2.7 million, compared to $1.6 million in the first quarter.

Helbiz reported about 1.2 million rides in the second quarter, nearly double its rides in the first quarter, but only a slight year-over-year increase. Unlike Bird, Helbiz doesn’t seem to list the number of vehicles he has on the ground, nor his trips per vehicle per day.

The remaining $1.7 million in revenue came from “the additional contribution from Media and Kitchen,” Helbiz chief financial officer Giulio Profumo said in a statement.

During the third quarter of 2021, Helbiz launched Helbiz Live, a sports streaming platform that currently broadcasts Italian Serie B football, NCAA football and basketball and MLB games. Helbiz expects to generate $6 million in the first Series B season, some of which should have already been made in Q2 2022.

Around the same time Helbiz launched Live, it also introduced Helbiz Kitchen, a ghost kitchen delivery service. The company was coy about how much revenue the new service would generate, but Kitchen apparently delivered Something. Helbiz said that in the first half of the year, revenue nearly doubled sequentially. Of course, doubling down from scratch isn’t exactly a massive achievement.

“Importantly, growth has been solid in our core mobility business and we are improving our margins as we reduce the cost of mobility revenues,” Profumo said. “Even with our goal of cost control, we are effectively and efficiently investing in talent, advertising, marketing and R&D to maintain our pace of expansion.”

Helbiz’s operating expenses fell slightly quarter-on-quarter, but at $20.8 million, they nearly doubled year-on-year. Operating loss was down $16.4 million from $18 million in the first quarter, but Helbiz’s net loss of $19.7 million was roughly flat quarter-on-quarter.

The company ended the quarter with $2.5 million in cash, up from $1 million last quarter, but down from $21 million in the same period last year. Helbiz had to raise $10 million this quarter via a new issue of convertible notes. In July and August, Helbiz also raised an additional $5 million to fund its “multiple growth opportunities”, according to Profumo.

In the first half of the year, Helbiz used approximately $4.7 million in cash to fund its micromobility operations. The company has paid automakers $3.5 million as bail for e-bikes, e-scooters and e-mopeds, vehicles that Helbiz plans to deliver throughout the year. And while Helbiz’s acquisition of Wheels will be primarily stock, Helbiz has filed a $1 million deposit to close the letter of intent and has invested $100,000 in operating licenses, which it has filed. as intangible assets.

“Going forward, we will deploy more vehicles, pursue more micro-mobility licenses and drive expansion in Asia-Pacific,” the CFO said. Helbiz recently launched shared electric scooter operations in Australia and expanded its existing fleets in the United States and Italy.

The company provided no guidance for the third quarter or the full year.

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