Helbiz announces second quarter 2022 financial results
New york--(business wire)--helbiz inc. (“helbiz” or “the company”) (nasdaq: hlbz), a global leader in micro-mobility, today reported its financial results for the three and six months ended june 30, 2022. second quarter and first half 2022 business and financial highlights financial first half revenue of $7.7 million, up 92% y/y second quarter revenue of $4.4 million up 46% y/y raised $10 million via new issue of convertible notes in the second quarter rationalized cost structure to more efficiently use cash and reduce future funding requirements mobility quarterly active platform users (“qapus”) up 90% q/q, trips up 71% q/q mobility revenue of $2.7 million, up 72% q/q driving toward profitable mobility operations by reducing cost of revenue by 17% y/y expanded global footprint with entry into australia market media completion of the first serie b season as streaming partner generating $6 million over the season amazon prime video integration with helbiz live serie b 2022-2023 season available on helbiz live on all devices and smart tvs in italy kitchen helbiz kitchen revenue nearly doubled sequentially as awareness builds completed administrative steps for ita airways project helbiz chief executive officer salvatore palella said, “now that we have established a solid foundation for growth, we are intensely focused on operating profitably. our primary services have been introduced to consumers, our operating infrastructure is in place, and now we need to drive scale while spending efficiently and effectively. we saw an early indication of success, with mobility cost of revenue declining meaningfully in q2.” commenting on other achievements in the quarter, palella said, “performance in q2 was solid, with substantial top line growth and clear progress in the micro-mobility business. we expanded into australia, our first step in asia pacific, and grew our existing footprint with new licenses in the u.s. and italy. we also expanded the size of the fleet and the types of e-vehicles offered.” palella said, “even as we drive toward profitable operations in the near-term, we are not losing sight of the massive opportunity in front of us. we are also strengthening the foundation for long-term growth. the due diligence for the transaction with wheels is underway. furthermore, last week we announced our entry into taxi hailing, a natural extension of our mobility services. we look forward to sharing more news on these long-term initiatives in the months ahead.” helbiz chief financial officer giulio profumo said, “from top to bottom, the whole team at helbiz is focused on getting to profitable operations as quickly as possible. we are cutting unnecessary costs and spending more effectively on necessary expenses. the reduction in mobility cost of revenue this quarter is gratifying, an early indication that our efforts are seeing results. we intend to aggressively manage costs in the near term, even as we also invest to drive aggressive growth.” profumo said, “second quarter revenue grew significantly both yearly and sequentially, due to the incremental contribution from media and kitchen. importantly, growth was solid in our core mobility business and we are improving margins as we bring down mobility cost of revenue. even with our cost-control focus, we are investing effectively and efficiently in talent, advertising, marketing, and r&d to sustain our pace of expansion.” profumo said, “to fund our multiple growth opportunities, we raised another $5 million in july and august. looking forward, we will deploy more vehicles, pursue more micro-mobility licenses, and drive expansion in asia pacific. we are excited about our potential in the months ahead.” conference call details what: 2022 q2 results when: monday, august 15, 2022 time: 4:30 p.m. edt where: live dial-in details: webcast link north america (toll-free): +1 (800) 715-9871 international: +1 (646) 307-1963 conference id: 4146974 replay available: https://investors.helbiz.com/ about helbiz helbiz is a global leader in micro-mobility services. launched in 2015 and headquartered in new york city, the company offers a diverse fleet of vehicles including e-scooters, e-bicycles and e-mopeds all on one convenient, user-friendly platform with over 40 licenses in cities around the world. helbiz utilizes a customized, proprietary fleet management technology, artificial intelligence and environmental mapping to optimize operations and business sustainability. helbiz is expanding its urban lifestyle products and services to include live streaming services, food delivery, financial services and more, all accessible within its mobile app. for additional information, please visit www.helbiz.com. forward-looking statements certain statements made in this press release are “forward-looking statements” within the meaning of the “safe harbor” provisions of the private securities litigation reform act of 1995. forward-looking statements may be identified by the use of words such as “anticipate”, “believe”, “expect”, “estimate”, “plan”, “outlook”, and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. these forward-looking statements reflect the current analysis of existing information and are subject to various risks and uncertainties. as a result, caution must be exercised in relying on forward-looking statements. due to known and unknown risks, actual results may differ materially from the company’s expectations or projections. the following factors, among others, could cause actual results to differ materially from those described in these forward-looking statements: (i) the failure to meet projected development and production targets; (ii) changes in applicable laws or regulations;(iii) the affect of the covid-19 pandemic on the company and its current or intended markets; and (iv) other risks and uncertainties described herein, as well as those risks and uncertainties discussed from time to time in other reports and other public filings with the securities and exchange commission (the “sec”) by the company. additional information concerning these and other factors that may impact the company’s expectations and projections can be found in its periodic filings with the sec, including its quarterly report on form 10-q for the quarter ended june 30, 2022. the company’s sec filings are available publicly on the sec's website at www.sec.gov. any forward-looking statement made by us in this press release is based only on information currently available to helbiz and speaks only as of the date on which it is made. helbiz undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise, except as required by law. helbiz, inc. condensed consolidated balance sheets (in thousands, except share and per share data) (unaudited) june 30, december 31, 2022 2021 assets current assets: cash and cash equivalents $ 2,480 $ 21,143 accounts receivables 1,788 451 contract assets – media rights 1,806 2,758 vat receivables 2,843 2,992 prepaid and other current assets 4,458 4,681 total current assets 13,375 32,025 property, equipment and deposits, net 11,234 7,616 goodwill 9,791 10,696 intangible assets, net 1,493 2,075 other assets 1,539 1,212 total assets $ 37,433 $ 53,623 liabilities and stockholders’ deficit current liabilities: account payables $ 14,182 $ 10,536 accrued expenses and other current liabilities 4,000 3,806 deferred revenues 3,651 1,585 warrant liabilities 210 1,596 short term financial liabilities and capital leases, net 30,597 25,473 total current liabilities 52,640 42,996 other non-current liabilities 502 419 non-current financial liabilities, net 17,557 18,057 total liabilities 70,699 61,472 commitments and contingencies (a) stockholders’ deficit preferred stock, $0.00001 par value; 100,000,000 shares authorized; none issued and outstanding — — class a common stock, $0.00001 par value; 285,774,102 shares authorized and; 26,393,183 and 16,289,209 shares issued and outstanding at june 30, 2022 and december 31, 2021, respectively. 114,888 101,454 class b common stock, $0.00001 par value; 14,225,898 shares authorized and; 14,225,898 shares issued and outstanding at june 30, 2022 and december 31, 2021. — — accumulated other comprehensive (loss) income (1,150 ) (621 ) accumulated deficit (147,004 ) (108,682 ) total stockholders’ deficit (33,266 ) (7,849 ) total liabilities and stockholders’ deficit $ 37,433 53,623 (a) commitments and contingencies leases the company entered into various non-cancellable operating lease agreements for office facilities, e-mopeds leases, corporate vehicles’ licensing, and corporate housing entered into by the company with lease periods expiring through 2024. these agreements require the payment of certain operating expenses, such as non-refundable taxes, repairs and insurance and contain renewal and escalation clauses. the terms of the leases provide for payments on a monthly basis and sometimes on a graduated scale. the company recognizes rent expense on a straight-line basis over the lease period and has accrued for rent expense incurred but not paid. lease expenses under operating leases were $746 and $1,484 for the three and six months ended on june 30, 2022, respectively; and $657 and $1,119 for the three and six months ended on june 30, 2021, respectively. additionally, the company entered into various non-cancellable capital lease agreements for 3,750 escooters and r&d equipment with financial institutions. the capital lease agreements included within financial liabilities on the condensed consolidated balance sheet as of june 30, 2022 amounted to $2,792, of which $2,649 is related to the 3,750 escooters and $143 is related to the r&d equipment. the capital lease agreements for the 3,750 escooters have a duration between 12 to 18 months while the r&d equipment agreement has a duration of 36 months. the escooters/r&d equipment under the lease are collateral for the lease obligations and are included within property, plant and equipment on the condensed consolidated balance sheet as of june 30, 2022 (refer to note. 7 property, equipment and deposits, net for further information). lease expenses under capital leases were accounted as interest expenses for $83 and $112 for the three and six months ended on june 30, 2022, respectively. lease expenses under capital leases were accounted as interest expenses for $83 and $112 for the three and six months ended on june 30, 2022, respectively. operating leases capital leases year ending december 31: 2022 895 2,193 2023 588 777 2024 124 60 thereafter 41 15 total minimum lease payments 1,648 3,045 less: amounts representing interest not yet incurred 252 present value of capital lease obligations 2,792 less: current portion 2,701 long-term portion of capital lease obligations 91 litigation from time to time, the company may become involved in legal proceedings arising in the ordinary course of business. there are currently no material legal proceedings against the company, and the company is not aware of investigations being conducted by a governmental entity into the company. the company does not disclose litigation with a remote possibility of an unfavorable outcome. helbiz, inc. condensed consolidated statements of operations and comprehensive loss (in thousands, except share and per share data) (unaudited) three months ended june 30, six months ended june 30, 2022 2021 2022 2021 $ 4,358 $ 2,982 $ 7,670 $ 3,997 10,267 6,073 21,606 10,577 6,436 2,638 13,115 6,592 3,415 1,275 6,013 2,408 638 588 1,382 1,164 20,756 10,574 42,116 20,741 (16,398 ) (7,592 ) (34,447 ) (16,744 ) (1,512 ) (566 ) (3,492 ) (1,064 ) (2,065 ) — (2,065 ) — 441 — 1,386 (4,127 ) (199 ) 12 (507 ) (260 ) (3,335 ) (554 ) (4,679 ) (5,452 ) (7 ) (18 ) (12 ) (33 ) $ (19,740 ) $ (8,164 ) $ (39,137 ) $ (22,229 ) $ — $ (37 ) $ — $ (72 ) $ (19,740 ) $ (8,201 ) $ (39,137 ) $ (22,301 ) $ (0.57 ) $ (0.36 ) $ (1.21 ) $ (1.01 ) 34,737,852 22,666,617 32,438,971 22,134,945 (19,740 ) (8,164 ) (39,137 ) (22,229 ) $ (206 ) $ (46 ) $ (529 ) $ (39 ) $ (19,946 ) $ (8,210 ) $ (39,666 ) $ (22,268 ) (b) includes stock-based compensation for employees and services received, as follows three months ended june 30, six months ended june 30, 2022 2021 2022 2021 stock-based compensation cost of revenue $ 2 $ 5 $ 12 $ 17 general and administrative 804 423 1,799 1,593 sales and marketing 161 47 343 214 research and development 34 71 98 307 total stock-based compensation expenses $ 1,001 $ 546 $ 2,252 $ 2,131 helbiz, inc. condensed consolidated statements of cash flows (in thousands, except share and per share data) (unaudited) six months ended june 30, 2022 2021 operating activities net loss $ (39,137 ) $ (22,229 ) adjustments to reconcile net loss to net cash provided by (used in) operating activities: depreciation and amortization 2,661 3,331 loss on disposal of assets 116 238 non-cash interest expenses and amortization of debt discount 2,971 509 change in fair value of warrant liabilities (1,386 ) 4,128 change in fair value of accounts payables (304 ) — (gain) or loss on extinguishment of debts 2,065 — share-based compensation 2,252 2,131 other non-cash items related to licensing — 748 changes in operating assets and liabilities: prepaid and other current assets 2,617 (38 ) security deposits (5 ) 22 accounts receivables (1,337 ) (360 ) accounts payables 3,935 (196 ) accrued expenses and other current liabilities 2,263 1,240 other non-current liabilities 83 (137 ) net cash used in operating activities (23,206 ) (10,613 ) investing activities purchase of property, equipment, and deposits (3,586 ) (4,913 ) deposit for letter of intent (1,000 ) purchase of intangible assets (117 ) (308 ) acquisition of business, net of cash acquired — (1,987 ) net cash used in investing activities (4,703 ) (7,208 ) financing activities proceeds from issuance of financial liabilities, net 10,248 18,156 repayment of financial liabilities (1,495 ) (2,505 ) proceeds from issuance of financial liabilities, due to related party - officer 380 2,010 proceeds from settlement of subscription receivables — 4,033 proceeds from sale of class a common shares, net — 955 payments of offering costs and underwriting discounts and commissions — (1,193 ) net cash provided by financing activities 9,133 21,456 increase (decrease) in cash and cash equivalents, and restricted cash (18,776 ) 3,635 effect of exchange rate changes 306 (39 ) net increase (decrease) in cash and cash equivalents, and restricted cash (18,470 ) 3,596 cash and cash equivalents, and restricted cash, beginning of year 21,253 790 cash and cash equivalents, and restricted cash, end of year $ 2,783 $ 4,386 reconciliation of cash, cash equivalent and restricted cash to the consolidated balance sheet cash and cash equivalents 2,480 4,277 restricted cash, included in current assets 193 — restricted cash, included in other assets, non-current 110 109 supplemental disclosure of cash flow information cash paid for: interest $ 517 $ 556 income taxes, net of refunds $ 12 $ 2 non-cash investing & financing activities issuance of class a common shares – for warrant exercise $ — $ 10,567 issuance of class a common shares – for settlement of lease — 1,747 issuance of common stock – mimoto smart mobility s.r.l. acquisition — 10,389 convertible notes converted into common shares 14,326 — increasing of financial liabilities for derecognition of beneficial conversion features (bcf) - adoption of asu 2020-06 3,371 — purchase of vehicles with financing agreement 3,328 — prepaid expenses related to d&o insurance, included in account payable 402 — issuance of warrants - in conjunction with convertible notes issuance 603 — issuance of common shares – commitment shares and share based compensation for convertible notes issuance 695 — note: for more accompanying notes to the condensed consolidated financial statements above, please refer to the company’s quarterly report on form 10-q filed with securities and exchange commission (the “sec”) for the quarter ended june 30, 2022.
