Helbiz’s third-quarter earnings show a company that’s burning cash, making no revenue gains and losing riders year after year. However, Helbiz’s booming sports streaming service made some small gains.
The micromobility SPAC reported third-quarter earnings Monday, the same day as its only publicly traded competitor, Bird. Neither company is performing well operationally or in the stock market. Bird issued a warning of growing concern and admitted to overestimating your income for two years. Both companies trade below $1.00 and risk the stock market delisting.
Helbiz ended the quarter with $3.7 million in revenue, down from last year’s $4.7 million, and just $3.3 million in cash. Meanwhile, the company is also spending more and losing more from operations. Helbiz’s operating expenses reached $26.5 million, up from $24.4 million spent on Helbiz in the third quarter of last year. The operating loss was $22.8 million, compared to $19.7 million last year.
The biggest part of the revenue loss came from Helbiz’s mobility segment. Scooter and bike-sharing brought in just $2.5 million in revenue this quarter, compared with $3.9 million in the third quarter of 2021. Helbiz’s media division, a sports streaming platform, brought in more revenue this year than last year to $1.1 million compared to $760,000 last year.
Helbiz reported $129,000 in “other revenue,” which likely refers to the company’s ghost kitchen service, indicating some growth in this questionable business foray. The company recently partners with Glovo and Deliveroo in Italy to feature its Helbiz Kitchen restaurants on both food delivery apps.
In regulatory filing, Helbiz says it believes “increasing expansion markets is fundamental to the success of our core business for the foreseeable future.” Still, compared to last year, the number of trips made by Helbiz riders has decreased by 30.7%. Strangely, between Q2 and Q3, Helbiz’s quarterly unique user count increased slightly by about 4,820 additional unique users. However, during the same period, the number of trips taken decreased by about 78,000 trips, suggesting that perhaps more users decided to ride Helbiz and then thought that once might be enough.
In October, Helbiz completed the acquisition of Wheels, promising to deliver “over $25 million in revenue for the full year of 2022,” by leveraging Wheels’ user base of 5 million riders and expanding into new markets like Los Angeles. For the first nine months of 2022, Helbiz brought in $11.9 million in revenue. The company will need to earn another $13 million in the fourth quarter, typically the slowest in the micromobility industry due to the colder weather, to meet that goal.
Helbiz is relying on a lifeline in the form of a Standby Share Purchase Agreement (SEPA) with YA II PN, a hedge fund managed by Yorkville Advisors Global. Helbiz will seek to sell up to $13.9 million of its Yorkville shares at any time in the next 24 months.
The company said it may need to seek additional equity or debt financing, but that there is no guarantee it will be able to raise funds on acceptable terms, or at all.
Perhaps investors were encouraged by Helbiz’s SEPA or streaming gains, as Helbiz shares are up 3.09% today. Shares are trading at $0.22.