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Helbiz Announces Second Quarter 2022 Financial Results

1H22 Revenue Up 92% Y/Y, Q2 Revenue Up 46% Y/Y
Strong Mobility Metrics: QAPUs Up 90% Q/Q And Trips Up 71% Q/Q
Helbiz Live and Kitchen Generate 44% of 1H22 Revenue vs. Zero in 1H21
Intense Focus on Cost Efficiency, Cash Preservation and Drive Toward Profitable Operations

NEW YORK, August 15, 2022--(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.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220815005631/en/

1H22 Revenue Up 92% Y/Y, Q2 Revenue Up 46% Y/Y Strong Mobility Metrics: QAPUs Up 90% Q/Q And Trips Up 71% Q/Q Helbiz Live and Kitchen Generate 44% of 1H22 Revenue vs. Zero in 1H21 Intense Focus on Cost Efficiency, Cash Preservation and Drive Toward Profitable Operations (Graphic: Business Wire)

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

Revenue

 

$

4,358

 

 

$

2,982

 

 

$

7,670

 

 

$

3,997

 

Operating expenses:

 

 

 

 

 

 

 

 

Cost of revenue (B)

 

 

10,267

 

 

 

6,073

 

 

 

21,606

 

 

 

10,577

 

General and administrative (B)

 

 

6,436

 

 

 

2,638

 

 

 

13,115

 

 

 

6,592

 

Sales and marketing (B)

 

 

3,415

 

 

 

1,275

 

 

 

6,013

 

 

 

2,408

 

Research and development (B)

 

 

638

 

 

 

588

 

 

 

1,382

 

 

 

1,164

 

Total operating expenses

 

 

20,756

 

 

 

10,574

 

 

 

42,116

 

 

 

20,741

 

 

 

 

 

 

 

 

 

Loss from operations

 

 

(16,398

)

 

 

(7,592

)

 

 

(34,447

)

 

 

(16,744

)

 

 

 

 

 

 

 

 

Non-operating income (expenses), net

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(1,512

)

 

 

(566

)

 

 

(3,492

)

 

 

(1,064

)

Gain (loss) on extinguishment of debts

 

 

(2,065

)

 

 

 

 

 

(2,065

)

 

 

 

Change in fair value of warrant liabilities

 

 

441

 

 

 

 

 

 

1,386

 

 

 

(4,127

)

Other income (expenses), net

 

 

(199

)

 

 

12

 

 

 

(507

)

 

 

(260

)

Total non-operating income (expenses), net

 

 

(3,335

)

 

 

(554

)

 

 

(4,679

)

 

 

(5,452

)

 

 

 

 

 

 

 

 

Income Taxes

 

 

(7

)

 

 

(18

)

 

 

(12

)

 

 

(33

)

Net loss

 

$

(19,740

)

 

$

(8,164

)

 

$

(39,137

)

 

$

(22,229

)

 

 

 

 

 

 

 

 

Deemed Dividends and Deemed Dividends equivalents

 

$

 

 

$

(37

)

 

$

 

 

$

(72

)

 

 

 

 

 

 

 

 

Net loss per share attributable to common stockholders

 

$

(19,740

)

 

$

(8,201

)

 

$

(39,137

)

 

$

(22,301

)

 

 

 

 

 

 

 

 

Net loss per share attributable to common stockholders, basic and diluted

 

$

(0.57

)

 

$

(0.36

)

 

$

(1.21

)

 

$

(1.01

)

 

 

 

 

 

 

 

 

Weighted-average number of shares outstanding used to compute net loss per share, basic and diluted

 

 

34,737,852

 

 

 

22,666,617

 

 

 

32,438,971

 

 

 

22,134,945

 

 

 

 

 

 

 

 

 

Net loss

 

 

(19,740

)

 

 

(8,164

)

 

 

(39,137

)

 

 

(22,229

)

 

 

 

 

 

 

 

 

Other comprehensive (loss) income, net of tax:

 

 

 

 

 

 

 

 

Changes in foreign currency translation adjustments

 

$

(206

)

 

$

(46

)

 

$

(529

)

 

$

(39

)

 

 

 

 

 

 

 

 

Net loss and comprehensive income, excluded Deemed Dividends and Deemed Dividends equivalents

 

$

(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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220815005631/en/

Contacts

For media inquiries:
Matt Rosenberg
Head of Communications, NA
press@helbiz.com
+1 (646) 726-2146

For investor inquiries:
The Blueshirt Group
Gary Dvorchak, CFA
gary@blueshirtgroup.com
+1 (323) 240-5796