Micromobility.com (MCOM) Q3 2024 earnings summary

Executive summary

• Suspended US mobility operations and sold Wheels Lab, Inc. in Q3 2024 to reduce cash burn; now focused on European mobility and software services.

• Revenue from continuing operations fell 37% year-over-year to $775K for Q3 2024 and 79% to $1.54M for the nine months, mainly due to exiting unprofitable markets and early termination of media contracts.

• Net income for Q3 2024 was $4.97M, driven by a $6.63M gain from discontinued operations (sale of Wheels), offsetting a $1.66M loss from continuing operations.

• Significant cost reductions across all expense categories, including G&A, sales and marketing, and R&D, in line with the strategy to decrease cash burn.

Financial highlights

• Q3 2024 revenue from continuing operations: $775K (down 37% year-over-year); nine months: $1.54M (down 79%).

• Q3 2024 net income: $4.97M (vs. $9.48M net loss in Q3 2023), due to $6.63M gain from discontinued operations.

• Operating loss from continuing operations: $584K in Q3 2024 (vs. $5.5M in Q3 2023); nine months: $5.42M (vs. $29.78M).

• Cash and cash equivalents at September 30, 2024: $141K.

• Financial liabilities, net, increased 15% to $16.97M from December 2023, mainly due to related party promissory notes and accrued interest.

Outlook and guidance

• Company expects to continue funding operations through debt and equity financing; ongoing need for additional capital.

• No plans to restart US mobility operations in the near future; focus remains on European markets and software services.