#India #Bangalore #Zoomcar #Car Sharing

Zoomcar Reports Robust Fiscal Third Quarter Results for 2024

Zoomcar Holdings, Inc. (NASDAQ: ZCAR), a prominent player in India's car-sharing marketplace, has revealed its impressive financial performance for the fiscal third quarter ending December 31, 2024. The company reported significant growth across key metrics, signaling a successful strategy geared toward enhancing customer experience and optimizing operational costs.

Key Financial Highlights

During this quarter, Zoomcar achieved a record contribution profit of $1.28 million, which represents 52% of total revenue. This is a dramatic increase compared to the same period last year, when it posted a mere $0.21 million or 9% of revenue. The momentum is indicative of the improvements made in both customer engagement and host retention, which have reinforced the company's financial position.

An essential aspect of this growth was the increase in bookings, which rose by 19% year-over-year, from 86,917 bookings last year to 103,599 this quarter. Notably, the repeat user booking rate saw an impressive 2.0x increase, reflecting the growing loyalty of its customer base.

An analysis of operating expenses also shed light on the company’s strategic focus on cost reduction. There was a 28% drop in cost of revenue, alongside a 41% decrease in technology expenses and an astonishing 80% reduction in marketing costs compared to the same quarter last year. These proactive measures underscore Zoomcar's commitment to enhancing profitability while maintaining customer satisfaction.

Enhancements in Customer Experience

Zoomcar's efforts to refine the customer journey are reflected in the elevated satisfaction ratings. Average guest trip ratings soared from 4.16 in March 2024 to 4.70 by December 2024. This remarkable improvement echoes the company's sustained focus on quality service and user-friendly experiences.

In line with these advancements, the number of high-quality cars on the platform—rated over 4.5 out of 5—grew by 24% from 5,830 cars at the end of September to 7,247 by the end of December. This significant increase reinforces Zoomcar’s strategic initiative to enhance host retention by providing high-standard vehicles for customers.

Leadership Insights

CEO Hiroshi Nishijima expressed optimism about the company’s future, stating, “We’re witnessing the positive impacts of our ongoing investments in customer experience. The significant rise in repeat users and host retention illustrates our successful approach to scaling operations and optimizing costs. Achieving this milestone of consecutive quarters with positive contribution profit is a testament to our hard work and strategy.”

The upcoming earnings call on February 14, 2025, will provide stakeholders with deeper insights into these promising results, along with expectations for future growth. Interested parties are encouraged to register to participate in this significant event.

About Zoomcar

Founded in 2013 and headquartered in Bengaluru, India, Zoomcar is dedicated to revolutionizing transportation through its car-sharing marketplace. The platform connects car hosts and guests, offering a varied selection of vehicles at competitive prices, ultimately promoting sustainable transportation solutions throughout the country.

In conclusion, Zoomcar’s fiscal Q3 results demonstrate not only significant revenue and profit growth but also a strong commitment to enhancing user experience. As the company continues to innovate and expand its services, it positions itself as a leader in the evolving landscape of transportation in India.