Helbiz, Inc.

Giulio Profumo said revenue was impacted by headwinds in mobility, especially unfavorable FX, but the company achieved solid top-line growth year-to-date through September 30, 2022. Net loss narrowed by 13%, mainly because mobility cost of revenue fell 20%; overall cost of revenue was down 15% in the quarter. Mobility contributed 67% of total revenue in Q3 2022, but that revenue declined 37%, while media revenue increased 42% in Q3 2022. In constant currency, mobility revenue would have been 12% higher in Q3 2022. Operating expenses rose sequentially because of an impairment of mobility assets, and the impairment made up 39% of total OpEx; Helbiz also noted about $800,000 in non-cash equity-based compensation. Cash and equivalents were $3.3 million at quarter-end. Looking ahead, management said fourth-quarter revenue should be up quarter-over-quarter and full-year revenue up year-over-year, helped by a balanced operating setup, and it highlighted plans to expand mobility, launch insurance, and close Wheels.

Salvatore Palella emphasized that the quarter reflected meaningful progress in cost efficiency and margins, with reductions in operations, administration, headcount, and marketing starting in Q2 and continuing to help drive toward profitability. He framed mobility as the core business, saying operating efficiency improved, fleet productivity rose, and European operations were partly externalized to lower costs. He also pointed to expansion into Spain, a new e-bike model, and the WeTaxi partnership as steps toward a broader mobility ecosystem, while saying Wheels should add further operating efficiency once closed. His tone was cautious but optimistic, stressing confidence despite macroeconomic weakness and currency pressure.

Giulio Profumo focused on profitability, liquidity, and the specific drivers of the quarter. He said mobility revenue fell because of fewer trips and the euro-dollar exchange rate, but mobility cost of revenue was down 20% thanks to better operating efficiency and externalizing part of European operations, which helped bring total cost of revenue down 15%. He also said media revenue rose 42% in Q3, but that the business carries relatively fixed and substantial costs, so management is reconsidering how to operate it. On the balance sheet, he said cash and equivalents were $3.3 million at the end of Q3, and that Helbiz recently entered an equity line of credit allowing it to sell up to $13.9 million in common equity if it chooses.

Analysts and shareholders pressed management on delisting risk after the stock traded below $1, and Giulio said Helbiz is monitoring the situation, will seek a NASDAQ extension to cure the deficiency, and may consider a reverse split subject to approval if needed. Questions also asked how partnerships affect the business; Jonathan said deals like WeTaxi, OneFootball, and Deliveroo expand the user base, rely on partners’ market reach, and can lift revenue with less overhead. Management was also asked whether the taxi service competes with Lyft or Uber, and Salvatore framed it instead as an addition to Helbiz’s core micromobility offering. When asked about 2023 priorities, Salvatore pointed to closing Wheels, expanding B2B and monthly subscriptions, and growing partner services such as taxi and insurance.