JET Posts 24% EBIT With 24k E-Scooters in 2023

Welcome to the 18th edition of our OTD Newsletter, and extending a warm welcome to our new subscribers.

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In this newsletter:

• JET’s 2023 Financials

• Q3 2024 Results of Micromobility.com Inc

• Paid Subscriber Section

  • JET’s P&L snapshot (USD) and Annual Accounts PDF

  • Micromobility.com Inc’s P&L snapshot and 10Q filing PDF

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Presenting you yet another profitable (EBIT positive, just to be clear) e-scooter sharing company. JET, based in Kazakhstan, was founded in 2021 and has rapidly become the largest e-scooter sharing company in Central Asia and the Caspian region by fleet size and geographic reach. Operating in seven countries with over 35,000 e-scooters, JET expanded into Latin America last year and has already emerged as a market leader in Brazil.

In 2023, JET generated $9.8m in revenue, up ~32% from 2022 where they generated $7.4m in revenue.

JET was profitable from their start and in 2023, their EBIT was $2.41m, which is 24% of the revenue. EBITDA was $3.37m (34%).

JET has a business model similar to SWING where they manage their own fleet and also have a franchise model. At the end of 2023, JET directly managed 9.4k scooters and JET’s franchise partners managed 17.9k scooters.

GMV for 2023 was $17.02m, up 120% from 2022. GMV from their franchise model is expected to double in 2024.

Revenue Split by Segment

• e-scooter Sharing: $2.65m

• Technical Support & License: $2.60m

• Scooter Sales: $2.31m

• Provision of Software: $1.52m

• Others: $0.74m

Revenue Split by Geography

• Kazakhstan: $7.55m

• Mongolia: $1.25m

• Georgia: $610k

• Uzbekistan: $195k

• Armenia: $80k

• Azerbaijan: $56.8k

• Belarus: $35.4

• Brazil: $26.1k

Own Ops (trips)

• Kazakhstan: 6.4m

• Georgia: 235k

Partner Ops

• Kazakhstan: 2m

• Mongolia: 1.78m

• Uzbekistan: 1.67m

• Armenia: 1.16m

• Belarus: 538k

• Georgia: 465k

• Azerbaijan: 436k

• Brazil: 96k

About 50% of JET’s rides were through subscribers in 2023. They also improved fleet utilization by 10% using dynamic pricing.

At the end of 2023, JET had $1.32m cash in hand, up from $91k in 2022.

Similar to what we noticed at RYDE and SWING, JET’s G&A expenses were low, at just 13% of their revenues.

Based on 10-month data, JET’s 2024 revenues are projected to be $11.89m, up ~70% compared to 2023, with $2.58m EBIT. They expect to have 35.5k vehicles this year, up from 23.8k vehicles in 2023

JET recently issued Kazakhstan's first green bonds at 20% interest on the Astana International Exchange as a private company, raising $6.5 million USD.

It is great to get to know profitable shared micromobility companies and I’m glad we have four identified already. They all have few things in common - did not raise large capital, G&A <20% of revenues and two of them with a franchise model where a big part of the fleets are operated by franchise partners.

This is yet another sign that e-scooter sharing can be a profitable business. If one of the major players—like Lime, Dott, Voi, or Bird—achieves positive EBIT soon, it would mark a significant milestone for the entire industry.

Check this panel from the recent Micromobility Industries Europe conference where I sat down with Founders and Executives from Dott, SWING, RYDE and Segway to talk about how shared micromobility can be profitable.

ps: If you are profitable (EBIT positive) shared micromobility company, we would like to write about you. Drop a mail to prabin@otd.today.

In Q3 2024, Micromobility.com Inc (previously known as Helbiz) generated $775k in revenue, down ~36% and posted a net profit of $4.97m.

The company derecognized assets and liabilities linked to Wheels Inc to the amount of $7.5m, resulting in the positive net result.

Revenue Split by Segment

• Mobility in Europe: $317k

• Media: $7k

• Other Revenue: $451k

Revenue Split by Geography

• Italy $324k

• Serbia $451k

European mobility revenues decreased 65% compare to last year.

G&A for the quarter was $867k, which is 111% of their revenues. Net loss from operations was $1.6m

Micromobility.com Inc has suspended all mobility operations in the US due to high cost and sold Wheels Inc to Singapore based Overseas Moped Investment and Holding Pte Ltd. for $1.

They also wrote off $1.39m in vehicle deposits paid to an e-scooter manufacturer.

The Company is involved in a lawsuit filed by Greenvision Capital Holdings LLC in New York, alleging a breach of a registration rights agreement and seeking $4m in damages.

Recently, the company was ordered to pay back an investor ~$2.2m by the Supreme Court of the State of New York.

Micromobility.com Inc used to report monthly active users and ride metrics, which they skipped for the first time.

At the end of Q3, they had ~$3.2m in payroll liabilities and ~$326k in VAT payables, with just $141k in cash and cash equivalents.

Accumulated losses so far stand at $253m.

The stock is down 83.1% year to date, with marketcap hovering around $1m.

This concludes our newsletter. If you would like to stay updated everyday, do follow @OTDToday and @prabinjoel on Twitter.

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