For the second time, Lime announces a profitable quarter of adjusted EBITDA – TechCrunch


Shared micromobility operator Lime is on track for third quarter Adjusted EBITDA profitability, marking the second profitable quarter in company history, according to CEO Wayne Ting. During the Wall Street Journal’s Tech Live event, Ting said COVID had gone from a “headwind to a tailwind,” heralding more prosperous times in the year ahead.

Seems familiar?

Around the same time last year, at the WSJ Future of Everything event, Ting also bragged about the company’s move beyond the financial woes of the pandemic and into Q3 profitability. . Lime said he was operating both positive cash flow and positive free cash flow, with profitability forecasts for the full year in 2021. Sadly, COVID got in the way again.

“The Delta variant caused additional lockdowns and delays in opening cities around the world, which impacted projected revenues,” Russell Murphy, senior director of corporate communications at Lime, told TechCrunch. . “Even without tourism and commuting returning to pre-COVID levels, we are pleased that demand has returned and we expect ridership to continue to increase in 2022.”

Ting said the growth in earnings is what made the difference this year. Third quarter revenue was about the same as the same quarter in 2019, roughly 1% to 2%, and it was not a profitable quarter. This means that while Lime was unable to generate more sales and revenue, she was able to spend her money and manage her operating costs much more effectively.

Adjusted EBITDA is a non-GAAP accounting measure that many startups use to provide a more comparable picture of their financial performance. Factors such as stock-based compensation for employees are often removed from Adjusted EBITDA, which can make it nearly impossible to truly understand a company’s cash flow position without an official filing with the company. DRY. Ting didn’t mention the positivity of cash flow at the event.

Over the past year or so, Lime has been doing things like rolling out their Gen4 scooters with swappable batteries, which can certainly help streamline the charging processes. Better quality scooters and bicycles that last longer also eliminate some of the significant costs of vehicle depreciation while boosting the economy of the unit. The company said it was also able to drive operational efficiencies through lessons learned from managing a large global micromobility fleet, but did not provide details.

“Activity is coming back even though some of our biggest use cases are still not back, so travel is not back, tourism is not back,” Ting said. “What we have found is that we have dramatically increased what we call ‘intercity travel’. People use us instead of alternatives because we are outdoors, single passenger, because people want a greener way to get around. And when I look forward to 2022, travel is going to come back to some extent, tourism is going to come back. We just announced the opening of trips from Europe, and this is all going to be a tailwind for next year. “

Lime also relies on changing consumer sentiment to increase its income, especially around younger generations and climate change.

“The main source of carbon pollution in the United States is transportation,” Ting said. “If we are to fundamentally solve transport carbon, we have to look for lighter alternatives like scooters and bicycles, and we have to invest in public transport. When you talk to young people, they feel it deeply and they change their behavior to cope with this moment.

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