Helbiz Announces First Quarter 2022 Financial Results, Revenue Up 226%

Mobility Revenue Increased 55%, Quarterly Active Platform Users Increased 66%

Helbiz Unlimited Subscriptions Revenue Up 76%

NEW YORK--(BUSINESS WIRE)--Helbiz Inc. (“Helbiz” or “the Company”) (Nasdaq: HLBZ), a global leader in micro-mobility and the first company in its industry to be publicly listed in the U.S., today reported its financial results for the quarter ended March 31, 2022 on Form 10-Q filed today with the U.S. Securities and Exchange Commission.

First Quarter 2022 Business and Financial Highlights

Financial

• Revenue of $3.3 million up 226% from the same period of 2021
• Operating expenses up due to investment in growth: media rights, marketing, talent, and expenses related to public listing
• Non-cash stock-based compensation expenses was approximately 6% of the total operating expenses
• Approximately 3,000 leased e-Scooters delivered on March 1, expanding fleet in service

Mobility

• Mobility Revenue increased by 55% to $1.6 million, driven by pay-per-ride
• Helbiz Unlimited subscriptions grew by 76%
• Started operating in Miami Dade County, first of any mobility company
• Quarterly Active Platform Users (“QAPUs”) increased by 66%, and trips grew by 58%
• Partnership with Google Maps expands visibility of Helbiz service

Media

• Media generated revenue of $1.7 million, 50% of total quarterly revenue
• Revenue from commercialization of media rights was $1.3 million
• Added Major League Baseball (MLB) on the Helbiz Live platform in Italy

Helbiz Founder and Chief Executive Officer Salvatore Palella said, “We kicked off 2022 with solid growth across our diversified lines of business, especially due to the growing interest in Helbiz Unlimited, which bundles mobility, live streaming and food delivery services. Alongside our strong relationships with local governments, we made progress in strategic partnerships across our mobility and media businesses.”

Palella continued, “We are negotiating a potential M&A transaction that could substantially increase our footprint and revenue. Parallel to this, we are applying for licenses and in discussions with new markets in the U.S., Europe and Asia Pacific to expand our service footprint. As demand recovers from pre-COVID levels, we expect faster growth in ride utilization and city expansion.”

Helbiz Chief Financial Officer Giulio Profumo said, “The top line in Q1 grew substantially from one year ago, due to both our core mobility business and our emerging media initiative. Looking ahead, we are delivering vehicles to enlarge our fleet as planned. Our success is a function of the effort of our team around the world, and our willingness to make strategic investments. To fund growth, we recently secured another $10 million of capital via two convertible notes and we are well-positioned to capitalize on the progress of the industry as the year progresses.”

Conference Call Details

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Webcast: https://edge.media-server.com/mmc/p/n7tvmo5k

Replay Available: https://investors.helbiz.com/

About Helbiz

Helbiz is a global leader in micro-mobility services. Launched in 2015 and headquartered in New York City, the company offers a diverse fleet of vehicles including e-scooters, e-bicycles and e-mopeds all on one convenient, user-friendly platform with over 40 licenses in cities around the world. Helbiz utilizes a customized, proprietary fleet management technology, artificial intelligence and environmental mapping to optimize operations and business sustainability. Helbiz is expanding its urban lifestyle products and services to include live streaming services, food delivery, financial services and more, all accessible within its mobile app. For additional information, please visit www.helbiz.com.

Forward-Looking Statements

Certain statements made in this press release are “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “anticipate”, “believe”, “expect”, “estimate”, “plan”, “outlook”, and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements reflect the current analysis of existing information and are subject to various risks and uncertainties. As a result, caution must be exercised in relying on forward-looking statements. Due to known and unknown risks, actual results may differ materially from the Company’s expectations or projections. The following factors, among others, could cause actual results to differ materially from those described in these forward-looking statements: (i) the failure to meet projected development and production targets; (ii) changes in applicable laws or regulations;(iii) the affect of the COVID-19 pandemic on the Company and its current or intended markets; and (iv) other risks and uncertainties described herein, as well as those risks and uncertainties discussed from time to time in other reports and other public filings with the Securities and Exchange Commission (the “SEC”) by the Company. Additional information concerning these and other factors that may impact the Company’s expectations and projections can be found in its periodic filings with the SEC, including its Annual Report on Form 10-Q for the fiscal year ended March 31, 2022. The Company’s SEC filings are available publicly on the SEC's website at www.sec.gov. Any forward-looking statement made by us in this press release is based only on information currently available to Helbiz and speaks only as of the date on which it is made. Helbiz undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise, except as required by law.

HELBIZ, INC.   Condensed Consolidated Balance Sheets (in thousands, except share and per share data) (unaudited)
	March 31,		December 31,
	2022		2021
ASSETS
Current assets:
Cash and cash equivalents	$	1,115	$	21,143
Accounts receivables		1,300		451
Contract assets – Media rights		1,033		2,758
VAT receivables		4,460		2,992
Prepaid and other current assets		5,547		4,681
Total current assets		13,455		32,025
Property, equipment and deposits, net		11,091		7,616
Goodwill		10,414		10,696
Intangible assets, net		1,825		2,075
Other assets		1,240		1,212
TOTAL ASSETS	$	38,025	$	53,623
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Account payable	$	8,577	$	10,536
Accrued expenses and other current liabilities		3,597		3,806
Deferred revenues		3,701		1,585
Warrant liabilities		651		1,596
Short term financial liabilities and capital leases, net		26,071		25,473
Total current Liabilities		42,597		42,996
Other non-current liabilities		495		419
Non-current financial liabilities, net		17,960		18,057
TOTAL LIABILITIES		61,052		61,472
Commitments and contingencies		(A)
STOCKHOLDERS’ DEFICIT
Preferred stock, $0.00001 par value; 100,000,000 shares authorized; none issued and outstanding		—		—
Class A Common stock, $0.00001 par value; 285,774,102 shares authorized and; 18,699,956 and 16,289,209 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively.		105,180		101,454
Class B Common stock, $0.00001 par value; 14,225,898 shares authorized and; 14,225,898 shares issued and outstanding at March 31, 2022 and December 31, 2021.		—		—
Accumulated other comprehensive (loss) income		(944)		(621)
Accumulated deficit		(127,263)		(108,682)
Total Stockholders’ deficit		(23,027)		(7,849)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT	$	38,025		53,623

(A) Commitments and Contingencies

Leases

The Company entered into various non-cancellable operating lease agreements for office facilities, e-mopeds leases, corporate vehicles’ licensing, and corporate housing entered by the Company with lease periods expiring through 2024. These agreements require the payment of certain operating expenses, such as non-refundable taxes, repairs and insurance and contain renewal and escalation clauses. The terms of the leases provide for payments on a monthly basis and sometimes on a graduated scale. The Company recognizes rent expense on a straight-line basis over the lease period and has accrued for rent expense incurred but not paid. Lease expenses under operating leases were $525 for the three months ended on March 31, 2022, and $464 for the three months ended on March 31, 2021.

Additionally, in June 2021, the Company entered into a lease agreement for 2,950 eScooters with a European financial institution. This agreement, which has a duration of 12 months, became effective on March 1, 2022, following the delivery of the vehicles to the Company’s warehouse. The Company shall pay a leasing fee of $224 (Euro 202), on a monthly basis, for a cumulative amount of $2,691 (Euro 2,424). At the end of the leasing agreement, the Company has the option to purchase the leased assets for a cumulative amount of $42 (Euro 38). Based on the terms of the purchase option the Company categorized the agreement as capital lease. The eScooters under the lease are collateral for the lease obligations and are included within property, plant and equipment on the condensed consolidated balance sheet as of March 31, 2022. Lease expenses under capital leases were accounted as interest expenses for $29 for the three months ended on March 31, 2022.

	Operating leases		Capital leases
Year ending December 31:
2022		1,158		2,238
2023		489		490
2024		16		—
Thereafter		—		—
Total minimum lease payments		1,663		2,728
Less: Amounts representing interest not yet incurred				311
Present value of capital lease obligations				2,417
Less: Current portion				1,759
Long-term portion of capital lease obligations				433

Litigation

From time to time, the Company may become involved in legal proceedings arising in the ordinary course of business. There are currently no material legal proceedings against the Company, and the Company is not aware of investigations being conducted by a governmental entity into the Company. The Company does not disclose litigation with a remote possibility of an unfavorable outcome

 

HELBIZ, INC.   Condensed Consolidated Statements of Operations and Comprehensive Loss (in thousands, except share and per share data) (unaudited)
	Three months ended March 31,
	2022		2021
Revenue	$	3,312	$	1,015
Operating expenses:
Cost of revenues (B)		11,339		4,502
Research and development (B)		744		576
Sales and marketing (B)		2,598		1,133
General and administrative (B)		6,681		3,956
Total operating expenses		21,362		10,167
Loss from operations		(18,050)		(9,152)
Non-operating income (expenses), net
Interest expense, net		(1,981)		(498)
Change in fair value of warrant liabilities		945		(4,127)
Other income (expenses), net		(307)		(286)
Total non-operating income (expenses), net)		(1,343)		(4,911)
Income Taxes		(4)		(2)
Net loss	$	(19,397)	$	(14,065)
Deemed Dividends and Deemed Dividends equivalents	$	—	$	(35)
Net loss attributable to common stockholders	$	(19,397)	$	(14,100)
Net loss per share attributable to common stockholders, basic and diluted	$	(0.64)	$	(0.65)
Weighted-average number of shares outstanding used to compute net loss per share, basic and diluted		30,140,090		21,603,274

Net loss	$	(19,397)	$	(14,065)
Other comprehensive (loss) income, net of tax:
Changes in foreign currency translation adjustments	$	(323)	$	(27)
Net loss and comprehensive income, excluded Series B Dividends	$	(19,720)	$	(14,092)

(B) Includes stock-based compensation for employees and services received, as follows

	Three months ended March 31,
	2022		2021
Stock-based Compensation:
Cost of revenues		10		12
Research and Development		64		236
Sales and marketing		182		166
General and administrative		995		1,269
Total Stock-based Compensation	$	1,252	$	1,683

HELBIZ, INC.   Condensed Consolidated Statements of Cash Flows (in thousands, except share and per share data) (unaudited)
	Three months ended March 31,
	2022		2021
Operating activities
Net loss	$	(19,397)	$	(14,065	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization		1,296		1,248
Loss on disposal of assets		55		148
Non-cash interest expenses and amortization of debt discount		1,911		60
Change in fair value of warrant liabilities		(945)		4,127
Share-based compensation		1,252		1,683
Other non-cash items related to licensing		—		104
Changes in operating assets and liabilities:
Prepaid and other current assets		(188)		(3)
Security deposits		143		20
Accounts receivable		(849)		(5)
Accounts payable		(1,801)		137
Accrued expenses and other current liabilities		1,908		457
Other non-current liabilities		76		(18)
Net cash used in operating activities		(16,539)		(6,106)
Investing activities
Purchase of property, equipment, and deposits		(2,926)		(4,506)
Purchase of intangible assets		(111)		(236)
Net cash used in investing activities		(3,037)		(4,742)
Financing activities
Proceeds from issuance of financial liabilities, net		113		14,362
Repayment of financial liabilities		(556)		(2,432)
Proceeds from issuance of financial liabilities, due to related party - Officer		275		—
Proceeds from settlement of Subscription receivables		—		4,033
Proceeds from sale of Class A common shares, net		—		905
Payments of offering costs and underwriting discounts and commissions		—		(1,050)
Net cash provided by financing activities		(168)		15,818
Increase (decrease) in cash and cash equivalents, and restricted cash		(19,744)		4,970
Effect of exchange rate changes		(115)		(26)
Net increase (decrease) in cash and cash equivalents, and restricted cash		(19,858)		4,944
Cash and cash equivalents, and restricted cash, beginning of year		21,253		790
Cash and cash equivalents, and restricted cash, end of year	$	1,395	$	5,734
RECONCILIATION OF CASH, CASH EQUIVALENT AND RESTRICTED CASH TO THE CONSOLIDATED BALANCE SHEET
Cash and cash equivalents		1,115		3,557
Restricted cash, included in Current assets		170		2,156
Restricted cash, included in Other assets, non-current		110		21
Supplemental disclosure of cash flow information
Cash paid for:
Interest	$	69	$	438
Income taxes, net of refunds	$	—	$	2
Non-cash investing & financing activities
Issuance of Class A common shares – for warrant exercise	$	—	$	10,567
Issuance of Class A common shares – for settlement of lease		—		1,747
Convertible debts converted into common shares		6,810		—
Increasing of Financial liabilities for derecognition of Beneficial conversion features (BCF) - Adoption of ASU 2020-06		3,371		—
Purchase of vehicles with financing agreement		2,388		—
Prepaid expenses related to D&O insurance, included in Account payable		1,269		—
Issuance of common shares - for settlement of Account payable		10		—