ISTANBUL - Marti Technologies, Inc. (NYSE American: MRT), a leading mobility service provider in Türkiye, disclosed its first-half financial performance for 2024, showing a revenue of $8.4 million and a net loss of $21.9 million. Despite the net loss, the company achieved operational targets in its ride-hailing services and saw a significant improvement in its two-wheeled electric vehicle rental business.
The company's adjusted EBITDA for the first half stood at negative $11.3 million, a 28% decrease from the previous year, attributed to substantial investments in its ride-hailing service. However, Marti is on track to reach its full-year guidance of $16.6 million in revenue and negative $22.5 million in adjusted EBITDA.
Marti's ride-hailing service, which commenced in October 2022, has gained traction with 1.1 million unique riders and 171 thousand registered drivers. The company has been able to maintain a 59% market share in the two-wheeled electric vehicle rental segment, despite not charging fees for its ride-hailing service yet.
In February 2024, Marti acquired Zoba, an AI-powered SaaS platform that enhances fleet optimization for two-wheeled electric vehicle operators. With Zoba's technology, Marti's vehicles achieved up to 2.4 times higher daily rides per deployed vehicle in the second quarter of 2024. This strategic acquisition has already reimbursed its costs within the first six months.
The company also reported a 54% decrease in cash and cash equivalents by the end of the first half, primarily due to investments in the ride-hailing service. To enhance shareholder value, Marti initiated a share repurchase program, allowing the company to buy back up to $2.5 million of its ordinary shares at a maximum price of $3.30 per share through October 9, 2024.
Despite a decline in average daily rides per vehicle in the two-wheeled electric vehicle segment, Marti managed to offset this with an increase in average revenue per ride. The company's focus on operational efficiencies led to a $3.0 million reduction in operating costs for the first half of 2024.
Marti's management remains optimistic about the company's trajectory, reaffirming their full-year 2024 guidance and emphasizing their commitment to growth and operational efficiency. The information in this article is based on a press release statement from Marti Technologies.
In other recent news, Marti Technologies, a prominent urban mobility provider, has reported significant growth in its ride-hailing service, surpassing mid-year targets. As of June 30, 2024, the company has exceeded its goal with over 1.1 million riders and more than 170,000 registered drivers. Marti aims to further boost these numbers to 1.3 million riders and 190,000 drivers by the end of September 2024.
Marti's ride-hailing riders increased by 121% from December 31, 2023, to June 30, 2024, while the number of registered drivers grew by 60%. This expansion reflects the high demand for the company's services throughout Turkey. Consultancy group McKinsey & Company estimates the taxi market in Turkey to be valued between $9 billion and $12 billion as of 2021, and projects that ride-hailing services could expand the market to $15 billion to $20 billion by 2030.
In addition to these developments, Marti Technologies announced a change in its executive team, appointing Oguz Erkan as its new Chief Financial Officer. Erkan, with a 22-year career in finance and strategy, steps into the role following the departure of the company's previous CFO, Cem Yasar Ozey. These are among the recent developments at Marti Technologies, reflecting its ongoing strategic moves to meet ambitious targets and capitalize on the growing ride-hailing market.
InvestingPro Insights
To complement Marti Technologies' (NYSE American: MRT) financial report, InvestingPro data provides additional context to the company's current situation. As of the latest available data, Marti is quickly burning through cash, which aligns with the reported 54% decrease in cash and cash equivalents mentioned in the article. This rapid cash burn is likely due to the substantial investments in the ride-hailing service and the acquisition of Zoba.
An InvestingPro Tip indicates that Marti may have trouble making interest payments on debt. This could be a concern given the company's current net loss and negative adjusted EBITDA. Another relevant InvestingPro Tip suggests that analysts do not anticipate the company will be profitable this year, which is consistent with Marti's reported net loss and full-year guidance.
Despite these challenges, it's worth noting that Marti has shown a strong return over the last three months, according to InvestingPro data. This positive performance might reflect investor optimism about the company's market share in the two-wheeled electric vehicle rental segment and the potential of its ride-hailing service.
For investors seeking a more comprehensive analysis, InvestingPro offers 15 additional tips for Marti Technologies, providing a deeper understanding of the company's financial health and market position.
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