Helbiz Reports Revenue Increase Despite Declining Cash Reserves

A Shift from Shared Micromobility to Diversification

Helbiz, a company that started as a shared micromobility operator, has since expanded its services to include ghost kitchens, media streaming, and most recently, a taxi service. The startup reported its second-quarter earnings on Monday after the bell, continuing a trend of underwhelming financials.

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A History of Disappointing Earnings

Since Helbiz’s public debut in August 2021 via the SPAC route, its earnings reports have painted a picture of a company struggling to make ends meet. Despite reporting a slight increase in revenue quarter-over-quarter and year-over-year, Monday’s report tells a similar story.

Context for Q2 Earnings

In late June, Helbiz signed a letter of intent to acquire Wheels, another shared micromobility operator, by the end of the year. However, this acquisition has been shrouded in controversy, with reports emerging that employees in the US and Serbian offices have had to wait for delayed payments.

Delayed Payments and Lack of Company Structure

Sources close to TechCrunch revealed that aside from late paychecks, Helbiz is facing issues with vehicle deliveries. The company’s acquisition of Wheels will be mainly stock-based, but a $1 million deposit has been made to enter into the letter of intent. Additionally, $100,000 has been invested in operating licenses, categorized as intangible assets.

Helbiz’s Acquisition Plans

The CFO mentioned that Helbiz will deploy more vehicles, pursue micro-mobility licenses, and drive expansion in Asia Pacific. The company recently launched shared e-scooter operations in Australia and expanded its existing fleets in the US and Italy. However, no guidance was provided for the third quarter or the full year.

Turbulent 2021 Earnings

In a separate article, we discussed Helbiz’s punishing 2021 earnings report. The company has struggled to stay afloat amidst rising competition in the shared micromobility space.

Key Takeaways

Revenue Growth: Despite a slight increase in revenue quarter-over-quarter and year-over-year, Monday’s report tells a similar story.
Delayed Payments: Employees in US and Serbian offices have had to wait for delayed payments, further exacerbating the company’s financial struggles.
Acquisition Plans: Helbiz will deploy more vehicles, pursue micro-mobility licenses, and drive expansion in Asia Pacific.

Helbiz’s Future Uncertain

As the company continues to navigate a challenging market, its future remains uncertain. The acquisition of Wheels has sparked controversy, and delayed payments have left employees anxious about their financial security. Only time will tell if Helbiz can turn things around and regain momentum in the shared micromobility space.

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