Marti Technologies, Inc.

Hello, everyone, and thank you for joining us for Marty Technologies' first half 2025 conference call. Before we begin, I'd like to mention that today's earnings release and slide presentation are available on Marty's investor relations website at ir.marty.tech, where you will also find links to our SEC filings, along with other information about Marty. Joining me on today's call are Oz Alper-Octum, Marty's founder and CEO, and John Tuck-Durgan, Marty's co-founder, president, and COO. Before we begin, I'd like to remind everyone that statements made on this call as well as in today's earnings release and accompanying slide presentation contain forward-looking statements regarding our financial outlook, business plans, objectives, goals, and strategies, and other future events and developments, including statements about the market and revenue potential of our products and services. These forward-looking statements are certain to risks and uncertainties that may cause actual results to differ materially from those projected. These risks and uncertainties include those described in our filings with the SEC, today's earnings release, and the accompanying slide presentation, and are based on our current expectations and beliefs as of today, September 22, 2025. In addition, our discussion today will include references to certain supplemental non-GAAP financial measures. which should be considered in addition to and not as a substitute for our GAAP financial results. We use these non-GAAP measures in evaluating and managing Marty's business and believe they provide useful information to our investors. Reconciliations of the non-GAAP measures to the corresponding GAAP measures, where appropriate, can be found in today's earnings release and slide presentation, as well as our filings with the SEC. With that, I will now turn the call over to Albert.

Thank you all for joining us today for MARTI's first TAP 2025 earnings call. MARTI is Turkey's leading mobility super app, bringing together six transportation services on a single platform. These include our ride-hailing marketplace for cars, motorcycles, and taxis, as well as our owned and operated rental services for e-bikes, e-scooters, and e-mopeds. Collectively, our ride-hailing operations and two-wheeled electric vehicle rentals provide users with a seamless, flexible, and a sustainable way to move around Turkiye. Three years ago, we made a key strategic business decision to evolve our business model to align with Turkiye's growing mobility demands, transitioning our primary focus from two-wheeled electric vehicles to ride-hailing. We began monetizing our ride-hailing service in October 2024, and in January 2025, we introduced a dynamic pricing model to further enhance efficiency and rider and driver satisfaction. We believe that today's results demonstrate that this strategic move is working. We have strong momentum and are consistently exceeding operational targets for both unique ride hailing riders and registered ride hailing drivers. At the same time, in our two-wheeled electric vehicle service, we have continued to implement critical profitability enhancing measures and have successfully deployed efficiency initiatives, resulting in a notable reduction in both operating losses and capital requirements. Importantly, these efficiency initiatives have helped us channel field team attention and resources to our higher margin ride-hailing service, translating into improved financial performance. We believe 2025 will be a pivotal year for scale and financial performance, with strong revenue growth and a significant improvement in adjusted EBITDA as a move swiftly to capture the growing opportunity for ride-hailing in Turkey. We are on track to almost double our revenue from $18.7 million in 2024 to $34 million in 2025 and continue to drive improvement in adjusted EBITDA. Lastly, the monetization of our ride-hailing and our personal advantage are significantly enhancing our cash generation power and capital efficiency. We believe this bolstered financial strength positions us well to scale operations further and capture Turkey's long-term mobility market opportunity with increased resilience and flexibility. We are the number one urban mobility app on both iOS and Android app stores in Turkey. We are the only operator operated offering car hailing and motorcycle hailing services at scale in the country and the largest electric vehicle operator in Turkey. We have served over 128.6 million rides to 6.4 million unique riders since our launch. In the first half of this year, we consistently outperformed our ride-hailing targets hitting 2.28 million unique ride-hailing riders and 327,000 registered ride-hailing drivers. Although we are the youngest player in Turkey's urban mobility market, we are the clear market leader. It's also important to note that the top five urban mobility apps in the country, four are operated by local players. This is in line with global benchmarks, which have demonstrated that local companies are often successful in mobility markets because of their operational advantages, deep local market knowledge, regulatory agility, strong rider and driver relationships, tailored service offerings, and trust and brand perception in the countries they respectively operate in. Last year in 2024, we solidified our ride-hailing business in four of Turkey's largest cities, Istanbul, Ankara, Izmir, and Antalya. This strong foundation set the stage for our previously announced 2025-2026 investment plan. In 2025, we began executing on this plan and expanded into six additional metropolitan areas, Bursa, Konya, Adana, Kocaeli, Mersin, and Kayseri, with operations now spanning in 10 cities, representing approximately half of Turkey's population and nearly two-thirds of its GDP. We have significantly expanded our ride-hailing service reach, To accelerate adoption in these new markets, we are prioritizing growth and do not foresee monetizing services in these cities in 2025. This strategic expansion is a key step in our long-term vision. However, we're not just expanding our footprint, but we're building the infrastructure and the capabilities to make MARTA the go-to ride-hailing platform across the country. In 2025, we've prioritized building the right organizational structure to support our rapid, wide-hailing growth. We have structured our organization to ensure we can manage operations at scale, and as a part of our transformation, we introduced several new departments that strengthen our technological, commercial, and operational capabilities. These new departments include AI engineering to optimize matching and pricing, growth and CRM functions to drive engagement and loyalty, performance and brand marketing to strengthen our market position, and business and competitive intelligence to sharpen our decision-making. To give you a sense of the growth in the scale of our organization, at the beginning of this year, we had approximately 120 team members dedicated to ride hailing. By the end of the first half of 2025, our ride hailing team has increased to approximately 180 members, and we expect to reach around 260 team members by the end of this year. To further accelerate growth of our ride hailing service, we also launched a major redesign of our app in 2025. The key change was placing ride hailing more prominently at the center of our user experience, making it faster and more intuitive for riders to book a trip. Beyond the design of our app, we also streamlined our onboarding, improved our search and navigation, and optimized the booking flow to reduce friction. We are encouraged by the impact of these decisions. Since launch, our conversion rate has increased by 2%, moving more visitors, meaning more visitors are successfully completing their write requests. In addition, since launch, our average app store rating is 4.9 out of 5, reflecting positive user sentiment. We're also seeing stronger user engagement. Weekly and monthly active users have increased by 16% and 12% respectively. And importantly, user comments highlight that new design feels simpler, cleaner, and more reliable. Overall, we believe the redesign not only strengthens our brand perception, but also directly drives higher adoption and usage of ride hailing, which is central to our long-term growth strategy. As a result of our new city launches, the investments we're making in the growing of our organization and our app redesign, our number of unique ride hailing riders have grown 107% year over year in the first half of this year. from 1.1 million to 2.3 million. Our number of registered ride-hailing drivers grew by 92% year-over-year, from 171,000 to 327,000. We intend to continue investing in the cost-effective growth of our ride-hailing service in 2025 and beyond, and aim to reach 3.3 million riders and 458,000 registered drivers by the end of 2025. We achieved accelerated growth and substantial scale in riders and registered drivers with limited capital investments, demonstrating our commitment to capital efficient growth of our ride-hailing business. Moving forward, we intend to make targeted investments to leverage multiple growth opportunities, including increasing organic growth in existing cities, improving our rider and driver experiences, initiating loyalty incentives, launching new cities to serve a greater share of Turkey's urban population, refining our dynamic pricing engine and increasing our take rate we believe these initiatives will support our path toward capturing an estimated three billion dollar annual revenue opportunity in the ride-hailing business here is how we calculate the size of the revenue opportunity with every global benchmark we see that the introduction of ride-hailing service into a market uncovers unmet demand significantly eclipsing the demand for taxi service prior to the introduction of ride hailing. This is because ride hailing offers a significantly better, more accessible customer experience than taxis across all dimensions, including vehicle availability, price, and driver and vehicle quality. For example, in New York City, ride hailing increased the size of the taxi market by 1.6 times. There were approximately 800,000 daily rides in Istanbul, our largest city, when we launched our ride hailing operations. We believe that what happened in new york is now happening in istanbul and we expect that there will be 1.3 million daily ride hailing rides in istanbul at steady state istanbul's taxi market accounts for about 45 percent of turkey's taxi market so assuming similar market dynamics in turkey's other cities we project that there will eventually be about 2.9 million daily ride hailing rides in turkey this is about 1 billion rides a year or approximately $10 billion of potential gross annual booking value. At an assumed take rate of 30%, in line with global benchmarks, this equates to $3 billion of total annual revenue potential for Turkey's ride-hailing market maturity. As we continue to prioritize ride-hailing as our strategic focus, this also shaped how we manage our two-wheeled electric vehicle operations. In addition to channeling more field team attention and resources toward our higher margin ride-hailing business, we also implemented operational efficiency projects in our two-wheeled electric vehicle business to increase profitability. Our strategic focus on our higher margin ride-hailing business and operational efficiency projects decreased our total cost of revenues by 25% compared to the same period last year, in addition to our gross profit margin improving by 49%. Throughout the first half of 2025, the behavior of our riders supported our decision to offer multiple transportation services through our single app. We believe, and the data continues to show, that this multi-modal offering is aligned with rider performance. 70% of our e-bikes, 84% of our e-mopeds, and 40% of our car hailing, and 83% of our motorcycle hailing riders use these services after previously being introduced to MARTA by using another MARTA service. Our existing services serve as an excellent cost-free rider acquisition channel for our new services. Furthermore, 70% of our e-bike, 80% of our e-moped, 26% of our car-hailing, and 83% of our motorcycle-hailing riders subsequently used other MARTA services after their first e-bike, e-moped, car-hailing, or motorcycle-hailing rides, respectively. These data points all show an overwhelming rider preference for multimodal transportation services. Serving multimodal riders also creates economic benefits for markets. Rides per rider is three times higher, and revenue per rider is 2.7 times higher for our multimodal riders than for our single-service riders. These statistics reinforce our decision to invest in the balanced growth of our multimodal service. I'd now like to turn it over to my partner, Jungle, to present our financials.

Thank you, Watesh. Looking at our KPIs, we increased our total rides from $13.7 million in the first half of 2024 to $19.2 million in the first half of 2025. We also increased our unique riders. We used our services at least once during the half year from $1.4 to $1.7 million. Both increases were primarily driven by an increase in ride-hailing rides and riders. Rides per unique rider increased to 11.4 in the first half of the year. As a result of increased availability and rider awareness of our service offering across cities, which drove higher utilization. Our number of unique ride-hailing riders since our launch increased from 1.1 million to 2.3 million in the first half. while the number of registered drivers increased from 171,000 to 327,000 during the same time period. As a result of the gradual decommissioning of our existing two-wheeled electric vehicle fleet, our number of average daily two-wheeled electric vehicles deployed decreased from 34.6,000 in the first half of 2024 to 24.8,000 in the first half of 2025. We generated $14.3 million of revenue in the first half of the year. This is a 70% increase compared to the $8.4 million of revenue that we generated during the same period in 2024. This was primarily due to the monetization of our ride hailing service. We reduced our cost of revenues by 25% from $9.9 million in the first half of 24 to $7.4 million in the first half of 25 as a result of increased field team attention and resources to our higher margin ride hailing business. and a continued focus on profitability-enhancing measures in our two-wheeled electric vehicle service. These projects included optimizing the numbers of our field staff, repair and maintenance staff, as well as our logistics vehicle counts, increasing the number of on-field repairs as a share of total repairs, and increasing our usage of refurbished electronic and spare parts. Our general and administrative expenses increased by 35% from $9.1 million in the first half of 24 $12.2 million in the first half of 2025, driven by increased share-based compensation expense of $4.7 million. Excluding this non-cash share-based compensation expense, G&A expenses increased to $7.5 million, or an increase of about 13% compared to the $6.6 million in G&A excluding share-based compensation expense in the first half of 24. This increase is primarily attributable to the investments that we're making in our ride-hailing team. As a result, our adjusted EBITDA improved by $5.4 million from negative 11.3 in the first half of 2024 to negative six in the first half of 2025. We believe the accelerating performance of our ride-hailing business represents a pivotal milestone for our company's growth and profitability By the end of 2025, we reiterate our plans to nearly double our annual revenue from $18.7 million to $34 million and to improve our adjusted EBITDA by $2.3 million. This 2025 guidance incorporates the 2025-2026 investment plan we shared earlier, which includes the launch of ride hailing in six new cities and the expansion of our ride hailing team to support at-scale operations. We thank you for participating today, and we'd be glad to answer any questions that you might have.