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spk00: Thank you for standing by and welcome to the HelloBiz Third Quarter 2021 Earnings Conference Call. Currently, all participants are in listen-only mode. As a reminder, today's program may be recorded. And now I'd like to introduce your host for today's program, Gary Dvorak with the Blue Shirt Collar, excuse me, with the Blue Shirt Group. Please go ahead, sir.
spk02: Thank you.
spk01: Hello, everyone, and welcome to Hellbiz third quarter 2021 results conference call. With us today, our founder and chief executive officer, Salvatore Paglia, and chief financial officer, Giulio Profumo, who will review the operating and financial highlights. We issued our financial results press release today after the market closed. It's available via news wires and on our website at investors.hellbiz.com. A replay of the conference call will be available later today on the investor relations page of our website. Please note that our press release and this conference call contain forward-looking statements that are subject to risk and uncertainties. These forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors. Hellbiz can give no assurance that these statements will prove to be correct. We have no obligation to update these statements. We will also discuss certain forward-looking non-GAAP financial measures which are not prepared in accordance with generally accepted accounting principles. We urge you to review the discussion of our non-GAAP financial measures and the risks associated with our business that are described in the safe harbor provision for forward-looking statements and our filings with the SEC. I will now turn the call over to Salvatore to begin. Salvatore? Thank you, Gary, for the call.
spk03: Thank you, thank you everyone to be on this call. I'm really excited and happy to share with you our first quarter. I think this is a great opportunity also to share some achievement and be sure that you all understand that what is the company looking forward for the next quarter too. We're pleased to share our Q3 result for the first time as a public traded company. Our operating and financial results demonstrate that the early transaction we are seeing. We have more seating in both the U.S. and the European side, growing our user base and trips substantially. Mobility is our main business, and we are really happy to share opening of more seating and a substantial order we placed a couple of weeks ago, around 25,000 vehicle order ready to be on the street by the cool one. That's what it means. mean that the company was able to raise capital, around 60 million, including the IPO, and to not have issue for the supply chain part. That means that our scooter and our bike that we order, and also part of Immopat, will be on the road by the beginning of the next year. This means that we are going to increase our revenue substantially, and will be also very important for opening new cities, especially in the United States, where we decide to invest always more and opening more cities as much as we can. Our team is always working on opening new cities. We have places to share in the last couple of months opening of California, and we are going to increase also our city value, not only in area where we are limited by the weather, but also in area like Florida and California where the weather is not an issue for our business. Elbit is not only mobility. As you guys know now, Elbit is increased to become a lifestyle brand, and we decide to enter in two different other business this year. One is food delivery. through our biggest, through our ghost kitchen, the biggest ghost kitchen in Europe. We are really happy to include the food delivery for our, for all the user, but also in free for our Elbitz Unlimited user. We're going to back on this point. Our kitchen is now, we're now open also in Rome. Last week, we announced an important partnership with the former Alitalia, now called Ita Hallways. and we are going to open an Elbitz Kitchen in Rome in the next 60 days. Also with Elbitz Kitchen, we are looking to expand in the United States, and we are considering lots of opportunity in the U.S. I'm sure in the next couple of weeks we will back on this point, and we will make sure that also Elbitz Kitchen will have a presence in the United States. Elbit is not only media and kitchen. In June this year, we decided to launch also a media division that is very important to use the business and especially have our users do more using our unlimited subscription. Elbit Media is able to launch an OTT service called Elbit Live. Elbit Live is going to be our brand for the OTT service that is included in the HealthBeats Unlimited subscription, but also can be subscribed in a separate way for cities where we are not present through mobility or kitchen. HealthBeats Media was able to close in the last couple of months an important partnership with Amazon, for example, because from the 1st of December we are going to be able also to show all our content on Amazon Prime Video Italy, but also with important leagues such as the Soccer League in Italy, the CSB League, and the NFL in the United States where we are able to take content and bring it in Italy. But we are also sure that Elbit can work with other major leagues, be sure we can bring content in Italy and in the country where Elbit Live and Elbit Media operate. Elbit Unlimited is also the core of these three different verticals. Why? Because through one subscription, you can have unlimited mobility, unlimited order for Elbit Kitchen, and unlimited view of all the content of Elbit Live. So we're expecting an important increase in the next month. We see already an increase on the Helbit unlimited subscription. I think this is super important because it shows exactly what we want to do. So use micromobility to attract users and then offer as much service we can using the same brand and using the same lifestyle. But now let's go into a little bit more the number of this quarter. and let me turn the call to Giulio. Giulio?
spk04: Thank you, Salvatore. We delivered a strong performance for both the third quarter and the first nine months of 2021. My discussion today will focus mainly on key highlights from the third quarter. Please see today's press release for additional commentary on our financial performance. For the third quarter, we reported revenue of $4.7 million, up 134% against the Q3 2020, and up 57% from Q2 2021. Similarly, we realized a significant revenue improvement for the nine months of 2021, 203% greater than the comparable 2020 period. The increase in revenue was largely driven by the expansion of our fleet and the opening of several new cities across the US and Europe. Notably, we also experienced an increase in ride volume and trip duration as several key markets eased COVID restrictions and riders sought socially distant ways to get around. The recently launched Hellbeats Media was also a strong contributor with over $650,000 generated in the quarter. With the proceeds From the pipe, the warrant exercise, and convertible, we are increasing our investments in our business. We have been spending heavily on city expansion, fleet expansion, and our kitchen and media initiatives. Being technology-driven, we continue to invest in R&D to build our platform. We're also investing heavily in sales and marketing to drive awareness of our multiple business lines. Looking at the balance sheet, we ended the quarter with $8 million in cash. However, since the end of the quarter, we raised additional capital through warrants, exercise, and a convertible offering. As of today, our cash balance is over $30 million. All told, we have raised around $60 million in recent months, leaving us well-funded to drive our growth going forward. Looking ahead, we expect our growth to come from doing exactly what we are delivering on to date, deepening our penetration in existing cities and continuing to expand into new markets. We expect growth to accelerate in 2022. Now that we have new vehicles on order, we should arrive well in time for our busiest season in the second and third quarters of 2022. Lastly, we believe that seasonality will not be a as impactful for us if we meet our expectations of launching additional cities in Florida and in California in the near term. With that said, let me turn the call back to Salvatore for some final remarks.
spk03: Thank you, Giulio. I think the quarter was a really big success and we are sure to achieve another goal for the next one. I want to also use the opportunity on this call to explain that we are not going to have issue about supply chain because we were able to place an order in time and through our good relation with our supply in China and all over the world, we are also working really hard on make sure all our city will be fully operate with fully number of capacity for scooter and bike, any mopeds were available. Let me also say something about Helbit One. Helbit One will be our retail scooter, and we are really happy last month to start pre-order. Pre-order a starter to arrive, and we are also really happy to say we will be in time for the delivery on the end of the Q2. This is a really important achievement for the company because we can add an important streaming line revenue streamlines to our revenue coming from the retail business. I think this will be really important to be sure we can make happy not only customers using sharing mobility, but also a lot of people who want to buy a scooter branding with our company name. So I want to also congratulate all the project managers and all the people working so hard to make this goal happen. I would like to thank our employees for their hard work and dedication. Also, I want to thank our user, partner, and shareholders for support and confidence in Elbit. Thank you for your time today. We really appreciate it. We don't have a Q&A section, but please, we invite everyone on referring to us. All the questions you guys have, we're happy, together with BlueShirt, to give you answers using the email investor at elbit.com. Thank you again, and we're looking forward for the next quarter.
spk00: Thank you, ladies and gentlemen. This concludes today's conference call. You may now disconnect.
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