Helbiz, Inc.

Thank you for standing by and welcome to the HealthBiz first quarter 2022 earnings conference call. Currently, all participants are in the one and only mode. As a reminder, today's program will be recorded. If anyone objects, please disconnect now. I'd like to introduce to your host for today's program, Gary Dvorak, managing director with the Blue Shirt Group. Mr. Dvorak, please go ahead.

Thank you, operator, and hello, everyone. Welcome to Hellbiz first quarter 2022 results conference call. With us today are founder and chief executive officer Salvatore Pallella and chief financial officer Giulio Profumo. We share 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 this 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 risks and uncertainties. These forward-looking statements are only predictions and they differ materially from actual future events or results due to a variety of factors. LBs can give no assurance that these statements have proved 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 or describing the safe harbor provision of our filings with the SEC. I will now turn the call over to Salvatore to begin. Salvatore.

Thank you, Gary, and good day, everyone. Thank you for joining today's call to review our business performance and financial resource for the first quarter of 2022. Once again, Growth was substantial, revenue-free with both mobility and media contributions. We continued to invest to grow our business. To fund growth, we essentially secured another $10 million of funding. In mobility, we won our license in Miami-Dade County. We are the first of any company to do so and are already operating there now. Across the U.S., Europe, and Asia-Pacific, We are currently in discussion to bring our mobility service to new communities. License application in several cities are in the final stage. We are proud of the partnership we've built with local government and how our investment in our technology enable us to move quickly. We can satisfy specific requests from cities and at the time keep license while competitors lose theirs. Our eligibility enable us to regularly override and beat our takeaway license from others. In addition to organic growth, we are exploring other ways to quickly grow our fleet and citizen service. At the moment, we are negotiating an M&A transaction with a potential partner also operating in the mobility sector, which could significantly increase our footprint and revenue. Because we are publicly traded, we can pursue opportunities like these using stock, which is often a better option than cash. During the quarter, we make strong progress in building our partner resource. Most important is our deal with Google Maps. In Citi, where we operate, Elbit Scooter will now appear as a transportation option. With a couple of tasks, the Google Maps user can find an Elbit scooter and start a ride. Similarly, we have a deal with Moovit, so their user can see Elbit as a commuting option. This partnership introduces us to a wide group of users. They also present us as an alternative to other modes of transportation, such as ride sharing. This is a solid progress toward our goal of fully integrating ourselves into the way people commute through their city. As warmer weather comes, people are returning to normal lives of commuting to the office and see their friends. Because of this, we expect our services to become even more vital. That paired with the spike in gas price and other difficulties presented by inflation should benefit our business. Recent conditions show the need for a vibrant micromobility sector and growth potential in present to us. To take advantage of this, we are now taking delivery of new vehicles in many of our operating cities. The new vehicle enables us to max out our license cap and serve the largest population. Finally, in media, we strengthened our partnership with Amazon Prime Video. In Italy, Elbit Live will now be a subscription option in the channel section of Prime Video. We also have MLB, the Major League Baseball, to our lineup, which brings baseball to Italy. Now let me turn the call over to our CFO, Giulio Profumo, to discuss our financial performance for the first quarter. Giulio?

Thank you, Salvatore. Our detailed financials can be found in our earnings release and thank you filing. So we will spend our time discussing the drivers of financial performance. Unless I note otherwise, all figures are for the first quarter of 2022, and all comparisons are with the first quarter of 2021. We started the year on a solid note with good performance across multiple operating metrics. Revenue more than tripled due to growth in mobility and the contribution from the media business. Mobility growth was multifaceted and generated 48% of total revenue. We continued expansion into new cities in the US and in Italy, growing our teams in every city and providing enhanced services. Operating metrics showed solid performance. Quarterly active platform users were up 66%, and total trips were up 58%. Paper rides still dominate revenue, but unlimited subscriptions grew by 76%. Unlimited is popular among customers who ride frequently and value our other services of food delivery and live streaming. Our marketing team is working hard to promote unlimited subscriptions because it represents a good value bundle for customers. Media has quickly become an engine of growth for us, making up the other half of revenue in the quarter. Most media revenue, again, came from commercialization of media rights, while Habit's live subscriptions were nearly 20% of revenue. We're building live subscription momentum through the unlimited subscription offerings. Going down the P&L, the cost of revenue was mostly media-related. Operating expenses reflect our commitment to invest for growth. The doubling of OPEX was mostly from the growth of the business. We hired more talent and spent more on marketing. We also now incur in the expense of being a public company. Please note that we incurred $1.3 million in non-cash stock-based compensation expenses. which accounted for almost 6% of the total operating expenses. Our growth goals are aggressive, so naturally we're focused on maintaining a healthy level of funding. In April, we secured another 10 million of funding via two convertible notes. With increased liquidity, we remain confident with our ability to fund the business and pursue our objectives. We're always exploring cost-efficient forms of capital to fund the business and opportunities to further optimize our capital structure. Next, I want to update you on the financial lease agreement we signed in June 2021, a 12-month lease with a European financial institution for approximately 3,000 scooters. This agreement became effective on March 1, 2022, following the delivery of the vehicles to our warehouse. We now pay a monthly leasing fee for this addition to our fleet. Looking ahead, we see demand recovering to pre-pandemic levels. To fulfill this rising demand, we are taking vehicle deliveries now in many cities. We believe we are well positioned to capitalize on the promise of the industry as the year progresses, with increasing adoption of our environmentally-friendly transportation alternatives. We now expect 2022 revenue to more than double versus last year. This improved outlook reflects growing ride utilization and city expansion. Now let me return the call to Salvatore for the closing remarks.

Thanks, Giulio. We are delighted to see solid revenue growth in our mobility business and that our limited subscription model is gaining traction. Our business is balanced and diversified across several services that make life more convenient and environmentally friendly for our customers. Based on the strong start of the year and the growing transaction across all our line of business, we are excited to increase our revenue expansion for 2022. This concludes today's conference call. We are open to ask for your questions and would like to communicate with us. So, don't hesitate to send us any questions. Thank you for spending time with us today.

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