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spk00: Ladies and gentlemen, this is the operator of today's conference. The schedule to begin momentarily until that time your lights will again be placed on music hold. Thank you for your patience.
spk03: Hi and welcome to the Micro Mobility dot com Inc. first quarter 2023 earnings conference call. Currently, all participants are in a listen only mode. As a reminder, today's program will be recorded. If anyone objects, please disconnect now. I'd like to introduce your host for today's call, Gary Dvorchik, managing director with the Blue Shirt Group. Mr. Dvorchik, please go ahead.
spk07: Thank you, operator. And hello, everyone. Welcome to Micro Mobility dot com's first quarter 2023 results conference call. Earlier today, we issued our financial results press release. It's available via news wires and on our website at IR dot Micro Mobility dot com. A replay of this conference call will be available later today on the Invest Relations
spk04: page on our website.
spk07: With us today, our founder and chief executive officer, Salvatore Alayla and chief financial officer, Julio Profumo. The team will review our first quarter results for 2023. Investors with questions can send them to us via the link to Say Technology, which is provided in our earnings we'll answer questions via the Say Technology supply chain. Please note that our press release and this conference call contain forward looking statements that are subject to risk and uncertainty. These forward looking statements are only predictions and they differ materially from actual future events or results due to a variety of factors. Micro Mobility dot com can give no assurance of these statements and prove to be
spk01: correct.
spk07: We have no obligation to update these statements. I will now turn the call over to Salvatore to begin.
spk02: Salvatore.
spk08: Thank you, Gary. And good day, everyone. Thank you for joining us to review our business performance and financial results for Q1 2022. To begin, I will provide the last development, making our progress, following that our CFO, Julio Profumo, will offer our financial perspectives. Before I provide an overview of our progress and achievement in the business, I would like to express our heartfelt gratitude on behalf of the entire company for the unwavering support of our shareholders during this challenging market condition. We understand the difficulty posed by the current market situation and the need to comply with listing requirements. As a result, we are working closely with market integrity monitors such as Shareintel and Buying.net. We also execute a reverse stock split to regain compliance. Our unwavering determination to maintain our listing demonstrates our strong commitment to transparency and accountability. Importantly, we firmly believe that the driving profitability and fostering growth is vital to encouraging the overall value of our company. This is why our primary focus is on optimizing operations and expanding within the micro-mobility industry. We are consolidating our presence in cities where we already operate with the ultimate goal of transforming this operation into a profitability venture. Despite the obstacles we face, we remain confident in our ability to navigate the business landscape, achieve consistent growth and continue to deliver value to our shareholders. With that being said, in the first quarter, we remain steadfast in our commitment to evolution in inter-urban transformation while promoting sustainability. Through thoughtful decision-making, we prioritize profitability and sustainable expansion, leading to a transformative rebranding effort that positions us as a global micro-mobility consolidator. This exciting transformation allows us to enter the retail, rental and shared micro-mobility market, offering a wide range of vehicle accessorized and service. We also launched our new retail focused venture that will feature physical stores across the United States and an online platform for convenient shopping. Rebranding our mobility segment is producing impressive results. As a rebranded company, our main goal is to offer outstanding shared mobility service by smoothly integrated brands, mainly our previous brand, Helbit and acquired brand, Wills, under our new global brand umbrella. Additionally, we expand our presence in the mobility market by successful launching e-bike flipping both Santa Monica and the Maguilinera. Turning to the kitchen business, we achieved significant progress in our various regions. Helbit's Kitchen introduced Mr. Disburger for the first time in Italy, an important extension milestone. In the United States, we have expanded our presence through a strategic partnership with Kitchen United, leading to the opening of our first two locations in Los Angeles, in Santa Monica and the Westwood neighborhood. This development highlights our commitment in delivering diverse culinary experience and expand our market reach. To cover our goal of being profitable, we are actively reducing costs in our mobility segment. By using technology and smart ways of working, we have expanded our fleet to more seats in the United States without spending extra money. Furthermore, we have embraced technology to enhance our relationship with both shareholders and customers. We have reverse-sense customer service by incorporating AI tools, enabling personalized and efficient interaction that results in higher customer satisfaction. This initiative highlights our commitment to build strong relationships and providing expansional experience. Now I will turn the call over to Giulio Profumo, our CFO. Giulio will go over our financial performance. Giulio?
spk09: Thank you, Salvatore. Our detailed financials can be found in our earnings release and thank you filing. So we will concentrate on discussing the drivers of financial performance. Keep in mind that all figures given are for the first quarter of 2023 and all comparisons are with the first quarter of 2022 unless I note otherwise. Revenue was $3.9 million up 18% per major by mobility revenue of $1.6 million and media revenue of $2.1 million. In pursuing our goal of reaching cash flow positive, we exited unprofitable markets resulting in fewer trips and lower quarterly active platform users. Yes, we held mobility revenue flat, demonstrating that we are selectively trimming the proper areas. Mobility was 40% of revenue with 76% from a paper ride and 21% from growing subscription offering. The cost of revenue of mobility remains stable although we experienced a 35% increase in amortization, depreciation, and write-off. This increase can primarily be attributed to the asset acquired from the Wills business combination. On the other hand, we successfully reduced media cost by 11% mainly by decreasing the acquisition of media content during the period. This reduction aligns with our strategy to decrease the operating cash use by the media business. Turning our attention to Hellbit's Kitchen, we are pleased to report that first quarter revenue nearly tripled. Our strategic partnership with Kitchen United has played a significant role in driving our growth in the US. Now let's shift our focus to operating expenses which decreased by 9%. Excluding the cost of revenue, our total expense in R&D, sales, and marketing, and general and administrative decreased by 17%. This reduction was primarily driven by a 52% decrease in sales and marketing expenses and a 7% decrease in G&A costs. These reductions were accomplished by strategically reducing staffing levels and overhead expenses aligning with our overall strategic goals. However, we have maintained our in-house global IT engineering team leading to a 13% increase in R&D expenses during Q1. Additionally, non-cash equity-based compensation expenses amounted to approximately $800,000 in the first quarter accounting for approximately 4% of total operating expenses. Ultimately, we maintained an optimistic perspective that our efforts to decrease operating expenses will lead to cost reduction throughout our entire business. This will bring us closer to our ultimate goal of achieving bottom-line profitability which currently stands as our highest priority. In terms of our balance sheet and liquidity, as of March 31, 2023, we had $647,000 in cash and equivalents. Financial liabilities experienced a decline in the first quarter reflecting a noteworthy reduction in our financial outstanding obligations. Net cash used in operating activities decreased by 22% year over year demonstrating improved operational efficiency. During Q1, we entered into equity lines of credit which provided us with the option but not the obligation to do so at our discretion during the terms of the agreement. Throughout the remainder of 2023, we plan to fund our operation and expansion through additional and equity financing as necessary. Let me address our stock and compliance with the listing requirements. On March 30, we completed a reverse stock split, successfully regaining compliance with the share price requirements for listed securities. However, we still face challenges due to the volatility of our market share price. To ensure compliance, we are actively collaborating with market integrity and services providers. We remain fully committed to maintaining our status as a listed company. In summary, we are grateful for the consistent support of our shareholders during the challenging market environment. We are determined to overcome obstacles and deliver value to our stakeholders. By focusing on strategic initiatives, optimizing operations and embracing innovative technologies, we are confident in our ability to achieve sustained growth in the future. Let me turn the call back to Salvatore to wrap up. Salvatore?
spk08: Thank you, Giulio. We deeply appreciate the support from our shareholders and we are committed to expanding our business through strategic initiatives, efficiency and innovation. Trust brings to drive our compliance efforts helping us navigate the market and create value for shareholders. We have achieved consistent growth in revenue and managed to decree operational expenses by improving efficiency. We will keep pursuing this strategy to improve our bottom line and create value for shareholders in the long term. Now, I will turn the call over to Gary for some final instructions regarding our Q&A. Gary, go ahead.
spk07: Thanks, Salvatore. As a reminder, MicroMobility.com partnered with FACE technology to allow verified and independent distribution shareholders to submit and upvote questions, a selection of which will be answered by our management team after the call. To submit questions, please refer to the link we shared and published earlier today. This concludes today's conference call. Thank you for your participation and may now disconnect.
spk03: Thank you for standing by and welcome to the MicroMobility.com Inc. First Quarter 2023 earnings conference call. Currently, all participants are in a listen-only mode. As a reminder, today's program will be recorded. If anyone objects, please disconnect now. I'd like to introduce your host for today's call, Gary Dvorchik, Managing Director with the Blue Shirt Group. Mr. Dvorchik, please go ahead.
spk07: Thank you, Operator, and hello, everyone. Welcome to MicroMobility.com's First Quarter 2023 results conference call. Earlier today, we issued our financial results press release. It's available via news wires and on our website at .MicroMobility.com. A replay of this conference call will be available later today on the Invest Relations
spk04: page of our website.
spk07: With us today are Founder and Chief Executive Offices Salvatore Hallela and Chief Financial Offices Julio Profumo. The team will review our First Quarter results for 2023. Investors with questions can send them to us via the link to Say Technology, which is our website. We'll answer questions via the Say Technology supply chain. Please note that our press release and this conference call contain forward-looking statements that are subject to risk and uncertainty. These forward-looking statements are only predictions and they differ materially from actual future events or results due to a variety of factors. MicroMobility.com can give no assurance if these statements prove to be
spk01: correct.
spk07: We have no obligation to update these statements. I will now turn the call over to Salvatore to begin.
spk02: Salvatore?
spk07: Thank
spk08: you, Gary, and good day, everyone. Thank you for joining us to review our business performance and financial results for Q1 2022. To begin, I will provide the last development making our progress, following that our CFO, Julio Profumo, will offer our financial perspectives. Before I provide an overview of our progress and achievement in the business, I would like to express our heartfelt gratitude on behalf of the entire company for the unwavering support of our shareholders during this challenging market condition. We understand the difficulty posed by the current market situation and the need to comply with listing requirements. As a result, we are working closely with market integrity monitors such as ShareIntel and Buying.Net. We also execute a reverse stock split to regain compliance. Our unwavering determination to maintain our listing, demonstrating our strong commitment to transparency and accountability. Importantly, we firmly believe that the driving profitability and fostering growth is vital to encouraging the overall value of our company. This is why our primary focus is on optimizing operation and expanding within the macro-mobility industry. We are consolidating our presence in cities where we already operate with the ultimate goal of transforming this operation into a profitability venture. Despite the obstacles we face, we remain confident in our ability to navigate the business landscape, achieve consistent growth and continuously deliver the value to our shareholders. With that being said, in the first quarter, we remain steadfast in our commitment to evolution in inter-urban transformation while promoting sustainability. Through thoughtful decision-making, we prioritize profitability and sustainable expansion, leading to a transformative rebranding effort that positions us as a global micro-mobility contributor. This exciting transformation allows us to enter the retail, rental and shared micro-mobility market, offering a wide range of vehicle accessorized and service. We also launched our new retail focused adventure that will feature physical stores across the United States in an online platform for convenient shopping. Rebranding our mobility segment is producing impressive results. As a rebranding company, our main goal is to offer outstanding shared mobility service by smoothly integrated brands, mainly our previous brand, Helbit, and acquired brand, Wills, under our new global brand umbrella. Additionally, we expand our presence in the mobility market by successful launching e-bike fleets in both Santa Monica and the Miami area. Turning to the kitchen business, we achieved significant progress in our various regions. Helbit's Kitchen introduced Mr. Disburger for the first time in Italy, an important extension milestone. In the United States, we have expanded our presence through a strategic partnership with Kitchen United, leading to the opening of our first two locations in Los Angeles, in Santa Monica and the Westwood neighborhood. These developments highlight our commitment in delivering diverse culinary experience and expand our market reach. To recover our goal of being profitable, we are actively reducing costs in our mobility segment. By using technology and smart ways of working, we have expanded our fleet to more seats in the United States without spending extra money. Through Jamor, we have embraced technology to enhance our relationship with both shareholder and customer. We have reverse-sense customer service by incorporating AI tools, enabling personalized and efficient interaction that results in higher customer satisfaction. This initiative highlights our commitment to build strong relationships and providing expansional experience. Now I will turn the call over to Giulio Profumo, our CFO. Giulio will go over our financial performance. Giulio?
spk09: Thank you, Salvatore. Our detailed financials can be found in our earnings release and thank you filing. So we will concentrate on discussing the drivers of financial performance. Keep in mind that all figures given are for the first quarter of 2023 and all comparisons are with the first quarter of 2022, unless I note otherwise. Revenue was $3.9 million up 18% per major by mobility revenue of $1.6 million and media revenue of $2.1 million. In pursuing our goal of reaching cash flow positive, we exited unprofitable markets resulting in fewer trips and lower quarterly active platform users. Yes, we held mobility revenue flat, demonstrating that we are selectively trimming the proper areas. Mobility was 40% of revenue with 76% from a paper ride and 21% from growing subscription offering. The cost of revenue of mobility remains stable, although we experienced a 35% increase in amortization, depreciation, and write-off. This increase can primarily be attributed to the assets acquired from the WEO's business combination. On the other hand, we successfully reduced media costs by 11%, mainly by decreasing the acquisition of media content during the period. This reduction aligns with our strategy to decrease the operating cash use by the media business. Turning our attention to Hellbit's kitchen, we are pleased to report that first quarter revenue nearly tripled. Our strategic partnership with Kitchen United has played a significant role in driving our growth in the US. Now let's shift our focus to operating expenses, which decreased by 9%. Excluding the cost of revenue, our total expense in R&D, sales, and marketing, and general and administrative decreased by 17%. This reduction was primarily driven by a 52% decrease in sales and marketing expenses and a 7% decrease in G&A costs. These reductions were accomplished by strategically reducing staffing levels and overhead expenses, aligning with our overall strategic goals. However, we have maintained our in-house global IT engineering team, leading to a 13% increase in R&D expenses during Q1. Additionally, non-cash equity-based compensation expenses amounted approximately $800,000 in the first quarter, accounting for approximately 4% of total operating expenses. Ultimately, we maintained an optimistic perspective that our efforts to decrease operating expenses will lead to cost reduction throughout our entire business. This will bring us closer to our ultimate goal of achieving bottom-line profitability, which currently stands as our highest priority. In terms of our balance sheet and liquidity, as of March 31, 2023, we had $647,000 in cash and equivalents. Financial liabilities experienced a decline in the first quarter, reflecting a noteworthy reduction in our financial outstanding obligations. Net cash used in operating activities decreased by 22% year over year, demonstrating improved operational efficiency. During Q1, we entered into equity lines of credit, which provided us with the option, but not the obligation, to do so at our discretion during the terms of the agreement. Throughout the remainder of 2023, we plan to fund our operations and expansion to additional debt and equity financing as necessary. Now, let me address our stock and compliance with the listing requirements. On March 30, we completed a reverse stock split, successfully regaining compliance with the share price requirements for listed securities. However, we still face challenges due to the volatility of our market share price. To ensure compliance, we are actively collaborating with market integrity surveillance and service providers. We remain fully committed to maintaining our status as a listed company. In summary, we are grateful for the consistent support of our shareholders during the challenging market environment. We are determined to overcome obstacles and deliver value to our stakeholders. By focusing on strategic initiatives, optimizing operations, and embracing innovative technologies, we are confident in our ability to achieve sustained growth in the future. Let me turn the call back to Salvatore to wrap up. Salvatore?
spk08: Thank you, Giulio. We deeply appreciate the support from our shareholders and we are committed to expanding our business through strategic initiatives, efficiency, and innovation. Transparency drives our compliance efforts helping us navigate the market and create value for shareholders. We have achieved consistent growth in revenue and managed to decree operational expenses by improving efficiency. We will keep pursuing this strategy to improve our bottom line and create value for shareholders in the long term. Now, I will turn the call over to Gary for some final instructions regarding our Q&A. Gary, go ahead.
spk07: Thanks, Salvatore. As a reminder, micromobility.com partnered with FADES technology to allow verified and intelligent institutional shareholders to submit and upvote questions, a selection of which will be answered by our management team after the earnings call. To submit questions, please refer to the link we shared in our questions published earlier today. This concludes today's conference call. Thank you for your participation in our Disconnect.
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