Zoomcar Holdings’ Stock Soars Pre-Market After Q2 Losses Narrow: Retail’s Cautiously Optimistic

Shares of Zoomcar Holdings Inc ($ZCAR) jumped over 14% in Thursday’s pre-market session after the firm reported its second quarter earnings.

Net revenue declined 16% year-over-year to $2.25 million while the company’s net loss narrowed to $3.35 million compared to a loss of $12.4 million in the same period a year ago. Net loss per share declined to $4.43 per share as compared to $2,568.82 per share during the same quarter last year.

Contribution profit hit a record high of $1.21 million compared to a loss of $0.12 million in the same quarter last year.

Adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) loss stood at $1.47 million compared to an EBITDA loss of $3.87 million in the same quarter last year.

Zoomcar said the number of bookings increased by 7%, from 97,970 in the previous quarter to 105,160 in the quarter ended Sept. 30, 2024, driven by 1.5x increase in the guest repeat booking rate.

CEO Hiroshi Nishijima said that with a stronger contribution margin, the firm’s primary goal is to grow the number of bookings by bringing in more guests and achieving more frequent repeat usage. “Despite shorter average booking durations, our contribution margin remains robust, making the total number of bookings our most critical metric,” he said.

Following the announcement, retail sentiment on Stocktwits inched lower into the ‘neutral’ territory (48/100) from the ‘extremely bullish’ zone a day ago.

Some users believe the stock is set for a rally in the coming times.

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