Bird closed out the third quarter with $38.5 million in free cash flow. Without additional funding, the company said it would be unable to meet its obligations over the next year. Bird points to “factors beyond its control” like current market volatility that could impact if and how Bird receives further equity or debt financing.
“Accordingly, the Company plans to continue to closely monitor its operating forecast, reduce its operating expenses, and pursue additional sources of outside capital,” reads the filing. “Along with this global footprint realignment, the Company is targeting additional reductions in its operating expenses.”
Bird’s stock tanked nearly 16% today and is currently trading at $0.36. The company has until next month to bring its stock price up above $1.00 per its warning from the NYSE.
In the third quarter, Bird said its revenue increased 19% to $72.9 million, compared to $61.1 million in the same quarter last year. Bird shared its revenue increase the same day it disclosed that it overstated revenue in the past and that the last two years’ worth of financial statements “should no longer be relied upon.”
Bird had been counting preloaded wallet balances into its overall revenue, and is now in the process of analyzing balances that it doesn’t expect to redeem in the future, according to Ben Lu, Bird’s chief financial officer. Lu said Bird would finish this audit by the fourth quarter.
“Upon completion, we expect to record on-going breakage revenue and anticipate booking a true-up that would increase our revenues next quarter,” said Lu in a statement. “As a result of these two accounting adjustments, we are withdrawing our previous fiscal year 2022 revenue guidance of $275 to $325 million.”
Lu did not explain how Bird would square up the overstated revenue from the past, nor if Bird would issue new revenue guidance for the full year.
Bird closed out the quarter with a $9.8 million net loss, compared to a net loss of $42.1 million in the year prior, which suggests that the company’s many cost cuts had an impact. Indeed Bird’s Q3 operating expenses were $29.4 million, which is down $10.6 million from Q3 2021. Without additional funds, however, Bird may be exiting more than just several dozen markets.
Bird may not have enough funds to continue shared micromobility business by Rebecca Bellan originally published on TechCrunch