The New York Stock Exchange has issued a delisting warning to peer-to-peer car rental company Getaround for trading too low, according to the company.
Getaround debuted on the public markets in December after merging with a special purpose acquisition company (SPAC). The combined company’s stock began trading at around $10 per share and promptly lost 65% of its value. Today, Getaround’s shares dropped 1.3% and are going for $0.64.
Getaround has six months to cure its stock price deficiency and regain compliance with the NYSE’s continued listing standards. The stock exchange issues such warnings to companies whose stock prices are less than $1 over a consecutive 30 trading-day period.
It seems a bit early in Getaround’s time on the public markets for the company to be dancing with a potential delisting, but the warning isn’t entirely unsurprising if you look at Getaround’s balance sheet. The company has scaled somewhat aggressively over the past couple of years and claims to have a network 20x larger than its nearest competitor. That scale has come at the cost of negative growth and rising losses. In fact, revenue declined and operating costs increased in the first three quarters of 2022 compared to the year prior. By September 30, 2022, Getaround’s operating cash burn was $63.2 million, compared to $53.3 million in the same period in 2021.
Getaround closed out Q3 2022 with free cash flow of $27.2 million. Merging with InterPrivate II Acquisition Corp. brought the company $228 million of gross proceeds to help keep it afloat, but that money came with a sharp reduction in its value that may partially explain the tanking stock price.
The somewhat beleaguered company will report its fourth-quarter and full-year earnings soon — Getaround has yet to set a date — which should shed some light on whether Getaround can turnaround and bring itself back up to compliance.
Car-sharing platform Getaround gets delisting warning from NYSE by Rebecca Bellan originally published on TechCrunch
