Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 99

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 99
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 indicators of the economic impact of a new booking on our platform, as they capture the direct expenses
attributable to a new booking on our platform and the cost required to generate revenue. While certain contribution profit (loss) adjustments
may not be non-recurring, non-cash, non-operating, or unusual, contribution profit (loss) is a metric our management and board of directors
find useful, and we believe investors may find useful in understanding the costs most directly associated with our revenue-generating
activities.

We recorded a contribution
profit of $1.28 million during the three months ended December 31, 2024, as compared to $0.21 million during the three months ended December
31, 2023. Our gross profit improved to $0.95 million during the three months ended December 31, 2024, versus a gross profit of $0.33 million
during the three months ended December 31, 2023, which was driven by significant reductions in cost of revenue due to the overall improvements
in Companywide operational efficiencies accomplished over the past few quarters. In addition, host incentives and marketing costs (excl.
brand marketing) were significantly reduced to $0.03 million during the three months ended December 31, 2024, versus $0.63 million during
the same period in 2023, which further contributed to the Company achieving higher contribution profit as compared to contribution profit
in the previous comparable period.

We recorded a contribution
profit of $2.95 million during the nine months ended December 31, 2024, versus a contribution loss of $1.08 million during the nine months
ended December 31, 2023. Our gross profit improved to $2.71 million during the nine months ended December 31, 2024, versus a gross loss
of $0.72 million during the nine months ended December 31, 2023, which was driven by significant reductions in cost of revenue due to
the overall improvements in Companywide operational efficiencies accomplished over the past few quarters. In addition, host incentives
and marketing costs (excl. brand marketing) were significantly reduced to $0.62 million during the nine months ended December 31, 2024,
versus $2.10 million during the same period in 2023, which further contributed to the Company achieving contribution profit as compared
to contribution loss in the previous comparable period.

Contribution profit (loss)
and contribution margin are non-GAAP