Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 415

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1A
Chunk 415
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, 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.

72

We recorded a contribution
profit of $4.25 million during the year ended March 31, 2025, versus a contribution loss of $0.98 million during the year ended March
31, 2024. Our gross profit improved to $3.81 million during the year ended March 31, 2025, versus a gross loss of $0.43 million during
the year ended March 31, 2024, 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 reduced significantly to $0.74 million during the year ended March 31, 2025, versus $2.73 million during the same period in 2024,
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 financial measures with certain limitations regarding their usefulness; they should be considered
as supplemental in nature and are not meant as substitutes for gross profit /(loss) and gross margin, which are measures prepared in
accordance with GAAP. For purposes of calculating the non-GAAP financial measures, we utilize the GAAP financial measure of gross profit
(loss), which is defined as revenue minus cost of revenue, each of which is presented in our audited consolidated statements of operations.
Our definitions of contribution profit (loss) and contribution margin may differ from the definitions used by other companies in our
industry and, therefore, comparability may be limited. In addition, other companies may not publish these or other similar metrics. Further,
our definition of contribution profit (loss) does not include the impact of certain expenses that are reflected in our audited consolidated
statements of operations. Thus, our contribution profit (loss) should be considered in addition to, not as a substitute for or in isolation
from, gross profit (loss) prepared in accordance with GAAP. 

The following tables present reconciliations
of gross profit/(loss) to contribution profit/(loss) and gross margin to contribution margin for each of the periods indicated: 

Contribution Profit/(Loss)  

    For the Years Ended