Company: ZCARW
Filing Date: 2025-05-05
Form Type: S-1
Source: 0001213900-25-039778
Chunk: 123

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-05-05
Form: S-1
Chunk 123
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 (Loss) and Contribution Margin We define contribution profit (loss) as our gross profit (loss) plus (a) depreciation expense included in cost of revenue, (b) stock-based compensation expense included in cost of revenue, (c) other general costs included in cost of revenue (rent, software support, insurance, travel); less (i) Host incentive payments and (ii) marketing and promotional expenses (excluding brand marketing). We use contribution profit (loss) and contribution margin as 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