Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 71

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 71
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, 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 $1.14 million during the three months ended on June 30, 2025, versus a contribution loss of $0.46 million during the three months
ended on June 30, 2024. Our gross profit improved to $1.00 million during the three months ended on June 30, 2025, versus $0.73 million
during the three months ended on June 30, 2024, which was driven by 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 $0.07 million during the three months ended on June 30, 2025, versus $0.55 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