Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 323

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 8
Chunk 323
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 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 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 unaudited condensed 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 unaudited condensed
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.

64

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)  

    Three months ended
 December 31,  
    Nine months ended
 December 31, 

    2024