Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 322

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 8
Chunk 322
---
363)
  
    Contribution margin 
     52% 
     9% 
     43% 
     -14%
  
    Net (loss) income 
     (7,922,063) 
     14,425,439  
     (13,805,617) 
     (26,757,978)
  
    Adjusted EBITDA 
     (3,147,158) 
     (10,168,346) 
     (7,878,841) 
     (20,841,509)

63

Contribution Profit (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