Voi delivers on its targets in 2023 and is today EBITDA profitable with EBIT profitability in sight already for 2024
This week, Voi Technology AB is filing its 2023 annual report to the Swedish Companies Registration Office. 2023 was a year with a continued focus on the execution of operational efficiency improvements that helped Voi to reach adjusted EBITDA profitability on a last twelve-month basis from April 2024.
In the years following Voi’s founding in 2018, the company made significant investments towards achieving its vision of cities made for living. The Swedish micromobility operator rapidly scaled its service to over 100 cities across 12 European countries, with more than 100,000 vehicles completing over 260 million rides to date. Furthermore, Voi invested heavily in innovative technologies to enhance safety, parking, sustainability and operational efficiency.
In 2023, Voi saw continued strong demand for its service as cities and users embraced micromobility and several peers discontinued operations. Voi continued to win the hearts and minds of its two main customers: users and cities. Voi has the highest ride market share within its footprint according to third-party data, and the largest market share of scooters under licensed city tenders in Europe.
"The transformation to EBITDA profitability, which began in 2021, is now complete, making Voi operationally cash flow positive. Over the past twelve months ending in May 2024, we have now reported over SEK 30 million of adjusted EBITDA, with our strong liquidity continuing to improve. We are proud of our achievements in 2023 and have laid the foundation to reach full-year EBIT profitability, possibly even in 2024," says Mathias Hermansson, CFO and Deputy CEO of Voi Technology.
Voi continued to see benefits from strong user and city demand, bolstered by an improved competitive landscape
During 2023, the underlying demand for Voi’s service remained strong, resulting in an increased net revenue by 18% to SEK 1,416 (1,203) million. The increase is mainly driven by Germany and Sweden, which along with the UK remain the leading markets in terms of revenue. The increase in turnover was accomplished organically without growing the fleet size.
Voi continued to stay laser-focused on targeted measures to improve operational efficiency, resulting in a gross margin of 50% for 2023, an increase of six percentage points compared with 2022. The strong gross margin improvement has continued in H1 2024.
Consolidated Group EBITDA for the year improved to SEK -105 (-445) million, an EBITDA margin improvement of 30 percentage points. Consolidated Group EBIT for the year improved to SEK -429 (-834) million. These included material restructuring costs and other non-cash impacting costs.
Voi strengthens financial position and expands fleet amidst industry growth and consolidation in 2024
Voi made organisational changes in February 2024 resulting in an improved cost structure. Today the central cost base is nearly 50% lower than mid-2022, despite continued growth in user numbers, which will improve profitability during the year.
In March 2024, the company raised USD 25 million in equity and in addition, the company secured debt financing for new vehicles. The additional capital will be used to expand the company's e-scooter and e-bike fleet to capture the opportunities in the market resulting from growing consumer demand, and from the rapid consolidation of the industry.
In connection with the financing round, approximately 85 MUSD in convertible loans issued in 2021 were converted into equity, further strengthening the company's balance sheet to a net cash position.
Mathias Hermansson, CFO and Deputy CEO of Voi Technology, said:
“We have an amazing team that has brilliantly executed a difficult transformation over the past year, financially and operationally, and that has now put us in a position to take the next step in our journey. We continue, step by step, to deliver the most efficient, safe and sustainable micromobility service on the European streets for our users and cities.
Our relentless focus to build a long-lasting robust company that delivers value for our stakeholders continues and Voi has never been stronger than we are today. We are still only at the beginning of the transformation to sustainable urban mobility that so many cities are now adopting”.
