Revenue Increasing 493% Year-Over-Year to $15.4 Million
Key Highlights:
- Roadzen's revenue for the quarter ended September 30, 2023 experienced a substantial increase of $12.8 million over the same quarter of the previous fiscal year.
- Growth underscores strong demand for Roadzen’s advanced AI solutions in the $800 billion auto insurance industry.
- Revenue composition highlights the strength of Roadzen’s strategic plan with brokerage solutions contributing 54% and enterprise technology sales of the Insurance as a Service (IaaS) platform accounting for 46%.
NEW YORK, Nov. 13, 2023 (GLOBE NEWSWIRE) -- Roadzen Inc. (Nasdaq: RDZN), a global pioneer in AI-driven insurance and mobility solutions, today reported its first quarterly earnings since becoming a publicly listed entity. The Company's second quarter of its fiscal year 2024 closed with revenue reaching $15.4 million marking a 493% increase from the same quarter last year. Management attributes this growth to strategic acquisitions as well as organic revenue expansion of 89%.
Rohan Malhotra, Co-Founder and CEO of Roadzen, stated, "We are pleased to announce that our first quarter as a public company represents the best revenue quarter in our history, concluding with $15.4 million in revenue and significant year-over-year growth. As AI continues to reshape industry, Roadzen is strategically positioned to become a global leader at the intersection of mobility and insurance."
Malhotra further commented that, "Our revenue growth, fueled by both strategic acquisitions and organic growth, reflects our commitment to delivering innovative solutions within the evolving auto insurance ecosystem. We are focused on bringing onboard new clients, enhancing our embedded distribution model, and employing AI to optimize operations. Roadzen's cutting-edge AI uniquely positions us to be the preferred partner for insurers, fleets and carmakers aiming to innovate their auto insurance offerings."
The Company’s net loss of $31.1 million includes $27.5 million of non-cash, non-recurring and other extraordinary items resulting in an Adjusted EBITDA1 loss of $3.6 million. The Adjusted EBITDA loss of $3.6 million compares to an Adjusted EBITDA loss of $2.3 million in the same quarter of the prior year while growing revenue 493% over the corresponding period.
Market Expansion and Strategic Acquisitions: Roadzen has extended its global reach with strategic acquisitions in the US and UK markets during June 2023. The acquisition of Global Insurance Management Ltd. (GIM), a prominent Managing General Agent specializing in auto insurance, extended warranties and global claims management, solidifies our position in the UK. Similarly, the acquisition of the National Automobile Club (NAC), a California-based entity known for its claims management expertise and round-the-clock commercial roadside assistance, has bolstered our service offerings in the US.
Roadzen partners with 90 enterprise clients that include leading insurers, automakers and large fleets, as well as 3,000 small and medium businesses including agents, brokers, dealerships, and fleets under 100 vehicles.
About Roadzen Inc.Roadzen Inc. (NASDAQ: RDZN) is a leading insurance technology company on a mission to transform global auto insurance powered by advanced AI. Thousands of clients - from some of the world's leading insurers, fleets, and carmakers to small fleets, brokers, and insurance agents - use Roadzen's technology to build new products, sell insurance, process claims, and improve road safety. Roadzen's pioneering work in telematics and computer vision has earned recognition as a top AI innovator by publications such as Forbes, Fortune, and Financial Express. Roadzen has approximately 400 employees across its global offices in the US, India, UK, and France. For more information, visit www.roadzen.io.
Cautionary Statement Regarding Forward-Looking Statements
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We have based these forward-looking statements on our current expectations and projections about future events. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” and “continue,” or the negative of such terms or other similar expressions. Such statements include, but are not limited to, statements regarding our strategy, demand for our products, expansion plans, future operations, future operating results, estimated revenues, losses, projected costs, prospects, plans and objectives of management, as well as all other statements other than statements of historical fact included in this press release. Factors that might cause or contribute to such a discrepancy include, but are not limited to, those described in “Risk Factors” in our Securities and Exchange Commission (“SEC”) filings, including the definitive proxy statement/prospectus we filed with the SEC on August 14, 2023. We urge you to consider these factors, risks and uncertainties carefully in evaluating the forward-looking statements contained in this press release. All subsequent written or oral forward-looking statements attributable to our Company or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. The forward-looking statements included in this press release are made only as of the date of this release. Except as expressly required by applicable securities law, we disclaim any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
1. Adjusted EBITDA is a non-GAAP financial metrics. See “Non-GAAP Financial Measures” at the end of this press release for more information, including a reconciliation to the nearest GAAP financial measure.
Roadzen Inc.Condensed Consolidated Balance Sheets(in $, except per share data and share count)
| Particulars | As ofSeptember 30,2023(Unaudited) | As of March 31,2023 | |||
| Assets | |||||
| Current assets: | |||||
| Cash and cash equivalents | 8,109,694 | 589,340 | |||
| Accounts receivable, net | 8,687,873 | 1,535,985 | |||
| Inventories | 132,641 | 59,897 | |||
| Prepayments and other current assets | 34,468,175 | 3,181,936 | |||
| Total current assets | 51,398,383 | 5,367,158 | |||
| Restricted cash | 886,105 | 542,490 | |||
| Non marketable securities | 4,910,030 | 4,910,030 | |||
| Property and equipment, net | 305,335 | 232,493 | |||
| Goodwill | 2,304,159 | 996,441 | |||
| Operating lease right-of-use assets | 918,940 | 545,988 | |||
| Intangible assets, net | 4,732,963 | 2,469,158 | |||
| Other long term assets | 227,050 | 117,484 | |||
| Total assets | 65,682,965 | 15,181,242 | |||
| Liabilities, mezzanine equity and stockholders' deficit | |||||
| Current liabilities | |||||
| Current portion of long-term borrowings | 2,813,526 | 2,852,528 | |||
| Short term borrowings | 14,052,206 | 4,875,801 | |||
| Due to insurer | 8,175,754 | — | |||
| Accounts payable and accrued expenses | 30,584,429 | 6,241,066 | |||
| Short-term operating lease liabilities | 455,830 | 208,697 | |||
| Other current liabilities | 5,905,161 | 2,503,893 | |||
| Total current liabilities | 61,986,906 | 16,681,985 | |||
| Long term borrowings | 234,351 | 653,269 | |||
| Long-term operating lease liabilities | 272,089 | 360,306 | |||
| Other long term liabilities | 954,048 | 294,301 | |||
| Total liabilities | 63,447,394 | 17,989,861 | |||
| Commitments and contingencies (refer note 22) | |||||
| Mezzanine equity | |||||
| None authorized or issued as on September 30, 2023;Series A and A1 Preferred stock and additional paid in capital, $.0001 par value per share, 81,635,738 shares authorized (Series A 5,442,383 and Series A1 76,193,356); 39,868,173 shares issued and outstanding as on March 31, 2023. | — | 48,274,279 | |||
| Stockholders' deficit | |||||
| Preference shares, $.0001 par value per share, 60,000,000 shares authorized and none issued as of September 30, 2023 and none authorized or issued as on March 31, 2023 | — | — | |||
| Common stock and additional paid in capital, $.0001 par value per share, 220,000,000 shares authorized as of September 30 2023 and $.0001 par value per share, 108,840,000 shares authorized as of March 31, 2023 ; 68,440,829 shares and 16,501,984 shares issued and outstanding as of September 30, 2023 and March 31, 2023 respectively | 84,980,325 | 303,213 | |||
| Accumulated deficit | (86,524,231 | ) | (51,448,299 | ) | |
| Accumulated other comprehensive income/(loss) | 236,448 | (66,903 | ) | ||
| Other components of equity | 3,847,883 | 366,786 | |||
| Total stockholders’ deficit | 2,540,425 | (50,845,203 | ) | ||
| Non controlling interest | (304,854 | ) | (237,695 | ) | |
| Total deficit | 2,235,571 | (51,082,898 | ) | ||
| Total liabilities, Mezzanine equity and Stockholders’ deficit, Non controlling interest | 65,682,965 | 15,181,242 |
Roadzen Inc.Unaudited Condensed Consolidated Statements of Operations(in $, except per share data and share count)
| For the three months ended September 30, | For the six months ended September 30, | |||||||||
| Particulars | 2023 | 2022 | 2023 | 2022 | ||||||
| Revenue | 15,470,581 | 2,607,577 | 21,081,491 | 5,237,748 | ||||||
| Costs and expenses: | ||||||||||
| Cost of services (exclusive of depreciation and amortization shown separately) | 6,358,677 | 1,351,394 | 8,848,771 | 2,892,065 | ||||||
| Research and development | 602,105 | 638,447 | 1,175,405 | 1,259,911 | ||||||
| Sales and marketing | 10,059,347 | 2,237,701 | 13,526,403 | 4,171,971 | ||||||
| General and administrative | 5,577,477 | 656,198 | 8,179,460 | 1,113,061 | ||||||
| Depreciation and amortization | 413,315 | 369,420 | 780,853 | 772,259 | ||||||
| Total costs and expenses | 23,010,921 | 5,253,160 | 32,510,892 | 10,209,267 | ||||||
| Loss from operations | (7,540,340 | ) | (2,645,583 | ) | (11,429,401 | ) | (4,971,519 | ) | ||
| Interest income/(expense) | (617,470 | ) | (150,816 | ) | (835,424 | ) | (203,738 | ) | ||
| Fair value gains/(losses) in financial instruments carried at fair value | (23,590,000 | ) | (4,676,734 | ) | (23,590,000 | ) | (5,026,894 | ) | ||
| Other income/(expense) net | 637,492 | 8,152 | 699,922 | 117,689 | ||||||
| Total other income | (23,569,978 | ) | (4,819,398 | ) | (23,725,502 | ) | (5,112,943 | ) | ||
| Loss before income tax expense | (31,110,318 | ) | (7,464,981 | ) | (35,154,903 | ) | (10,084,462 | ) | ||
| Less: Income tax (benefit)/expense | 10,939 | 3,447 | 33,350 | 2,008 | ||||||
| Net Loss | (31,121,257 | ) | (7,468,428 | ) | (35,188,253 | ) | (10,086,470 | ) | ||
| Net loss attributable to non-controlling interest, net of tax | (39,457 | ) | (39,499 | ) | (67,209 | ) | (79,169 | ) | ||
| Net loss attributable to Roadzen Inc. | (31,081,800 | ) | (7,428,929 | ) | (35,121,044 | ) | (10,007,301 | ) | ||
| Net loss per share attributable to Roadzen Inc. common stockholders | (31,081,800 | ) | (7,428,929 | ) | (35,121,044 | ) | (10,007,301 | ) | ||
| Basic and diluted | (1.40 | ) | (0.45 | ) | (1.81 | ) | (0.61 | ) | ||
| Weighted-average number of shares outstanding used to compute net loss per share attributable to Roadzen Inc. common stockholders | 22,272,967 | 16,501,984 | 19,387,476 | 16,501,984 | ||||||
Roadzen Inc.Unaudited Condensed Consolidated Statements of Cash Flow (in $)
| For the six months ended September 30, | |||||
| Particulars | 2023 | 2022 | |||
| Cash flows from operating activities | |||||
| Net loss including non controlling interest | (35,188,253 | ) | (10,086,470 | ) | |
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||
| Depreciation and amortization | 780,853 | 772,259 | |||
| Stock based compensation | 3,526,209 | - | |||
| Deferred income taxes | 79,094 | (89,509 | ) | ||
| Unrealised foreign exchange loss/(profit) | (28,884 | ) | (4,672 | ) | |
| Fair value losses in financial instruments carried at fair value | 23,590,000 | 5,026,894 | |||
| Expected credit loss allowance | 171,946 | - | |||
| Lease equalisation reserve | — | (9,715 | ) | ||
| Balances written off/(back) | (1,609 | ) | — | ||
| Changes in assets and liabilities, net of assets acquired and liabilities assumed from acquisitions: | |||||
| Inventories | (73,732 | ) | (9,149 | ) | |
| Income taxes, net | 19,297 | (47,545 | ) | ||
| Accounts receivables, net | 4,352,472 | 169,205 | |||
| Prepayments and other assets | (30,343,651 | ) | (627,470 | ) | |
| Accounts payable and accrued expenses and other current liabilities | 19,106,908 | (163,364 | ) | ||
| Other liabilities | (1,118,459 | ) | 412,803 | ||
| Net cash used in operating activities | (15,127,809 | ) | (4,656,733 | ) | |
| Cash flows from investing activities | |||||
| Purchase of property and equipment, intangible assets and goodwill | (136,220 | ) | (711,706 | ) | |
| Acquisition of business | (5,748,000 | ) | - | ||
| Net cash used in investing activities | (5,884,220 | ) | (711,706 | ) | |
| Cash flows from financing activities | |||||
| Proceeds from business combination | 32,770 | - | |||
| Proceeds from issue of preferred stock | 6,079,409 | - | |||
| Proceeds from long-term borrowings | 2,805,418 | 2,164,728 | |||
| Repayments of long-term borrowings | (569,207 | ) | (243,406 | ) | |
| Net proceeds/(payments) from short-term borrowings | 9,218,689 | 3,700,604 | |||
| Net cash generated from financing activities | 17,567,079 | 5,621,926 | |||
| Effect of exchange rate changes on cash and cash equivalents | 56,372 | (26,055 | ) | ||
| Net (decrease)/increase in cash and cash equivalents (including restricted cash) | (3,388,578 | ) | 227,432 | ||
| Cash acquired in business combination | 11,252,547 | - | |||
| Cash and cash equivalents at the beginning of the period (including restricted cash) | 1,131,830 | 1,086,418 | |||
| Cash and cash equivalents at the end of the period (including restricted cash) | 8,995,799 | 1,313,850 | |||
| Reconciliation of cash and cash equivalents | |||||
| Cash and cash equivalents | 8,109,694 | 1,153,240 | |||
| Restricted cash | 886,105 | 160,610 | |||
| Total cash and cash equivalents | 8,995,799 | 1,313,850 | |||
| Supplemental disclosure of cash flow information | |||||
| Cash paid for interest, net of amounts capitalized | 378,064 | 145,061 | |||
| Cash paid for income taxes, net of refunds | 83,680 | 133,875 | |||
| Non-cash investing and financing activities | |||||
| Convertible preferred stock issued on conversion of convertible notes | — | 10,141,462 | |||
| Consideration payable in connection with acquisitions | 1,854,732 | 611,204 | |||
| Interest accrued on borrowings | 157,649 | — | |||
Non-GAAP Financial Measures
Adjusted Earnings Before Interest, Tax, Depreciation and Amortization (“Adjusted EBITDA”) is a non-GAAP financial measure which excludes the impact of finance costs, taxes, depreciation and amortization and certain other items from reported net profit or loss. We believe that Adjusted EBITDA aids investors by providing an operating profit/loss without the impact of non-cash depreciation and amortization and certain other items to help clarify sustainability and trends affecting the business. For comparability of reporting, management considers non-GAAP measures in conjunction with U.S. GAAP financial results in evaluating business performance. Adjusted EBITDA should not be considered a substitute for, or superior to, the measures of financial performance prepared in accordance with U.S. GAAP. In addition, Adjusted EBITDA does not purport to represent cash flow provided by, or used for, operating activities in accordance with GAAP and should not be used as a measure of liquidity.
The following table reconciles our net loss reported in accordance with U.S. GAAP to Adjusted EBITDA
| For the three months ended September 30, | |||||
| Particulars | 2023 | 2022 | |||
| Net loss | (31,121,257 | ) | (7,468,428 | ) | |
| Adjusted for: | |||||
| Other (income)/expense net | (637,492 | ) | (8,152 | ) | |
| Interest (income)/expense | 617,470 | 150,816 | |||
| Fair value changes in financial instruments carried at fair value | 23,590,000 | 4,676,734 | |||
| Tax (benefit)/expense | 10,939 | 3,447 | |||
| Depreciation and amortization | 413,315 | 369,420 | |||
| Stock based compensation expense | 3,526,209 | - | |||
| Adjusted EBITDA | (3,600,816 | ) | (2,276,163 | ) | |
| For the six months ended September 30, | |||||
| Particulars | 2023 | 2022 | |||
| Net loss | (35,188,253 | ) | (10,086,470 | ) | |
| Adjusted for: | |||||
| Other (income)/expense net | (699,922 | ) | (117,689 | ) | |
| Interest (income)/expense | 835,424 | 203,738 | |||
| Fair value changes in financial instruments carried at fair value | 23,590,000 | 5,026,894 | |||
| Tax (benefit)/expense | 33,350 | 2,008 | |||
| Depreciation and amortization | 780,853 | 772,259 | |||
| Stock based compensation expense | 3,526,209 | - | |||
| Non-recurring expenses | 1,819,746 | - | |||
| Adjusted EBITDA | (5,302,593 | ) | (4,199,260 | ) | |
For more information, please contact:Investor Contacts:Roadzen: Raghav Kansal ([email protected])ICR: Michael Bowen & Dhruv Chopra ([email protected])
Media Contacts:Roadzen: Sanya Soni ([email protected])ICR: [email protected]Gutenberg: [email protected]
