Zoomcar (NASDAQ: ZCAR) is witnessing a rollercoaster week on the stock market, with its shares soaring 34% on Wednesday only to plummet during pre-market trading on Friday. These fluctuations coincided with significant announcements and developments from the company.
In a recent SEC filing, Zoomcar, the car rental company, indicated its anticipation of increased total revenue for the fiscal year ended 2024, projecting a rise to approximately $9.8 million from $8.6 million in 2023. This company achieved this revenue boost due to strategic shifts focusing on longer-duration trip bookings aimed at maximizing revenue, coupled with a transition to direct settlement processes which reduced incentive payments to company hosts.
Simultaneously, Zoomcar expects a substantial decrease in net loss for the fiscal year 2024, plummeting from $62 million in 2023 to around $34 million. The company attributed this improvement to stringent cost-cutting measures implemented since January 2023, including reductions in personnel expenses, closure of certain subsidiary operations, and optimization of its India-based call center operations.
Moreover, Zoomcar disclosed the departure of its former president, Adarsh Menon, who resigned at the end of June. The company hasn’t disclosed any plans for a replacement for Menon.
Furthermore, Zoomcar announced delays in filing its Form 10-K for the year ended March 31, 2024. The company cited the need for additional time to ensure adequate disclosure of certain information that was not readily available.
Zoomcar (NASDAQ: ZCAR) Stock Reaction
As of 07:23 a.m. (Eastern Time) Thursday, ZCAR stock traded at $0.1630, marking a 10.93% decrease compared to the previous trading session.
Salman Akhtar is a finance, stocks, and technology journalist with years of experience across various news organizations. He has contributed his expertise to outlets such as 24NewsHD, TrimFeed, The Voice Pakistan, and TheTechBasic. Salman is passionate about making complex topics accessible to a broad audience. His dedication to delivering accurate and timely information has established him as a trusted voice in the industry. Read Full Bio
