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.
