Marti Technologies Inc ((MRT)) has held its Q4 earnings call. Read on for the main highlights of the call.
Marti Technologies Inc. recently held its earnings call, revealing a mixed sentiment. The company showcased significant growth in its ride-hailing services, with promising revenue forecasts and operational efficiencies. However, challenges such as decreased overall revenue and increased administrative costs were also highlighted. Despite these hurdles, Marti Technologies remains focused on growth, leveraging its market leadership and technological advancements.
Ride Hailing Service Expansion and Monetization
Marti Technologies has strategically shifted its focus to ride-hailing services, monetizing them in October 2024 and implementing a dynamic pricing model in January 2025. This move has resulted in a remarkable 233% increase in unique ride-hailing riders and a 146% increase in registered drivers in 2024, marking a significant milestone in the company’s growth trajectory.
Revenue Growth and Positive EBITDA Forecast
The company is on a promising path to nearly double its revenue from $18.7 million in 2024 to $34 million in 2025. Marti Technologies also expects to achieve positive adjusted EBITDA in 2025, signaling a strong financial outlook for the coming year.
Operational Efficiency in Two-Wheeled Electric Vehicle Business
Marti Technologies has implemented operational efficiency measures that have led to a 10.5% reduction in the total cost of revenues year-over-year, despite maintaining a similar fleet size. The acquisition of Zoba’s AI technology has enhanced vehicle deployment efficiency, doubling daily rides per vehicle.
Market Leadership and First-Mover Advantage
As the number one urban mobility app in Turkey, Marti Technologies holds a first-mover advantage in ride-hailing and is the largest electric vehicle operator in the country. This leadership position strengthens its competitive edge in the market.
Decrease in Overall Revenue
Despite the monetization of ride-hailing services, Marti Technologies experienced a decrease in overall revenue from $20 million in 2023 to $18.7 million in 2024. This decline is primarily attributed to the reduced number of two-wheeled electric vehicles deployed.
Increased General and Administrative Expenses
The company’s general and administrative expenses surged by 226% from $15.1 million in 2023 to $49.2 million in 2024, largely due to increased share-based compensation. This rise in expenses presents a challenge that the company needs to address.
Negative Adjusted EBITDA
Marti Technologies reported a negative adjusted EBITDA of $19.3 million in 2024, which is 8.9% lower than the previous year’s negative adjusted EBITDA of $17.7 million. This was influenced by aggressive investments in ride-hailing services, reflecting the company’s commitment to future growth.
Forward-Looking Guidance
During the earnings call, Marti Technologies outlined its strategic focus on ride-hailing operations in Turkey, emphasizing a significant shift towards monetizing this service. The company expects continued growth, forecasting 2.15 million riders and 310,000 drivers by mid-2025. Revenue is anticipated to double to $34 million in 2025, with plans to achieve positive adjusted EBITDA, excluding further investments in ride-hailing growth. Marti also aims to expand operations across more Turkish cities to capture a larger share of the $3 billion annual revenue opportunity in Turkey’s ride-hailing market.
In conclusion, Marti Technologies Inc.’s earnings call highlighted a mix of growth potential and challenges. The company is making significant strides in expanding its ride-hailing services and improving operational efficiencies, despite facing revenue declines and increased expenses. With a strong market position and strategic focus on growth, Marti Technologies is poised for a promising future.