Zipcar Narrows Loss in First Quarter

Zipcar Inc. reported its financial results on April 25 for the first quarter ended March 31, 2012.

“Our first quarter results set the stage for a strong 2012,” said Scott Griffith, Zipcar chairman and CEO. “During the period, we generated 22% revenue growth in our North American markets while improving performance in our UK operations. We remain on track to deliver our first full year of U.S. GAAP net income based on our growth trajectory, our leading brand and our first-to-scale advantage.”

Summary Results

For the 2012 first quarter, revenue increased 20% to $59.1 million compared to $49.1 million in the prior year period. Revenue growth resulted primarily from a 23% year-over-year increase in membership to more than 709,000 members at quarter end. Usage revenue represented $49.2 million in the first quarter of 2012, compared to $41.9 million in the prior year period.

Fee revenue, which substantially made up all the remaining revenue in both periods, represented 17% of total revenue in the 2012 first quarter compared to 15% in the prior year period.

In Zipcar’s “Established Markets” — Boston, New York, Washington, D.C. and San Francisco — first quarter revenue grew 21% to $32.8 million compared to $27.1 million in the prior year period, driven by new member additions. Income before tax for the Established Markets represented 21% of revenue in the first quarter 2012 compared to 17% in the prior year period.

U.S. GAAP net loss in the first quarter of 2012 was $3 million, or $0.08 per share, compared to a loss of $6.1 million, or $0.95 per share, in the prior year period, during which the outstanding share count was substantially lower.

Adjusted EBITDA for the 2012 first quarter broke even compared to a loss of $1.9 million in the prior year period.


For full year 2012, Zipcar reiterates its revenue outlook in the range of $290.0 million to $296.0 million. The company is increasing its full year 2012 profitability outlook with Adjusted EBITDA now expected to range from $16.0 million to $20.0 million and U.S. GAAP net income expected to range from $3 million to $7 million.

Zipcar is introducing its guidance for the 2012 second quarter, with revenue expected in the range of $71 million to $74 million, Adjusted EBITDA expected in the range of $2 million to $4 million and U.S. GAAP net income/loss expected in the range of a net loss of $1 million to net income of $1 million.

Zipcar’s average share count is expected to be between 39.5 million to 40.5 million for the second quarter and between 40 million and 41 million for the full year. Common stock equivalents of approximately 3 to 4 million shares would be included in fully diluted shares outstanding for each period during which the company reports US GAAP net income.

Zipcar reports that it has approximately 9,300 vehicles in urban areas and college campuses throughout the United States, Canada, the United Kingdom and Spain. The company offers more than 30 makes and models in its hourly car rental service. More information is available at

Comment On This Story

Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.


Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

6 Takeaways from the 2018 International Car Rental Show

Technological solutions are finally moving from reality to theory, peer-to-peer platforms are being redefined, China has the biggest room for growth, while Sixt’s U.S. aspirations have only just begun.

The Irony of Customer Service in the Digital Age

Sure, any company would jump at the chance to use technology to reduce labor costs. But it also comes with some big, red, flashing warning lights.

Market Forces Driving Car Rental in 2018

An analysis of the conference calls of Avis Budget Group and Hertz Global Holdings reveal trends and initiatives involving fleet right sizing, pricing, ancillary revenue opportunities, and renting to ride-hailing drivers.

Job Finder: Access Top Talent. Fill Key Positions.