Swedish micromobility leader Voi has marked a significant milestone by achieving its first profitable year in 2024. The company, renowned for its extensive fleet of shared scooters and bikes, recorded a net revenue of €132.8 million ($138 million) and an adjusted EBITDA profit of €17.2 million ($17.9 million). This marks a turning point for Voi as it considers potential expansion into public markets, riding on the back of its newfound financial stability.
Voi's founder and CEO, Frederik Hjelm, attributed the company's success to a disciplined approach towards cost management and operational efficiency. The company's vehicle profit margins climbed to 57% in 2024 from 49% in the previous year. Hjelm emphasized their focus on meticulous attention to detail and discipline as pivotal elements of their profitability strategy.
“A thousand small things that distill down to one thing, which is really a focus on discipline and obsession with small details,” – Hjelm
Operating a fleet of approximately 100,000 vehicles, predominantly scooters, Voi has leveraged cutting-edge technology to enhance its operations. By utilizing machine learning models, the company optimizes predictive maintenance and battery swapping schedules, further elevating their operational efficiency. This innovative approach has contributed significantly to extending the lifespan of their vehicles to around eight years, a critical factor in boosting profitability.
Hjelm highlighted Voi's strategic decision in 2021 to pivot towards profitability, reducing reliance on equity investors. This strategic shift bore fruit as the company achieved adjusted EBIT profitability with earnings around €100,000 ($104,000).
“Me and my CFO said at the end of 2021 that we don’t want to be dependent on equity investors anymore, so let’s turn this company profitable,” – Hjelm
Voi's financial growth trajectory is further underscored by its successful bond issuance. In October 2024, Voi secured €125 million ($130 million) in senior secured bonds, demonstrating significant investor confidence. The company completed its first €50 million ($52 million) drawdown from the bond issuance to expand its fleet and enter new European markets.
“Raising a public bond is proof of trust from the very sophisticated public debt bond investors,” – Hjelm
With healthy vehicle utilization rates, each vehicle averages up to 10 rides per day during peak months and two rides per day in off-peak periods. This robust utilization reflects strong demand for Voi's services across its operational regions. Additionally, the company plans to significantly bolster its bike fleet over the coming months to meet growing consumer demand.
Voi concluded 2024 with a solid financial footing, holding €60 million ($62 million) in cash and cash equivalents. The company's improved bottom line positions it as a viable candidate for public market entry in the next few years.
“Now we’re starting to show real cash positive financials and EBIT profitability, so we’re getting to a place where we’d be a good candidate for the public markets in, say, two to three years from now,” – Hjelm
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