Financial News

Roadzen Reports Record Revenue for the Second Fiscal Quarter 2024

Revenue Increasing 493% Year-Over-Year to $15.4 Million

Key Highlights:

  • Roadzen's revenue for the quarter ended September 30, 2023 experienced a substantial increase of $12.8 million over the same quarter of the previous fiscal year.
  • Growth underscores strong demand for Roadzen’s advanced AI solutions in the $800 billion auto insurance industry.
  • Revenue composition highlights the strength of Roadzen’s strategic plan with brokerage solutions contributing 54% and enterprise technology sales of the Insurance as a Service (IaaS) platform accounting for 46%.

NEW YORK, Nov. 13, 2023 (GLOBE NEWSWIRE) -- Roadzen Inc. (Nasdaq: RDZN), a global pioneer in AI-driven insurance and mobility solutions, today reported its first quarterly earnings since becoming a publicly listed entity. The Company's second quarter of its fiscal year 2024 closed with revenue reaching $15.4 million marking a 493% increase from the same quarter last year. Management attributes this growth to strategic acquisitions as well as organic revenue expansion of 89%.

Rohan Malhotra, Co-Founder and CEO of Roadzen, stated, "We are pleased to announce that our first quarter as a public company represents the best revenue quarter in our history, concluding with $15.4 million in revenue and significant year-over-year growth. As AI continues to reshape industry, Roadzen is strategically positioned to become a global leader at the intersection of mobility and insurance."

Malhotra further commented that, "Our revenue growth, fueled by both strategic acquisitions and organic growth, reflects our commitment to delivering innovative solutions within the evolving auto insurance ecosystem. We are focused on bringing onboard new clients, enhancing our embedded distribution model, and employing AI to optimize operations. Roadzen's cutting-edge AI uniquely positions us to be the preferred partner for insurers, fleets and carmakers aiming to innovate their auto insurance offerings."

The Company’s net loss of $31.1 million includes $27.5 million of non-cash, non-recurring and other extraordinary items resulting in an Adjusted EBITDA1 loss of $3.6 million. The Adjusted EBITDA loss of $3.6 million compares to an Adjusted EBITDA loss of $2.3 million in the same quarter of the prior year while growing revenue 493% over the corresponding period.

Market Expansion and Strategic Acquisitions: Roadzen has extended its global reach with strategic acquisitions in the US and UK markets during June 2023. The acquisition of Global Insurance Management Ltd. (GIM), a prominent Managing General Agent specializing in auto insurance, extended warranties and global claims management, solidifies our position in the UK. Similarly, the acquisition of the National Automobile Club (NAC), a California-based entity known for its claims management expertise and round-the-clock commercial roadside assistance, has bolstered our service offerings in the US.

Roadzen partners with 90 enterprise clients that include leading insurers, automakers and large fleets, as well as 3,000 small and medium businesses including agents, brokers, dealerships, and fleets under 100 vehicles.

About Roadzen Inc.
Roadzen Inc. (NASDAQ: RDZN) is a leading insurance technology company on a mission to transform global auto insurance powered by advanced AI. Thousands of clients - from some of the world's leading insurers, fleets, and carmakers to small fleets, brokers, and insurance agents - use Roadzen's technology to build new products, sell insurance, process claims, and improve road safety. Roadzen's pioneering work in telematics and computer vision has earned recognition as a top AI innovator by publications such as Forbes, Fortune, and Financial Express. Roadzen has approximately 400 employees across its global offices in the US, India, UK, and France. For more information, visit www.roadzen.io

Cautionary Statement Regarding Forward-Looking Statements

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We have based these forward-looking statements on our current expectations and projections about future events. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” and “continue,” or the negative of such terms or other similar expressions. Such statements include, but are not limited to, statements regarding our strategy, demand for our products, expansion plans, future operations, future operating results, estimated revenues, losses, projected costs, prospects, plans and objectives of management, as well as all other statements other than statements of historical fact included in this press release. Factors that might cause or contribute to such a discrepancy include, but are not limited to, those described in “Risk Factors” in our Securities and Exchange Commission (“SEC”) filings, including the definitive proxy statement/prospectus we filed with the SEC on August 14, 2023. We urge you to consider these factors, risks and uncertainties carefully in evaluating the forward-looking statements contained in this press release. All subsequent written or oral forward-looking statements attributable to our Company or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. The forward-looking statements included in this press release are made only as of the date of this release. Except as expressly required by applicable securities law, we disclaim any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

1. Adjusted EBITDA is a non-GAAP financial metrics. See “Non-GAAP Financial Measures” at the end of this press release for more information, including a reconciliation to the nearest GAAP financial measure.


Roadzen Inc.
Condensed Consolidated Balance Sheets
(in $, except per share data and share count)

Particulars As of
September 30,
2023
(Unaudited)
 As of March 31,
2023
 
Assets     
Current assets:     
Cash and cash equivalents 8,109,694 589,340 
Accounts receivable, net 8,687,873 1,535,985 
Inventories 132,641 59,897 
Prepayments and other current assets 34,468,175 3,181,936 
Total current assets 51,398,383 5,367,158 
Restricted cash 886,105 542,490 
Non marketable securities 4,910,030 4,910,030 
Property and equipment, net 305,335 232,493 
Goodwill 2,304,159 996,441 
Operating lease right-of-use assets 918,940 545,988 
Intangible assets, net 4,732,963 2,469,158 
Other long term assets 227,050 117,484 
Total assets 65,682,965 15,181,242 
      
Liabilities, mezzanine equity and stockholders' deficit     
Current liabilities     
Current portion of long-term borrowings 2,813,526 2,852,528 
Short term borrowings 14,052,206 4,875,801 
Due to insurer 8,175,754  
Accounts payable and accrued expenses 30,584,429 6,241,066 
Short-term operating lease liabilities 455,830 208,697 
Other current liabilities 5,905,161 2,503,893 
Total current liabilities 61,986,906 16,681,985 
Long term borrowings 234,351 653,269 
Long-term operating lease liabilities 272,089 360,306 
Other long term liabilities 954,048 294,301 
Total liabilities 63,447,394 17,989,861 
      
Commitments and contingencies (refer note 22)     
      
Mezzanine equity     
None authorized or issued as on September 30, 2023;Series A and A1 Preferred stock and additional paid in capital, $.0001 par value per share, 81,635,738 shares authorized (Series A 5,442,383 and Series A1 76,193,356); 39,868,173 shares issued and outstanding as on March 31, 2023.  48,274,279 
Stockholders' deficit     
Preference shares, $.0001 par value per share, 60,000,000 shares authorized and none issued as of September 30, 2023 and none authorized or issued as on March 31, 2023   
Common stock and additional paid in capital, $.0001 par value per share, 220,000,000 shares authorized as of September 30 2023 and $.0001 par value per share, 108,840,000 shares authorized as of March 31, 2023 ; 68,440,829 shares and 16,501,984 shares issued and outstanding as of September 30, 2023 and March 31, 2023 respectively 84,980,325 303,213 
Accumulated deficit (86,524,231)(51,448,299)
Accumulated other comprehensive income/(loss) 236,448 (66,903)
Other components of equity 3,847,883 366,786 
Total stockholders’ deficit 2,540,425 (50,845,203)
Non controlling interest (304,854)(237,695)
Total deficit 2,235,571 (51,082,898)
Total liabilities, Mezzanine equity and Stockholders’ deficit,
Non controlling interest
 65,682,965 15,181,242 
  

Roadzen Inc.
Unaudited Condensed Consolidated Statements of Operations
(in $, except per share data and share count)

  For the three months ended
September 30,
  For the six months ended
September 30,
 
Particulars 2023 2022  2023 2022 
Revenue 15,470,581 2,607,577  21,081,491 5,237,748 
Costs and expenses:          
Cost of services (exclusive of depreciation and amortization shown separately) 6,358,677 1,351,394  8,848,771 2,892,065 
Research and development 602,105 638,447  1,175,405 1,259,911 
Sales and marketing 10,059,347 2,237,701  13,526,403 4,171,971 
General and administrative 5,577,477 656,198  8,179,460 1,113,061 
Depreciation and amortization 413,315 369,420  780,853 772,259 
Total costs and expenses 23,010,921 5,253,160  32,510,892 10,209,267 
Loss from operations (7,540,340)(2,645,583) (11,429,401)(4,971,519)
Interest income/(expense) (617,470)(150,816) (835,424)(203,738)
Fair value gains/(losses) in financial instruments carried at fair value (23,590,000)(4,676,734) (23,590,000)(5,026,894)
Other income/(expense) net 637,492 8,152  699,922 117,689 
Total other income (23,569,978)(4,819,398) (23,725,502)(5,112,943)
Loss before income tax expense (31,110,318)(7,464,981) (35,154,903)(10,084,462)
Less: Income tax (benefit)/expense 10,939 3,447  33,350 2,008 
Net Loss (31,121,257)(7,468,428) (35,188,253)(10,086,470)
Net loss attributable to non-controlling interest, net of tax (39,457)(39,499) (67,209)(79,169)
Net loss attributable to Roadzen Inc. (31,081,800)(7,428,929) (35,121,044)(10,007,301)
           
           
Net loss per share attributable to Roadzen Inc. common stockholders (31,081,800)(7,428,929) (35,121,044)(10,007,301)
Basic and diluted (1.40)(0.45) (1.81)(0.61)
           
Weighted-average number of shares outstanding used to compute net loss per share attributable to Roadzen Inc. common stockholders 22,272,967 16,501,984  19,387,476 16,501,984 
           

Roadzen Inc.
Unaudited Condensed Consolidated Statements of Cash Flow (in $)

  For the six months ended
September 30,
 
Particulars 2023 2022 
      
Cash flows from operating activities     
Net loss including non controlling interest (35,188,253)(10,086,470)
Adjustments to reconcile net loss to net cash used in operating activities:     
Depreciation and amortization 780,853 772,259 
Stock based compensation 3,526,209 - 
Deferred income taxes 79,094 (89,509)
Unrealised foreign exchange loss/(profit) (28,884)(4,672)
Fair value losses in financial instruments carried at fair value 23,590,000 5,026,894 
Expected credit loss allowance 171,946 - 
Lease equalisation reserve  (9,715)
Balances written off/(back) (1,609) 
Changes in assets and liabilities, net of assets acquired and liabilities assumed from acquisitions:     
Inventories (73,732)(9,149)
Income taxes, net 19,297 (47,545)
Accounts receivables, net 4,352,472 169,205 
Prepayments and other assets (30,343,651)(627,470)
Accounts payable and accrued expenses and other current liabilities 19,106,908 (163,364)
Other liabilities (1,118,459)412,803 
Net cash used in operating activities (15,127,809)(4,656,733)
      
Cash flows from investing activities     
Purchase of property and equipment, intangible assets and goodwill (136,220)(711,706)
Acquisition of business (5,748,000)- 
Net cash used in investing activities (5,884,220)(711,706)
      
Cash flows from financing activities     
Proceeds from business combination 32,770 - 
Proceeds from issue of preferred stock 6,079,409 - 
Proceeds from long-term borrowings 2,805,418 2,164,728 
Repayments of long-term borrowings (569,207)(243,406)
Net proceeds/(payments) from short-term borrowings 9,218,689 3,700,604 
Net cash generated from financing activities 17,567,079 5,621,926 
Effect of exchange rate changes on cash and cash equivalents 56,372 (26,055)
Net (decrease)/increase in cash and cash equivalents (including restricted cash) (3,388,578)227,432 
Cash acquired in business combination 11,252,547 - 
Cash and cash equivalents at the beginning of the period (including restricted cash) 1,131,830 1,086,418 
Cash and cash equivalents at the end of the period (including restricted cash) 8,995,799 1,313,850 
      
Reconciliation of cash and cash equivalents     
Cash and cash equivalents 8,109,694 1,153,240 
Restricted cash 886,105 160,610 
Total cash and cash equivalents 8,995,799 1,313,850 
      
Supplemental disclosure of cash flow information     
Cash paid for interest, net of amounts capitalized 378,064 145,061 
Cash paid for income taxes, net of refunds 83,680 133,875 
Non-cash investing and financing activities     
Convertible preferred stock issued on conversion of convertible notes  10,141,462 
Consideration payable in connection with acquisitions 1,854,732 611,204 
Interest accrued on borrowings 157,649  

Non-GAAP Financial Measures

Adjusted Earnings Before Interest, Tax, Depreciation and Amortization (“Adjusted EBITDA”) is a non-GAAP financial measure which excludes the impact of finance costs, taxes, depreciation and amortization and certain other items from reported net profit or loss. We believe that Adjusted EBITDA aids investors by providing an operating profit/loss without the impact of non-cash depreciation and amortization and certain other items to help clarify sustainability and trends affecting the business. For comparability of reporting, management considers non-GAAP measures in conjunction with U.S. GAAP financial results in evaluating business performance. Adjusted EBITDA should not be considered a substitute for, or superior to, the measures of financial performance prepared in accordance with U.S. GAAP. In addition, Adjusted EBITDA does not purport to represent cash flow provided by, or used for, operating activities in accordance with GAAP and should not be used as a measure of liquidity.

The following table reconciles our net loss reported in accordance with U.S. GAAP to Adjusted EBITDA

  For the three months ended
September 30,

 
Particulars 2023 2022 
Net loss (31,121,257)(7,468,428)
Adjusted for:    
Other (income)/expense net (637,492)(8,152)
Interest (income)/expense 617,470 150,816 
Fair value changes in financial instruments carried at fair value 23,590,000 4,676,734 
Tax (benefit)/expense 10,939 3,447 
Depreciation and amortization 413,315 369,420 
Stock based compensation expense 3,526,209 - 
Adjusted EBITDA (3,600,816)(2,276,163)


  For the six months ended
September 30,

 
Particulars 2023
 2022 
Net loss (35,188,253)(10,086,470)
Adjusted for:    
Other (income)/expense net (699,922)(117,689)
Interest (income)/expense 835,424 203,738 
Fair value changes in financial instruments carried at fair value 23,590,000 5,026,894 
Tax (benefit)/expense 33,350 2,008 
Depreciation and amortization 780,853 772,259 
Stock based compensation expense 3,526,209 - 
Non-recurring expenses 1,819,746 - 
Adjusted EBITDA (5,302,593)(4,199,260)

For more information, please contact:

Investor Contacts:
Roadzen: Raghav Kansal (raghav@roadzen.io)
ICR: Michael Bowen & Dhruv Chopra (roadzenIR@icrinc.com)

Media Contacts:
Roadzen: Sanya Soni (sanya@roadzen.io)
ICR: roadzenPR@icrinc.com
Gutenberg: roadzen@thegutenberg.com  


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