Voi delivers on transition from hypergrowth to profitability

Jul 20, 2023

Voi has today filed its 2022 annual report to the Swedish Companies Registration Office. 2022 was a year focused on the transition from operating scale to profitability, with the execution of operational efficiency improvements and an organisational restructuring helping Voi position itself towards sustainable EBITDA generation.

In the years following Voi’s founding in 2018, the company made significant investments towards achieving its vision of cities made for living. The Swedish micromobility operator rapidly scaled its service to over 100 cities across 12 European countries, with more than 100 000 vehicles completing over 195 million rides to date. Furthermore, Voi invested heavily in innovative technologies to enhance safety, parking, sustainability and operational efficiency.

Voi continues to grow its user base, service offering and footprint but in 2022 added company-wide initiatives to drive toward profitability.

We are proud of the transformation we accomplished during 2022. While not yet visible in our annual accounts due to the timing of our initiatives, our efforts resulted in a double-digit Group EBITDA margin during Q2 2023 and EBIT profit for the first time in June 2023. We are now on track to full-year profitability demonstrating the high operating leverage in our business”, says Mathias Hermansson, CFO and Deputy CEO of Voi Technology.

2022 was a transformational year that focused on 2023 EBITDA profitability

Voi continues to win the hearts and minds of our two main customers: users and cities. Voi has the highest ride market share within our footprint according to third-party data, and the largest market share of scooters under licensed city tenders in Europe.

During 2022, Voi grew net revenues by 30% to SEK 1 203 (927) million with Germany and the UK as the two largest markets and the largest drivers of growth during the year.

Concurrently, Voi implemented targeted measures to improve operational efficiency, resulting in a gross margin of 44% for 2022, an increase of more than 10 percentage points compared with 2021. The improvement continued in H1 2023 with similar incremental uplift. Market EBITDA (profit from all countries before headquarter costs and depreciation) also grew materially during the year, reaching over SEK 200 million.

Voi completed an organisational restructuring at the end of 2022 resulting in an improved cost structure. Today the central cost base is 35% lower than last year, despite continued growth in user scale.

Consolidated EBITDA for the year improved to SEK -419 (-516) million or a 21 percentage point improvement in EBITDA margin. Consolidated EBIT for the year improved to SEK -834 (-886) million.

While still loss-making as a group in 2022, one should note that the consolidated results include one-time restructuring and pre-IPO expenses incurred during the year, but do not include the full effect of the improvements made. On a run-rate basis, our initiatives have made Voi an even stronger and more mature company”, says Mathias Hermansson.

The full-year aim for 2023 is to reach Group EBITDA profitability, a proxy for positive operating cash flow. This would be a key milestone in building a scale-up in a new industry in record time, with EBIT profitability as the next target. Voi is on track to deliver on its 2023 target. Q2 2023 was Group EBITDA profitable for a full quarter for the first time with over 10% EBITDA margin. Voiexpects continued strong performance in Q3, which historically has been the strongest quarter of the year.

Entering the next phase of micromobility

Riders and cities continue to choose Voi in 2023, with notable recent tender wins in two major European capitals London and Vienna.

Voi has never been stronger than we are today, thanks to the contributions and achievements of all our colleagues, partners and shareholders during 2022. We have the industry’s best team working relentlessly step by step to deliver the most efficient, safe and sustainable micromobility service on the streets for our users and cities. The demand for our service continues to grow and we are only at the beginning of this transformation in urban mobility”, says Mathias Hermansson.

We continue to be prudent with our capital, with our last capital round in December 2021. We remain laser-focused on building the strongest and most sustainable company we can. The number of operators reduces each year and we expect further industry consolidation over the coming 12-18 months. Our conviction is that Voi is one of the companies best positioned to win in thisenvironment”, says Mathias Hermansson.


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