Bird Global, Inc. (NYSE:BRDS) Q4 2022 Earnings Call Transcript

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Eric Sheridan: Thanks so much for taking the question. Maybe twofold, if I can. Coming back to Bird Canada, can you give us a better sense of how to think about the contribution of Bird Canada run rate growth, incremental margin dynamics so we can better understand unpacking the contribution of Bird Canada both from an exit velocity for 2022 and what’s embedded in sort of the 2023 guide from that asset? And then maybe following up a little bit on why it’s topics just better understanding the bridge of contribution from various forms of revenue and different pockets of the operation the Canada and the non-Canada operations in terms of bridging again to the variability on that EBITDA guide for 2023? And then maybe I’ll just squeeze one more follow-up in if I can after that. Thank you.

Shane Torchiana: That’s a handful, but — and we probably appreciate, we don’t separately report out Bird Canada results. We don’t plan on reporting Bird Canada results. But I can give you directionally. I mean, it’s meaningful in terms of the revenue contribution that Bird Canada will contribute to Bird Global for the 2023 year. And it’s accretive from an EBITDA and free cash flow — it will be accretive from a free cash flow point of view. And in terms of growth trajectory, it’s — Bird Canada has seen some healthy growth for both from the existing markets and growth markets within Canada. And I think the opportunity we see is leveraging some of the best practices that Bird Canada has deployed in 2022 into Bird Global 2023, similar items in terms of just deployed rates, RPD rates as well as cash management. So all of these things we’re trying to bring in into Bird Global.

Eric Sheridan: Okay. Maybe I’ll just ask a follow-up then. I know we’re not talking about a revenue guide for 2023, but can you talk us through how we should be thinking about some of the variables at play that could push elements of the revenue curve up or down as you think about what the probabilistic outcomes are for revenue in 2023? Thank you.

Shane Torchiana: Yes. So two parts to that. As you mentioned, we’re not guiding on revenue. And the reason is, because what we’re focused on as a management team is free cash flow generation. But to answer your question, the biggest driver that we’re going to see in there is revenue per vehicle per day as we’re not materially changing the size of our fleet in 2023. And if I tie it back to the first part of your question, part of the reason we were excited about the Bird Canada acquisition is, they were doing three trips per vehicle per day in very similar market, into the markets that we were operating in in North America. So we see quite a bit of operational upside. I’ve already mentioned to the tune of 10% to 20% conservatively for this year as we roll out similar operating strategies, but we do see quite a bit of room on that asset efficiency front, which longer term we think can be a material revenue driver without significantly increasing the size of the fleet.

Eric Sheridan: Great. Thank you.

Operator: Thank you. There are no further questions at this time and I would like to turn floor back over to Mr. Torchiana for closing comments.

Shane Torchiana: Thank you very much. So as a management team, we’ve made great progress in identifying the areas of the business where we can improve efficiency as we’ve discussed and importantly create value for our stockholders. And I can speak for the entire senior leadership team that we’re more energized right now about the future of Bird than we’ve ever been and the mission that we serve. So thank you all for the time and we look forward to talking to you next quarter.

Operator: This concludes today’s conference. You may disconnect your lines at this time. We thank you for your participation.

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