Micro-mobility company Bird Global, Inc. (BRDS - Get Rating) delivers electric transportation solutions for short distances. The company offers a fleet of shared micro electric vehicles and also sells vehicles to distributors, retailers, and direct customers.

Founded in 2017, the company has been focusing on scaling its operations and expanding its footprint. Earlier this year, BRDS announced the approval to double its shared e-scooter fleet size in New York City. It also announced its plans to scale its e-mobility service in Washington, D.C., by more than 20%. In addition, the company made available its custom-designed and engineered e-bike, the Bird Bike, throughout the UK and announced the launch of a shared e-scooter service in Indio, California. BRDS is expected to benefit from the soaring gas prices, providing clean alternatives to gas-powered transportation. However, the company’s Adjusted EBITDA is in the red. BRDS is taking active steps to accelerate its path to profitability by streamlining and consolidating its resourcing against its core business. The company expects to maintain a healthy gross margin profile and register positive Adjusted EBITDA for the third quarter of 2022 and fiscal 2023.

BRDS shares have slumped 91.7% over the past year and 86.8% year-to-date. The stock is also currently trading below its 50-day and 200-day moving averages.

Here’s what could shape BRDS’ performance in the near term:

Mixed Financials

BRDS’ total revenues for the fiscal first quarter ended March 31, 2022, increased 47.9% year-over-year to $37.98 million. Ride Profit (before Vehicle Depreciation) was $13 million, representing an increase of 72% compared to $7.60 million in the prior-year period. The company’s net income came in at $10.35 million compared to a net loss of $76.20 million in the prior-year period. However, its loss from operations increased 148.5% year-over-year to $96.79 million. Its adjusted EBITDA loss stood at $36.80 million, up 24.7% from the year-ago value. Also, cash, cash equivalents, and restricted cash balance decreased 64.6% year-over-year to $70.35 million.

POWR Ratings Reflect Uncertainty

BRDS has an overall rating of C, translating to Neutral in our proprietary POWR Ratings system. The POWR Ratings are calculated considering 118 distinct factors, with each factor weighted to an optimal degree.

The stock also has a grade of C for Momentum, consistent with weak price performance over the past months.

Of the 90 stocks in the B-rated Industrial – Services industry, BRDS is ranked #79.

Beyond what I have stated above, you can also view BRDS’ grades for Quality, Growth, Sentiment, Value, and Stability here.

View the top-rated stocks in the Industrial – Services industry here.

Bottom Line

The company is currently focusing on profitability. But the global logistics and supply chain interruptions could hamper growth. While the company has demonstrated significant improvement in its bottom line, reversing its losses, Wall Street expects its EPS to remain negative at least this year. Thus, it could be wise to wait for further operational and fundamental improvement before investing in the stock.

BRDS shares were trading at $0.82 per share on Monday morning, down $0.00 (+0.13%). Year-to-date, BRDS has declined -86.71%, versus a -16.64% rise in the benchmark S&P 500 index during the same period.

About the Author: Subhasree Kar

Subhasree’s keen interest in financial instruments led her to pursue a career as an investment analyst. After earning a Master’s degree in Economics, she gained knowledge of equity research and portfolio management at Finlatics. More...

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