On September 19, 2023, Bird Global, Inc. made a significant move in the micromobility industry by acquiring Skinny Labs, Inc., also known as Spin, from TIER Mobility for a total of $19 million. This acquisition solidifies Bird’s position as the leading micromobility operator in North America, boasting the largest market share. With a presence in approximately 350 markets worldwide and a fleet of over 200,000 vehicles, Bird’s reach and influence in the industry have expanded exponentially.
The purchase price of $19 million includes various components, including $10 million in upfront cash, $6 million in a vendor take back, and $3 million held back. This strategic investment not only strengthens Bird’s market dominance but also adds significant value to its financials. Spin’s contribution to the combined net revenue of Bird and Spin for the 12 months ending June 30, 2023, amounted to approximately $45 million. Consequently, the total net revenue for this period reached an impressive $265 million.
The acquisition is expected to generate synergies of over $20 million, further enhancing Bird’s profitability. This positive impact on earnings is due, in part, to recent operational restructuring efforts. Spin’s well-established presence in North America, operating in more than 50 cities and university campuses, brings minimal overlap with Bird’s existing footprint. This strategic advantage allows Bird to tap into new markets and expand its customer base without cannibalizing its own operations.
Overall, Bird’s acquisition of Spin marks a pivotal moment in the micromobility industry. With their combined resources and expertise, Bird is poised to revolutionize the way people commute and navigate urban environments. This strategic move sets the stage for a promising future, where Bird will continue to lead the way in providing sustainable and efficient transportation solutions.
Bird Global, Inc.
BRDS
Buy
Updated on: 24/09/2023
Financial Health
Healthy
Debt to equity ratio: Strong Buy
Price to earnings ratio: Neutral
Price to book ratio: Strong Buy
DCF: Strong Buy
ROE: Strong Sell
BRDS Stock Analysis: Earnings Decline and Positive Revenue Growth in the Transportation Sector
On September 19, 2023, BRDS stock opened at $0.70 and had a day’s range between $0.70 and $1.60. The volume for the day was 21,552,238, significantly higher than the average volume over the past three months. The market capitalization of BRDS is $9.8 million. BRDS experienced a decline of 33.32% in earnings growth in the previous year, but had positive revenue growth of 28.40%. The company has a P/E ratio of NM, indicating it is not currently profitable. The price/sales ratio is 0.20, and the price/book ratio is 0.33. The next reporting date for BRDS is scheduled for November 13, 2023, with analysts forecasting an EPS of -$1.25 for the current quarter. BRDS operates in the transportation sector, specifically in the other transportation industry.
BRDS Stock Shows Potential for Growth with +599.30% Increase: Analysts Suggest Holding Bird Global Inc
BRDS stock had an interesting performance on September 19, 2023. The 1 analyst offering 12-month price forecasts for BRDS stock had a median target of $10.00, with both the high and low estimates also at $10.00. This median estimate represents a significant increase of +599.30% from the last price of $1.43.
The current consensus among 1 polled investment analyst is to hold stock in Bird Global Inc. This rating has remained unchanged since August.
The current quarter earnings per share for BRDS stock were reported at -$1.25. However, it is important to consider other factors such as revenue.
The sales for Bird Global Inc in the current quarter were reported at $71.4 million.
Investors should keep an eye on Bird Global Inc as the reporting date for this quarter’s financial results is set for November 13.
Overall, the stock performance of BRDS on September 19, 2023, showed potential for growth based on the median target estimate of $10.00, representing a +599.30% increase from the last price. However, the current consensus among analysts is to hold the stock. Investors should closely monitor the upcoming financial results to make informed decisions about their investment in Bird Global Inc.
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