ZipCar Down 15% After Missing Earnings Estimates
Shares of ZipCar (NASDAQ: ZIP) are down nearly 15% after the company missed earnings estimates.
For the 2011 fourth quarter, revenue increased 21% to $62.9 million compared to $52.1 million in the prior year period. Revenue growth in the 2011 fourth quarter resulted primarily from a 25% increase in membership to more than 673,000 members at quarter end. Usage revenue represented $53.3 million in the fourth quarter of 2011 compared to $45.3 million in the prior year period with fee revenue representing substantially all of the remaining revenue in both periods.
Fee revenue represented 15% of total revenue in the 2011 fourth quarter compared to 12% in the prior year period. For the full year 2011, revenue grew 30% to $241.6 million compared to 2010 revenue of $186.1 million with usage revenue representing $207.2 million in 2011 compared to $163.8 million in 2010. Fee revenue represented substantially all of the remaining revenue in both years at 14% of total revenue in 2011 and 12% of total revenue in 2010.
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