In a shocking turn of events, Bird has admitted that it has been overstating its revenue for the past two years. TheVerge reported that “The phantom revenue was discovered after an audit of financial statements from 2020 and 2021 in which Bird found it was counting as revenue customers’ preloaded “wallet” balances following the completion of certain scooter trips.”
This revelation comes as a huge disappointment to those who believed in the Los Angeles startup. Bird has been struggling as of late, and this news is sure to further damage the company’s reputation. It remains to be seen how Bird will recover from this latest setback.
Several other executives have left in recent months as the company’s financial outlook continues to worsen. In June, the New York Stock Exchange warned Bird it was at risk of being delisted if its stock continued to trade under $1. This news also comes on the heels of a massive shake-up at Bird that saw them replaced by president and chief operating officer Shane Torchiana. (Vander Zanden remains chair of the board.)
This news will no doubt come as a surprise to Bird’s investors and customers. Stay tuned for more updates on this developing story.
LAStartups.com is a digital lifestyle publication that covers the culture of startups and technology companies in Los Angeles. It is the go-to site for people who want to keep up with what matters in Los Angeles’ tech and startups from those who know the city best.