Second Quarter Revenue Increases 62% to $9.1
Million, as Rental Days exceeded 333,000 up 44% Year-over-Year;
HyreCar Inc. (NASDAQ: HYRE), the carsharing marketplace for
ridesharing and food/package delivery services, today reported
financial results and provided a corporate update for the second
quarter June 30, 2021.
Second Quarter 2021 Financial Highlights
- Revenue was $9.1 million, compared to $5.6 million in 2020, an
increase of 62% from the same quarter last year.
- Net Loss of ($9.3) million and earnings per share of ($0.45),
compared to ($3.8) million and ($0.22) in the same period last
year.
- Adjusted EBITDA of ($7.1) million and adjusted EBITDA per share
of ($0.36), also referred to as adjusted net loss per share,
compared to $(1.7) million or ($0.10) per share in the same period
last year.
- Cash and Cash Equivalents were $24.9 million as of June 30,
2021.
Additional Second Quarter 2021 Highlights
- New drivers to the platform in the Second quarter of 2021 were
up 49% year over year
- Number rental days on our platform increased 44% from
approximately 231,000 in the Second quarter of 2021 to 333,000
compared to the same period last year
- Commercial bookings represented more than 75% of all cars
rented on the platform
- Cars listed from existing accounts were over 55% of the total
gross cars listed
“HyreCar’s Second-quarter revenues grew to $9.1 million in the
quarter, showing the resilience of our platform and the growing
demand for our services as the country opens up,” said Joe Furnari,
Chief Executive Officer of HyreCar. “In addition, recently secured
millions of dollars of financing for our fleet partners, solidifies
our ecosystem to help drivers and fleets participate in the
transportation as a service industry through partnerships with some
of the largest players in the gig ecosystem and are laying the
groundwork for adding vehicles and drivers at scale over the next
18 month.”
Adjusted EBITDA is a non-GAAP financial measure. See the
reconciliations of these measures to their respective most directly
comparable GAAP measure below in this press release.
Second Quarter 2021 Financial Discussion
Total revenue in the second quarter of 2021, increased 62% to a
record $9.1 million, compared to $5.6 million, in the second
quarter of 2020. Revenue growth in the second quarter was primarily
driven by rental days increasing 44% to approximately 333,000 in
the Second quarter June 30, 2021.
Gross profit for the Second quarter of 2021 was $0.8 million,
adjusted for one-time expenses related to the claims portfolio
transition to a single claims processor, our gross profit margin
was 24%.
Total operating expenses, consisting of general and
administrative, sales and marketing, and research and development
expenses were $10.1 million in the second quarter of 2021, compared
to $3.7 million in the same period in the prior year. This was
primarily due to investments in marketing and sales to drive higher
top of the funnel volume as well as technology and operations to
continue scaling HyreCar for accelerated growth in 2021 and
beyond.
Net loss in the second quarter of 2021 totaled $9.3 million, or
($0.45) per share, compared to a net loss of $3.8 million, or
($0.22) per share, in the prior year. Adjusted net loss for the
Second quarter, after excluding certain non-cash stock-based
compensation, depreciation and amortization, was $7.1 million, or
$(0.36) per share. A reconciliation of net loss to adjusted net
loss per share is included within this press release.
Cash and Cash Equivalents totaled $24.9 million as of June 30,
2021.
Conference Call
Management will host an investor conference call at 1:30 p.m.
PST (4:30 p.m. EST) on Tuesday August 10, 2021, to discuss
HyreCar’s Second quarter 2021 financial results, provide a
corporate update, and conclude with Q&A from participants. To
participate in the call, please dial (866) 670-5260 (domestic) or
(409) 217-8773 (international). The conference code is 7264267.
This call is being webcast and can be accessed on the Investor
Relations section of Hyrecar’s website at:
https://ir.hyrecar.com/.
A replay of the webcast will be available approximately two
hours after the conclusion of the call and remain available for
approximately 90 calendar days.
About HyreCar
HyreCar Inc. (NASDAQ: HYRE) is a nationwide leader operating a
carsharing marketplace for ridesharing through our proprietary
platform. The Company has established a leading presence in
Transportation-as-a-Service (“TaaS”) through vehicle owners and
institutions, such as franchise car dealerships, independent car
dealerships and rental car companies, who have been disrupted by
automotive asset sharing. By providing a unique opportunity through
our safe, secure, and reliable marketplace, HyreCar is transforming
the industry by empowering all to profit from TaaS. For more
information please visit hyrecar.com.
Forward-Looking Statements
Statements in this release concerning HyreCar Inc.’s (“HyreCar”
or the “Company”) future expectations and plans, including, without
limitation, HyreCar’s future earnings, partnerships and technology
solutions, its ability to add and maintain additional car listings
on its platform from car dealers, and consumer demand for cars to
be used for ridesharing, may constitute forward-looking statements
for the purposes of the safe harbor provisions under the Private
Securities Litigation Reform Act of 1995 and other federal
securities laws and are subject to substantial risks, uncertainties
and assumptions. You should not place reliance on these
forward-looking statements, which include words such as “could,”
“believe,” “anticipate,” “intend,” “estimate,” “expect,” “may,”
“continue,” “predict,” “potential,” “project” or similar terms,
variations of such terms or the negative of those terms. Although
the Company believes that the expectations reflected in the
forward-looking statements are reasonable, the Company cannot
guarantee such outcomes. HyreCar may not realize its expectations,
and its beliefs may not prove correct. Actual results may differ
materially from those indicated by these forward-looking statements
as a result of various important factors, including, without
limitation, market conditions and the factors described in the
section entitled “Risk Factors” in HyreCar’s most recent Annual
Report on Form 10-K and HyreCar’s other filings made with the U. S.
Securities and Exchange Commission. All such statements speak only
as of the date made. Consequently, forward-looking statements
should be regarded solely as HyreCar’s current plans, estimates,
and beliefs. Investors should not place undue reliance on
forward-looking statements. HyreCar cannot guarantee future
results, events, levels of activity, performance or achievements.
HyreCar does not undertake and specifically declines any obligation
to update, republish, or revise any forward-looking statements to
reflect new information, future events or circumstances or to
reflect the occurrences of unanticipated events, except as may be
required by applicable law.
Non-GAAP Financial Information
To supplement HYRE’s financial information presented in
accordance with generally accepted accounting principles in the
United States of America, or GAAP, HYRE presents certain financial
measures that are not prepared in accordance with GAAP,
specifically adjusted EPS. These non-GAAP financial measures, which
are defined below, should not be considered in isolation from, or
as a substitute for, financial information prepared in accordance
with GAAP. These non-GAAP financial measures are not based on any
standardized methodology prescribed by GAAP and are not necessarily
comparable to similarly-titled measures presented by other
companies.
HYRE is presenting these non-GAAP financial measures to assist
investors in seeing HYRE’s operating results through the eyes of
management and because HYRE believes that these measures provide a
useful tool for investors to use in assessing HYRE’s operating
performance against prior period operating results and against
business objectives. HYRE uses the non-GAAP financial measures in
evaluating its operating results and for financial and operational
decision-making purposes.
The accompanying tables provide more detail on the GAAP
financial measures that are most directly comparable to the
non-GAAP financial measures described above and the related
reconciliations between these financial measures. HYRE has not
reconciled adjusted EPS guidance to GAAP net income or GAAP net
income per diluted share, respectively, because HYRE does not
provide guidance for the reconciling items between these measures
and GAAP net income or GAAP net income per diluted share,
respectively. As certain of the items that impact GAAP net income
and/or GAAP net income per diluted share cannot be reasonably
predicted at this time, HYRE is unable to provide such guidance.
Accordingly, a reconciliation to GAAP net income or GAAP net income
per diluted share is not available without unreasonable effort.
The following table provides a reconciliation of net loss to
Adjusted EBITDA for the three and six months ended June 30, 2021
and 2020:
Three Months Ended
Three Months Ended
Six Months Ended
Six Months Ended
June 30,
June 30,
June 30,
June 30,
2021
2020
2021
2020
Net loss $
(9,335,160
)
$
(3,853,475
)
$
(16,541,695
)
$
(7,911,691
)
Adjusted to exclude the following: Other expense (income), net
(169
)
(6,493
)
254
(36,122
)
Provision for income taxes
800
—
800
800
Depreciation and amortization
19,269
19,159
38,539
38,316
Stock-based compensation expense
2,193,869
2,051,141
5,961,543
2,466,312
Prior expenses expected to be settled in stock included in
liabilities
—
93,941
—
192,871
Adjusted EBITDA $
(7,121,391
)
$
(1,695,727
)
$
(10,540,559
)
$
(5,249,514
)
HYRECAR INC. CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
Three Months Ended
Six Months Ended
Six Months Ended
June 30,
June 30,
June 30,
June 30,
2021
2020
2021
2020
Revenue $
9,057,866
$
5,583,388
$
16,506,266
$
11,363,801
Cost of revenue
8,253,164
3,045,726
12,969,314
6,651,027
Gross profit
804,702
2,537,662
3,536,952
4,712,774
Operating Expenses: General and administrative
6,090,899
3,911,065
11,795,352
7,139,237
Sales and marketing
2,875,084
1,871,099
5,582,275
4,161,271
Research and development
1,173,248
615,466
2,699,966
1,359,279
Total operating expenses
10,139,231
6,397,630
20,077,593
12,659,787
Operating loss
(9,334,529
)
(3,859,968
)
(16,540,641
)
(7,947,013
)
Other (income) expense Interest expense
3,893
11,310
5,799
11,329
Other income
(4,062
)
(17,803
)
(5,545
)
(47,451
)
Total other income
(169
)
(6,493
)
254
(36,122
)
Loss before provision for income taxes
(9,334,360
)
(3,853,475
)
(16,540,895
)
(7,910,891
)
Provision for income taxes
800
—
800
800
Net loss $
(9,335,160
)
$
(3,853,475
)
$
(16,541,695
)
$
(7,911,691
)
Weighted average shares outstanding - basic and diluted
20,521,674
17,181,496
19,881,584
16,803,232
Weighted average net loss per share - basic and diluted $
(0.45
)
$
(0.22
)
$
(0.83
)
$
(0.47
)
HYRECAR INC. CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30,
December 31,
2021
2020
Assets Current assets: Cash and cash equivalent $
24,021,863
$
4,923,515
Restricted cash
877,586
—
Accounts receivable
101,615
109,366
Deferred offering costs
—
33,164
Insurance deposits
2,211,625
749,454
Other current assets
305,255
313,812
Total current assets
27,517,944
6,129,311
Property and equipment, net
6,823
8,425
Intangible assets, net
43,094
80,031
Other assets
—
95,000
Total assets $
27,567,861
$
6,312,767
Liabilities and Stockholders' Equity (Deficit) Current
liabilities: Accounts payable $
5,197,794
$
2,275,559
Accrued liabilities
5,627,276
4,359,348
Insurance reserve
1,990,482
2,113,039
Note payable, current portion
1,999,175
1,554,548
Deferred revenue
63,068
76,059
Total current liabilities
14,877,795
10,378,553
Note payable, net of current portion
—
444,627
Total liabilities
14,877,795
10,823,180
Commitments and contingencies (Note 3)
—
—
Stockholders' equity (deficit): Preferred stock, 15,000,000
shares authorized, par value $0.00001, 0 shares issued and
outstanding as of June 30, 2021 and December 31, 2020, respectively
—
—
Common stock, 50,000,000 shares authorized, par value $0.00001,
20,961,319 and 17,741,713 issued and outstanding as of June 30,
2021 and December 31, 2020, respectively
209
177
Additional paid-in capital
73,467,587
39,725,445
Accumulated deficit
(60,777,730
)
(44,236,035
)
Total stockholders' equity (deficit)
12,690,066
(4,510,413
)
Total liabilities and stockholders' equity (deficit) $
27,567,861
$
6,312,767
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210810005949/en/
John Evans Investor Relations 415-309-0230
j.evans@HyreCar.com
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