First Quarter Revenue Increases 29% to $7.45
Million, as Rental Days were 300,022 up 31%; Annualized Rental Day
Run Rate passes 1.2 Million
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 first
quarter March 31, 2021.
First Quarter 2021 Financial Highlights
- Revenue was $7.45 million, compared to $5.78 million in the
same period last year, an increase of 29%.
- Net Loss of ($7.2) million and earnings per share of ($0.37),
compared to ($4.1) million and ($0.25) in the same period last
year.
- Adjusted EBITDA of ($3.4) million and adjusted EBITDA per share
of ($0.16), also referred to as adjusted net loss per share,
compared to $(3.3) million or ($0.20) per share in the same period
last year.
- Cash and Cash Equivalents were $25.5 million as of March 31,
2021.
Additional First Quarter 2021 Highlights
- New drivers to the platform in the first quarter of 2021 were
up 14.0% year over year.
- Number rental days on our platform increased 31% from
approximately 230,000 in the first quarter of 2021 to 300,000
compared to the same period last year.
- Cost Per Booking decreased 39% for the first quarter 2021
compared to the same period last year due to improvements in
marketing automations and acquisition strategies.
- Commercial bookings represented more than 60% of all cars
rented on the platform.
- Cars listed from existing accounts was over 65% of the total
gross cars listed.
“HyreCar’s first-quarter revenues grew to $7.4 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. “With the additional cars we
are onboarding on a daily basis our daily rental rates continue to
grow and we are well-positioned to take advantage of opportunities
in rideshare and delivery as states continue to re-open.”
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.
First Quarter Quarter 2021 Financial Discussion
Total revenue in the first quarter of 2021, increased 29% to a
record $7.4 million, compared to $5.8 million, in the first quarter
of 2020. Revenue growth in the first quarter was primarily driven
by rental days increasing 31% to approximately 300,000 in the first
quarter March 31, 2021.
Gross profit for the first quarter of 2021 was $2.7 million,
increasing from $2.2 million in the same period last year. The 37%
gross profit margin in the quarter was a sequential improvement
from the full year gross profit margin of 33% for the year ended
December 31, 2020.
Total operating expenses, consisting of general and
administrative, sales and marketing, and research and development
expenses were $9.9 million in the first quarter of 2021, compared
to $6.3 million in the same period in the prior year. This was
primarily due to a significantly higher Non-Cash Stock Based
Compensation expense of $3.8 million associated with some annual
incentives as well as increased operations, sales, and technology
expenses to drive higher business levels, and invest in operations
and technology, in particular, to further accelerate the platform
in 2021. Without this stock based compensation expense, operating
expenses decreased versus the same period last year.
Net loss in the first quarter of 2021 totaled $7.2 million, or
($0.37) per share, compared to a net loss of $4.1 million, or
($0.25) per share, in the prior year. Adjusted net loss for the
first quarter, after excluding certain non-cash stock-based
compensation, depreciation and amortization, was $3.4 million, or
$(0.16) per share. A reconciliation of net loss to adjusted net
loss per share is included within this press release.
Subsequent to a successful secondary equity financing in
February 2021, Cash and Cash Equivalents totaled $25.5 million as
of March 31, 2021.
Conference Call
Management will host an investor conference call at 1:30 p.m.
PST (4:30 p.m. EST) on Thursday, May 13, 2021, to discuss HyreCar’s
first 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 3599448. 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 in all 50 states and the
District of Columbia via its proprietary technology platform. The
Company has established a leading presence in Transportation as a
Service (TaaS) through individual vehicle owners, dealers and
OEM’s, 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 months ended March 31, 2021 and
2020:
Three Months Ended March
31,
Three Months Ended March
31,
2021
2020
Net loss $
(7,206,535
)
$(4,058,216
)
Adjusted to exclude the following:
Other expense (income), net
423
(29,629
)
Provision for income taxes
—
800
Depreciation and amortization
19,270
19,157
Stock-based compensation expense
3,767,674
415,172
Prior expenses expected to be settled in stock included in
liabilities
—
363,155
Adjusted EBITDA $
(3,419,168
)
$(3,289,561
)
HYRECAR INC.
CONSOLIDATED BALANCE
SHEETS
(Unaudited)
March 31,
December 31,
2021
2020
Assets
Current assets:
Cash and cash equivalent
$
25,499,635
$
4,923,515
Restricted cash
751,625
—
Accounts receivable
132,827
109,366
Deferred offering costs
—
33,164
Insurance deposits
1,749,454
749,454
Other current assets
644,099
313,812
Total current assets
28,777,640
6,129,311
Property and equipment, net
7,624
8,425
Intangible assets, net
61,562
80,031
Other assets
—
95,000
Total assets
$
28,846,826
$
6,312,767
Liabilities and Stockholders' Equity
(Deficit)
Current liabilities:
Accounts payable
$
4,497,276
$
2,275,559
Accrued liabilities
826,724
4,359,348
Insurance reserve
1,747,134
2,113,039
Note payable, current portion
1,890,062
1,554,548
Deferred revenue
60,056
76,059
Total current liabilities
9,021,252
10,378,553
Note payable, net of current portion
109,113
444,627
Total liabilities
9,130,365
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 March 31, 2021 and December 31, 2020, respectively
—
—
Common stock, 50,000,000 shares
authorized, par value $0.00001, 20,353,429 and 17,741,713 issued
and outstanding as of March 31, 2021 and December 31, 2020,
respectively
203
177
Additional paid-in capital
71,158,828
39,725,445
Accumulated deficit
(51,442,570
)
(44,236,035
)
Total stockholders' equity (deficit)
19,716,461
(4,510,413
)
Total liabilities and stockholders' equity
(deficit)
$
28,846,826
$
6,312,767
HYRECAR INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited)
Three Months Ended March
31,
Three Months Ended March
31,
2021
2020
Revenues
$
7,448,400
$
5,780,413
Cost of revenues
4,716,150
3,605,301
Gross profit
2,732,250
2,175,112
Operating Expenses:
General and administrative
5,704,453
3,228,172
Sales and marketing
2,707,191
2,290,172
Research and development
1,526,718
743,813
Total operating expenses
9,938,362
6,262,157
Operating loss
(7,206,112
)
(4,087,045
)
Other (income) expense
Interest expense
1,906
19
Other income
(1,483
)
(29,648
)
Total other income
423
(29,629
)
Loss before provision for income taxes
(7,206,535
)
(4,057,416
)
Provision for income taxes
—
800
Net loss
$
(7,206,535
)
$
(4,058,216
)
Weighted average shares outstanding -
basic and diluted
19,234,382
16,424,969
Weighted average net loss per share -
basic and diluted
$
(0.37
)
$
(0.25
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210513005995/en/
Scott Brogi Chief Financial Officer scott@HyreCar.com
John Evans Investor Relations 415-309-0230
j.evans@HyreCar.com
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