Revenues Increase 105% to $3.5 Million; Gross
Profit Increases 360% to $2.0 Million
HyreCar Inc. (NASDAQ: HYRE), the carsharing marketplace for
ridesharing, today reported financial results and provided a
corporate update for the first quarter ended March 31, 2019.
Financial Summary:
Three Months Ended
March 31,
Year-over-Year % Change
2019 2018 Net Revenues $3.5 million $1.7 million
+105% Gross Profit $2.0 million $0.4 million +360% Gross Profit
Margin 55.6% 24.7%
+125% Net Loss $(1.7) million $(1.8) million + 4% Earnings per
Share $(0.14) $(0.34) + 59%
Management Commentary
“Our momentum has continued unabated, as evidenced by our record
revenues in the first quarter totaling $3.5 million, driven by our
continued increase in rental days on our platform,” said Joe
Furnari, Chief Executive Officer of HyreCar. “This incredible
uptake of our proprietary ridesharing solution has brought us to
the cusp of net profitability. Operationally, we are lowering costs
and automating processes throughout the company, which has led to
an increasingly lean and efficient organization.”
“These results are driven by an increasingly rapid uptake of our
unique Mobility-as-a-Service (MaaS) offering from institutional
vehicle suppliers, as evidenced by the now 114 dealers listing more
than 1,700 cars on our platform as of April 2019. HyreCar’s
technology-driven platform has been widely accepted by ride-share
drivers and car owners of all types, which greatly alleviates the
supply gridlock that the ride-sharing industry faces today, while
at the same time, addressing the issue of idle inventory for
automotive dealers.”
“As we look towards the remainder of 2019, we firmly believe the
stage is set for continued growth—driven by a tenured team we’ve
put in place, an infrastructure that is built to support continued
growth and a market that is striving for solutions that HyreCar
provides. We stand at a monumental inflection point in our history
and look forward to driving long-term value creation for our
shareholders,” concluded Furnari.
First Quarter 2019 Financial Results
Total revenue in the first quarter of 2019 increased 105% to a
record $3.5 million, compared to $1.7 million in the first quarter
of 2018. Sequentially, this represents an increase of 13% when
compared to revenue of $3.1 million in the fourth quarter of 2018.
The revenue increase was driven primarily by higher rental days,
which grew to more than 138,000 during the first quarter and are
now at an annualized run rate of over 550,000 rental days.
Gross profit in the first quarter of 2019 increased to a record
$2.0 million, or 55.6% of revenues, compared to $0.4 million, or
24.7% of revenues, in the first quarter of 2018. Margin expansion
was driven by operating efficiencies from leveraging insurance
economies of scale.
Total operating expenses, consisting of research and
development, sales and marketing and general and administrative
expenses, were $3.7 million in the first quarter of 2019, compared
to $2.0 million in the same year-ago quarter. The increase in
operating expenses was primarily due to increased staffing expenses
to support higher revenue and includes $0.3 million in non-cash
stock-based compensation costs.
Net loss in the first quarter of 2019 totaled $1.7 million, or
$(0.14) per share, compared to a net loss of $1.8 million, or
$(0.34) per share, in the prior year’s quarter. Sequentially, the
net loss decreased by $1.0 million when compared to the fourth
quarter of 2018.
Cash totaled $6.3 million at March 31, 2019, compared to $6.8
million at December 31, 2018 and $0.8 million at March 31, 2018.
The Company feels it has sufficient cash resources to continue
operations indefinitely.
Conference Call
Management will host an investor conference call at 2:00 p.m.
PDT (5:00 p.m. EDT) on Thursday, May 9, 2019 to discuss HyreCar’s
first quarter 2019 financial results, provide a corporate update,
and conclude with Q&A from participants. To participate, please
use the following information:
First Quarter 2019 Conference Call and WebcastDate:
Thursday, May 9, 2019Time: 2:00 p.m. Pacific Time (5:00 p.m.
Eastern Time)U.S. Dial-in: 1-866-548-4713International Dial-in:
1-323-794-2093Conference ID: 4687416Webcast:
http://public.viavid.com/index.php?id=134357
Please dial in at least 10 minutes before the start of the call
to ensure timely participation.
A playback of the call will be available through May 16, 2019.
To listen to the replay, call 1-844-512-2921 within the United
States or 1-412-317-6671 when calling internationally. Please use
the replay pin number 4687416.
A webcast will also be available for 90 days on the IR section
of the HyreCar website or by clicking here.
About HyreCar
HyreCar Inc. (NASDAQ: HYRE) is a nationwide leader operating a
carsharing marketplace for ridesharing in all 50 States and
Washington D.C. via its proprietary technology platform. The
Company has established a leading presence in Mobility as a Service
(MaaS) 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 Mobility as a Service. 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.
HYRECAR INC.
BALANCE SHEETS
March 31, 2019
December 31, 2018
Assets Current assets: Cash and cash equivalent $ 6,338,871 $
6,764,870 Accounts receivable 152,027 161,177 Deferred offering
costs - - Deferred expenses 18,286 20,927 Other current assets
162,955 128,337 Total current assets 6,672,139
7,075,311 Property and equipment, net 12,244 10,613
Intangible assets, net 209,311 221,623 Other assets 95,000
90,000 Total assets $ 6,988,694 $ 7,397,547
Liabilities and Stockholders’ Deficit Current liabilities: Accounts
payable $ 1,037,288 $ 856,925 Accrued liabilities 637,025 775,857
Insurance reserve 370,461 348,442 Deferred revenue 71,875 53,764
Related party advances 9,629 9,629 Total current liabilities
2,126,278 2,044,617 Total liabilities
2,126,278 2,044,617
Commitments and contingencies
- - Stockholders’ equity: Preferred stock, 15,000,000 shares
authorized, par value $0.00001, 0 and 2,429,638 issued and
outstanding as of March 31, 2019 and December 31, 2018,
respectively - - Common stock, 50,000,000 shares authorized, par
value $0.00001, 12,153,021 and 11,708,041 issued and outstanding as
of March 31, 2019 and December 31, 2018, respectively 120 117
Additional paid-in capital 23,064,098 21,857,017 Subscription
receivable - related party (7,447 ) (7,447 ) Accumulated deficit
(18,194,355 ) (16,496,757 ) Total stockholders’
equity 4,862,416 5,352,930 Total liabilities and
stockholders’ equity $ 6,988,694 $ 7,397,547
HYRECAR INC.
STATEMENTS OF OPERATIONS
Three Months endedMarch 31,2019
Three Months endedMarch 31,2018
Revenues $ 3,510,725 $ 1,714,183 Cost of revenues
1,559,275 1,290,872 Gross profit 1,951,450 423,311
Operating Expenses: General and administrative 2,035,552
889,254 Sales and marketing 1,164,791 883,027 Research and
development 479,996 225,087 Total operating expenses
3,680,339 1,997,368 Operating loss (1,728,889 ) (1,574,057 )
Other (income) expense : Interest expense 810 161,773 Other
(income) expense (32,101 ) 31,201 Total other
(income) expense (31,291 ) 192,974 Loss before provision for
income taxes (1,697,598 ) (1,767,031 ) Provision for income
taxes - Net loss $ (1,697,598 ) $
(1,767,031 ) Weighted average shares outstanding - basic and
diluted 11,770,125 5,252,953 Weighted average net
loss per share - basic and diluted $ (0.14 ) $ (0.34 )
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version on businesswire.com: https://www.businesswire.com/news/home/20190509005944/en/
Media Relations:Ronjini JoshuaThe Silver
TelegramHyreCar@thesilvertelegram.com
Investor Contact:Ted HaberfieldPresident, MZ Group – MZ
North AmericaHYRE@mzgroup.uswww.mzgroup.us
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