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 |
||||||||||
| 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 Webcast
Date:
Thursday, May 9, 2019
Time: 2:00 p.m. Pacific Time (5:00 p.m.
Eastern Time)
U.S. Dial-in: 1-866-548-4713
International
Dial-in: 1-323-794-2093
Conference ID: 4687416
Webcast: 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, |
December 31, |
|||||||
| 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 ended March 31, 2019 |
Three Months ended March 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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