HyreCar Announces Second Quarter 2022 Financial Results
Second Quarter 2022 Financial Highlights
- Revenue was
$10.5 million , compared to$9.1 million during the same period of 2021, an increase of approximately 16% from the same quarter last year, achieving the strongest revenue quarter in the company’s history - Gross margin hit a twelve month high of 35% in Q2 of 2022, improving by over 11 points compared to Q2 of 2021 normalized gross margin of 24%
- Net loss was
($4.4) million and earnings per share of ($0.20 ), compared to($9.3) million and ($0.45 ) per share in the same period last year - Adjusted EBITDA of
($3.4) million down from($4.1) million in Q1 of 2022, and($7.1) million in Q2 of 2021 - Cash, Cash Equivalents and Restricted Cash were approximately
$6.7 million as ofJune 30, 2022
Additional Second Quarter 2022 Highlights and Recent Developments
- Driver demand continued to increase compared to the first quarter, with new driver signups increasing 10% and a 28% increase in first driver rentals
- Cars rented for the first time increased 2% while total transacting cars increased by 5% quarter-over-quarter on a sequential basis
- The Company welcomed
Greg Tatem as its new Chief Technology Officer to lead HyreCar’s Product Management and Engineering teams
“HyreCar generated record revenue in the second quarter of 2022, with the highest gross margin in the trailing twelve months despite a challenging macroeconomic environment,” said
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 2022 Financial Discussion
Total revenue increased approximately 10% quarter-over-quarter to
Gross margin hit a 12-month high in the second quarter, reaching 35% versus 31% in the first quarter, reflecting an improvement of 11 points over normalized Q2 of 2021 gross margin of 24%. Margin improvements were driven by cost control, better processes, and appropriate risk pricing.
Total operating expenses, consisting of general and administrative, sales and marketing, and research and development expenses, totaled
Adjusted EBITDA (a non-GAAP financial measure as described above) totaled
Cash, Cash Equivalents and Restricted Cash totaled
Conference Call
Management will host an investor conference call at
The conference call will also be available through a live webcast that can be accessed at https://event.choruscall.com/mediaframe/webcast.html?webcastid=w1p26nww. The webcast replay will be available for three months and can be accessed through the above links.
About HyreCar
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.
Non-GAAP Financial Information
To supplement HYRE’s financial information presented in accordance with generally accepted accounting principles in
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 years ended
| Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | |||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Net loss | $ | (4,379,007 | ) | $ | (9,335,160 | ) | $ | (9,706,490 | ) | $ | (16,541,695 | ) | ||||
| Adjusted to exclude the following: | ||||||||||||||||
| Other expense (income), net | (6,671 | ) | (169 | ) | (9,833 | ) | 254 | |||||||||
| Provision for income taxes | 800 | 800 | 800 | 800 | ||||||||||||
| Depreciation and amortization | 46,236 | 19,269 | 53,003 | 38,539 | ||||||||||||
| Stock-based compensation expense | 942,600 | 2,193,869 | 2,121,888 | 5,961,543 | ||||||||||||
| Adjusted EBITDA | $ | (3,396,042 | ) | $ | (7,121,391 | ) | $ | (7,540,632 | ) | $ | (10,540,559 | ) | ||||
CONSOLIDATED BALANCE SHEETS
(Unaudited)
| 2022 | 2021 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 3,573,595 | $ | 11,499,136 | ||||
| Restricted cash | 3,111,107 | 3,248,271 | ||||||
| Accounts receivable | 418,771 | 162,586 | ||||||
| Insurance and security deposits | 47,897 | 95,000 | ||||||
| Other current assets | 532,014 | 1,061,520 | ||||||
| Total current assets | 7,683,384 | 16,066,513 | ||||||
| Property and equipment, net | 4,044 | 5,265 | ||||||
| Intangible assets, net | 546,152 | 372,592 | ||||||
| Right of use assets | 864,413 | — | ||||||
| Total assets | $ | 9,097,993 | $ | 16,444,370 | ||||
| Liabilities and Stockholders' Equity (Deficit) | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 4,350,234 | $ | 5,567,233 | ||||
| Accrued liabilities | 3,536,145 | 2,877,438 | ||||||
| Insurance reserve | 2,270,553 | 2,330,190 | ||||||
| Right of use liabilities (current) | 245,736 | — | ||||||
| Deferred revenue | 52,305 | 52,192 | ||||||
| Total current liabilities | 10,454,973 | 10,827,053 | ||||||
| Right of use liabilities | 635,305 | — | ||||||
| Total liabilities | 11,090,278 | 10,827,053 | ||||||
| Commitments and contingencies | — | — | ||||||
| Stockholders' equity (deficit): | ||||||||
| Preferred stock, 15,000,000 shares authorized, par value |
— | — | ||||||
| Common stock, 50,000,000 shares authorized, par value |
218 | 216 | ||||||
| Additional paid-in capital | 77,903,739 | 75,806,853 | ||||||
| Accumulated deficit | (79,896,242 | ) | (70,189,752 | ) | ||||
| Total stockholders' equity (deficit) | (1,992,285 | ) | 5,617,317 | |||||
| Total liabilities and stockholders' equity (deficit) | $ | 9,097,993 | $ | 16,444,370 | ||||
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | |||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Net Revenue | $ | 10,508,180 | $ | 9,057,866 | $ | 20,058,772 | $ | 16,506,266 | ||||||||
| Cost of revenue | 6,795,721 | 8,253,164 | 13,399,342 | 12,969,314 | ||||||||||||
| Gross profit | 3,712,459 | 804,702 | 6,659,430 | 3,536,952 | ||||||||||||
| Operating Expenses: | ||||||||||||||||
| General and administrative | 4,885,825 | 6,090,899 | 9,432,175 | 11,795,352 | ||||||||||||
| Sales and marketing | 1,843,751 | 2,875,084 | 4,071,207 | 5,582,275 | ||||||||||||
| Research and development | 1,367,761 | 1,173,248 | 2,871,571 | 2,699,966 | ||||||||||||
| Total operating expenses | 8,097,337 | 10,139,231 | 16,374,953 | 20,077,593 | ||||||||||||
| Operating loss | (4,384,878 | ) | (9,334,529 | ) | (9,715,523 | ) | (16,540,641 | ) | ||||||||
| Other (income) expense | ||||||||||||||||
| Interest expense | — | 3,893 | 288 | 5,799 | ||||||||||||
| Other income | (6,671 | ) | (4,062 | ) | (10,121 | ) | (5,545 | ) | ||||||||
| Total other (income) expense | (6,671 | ) | (169 | ) | (9,833 | ) | 254 | |||||||||
| Loss before provision for income taxes | (4,378,207 | ) | (9,334,360 | ) | (9,705,690 | ) | (16,540,895 | ) | ||||||||
| Provision for income taxes | 800 | 800 | 800 | 800 | ||||||||||||
| Net loss | $ | (4,379,007 | ) | $ | (9,335,160 | ) | $ | (9,706,490 | ) | $ | (16,541,695 | ) | ||||
| Weighted average shares outstanding - basic and diluted | 21,792,707 | 20,521,674 | 21,770,156 | 19,881,584 | ||||||||||||
| Weighted average net loss per share - basic and diluted | $ | (0.20 | ) | $ | (0.45 | ) | $ | (0.45 | ) | $ | (0.83 | ) | ||||
Investors:
Scott Arnolds
CORE IR
scotta@coreir.com
Media:
Skyya PR for
allie@skyya.com
Source: HYRECAR