HyreCar Announces Third Quarter 2020 Results
Revenue increased 83% to
“HyreCar’s Third Quarter revenues grew 83%, year-over-year, and up 21% sequentially, to
Third Quarter 2020 Highlights
-
Revenue was
$6.8 million , compared to$3.7 million in 2019, an increase of 83%. This was up 21% sequentially from$5.6 million in the second quarter of 2020. -
Adjusted EBITDA of (
$1.6 million ) or ($0.09 ) per share, compared to ($3.1 million ) or ($0.20 ) per share in the Third Quarter of 2019 and a sequential improvement of($0.10) million compared to ($1.7 million ) or ($0.10 ) per share in the second quarter of 2020. - Rental days grew to over 273,000 in Q3 2020 from 231,000 in Q2 2020.
- 60% of HyreCar Drivers rely on Delivery Services as the main source of income.
Third Quarter 2020 Financial Discussion
Total revenue in the Third Quarter of 2020 increased 83%, to a record
Total operating expenses, consisting of sales and marketing, general and administrative, and research and development expenses, were
Net loss in the Third Quarter of 2020 totaled
Adjusted EBITDA for the Third Quarter was (
Cash on the balance sheet at
Conference Call
Management will host an investor conference call at
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.
|
Quarterly Rental Days |
|
|
Q4 2018 |
122,731 |
|
Q1 2019 |
138,491 |
|
Q2 2019 |
139,474 |
|
Q3 2019 |
145,691 |
|
Q4 2019 |
197,070 |
|
Q1 2020 |
229,299 |
|
Q2 2020 |
230,889 |
|
Q3 2020 |
273,356 |
|
Weekly Rental Days Update |
||||
|
|
||||
|
Begin Date |
End Date |
Weekly Rental Days |
||
|
|
|
19,247 |
||
|
|
|
19,587 |
||
|
|
|
19,874 |
||
|
|
|
20,550 |
||
|
|
|
21,401 |
||
|
|
|
21,431 |
||
|
|
|
21,712 |
||
|
|
|
21,987 |
||
|
|
|
21,607 |
||
|
|
|
21,327 |
||
|
|
|
21,245 |
||
|
|
|
20,759 |
||
|
|
|
20,812 |
||
|
|
|
20,761 |
||
|
|
|
20,398 |
||
|
|
|
20,579 |
||
|
|
|
21,085 |
||
|
|
|
21,299 |
||
|
|
|
21,608 |
||
|
|
|
21,499 |
||
|
|
|
21,480 |
||
|
|
|
21,316 |
||
|
|
|
21,259 |
||
About
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.
Reconciliation of Non-GAAP Financial Measures
We use Adjusted EBITDA in conjunction with GAAP financial measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies, and to communicate with our board of directors concerning our financial performance. Our definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Furthermore, these measures have certain limitations in that they do not include the impact of certain expenses that are reflected in our consolidated statements of operations that are necessary to run our business. Thus, our Adjusted EBITDA should be considered in addition to, not as substitutes for, or in isolation from, measures prepared in accordance with GAAP.
We compensate for these limitations by providing a reconciliation of Adjusted EBITDA to the related GAAP financial measures, revenue and net loss, respectively. We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure and to view Adjusted EBITDA in conjunction with their respective related GAAP financial measures.
| The following table provides a reconciliation of net loss to Adjusted EBITDA for the three and nine months ended |
||||||||||||||||
|
Three Months ended |
|
|
Three Months ended |
|
|
Nine Months ended |
|
|
Nine Months ended |
|||||||
|
|
|
|
|
|||||||||||||
|
2020 |
2019 |
2020 |
2019 |
|||||||||||||
| Net loss | $ |
(1,839,617 |
) |
$ |
(3,622,665 |
) |
$ |
(9,751,308 |
) |
$ |
(7,368,952 |
) |
||||
| Adjusted to exclude the following: | ||||||||||||||||
| Other expense (income), net |
72,215 |
(60,575 |
) |
36,093 |
(121,717 |
) |
||||||||||
| Provision for income taxes |
— |
— |
800 |
— |
||||||||||||
| Depreciation and amortization |
19,251 |
19,157 |
55,319 |
51,243 |
||||||||||||
| Stock-based compensation expense |
144,101 |
574,633 |
2,610,415 |
1,485,181 |
||||||||||||
| Prior expenses settled in issuance of stocks |
— |
— |
192,871 |
— |
||||||||||||
| Adjusted EBITDA | $ |
(1,604,050 |
) |
$ |
(3,089,450 |
) |
$ |
(6,855,810 |
) |
$ |
(5,954,245 |
) |
||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (Unaudited) | ||||||||
|
|
|
|
|
|||||
|
2020 |
2019 |
|||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ |
6,788,335 |
$ |
10,657,140 |
||||
| Accounts receivable |
72,454 |
84,680 |
||||||
| Insurance deposit |
749,454 |
— |
||||||
| Other current assets |
430,579 |
379,425 |
||||||
| Total current assets |
8,040,822 |
11,121,245 |
||||||
| Property and equipment, net |
9,225 |
9,138 |
||||||
| Intangible assets, net |
98,499 |
153,905 |
||||||
| Other assets |
95,000 |
95,000 |
||||||
| Total assets | $ |
8,243,546 |
$ |
11,379,288 |
||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ |
2,465,098 |
$ |
2,232,629 |
||||
| Accrued liabilities |
1,970,508 |
903,912 |
||||||
| Insurance reserve |
1,521,115 |
1,332,892 |
||||||
| Note payable - current portion |
1,219,895 |
— |
||||||
| Deferred revenue |
54,244 |
64,808 |
||||||
| Related party advances |
9,629 |
9,629 |
||||||
| Total current liabilities |
7,240,489 |
4,543,870 |
||||||
| Note payable, net of current portion |
779,280 |
— |
||||||
| Total liabilities |
8,019,769 |
4,543,870 |
||||||
| Commitments and contingencies (Note 3) | ||||||||
| Stockholders’ equity: | ||||||||
| Preferred stock, 15,000,000 shares authorized, par value |
— |
— |
||||||
| Common stock, 50,000,000 shares authorized, par value |
176 |
164 |
||||||
| Additional paid-in capital |
38,997,490 |
35,857,835 |
||||||
| Subscription receivable - related party |
(7,447 |
) |
(7,447 |
) |
||||
| Accumulated deficit |
(38,766,442 |
) |
(29,015,134 |
) |
||||
| Total stockholders’ equity |
223,777 |
6,835,418 |
||||||
| Total liabilities and stockholders’ equity | $ |
8,243,546 |
$ |
11,379,288 |
||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
|
Three Months ended |
|
|
Three Months ended |
|
|
Nine Months ended |
|
|
Nine Months ended |
|||||||
|
|
|
|
|
|||||||||||||
|
2020 |
2019 |
2020 |
2019 |
|||||||||||||
| Revenues | $ |
6,813,825 |
$ |
3,710,272 |
$ |
18,177,626 |
$ |
11,022,089 |
||||||||
| Cost of revenues |
3,917,365 |
2,219,275 |
10,568,392 |
6,344,516 |
||||||||||||
| Gross profit |
2,896,460 |
1,490,997 |
7,609,234 |
4,677,573 |
||||||||||||
| Operating Expenses: | ||||||||||||||||
| General and administrative |
2,079,238 |
2,342,103 |
9,218,475 |
5,849,828 |
||||||||||||
| Sales and marketing |
1,824,938 |
2,271,892 |
5,986,209 |
4,709,519 |
||||||||||||
| Research and development |
759,686 |
560,242 |
2,118,965 |
1,608,895 |
||||||||||||
| Total operating expenses |
4,663,862 |
5,174,237 |
17,323,649 |
12,168,242 |
||||||||||||
| Operating loss |
(1,767,402 |
) |
(3,683,240 |
) |
(9,714,415 |
) |
(7,490,669 |
) |
||||||||
| Other (income) expense | ||||||||||||||||
| Interest expense |
22,787 |
639 |
34,116 |
2,500 |
||||||||||||
| Other (income) expense |
49,428 |
(61,214 |
) |
1,977 |
(124,217 |
) |
||||||||||
| Total other (income) expense |
72,215 |
(60,575 |
) |
36,093 |
(121,717 |
) |
||||||||||
| Loss before provision for income taxes |
(1,839,617 |
) |
(3,622,665 |
) |
(9,750,508 |
) |
(7,368,952 |
) |
||||||||
| Provision for income taxes |
— |
— |
800 |
— |
||||||||||||
| Net loss | $ |
(1,839,617 |
) |
$ |
(3,622,665 |
) |
$ |
(9,751,308 |
) |
$ |
(7,368,952 |
) |
||||
| Weighted average shares outstanding - basic and diluted |
17,711,132 |
15,323,776 |
17,108,075 |
13,140,280 |
||||||||||||
| Weighted average net loss per share - basic and diluted | $ |
(0.10 |
) |
$ |
(0.24 |
) |
$ |
(0.57 |
) |
$ |
(0.56 |
) |
||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20201111005863/en/
Chief Financial Officer
Scott@HyreCar.com
Investor Relations
415-309-0230
J.Evans@HyreCar.com
Source: