LOS ANGELES--(BUSINESS WIRE)--HyreCar Inc. (NASDAQ: HYRE), the carsharing marketplace for ridesharing, today reported financial results and provided a corporate update for the fourth quarter and full year ended December 31, 2018.
Financial Summary:
|
Three Months Ended
December 31, |
Year-over- Year % Change |
|||||||
| 2018 | 2017 | |||||||
| Net Revenues | $3.1 million | $1.3 million | 138% | |||||
| Gross Profit | $1.7 million | $0.1 million | 1600% | |||||
| Gross Profit Margin | 54.6% | 6.8% | 703% | |||||
| Net Loss | $(2.6) million | $(1.3) million | (100%) | |||||
| Earnings per Share (Fully-Diluted) | $(0.31) | $(0.28) | (11%) | |||||
|
12 Months Ended
December 31, |
Year-over- Year % Change |
|||||||
| 2018 | 2017 | |||||||
| Net Revenues | $9.8 million | $3.2 million | 203% | |||||
| Gross Profit | $4.6 million | $0.3 million | 1,392% | |||||
| Gross Profit Margin | 47.5% | 9.7% | 392% | |||||
| Net Loss | $(11.2) million | $(4.3) million | (163%) | |||||
| Earnings per Share (Fully-Diluted) | $(1.31) | $(0.93) | (41%) | |||||
Recent Operational Highlights
- Grew Rental Days to 393,000 Days in 2018, a 121% increase when compared to 178,000 in 2017. HyreCar is currently operating at an annualized rate of over 550,000 Days for 2019.
- Expanded the HyreCar platform to all 50 states to offer vehicle solutions for Uber and Lyft drivers, providing revenue generation opportunities for vehicle owners nationwide.
- Appointed Brian Allan, an automotive industry veteran and thought leader with over 40 years of industry experience, to lead OEM and dealer-based shared mobility initiatives.
Management Commentary
“Our record revenue and gross profit for the fourth quarter and full year 2018 resulted from the aggressive adoption of our proprietary ridesharing solution,” said Joe Furnari, Chief Executive Officer of HyreCar. “We continue to see strong awareness as evidenced by rental days which grew 121% to 393,000 days in 2018 and has now reached an annualized rate of 550,000 in the first two months of 2019, a metric we expect to grow rapidly with the continual onboarding of new institutional vehicle supply to meet driver demand for participation in the dynamic ridesharing economy.”
“Growth is directly correlated to offering a complete solution for automotive dealers to earn incremental revenue streams on otherwise idle inventory. In our third quarter call, we noted that we had approximately 25 dealerships representing an estimated 250 cars on our platform–a number we expected to double in the fourth quarter of 2018. Today, I am proud to report that we have exceeded these expectations with over 100 dealers listing more than 1,200 cars on our platform. We are undoubtedly reaching a key inflection point in the history of our company and the ridesharing industry as a whole, and I look forward to creating long-term value for our shareholders as we continue to execute upon our growth plans,” concluded Furnari.
Fourth Quarter and Full Year 2018 Financial Results
Total revenue in the fourth quarter of 2018 increased 138% to a record $3.1 million, compared to $1.3 million in the fourth quarter of 2017. Sequentially, this represents an increase of 15% when compared to revenue of $2.7 million in the third quarter of 2018. Revenue increased 203% to a record $9.8 million in the full year 2018 when compared to $3.2 million in 2017. The revenue increase was driven primarily by increased vehicle supply on the Company’s proprietary platform.
Gross profit in the fourth quarter of 2018 increased to $1.7 million, or 54.6% of total revenues, compared to $0.1 million, or 6.8% of total revenues, in the same year-ago quarter. Gross profit in the full year 2018 increased significantly to $4.6 million, or 47.5% of total revenues, compared to $0.3 million, or 9.7% of total revenues, in 2017. Margin expansion was driven by a significant reduction in insurance premiums, as well as increases in referral and affiliate income
Total operating expenses, consisting of research and development, sales and marketing and general and administrative expenses, were $4.2 million in the fourth quarter of 2018, compared to $1.2 million in the same year-ago quarter. Total operating expenses for the full year 2018 were $13.7 million, compared to $4.2 million in 2017. The increase in operating expenses was primarily due to larger General & Administrative and Sales & Marketing expenses to support significantly higher levels of business.
Net loss in the fourth quarter of 2018 totaled $2.6 million, or $(0.31) per share, compared to a net loss of $1.3 million, or $(0.28) per share, in the same year-ago quarter. Net loss for the full year 2018 was ($11.2) million, or ($1.31) per share, compared to a net loss of ($4.3) million, or ($0.93) per share, in 2017. The increase in net loss was primarily due to the company scaling expense levels to support dramatically higher revenues.
Cash totaled $6.8 million at December 31, 2018, compared to $8.7 million at September 30, 2018.
“The company’s continued growth has allowed us to turn the corner by reducing our quarterly cash burn from over $3,000,000 to approximately $500,000 in just two quarters. As of today, we have more than $6.0 million in marketable securities alone, which is sufficient to support our operations for the foreseeable future,” commented Scott Brogi, HyreCar Chief Financial Officer.
First Quarter 2019 Revenue Guidance
For the first quarter ending March 31, 2019, HyreCar expects revenues to range between $3.4 million and $3.7 million, and gross profit to range between $2.0 million and $2.2 million.
Conference Call
Management will host an investor conference call at 2:00 p.m. PDT (5:00 pm EDT) on Thursday, March 28, 2019 to discuss HyreCar’s fourth quarter and full year 2018 financial results, provide a corporate update, and conclude with Q&A from participants. To participate, please use the following information:
Fourth Quarter and Full Year 2018 Conference Call and Webcast
Date: Thursday, March 28, 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: 2646739
Webcast: http://public.viavid.com/index.php?id=133614
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 April 4, 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 2646739.
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 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 Prospectus, dated June 26, 2018, 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 prepares and publicly releases quarterly unaudited financial statements prepared in accordance with GAAP.
| HYRECAR INC. | ||||||||
| BALANCE SHEETS | ||||||||
|
December 31, 2018 |
December 31, 2017 |
|||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalent | $ | 6,764,870 | $ | 213,944 | ||||
| Accounts receivable | 161,177 | 41,000 | ||||||
| Deferred offering costs | - | 135,608 | ||||||
| Deferred expenses | 20,927 | 35,153 | ||||||
| Other current assets | 128,337 | 118,020 | ||||||
| Total current assets | 7,075,311 | 543,725 | ||||||
| Property and equipment, net | 10,613 | - | ||||||
| Intangible assets, net | 221,623 | - | ||||||
| Other assets | 90,000 | 90,000 | ||||||
| Total assets | $ | 7,397,547 | $ | 633,725 | ||||
| Liabilities and Stockholders’ Equity (Deficit) | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 856,925 | $ | 1,355,064 | ||||
| Accrued liabilities | 775,857 | 119,226 | ||||||
| Insurance reserve | 348,442 | - | ||||||
| Deferred revenue | 53,764 | 47,718 | ||||||
| Related party advances | 9,629 | 9,629 | ||||||
| Note payable, net of discount | - | 46,368 | ||||||
| Notes payable - related party, net of discount | - | 278,607 | ||||||
| Settlement payable | - | 24,444 | ||||||
| Total current liabilities | 2,044,617 | 1,881,056 | ||||||
| Total liabilities | 2,044,617 | 1,881,056 | ||||||
|
Commitments and contingencies |
- | - | ||||||
| Stockholders’ equity (deficit): | ||||||||
| Preferred stock, 15,000,000 shares authorized, par value $0.00001, 0 and 2,429,638 issued and outstanding as of December 31, 2018 and 2017, respectively | - | 1,591,886 | ||||||
| Common stock, 50,000,000 shares authorized, par value $0.00001, 11,708,041 and 5,252,953 issued and outstanding as of December 31, 2018 and 2017, respectively | 117 | 52 | ||||||
| Additional paid-in capital | 21,857,017 | 2,553,672 | ||||||
| Subscription receivable - related party | (7,447 | ) | (140,087 | ) | ||||
| Accumulated deficit | (16,496,757 | ) | (5,252,854 | ) | ||||
| Total stockholders’ equity (deficit) | 5,352,930 | (1,247,331 | ) | |||||
| Total liabilities and stockholders’ equity (deficit) | $ | 7,397,547 | $ | 633,725 | ||||
| HYRECAR INC. | ||||||||
| STATEMENTS OF OPERATIONS | ||||||||
|
Year ended |
Year ended |
|||||||
| Revenues | 9,777,079 | $ | 3,223,874 | |||||
| Cost of revenues | 5,132,079 | 2,912,548 | ||||||
| Gross profit | 4,645,000 | 311,326 | ||||||
| Operating Expenses: | ||||||||
| General and administrative | 7,600,735 | 1,819,588 | ||||||
| Sales and marketing | 4,788,201 | 1,871,649 | ||||||
| Research and development | 1,414,727 | 687,039 | ||||||
| Total operating expenses | 13,803,663 | 4,378,276 | ||||||
| Operating loss | (9,158,663 | ) | (4,066,950 | ) | ||||
| Other (income) expense : | ||||||||
| Interest expense | 2,040,311 | 202,454 | ||||||
| Other (income) expense | 44,129 | 1,528 | ||||||
| Total other (income) expense | 2,084,440 | 203,982 | ||||||
| Loss before provision for income taxes | (11,243,103 | ) | (4,270,932 | ) | ||||
| Provision for income taxes | 800 | 800 | ||||||
| Net loss | $ | (11,243,903 | ) | $ | (4,271,732 | ) | ||
| Weighted average shares outstanding - basic and diluted | 8,557,796 | 4,590,478 | ||||||
| Weighted average net loss per share - basic and diluted | $ | (1.31 | ) | $ | (0.93 | ) | ||