HyreCar Announces Third Quarter 2020 Results
HyreCar Inc. (NASDAQ: HYRE) reported strong financial results for Q3 2020, achieving a revenue of $6.8 million, reflecting an 83% year-over-year increase and 21% sequential growth. The CEO highlighted this performance as validation of their business model post-COVID. Total operating expenses decreased to $4.7 million, down from $5.2 million in the prior year. Adjusted EBITDA improved to ($1.6 million) from ($3.1 million) year-over-year. The net loss narrowed to $1.8 million from $3.6 million in Q3 2019. As of September 30, cash on hand was $6.8 million.
- Q3 2020 revenue grew 83% year-over-year to $6.8 million.
- Adjusted EBITDA improved to ($1.6 million), a significant sequential improvement.
- Weekly rental numbers rebounded to pre-COVID levels, supporting revenue growth.
- Net loss of $1.8 million indicates ongoing financial challenges.
- Cash balance decreased slightly by less than $400,000 from the previous quarter.
LOS ANGELES--(BUSINESS WIRE)--HyreCar Inc. (NASDAQ: HYRE), the carsharing marketplace for ridesharing and delivery, today reported financial results and provided a corporate update for the Third Quarter ended September 30, 2020.
“HyreCar’s Third Quarter revenues grew
Third Quarter 2020 Highlights
-
Revenue was
$6.8 million , compared to$3.7 million in 2019, an increase of83% . This was up21% 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
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 September 30, 2020 totaled
Conference Call
Management will host an investor conference call at 1:30 p.m. PT (4:30 p.m. ET) on Wednesday, November 11, 2020 to discuss HyreCar’s third quarter 2020 financial results, provide a corporate update, and conclude with Q&A from participants. To participate in the call, please dial (866) 670-5260 (domestic) or (409) 217-8773 (international). The conference code is 4020768. This call is being webcast and can be accessed on the Investor Relations section of HyreCar’s website at: https://ir.hyrecar.com/.
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 |
||
6/1/20 |
6/7/20 |
19,247 |
||
6/8/20 |
6/14/20 |
19,587 |
||
6/15/20 |
6/21/20 |
19,874 |
||
6/22/20 |
6/28/20 |
20,550 |
||
6/29/20 |
7/5/20 |
21,401 |
||
7/6/20 |
7/12/20 |
21,431 |
||
7/13/20 |
7/19/20 |
21,712 |
||
7/20/20 |
7/26/20 |
21,987 |
||
7/27/20 |
8/2/20 |
21,607 |
||
8/3/20 |
8/9/20 |
21,327 |
||
08/03/20 |
08/09/20 |
21,245 |
||
08/10/20 |
08/16/20 |
20,759 |
||
08/17/20 |
08/23/20 |
20,812 |
||
08/24/20 |
08/30/20 |
20,761 |
||
08/31/20 |
09/06/20 |
20,398 |
||
09/07/20 |
09/13/20 |
20,579 |
||
09/14/20 |
09/20/20 |
21,085 |
||
09/21/20 |
09/27/20 |
21,299 |
||
09/28/20 |
10/04/20 |
21,608 |
||
10/05/20 |
10/11/20 |
21,499 |
||
10/12/20 |
10/18/20 |
21,480 |
||
10/19/20 |
10/25/20 |
21,316 |
||
10/26/20 |
11/01/20 |
21,259 |
||
About HyreCar
HyreCar Inc. (NASDAQ: HYRE) is a nationwide leader operating a carsharing marketplace for ridesharing and food and package delivery in all 50 states and the District of Columbia via its proprietary technology platform. The Company has established a leading presence in Transportation as a Service (TaaS) 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 TaaS. 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.
Non-GAAP Financial Information
To supplement HYRE’s financial information presented in accordance with generally accepted accounting principles in the United States of America (“GAAP”), HYRE presents certain financial measures that are not prepared in accordance with GAAP, specifically adjusted EPS. These non-GAAP financial measures, which are defined below, should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. These non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similarly-titled measures presented by other companies.
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 September 30, 2020 and 2019: | ||||||||||||||||
Three Months ended |
|
|
Three Months ended |
|
|
Nine Months ended |
|
|
Nine Months ended |
|||||||
September 30, |
September 30, |
September 30, |
September 30, |
|||||||||||||
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 |
) |
||||
| HYRECAR INC. | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (Unaudited) | ||||||||
September 30, |
|
|
December 31, |
|||||
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 |
||||
| HYRECAR INC. | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
Three Months ended |
|
|
Three Months ended |
|
|
Nine Months ended |
|
|
Nine Months ended |
|||||||
September 30, |
September 30, |
September 30, |
September 30, |
|||||||||||||
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 |
) |
||||
