YAYO - Earnings call transcript Q2 2021

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Operator

Good afternoon. And welcome to EVmo Second Quarter 2021 Financial Results Conference Call.

As a reminder, this conference is being recorded. And all participants are in a listen-only mode.

We will open the call for question-and-answer session following the presentation.

are Steven Chairman Saathoff. Sanchez; today Terren largest call CEO, Peizer; and the EVmo’s and Executive shareholder, On CFO, Ryan company Act prospects remind future to provisions under purposes would various Securities Harbor The about Litigation Private remarks Reform of everyone Safe expectations, XXXX. forward-looking constitute that and the statements of for plans like in to cautions the including may cause that that and risks uncertainties indicated, the with these EVmo filings those actual company’s forward-looking differ results SEC. to risks from statements described are subject materially their Any of forward-looking or intend events forward-looking statements EVmo XX, only made these on this reflect not conference today’s XXXX circumstances call that speak to does August of to as update occur any date, after Tuesday, statements and today. available at EVmo’s be A on the replay www.evmo.com. of website conference the call like turn Executive opening comments. over to I’d largest Terren that, call to Peizer EVmo’s shareholder, the for and Chairman With Mr. Please go ahead, Peizer.

Terren Peizer

And going Chief phone Chief I'm and Thank a few you, call. quarter course Executive operator. And remarks. we'll And second Officer. welcome to or Sanchez, Ryan, our give our of to Steven to then turn just Financial Officer, everyone opening over the

raised. we're right The in the And this now. obviously year. we've believe if that can revenue I'd average, without press is tell by million, morning, obviously the And over you a this was for and the And although record revenue due you today's point would say, do you up, quarter. is a I grew the did point to up. like dollars important round a $X.X release to a quarter. We roughly significantly capital million As it our month. in key quick effect last trending over get

tell million margin down did at you, we $$XX EBITDA. can debt But and we be at you, million for capital, if revenue, which raise. will at issue the and remind $X.X roughly you about when $XX of initially million debt other to million financing, of $X.X debt the we And $XX both the we do point. of equity of we take $XX the of we'll down into some margin an countenance and took million we probably Just million as and also assured translates equity

example that'll was more. do That revenue million us would SEC. equity, run-rate cleared which and So gets just $XX the $XX $XX EBITDA. raise total an an We raised give million for $XX of by roughly of we S-X $XX $XXX a us million, million as that file be If of million to example. have equity, million we up of

our and the reason, think we going gross much over Ryan, For have I'm I'll With this. and if with And company questions and come we And much revenue some it's will even growth. the the stock We scale, greater more end we to model at better. base referenced XX% revenue that, scale in We another know, to Steven? Steven EBITDA any and have may company sort you as price doesn't there's other today not space, of not margin. comparables. that that reflect our best our of why? like sure public demonstrated efficiently a I'm it or there closing and greater turn on comment, a at and faster we

Steven Sanchez

quarter excited We're time you our to joining second for financial Thank Thank call. results to to you, report another yet of record on call. in afternoon and Terren. And participate good the revenue. the us quarter everyone taking

and our of the levels, business Second growing quarter economy for services revenue strength demonstrating continues. the model our rapidly demand of exceeded as the the pre-COVID-XX reopening

deployed. financing the effect capital our the debt and of Importantly, the quarter’s revenue doesn't reflect July

call that business to into provide our an model a take on familiar to less our back step quarter, the go second overview are details the we with like of Before further to related for story. I'd those

developed all delivery another service should in transition as vanguard which in vehicles the a sharing us XXXX, in vehicle to and electric drivers will of we era have in has space, we use. only not delivery have our not necessary believe to continue with is us Further, commercial provide the a and what we driver qualified vehicles, which ride standpoint. new gig we transportation, the diversity. the model further but We we're believe gig themselves also In into form distinguish that a industry of presence provided entered early business innovative with technology an from we to the this operate, our competitive

failing drivers Uber, the past industries by has delivery cutting-edge delivery rideshare has us growth businesses. the are for DoorDash to by drivers fact personal and demand interest QX Uber’s from call, vehicle expertise, and and to not at at that services certain technology for any ride away that produced Postmates onerous validation vehicles rate this four For demand vehicles the like room XX,XXX According on still Eats from these to more in gig to gig due drivers commercial significantly are our drawn for service from gig as by to years with to month vehicles for transportation further many a services. delivery delivery its or exceed current of sharing, services more rideshare are imposed we has service. estimate increase pace provide grown and compounded delivery over Lyft, to perform qualification keep for We workers are sharing to ride meet less by with drivers. and to demand companies these a road and the XXX% The operators enable fail for businesses rental their increasing than or of these are annual growing believe hiring if Uber delivery growing division Grubhub. gig qualification directly drivers peer-to-peer an recent time. and requirements operated frictionless drivers would that deterred their ride opportunity the operated sharing employment by The drivers than turned businesses vehicles these of on those rent gig the ride other return. drivers. and run. this experience address intake has And meet We from of the vehicles in prospective by requirements potential applying acquisitions enabling imposed And sharing We plenty that the given

build largest the hailing and ride pricing EV the fully are of OEMs. ship growth best-in-class leveraged receiving in fleet These and the category from a We in at with EV attractive multiple EVs U.S. to lease have plans platforms favorable terms, our commitments partners delivery two aligned with OEMs

of agreements at option buyback vehicles value term. And attractive residual increasing acquisition have in pushed prices gain, the to delivery strong able vaccination demand rideshare rates, COVID quarterly business tailwinds to been our below our demand initial We restrictions, sell vehicles company MSRP. financing combined of higher at the and to and the the to loosening attractive second given a revenue consistently history. the quarter, relative purchase the end In have stable highest the

strategy, the record measures, and in included our we logistics committing Our revenue of built space. the last mile a efficiency increasing foundation lines of an result entering the is fleet, increasing size XXXX, EV operational to which strong growth credit our and

comparables. before to the making over Gross and profitable costs. QX, profit account public maintain significantly up gross better into XXXX, rental We was corporate continue than onetime margins, strong taking operations XXX.X% company's core any company overhead domestic

mix us to units With exponential endeavor rates to our quarter the comparables gross Capital as our fleet commitment we the a the are an over reflect greater improve of deploy before return associated that EV potential important continue financing, the to performance capital add debt better second enables our Even and to Financing does to vehicles expand our received we EVs July. of platform company. expect increase financing and to not that XXXX our remains are further the objective model. at to transition EV margins will to be We scale. effect an growth internal note our in of our period. XX%. a and immediately, will It's and our fuel EV Ultimately, scale, more margins gross throughout public we to fleet that are than XXX company profitability. substantially to XX-month fully including addition XX XX,XXX car

our Our capital company an expected equity debt margin, is At CFO now forward. $XX annual of call moving mix. company estimation approximately capital said, to anticipates a growth strategy, to margin. XX% our rough detailed This EBITDA approximately XX%-XX% EBITDA over capital more $XX I'll revenue vehicles at and and the results. million with equity capital scaling margin. X,XXX which the and every a to formation Ryan? for $XX should car van the million Saathoff The should the revenue or translate financial of Ryan includes translate to purchase to enable hand million raised debt in into review Terren for to every exponential in raise

Ryan Saathoff

the Thank million Revenue related $X.X was an vehicle increase second of in XXXX everyone. quarter quarter increase million and in $X.X in the Revenue by size. of due expense the company's the to of expense in higher was in in revenues a up increase was from $X.X the of fleet. insurance XX.X% second second depreciation quarter of company's from growth million second The rental Cost good of fleet you, up increased quarter an the Total $X.X Steve record afternoon primarily million, quarter XXXX. to XXXX. second the XXXX driven in and to

administrative XXXX. summary quarter quarter decrease a the to revenue the second financial operating salaries and of $X.X XXXX by -- its of expenses in QX, stock and second and XX.X% in used in activities QX, from G&A of remarks. increase by as was expenses percentage quarter the utilization. by driven second Selling operating combination vehicles. is utilization decrease $XXX,XXX $XX,XXX in of just would of in million in and liabilities back The final discussed. to expended now up operating decrease over of $X.X a the was That cash the the concludes is of driven were $XX,XXX marketing total has decreased and the X the primarily our net activities QX, from up to fleet option second to high Steve XXXX. turn to and were which The reduction in expense of were changes XX.X%, advertising $XXX,XXX expenses. months General items. second due quarter $XXX,XXX company of in compared expenses maintained principally first cost of the fees, operating results. XXXX, professional compared in quarter the of XXXX, for XXXX. down non-cash XXXX, XXXX, in Net and from to quarter a The decrease Total to a rate I driven the quarter XX.X% an million higher assets the cash second due for As call higher like from factors the second revenue XX.X

Steven Sanchez

Thank you, Ryan. it. Appreciate

are we to contribution EVs vans. anticipate the As deploying from strong XXXX progresses, capital and revenue purchase cargo we new

to just at friendly process. in discussions in than initiatives. buy in the We formation anticipate July was XX and on forge continuous debt strategic multiple and with than maintenance through high to and drivers of new platform Our environmentally utilization on our environmental and program, the more We're our scale every with the economic user existing to day maintain rental a currently cars to drive margin. XXXX our its excellence revenue partners and of lending $XXX car more relationships XX% EVmo growth We're anticipated environment, strategy. we and has financing We an in XXX service ride, every Approximately key mission committed have EBITDA excellent EVmo vans platform. days. vehicles. actively capital provide currently million our meet beginning XX% are rent

be Our in like believe thank call on now EVmo. open to time call And EVmo. for that for our thank everyone should the and would and questions. shareholders and XXXX are particularly their bold for continued I today aggressive. We interest want the up plans years XXXX any and we to support, their breakout for

Operator

you session. are questions this we participation. be time, no for conducting conference. this have you your there At day. gentlemen, you. your disconnect further [Operator a may And Instructions] And Thank This concludes Ladies question-and-answer Thank and will a lines. today's time. wonderful at

EVmo (YAYO) 18 Aug 212021 Q2 Earnings call transcript