HYRE - Earnings call transcript Q4 2019

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the HyreCar’s Fourth Quarter and Year-End 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions]

to CEO. conference like today, your now Furnari, Joe would turn to the speaker I ahead, go Please sir.

Joe Furnari

and Conference operator. I'd all Quarter like you, to Year Thank And welcome to at our Call. this time, Full XXXX Fourth

We We home the as and our being life thank all that the experiencing of are today. of safe we on COVID-XX. you and unprecedented we all pandemic in work times global trust confront you call are for

through platform taken drivers full-time measures the the in companies to to in At for market a job this has changing prove HyreCar, But way employees our participate in test environment the to our value help this we the to our these protect been have uncertainty industry. business in times rapidly Navigating our order manage and a people will themselves new of and transportation and recently. as environment. position model

transportation We may this to crisis contribute even acceleration see change. of the

update We the to the holds. on some business future what we have and with you the insights given provide think and of state

I'd laws to get statements started, be the forward-looking remind federal call, we like during Inc. we take will making to this within of meaning you regarding Before HyreCar that securities opportunity this

earnings, to, events but include, predictions future are relating or that statements strategies, Forward-looking Company's conditions. not statements activities, beliefs, statements the its to expectations, limited intentions, express or other any

risk included the those during materially projections or in described business and our about differ These with projected risks to in U.S. statements in Company Company's to and could the and files subject and implied results These on on that that cause Securities this the by known estimates based uncertainties management. Exchange assumptions are call. statements actual are those expectations, documents In current part particular, factors based Commission. made our unknown from

by be relating risks such and control. to addition, the beyond affected Company's statements uncertainties could In factors

of All events. law. update of assumptions on today, we we forward-looking them obligation forward-looking rely based and make statements on applicable as future should required as this our not no call beliefs by statements undertake You on predictions as are that except and to

Our be measures. or found GAAP Relations also furnished XX-K will supplemental addition isolation be that which These be with with as financial be GAAP today and in earnings the our our in on a filed release should in and reconciliation portion considered to found our Form include for, will will SEC of results. results not will Investor the website. of from discussions today non-GAAP substitute to A will non-GAAP measures materials, and our non-GAAP be

first, our who top haven’t to keep our driver and cases had that in confirmed of So everyone or health population. our staff we and uses the priority thankfully of been in implemented work our from our We’ve COVID-XX any are our safety safe of platform. workforce we home and staff has aware

we are At And taking stronger to to are know important is come the crisis. well the we business this sure crisis positioned same most thing our that time, are of out and make to than action solidify set to before. weather we

ample have We liquidity.

highly a cost variable have We structure.

people We crisis package to this that levers and ability have burn. our drivers delivery platform on more an pull transporting food the to to pivot services focus agnostic reduce to allows in and versus multiple

after rebound how as studies case strong also our a is this. shock are like business There likely to

confidence. us this gives of All

In key. liquidity crisis, is any

have fortunate and cash zero all a to cash debt. are position million We very with unrestricted of strong $X currently relatively

reduced our in reduced with our neutral the cash G&A. burn. travel costs, variable ops approach include, marketing to near-term actions very taking reducing and Actions fixed little of renegotiating spend, reducing are We some expenses, insurance

company. are prefer spread across to we’d at cost the and this controlling now measures looking At headcount whole we point, reducing

weeks revenue two is relatively they first the had This XX% strongest compared that to we peak, trough. But leveled reason shifted to to ever. off delivery. strong, had March, strength where our Uber about our are Lyft, food active in XX% peak and So down from is year-over-year ride certain weeks our rentals of for messaging in have are and relative and our seeing declines that approximately package cities. One of we

over Our not have because package we on and ride three drop experienced moved ads search food the shift, a from a and search away share weeks. driver have this and keyword in a of focused keyword leads past delivery

car the their prices income, if road. started encouraging drivers to as list communicating can and on guide it possible services of well get to alternative the a have use as clean of keep making easier vehicles that drivers We find streams owners as a their to lower for

sign messaging we also added delivery has a To these sales these everyone provide up helpful the marketing thoughtful during to page landing drivers built made, services. the and encourage team communication ensure for see Automated for and been to changes to can times. we've to the banner

picking an outbound strategy that the are driver becoming up to did were because trusted are we're started not. we have agents call phones the making ones that picked customers sales our Driver companies we so up remember and sure a our advisor we when partners other will

And food the the growth portal companies hit their amount activity X.Xx announced volume. in We in for weeks. the the have we over package delivery couple their this even services in was past was Uber crisis hardest, of the seen the of seeing in switched to during and XXx and space. COVID-XX normal restaurant seeing unprecedented where team self-service Seattle volume has have delivery

grocery and hiring with be more Amazon grows Instacart it a service to will personnel that Postmates shoppers help XXX,XXX companies has rate restaurant said delivery on DoorDash, and other Monday, released on workers delivery demand. deal to XXX%. over demand greater in as new with is demand XXX,XXX is hiring signing to it that seeing and of to clients drivers This addition needing their the

early start tell to package this how in show active it’s counts. revenue. impact will will I So rental moving delivery still drivers strategy food transitioning our to day expect forward, of our to too and But

unique so. or this Our sequentially continued a new grow new renting drivers at normalized car past a although week to have month-over-month rate

predominantly the from on new DMV existing have registering cars slown sourcing dealers down platform groups as closures. from of because franchise New cars most and plating dealer are

So quarter going to XX% quarter, third fourth year. same with revenues the back we million another the compared numbers, reported XX% to increasing the $X.X from to when outstanding $X.X sequentially period last quarter from million increasing

QX XXXX. quarter drivers to XXX,XXX in added the new Rental approximately to to fourth compared unique the days third unique and quarter XX% to drivers quarter in X,XXX grew X,XXX from XXXX platform added the rose as of XXX,XXX in of the fourth in

million $X.X in million from was revenue $XX.X increasing XXXX. year XX% Full

rental expected over full approximately cars, in year-over-year XXXX. and year, and continued revenue of the see in substantial and uptick the XX% growth on throughout revenue For that sequential we XXXX. days approximately QX XXX,XXX XXX,XXX days call subsequent from activity a to said grew rentals to days that from We

I to as in to lag we at place acceptance. leveled states rules ten As has Growth saw various past have a and off from about people the quarter, put delivery said the just stay day grow signup to week work first in from rental activity switch month-to-month. home our in

by helping plenty of our normal. will importantly, to working are drivers ensure period them dealer the and delivery have for to cash switch and strengthen and productive more move drivers that for OEM Most to working commercial returns cars drivers our are using keep the have when as we country our enough safe and storm from home. now people and to to We weather this hard employed to delivery activities to we

leads these we're While obviously, listed revenue is cars major represent on and the generating the cars a future our still site. between growth, driver there asymmetry

So gap to we we between and order initiatives scale supply and our this inventory our meet continue platform. for and commercial to dealership vehicles close and demand in in investment our increase to in systems on demand people our as

OEM the is partnerships focused in progress. Our group pilots currently on accelerating

time will build relationships and to our partners. to use integrate this technology with our We continue

Our partnership Clutch is recently case in a announced point. with

and to that us Clutch We new integration will dealerships dealer provide technology marketplace. to a working have on are the services allow begun and to onboard

platform This into long-term a the strategy mobility-as-a-service in and sharing our for for of grows both long-term to company expand our plan changes. platforms used and and the will company will car integrate the software our part is services part into as and This company as integrate us our of that and many allow the participants market the to new will cars. for it and position mobility market dealer

some our in XX% capacity rented sense car in of and scaling were to partners build increase of dealership cars to commercial for you give initiatives Continuing To were the themes the from QX main our QX. XXXX that on platform increased number the QX bookings, commercial XXXX. initiatives dealer of

prospective recent commercial will cars afford business the now, that into the and for at who transportation platform increase changing again. be to TNC cars, we’re safe personal by with that working our and replaced the ever drivers start platforms the we home and shelter needs cars to We on their expect part current as so commercial scale and of are place the in landscape people delivery expanding policies have or expanding drivers expanding using when accounts

supply inventory. become We commercial of in future time, part the platform greater individual because in to being is XX%. KPI dedicated a become or as a improve XX% the rented larger we seeing Utilization supply under are track utilization peer-to-peer important found vehicle whereas more the that dealers is also the than of will

A quality. response few key reasons pricing for and include and owner for exchanges competitive time to car availability requests, utilization this booking

expect shift heavily inventory more and the fleets, we rates utilization As weigh to of increase. towards to continues in mix dealers overall

our XX% to post XX, of off XXth. Post overall leveled a has historic a mid-XX% pre-March high March utilization more from

get remainder moves to back for as toward returns to mix the mid-XXs of the delivery year, XXs low package driver historic over unique levels. this remainder as to expect the We the rideshare and the of period to

where and their vehicles portal and combined the trust tools, automotive technology dealership created has the dealers our team can related onboard platform. Our to HyreCar efficiently integration veteran environment match understand and sales OEMs have of of new that an executives needs the onboarding we and with HyreCar

platform to-date is that collaboratively HyreCar businesses the of our partner win-win to their service with OEMs affecting success this model initiatives The shift leverage provide business and core transportation industry the a both. and dealer a proving transportation to dealers a for that in helps as monumental is

a ecosystem. asset drivers from you heavy especially we back high compete providing no as asset we Georgia. their growth to on to opportunities longer exit of a scale structure model In to Lyft and states and integrated this from in have that is and our addition, light vertically cost more California based models on like benefit Uber know, of seeing relative cars Fair.com, recent are scalable against SaaS

become and in increased with us and our even light build business business to build as asset model more dealerships them profitable gives where in our we partner help commercial manner. prudent business a confidence larger as This we scale their a fiscally

to our like turn I’d to year. officer key Scott from call now details the Chief Brogi, walk the quarter financial some and through the to Scott? over full Financial

Scott Brogi

Thanks, Joe.

the review of I update financials, on important I to the Before give aspects audit. want XXXX an

the regards audit itself, some First, logistical audit to XXXX to COVID-XX. in related due ongoing our issues remains to

item is The insurance primary finalizing of the remaining audit reserve. for XXXX the completion the

accordingly, We and is auditors complete providers have analysis. had trouble for getting to our required the necessary this lengthening data time from service our that

included report our increase experienced our expect will we numbers result unaudited a the as in audited have growth in significant taken in our finalized and very to days In proportion to to follow, increase we’ve be in business. in ultimately numbers reserve We rental cushion the which that figures. conservative insurance core a approach a

to These when we approximately the XX-K and two advise is will remain weeks. the audit which in and is numbers expect these occur adjustment filed, we complete and subject results to update

payments and and standard recently Second, car versus on to the we SEC, of insurance rental industry their filings with with group of above income has have into classifying transportation companies. claims Lyft, the operating been become like of into as administrative insurance gross for our the the XXXX cost They working companies XXXX profit expense payments sold XXx consider statement asked line this goods line claims classification routine the focusing review XX-K. Uber peer an following our general the our in us

accordingly reported expense as operating is change previously EBITDA moving above it numbers are and and neutral profit has reduced our This no below both the expense line on to gross from and impact gross equally. we profit the our earnings

generating we Upon to of cushion. for claim following with adopt payments activities classification and and this revenue going-forward insurance this a sales results so decided further have the reflect basis, review, include insurance cost as the associated classification reserve on

when this will audit the in the be and report XX-K results manner reported filed. Going our forward, these we is results is will complete and

extra audit and work be was month the week. Finally, to few to our remote as and time full-time moved by as we’ve said, any sure The staff finalize have we adjustments. all make shelter ample slow this orders with audit a California team required process partners our including weeks in complying significantly will to last taking place governor partners

Even prior will form COVID-XX. related shelter data to to because delays experiencing audit I place we am the finish as order, obtaining confident outstanding from it an the allotted time partners of the in filing were we audit items within SEC through XXb-XX. in

numbers when and audit the filed. the We complete will advise XX-K and is update these is

the $XX.X by quarter. increased grew driven $X.X was For net sequentially XXX,XXX to from million XXXX, twelve months $XXX,XXX net third million to increases the XXX million rental quarter, fourth was quarter rental the in in XX.X% the from XX% the up in primarily the revenue growth days third to Revenue and XX% ended fourth a up December XX, to quarter. days, days which fourth in in quarter in $X.X

actually all to highs would that months XXX,XXX over We early I a net in from quarter first XXX,XXX XXXX. were at and like over booking through these days, two were of and revenue setting rental just rental net into time March. the in up days annualized have of an into first continued trends the for quarter XXXX over the we volumes days XXX,XXX rate of add

additional year. million approximately to increased million This $X.X the December our be final expect classified our in of XXXX analysis ultimately claims insurance $X.X their in the from expenses previously Cost formerly includes ended as to the million prior auditors sales operating reduced that numbers. hope reserve Again, in as adjustment well for year mentioned. we XX, complete and will in $XX.X this

to in the for the expenses sales same drive levels. XXXX million to million ended business higher year. increased of December was due the increased $XX.X expenses months period and from This marketing XX, the Operating XX $XX.X prior primarily to

ended per loss $X.XX net prior or months the or per share Our share from three increased December and in million share $X.X period same $X.XX to prior $X.X XX, the the sequentially from quarter. $X.XX of or year million XXXX million, per for the $X.X from

full the versus net $X.X million per adjusted our compared net the million compensation out For prior year the year was year, share EBITDA loss $XX.X or for million $X.XX loss of was ending which million $XX.X or net the for $X.X adjusted After year, XX, $X.XX $XX.X year is share. XX, our stock-based in a effectively loss ending for the approximately backing December per of XXXX. XXXX, loss to an December million in adjusted

$X.X had and was XX, million February, December of XXXX. of $XX.X marketable million increase $X.X secondary of increase July end million in result offering cash from of me, million excuse the This XXXX. approximately securities. $XX.X totaled in million And at an we completion Cash XXXX, totaled the at December – $X.X as primarily of the XX, our cash

as to the possible all neutral is cash marketplace. the uncertainty in trying with current operate as focus Our to close on

earlier, mentioned of it our a from all-time highs manageable is decrease we the daily March. Joe few during first just declined weeks which to As point, has track this ago basis. a on week But business a

operate to Amazon systems and now Stripe our cloud-based are ZOOM, allowing at distance. Web our with while Fortunately, very almost great like partners Services, teams Salesforce, business entirely efficiently

variable well. and charges in background decreased in merchant as near-term larger Also, nature to costs, much our of our so checks, result cost activity decrease of structure direct is the also in insurance levels many processing as said, Joe including

freeze car during and any owners tools by our difficult travel drivers to efforts leveraging We a connect renewed hiring them in remotely instituted both with instead, halted and to car with touch our have and stay also temporary times. these

become before, delivery as are well new and and food Food, package increasing discussed very normal. they the

continuing top-line towards positioned start well look progress flow participate come profitably. investing and things to are when make expansion growth we We in this to and in to again back, forward cash to

like call would the wrap to turn back to to I it up. over Now Joe

Joe Furnari

Thanks, Scott.

growth rapidly for despite new and mobility, to tailwinds not just fueled ourselves So, but toward it’s unprecedented are pushing individuals continue by future mile to goods services. and this positioning an in grow last and delivery is summary, a we environment, also macro

drivers, to fleet We dealers the enable auto to all see access and earn traditional perfectly revenues transportation-as-a-service and HyreCar than players. to participating OEMs, positioned for rather operators opportunity from disintermediating the

Feedback from has our and OEM been dealership initiatives positive.

So platform demand customers has to the vehicle on we our for accommodate are down to been Driver our suppliers. scale into focus. and capacity build value-add doubling a robust be and a continues key driver efforts consistent experience providing to

inflection is move shareholder point, the but look due I HyreCar a a believe we execution will long-term. operational and slower and bit value reaching the crisis, I direction which in now to positive over positive to conclude, creation continue forward continued To be to a

turn operator. With will the Operator? that, I it over to

Operator

[Operator Northland Instructions] with Mike Grondahl Our first question comes Securities. from

Your line is open. now

Mike Grondahl

Yes. Hi. Thanks guys.

up like, from I you sounds rentals March, XX% until said XX,XXX now? think month at XX,XXX am month roughly the yet? running math there. you a you it and down, rentals are to XX,XXX I bottomed Or about doing that XX,XXX you a So to are and has were early One, right, roughly

Scott Brogi

just business rental is that, right the this those Mike. mean, around days and for in were say were I day both in XX,XXX I There than range. January February, definitely February two fewer in Yes, would Scott, March.

week way quarter. sure, days the the well in started we March, XX,XXX our on doing And plus first were we for way

range It’s it a kind weeks. the So of XX% off bit. that in has couple eased last

see when ends into the then, we it quarter And when next Tuesday. the quarter. for up we’ll where so, that we on And close step second just

Mike Grondahl

to are you think on And fluid. that the When What anticipate you you like make of a little working you sounds it kind being I that insurance, expect renewal relationship, do integration XXXX. have Clutch more from then, insurance renewal? on that April X, complete? of kind do The there you. bit Got an

Joe Furnari

I’ll insurance Scott NIADA. of had the the tremendous amount a that at a generated piece. about But, have with Clutch, had more We we and with probably perfectly event. of about We sales couldn’t cross-pollination Clutch happening handle while Well, there sales at and were agents timed I’ll into lot takeover was heading eight buzz and let then agents NIADA. we XX

doing what A into the get can and about to They love me coming at we was and Clutch hey, are gig. up dealers HyreCar I lot booth. tell of how saying, us guys you just more and

is phase relationship move very that in So to technical going integration. a the first into light

have a integration don’t right I of because finalized what’s now the with broader timetable terms is when that COVID. in of environment happening just in

– push that ability integration button Clutch the platform, of as the vehicles from a for on our platform. that both is an asset well as platform but, So, is onto with to list light dealerships on HyreCar a to

because excited Scott have but So, get right don’t as HyreCar low-hanging a lot now then, to dealerships I’ll really with I I can transportation go talk we offering are into And that a the that is looking now reprice of there now. holistic combined let timetable, after services. fruit insurance am and to right a Clutch about

Scott Brogi

you Mike. memory, Sure. good Yes, have

and insurance coming and annual up carriers participating are We’ve several brokers definitely that working in dozen it since January of are been renewal. we We kind on half process. a about that on have our

to So period. we quotes forward the receive for started

grow agnostic is platform to service make the that thing ability opportunity as factored all package food delivery is for want see we through we our support needs. important those sure to there the of one think I that in we to have the

basically. we’ll that next talking that QX in wrap to about call. And our expect we excited about the be on So, weeks three up earnings

Mike Grondahl

month. and $X just February, lastly that you then like a expect And burned forward? burn do going for it it. me, Where January million looks go you to roughly Got in

Scott Brogi

mean, it’s a question. I Yes, great

got As we’ve of fair variable. we structure is amount said, a our cost

So, part already with down in coming is of that business. the reduction

different then couple rest We for modeled have of QX a scenarios we’ve the that XXXX. and

as that neutral. get us and trying are as bring to down to to possible So close much we cash

cash real of the the improve with opportunities have on one renewal to we think, way insurance the up the insurance flow is works program. that coming I

hopeful with pretty to significantly that into we’ll get very close that heading to be QX. renewal, So able shrink that I'm actually and it

Mike Grondahl

million? So, the do you that with think a help decrease the that lot burn Is help cash the insurance lot? $X of seeing we will were – renewal

Scott Brogi

terms conversations and actually we the we’ve program, some Yes, of we had payment that on of positive a our those are current to those have lot with looking carriers. improve

piece days direct the that’s obviously when have on fewer you So insurance your platform. down comes number the

background pushing the like as going cost checks less upfront that’s well. to – that more have through, decrease you also volume as do we We are

So actually cost in is of variable our nature. a lot structure

as volume to going the So, are decrease as decreases, costs well.

Mike Grondahl

Okay. Thanks guys.

Scott Brogi

Yes.

Operator

Thank you.

Street. Our Lake from comes with next question John Godin

Your line now is open.

John Godin

hear you Hey guys. me okay? Can

Joe Furnari

Yes.

John Godin

Awesome. Thanks taking the question. for

with revenue to level Is as kind we and models? different the the that unit food or rideshare kind that on be a revenue anything switch more any delivery. basis First, of else would a from model package there difference of

Joe Furnari

where so, they Well, from one anecdotals been good yes, what just now. over had driving drivers, a the our we good is are return right our days driver right pretty he example now three seeing for are have we money are for which made $XXX and that base. We he seeing making

am to perspective maybe package that But Scott a change. From isn’t away So, a seeing economics, unit there delivery. could on and my much from ridesharing it. more I perspective, towards speak from little and the opportunities food from now that bit moving

John Godin

anything it. helpful. there workers Got else economy how thinking treated? kind Massachusetts in hearing think about well. is Is as gig you the out is that now far anything there guys else regulatory you of address? Or And as that’s That’s are just important environment to and second, changing California are as

Joe Furnari

Well, shelter the delivery where in have places personnel in include place, drivers. essential you

those communicating are them to and trusted sales to to a drivers. is be our we communicating effort that point driver base this key our team to that a that’s so, And advisor

very over our needs big I Postmates think somebody a for or agnostic drive, given simple to of it’s wants to or platform who that’s continue a move to continue you platform. to let’s DoorDash and a nature so, the piece to And that earn, Instacart

card in can means insurance of of an the to generating that he platforms. name the which driver the use that drive for are any We

to So, we now they that can that’s a this drive and crisis key essential that as personnel. aspect are seeing

John Godin

it. to tier Got up trending then, insurance insurance the kind more gross premium lower few over rates. Obviously, last it’s of on and nicely past part in shift been a And quarters margin. is the the about thinking forward guess, well? that good I through kind it’s going into and shift then EBITDA, flows how think the to and a OpEx, runrate maybe maybe as be of to that down about would now due what to

going through? well? to direct kind be there it on costs be side Is a OpEx incremental flow of Or any will the as

Scott Brogi

Well, you I increase – for as to having headcount without dramatically to continue think is scale there example. much change see we really revenue

am of kind think, is a XX% to forward about it’s profit. going gross I XX% So, in shift what I modeling

you were kind So, in previously XX% the pushing the over are probably range. if XX%, of we in up

I to is drop place as gross still next and the to updating that QX in our lot then of think, that to be though – kind is. basically it going what slowed that little Just of see, margin see what release even uptick can we show has bit more with give you here the well when started But revenue, to to you bottom-line. profit a we we’ll a a do start are exactly and

EBITDA the the margin impacts that and gross So margin.

with top-line tools have on. I we team leveraging think of happen scales the brought some starting as see new the of continue the that some we efficiency to grow existing to of you So those can are

John Godin

and you guys all time your for healthy. hope Thanks Right. stay

Joe Furnari

Thanks, John.

Operator

Thank you.

Jon Hickman Our with question Ladenburg. next from comes

Your line open. now is

Jon Hickman

questions. Awesome. taking Thanks for my

for all, in operating and then expenses First the will the of me line above Is no part areas? right? your let sure of expense gross I in are be XXXX, you insurance make longer understand just that expense reporting – margin as

Scott Brogi

That along the full sales, on Yes. so OpEx directly that about with a the and currently that OpEx we year into play insurance $X.X right. basis, for in line claims million that was up direct weekly Correct. formerly cost within from moved was the of

sort we dealing TNCs increasing expense that. how expense regularly are of companies component this other that is consistent added and XX% standard with the to car so in of pay industry that’s direct that the getting and the EBITDA again that the neutral. terms with to And be is that so But, rental is of

Jon Hickman

margins. So, is of of $X.X now spite million gross in part that

You still in XXXX. million $X have a in increase expenses operating

So was more than $X up basically, OpEx million year-over-year?

Scott Brogi

correct. that’s Yes,

Jon Hickman

Okay.

you cash breakeven get walk through you going So, to then of the couple are next months? again how in could to

Scott Brogi

lot cash we of – there can we And that can out there in we pull for the bottom-line. there that terms et well. marketing out. between is is it spends insurance levers right is lot to some lot going now, of In is a to anywhere of pull pull This a probably reprice – that was down I or et pull cetera a think G&A, expense, legal as travel cetera, can pull

So, we are that going to work get down. actively to

advantage see as of it we positioned quickly. see uptick country right be because out this to are of now We the well. go start back people balanced, to a when an take coming want to to we going it’s that think to I work, relatively

use now key cases is That’s one of the ridesharing main commuting work. to for right

work, are work. we going to as country to back so as back get to the gets And soon

is that’s there. there delicate But idea the a So, balance right now.

Jon Hickman

Okay.

genius figure out doesn’t to take too being sold it are So, that really right not many a cars now.

is force dealership to that incentivize put et your to not force, platform? cars on So, but – their going kind cetera of

Joe Furnari

the that’s that well. manufacturing and and mean, mobility we in is think services going I push as dealer like world we there absolutely. ours the mentioning are Well, why a to towards be big the call

this that think have you to don’t going lot accelerate a is just of I because people cars. buying

for subscription somehow than their to a partnership leisure dealers way a XX XXXX and better down that franchise to estimated I it X million and/or XX HyreCar, million rent have Clutch going it’s what gig. it mean, a in that saying that million to extra be solution need out throw Cox lots from is sitting and a like to on utilized start on

bone So, want I yes, and I ready that to accelerate is back. a going case spring does crisis be to and is the only great we is there don’t to which there when this to for why think want this use cut

Jon Hickman

you for Thank that’s me. Okay. it

Joe Furnari

Jon. Thanks, Yes.

Operator

Thank you.

from Our next Maxim Vander Aarde Group. comes Jack question with

line Your is now open.

Jack Vander Aarde

Hey guys. especially given current environment. quarter, Great the

I guys Although to good but fleet looking The two additional these a think the before with fourth it’s rental press metrics, large release time regional I back quarter inventories cut begun to have still commercial last accelerate start under pandemic, know quarter. within in partners. the off you bullet

partners? as QX, over have So, do the meant number be those that there in was vehicles two with of from to included in you vehicles

Joe Furnari

talking I regional think, come Georgia and We of probably about and in our now dealers bulk cars on Jack, southern that large those was Texas. supplying that Florida, from were a QX. have are holdover the

So, holdover from quarter. probably a last

Jack Vander Aarde

Okay, missed or could maybe listed of the guys it. and I you end platform vehicles the that please metric basis. problem. of that today? did as partners dealership provide dealer then, or on XQ the at And no But think provide a on current I total you were can you

those were? be That’d whatever numbers So, great.

Joe Furnari

That’s about Yes, cars of a kind the away was gross from in we that direct out have correlation revenue. those XXXX. QX numbers up of commercial XXXX – from to accounts. moved is But

and is XXXX net the One of – the cars. metrics that past about those we XXXX. listed is rented. hadn’t given of that Net are And out that was cars in

XXth, get it then, utilization get about the a can you rate where mid-XXs. got or utilization sense I talked So until you normalized Well, around terms we’ve that now. It’s and to think March the was little we’re there. – rate past and generally two dealerships up come historically in more of kind can rate been over the we a of utilization It’s of years. off for the this, XX% three right in kind been bit be in

hasn’t fallen off sign slightly, but now. a is, the come cliff, I think, So off it pretty right which good it’s

Scott Brogi

the is is Jack, this of supply add, only Scott thing And, the north of I’d is fleet the component that, kind commercial car of XX%. now

So, that XX%, shifted other or has so XX% last way. the from year the clearly being over

car last year-and-a-half. supply providers So you’ve move the really over into seen year, the fleet

Jack Vander Aarde

all Has weekly In you past is, to ask one or around – in increased? helpful. been about it’s some more any that has been detail? that know unit the that’s any And And on I just that to base specifically want then talk economics, the it. change Got $XX any analysts is about my dropped there $XX. Could to asking even there. or daily changes other rental average know I fee? were further or at about What –

Joe Furnari

Yes, days right like I flat to crisis. I literally mean, think now. XX XX are we it’s the into

haven’t that. I on So, yet, seen drop informed a but keep I’ll everyone materially

Jack Vander Aarde

it That’s me. Thanks Great. for guys. Okay.

Joe Furnari

All Jack. right. Thanks,

Operator

Mike Thank our you. next Securities. with question from Northland comes Grondahl And

is open. line now Your

Mike Grondahl

Yes.

the year talked $XX.X Scott said of million. Scott, Does include that on million just couple a about $X.X of sold that think you for insurance? Just related it? fourth the whole the was part for I more you Or the that include cost goods quarter. to does

Scott Brogi

of million in from component we mentioned, then, into $X.X finalized. insurance put entire cost for OpEx the as there that’s up pulls we still it being have No, sales. room this other the And reserve in that’s

year. So, for sales in that’s items those – the $XX.X are million full of of a a total piece cost two significant significant that

Mike Grondahl

those the fourth that Are $X.X quarter, then in is million insurance it. all basically Got of or the the reserve, cost quarter? incremental in all fourth

Scott Brogi

year. increasing year. is the quarter the through of insurance half into in piece It No, is second reserve it’s only. And then fourth the quarterly the the

Mike Grondahl

operating moving think And expenses, expenses it. total just I then to were operating you million. down $XX.X Got said

to trying can do just three in I up the how I to cost out just sold back goods kind of XQ? And that sitting to out figure where the So, of come to am you are with too, for fourth first quarters get guys quarter?

Scott Brogi

only that why I think And heavier quarter. hit, GP forward that’s said I adjustment And think that that I basis. higher why going is be will a takes because on that’s a reserve Yes. in insurance QX

as I side that’s and looking repeated really GP then, that it’s the that. as OpEx goes, at far I then, think on number annualizing kind certainly quarterly of So, that and

the $X right. If you you’d quarter at $XX in million, $X a million million, OpEx, just be took

there. So I little There's a expense don’t a there is the I think in non-recurring in of extra think, bit fourth lot of quarter.

stock-based legal some we then other have $XXX,XXX the pieces fees course, you cleanup some had fourth quarter. that of and comp and that is There in in to do

you from EBITDA it reduce if So number. you further about can that of sort think a perspective,

Mike Grondahl

Got it.

okay, full for back about first least goods sold. the cost get million reported. million, at three I I then going saying, $XX.X to it’s you guess, $X.X ran In the operating think year. I of about you I And am But the quarters, are expense.

$XX.X call So, $X.X basically, million, million it… minus

Scott Brogi

X.X?

Mike Grondahl

$X.X cost Yes, right number? XQ the roughly million. sold that Is goods of

Scott Brogi

Well, We – analysis. which do I up finished I audit we up, pull a making got again, so no. the there in you’ve that for pull think estimates could is you’ve got Well, could number that’s an insurance reserve have to we’d higher. – time and the the quarter-over-quarter being

we So, do back that follow-up get and can to. and

Mike Grondahl

are million, confusion operating I XQ the only of think is is, that’s this you what also saying think all in on That’s in is. an where the XQ. I $X.X some basis,

Scott Brogi

again, the XXXX Correct. was it was mean, it it and full bigger four so, QX, but quarterly all in through quarters, Yes, increases in I so.

Mike Grondahl

going where to how going on going to Got They I I think look know mean, people model is so. it. forward, that’s struggle. what like are don’t to

Okay.

Scott Brogi

Okay.

Operator

am to showing this I back call would further turn any I over for not now to you. like Thank the any time. remarks. questions Joe at further Furnari,

Joe Furnari

you Thank We today. very the operator. joining to thank our you on for you And, continuing throughout much. Great. progress forward us year. update you, again to look Thank

Operator

for conference participating. this Thank today's and Ladies call. gentlemen, you concludes

may You disconnect. now

HC Liquidating (HYREQ) 25 Mar 202019 Q4 Earnings call transcript