HYRE - Earnings call transcript Q4 2020

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the HyreCar 2020 fourth quarter and full year 2020 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]. today's be that advised be conference recorded. may Please Instructions]. [Operator this to your I would host, over hand like now speaker conference Joe Furnari. sir. Please ahead, go

Joe Furnari

Thank conference everyone and welcome you XXXX operator quarter fourth to full call. our earnings year and

Before be opportunity during remind this to Inc. to Laws statements forward-looking started, within we we of you will regarding Federal I Securities get call, like take would this making that the meaning HyreCar

strategies, are but include, uncertainties activities, company's risk not limited to in or that risks relating statements implied to with statements the and in expectations, These Exchange subject events that statements earnings, are actual to, results Commission. during unknown intentions, and those are U.S. current the that express to Securities our company beliefs, factors about particular, projections part materially in cause described based statements from business projected and differ Forward-looking and the predictions known conditions. future based in other this assumptions any included management. on on those by or statements documents its the estimates company's could expectations, or These made our files call,

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

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

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

the Now XXXX, business in turn the ago, are and and our platform times value to as in the identifying transportation March HyreCar's our Fast year life unprecedented in we A model expanding and work COVID-XX, pandemic global on team. times opportunities delivery as for last and these in confront changing results. but participate our by home platform we industry. late accurate. be year the said, March the prove to by and these by in grocery food, we move test will today of prepared to to on rapidly forward in right proved a and our people of expand effort delivery words annual package living to emphasis we companies proved rapidly

for We for days robust net fiscal continued stakeholders, to result, strength during making increased the to I could was incredibly driver demand. efforts and to fiscal XX% We recognize want the in year, up year, XXXX up million increased $XX.X the $XX.X revenue for efforts from and entire team. a HyreCar XX% thank rental of XXX,XXX the million X.XXX from As million HyreCar's XXXX. collective in not has the you. partners we investors, their work main it and year. hard this and source of happen your advisors our challenging support them been all what do A without in thank of

growth on rate. new the up car a XX,XXX XX% our picked For a platform, year, drivers unique year-over-year

to we recover to focus delivery, increasing and on as to revenue retention expansion and us post-COVID world. continuing the sustain include drove rates, day growth food, plus grocery look during lockdown our customer Our a and rental helping

are As their an seeing said businesses. DoorDash evidence continued Grubhub of in business, in strength and the they delivery acceleration that

their for is for to given that for driver delivery, that foreseeable is incentives prepared remain future, grocery metrics One was which demand and the is flocking their the are still incentives. strong drivers flat and good expectation key driver expectation sites a of of continued Their and food indication wider businesses sustainable more a in because it audience growth a the that is COVID earn adopt consumers by demand Delivery-as-a-Service. represents of as rental gig the trend income. foresee acceleration enhanced. services use We that these to We believe

As delivery to TAMs on result, continue platforms a will grow.

packages. as just For see adopted Uber U.S. Average of delivery now restaurant Grubs Delivery-as-a-Service restaurants only to lower growth Two-thirds they and the year-over-year having not index, now pharma logistics flywheel have XX% to in micro delivery local Eats a accelerated forward, rural products, example, in and starting environment, XX% now sizes of move Grubhub's are in into and for evidenced cities an HyreCar independent basket COVID predominantly in and moving X but food, areas. effect services over we XXX% hemp drivers the Tier and X grew oriented last year-on-year more adoption opportunity have small of delivery, land, everyone opportunities serve penetrated where Even as have quarter alcohol customers, noting the acceleration is and Daily by delivery adjacent

said investment Amazon distribution and reimagine in assets For local they fulfillment as increasing centers from away their local example, to airports. are they start

growth creating and Sourcing strong demand larger how will environment suggests economics a pools. a driver driver in vetted attractive, larger is sustainable local remain supporting supply sustain drivers we delivery have of able our HyreCar been and to environment platform

great their delivery, is expand increasing Uber to since their the have business demand addition The and incentives trends. states said and increase also expect indication having they are from pandemic. week-over-week Lyft reopening gains driver return of have rideshare drivers recently said best rideshare to weeks help to as and they In a the to

of demand next and recovery and service phase is further the So of combination move strengthen delivery the which full reopening, into rideshare will COVID, side we platform. as volumes our we recovering of hope the

expanded announcement we and the with branded car the our parking services, supplier from spaces retail new service January front, fleet an partnership previously financial onto locations supply aftermarket Holdings. are nationwide. partnerships with logistics. and fleet supply for announced increased AmeriDrive see HyreCar, AmeriDrive That to specialty Bank vehicle On we and these an On suppliers. national leveraging XXX announced a AmeriDrive and chain starting over vehicle platform XX, is for Cogent locations automotive with relationships innovative included

currently to in operating five new these in are the of are the expect XX by in delivering am increase out and operate supply. say end the of vehicle stores to that We Southeast stores the I happy year. partnerships expected

the preparation Record-breaking are as reopenings and continue would and will have steady weather we vehicle that XXXX are We initiative to through in in or an a We supply through year goal will logistical April. back moving and X,XXX ADRs the initiative and We of hampered X,XXX an over strong in onboarded titling ADR quickly accelerate a ADRs efforts into run as of supply on average that have run this our of further gone expanded month expected pipeline. the with cars in QX the reconditioning Southeast March, liked tailwinds. vehicle sequentially April of complicated have transportation, state March. inclement fully as the AmeriDrive half X,XXX in I trending reached continue with efforts. rate the dealer rate daily of as to expect believe over to average ramp from rentals second and encounter average toward little first quarter our some did from that AmeriDrive our we initial scale the constraints in

anticipated. are of COVID-related originally economy. the and unprecedented independent demand gig pent-up driven for is and due government experiencing by demand chain With to supply listing In issues lack and the record stronger purchase used addition, there Part shortages dealers as in due This from only new interruptions lockdown. franchise used regional significant through of production prices. vehicle flows than rentals demand vehicle car will car the high, stimulus fewer dealers to car new get supply vehicle are

from we while However, supply to utilize companies temporarily specialty want constrained, is vehicle sourced seeing fleet other rental who vehicle find to are car their vehicles. growth and dealer ways platform

In have supply team existing vehicle fact, with our internal increasing customers. been from successful sales

to incremental surveys, previously firmly us they XX of HyreCar and announced revenue unlocking major leading opportunity are website, base customers quarter, revenue. intend we first value the opportunities. days TrueCar. one to separately, over that I our incremental the We tell finance consumer initiatives buying infancy ultimately So of our to a One with vehicle from a collaboration believe growing revenue in or automotive customer renter that less. vehicle. customers In purchase internal generate buy, our of finding insure our is is this XX% leverage in non-rental the and research

purchase fleet going also us to assist to need are new get they financing our partners and and will allow out operate vehicles. We that the initiative drivers to a

on income past this customers called we program while Earn-to-Own. a help part As our new earning vehicle program this initiative, buy launched platform. of quarter is a to The new

welcome gig a payment was HyreCar's this history The driver Consumer initiatives Initial driver options place in with vehicle rent is to we competitive to and with platform. often loans. have gig improve barriers rental are that these for have for in that A component and and industry financing our partnership, ACC customers to the them that is an And qualify is HyreCar's reasons that to program longer specific multiple dealers car. We consumer for provide believe It's Finance. initiatives are this other value highly help resulting proves state first of to first. a working financial on provide and gig in drivers underserved proposition consider periods. recently We partners rental our development. launch financing designed data important more drivers key buying put owning

neutral EV to which for vehicles HyreCar's to their This platform. innings and to of them carbon goal to on beyond. leveraging increased through earn and a these both development and resulting the been HyreCar platform Uber past, are have to owners begun is We team looking higher has in value objective It incorporating to create driving accelerating bonus our of early way are in XXXX. And trend opportunities enables incentivize XX% these XX% drivers electric initiatives, a to business is by as not see up our pay drivers, in to programs XXXX at be join into for in is the monetized rates lifetime more satisfaction customers. more. that the stickiness additional Uber we the and to lastly, by vehicles, but Lyft existing we

encouraged government include the incentives growth. Additionally, incentives HyreCar margins significant and on to their fleets. there platform operator zero the fleet operators supply for and in for emission vehicles are car These EV increase OEMs

the Brogi, with us financial So to elements and through key to Chief our Officer, some Scott? that, quarter now Scott from over Financial I turn the fiscal like call fourth to would walk year.

Scott Brogi

meet to many year we one XX, rental was months delivery able plus by in so XXXX, going from difficult the our million XXXX the ending days the had approximately goal expanding of ways XX, the Rental prior in days original ending was X.XXX a into HyreCar December set Joe. months the team exceeding days XXXX, rideshare to XXX,XXX XXXX. December to XX for XX but million platform Thanks year. rental for XX% increased still

from for month For months third September quarter ending from for quarterly million three a second were rental flat to XXXX, the quarter was increased in $XX.X the XX, for $X.X support of the geographies COVID XX, quarter. revenues XX, Cost the period key ended Net the in days sold to wave winter year's the XX% December million majority from the million the prior of third the to car increased $X million insurance ridesharing September of in grew as XX% days from for prior quarter from from year and revenue goods XX million million record rental cost the to sequentially a by some $XX.X in XX, grew three prior $X.X due to business days our XXXX XXXX, higher XXXX, impact of for quarter the ending through through X% the continue ending of felt of levels the XX, winter. shifts sequentially Fourth to XXXX. ending prior supply of year's XXXX. sales to as XXX,XXX $XX.X fourth ending account through the fourth XX, $X.X seasonal ending primarily million represents XXX,XXX for XX year XX, expenses XXXX, segment months XX% of early December costs December the December increase quarter insurance rental the and December the months several

We and expect domestic enhance of the to with best administrators make HyreCar partnerships program continue our to new insurers, vehicle operators. the and choice brokers platform for

the for XX% increasing ending ending from XX% accelerated Gross margin months in profit $X.X a XX December the period year processing XX, million get As platform the gross time shrink sooner. XX XX, as XXXX, XX% claims cars period XX, XX, was ago and $X December million months was for ago year the XXXX, on to from down we result, the ending December profit December insurance ending XXXX, XXXX. in more

invest $X.X We XXXX to up for the and same year, accelerate the our particular or range totaled This increase Operating sales $X with XX% to to to high by OpEx estimate subscription year, quarterly non-cash the continue and in million increase drive gross of quarterly $X and period further to to from expenses We After of processes the in to expect XX% million $X.X slightly OpEx in increased expense in months in million in primarily increasing and ended to XX% technology, $XX.X and anticipate technology significantly December XX margin so as cash million was from prior of expenses XXXX, the into from margin million target going referral line year-over-year. the higher our XXXX we and XXXX. operating year forward on XX, $XX million platform million stock-based for XXXX. higher profit increased a insurance as compensation prior into levels due $X.X revenue in we we $X increase operations operating leverage business million. operations, revenue XXXX, cash income. million improve basis, other $XX.X to

from $XX $XX.X slightly to share above XX, ended to per million $X.X the decrease million million $X.XX increased from XX, December quarter. per the XX, sequential $X.XX of year. million year's prior non-cash year $X.X at December decrease Our EBITDA XXXX prior items, $XX.X million negative share a for for XXXX, or million. of of the $XX.X a million net the million prior Cash months out million $X.X the as from totaled $X.X and XX loss backing XXXX, was After of adjusted for $X.X December

of last equity financing We month. significant a $XX.X also completed million

So as JPMorgan primarily the bank and million Chase. $XX of investments today, we over with cash in in have

to final I Joe to turn Now back the for call remarks. would like

Joe Furnari

summarize, HyreCar of rideshare we confidence and shown us business platform. our driver With the too merging delivery more platform let The nimble has that To COVID line, is can expanded Scott. our and to a this an Bottom tailwinds new performance rideshare that they appear. confident Thanks represents only businesses HyreCar's as created validation Q&A. gating as have of for and business for our model was factor are rideshare. and environment that an that, capitalize operator, opportunity opportunities fleet combination reopen, supply secure this now in car is are are our on as growth created as we delivery executing scale TAMs and on starts our that expansion The to the on big return just platforms enough any to we and real-time. so goal demand partners business forward. has at move driving to TAMs will remain

Operator

question Mike the with from of Grondahl coming first Northland Securities. is our line And

is Your open. line

Mike Grondahl

it Hi. to X,XXX about had Yes. Thanks But sounds guys. Hi like another going have average cars, sounds chunk of on it got X,XXX. Joe, March cars you late like March. XQ is

So April be about is to X,XXX. going

pace hefty XQ, you comes first what that how have next? Because X,XXX in XQ? that's do practically got of thousand you about quarter? think Kind a a of So on, cars,

Joe Furnari

for you. to hear Mike. agree, thanks Good And Yes. I the Yes. from question.

I there the of a an run think to was steady kinks as really we the going the rate and out see that, they a increase we what pipeline. in reconditioning lot in in are that work script said

cars. tremendous but specific amount of seeing. in And really giving not there am steady we are I numbers comfortable are we process so is adding what a rate what of run are a we and

compared market. amount some going gets think of I of now. small logistics with on of used auction supply relatively amount and it that the the cars to out complicated coming at chain available the bit be that sell industry car in a to going in But a that a are it's cars auto are little right

I numbers healthy had really QX. the see that happy hit at thought of kind going run So right there we now. rate am where able in a to end were we were we are we I that to I and the like trending QX, of hit

to yes, it's well. look and starting good it's So out to starting really work

Mike Grondahl

Great.

Secondly, it rideshare for? third Is you describe sounds that like leaning cars do opportunity of a How rideshare levels pre-COVID? bit. a into at you going you as the of delivery sort see is robust forward? quite scope would TAM and that do incremental or Or you rideshare? how And are

Joe Furnari

Yes.

of right biggest they in XX% QX. now, weeks we are last what having about But So year are that rideshare post-COVID. ever seeing it was is their

And so trended typically, have them. we with

kind as we that you see can So the numbers as well. ADR that in have they grown. And have grown, reported of we

As are more And for more two of all case The airport restaurants. quarters. back. Number And the stuff ridesharing more you is number strong of commute think use number that coming looks I rideshare. bars is the probably states start to daily see going it's next and in is like one reopen, to couple rides. back coming three and

us real delivery some I providing well. strong as it's think, as remains So for tailwinds,

year. really second So the half the push us those I tailwinds, of dual into think,

Mike Grondahl

managers? Got that? last describe would broadening you it. a Is cars? Are that And supply talking of bit you question. how incremental Or little fleet out to new your

Joe Furnari

peer-to-peer or operators expand. coming that two fleet retail are relationship are So specialty is leverage adding, well that look commercial this going are right that, other to AmeriDrive what fleet of onto then we it. the really that we that platform want three to the piece now, there behind large on to as the with the But larger supply as call really versus we supply. on provider outlets, focused are and commercial right a

we counts. like So as phase and the that ADR additive, it's our to see next kind right,

announcing are into So are as more up. we really that start ramp going be we leaning yes, there to and fleet operators to

Mike Grondahl

Thank Got you. it. Great.

Operator

our Davidson.. next line D.A. is from And Tom question of with coming White the

is Your open. line

Tom White

taking Great. guys for Thanks my questions.

I last was you sourced a on a And think bit was that maybe could hoping color provide than Just I would height on comments flush you the the supply. at XXXX, happened least vehicles I certainly in dealers, more rates sort I little guess OEM couple Joe, with tight. would were inventory maybe of at that to your dealer be said have about, new just thought production they a just maybe pandemic. given probably they of what looking more year,

may maybe to big the comes just it up us of then flush the which to should supply sort supply supply? your are vehicles? sense So of you understand monitoring And Or partner help kind they is of set are extent are to Is you? of you new marketplace? dealerships what's it of are to to for of like come the a it a more, institutional will dealership supply? supply it of guaranteed clarify sort used amount with we sort certain like be the dealers when how when the at Is guys get the do at partners, question, kind in agreements, your just optimal vehicle those participating

Joe Furnari

Good Hi. Tom. questions,

used on car lot And dealer starting dealer you lots. more the of put are a dealership's cars And X,XXX from flow see there start for see lots, MMR. When a now, for on cars. secondary lot So going the new to to in that and to used that platforms. cases those on downward X,XXX X,XXX, are adjusted you is manufacturing those some cars the means coming. for that to start perspective, what to markets pressure those market flowing as Right ramps cars up should onto trade-ins perspective our dealerships cars cars in is the lot put at a OEMs, less markets a at used above

vehicle the fleet is specialty and four have a cars been AmeriDrive has channels that supply. and we being So plated fleets. Specialty through now Historically, few that of were the way there tagged. others combating already always right

is shrinking dealerships. have you the First over channel time. aspect peer-to-peer then always been has And it the of which

You have you specialty cars. fleet. rental And

question growth seeing from platform guarantees. We terms the are about a the major then, now the in fleet. right on of specialty And

HyreCar have partnerships and financing place, AmeriDrive, on have site. there. specifically We in that these is vehicles where involved with mandated And put financing purchase to they them the

those guarantee are a to So cars of start from they we on. adding committed going certain going have you a amount cars. are start to so see, to to see And flowing perspective, to

make pick start new the second we see up already ramp assembly really have start a speed off in the half cars to steadily to And that the with We started and expect in QX ADR meaningful add impact or roll growth. to as manufacturers line. to them

those to dealer assembly and off floors cars start in play. the used normalization As new then the they starts to cars of to come roll line hit

point. to all more it's this starting specialty So connected and But and from starting to normalize it fleet. feels at like cars on coming it's see more

So now. are we seeing that's what

Tom White

rental are I supply Okay. impact mean the you going from operator expect it car guys. of you for do be Should partners. kind Thanks on quick rebounds is and ability access and cars for trips additional to rental to to you channel follow-up that travel from of once adding going fleet, have that leisure demand helpful. guys a for are demand who that. presumably supply an That's your channel? sounds on just Maybe whatnot picks that kind and up, like people on

just that channel leisure too? there whether the curious demand of or might specialty more when fleet grows. comes vehicles presumably kind rental am car some up I to be of picking from But maybe it So travel

Joe Furnari

important a rideshare the deal it fleet. which that provides dedicated there announced fleet from source January and to it to side a now be a fleet years amount the grappling the Well, those the four so And right because certainly, tremendous platform. of and or have in to reliable is, that's is is demand think drivers, why side. both ability we that it's this for It's Yes. like from to something in we is the been last with five AmeriDrive has delivery I

see I cars. going you start of economy the individuals have have starts so to where reopen, terms in to adding of cars, And you you managers are adding kind natural a business forward, as course of cars, think fleet adding like many reopen, states fleet operators

way normal about the course. is, so it think that's I And

to You deals of come continue that's flowing on those see but are these it's addition of the to see rent those we where going the when also them, cars on platform you did And cars bigger we demand because like vehicles. we what amount is AmeriDrive have then incremental to the that have. platform, right,

so where is larger And from see we add that growth incremental the the partners.

ramps more to run want state through fleet grow. to get as that's we the have already sitting going the as and the utilization, end of So they up fleets we that year how AmeriDrive there and specialty are steady

duration I like a three am or from of leisure. at drives. the That's the longer now, our of XX It's fleet throughout that's running versus specialty two terms these been days. think what rental typically I that days. rental duration. about hearing And platform our the Right steady managers of platform are pretty in is like they utilization year we

less have to to And that so site. car, overhead recondition fleet back put and it for those that to on means operators the what intake is

managers fleet cars. a to rent lot we switching those platform our to basically are over of seeing So

picking only I that see economy see don't I up so this as point. slowing at And down it the opens.

Tom White

a Thanks Joe. lot, Great. Okay.

Joe Furnari

Thanks Tom.

Operator

Capital. the Mark question Street And Lake of our Argento is with from next line coming

open. is Your line

Mark Argento

back bit Scott. you you to level? kind think something of Joe. just know, Or wanted dig a I to imminently? the I XX% getting happens Hi Scott, gross profit. ramp to on at anticipate little mentioned That's relatively you what's that level. the in Hi XX%

Scott Brogi

Yes.

into will I next grow that over the of quarters. think we couple

so I late of bit be those continue platform velocity with payments lot cars to to the right, as was can that going on two drive back talked supply the get we about days. as possible, a We And on XXXX. of dependent think car to quickly it's things. tight, again in claims rental that primary a little

And on well a referral So you that as new the think revenue have happening. we lot the relationship. as revenue been And around then of have. got just piece going recently I that other TrueCar new subscription we both some announced sources And income. there's that's

to current we of some more kicking levels kind think that now of two brought revenue as there on So sources those combination side got returning have to in, completely other to having going basis. start well you of the the as kind normal a drive to GP on have claim levers of starting forward really

Joe Furnari

have I So getting we couple think next over good chance quarters. the there a of got

Mark Argento

nature? of issues, that that the one-time from Do to pop-up is kind you see more basis? like the kind more claims that you see of can in time-to-time? make is that is of a spread Or something something you on normalized get Or over quarters a more

Joe Furnari

question, good really a Mark. it's mean I Yes.

lot into XXXX. been of of the here end we I have is, seeing a front put effort the we think process in what

claims on could are claims process really efficient who are from been announced back think responsibility. those process then the quickly a around so can know and the that excited car country that place. that both but formally in don't the put claims he of suppliers over platform. couple nudging have gets so as really Brian you new TPA together selection new we about cars I we weeks Allan's last dealing I us that So repeatedly And those get both texts that for did bring it having a we have we third-party so with PD a you liability again, the determination administrator the

little improvements I the going on forward. And basis in think we going actual we I done So that now are there of expenses we really needed of an TPA, think the forward have that that a in turnaround see to catch-up dramatically. bit was And cycle. to those shrink do going reduction to with some then the

Mark Argento

relationship. then to And just it. the Got getting AmeriDrive back

sounds due maybe like bit slower to along it here start got a So but of good. a weather it little pretty some like coming you seems

car longer X,XXX guys to XX terms kind Or any what's there year, thinking bogey is to your next get fully of of believe In reason in terms to you X,XXX of term deployed? couldn't out? the months that

Joe Furnari

commitment initial X,XXX was The Yes. cars.

And now are we that I that. towards towards right So driving internally driving and everybody externally. am

stores meetings to there and these I it, but national stores weekly U.S. talking retail Carlos have well has really chain suppliers in are in operator there. ramp We up. over with am they national as over national retail are the They this chain AmeriDrive. XXX to leveraging mentioned We five Agustin, daily fleet his and now the

that footprint plan for them and ramp. the so to leverage is And really

year think quarter And this so aggressive that's the we a show the execute what that I is here. And execution. This results that first of at really we are pace over can doing.

I really have that. happy news looks So like couple we some with got the to really in of good am next quarters. announce It

am I excited. So

Mark Argento

Great. Good luck. Thanks guys.

Joe Furnari

Thanks Mark.

Scott Brogi

Mark. Thanks

Operator

next from Aarde Our Maxim of Jack with Vander is the Group. line question coming

line open. Your is

Jack Vander Aarde

Hi Hi lot a had been questions. Thanks Great. taking a with my Joe. start I of But will Scott. And my question financial more asked have I questions. already. for mostly qualitative question like of provide guess own eventually for vehicle financing drivers great idea. new with sounds Joe. HyreCar Joe, I offering, Earn-to-Own the a are the options I they to on helping the renting related

out, period? a launched you sounds guess, trial real officially? this you I active the for, is or have Or testing mentioned Or is launched it it now? and already like beta out, deal clarity, that like you Just official it's

Joe Furnari

months that official. to where it's three that liked and active program driver right this program marketing The about now. are vehicle. financing actively a we giving to drivers thing is is four are or I It program Earn-to-Own a And we

also or financing We right, has a and know an them are Lyft a a driver. because Uber option driver and we or he's delivery giving he saying job,

customer it's great And a months. from or from It's that the to financing around entity, to have. great be rental risk three going is four risk. standpoint, a duration So of the a

our a that quintuples And everybody so lifetime And in think at car driver that then of and the value situation. a win-win customer. end, for a that I it's has

the But growing that. entity. So and insurance of have revenue see TrueCar affiliates participating that we am one Relatively really think rest and I chasing financing Earn-to-Own other programs dealers, now the with four some we going. three I or year down throughout we of fast small, I that excited about these ancillary have that the including of along and opportunities some are right subscription

four really GP in or of see the So kind I initiatives, future. to between that those five adding

Jack Vander Aarde

a duration above, yes, follow-up, rental think, or kind XX That's Great. so. in it's around past that to your And months actually around interesting, median you definitely said just it's the of four which, helpful. I three days

So that definitely overall levels. will your increase shifts mix higher utilization

And utilization, that so well. Scott and of far? speaking quarter how track first just to So during the Maybe throughout has as quarter great. did those the answers fourth that's

Joe Furnari

What Sorry, Jack. last was We missed that that? question.

Jack Vander Aarde

am sorry. I

HyreCar, how track the quarter? for overall trending first So for utilization the during how are fourth quarter? did overall they And throughout utilization

Joe Furnari

high-XXs. AmeriDrive you a XX% from results, and So of at look are it's are utilization to like the like up of where seems we off. I those dropped above partners standpoint post-COVID search normalizes to trended for of utilization I the top are like seems or the be, that running kind others the around narrow we they mean to kind or trending steadily standpoint, the XX%-plus. which now where pin low-XXs, be of pre-COVID, are in from the think some search we and And prioritize the to platform we down, XX% results kind or levels point overall a so to of

there. So demand we that an you amount the indication gives of that of are driving

Jack Vander Aarde

just And of a GAAP margin. have you Scott, that's hear. great asked been kind to Got And helpful. perspective. That's shifts then, already to quickly gross Maybe I the about then OpEx you. will

to comes it like just kind forward shift looks this car this to $X.X ramp? throughout you it new increase GAAP anything going base million to for quarter, us about around level expect assume in do fourth good given quarter supply each Is OpEx. total of XXXX? think Or be of a I out

Scott Brogi

Yes.

Jack, So about was kind think for OpEx million I in to $X cash we the of OpEx we full that in of came a quarter right million talked $X.X that cash which before. million, around $XX year, sort

in have dealers. those outsourced on about talked We particularly We already sort made supporting side, other the leaning of some support sales incentives. some of investments on and

I So range number. something think $X.X million looking more we looking is I probably at are think we I what quarterly kind are mentioned in that, of probably at of the

quarterly are a $X.X basis. basis, to more a of million instead a cash a on of at probably on quarter So range kind we looking million million $X $X.X

little a well so in able investments be the a up XXXX. had some here to we bit, are ticking to automate technology So platform further that in faster side position we have on as the to scale

be from that's past. as more us I you think are where in talked of to a looking look kind at. have to the there, should So we we the extend about and X,XXX logic going at range we if range that are in still that get think cars breakeven And then that point breakeven you

contribution OpEx little at markets, So breakeven a of kind the it's we bit that's cars to of think it's rental daily kind up took us going in X,XXX still we the from because right coming that get to those but numbers. a the

thought little that up. with anyway, So but I have would been end a went that you further answer the where might

So cover I it. just to wanted

Jack Vander Aarde

am color extra appreciative less. of I always than

back Best you. the So I jump luck I appreciate Thank in in of that. Thanks. will queue, XXXX. guys.

Scott Brogi

Jack. Thanks right. Take care. All

Operator

[Operator Instructions].

coming of Goldberg question from next GX. is the Our line Josh with

line open. is Your

Josh Goldberg

Scott. and Joe are Hi doing? you How

Joe Furnari

Josh. Hi

Scott Brogi

are Hi you Josh. How doing?

Josh Goldberg

Great.

think that and be supply some able point I is what And these But will this supply. capitalized impressive some looking you you've think raised actually market cars this a biggest supplied guidance the fast if I it's have questions made I talk analysts to And Mike able how well guys of them of what speed ramp the you think second the about about time ramp of that forward And it to kind been these it clear. I I you how it's you in asking terms are one, you they It get not I XX you And fact investors do you of of terms mean post-COVID at bit quarter. then be that really but you just kind And been go. car supply. only into seems also capital a your to have accomplished over you car issue how raise And end about and the to So ramp half the the kind it increase that? the when X,XXX guys was Grondahl's have maybe where increasing to able to are to and last the so to your from it to your from of got have through at seems like confidence year, going to really the more cars to the partners it's follow OpEx try kind then about importantly, third then questions the in back responding? fourth and the and curious like And effort here months. of think car sort Did this is are time? really and to first specifically now the on now get the up. think to just right that number initial that could talk up can are the during either, additional ramp? obviously am if way cars of year, a I AmeriDrive feeling is, is of possible? the starting true, in more to people of just have

Joe Furnari

piece. a Maybe of couple on different Yes. that angles

to opening of see with shoots right. starting state's We all up, the green are

that ride And continue trends sharing ramp. are general tailwind us. So is provides going really a to to for that

side. year I ramp through it, about demand so of I the kind I the start in really coming on to think And late summer, think that as see fall and

look of used to ramp and it the I only cars QX to and not in cars kind about car angle do mean have then way that on half I used at state, done And the all normalize partners our so which used it's think not QX, this we shoots, the probably of crazy. of of see second are to happen, with the into the you quarter. next the maybe adds in state those the AmeriDrive add we think we lot third really because that the our quarter a now for cars quarter, year And is, its But steady only we back to the add it's really in green but for go also already into add start incremental to steady kind fourth to scale and are angle the as but and from other market marketplace. buying is, to market starting starts easier is

dual of tailwinds kind those -- So

Josh Goldberg

even is So before the in AmeriDrive you probably better XXXX a did you terms this have now weeks few feel of you confidence ramp the ago than ramping?

Joe Furnari

pipeline, we rolling big than were the cars able the the right. that cars. XXX when these out first they I and uncertainty the fact run acquire always tougher Yes. There's always partnerships, through cars like But these XXX think to are are it's next some

were on able those all of of our in of And all out to account we had the logistics. think kind into We so these really managers I all half market, second people ramping guys hands deck figure up with March.

starting do from And and so am where see were that. there. am really to I able ramp to I that -- that's that excited going we

Josh Goldberg

a did that Okay. have you press Great. really I question and highlights job presentation, guys you talked about had. release really for think And different Scott the the second good the on

I days your curious just the report the plan press rental in weekly not am that’s if And did forward. You release. going

the though now again. monthly include release, that press on what you Why up weekly you drivers that add is? you on going on clarity Thanks just XX%. Can anymore? platform, new did it if not forward? about did or the us something metric give the some to On talking you days And was having plan decide

Scott Brogi

XXXX rebound in like the people XX% fall first right, Yes. bit. a wanted year in in And that I new piece to with and will and of we maybe that Joe XX% But of that weren't to then kind other critical in weekly driver March Sure. or saw were. hit visibility really start weekly down little the April, Thanks because right, Josh. started on early granularity was a we as can COVID, ago, the piece the sector we then provide

think felt and basis. So getting a we to I a more would information back really share that we regular cadence But we on was important. monthly now we would into or look quarterly that typically are

that kind that talking year -- new or now forward. fiscal you wrapping and that we be then about heading are a a And I number XXXX moving the into of would know were more So that's thinking up on monthly stepping really cadence sure. we into quarterly the

Josh Goldberg

Yes.

that going to that. wanted the wanted one cars, just in I to of script. you at make cars. I Just terms at cars. are your you exit didn't right you heard sure at understood have just you entire then I And are that. in though I exiting X,XXX thing X,XXX said on to X,XXX April quarter sure make Even

is going average cars it means second will quarter sure I X,XXX right and above have your make below second the the X,XXX? to very be above that will So be X,XXX that first quarter just possibly probably that wanted I cars. to

Scott Brogi

Yes.

You got it.

Josh Goldberg

as I Because that don't way. you explained it time, first the think Okay. clear it was

Scott Brogi

Yes. Right.

half And good so March, when second March. of of rate in those we say an chunk car on in are of the average a X,XXX cars coming run

kind the the increase the And are in QX. up to of of so But it are not going in we rate those see as for all run seeing definitely once funnel we logistics. there you figured opened of terms the you all out cars

are drivers a And job the compared remain is the increase it you is that higher given days. in to marketing to XX% have the terms going a because those in on are reason But platform, revenue, the that basket we our well, of up leads a think metrics how tells the the or for kind so forward. to sticky driver there have doing platform and we rentals reason specifically, of wanted then about new in we I it XX% past. targeting of above new rental cars So that's to sizes highlight that increase and going better on and

using better going we Facebook are think doing to really why bringing I a damage going in at job think et cetera. that up magic customers I So has good of a customers. perspective, good because They of sticky are expensive from underwriting marketing bills, not highlighting risk drive the drive a am of physical job I drivers. Adwords one kind to be to are done And a point of that and kind of that's then new

the and and really teams exemplary And and of work the so to XX% really fact points the those there. operations growth hard that the doing hard of all are two that number technology marketing all work is product and that

we So number. highlight that's that why

Josh Goldberg

It bigger it rest number sounds year. it the the was of like than a Okay. was

Scott Brogi

continued into the it right. second ramp really Right. And half, ramped first in the to quarter. It

Josh Goldberg

Okay. Congratulations. Great. you guys. Thank

Scott Brogi

Thanks Josh.

Joe Furnari

you Thank Josh.

Operator

am to no back showing this questions the Joe Furnari like I for call I remarks. at turn And further to time. over Mr. would now closing

Joe Furnari

to Well, thank execute for think looking forward which about good, put we to behind now. happy you on everyone continue future XXXX And calls I us for joining plan as right I us. a lot we am the and of XXXX through are people

everybody. thank appreciate And I soon. talk it, you for and will So we on to being you

Operator

that gentlemen, does and conclude for participation. Ladies our you conference today. Thank for your

You disconnect. may now

HC Liquidating (HYREQ) 31 Mar 212020 Q4 Earnings call transcript