HYRE - Earnings call transcript Q1 2021

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the First Quarter 2021 Earnings Call. At this time, all participants' lines are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]. Please be advised that today's conference is being recorded. Instructions]. [Operator like Investor over Relations now today, your the Evans, John and hand would to conference speaker I Corporate Development. sir. you, Thank Please ahead. go

John Evans

you, everyone earnings Thank welcome XXXX and quarter first to conference our call. operator,

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

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

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

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

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

our to you. call to Now I'd the CEO, Thank Joe like over turn Furnari.

Joe Furnari

Great. quarter. John, demand welcome delivery our I business and history. pushed revenue rates, COVID am company a say and everybody. combined record pleased of The vaccination you, loosening the to quarterly had in highest rideshare demand increasing Thank tailwinds higher stable that HyreCar to restrictions,

more We now this results. and stronger, a in efficient is company are reflected our

Our to in million the XXXX. approximately net up XX% increased revenue increased for days up QX in to XX% from the quarter, for $X.X and $X.XX XXX,XXX from rental XXXX million XXX,XXX quarter, of

see to robust continue We driver demand.

XX% the X,XXX up drivers rate. growth saw quarter, car year-over-year record unique new pick platform, our a we a For on

food, customer drivers delivery ride post-COVID continued add our and move include expansion the delivery of and have should on and effect to logistics everyone be are and accelerated Not to to local opportunity as look recovery sizes alcohol, and we adjacent package predominantly plus moving basket now we to delivery, pharma delivery. focus delivery see now And revenue micro lower of environment. look to and additive -- where increasing lanes and share Two-thirds HyreCar to still oriented. the rental is and grocery into service growth Our for food a drivers retention, world. day we COVID just but is starting forward, drove rates our flywheel a having like

remain suggests larger sustainable environment and larger Sourcing economics sustained growth. is a drivers delivery will in vetted Strong supply driver local pools. attractive, our higher environment car a factor creating key demand of a in driver platform supporting

driver over business return help expect said tune In to pandemic. week-over-week the they're gains rideshare. drivers Lyft to to having Uber and $XXX best is rideshare have the they alone to recently from incentives Uber their of delivery, the addition to week increase increasing and both since million said,

rideshare demand expressing are hourly drivers as earnings as Our higher increases well.

us starting able in revenue shot increasing pricing historically, being are gross through driver recovering alternatives, experiencing media vehicle been up reopening the of announced and been half dynamic in model Dynamic $XX, a growing are a $XX opportunity has to car $XX the Combined that on car rate the dealers demand reach So, with heavily demand, the revenue these an and of to of prices side per for as claims we driver volumes fewer $XX and without are our our supply full us combined record control will affecting rest incremental puts we've franchise to take of growth. profit daily have used in rideshare In rental year. changes us and pricing result It to QX implement And day second shortages affiliate demand of of tests, lack normalized surging the covered EBITDA experiencing take daily increased with increasing from car that the XXXX. implement created platform. to and a should strengthen further pickup our prices. from as has new in to rates. driver due of preliminary rate of this reports to a our margin

to five. help branded drive XX, with these innovative AmeriDrive supply aftermarket increased is car leveraging in This retail rollout car XXX clear template partnership with in vehicle That fleet national partnerships we to Holdings. announced seven with locations AmeriDrive XXX announcement and relationships parking of with suppliers markets. services, in to currently the A replicate is announced and financial fleet planning previously we're and nationwide. car, locations new the we are over recon. spaces specialty for Addition chain suppliers. lot with Bank from fleet an with up our operating front, out a AmeriDrive logistics. is vehicle to supplier an additional Cogent On service and enjoying On platform included January higher a for marriage overflow stores from expanded automotive

continue ADR in little the to strong and the further over significantly from believe reopenings average average a success rentals X,XXX of that run ramp expected is months. the XX The that With gone as our vehicle March, next we're and half QX on in partnership through has with grow and a an open steady X,XXX accelerate next into the will I of of over rate trending tailwinds. in AmeriDrive dealer second slated additional We've two state supply to of of toward rate in the year supply the month ADR a May. to XX market run to daily X,XXX quarter back over opportunities weeks. sequentially opened will

scale. of enable We are to onboarding the cars manage partners our actively on to who initiatives for cars working at

up XX,XXX cars, to and gas supply market of a into both by the or end EV alternative fuel want As to XXXX. company, vehicles we the

grow our Our for HyreCar the to partners leading clear vehicle will supplier continue intends market that conversations gig with to be the economy. the make it

In expand. addition to our continue opportunities business, core to incremental revenue

additional we initiatives complement base extensive our opportunities with income have started core As monetize our business model. customer to announced, previously that

partnership revenue basis. with formal Thousands Our now TrueCar consumer customers initiative. of a website, our leading on are major and research non-rental buying engaging our is first monthly a TrueCar automotive with

opportunity are But to from buying the was HyreCar lost profiting previously. auto introducing income are customers. we the We stages of what very now our program a message in early

believe customer traction. valuable opportunities addition of data the revenue our that In is and unlocking from discovering the behavior we're incremental infancy line, in to initiative, HyreCar other streams. gathering of the value from from I still customers buy revenue vehicles. this gain Bottom ACC customer our is and we with to – value, quarter Finance starting last insure our ultimately theme the partner with the initiative from that our of Consumer consistent finance Also Earn-to-Own unlocking launched financial

a have customer. our the Our more if expectation driver to proving program will is Drivers stay days than over that in drivers they accurate. car averaging five milestone times the reach are typical longer, in rental

reporting look the later this year. on more forward to in we So

opportunity interested Another vehicles. to exciting our we incorporate demand reducing by more maximizing their in footprint. EV, educating through while And HyreCar’s with drivers growth earnings continue strategy carbon drivers is onto platform EV electric

As is Lyft carbon objectives in by be previously XXXX. join mentioned, and to goal our their neutral it to Uber

are to zero in EV emission increase These platform benefits initiative, growth. fleet for to of fleets. EV vehicles operators the OEMs their include car the supply In government HyreCar driver the on incentives addition and for and this operators there margins significant incentives encourage

cars primary from see the be OEMs, of at as major an to we the supplier roll-off lines of a EV EV the drivers. assembly As cars forefront, opportunity acceleration rideshare to

to Scott? call to the I'd our turn Officer, Scott to over with the key So Financial now first through us financial elements like some Chief Brogi, that, walk from quarter.

Scott Brogi

Thanks, Joe.

HyreCar. for The XXXX was the one changes of quarter first significant of

us first XXXX. the to days a increased pursue X We $XX off a days, to bigger up XX,XXX run to and run top supply million terms million rental rental valuation million over at million quarter, annualized grow of equity get our a the allow over a rental financing for reserves Rental favorable to rate, X.X rate continue cash opportunities. completed days, and recorded we car us to or set in fiscal from rental days of X.X

the period and X% ending quarter, XX% For December the rental year's sequentially rental increased from days prior over from XXX,XXX XXXX, in XXXX. ending rental XX, days March fourth days to month by XXX,XXX first three XX. the quarter, increased

in $XX increase the account million continue competitive to was of XXst, early margin profit the drive quarter million improvements profit months XX, Net the increasing XXXX the the the the risk average three to gross revenue sequentially cost from The to to prior fees after XX% period, remains to from technology million levels to quarterly XX% quarter XX, is the in higher majority XX% operating should and conditions We XXXX into accelerate. gross platform $X.X a XXXX, to months the to historically. second for the XX% stock-based three to seen expenses $X negative pricing of OpEx and for historically what million million in scoring our have total XXXX. pricing increased net March new $XX Cash million million X% operations new from from to winter quarter ending sales day the compensation $XX from million million XX%, to ended $X.X the expenses going last ended due XXst, improved the the first March $XX supply months share we've XXst, ended improvement quarter $X.X $X.X ended quarter. in $X.XX of million ago million months profit $XX.X more March XXXX through Accordingly, XXst, insurance the for is $X.X some in a XXXX. from This of seen of from same particular totaled daily due in million car the driver technology some from the XXst, Adjusted year challenging to primarily non-cash increase than holding business discussed year-over-year. an XXst, from operations higher $X.XX same northern sequentially pricing previously and reimbursement prior million the on equity key in and in months new March $X and slightly million expenses XXXX. $XX the for changes, $X.X December $X.X goal margin range. the these ago the March million to day million Cash several ended Cost we and elements EBITDA sequentially $X.X from XXXX year to million year invest near-term of and accelerate $X.X tested of year's million $X.XX XXXX million levels our increase shifts then weather per or toward quarter the months XXXX, we've for environment prior period support flagged the backing by combination better ending with revenue XXXX for $XX as an we an XX After from of and the to March and cents XX% improved years, As driver March higher XXXX March progress estimate XX% million million margin in year, XXst, enhancements the of forward December costs prior for to negative pricing goods $X.X insurance rates negative revenue negative as XXXX. to Due ended $X.X of XXXX. ending This negative the for XXXX to per the net XXXX. increased geographies. at or reflect in increase ended cash and December approximately align December drive in XXst, year share incentives. for or primarily and we from XXst, supply XXXX quarter $X.X period ending prior expect $X.X the for sold two per gross share $X.X insurance gross second $XX XXst, from for from Operating three three to of XXst, expenses out negative seasonal three through March and year, $X.X further our grew enacted sales, steady or significant the both several year from data.

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

Joe Furnari

Scott. Thanks,

and growth reopening the second pending of So our into enjoying economy. tailwinds to full summarize, the HyreCar quarter the the is of trajectory carrying

neutral car for our year. deliver EBIT pricing leveraging The future line, to revenue gains and add competitive half Our strategy tight this streams. despite of throughout the seeing environment, on is growth remainder stepping continue which opportunities margin second we're up of markets. they the with the we bottom towards help the And in move year. car to the bright agreed execute deliver the sales current additional We're partners as opportunities availability should us the incremental are to cars

Q&A. So move operator, with to that let us

Operator

[Operator Instructions] Mark Our Street. line first Argento question Lake comes the from of from

is now open. line Your

Mark Argento

quarter. quick ones. Hey strong guys, on couple A congrats a

First dynamic aggressive rolling the on you project? you terms out? be going that pricing, are to talk in could And pricing how of then about

Joe Furnari

the calling in Yes, giving question absolutely. Thanks Mark here. for and

of looking and driver accurately last reflects We're -- out the last a applying to current think the couple accumulated at rolled out, the that doing that data the With over then a of the that geographies, years, we're matrix we've we had underwriting risk that risk things. over that coming pricing segment. dynamic we've with leads we pricing that and five

demand two, then we've that some And is seen some there. number those enabling a And increased demand raise That's we competition little real from bit. given upside just an So, the see number that of one. increased off, fallen is to us leads. prices

how that's So, maybe in kind -- it. I of add there. Scott, think about

Scott Brogi

then that. went lot and to actually the that a in analysis out Yes, went I there. add on after that, live with agree completely sensitivities ahead of with just we wanted April And doing

come that's So, being as online. as moved new now, we've reflected already renewals into May,

pretty that to you're start forward see through day. that our balance going dramatic contribution the XXXX, on impact moving So, per to really of that pricing have a

Mark Argento

something that platform implemented is the you market-by-market? that And are or you've doing across guys

Scott Brogi

to in the with impact We recently forward tested a few markets, of honestly, the the first well gauge to both in other elements driver as pricing. Mark, and some the changes went fee then as

gone So, effective that nationwide. has

Joe Furnari

of that levers to we're the Yes, out. economics unit pulling like and point within fees, Scott's are multiple there

geos. So, we're depending the playing them, different with on

Mark Argento

for helpful. last one that's then Great, And just me.

see terms the you rest how of the you Thanks. In partnership, and where the vehicles and first tables that of AmeriDrive tranche of uptake of year? of the kind in talk are onboarding terms of that about in cars maybe throughout

Joe Furnari

about on They're rate February. had that the Yes, I spoken we in run that. see still

of out launching and I got script, lot figured we're the want. as a you geography the as looking kind start think mentioned of in we next bugs at the

top So really, in really template our start that, established, think because about probably to I that's excited that replicate geos. really can we XX that a we've

with, around the AmeriDrive and being that has to really partner along all going including Cogein that exciting to knew they to players National were out chains. partner. thought the So, we retailer a affiliate of It’s the solid be, going ended there, and it's see roll that really that are they be to were it going up be we

really it's exciting. yeah, So,

a which is launching moving new deal. on we're to X, So, Phase

Mark Argento

guys. thanks, Great,

Joe Furnari

Thanks Mark.

Scott Brogi

Thanks Mark.

Operator

question Grondahl the line comes from Northland Mike of next from Our Securities.

now open. line Your is

Mike Grondahl

Hey, A questions guys, couple for congratulations. me.

of you think I off, March, And now, kind First projecting May, average said X,XXX X,XXX. rentals. daily in you averaged you're

So a XXXX? detail the that Is end we you there? a meant talking more can little of to the you describe If see bit the could managers what that that provide of of lift. on kind of fleet kind XX,XXX kind at can you you there? Is get based you're you cars feel by goal? Joe,

Joe Furnari

yeah. Sure,

So, in the left what see, in the of market cars with side, that, nationwide those we're the see I about to is cars the market title people coming demand this And firm. an of there's in. ridership kind reduce have competition there's back you as the XX,XXX with that opportunity now right to, from XX,XXX talking the add

that that partners we're do to that to are -- want all I So, But those say on, the of that that's imply the having to. and are want that I don't conversations talking we're coming like with guidance.

looking we're program, centre, the so, the to technology support into technology, of added. service capacity call we've the building customer all that And by our that has

kind what that's -- what so, saying of XX,XXX when opportunity. that's I'm we're talking about And

Mike Grondahl

four Yes, that it. sitting Got where right it. it's Got you're times because basically now.

lot a there's of So growth potential.

Joe Furnari

have Yes. we And right front our firm. we're what what in with that's of to -- with us target. going That's now

Mike Grondahl

of in now. That's right you front

on Okay. there $XX are or Yes. our you're roll into models? to just pricing, now, a that Are $XX, there And you'll X? who’s car saying July hire day. then, the When the you do How be there? we

Joe Furnari

starting of into mean, new introduced April, right, Yeah, beginning QX. I it rental gets a in

So you'll move that into of mean, second back half quarter, start as really which next point will I of to think, to I more weighted your week, the see the and you -- effect. start more

actually sooner a might it that. than bit think little I So, be

of Mike? that it longer a reasonably months. XXX% Does XXXX. QX. be few significant there's in the impact help, yes, actually out three you're And renters half to -- for But So full there basically for might the see should than going to look, a second that second rent

Mike Grondahl

really it's sounds Yes, It it quick. coming does. like

Joe Furnari

Yes. Yes.

Mike Grondahl

can into Is point, phase benefit? gross decreased a getting of think -- margin XX% translate we as and sort per the is big How that gross marketing booking do decrease margin, that You of think, XX%. driver cost guys there a in, I or a way a through bullet have we boarded? a

Joe Furnari

more GP It's an of a necessarily benefit, benefit. OpEx Not right?

Scott is convey drivers And that's and platform what chime my we telling have less I I see more too. there, job organically. starting so, perspective think targeting in that, from -- on. better coming onto at coming our you're you There's are and of think You can perspective, a have to to people Like, we're couple tailwinds my a leads there more more is maybe you don't what and and wanted doing competition. right?

presence higher partners. have a You -- an elevated TNC our with

delivery. You for have renting less cars people

So there's a lot we're of then, good And coming on doing the a job flip things kind leads extra driving really those of converting them. of side, the through. on

And conversion drivers a ultimately increase the through rates, in leads, conversion revenue seeing that to seeing you're so, in with drives increase new the also of platform. you're unique which

So that's of that. how I think

Mike Grondahl

think at Got At X,XXX attention? like until all cars, Uber of What do to you you up peer cars, it. what X,XXX point let's from X,XXX then these to and and need now Lyft’s May, sounds And in peer you you say, to to get between stuck guys cars level as lastly, the cars cars. gosh, maybe oh, commercial And the were my XX,XXX got kind be recently, do it HyreCar's went model. talk? they

Joe Furnari

question. good really a That's

have I think now. everybody's we that attention

manufacturers, of a deal. billion, around branding -- deal, groups and -- -- all company, enables OEMs that larger the $X.XX is to dealer a you're look you quality other, the With these also HyreCar just establishing not TNCs partnerships. creates a AmeriDrive you're but brand revenue, and and which And it have a public it say, at TrueCar alternative only

partnerships. that these that attention I point. real we So And some everybody's have is equity at established this think through brand getting we've

Scott Brogi

I agree Yes. that. with definitely

don't of of driving autonomous have And call one think down this road that and I get that more week both supply, new I Lyft’s partner is solution of coming that, right. have internally anymore, I they're themes now to the the got divested now ways Uber earnings last quarterly out think, because their divisions. open to thinking to car want they about we

seem to side on EV a more particular, think be I lot in So they moving quickly. the

us. So that's very exciting for

Mike Grondahl

jump back I'll Thanks. queue. guys. in Great,

Operator

the next Tom from Our line comes from Davidson. D.A. of question White

now is line Your open.

Unidentified Analyst

Congrats question Hi, one If Travis have is This follow great one I everyone. on I'll [ph] a quarter. and may, for Robertson Tom. on up.

the last recently, first, what Can Uber for investing that earnings Lyft a And of business? that, talked and to be growing And happened week. that. how supply. ensure talked competitors? means benefit So supply you And we about able talk have like your your about that vehicle guys it's any you really then, their after bit I about that in they a instead might follow-up really this, drivers from

Scott Brogi

Good question.

back driven have This pre-IPO, driving if So they have driver of like was XXXX, through done Uber how two-pronged XXXX, a XXXX, back where they've on Lyft, you and affiliate. kind it, they look both, incentives, really how they in were approach.

it to another And refers very week for both or I I piece Uber Lyft, And were running they And really last listening was then, the being those strong probably getting be their that to reinstituting when programs. as drivers partners certain driver the us. well. programs. hitting affiliate for incentives. sounds were anticipate were a number second driver a their affiliate affiliate think in were signing they going or So were up. affiliate they the money was is those one right of We partner And bonuses they to that driver like, calls for giving up. drivers signing good really, that

revenue umbrella so just drives that for that under under umbrella And gp is alternative I us, XXgp pretty margins margin. the being up to about and comfortable why the a Scott XX% all profit and are gross the

that. So on we're planning doing that's how

Unidentified Analyst

new inventories remainder this up channel thoughts how just year? we pay this your about Awesome. you've the And likelihood a through like, of share wondering, car later grow, was for few And of maybe think then, year. that follow-up, my I to just the of how should on ramping

Scott Brogi

announcement for cars, available know to a they at ramp. the from a from scale. us. buy to perspective, the are ramp. They going so financing And to game And how they yeah, AmeriDrive Yeah, have brand is changing that really

back very So talking our growth or the the to to, half we're talking year. but announcements, marketplace. sums quickly. incremental about that of they're of be will supply partners to that's going those four large through Along future scale I And want also believe, large, other with, be lump onto three also the partners the that

part talking of cars about getting I'm so cars, why he comfortable have. that's we're that's XX,XXX because we together. where the added that from narrative And fleet those all the currently That's suppliers

in deals is So it supply doesn't the we with include that going the future to that come don't yet. know about

we're how grow. looking that's So to

I our recently new to they speeding managers, a aid road on think owners, quickly. we're to market going those back in for support cars the White-glove so by provide process the out our claims executives account get can vehicle account that increasing to rolled in up service, TPA really

And, channels also channels to some an see exciting growth piece. So as up the car organic supply and really ramping that's the of well. through those

this So ended it, rest year the and XXXX. of that pronged attacking approach is three throughout we're how that

Unidentified Analyst

my taking for thanks Great, question.

Scott Brogi

Yeah.

Operator

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

open. is line Your now

Albert Kim

right, All for talking Albert is this Jack.

or First quarter start that the forward? any about happening, and new assumption see Do what’s the rental changes I of believe $XX, taking all, going my value great congrats question. just pricing. thanks for on to historically changes want trends fee, to with to the the it weekly was on like average any I you a

Scott Brogi

is platform by to car I to have you owner. Yeah, -- our you actually the the remember on set rate think daily got that rental

get a that a you're So fee. owner And through quoting, of we the driver that percentage have $XX, both we get or insurance a we then fee an fee. $XX and that an

let's changes you $XX. the of rent. revenue total range out gross increasing net to pricing $XX day take, rolled we when it $XX out a that Well, to So three more to a just we $XX. that net see net basically, April $XX XXXX, like those historically in a elements is that of revenue transaction or with $XX HyreCar at out from $XX call

higher So Joe's increase it's talking a about the been revenue And line the QX XXXX. revenue give increase us kind of a pricing that the along of know, on significant impact with pretty sense? double and will basis. Does that you that net make on balance volumes through in a net

Albert Kim

Thank was you. very guess, question helpful. I Yeah, And on utilization for level. vehicle me would that the be another

growth there's has And X% of in the cars. impacted, utilization I believe So like I rate of a was number like the huge if the wondering that typically before?

Joe Furnari

question. good Yeah,

of strategy see is of part commercial higher the and to why you moving towards those tend we're in which fleets, commercial So, utilization. it's

you know, we're So peer high XX% low our commercial those in little seeing to in think in fleets, utilizations it's then lower. bit peer I And a XX%, fleets. the us

second about an as It's absolute half. up get -- or averages out kind pretty it typically into you're of as move we the meaningful. really translate utilization. to, And -- XX% nets really seeing next the So But it's forward in It's normalize. not really pretty to necessarily to shift more start like where out rates revenue. value. not think move we're we towards XX%, to doesn't see way That's That's it that's into tick consistent. as utilization the higher a a I we fleet, more going

direct a isn't there correlation. others, For

Albert Kim

Okay. Thank follow up on the Thank And helpful. the questions quarter. and you you. was for me. very congrats That again,

Joe Furnari

Thank you.

Operator

Securities. from the comes question next from line Mike of Our Grondahl Northland

Your now line is open.

Mike Grondahl

unique Hey guys, or guys referral your fee? if getting X,XXX just that looking get drivers you I with customer to the I relationship, of kind for guys only the mean, are up sending in lead quarter had follow you were that a buys over? you you get who do think that March new Do just TrueCar a car, for cars.

two So car? that works kind curious I'm how just with of

Joe Furnari

Right.

that's driver have is independent that Phase they and with X referral -- and when they that Phase access X. X Phase joint we a dealerships, And some refer both and there's fee. is X, getting do franchise hopefully cross then marketing, XX,XXX the when we TrueCar the So when the with get to Phase drivers purchase vehicle, marketing them.

So out were that losing a were right. of that supply monetizing we well effect car. drivers creating has the as going and anyway, dual as They a more buying

the on that end. back monetizing we're now so And

we I that relatively think March. March out I'll with new. quarter, have -- -- Last February, like was was that started

and ramping started February really we March. So up

I so affiliate see to So talk initiatives the that the of QX, numbers through half grow in have second and we'll some around I other I'll I'm think and how out about and more alternative have initiative the them going in year. we break of revenue and those

Mike Grondahl

I'm broke Joe, was but hey, seconds? And You you said what of for you Stage like access then about X? sorry, kind I something XX,XXX. lost In up, XX

Joe Furnari

Yeah.

access, sources TrueCar agreement, services dealerships, and HyreCar joint leads joint gain gains currently to XX,XXX agreement, we marketing to. that have we So access the

X. So piece of Phase that's the exciting

Mike Grondahl

Got it.

Joe Furnari

that of organically. well. really with drives that's with along as we're really I'm specialty fleet dealing ramp started Because here, up excited that organic for fleet, kind larger us to channels supply about the operators why And

Mike Grondahl

And just hey, -- question. my then Sure. last

where's that it mentioned next program? it consumer in -- Is but quarter Where five incredible? do mean, XX of times can the kind drivers of at? many was just with that Is XXX a or or go? too, you that average your in think that's length rental. finance I ACC like roughly and the five that retention too times, program Earn-to-Own that early how mention, to drivers in is You are

Joe Furnari

don't We very up. So I to have grow. really many see this signed dealerships starting

XX% the our But drivers, XX%, up. where -- of of chunk are benefit a about would type driver population big have percentage program our We so term population of driver small this them. a signed or longer

right it So we're now. running

drivers these on. have We

as program mean right about in about So looking how is for driver. I'm drivers that now XX days are doing averaging days, XX math, average that I'm at

and walk car even I'm then once times. away because vehicle the where applies And that days, the that car. payment for you've that's growing the purchase to five we XXX getting program in So is with been you a the down further days, XXX see

-- there to quarter, going and have to enough So give I going can yes, and we're out is we're I to yeah, details think up then viable, data to will next I you it going say then. -- ramp the all this move really we're

Mike Grondahl

you. Sounds good. Thank

Joe Furnari

Yeah.

Operator

[indiscernible]. Our from next Keith of from question the comes Hambrick line

line is open. now Your

Unidentified Analyst

much for the Hi. It's Keith question. Hambrick. Thank you taking very

think should we the start is million million What's investors So when annually. think lead that? like always these should increases, roughly rate, about about cars X,XXX you annualized. you've every guys are historically we How thinking Every X,XXX is XX,XXX? $XX price about you to $X cars talking new

Scott Brogi

Scott. Yeah, hey, KC, it's

or that and risk think I it's on fee dependent piece, right. -- we're good risk parts the additional insurance within risk XX% it's a to it's about day that But increase think a it, component, per be drivers some probably safe mix pools. going has upside assume basic and that's of the There's component, to I the that to think some pretty way that driver least a contribution. it's a at -- to different to adjustment we’re it,

going to from better per yeah, than hopefully, million good that. that's a think basic little do a $X $XX way million we cars, about So, X,XXX to bit And it. can

Unidentified Analyst

the on just for we better wheel we longer, bringing cars if are if think you're so and by -- of who Lyft. that at look the same side using cars drivers the drivers have one being that and then large fleet providers bigger time? provided So you gets is knowing whole are or like the incentivized on these getting spins And faster better how you're ecosystem, getting Uber these who

Scott Brogi

a Yeah, the supply think bit a being more selective, all little I I right? car certainly, it's we've definitely seen mean, stories. there's Because issue,

people around as one So all a about vacation driving vacation passed on shortage U-Hauls about summer of Brian our or think there. around right? plans out something, there's we Hawaii vehicles, I think

us part the part of and of so then it's on just that, data And risk side. better reflecting

suppliers see our car better lot and So that process, driver we're car drivers. in information better which that car them, of or providing is that owners is part of a value vetting the the higher

So is things you said. together, coming I it those think as yeah,

Unidentified Analyst

Okay, and last then question.

I end even depending over top, X,XXX little if I'm run you now, renting a at an the at forward on $XX cars through you bit if this around going around we you step model annualized million, about XX,XXX million mean, thing, using. you're a more $XX rate, million break operating on if right cars. that's annualizing, cars massive $XXX have And obviously, thinking some So take then the leverage have annualized many XXXX, of how as of you're to

some at going I at some million and have when $XXX So you're so right you're cap, I the to market there now. and scale look profitability. mean, trading

Is going a the -- and grow doing am trading that to XXX% at for revenue. breaking with revenues that's you're one-time you're So profitability, right? trading through I company math,

Scott Brogi

Yeah, so. I think Yeah.

Joe Furnari

right. about sounds That

Unidentified Analyst

right. All

cheek. Thanks very much. Sounds

Scott Brogi

KC Thanks

Joe Furnari

Thanks KC

Unidentified Analyst

you. Thank Great work.

Operator

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

open. now line Your

Josh Goldberg

Joe How Hey, doing? you are It’s Scott. and Josh Goldberg.

Joe Furnari

How Josh. Good about you?

Scott Brogi

Hi Josh.

Josh Goldberg

Good.

wheels here. to Question think the I about starting roll are added, XX%. the new you that drivers

using grow well. Your your in supply balance drivers, the sheet car that you is traffic balance somehow sheet maybe increase new can acquisition stronger to your on as as would now. side both me well as It to to lean seem

little So forward? can going sides can how on pick you both a much talk up you about

Joe Furnari

Yeah, it’s good question.

a as accelerate – to gone the of XX,XXX about there's kind we're So our even that month of have did we the down, And think seeing perspective, April, of costs things. the acquisition marketing from in I in lead budget leads. side really

into on Organic XX us the are chiming that And side, into over think and I you're seeing leaning so side, guys we're that that'll side. fleet in the right be seeing where those now is four those well. QX. on we're also on people May leveraging kind traffic individuals from so organic kind supply think, I team as of interest apparent guys kind way with to mini then interest of guys, of so more XX,XXX, we seeing to I more then you're and organic are the the define cars, marketing organic more the some and from spending

we're targeting of and thinking So kind about are top initiatives leaning how it. in of them commercial on

Josh Goldberg

of cars? in Okay, and more on terms the getting supply side,

Joe Furnari

And Yeah. that….

Josh Goldberg

balance all… sheet at

Joe Furnari

Yeah, absolutely.

centre the a those, traffic. that a call managers onto like, So platform. we're know, account organic little is relying vehicles And what on into then, up spending the – and way – you supply convert on and organic way to side that the our traffic bit the leveraging they're

And coming because, opportunity marketing spending, so spending you're competition. leading cars there's and and the you more you also going growth into and to going into you’re because level. then see more to coming onto And you're to know, you're on, more that are drivers see also see – going less more it, but

how kind that's of I'm it. at So looking

Josh Goldberg

that online. of to of I with people back such at I are old kind have cars, Have now? point, seen hard you used been customers drivers you supply How think would might site this a and gauge your able of reactivation that old the happy that of mean, happen any database come see you that of yet?

Joe Furnari

A couple of aspects to that.

million that. that So in the TrueCar like for certainly drivers and affiliate mining partnerships we are we X stuff plus database the revenue, have the the

to have then an always of monetizing, So then that gotten And those to – monetizing in. into car there's and the call And retargeting rates. aspect and a come that's one drivers to leads. need we also reconversion back them

different time, weeks, and reconversion two through XX XX, have looking back So And days, rates XX. that's looking back looking looking back market… at you

Josh Goldberg

data the Has in are that come of historically now? any because more data or economy. Like, happened? new somebody like what's sooner, you new months been there on on and some there three last more the reactivation seeing acceleration Has back going will in has of what four

Joe Furnari

operational lot kind with the reengineering know, things has things. of a staying flat, it's we're doing side – it's You of you of know, of

to had so cetera. side, we’re individuals, outside moving, that some driver you closers centre, we working converting supply to – dealerships, on account know, historically, just we're seen over So call of managers moving are moving et some the converting over rolls we're and what

piece and on call the And side centre to relying the really so the of – people. on we're also more marketing marketing drivers retarget

driven to of for -- - not people car now. I'm going getting seeing right big XX days not less like now. -I'm out reconversions see, not year. really the us kick-up where flat rest in not to or see But it's it's a have the and that So for don't for who sure we're basically I where pan are

Josh Goldberg

Okay.

Scott Brogi

potentially talk if about for investors. out, they're valuable that But numbers those I think that, if that's maybe see something giving we that that we can

let go and them dig So into from there. me

Josh Goldberg

they'll new guess, Okay. there's, And have a get as sounds you it XX X probably with the announcement a so how growth you the And days, excitement, think, that, XX or third leg? much. there can second just than quarter? fairly And daily in get so quarter. can on on to What's going revenue people here to going is other in week-after-week, like obviously rate numbers that to really going the that quarter. average to going tell number fourth next guiding on the or of to things up people you're XX to I the from obviously June? you're But and AmeriDrive, us from come then healthy cars Is higher and Scott, by progress get be second will we cars the The – come to idea Thanks is to more million the exit where top what more pretty a pricing. take up sequentially there. you probably more do XX, your drive platform to I today

Scott Brogi

Yes, the absolutely, question. Thanks for Josh. again

the on there volume certainly equation team is and think, I side focused that. is the of the entire

first is of step things. the on pricing side this of think, kind I a

getting a things side on I the more our driver lot lot think do a mobile into of job data vehicles better of key get we're the that out our vetting those we're to trying a we're sources so of better to getting partners. now information. always And

we there's think out still what again that pretty April some were, a had room some and comfortable touched There's Joe we were the elements rolled a bit other These more there. yet relationship. significant I really, the other that.. to know, on we've done felt really And So things go cyber-side in I of call I revenue then, in don't announced sources, that think his it few formally testing. some ancillary TrueCar

Josh Goldberg

that X% at at -- not to more expecting to of revenue than are you best be right? this point, X% But

Scott Brogi

contributors. either of No. I as don't things huge those see think we

to TrueCar go has the potential think I there. relationship the

will from the share pricing and that So continue to adjustments lion's be of up. growth volume

Josh Goldberg

All right.

great. Okay, Thanks, guys

Scott Brogi

Already. Thanks, Josh.

Operator

Furnari back Joe this to for time, to his the At over would like remarks. hand I closing conference now

Joe Furnari

the Really and next think, In us all words forward starting Great. of, look to everyone. Josh, appreciate operator. the questions catching I the Thank everybody everybody. to right? with Appreciate up wheels sticking you, it turn. are Thanks. That's Appreciate quarter.

Operator

Ladies you now disconnect. and gentlemen, may

HC Liquidating (HYREQ) 14 May 212021 Q1 Earnings call transcript