HYRE - Earnings call transcript Q1 2022

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Operator

Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to the HyreCar Inc. 2022 First Quarter Conference Call.

During today’s presentation all parties will be in a listen-only mode. is conference this note being recorded. Please

Bock. market presentation, [Operator Instructions] the call issued of the our XXXX. accompanying conference questions. for was the to Investor HyreCar's De Scott ahead. CORE the close Joe company's the Arnold open be firm. CFO, at CEO, May turn Please The now is President, Brian call conference of XX, will today and On will this Following today, earnings release press the Relations go Allen; Furnari; Serge I call over IR,

Scott Arnold

everyone, operator, and HyreCar's you, conference Thank XXXX call. welcome, to first quarter

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

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

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

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

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

like to it over would I to CEO. Furnari, Joe Now turn

Joseph Furnari

Scott new I demand the supply market, to report car HyreCar based available XXXX. in car-share saw and had everybody. gig maintained we am XXXX a you, in from year and to despite support platform elevated the Thank record strong strong off Great. start welcome to the on persistently services owner that pleased a also building a momentum accounts. increase in with prices substantial We used

continued only rideshare for We States supplies continues and and of company month revenue to uniquely anticipated strongest for this as to increasing with Uber such drive for past Lyft. days sourcing X% gig are service used line observed remains initiatives, car and and the attributed for driven X% decrease HyreCar’s shift dedicated grew United to level we as prices in quarter. with and demand of now ADRs a increase strongest a delivery and gig the a to sign-ups the QX. bookings driver HyreCar a cover April XX% to in in type to car build million in tailwinds by quarter-over-quarter higher the to platforms mobility in versus strong was levels. Driver shortages attributed the increasing demand consumer growth as rental these help tailwind move platforms drivers rideshare and quarter anticipated HyreCar provider year-over-year Uber, $X.X total revenue be the demand by the demand by returns as delivery positioned delivery in HyreCar vehicles of our higher percentage year-over-year and platforms, ecosystem. platform car rental pre-pandemic is observed Reflecting continue drivers saw to with from momentum continue in we has HyreCar’s days warehouse We to to through as May. delivery anticipate continued cars grow into services Driver revenue off, flow for our and that demand macro XX% also history March services for rideshare. driver

complete improved make by decreasing operations by it to to Our faster verification owners supply-related process. time and initiatives for year-over-year significantly to driven with the XX% listing easier median

rates end, operate will all anticipated the a we steady fully fleet take most platform. business the have of line these by supply owner announce to success of it for to we’ve growing We in make record and March our advantage driver-friendly organic set continue able platform tailwinds making of of stabilizing committed credit demand HyreCar maintained capacity an HyreCar We XXXX. the reasons. utilization growth into quarter Number Because car Number To see systems. April drivers. in trend three, tailing more the first in on on And into leveraged be coming powered from we selection technology May. new organic for for in our verification of as one, in partners, cars for reducing anticipate to to will we our our and the of cars, share. even also prices for additional QX that our easier days performance ecosystem of increases a a with up the building strong slightly platform seem rental the by half pivotal and vehicles car QX the percentage vehicles. a used markets. owners platform processes momentum to from months, we technology features two, to number our that source excited same several to over larger be system-wide and make quality number in to reversal are improved XX% period it warehousing continue trends. partners to as of our we With be the We’ve building supplied profitable high In for do of

solution market, visibility flight forward business look to for be management the sharing biggest and for HyreCar’s upcoming camera are owner details transparency that, XXXX. trust rideshare us delivery provide enhance to on we and initiative citations increased that get QX. beta a net expected of implementing our on new to And and most an core we Some an what Number the impact for of pickups; enhance let warehouse initiatives of scalability management increase parking owners, of to are specific operational bring finally, success and points to of we launch the the further two, in implementing supply. me example in automated to HyreCar’s three, confidence significant pin and record-setting and customer violations. will chat should automated verification of our absorb allow initiatives these that and close call. in vehicle These to in include; as XXXX, one citation in line, securing With the measures the expand order number Brian will teams, initiatives for to I Allan support are increase the

Brian Allan

Thank you, Joe.

update projects As providing to we on I’d by underway. growth-related Joe have like our an mentioned, EV initiatives. many start

total on number higher in EVs greater $XX delivery willingness of and two of more vehicles higher rideshare into supply year driver cars marketplace paired equaling of rates the number total representing XXXX $XX of platform but focus options of availability platforms. quality priority. address made continued daily of XXXX from gain April versus due period. quarter high to fully increasing year-over-year in XX% for from all electric hybrid quarter platform EV electric the these vehicles electric per in driver have number the prices. electric with fourth not has XX% available. efficient increased base XX% with rates rentals demand only EV and our on prices growing pay fourth increased for has of The have a also quarter to to Record our the higher XXXX with this momentum to and payouts We significantly over of continued daily hybrid and vehicles on gas increase first reflecting rentals to EV on rentals total quarter for and gas to of cars the EVs these of the that Average the

partnership, pleased We are we has EVs acquire with allowed EV particularly easily owners more the which our progress to HyreCar Free our platform. with have the Spring made toward

of during revenue the vehicle increasing adoption, all while XX% availability We number As more anticipate quarter. will program significant and driving generate that first evidence EV across orders growth higher combined this the this April through in country retention. platform was expand orders the higher than of

increase to with to continue during longer progressive to our Here quarter’s periods. the last vehicle providing dealers Pay for mentioned we As an Buy engage supply call, Here drivers with rent incentive while earnings

and We as are dealers initiative most in our the partnering plan this select with to launch markets expand we program. active validate to

operational to other services platform. three and for periods months compare versus In other more from delivery the to strategic unique trend have platforms HyreCars, to in rental addition, to have HyreCar days favorably an the revenue average car a on we inventory owners lower consistent platforms and share weeks supply, through unexpected to increase competitive also typically their and owners. resulting cost in our observed share a longer vehicle and HyreCar’s rideshare rental periods one that greater advantage of initiatives for shifting as our

average to In fact, one two in rental period three weeks. the was quarter

tickets from about pin As based points. a on Joe launched proactively citations feature managing for mentioned, community, our parking their we beta and greatest owner recently feedback

to applications for owners for faster communication unabated have easier launched also driver made their approve and it We vehicles. that

recognize pilot. to to drive enhancements drivers continue smaller XX% operators, presence. HyreCar and charges part customer loyalty larger medium self-service This grow multi-location we have market rental their cars that quarter. a and greater ultimately internal We for a our allows to will successful invoice management in efficiency operators a operators as costs. for and feature operators addition, that our drove operating the market incentive days In profitability. fleets increasing innovative offering fleet our an our while business first whose with visibility of our retention HyreCar’s To from and solution out reducing feature support of fleet provides and platform over owners increase following large scalability, These will large increase by self-service thus miscellaneous capabilities satisfaction expanded rolled we owners across piloting capabilities directly

Finally, I’d for provide on like vehicle a the market near-term. to supply outlook

for a peak it based have Manheim are Car workers we soften seen these gradually making from purchase car January falling prices up XXXX gig difficult While extremely Used XX% Pricing for potential prices from a vehicle. April to months, Index three consecutive on still

gig available opportunity today. out of options participate partners which provides priced believe who be rideshare provides as increases to pandemic. platform the supply market recovers with Fortunately, of in vehicle our the may marketplace the the delivery drivers drivers, the delivery and and/or rideshare HyreCar’s we our from country benefits and

So us I’d to the Financial our Chief with Bock to first over some of highlights now Serge like the through the that, key from Serge? turn to financial quarter. Officer De walk call

Serge De Bock

environment has supply Joe those levels and performed you, a maintaining Brian. Thank vehicle vehicle turbulent inventory in Overall, HyreCar constraints. despite

to quarter a We operating in continue cash a for expectations. the burn third leading in expenditures line reduce with row to

of the was compared First, the a in increase day supply and and quarter vehicle inventory quarter let’s first prior with volume despite XXXX rental that relatively address rental days XXX,XXX year-over-year QX basis volume. X% the conditions. from Rental the days of for flat per XXXX

driver XX% can on on and hour for split for driver. XX continues This strong with between a for or to car for of to validate HyreCar Uber’s across XX% most platform average, rent be fleet a the day the opportunity plus excess vehicles $XX demand make rate cars per driver vast traffic the A leading of a the demand earnings vehicle utilization Uber more as Our strong HyreCar majority to and economics fluctuate driver’s XX highlighted call. owner indicating on markets recent our hours success. attractive $XX platform between and per for in continues driving continue

to $XX pricing and in favorable growth year million, in by QX car rates and grew from; same year-over-year in boosted days XX between which QX favorable delta XX% $X.X QX revenue Daily revenue, $X.X divided rental to constrained a enhancements daily XXXX supply. year-over-year $XX.X trending relatively million trend highest points average in net the and revenue growth which by accelerated is in million deliver previous flat $XX.X from $XX market to volume in The risk of HyreCar’s in so increase represents stem currently quarter of quarter. days pricing, from revenue the net quarter revenue Revenue QX organically rental and rental of Turning of including far. increasing increased million rental XXXX. over is will and control X% financials, dynamic last continues to net to reflecting

We trends in further expect optimization this resources market with analytics daily continued of grow dynamic hired current average and revenue pricing based XXXX to additional model on our quarter.

cost XX% to continued due and from margin hitting On experienced in for in inflation as car rental side, accident season, trends more QX a per parts the winter XX% gross of in seasonal well vehicles. downturn XXXX slight day as QX the

these We have more past focusing appropriate three by inflationary than on over cost risk offset trends better processes quarters control, the pricing. and

risk able the pull most profitability QX retention QX impacting and those and Meanwhile, in drivers. satisfaction to in the We positively future. of control maintained expect to profitable levers we continue of customer gains balancing being have

and XXXX, of QX lowest expenses last Compared based $X.X margins the ongoing pass $X.X million agreements operating XX%. with totaled driver of are we and screening XX% or $X operating QX million $X.X million to year basis, Looking of on expenses On from $X.X cash non-growth end with targeting improved a initiatives reduced our QX by cumulatively ahead, a close our QX expenditures our history. to target to continued products, savings insurance expected QX The a claims to we XXXX, year. close drivers the through million in we no renegotiating we than $X reaching cash target quarter reduced are approximately of of incentive earlier expenses. on million XXXX focus still achieved to decrease of XXXX. million gross reducing Operating QX in of and the on profiles related by for over in of

improvement at in down million loss the adjusted from $X.X growth of cost and in at the a cash million $X.X resulted This expenditure and specifically our Our million of a QX maintaining $X.X EBITDA same QX substantially infrastructure XXXX. managing in gains support operating insurance time made in loss continuous most QX scale. maintained to a at sufficient revenue, loss while from

adjusted expenditure positive and gains. increased trends of continuing EBITDA through beyond maintaining QX economies expect gross especially with growth, scale We through margins in XXXX of top-line and operating

we aiming at end of optimize next Our are with support that XXXX financing continue to $XX structure. cash in the investment as and our fleet was larger cost position in million QX growth quarter pursue opportunity the and strengthen our conjunction to position our and we in for operators

for margin of XXXX with Looking organic as revenue renewed quarter, ahead, $XX.X QX seasonal as continued and million we improved and increased improvements. have between growth entered patterns forecast the and from cost and $XX.X well million pricing

at We X,XXX operating to point $X cars current around estimated platform. breakeven expenditure X,XXX the rented flow our are on maintain with million cash cash still between aiming our and

million Our projected structure. based runrate $XX and cost between $XX revenue on million our

final Our reach Joe remains for XXXX the primary to car to rapidly remarks. stimulate on as financial objectives possible. growth in top-line supply and cash to break even as drive flow Back platform

Joseph Furnari

had Serge. we the growing growth increasing to quarter. strong year year-over-year Financial enter the and a momentum with And reflected and supply. Thanks, start strong as to with summarize, significant demand second consistent HyreCar

for we marketplace and operating innovative While continue and increasing out owners products expenses to both drivers liquidity, while increase roll to reducing customer and satisfaction. features

demand As the from supply you, we with driver the order time expected excited are Thank join the increase call. everyone satisfy gig XXXX, in to rest us increase for for look in to to of we demand, services. taking especially our forward substantially to

update please move that, the We we operator, will making. let us progress look periodically to shareholders to our Q&A. are on With

Operator

first Lake our comes from question from And Instructions] Street. [Operator Argento Mark

Mark Argento

Nice guys. Hey quarter.

One, on little gross quick just the I a levels from the year, line. of kind it’s wanted drivers of the saw last some ones margin below we the I key touch are line? know just levers up to maybe what from of Just what QX, margin key on in us remind me. gross bit of a couple still but nicely

Serge De Bock

Mark. Absolutely, hi,

in expense an winter obviously, the typical and to claims is line, day and actually in margin insurance rental per expenditures very in accidents ten industry and it cost, year, away over the gross that increase seen quarter, season, set have back we the in and in take improve insurance margin gross the biggest QX managed what quarters two to we’ve a bit points. that also does improvement margin last not of due you but us then the On the our the premium insurance was by

we’ve an above mostly impact more and I operate. seasonal XX% to track exiting our this processes the want the cost pricing a parts our think our and on and trend vehicles to car aim of seasonal for able that So, that one, be actions offset year highlight margin to so gross in to we this and But and far margin an is increase it’s are price a industry has side will the One trend. I to other and able also on thing our in selection is, by still risk drivers. that this seen we well of being improve to

Mark Argento

not about revenue? bit That’s helpful. should and like rely for bit maybe little up the on could activity much on it on we of we you – ARPU the basis, when turning so you actually platform rental number look And days see could platform QX, are on have talk then, tick the rental a just a overall about for sequentially then, cars days a up little to and down the year-over-year X%

Joseph Furnari

are we and/or are marketplace. off And in leveling on the the prices to starting Brian some think But touch categories. little what’s seeing a coming shoots green car had in you some a interesting I down can it. bit Yeah, macro high and a used on a basis, marketplace level, at see car

XX accounts business with to going. for have some have are and essentially enabling kind and in we know HyreCar pricing is where cars our our able out to that so, fleet that And to purchase top there stability operators we of

know really has of those close major been suppliers our on talking I and Brian to So, platform. all XX to

So, that? you Brian, do think about what

Brian Allan

in to you get of inventory larger wallet Joe. opportunity of agree that’s to Well, I referred is, out actually The it there. the I a we have share already first, opportunity an with remarks and have prepared

ecosystem already markets, our though that periods part uniqueness our certain other cars shift and in for time. maybe from and that of most we surprising even currently operators the are platforms renters get can rent and are in market nice So, supply HyreCar tight we because from seeing of a of longer

So, seeing supply we message larger now course, have very of the income we of a that inventory. opportunity more the consistent rentals and and utilization starting are with for other of with to share to longer high for them are owners their and more that

Serge De Bock

add to rental I an also and days you terms our QX that’s guidance pre-positive can in essentially, of can in increase up we it Just end we that, had actually rental revenue pricing upswing days factors. the the mix what beyond of a is where in expect and coming and see the

Mark Argento

you are that vehicles does Do you on the assume day think vehicles? you about in more when how rental factor increase actual anticipate in are the platform do or

Joseph Furnari

underwriting those on more of appropriately retention essential. keep various and cars risk objectives vehicles to focus higher those Yeah, drivers vehicles we drivers as

right the in are of I the all direction. So, above trending think

Mark Argento

Great. the back Thanks, I’ll queue. guys. hop in

Joseph Furnari

Thanks, Mark. you. Thank

Operator

ahead. me. from Mark, you Street. [Operator go Argento, Instructions] question Lake may And Excuse next Mark our comes

Mark Argento

I I come guys. Sorry was to expecting wasn’t about quick. mute. that so on back

line where the to vehicle availability, the Just referred process? in on you question update Thanks. in there one are that Any guys prepared more remarks. you your warehousing on

Joseph Furnari

agreed last business of in the attribute be we there. and to are mean, get deal we Yeah, hurdles few the through we principle essentially jumping close. to the really the business I majority able – the to to are

at estimate best this point. in Our weeks

Mark Argento

you. Thank Great.

Operator

answer I Furnari [Operator Joe question turn would closing the Instructions] for This and concludes any back our remarks. like to conference session. to over

Joseph Furnari

looking thank exciting you Well, everyone forward we XXXX. joining an for are and to

making. on Have So you the we a we progress great week. will are update periodically

HC Liquidating (HYREQ) 16 May 222022 Q1 Earnings call transcript